BIS Places Destabilizing Military Modernization Administration
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Federal Register / Vol. 86, No. 67 / Friday, April 9, 2021 / Rules and Regulations 18437 (i) Burma. Office of Chief of Military Background described below under the standard set Security Affairs (OCMSA) and the forth in § 744.11(b) of the EAR. The Entity List (supplement no. 4 to Directorate of Signal. The ERC determined that the seven part 744 of the Export Administration (ii) Cuba. Directorate of Military subject entities are engaging in or Regulations (EAR)) identifies entities for Intelligence (DIM) and Directorate of enabling activities contrary to U.S. which there is reasonable cause to Military Counterintelligence (CIM). national security and foreign policy believe, based on specific and (iii) China, People’s Republic of. interests, as follows: articulable facts, that the entities have Intelligence Bureau of the Joint Staff The ‘‘National Supercomputing been involved, are involved, or pose a Department. Center Jinan,’’ ‘‘National significant risk of being or becoming (iv) Iran. Islamic Revolutionary Guard Supercomputing Center Shenzhen,’’ involved in activities contrary to the ‘‘National Supercomputing Center Corps Intelligence Organization (IRGC– national security or foreign policy IO) and Artesh Directorate for Wuxi,’’ ‘‘National Supercomputer interests of the United States. The EAR Center Zhengzhou,’’ ‘‘Shanghai High- Intelligence (J2). (15 CFR parts 730–774) impose (v) Korea, North. Reconnaissance Performance Integrated Circuit Design additional license requirements on, and Center,’’ ‘‘Sunway Microelectronics,’’ General Bureau (RGB). limit the availability of most license (vi) Russia. Main Intelligence and ‘‘Tianjin Phytium Information exceptions for, exports, reexports, and Technology’’ are being added to the Directorate (GRU). transfers (in-country) to listed entities. (vii) Syria. Military Intelligence Entity List on the basis of their The license review policy for each listed procurement of U.S.-origin items for Service. entity is identified in the ‘‘License (viii) Venezuela. General Directorate activities contrary to the national review policy’’ column on the Entity security and foreign policy interests of of Military Counterintelligence List, and the impact on the availability (DGCIM). the United States. Specifically, these of license exceptions is described in the entities are involved in activities that Matthew S. Borman, relevant Federal Register notice adding support China’s military actors, its Deputy Assistant Secretary for Export entities to the Entity List. BIS places destabilizing military modernization Administration. entities on the Entity List pursuant to efforts, and/or its weapons of mass [FR Doc. 2021–07357 Filed 4–7–21; 4:15 pm] part 744 (Control Policy: End-User and destruction (WMD) programs. BILLING CODE 3510–33–P End-Use Based) and part 746 Pursuant to § 744.11(b), the ERC (Embargoes and Other Special Controls) determined that the conduct of the of the EAR. above-described seven entities raises DEPARTMENT OF COMMERCE The End-User Review Committee sufficient concerns that prior review, via (ERC), composed of representatives of the imposition of a license requirement, Bureau of Industry and Security the Departments of Commerce (Chair), of exports, reexports, or transfers (in- State, Defense, Energy and, where country) of all items subject to the EAR 15 CFR Part 744 appropriate, the Treasury, makes all involving these seven entities and the decisions regarding additions to, possible issuance of license denials or [Docket No. 210406–0076] removals from, or other modifications to the possible imposition of license the Entity List. The ERC makes all conditions on shipments to these RIN 0694–AI47 decisions to add an entry to the Entity entities, will enhance BIS’s ability to List by majority vote and all decisions prevent violations of the EAR or Addition of Entities to the Entity List to remove or modify an entry by otherwise protect U.S. national security unanimous vote. or foreign policy interests. As further AGENCY: Bureau of Industry and provided below, BIS has provided a ERC Entity List Decisions Security, Commerce. limited exclusion to this rule in the ACTION: Final rule. Additions to the Entity List savings clause. For the seven entities added to the Under § 744.11(b) (Criteria for SUMMARY: In this rule, the Bureau of Entity List in this final rule, BIS revising the Entity List) of the EAR, Industry and Security (BIS) amends the imposes a license requirement that entities for which there is reasonable Export Administration Regulations applies to all items subject to the EAR. cause to believe, based on specific and (EAR) by adding seven entities to the In addition, no license exceptions are articulable facts, that the entities have Entity List. These seven entities have available for exports, reexports, or been involved, are involved, or pose a been determined by the U.S. transfers (in-country) to the person significant risk of being or becoming Government to be acting contrary to the being added to the Entity List in this involved in activities that are contrary national security or foreign policy rule. For the seven entities added to the to the national security or foreign policy interests of the United States. These Entity List by this rule, BIS imposes a interests of the United States, and those seven entities will be listed on the license review policy of a presumption acting on behalf of such entities, may be Entity List under the destination of the of denial. People’s Republic of China (China). added to the Entity List. Paragraphs The acronym ‘‘a.k.a.’’ (also known as) (b)(1) through (5) of § 744.11 provide an DATES: This rule is effective April 8, is used in entries on the Entity List to illustrative list of activities that could be 2021. identify aliases, thereby assisting considered contrary to the national exporters, reexporters, and transferors in FOR FURTHER INFORMATION CONTACT: security or foreign policy interests of the identifying entities on the Entity List. Chair, End-User Review Committee, United States. For the reasons described above, this Office of the Assistant Secretary, Export This rule implements the decision of final rule adds the following seven Administration, Bureau of Industry and the ERC to add seven entities to the entities to the Entity List: Security, Department of Commerce, Entity List. These seven entities will be Phone: (202) 482–5991, Fax: (202) 482– listed on the Entity List under the China 3911, Email: [email protected]. destination of China. The ERC made the • National Supercomputing Center SUPPLEMENTARY INFORMATION: decision to add these seven entities Jinan; VerDate Sep<11>2014 22:03 Apr 08, 2021 Jkt 253001 PO 00000 Frm 00015 Fmt 4700 Sfmt 4700 E:\FR\FM\09APR1.SGM 09APR1 18438 Federal Register / Vol. 86, No. 67 / Friday, April 9, 2021 / Rules and Regulations • National Supercomputing Center effects, distributive impacts, and Flexibility Act, 5 U.S.C. 601, et seq., are Shenzhen; equity). Executive Order 13563 not applicable. Accordingly, no • National Supercomputing Center emphasizes the importance of regulatory flexibility analysis is Wuxi; quantifying both costs and benefits, of required, and none has been prepared. • National Supercomputer Center reducing costs, of harmonizing rules, List of Subjects in 15 CFR Part 744 Zhengzhou; and of promoting flexibility. This rule • Shanghai High-Performance has been determined to be not Exports, Reporting and recordkeeping Integrated Circuit Design Center; significant for purposes of Executive requirements, Terrorism. • Sunway Microelectronics; and Order 12866. • Tianjin Phytium Information 2. Notwithstanding any other Accordingly, part 744 of the Export Technology. provision of law, no person is required Administration Regulations (15 CFR to respond to or be subject to a penalty parts 730–774) is amended as follows: Savings Clause for failure to comply with a collection PART 744—[AMENDED] Shipments of items removed from of information, subject to the eligibility for a License Exception or requirements of the Paperwork ■ 1. The authority citation for 15 CFR export, reexport, or transfer (in-country) Reduction Act of 1995 (44 U.S.C. 3501 part 744 is revised to read as follows: without a license (NLR) as a result of et seq.) (PRA), unless that collection of this regulatory action that were en route information displays a currently valid Authority: 50 U.S.C. 4801–4852; 50 U.S.C. aboard a carrier to a port of export, Office of Management and Budget 4601 et seq.; 50 U.S.C. 1701 et seq.; 22 U.S.C. reexport, or transfer (in-country), on (OMB) Control Number. This regulation 3201 et seq.; 42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O. 12058, 43 FR April 8, 2021, pursuant to actual orders involves collections previously 20947, 3 CFR, 1978 Comp., p. 179; E.O. for export, reexport, or transfer (in- approved by OMB under control 12851, 58 FR 33181, 3 CFR, 1993 Comp., p. country) to or within a foreign number 0694–0088, Simplified Network 608; E.O. 12938, 59 FR 59099, 3 CFR, 1994 destination, may proceed to that Application Processing System, which Comp., p. 950; E.O. 13026, 61 FR 58767, 3 destination under the previous includes, among other things, license CFR, 1996 Comp., p. 228; E.O. 13099, 63 FR eligibility for a License Exception or applications, and carries a burden 45167, 3 CFR, 1998 Comp., p. 208; E.O. export, reexport, or transfer (in-country) estimate of 42.5 minutes for a manual or 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. without a license (NLR). electronic submission. Total burden 783; E.O. 13224, 66 FR 49079, 3 CFR, 2001 hours associated with the PRA and Comp., p. 786; Notice of September 18, 2020, Export Control Reform Act of 2018 85 FR 59641 (September 22, 2020); Notice of OMB control number 0694–0088 are not November 12, 2020, 85 FR 72897 (November On August 13, 2018, the President expected to increase as a result of this 13, 2020).