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Federal Register/Vol. 84, No. 162/Wednesday, August 21, 2019 Federal Register / Vol. 84, No. 162 / Wednesday, August 21, 2019 / Rules and Regulations 43493 Dated: August 15, 2019. 660–0144 or (408) 998–8806 or email Huawei, the ERC determined that there Nazak Nikakhtar, your inquiry to: [email protected]. is reasonable cause to believe that Assistant Secretary of Industry and Analysis, SUPPLEMENTARY INFORMATION: Huawei has been involved in activities International Trade Administration, determined to be contrary to the Performing the Non-Exclusive Duties of the Background national security or foreign policy Under Secretary of Industry and Security. The Entity List (Supplement No. 4 to interests of the United States. In [FR Doc. 2019–17920 Filed 8–19–19; 8:45 am] part 744 of the Export Administration addition, as stated in the May 21 rule, BILLING CODE 3510–33–P Regulations (EAR)) identifies entities for the ERC determined that there was which there is reasonable cause to reasonable cause to believe that the believe, based on specific and affiliates pose a significant risk of DEPARTMENT OF COMMERCE articulable facts, that have been becoming involved in activities contrary involved, are involved, or pose a to the national security or foreign policy Bureau of Industry and Security significant risk of being or becoming interests of the United States due to involved in activities contrary to the their relationship with Huawei. To 15 CFR Part 744 national security or foreign policy illustrate, as set forth in the Superseding interests of the United States. The EAR Indictment filed in the Eastern District [Docket No. 190814–0013] (15 CFR parts 730–774) impose of New York (see the rule published on RIN 0694–AH86 additional license requirements on, and May 21, 2019), Huawei participated limit the availability of all or most along with certain affiliates, including Addition of Certain Entities to the license exceptions for, exports, one or more non-U.S. affiliates, in Entity List and Revision of Entries on reexports, and transfers (in-country) to alleged criminal violations of U.S. law. the Entity List listed entities. The license review policy The Superseding Indictment also alleges for each listed entity is identified in the that Huawei and affiliates acting on AGENCY: Bureau of Industry and ‘‘License review policy’’ column on the Huawei’s behalf engaged in a series of Security, Commerce. Entity List, and the impact on the deceptive and obstructive acts designed ACTION: Final rule. availability of license exceptions is to evade U.S. law and to avoid detection described in the relevant Federal by U.S. law enforcement. See rule SUMMARY: Huawei Technologies Co., Registernotice adding entities to the published on May 21, 2019 for Ltd. (Huawei) and sixty-eight of its non- Entity List. BIS places entities on the additional information on this U.S. affiliates were added to the Entity Entity List pursuant to part 744 (Control determination and the resulting List effective May 16, 2019. Their Policy: End-User and End-Use Based) additions to the Entity List. addition to the Entity List imposed a and part 746 (Embargoes and Other This rule implements the decision of licensing requirement under the Export Special Controls) of the EAR. the ERC to add forty-six additional Administration Regulations (EAR) The End-User Review Committee entities to the Entity List, with twenty- regarding the export, reexport, or (ERC), composed of representatives of seven of the forty-six added under new, transfer (in-country) of any item subject the Departments of Commerce (Chair), separate entries, and the other nineteen to the EAR to any of these sixty-nine State, Defense, Energy and, where added under the existing entry for listed Huawei entities. The Bureau of appropriate, the Treasury, makes all Huawei. The additions and Industry and Security (BIS) is now decisions regarding additions to, modifications impact affiliates of adding forty-six additional non-U.S. removals from, or other modifications to Huawei in twenty-five different affiliates of Huawei to the Entity List the Entity List. The ERC makes all destinations: Argentina, Australia, because they also pose a significant risk decisions to add an entry to the Entity Bahrain, Belarus, Belgium, Brazil, of involvement in activities contrary to List by majority vote and all decisions People’s Republic of China (China), the national security or foreign policy to remove or modify an entry by Costa Rica, Cuba, Denmark, France, interests of the United States. Nineteen unanimous vote. India, Indonesia, Italy, Kazakhstan, of these forty-six affiliated entities are Mexico, New Zealand, Panama, being added to the existing entry for ERC Entity List Decisions Portugal, Romania, Russia, South Africa, Sweden, Thailand, and the United Huawei; the other twenty-seven entities Additions to the Entity List are being added under new, separate Kingdom. entries. This rule also modifies the Under § 744.11(b) (Criteria for Pursuant to § 744.11(b), the ERC existing entries for Huawei and three revising the Entity List) of the EAR, an determined to add these forty-six non- Huawei affiliates in China by moving entity for which there is reasonable U.S. affiliates of Huawei to the Entity the three affiliates under the entry for cause to believe, based on specific and List because they present a significant Huawei instead of continuing to list articulable facts, that the entity has been risk of acting on Huawei’s behalf to them under separate entries, and by involved, is involved, or poses a engage in activities determined to be adding one alias and four addresses to significant risk of being or becoming contrary to the national security or the Huawei entry, including the involved in activities that are contrary foreign policy interests of the United addresses for those three affiliates. The to the national security or foreign policy States. Without the imposition of a entries for five other existing entries for interests of the United States, and those license requirement to these affiliated Huawei affiliates in China, Belgium, and acting on behalf of such entities, may be entities, there is reasonable cause to Brazil are also being modified by this added to the Entity List. Paragraphs believe that Huawei would seek to use rule. (b)(1) through (b)(5) of § 744.11 provide them to evade the restrictions imposed an illustrative list of activities that could by its addition to the Entity List. DATES: This rule is effective August 19, be contrary to the national security or These additional forty-six non-U.S. 2019. foreign policy interests of the United affiliates of Huawei raise sufficient FOR FURTHER INFORMATION CONTACT: States. concern that prior review of exports, Director, Office of Exporter Services, As stated in the rule published on reexports, or transfers (in-country) of Bureau of Industry and Security, May 21, 2019 (84 FR 22961), and items subject to the EAR involving these Department of Commerce, Phone: (949) effective May 16, 2019, that added entities, and the possible imposition of VerDate Sep<11>2014 17:40 Aug 20, 2019 Jkt 247001 PO 00000 Frm 00019 Fmt 4700 Sfmt 4700 E:\FR\FM\21AUR1.SGM 21AUR1 jspears on DSK3GMQ082PROD with RULES 43494 Federal Register / Vol. 84, No. 162 / Wednesday, August 21, 2019 / Rules and Regulations license conditions or license denials on India Shenzhen Huawei Technologies, and shipments to these entities will enhance • Huawei Technologies India Private nineteen new entities (identified below) BIS’s ability to prevent activities Limited, including one alias (Huawei to that entry, and by moving under that contrary to the national security or Technologies India Pvt., Ltd.). entry three non-U.S. affiliates of Huawei foreign policy interests of the United that were added as separate entities States. Indonesia under China in the rule published on As with the Huawei entities added to • Huawei Tech Investment, PT. May 21, 2019: Huawei Digital the Entity List effective May 16, 2019, Technologies (Suzhou) Co., Ltd.; BIS imposes for each of the entities Italy Shanghai Huawei Technologies Co., added in this final rule a license • Huawei Italia; and Ltd.; and Zhejiang Huawei requirement for all items subject to the • Huawei Milan Research Institute. Communications Technology Co., Ltd. This final rule modifies the existing EAR, unless the transaction is Kazakhstan authorized by the Savings Clause in this entries for these three entities by • final rule, and a license review policy of Huawei Technologies LLC removing them as separate entries, and a presumption of denial. Similarly, no Kazakhstan. adding them as affiliates under the license exceptions are available for Mexico Huawei entry. This final rule also updates the addresses of these three exports, reexports, or transfers (in- • country) to the persons being added to Huawei Technologies De Mexico entities as part of their consolidation the Entity List in this rule, except as S.A. under the Huawei entry. The nineteen allowed in the Savings Clause in this New Zealand additional affiliates being included final rule. under the Huawei entry are as follows: • Huawei Technologies (New • Beijing Huawei Longshine The acronym ‘‘a.k.a.’’ (also known as) Zealand) Company Limited. is used in entries on the Entity List to Information Technology Co., Ltd.; identify aliases, thereby assisting Panama • Hangzhou New Longshine exporters, reexporters, and transferors in • Huawei Technologies Cr Panama Information Technology Co., Ltd.; identifying entities on the Entity List. S.A. • Hangzhou Huawei Communication This final rule adds the following Technology Co., Ltd.; twenty-seven entities in new entries to Portugal • Hangzhou Huawei Enterprises; the Entity List: • Huawei Technology Portugal. • Huawei Marine Networks Co., Ltd.; • Argentina Romania Huawei Mobile Technology Ltd.; • Huawei Tech. Investment Co.; • • Huawei Tech Investment Co., Ltd. Huawei Technologies Romania Co., • Huawei Technology Co., Ltd. Argentina. Ltd. Chengdu Research Institute; Australia Russia • Huawei Technology Co., Ltd. • • Huawei Russia.
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