Billing Code 3510-33-P Department of Commerce
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This document is scheduled to be published in the Federal Register on 07/12/2021 and available online at BILLING CODE 3510-33-P federalregister.gov/d/2021-14656, and on govinfo.gov DEPARTMENT OF COMMERCE Bureau of Industry and Security 15 CFR Part 744 [Docket No. 210702-0143] RIN 0694-AI57 Addition of Certain Entities to the Entity List; Revision of Existing Entry on the Entity List; Removal of Entity from the Unverified List; and Addition of Entity to the Military End-User (MEU) List AGENCY: Bureau of Industry and Security, Commerce. ACTION: Final rule. SUMMARY: This final rule amends the Export Administration Regulations (EAR) by adding thirty-four entities under forty-three entries to the Entity List. These thirty-four entities have been determined by the U.S. Government to be acting contrary to the foreign policy interests of the United States and will be listed on the Entity List under the destinations of Canada; People’s Republic of China (China); Iran; Lebanon; Netherlands (The Netherlands); Pakistan; Russia; Singapore; South Korea; Taiwan; Turkey; the United Arab Emirates (UAE); and the United Kingdom. This final rule also revises one entry on the Entity List under the destination of China. This final rule also removes one entry from the Entity List under the destination of Germany. This final rule removes one entity from the Unverified List, as a conforming change to this same entity being added to the Entity List. In addition, this final rule amends the EAR by adding one entity to the Military End-User (MEU) List under the destination of Russia. DATES: This rule is effective [INSERT DATE OF PUBLICATION IN THE FEDERAL REGISTER]. FOR FURTHER INFORMATION CONTACT: Chair, End-User Review Committee, Office of the Assistant Secretary for Export Administration, Bureau of Industry and Security, Department of Commerce, Phone: (202) 482-5991, Email: [email protected]. SUPPLEMENTARY INFORMATION: Background The Entity List (supplement no. 4 to part 744 of the EAR) identifies entities for which there is reasonable cause to believe, based on specific and articulable facts, that the entities have been involved, are involved, or pose a significant risk of being or becoming involved in activities contrary to the national security or foreign policy interests of the United States. The EAR (15 CFR parts 730-774) impose additional license requirements on, and limit the availability of most license exceptions for, exports, reexports, and transfers (in-country) to listed entities. The license review policy for each listed entity is identified in the “License Review Policy” column on the Entity List, and the impact on the availability of license exceptions is described in the relevant Federal Register document adding entities to the Entity List. BIS places entities on the Entity List pursuant to part 744 (Control Policy: End-User and End-Use Based) and part 746 (Embargoes and Other Special Controls) of the EAR. The ‘Military End-User’ (MEU) List (supplement no. 7 to part 744 of the EAR) identifies entities that have been determined by the End-User Review Committee (ERC) to be ‘military end users’ pursuant to § 744.21 of the EAR. That section imposes additional license requirements on, and limits the availability of, most license exceptions for, exports, reexports, and transfers (in-country) to listed entities on the MEU List, as specified in supplement no. 7 to part 744 and § 744.21 of the EAR. Entities may be listed on the MEU List under the destinations of Burma, China, Russia, or Venezuela. The license review policy for each listed entity is identified in the introductory text of supplement no. 7 to part 744 and in § 744.21(b) and (e). The MEU List includes introductory text, which specifies the scope of the license requirements, limitations on the use of EAR license exceptions, and the license review policy that applies to the entities. These requirements are also reflected in § 744.21, but for ease of reference, these are also included in the introductory text of the supplement. The Unverified List, found in supplement no. 6 to part 744 of the EAR, contains the names and addresses of foreign persons who are or have been parties to a transaction, as such parties are described in § 748.5 of the EAR, involving the export, reexport, or transfer (in- country) of items subject to the EAR, and whose bona fides BIS has been unable to verify through an end-use check. BIS may add persons to the Unverified List when BIS or federal officials acting on BIS’s behalf have been unable to verify a foreign person’s bona fides because an end-use check, such as a pre-license check or a post-shipment verification, cannot be completed satisfactorily for reasons outside the U.S. Government’s control. The ERC, composed of representatives of the Departments of Commerce (Chair), State, Defense, Energy and, where appropriate, the Treasury, makes all decisions regarding additions to, removals from, or other modifications to the Entity List and MEU List. The ERC makes all decisions to add an entry to the Entity List and MEU List by majority vote and makes all decisions to remove or modify an entry by unanimous vote. In addition, when an entity listed on the Unverified List is being added to the Entity List based on a majority vote of the ERC, the ERC’s determination to add that entity to the Entity List constitutes interagency approval for a conforming change to remove the same entity from the Unverified List in supplement no. 6 to part 744 of the EAR. ERC Entity List Decisions Additions to the Entity List This rule implements the decision of the ERC to add thirty-four entities under forty-three entries to the Entity List. The thirty-four entities are added based on § 744.11 (License requirements that apply to entities acting contrary to the national security or foreign policy interests of the United States) of the EAR. The thirty-four entities are located in Canada; China; Iran; Lebanon; the Netherlands; Pakistan; Russia; Singapore; South Korea; Taiwan; Turkey; the UAE; and the United Kingdom. Of the forty-three entries, two are located in Canada, twenty- three are located in China, two are located in Iran, two are located in Lebanon, one is located in the Netherlands, one is located in Pakistan, six are located in Russia, one is located in Singapore, one is located in South Korea, one is located in Taiwan, one is located in Turkey, one is located in the UAE, and one is located in the United Kingdom. Five entities are listed under multiple destinations, accounting for the difference between the number of entities and number of entries in this final rule. The ERC determined to add Karim Daadaa; Modern Agropharmaceuticals & Trade Establishment; Payam Nabavi; and Sina Biomedical Chemistry Company to the Entity List for engaging in conduct contrary to the national security and foreign policy interests of the United States. Specifically, the ERC determined that there is reasonable cause to believe, based on specific and articulable facts, that these entities facilitated the export of U.S. items to Iran in violation of the EAR. The ERC determined to add China Academy of Electronics and Information Technology; Xinjiang Lianhai Chuangzhi Information Technology Co., Ltd.; Leon Technology Co., Ltd.; Xinjiang Tangli Technology Co., Ltd.; Shenzhen Cobber Information Technology Co., Ltd.; Xinjiang Sailing Information Technology Co., Ltd.; Beijing Geling Shentong Information Technology Co., Ltd.; Tongfang R.I.A. Co., Ltd.; Shenzhen Hua'antai Intelligent Technology Co., Ltd.; Chengdu Xiwu Security System Alliance Co., Ltd.; Beijing Sinonet Science & Technology Co., Ltd.; Urumqi Tianyao Weiye Information Technology Service Co., Ltd.; Suzhou Keda Technology Co., Ltd.; and Xinjiang Beidou Tongchuang Information Technology Co., Ltd. to the Entity List for enabling activities contrary to the foreign policy interests of the United States. Specifically, these entities have been implicated in human rights violations and abuses in the implementation of China’s campaign of repression, mass detention, and high- technology surveillance against Uyghurs, Kazakhs, and other members of Muslim minority groups in the Xinjiang Uyghur Autonomous Region (XUAR). The ERC determined to add Hangzhou Hualan Microelectronics Co., Ltd. and Kyland Technology Co., Ltd.; along with Kyland subsidiaries Armyfly and Kindroid, for activities contrary to the national security and foreign policy of the United States. Specifically, the ERC determined that these entities are acquiring and are attempting to acquire U.S.-origin items in support of military modernization for the People’s Liberation Army. The ERC determined to add Wuhan Raycus Fiber Laser Technologies Co., Ltd. to the Entity List for engaging in conduct that poses a risk of violating the EAR. Specifically, the ERC determined this entity has potentially been involved in the procurement of U.S.-origin items for unauthorized military end-use. The ERC determined to add Beijing Hileed Solutions Co., Ltd.; Beijing E-Science Co., Ltd.; Info Rank Technologies; and Wingel Zhang to the Entity List for exporting and attempting to export items subject to the EAR to an entity on the U.S. Department of the Treasury’s Office of Foreign Asset Control Specially-Designated Nationals List without the necessary licenses. The ERC determined to add OOO Teson; the Radiant Group of Companies; OOO Trade- Component; and the three associated individuals, Andrey Leonidovich Kuznetsov, Margarita Vasilyevna Kuznetsova, and Dmitry Alexandrovich Kravchenko, on the basis of their attempts to procure items, including U.S.-origin items, for activities contrary to the national security and foreign policy interests of the United States. Specifically, OOO Teson, the Radiant Group of Companies, and OOO Trade-Component are involved in the procurement of U.S.-origin electronic components likely in furtherance of Russian military programs.