Rule2021-14367
Addition of Certain Entities to the Entity List; Correction of Existing Entry on the Entity List
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
July 6, 2021
Effective
July 6, 2021
Issuing agencies
Commerce DepartmentIndustry and Security Bureau
Abstract
This final rule amends the Export Administration Regulations (EAR) by adding four entities to the Entity List. These four entities have been determined by the U.S. Government to be acting contrary to the foreign policy and national security interests of the United States and will be listed on the Entity List under the destination of Burma. This rule also amends the EAR by correcting the address of one entity, listed under Burma, on the Entity List.
Full Text
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<title>Federal Register, Volume 86 Issue 126 (Tuesday, July 6, 2021)</title>
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[Federal Register Volume 86, Number 126 (Tuesday, July 6, 2021)]
[Rules and Regulations]
[Pages 35389-35391]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-14367]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Part 744
[Docket No. 210629-0139]
RIN 0694-AI52
Addition of Certain Entities to the Entity List; Correction of
Existing Entry on the Entity List
AGENCY: Bureau of Industry and Security, Commerce.
ACTION: Final rule.
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SUMMARY: This final rule amends the Export Administration Regulations
(EAR) by adding four entities to the Entity List. These four entities
have been determined by the U.S. Government to be acting contrary to
the foreign policy and national security interests of the United States
and will be listed on the Entity List under the destination of Burma.
This rule also amends the EAR by correcting the address of one entity,
listed under Burma, on the Entity List.
DATES: This rule is effective July 6, 2021.
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: <a href="/cdn-cgi/l/email-protection#cc899e8f8caea5bfe2a8a3afe2aba3ba"><span class="__cf_email__" data-cfemail="e5a0b7a6a5878c96cb818a86cb828a93">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
Background
Entity List
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 End-User Review Committee (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. The ERC makes
all decisions to add an entry to the Entity List by majority vote and
makes all decisions to remove or modify an entry by unanimous vote.
Burma
This rule is part of an ongoing effort by the United States
Government to impose restrictions on Burmese entities that support the
Burmese military as part of a broader response to the February 1, 2021
coup by the military, which overthrew Burma's democratically-elected
government. On February 10, 2021, President Biden signed Executive
Order (E.O.) 14014, ``Blocking Property With Respect to the Situation
in Burma'' (E.O. 14104), in which he declared a national emergency to
address the threat posed to the United States by the situation in, and
in relation to, Burma following the coup. See 86 FR 9429 (Feb. 12,
2021).
Since February 2021, BIS has taken several actions under the EAR to
strengthen export controls on Burma. These include the publication of
``Burma: Implementation of Sanctions'' (86 FR 10011) on February 18,
2021; ``Burma: Implementation of Sanctions'' (86 FR 13173) on March 8,
2021; ``Addition of Entities to the Entity List'' (86 FR 13179) on
March 8, 2021; and ``Expansion of Certain End-Use and End-User Controls
and Controls on Specific Activities of U.S. Persons; Corrections; and
Burma Sanctions'' (86 FR 18433) on April 9, 2021.
ERC Entity List Decisions
Additions to the Entity List
This rule implements the decision of the ERC to add four entities
to the Entity
[[Page 35390]]
List. The four entities are added based on Sec. 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 four entities are located in Burma.
By making these Entity List additions, this final rule further
strengthens export controls on Burma and addresses the foreign policy
and national security concerns that formed the basis for the issuance
of E.O. 14104. This rule also supports the United States Government's
efforts to promote an immediate return to democracy in Burma.
Specifically, BIS is adding the following four entities to the Entity
List under the destination of Burma: Wanbao Mining, Ltd. and its two
subsidiaries, Myanmar Wanbao Mining Copper, Ltd. and Myanmar Yang Tse
Copper, Ltd.; and King Royal Technologies Co., Ltd. In particular, by
adding Wanbao Mining, Ltd., Myanmar Wanbao Mining Copper, Ltd., and
Myanmar Yang Tse Copper, Ltd. to the Entity List, this rule enhances
the U.S. Government's efforts to ensure that items subject to the EAR
are not available for copper mining operations by these three entities,
which have revenue-sharing agreements with Myanmar Economic Holdings
Limited (MEHL). MEHL provides revenue for Burma's Ministry of Defence,
an entity responsible for the February 1, 2021 military coup. On March
8, 2021, BIS added MEHL and the Ministry of Defence to the Entity List.
See 86 FR 13179 (March 8, 2021). Additionally, BIS is adding King Royal
Technologies Co., Ltd., a telecommunications company, to the Entity
List for providing satellite communication services in support of the
Burmese military.
Pursuant to Sec. 744.11(b) of the EAR, the ERC determined that the
conduct of the above-described four entities raises sufficient concerns
that prior review, via the imposition of a license requirement for
exports, reexports, or transfers (in-country) of all items subject to
the EAR involving these four entities and the possible issuance of
license denials or the possible imposition of license conditions on
shipments to these entities, will enhance BIS's ability to prevent
violations of the EAR or otherwise protect U.S. national security or
foreign policy interests.
For the four entities added to the Entity List in this final rule,
BIS imposes a license requirement that applies to all items subject to
the EAR. In addition, no license exceptions are available for exports,
reexports, or transfers (in-country) to the persons being added to the
Entity List in this rule. BIS imposes a license review policy of a
presumption of denial for these four entities. The acronym ``a.k.a.,''
which is an abbreviation of `also known as,' is used in entries on the
Entity List to identify aliases, thereby assisting exporters,
reexporters and transferors in identifying entities on the Entity List.
For the reasons described above, this final rule adds the following
four entities to the Entity List and includes, where appropriate,
aliases:
Burma
<bullet> King Royal Technologies Co., Ltd.;
<bullet> Myanmar Wanbao Mining Copper, Ltd.;
<bullet> Myanmar Yang Tse Copper, Ltd.; and
<bullet> Wanbao Mining, Ltd.
Correction to the Entity List
This final rule implements a correction to one existing entry on
the Entity List for an entity that was added to the Entity List under
the destination of Burma on March 8, 2021 (86 FR 13180, March 8, 2021).
Specifically, BIS is correcting the entry for Myanmar Economic
Corporation by changing the address to refer to ``Burma.''
Savings Clause
Shipments of items removed from eligibility for a License Exception
or export, reexport, or transfer (in-country) without a license (NLR)
as a result of this regulatory action that were en route aboard a
carrier to a port of export, reexport, or transfer (in-country), on
July 6, 2021, pursuant to actual orders for export, reexport, or
transfer (in-country) to or within a foreign destination, may proceed
to that destination under the previous eligibility for a License
Exception or export, reexport, or transfer (in-country) without a
license (NLR).
Export Control Reform Act of 2018
On August 13, 2018, the President signed into law the John S.
McCain National Defense Authorization Act for Fiscal Year 2019, which
included the Export Control Reform Act of 2018 (ECRA) (50 U.S.C. 4801-
4852). ECRA provides the legal basis for BIS's principal authorities
and serves as the authority under which BIS issues this rule.
Rulemaking Requirements
1. Executive Orders 13563 and 12866 direct agencies to assess all
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). Executive
Order 13563 emphasizes the importance of quantifying both costs and
benefits, of reducing costs, of harmonizing rules, and of promoting
flexibility. This rule has been determined to be not significant for
purposes of Executive Order 12866.
2. Notwithstanding any other provision of law, no person is
required to respond to or be subject to a penalty for failure to comply
with a collection of information, subject to the requirements of the
Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (PRA), unless
that collection of information displays a currently valid Office of
Management and Budget (OMB) Control Number. This regulation involves
collections previously approved by OMB under control number 0694-0088,
Simplified Network Application Processing System, which includes, among
other things, license applications and commodity classification, and
carries a burden estimate of 29.6 minutes for a manual or electronic
submission for a total burden estimate of 31,835 hours. Total burden
hours associated with the PRA and OMB control number 0694-0088 are not
expected to increase as a result of this rule.
3. This rule does not contain policies with Federalism implications
as that term is defined in Executive Order 13132.
4. Pursuant to section 1762 of the Export Control Reform Act of
2018, this action is exempt from the Administrative Procedure Act (5
U.S.C. 553) requirements for notice of proposed rulemaking, opportunity
for public participation, and delay in effective date.
5. Because a notice of proposed rulemaking and an opportunity for
public comment are not required to be given for this rule by 5 U.S.C.
553, or by any other law, the analytical requirements of the Regulatory
Flexibility Act, 5 U.S.C. 601, et seq., are not applicable.
Accordingly, no regulatory flexibility analysis is required and none
has been prepared.
List of Subjects in 15 CFR Part 744
Exports, Reporting and recordkeeping requirements, Terrorism.
Accordingly, part 744 of the Export Administration Regulations (15
CFR parts 730-774) is amended as follows:
[[Page 35391]]
PART 744--[AMENDED]
0
1. The authority citation for 15 CFR part 744 continues to read as
follows:
Authority: 50 U.S.C. 4801-4852; 50 U.S.C. 4601 et seq.; 50
U.S.C. 1701 et seq.; 22 U.S.C. 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 20947, 3 CFR,
1978 Comp., p. 179; E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p.
608; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 13026,
61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13099, 63 FR 45167, 3
CFR, 1998 Comp., p. 208; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp.,
p. 783; E.O. 13224, 66 FR 49079, 3 CFR, 2001 Comp., p. 786; Notice
of September 18, 2020, 85 FR 59641 (September 22, 2020); Notice of
November 12, 2020, 85 FR 72897 (November 13, 2020).
0
2. Supplement No. 4 to part 744 is amended under BURMA by:
0
a. Adding in alphabetical order an entry for ``King Royal Technologies
Co., Ltd.'';
0
b. Revising the listing for ``Myanmar Economic Corporation''; and
0
c. Adding in alphabetical order entries for ``Myanmar Wanbao Mining
Copper, Ltd.,'' ``Myanmar Yang Tse Copper, Ltd.,'' and ``Wanbao Mining,
Ltd.''.
The additions and revision read as follows:
Supplement No. 4 to Part 744--Entity List
* * * * *
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License review Federal Register
Country Entity License requirement policy citation
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* * * * * * *
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BURMA.................. * * * * * *
King Royal Technologies Co., All items subject Presumption of 86 FR [INSERT FR
Ltd., a.k.a., the following to the EAR. (See denial. PAGE NUMBER AND
one alias: Sec. 744.11 of July 6, 2021].
--KRT. the EAR).
4, Min Dhama Rd., Shwe Gabar
6th St, Shwe Gabar Housing,
Mayangone, Yangon , Burma;
and
Room 4 Shwe Gabar 6th
Yangon, Burma.
* * * * * *
Myanmar Economic For all items Presumption of 86 FR 13180, 3/8/
Corporation, a.k.a., the subject to the denial. 2021. 86 FR
following one alias: EAR. (See Sec. [INSERT FR PAGE
--MEC. 744.11 of the NUMBER AND July
EAR). 6, 2021].
Corner of Ahlone Road and
Strand Road, Ahlone
Township, Yangon, Burma.
* * * * * *
Myanmar Wanbao Mining All items subject Presumption of 86 FR [INSERT FR
Copper, Ltd., Yangon Office to the EAR. (See denial. PAGE NUMBER AND
70 (I)Bo Chein Street Pyay Sec. 744.11 of July 6, 2021].
Road, Hlaing Township, the EAR).
Yangon, Burma.
Myanmar Yang Tse Copper, All items subject Presumption of 86 FR [INSERT FR
Ltd., 70/I, Bo Chein St., to the EAR. (See denial. PAGE NUMBER AND
Ward (11), Hlaing, Yangon, Sec. 744.11 of July 6, 2021].
Burma. the EAR).
Wanbao Mining, Ltd., 70 Bo All items subject Presumption of 86 FR [INSERT FR
Chain Ln, Yangon, Burma. to the EAR. (See denial. PAGE NUMBER AND
Sec. 744.11 of July 6, 2021].
the EAR).
* * * * * * *
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* * * * *
Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 2021-14367 Filed 7-2-21; 8:45 am]
BILLING CODE 3510-33-P
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