36496 Federal Register / Vol
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36496 Federal Register / Vol. 86, No. 130 / Monday, July 12, 2021 / Rules and Regulations compensation is provided solely for the under forty-three entries to the Entity Committee (ERC) to be ‘military end flight training and not the use of the List. These thirty-four entities have been users’ pursuant to § 744.21 of the EAR. aircraft. determined by the U.S. Government to That section imposes additional license The FAA notes that any operator of a be acting contrary to the foreign policy requirements on, and limits the limited category aircraft that holds an interests of the United States and will be availability of, most license exceptions exemption to conduct Living History of listed on the Entity List under the for, exports, reexports, and transfers (in- Flight (LHFE) operations already holds destinations of Canada; People’s country) to listed entities on the MEU the necessary exemption relief to Republic of China (China); Iran; List, as specified in supplement no. 7 to conduct flight training for its flightcrew Lebanon; Netherlands (The part 744 and § 744.21 of the EAR. members. LHFE exemptions grant relief Netherlands); Pakistan; Russia; Entities may be listed on the MEU List Singapore; South Korea; Taiwan; to the extent necessary to allow the under the destinations of Burma, China, exemption holder to operate certain Turkey; the United Arab Emirates Russia, or Venezuela. The license aircraft for the purpose of carrying (UAE); and the United Kingdom. This review policy for each listed entity is persons for compensation or hire for final rule also revises one entry on the identified in the introductory text of living history flight experiences. As a Entity List under the destination of condition of these exemptions, the China. This final rule also removes one supplement no. 7 to part 744 and in operators must provide regular flight entry from the Entity List under the § 744.21(b) and (e). The MEU List training and checking to flightcrew destination of Germany. This final rule includes introductory text, which members. As such, these flight training removes one entity from the Unverified specifies the scope of the license operations are considered necessary for List, as a conforming change to this requirements, limitations on the use of the operator to conduct the LHFE flights same entity being added to the Entity EAR license exceptions, and the license themselves.9 The FAA will clarify this List. In addition, this final rule amends review policy that applies to the relief when operators apply for renewal the EAR by adding one entity to the entities. These requirements are also of their LHFE exemptions. Military End-User (MEU) List under the reflected in § 744.21, but for ease of For the safety reasons set forth in this destination of Russia. reference, these are also included in the notification, the FAA is considering a DATES: This rule is effective July 12, introductory text of the supplement. rulemaking that would enable the flight 2021. The Unverified List, found in training activity discussed in this FOR FURTHER INFORMATION CONTACT: supplement no. 6 to part 744 of the notification without the need to obtain Chair, End-User Review Committee, EAR, contains the names and addresses an exemption or LODA from the FAA. Office of the Assistant Secretary for of foreign persons who are or have been Issued in Washington, DC. Export Administration, Bureau of parties to a transaction, as such parties Ricardo Domingo, Industry and Security, Department of are described in § 748.5 of the EAR, Executive Director, Flight Standards Service, Commerce, Phone: (202) 482–5991, involving the export, reexport, or AFX–1. Email: [email protected]. transfer (in-country) of items subject to [FR Doc. 2021–14765 Filed 7–8–21; 8:45 am] SUPPLEMENTARY INFORMATION: the EAR, and whose bona fides BIS has BILLING CODE 4910–13–P Background been unable to verify through an end- use check. BIS may add persons to the The Entity List (supplement no. 4 to Unverified List when BIS or federal part 744 of the EAR) identifies entities DEPARTMENT OF COMMERCE officials acting on BIS’s behalf have for which there is reasonable cause to been unable to verify a foreign person’s Bureau of Industry and Security believe, based on specific and articulable facts, that the entities have bona fides because an end-use check, such as a pre-license check or a post- 15 CFR Part 744 been involved, are involved, or pose a significant risk of being or becoming shipment verification, cannot be [Docket No. 210702–0143] involved in activities contrary to the completed satisfactorily for reasons RIN 0694–AI57 national security or foreign policy outside the U.S. Government’s control. interests of the United States. The EAR The ERC, composed of representatives Addition of Certain Entities to the (15 CFR parts 730–774) impose of the Departments of Commerce Entity List; Revision of Existing Entry additional license requirements on, and (Chair), State, Defense, Energy and, on the Entity List; Removal of Entity limit the availability of most license where appropriate, the Treasury, makes From the Unverified List; and Addition exceptions for, exports, reexports, and all decisions regarding additions to, of Entity to the Military End-User (MEU) transfers (in-country) to listed entities. removals from, or other modifications to List The license review policy for each listed the Entity List and MEU List. The ERC entity is identified in the ‘‘License AGENCY: Bureau of Industry and makes all decisions to add an entry to Review Policy’’ column on the Entity Security, Commerce. the Entity List and MEU List by majority List, and the impact on the availability vote and makes all decisions to remove ACTION: Final rule. of license exceptions is described in the or modify an entry by unanimous vote. relevant Federal Register document SUMMARY: This final rule amends the In addition, when an entity listed on the adding entities to the Entity List. BIS Export Administration Regulations Unverified List is being added to the (EAR) by adding thirty-four entities places entities on the Entity List pursuant to part 744 (Control Policy: Entity List based on a majority vote of End-User and End-Use Based) and part the ERC, the ERC’s determination to add 9 The FAA cautions, however, that LHFE that entity to the Entity List constitutes exemptions do not permit operators to allow 746 (Embargoes and Other Special passengers on LHFE flights to manipulate the Controls) of the EAR. interagency approval for a conforming controls of the aircraft under the guise of flight The ‘Military End-User’ (MEU) List change to remove the same entity from training. The flight training relief extends only to the Unverified List in supplement no. 6 the LHFE operator’s own flightcrew members for (supplement no. 7 to part 744 of the the purpose of training those individuals to conduct EAR) identifies entities that have been to part 744 of the EAR. LHFE flights. determined by the End-User Review VerDate Sep<11>2014 16:15 Jul 09, 2021 Jkt 253001 PO 00000 Frm 00014 Fmt 4700 Sfmt 4700 E:\FR\FM\12JYR1.SGM 12JYR1 khammond on DSKJM1Z7X2PROD with RULES Federal Register / Vol. 86, No. 130 / Monday, July 12, 2021 / Rules and Regulations 36497 ERC Entity List Decisions violations and abuses in the the EAR. For thirteen of the thirty-four implementation of China’s campaign of entities, which constitute thirteen of the Additions to the Entity List repression, mass detention, and high- fourteen XUAR-related entities, added This rule implements the decision of technology surveillance against to the Entity List by this rule, China the ERC to add thirty-four entities under Uyghurs, Kazakhs, and other members Academy of Electronics and Information forty-three entries to the Entity List. The of Muslim minority groups in the Technology; Xinjiang Lianhai thirty-four entities are added based on Xinjiang Uyghur Autonomous Region Chuangzhi Information Technology Co. § 744.11 (License requirements that (XUAR). Ltd.; Leon Technology Co. Ltd.; Xinjiang apply to entities acting contrary to the The ERC determined to add Hangzhou Tangli Technology Co. Ltd.; Shenzhen national security or foreign policy Hualan Microelectronics Co., Ltd. and Cobber Information Technology Co. interests of the United States) of the Kyland Technology Co., Ltd.; along with Ltd.; Xinjiang Sailing Information EAR. The thirty-four entities are located Kyland subsidiaries Armyfly and Technology Co. Ltd.; Beijing Geling in Canada; China; Iran; Lebanon; the Kindroid, for activities contrary to the Shentong Information Technology Co. Netherlands; Pakistan; Russia; national security and foreign policy of Ltd.; Tongfang R.I.A. Co. Ltd.; Shenzhen Singapore; South Korea; Taiwan; the United States. Specifically, the ERC Hua’antai Intelligent Technology Co. Turkey; the UAE; and the United determined that these entities are Ltd.; Chengdu Xiwu Security System Kingdom. Of the forty-three entries, two acquiring and are attempting to acquire Alliance Co. Ltd.; Beijing Sinonet are located in Canada, twenty-three are U.S.-origin items in support of military Science & Technology Co. Ltd.; Urumqi located in China, two are located in modernization for the People’s Tianyao Weiye Information Technology Iran, two are located in Lebanon, one is Liberation Army. Service Co. Ltd.; and Xinjiang Beidou located in the Netherlands, one is The ERC determined to add Wuhan Tongchuang Information Technology located in Pakistan, six are located in Raycus Fiber Laser Technologies Co., Co. Ltd., BIS imposes a license review Russia, one is located in Singapore, one Ltd. to the Entity List for engaging in policy of case-by-case review for Export is located in South Korea, one is located conduct that poses a risk of violating the Control Classification Numbers (ECCNs) in Taiwan, one is located in Turkey, one EAR.