Rule2022-27149
Revisions to the Unverified List and 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
December 16, 2022
Effective
December 16, 2022
Issuing agencies
Commerce DepartmentIndustry and Security Bureau
Abstract
The Bureau of Industry and Security (BIS) is amending the Export Administration Regulations (EAR) by removing 9 persons from the Unverified List (UVL) and adding them to the Entity List, all under the destination of Russia. BIS has been unable to verify the bona fides of all 9 persons being removed from the UVL and added to the Entity List, due to the foreign government's prevention of timely end-use checks. BIS is also amending the EAR by removing 27 persons from the UVL, one under the destination of Pakistan and 26 under the destination of China, because BIS was able to verify their bona fides.
Full Text
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<title>Federal Register, Volume 87 Issue 241 (Friday, December 16, 2022)</title>
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[Federal Register Volume 87, Number 241 (Friday, December 16, 2022)]
[Rules and Regulations]
[Pages 76924-76928]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-27149]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Part 744
[Docket No. 221209-0268]
RIN 0694-AJ02
Revisions to the Unverified List and the Entity List
AGENCY: Bureau of Industry and Security, Department of Commerce.
ACTION: Final rule.
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SUMMARY: The Bureau of Industry and Security (BIS) is amending the
Export Administration Regulations (EAR) by removing 9 persons from the
Unverified List (UVL) and adding them to the Entity List, all under the
destination of Russia. BIS has been unable to verify the bona fides of
all 9 persons being removed from the UVL and added to the Entity List,
due to the foreign government's prevention of timely end-use checks.
BIS is also amending the
[[Page 76925]]
EAR by removing 27 persons from the UVL, one under the destination of
Pakistan and 26 under the destination of China, because BIS was able to
verify their bona fides.
DATES: This rule is effective: December 16, 2022.
FOR FURTHER INFORMATION CONTACT: For questions on the Entity List
revisions, 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#5510071615373c267b313a367b323a23"><span class="__cf_email__" data-cfemail="a5e0f7e6e5c7ccd68bc1cac68bc2cad3">[email protected]</span></a>.
For questions on the Unverified List revisions, contact: Linda
Minsker, Director, Office of Enforcement Analysis, Phone: (202) 482-
4255, Email: <a href="/cdn-cgi/l/email-protection#3065667c62554145554344705259431e545f531e575f46"><span class="__cf_email__" data-cfemail="c194978d93a4b0b4a4b2b581a3a8b2efa5aea2efa6aeb7">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
Background
Entity List Changes
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, pursuant to Sec. 744.11(b). The
EAR impose additional license requirements on, and limit the
availability of most license exceptions for, exports, reexports, and
transfers (in-country) when a listed entity is a party to the
transaction. 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 that added the entity to the
Entity List. The Bureau of Industry and Security (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.
Additions to the Entity List and Removal From the Unverified List
The ERC determined to add the following entities to the Entity List
pursuant to Sec. 744.11(b)(4)(ii) under the destination of Russia:
Alliance EG Ltd.; FSUE Rosmorport Far Eastern Basin Branch; Intercom
Ltd.; Nasosy Ampika; Nuclin LLC; SDB IRE RAS; Security 2 Business
Academy; Tavrida Microelectronics; and VIP Technology Ltd. These
entities are being added due to the long-term (60 days or greater)
prevention of a successful end-use check conducted by or on behalf of
BIS. Specifically, there has been a sustained lack of cooperation by
the host government to schedule and facilitate the completion of a
timely end-use check of persons listed on the Unverified List. As a
result of the sustained inability to conduct an end-use check, there is
an unacceptable risk of diversion or misuse of items subject to the
EAR. The ERC believes that prior review of exports, reexports, or
transfers (in-country) involving the entities and the possible
imposition of license conditions or license denial enhance BIS's
ability to prevent violations of the EAR. These entities are added to
the Entity List with a license requirement for all items subject to the
EAR. BIS will review license applications pertaining to these entities
under a policy of denial, pursuant to Sec. 746.8(b). No license
exceptions are available for exports, reexports, or transfers (in-
country) to these entities.
As a conforming change, each of the entities added to the Entity
List by this rule is also removed from the Unverified List. For other
changes to the Unverified List made by this rule, which are separate
from this action, please see below.
Unverified List Changes
The UVL, 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 described in Sec. 748.5 of the EAR, involving the
export, reexport, or transfer (in-country) of items subject to the EAR.
These foreign persons are added to the UVL because BIS or federal
officials acting on BIS's behalf were unable to verify their bona fides
(i.e., legitimacy and reliability relating to the end use and end user
of items subject to the EAR) through the completion of an end-use
check. Sometimes these checks, such as a pre-license check (PLC) or a
post-shipment verification (PSV), cannot be completed satisfactorily
for reasons outside the U.S. Government's control.
There are any number of reasons why these checks cannot be
completed to the satisfaction of the U.S. Government. The reasons
include, but are not limited to: (1) reasons unrelated to the
cooperation of the foreign party subject to the end-use check (for
example, BIS sometimes initiates end-use checks but is unable to
complete them because the foreign party cannot be found at the address
indicated on the associated export documents and BIS cannot contact the
party by telephone or email); (2) reasons related to a lack of
cooperation by the host government that fails to schedule and
facilitate the completion of an end-use check, for example by host
government agencies' lack of responses to requests to conduct end-use
checks, actions preventing the scheduling of such checks, or refusals
to schedule checks in a timely manner; or (3) when, during the end-use
check, a recipient of items subject to the EAR is unable to produce the
items that are the subject of the end-use check for visual inspection
or provide sufficient documentation or other evidence to confirm the
disposition of the items.
BIS's inability to confirm the bona fides of foreign persons
subject to end-use checks for the reasons described above raises
concerns about the suitability of such persons as participants in
future exports, reexports, or transfers (in-country) of items subject
to the EAR; this also indicates a risk that such items may be diverted
to prohibited end uses and/or end users. Under such circumstances,
there may not be sufficient information to add the foreign person at
issue to the Entity List under Sec. 744.11 of the EAR. Therefore, BIS
may add the foreign person to the UVL.
As provided in Sec. 740.2(a)(17) of the EAR, the use of license
exceptions for exports, reexports, and transfers (in-country) involving
a party or parties to the transaction who are listed on the UVL is
suspended. Additionally, under Sec. 744.15(b) of the EAR, there is a
requirement for exporters, re-exporters, and transferors to obtain (and
maintain a record of) a UVL statement from a party or parties to the
transaction who are listed on the UVL before proceeding with exports,
reexports, and transfers (in-country) to such persons, when the
exports, reexports and transfers (in-country) are not subject to a
license requirement. Finally, pursuant to Sec. 758.1(b)(8), Electronic
Export Information (EEI) must be filed in the Automated Export System
(AES) for all exports of tangible items subject to the EAR where
parties to the transaction, as described in Sec. 748.5(d) through (f),
are listed on the UVL.
[[Page 76926]]
Requests for the removal of a UVL entry must be made in accordance
with Sec. 744.15(d) of the EAR. Decisions regarding the removal or
modification of UVL entry will be made by the Deputy Assistant
Secretary for Export Enforcement, based on a demonstration by the
listed person of their bona fides.
Removals From the UVL
This final rule removes 27 persons from the UVL after BIS was able
to verify their bona fides. This rule removes ENGRO Polymer & Chemicals
Limited under the destination of Pakistan and the following 26 persons
under the destination of China: ``Beijing Naura Magnetoelectric
Technology Co., Ltd.;'' ``CCIC Southern Electronic Product Testing Co.,
Ltd.;'' ``Center for High Pressure Science and Technology Advanced
Research;'' ``Changchun National Extreme Precision Optics Co., Ltd.;''
``Chinese Academy of Geological Sciences, Institute of Mineral
Resources;'' ``Chinese Academy of Science (CAS) Institute of
Chemistry;'' ``Dongguan Durun Optical Technology Co., Ltd.;'' ``Foshan
Huaguo Optical Co., Ltd.;'' ``Guangdong University of Technology;''
``Guangxi Intai Technology Co., Ltd.;'' ``Guangxi Yuchai Machinery Co.,
Ltd.;'' ``Guangzhou Hymson Laser Technology Co., Ltd.;'' ``Heshan Deren
Electronic Technology Co., Ltd.;'' ``Hubei Longchang Optical Co.,
Ltd.;'' ``Hubei Sinophorus Electronic Materials Co., Ltd.;'' ``Kunshan
Heng Rui Cheng Industrial Technology;'' ``Shanghai Fansheng
Optoelectronic Science & Technology Co. Ltd.;'' ``Shanghai Micro
Electronics Equipment (Group) Co., Ltd.;'' ``ShanghaiTech University;''
``Southern University of Science and Technology, Department of
Mechanical and Energy Engineering;'' ``University of Chinese Academy of
Sciences, School of Chemical Sciences;'' ``University of Shanghai for
Science and Technology;'' ``Vital Advanced Materials Co., Ltd.;''
``Wuhan Juhere Photonic Tech Co., Ltd.;'' ``Wuxi Biologics (Shanghai)
Co., Ltd.;'' and ``Zhongshan Thincloud Optics Co., Ltd.;''. BIS is
removing these 27 persons pursuant to Sec. 744.15(c)(2) of the EAR.
Removal of a person from the UVL because BIS was able to verify
their bona fides does not affect any other section of the EAR that
imposes a license requirement for exports, reexports, transfers (in-
country), or exports from abroad or activities of U.S. persons. In
addition, this action does not preclude subsequent action, including
adding such persons to the Entity List pursuant to part 744 of the EAR.
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.
Sections 4801-4852. ECRA provides the legal basis for BIS's principal
authorities and serves as the authority under which BIS issues this
final rule.
Savings Clause
For the changes being made in this final rule, 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 [INSERT DATE OF
PUBLICATION IN THE FEDERAL REGISTER], 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).
Executive Order Requirements
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, distribute 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 final rule is not a ``significant regulatory action''
under Executive Order 12866.
This rule does not contain policies with Federalism implications as
that term is defined under Executive Order 13132.
Paperwork Reduction Act Requirements
Notwithstanding any other provision of law, no person is required
to respond to, nor is 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.
The Entity List additions 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 classifications, and carries a burden
estimate of 29.4 minutes for a manual or electronic submission for a
total burden estimate of 33,133 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.
BIS believes that the overall increases in burdens and costs will
be minimal and will fall within the already approved amounts for these
existing collections.
Administrative Procedure Act and Regulatory Flexibility Act
Requirements
Pursuant to Section 4821 of ECRA, this action is exempt from the
Administrative Procedure Act (5 U.S.C. 553) requirements for notice of
proposed rulemaking and opportunity for public participation.
Further, no other law requires notice of proposed rulemaking or
opportunity for public comment for this final rule. Because a notice of
proposed rulemaking and an opportunity for public comment are not
required under the Administrative Procedure Act or by any other law,
the analytical requirements of the Regulatory Flexibility Act (5 U.S.C.
601 et seq.) are not applicable.
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 through 774) is amended as follows:
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 19, 2022, 87 FR 57569 (September 21, 2022); Notice of
November 8, 2022, 87 FR 68015 (November 10, 2022).
0
2. Amend Supplement no. 4 to part 744 under RUSSIA, by adding in
alphabetical order, entries for ``Alliance
[[Page 76927]]
EG Ltd.'', ``FSUE Rosmorport Far Eastern Basin Branch'', ``Intercom
Ltd.'', ``Nasosy Ampika'', ``Nuclin LLC'', ``SDB IRE RAS'', ``Security
2 Business Academy'', ``Tavrida Microelectronics'', and ``VIP
Technology Ltd.'' to read as follows:
Supplement No. 4 to Part 744--Entity List
* * * * *
----------------------------------------------------------------------------------------------------------------
License License review Federal Register
Country Entity requirement policy citation
----------------------------------------------------------------------------------------------------------------
* * * * * * *
----------------------------------------------------------------------------------------------------------------
RUSSIA................. * * * * * *
Alliance EG Ltd., Leninsky For all items Policy of denial. 87 FR [INSERT FR
Prospect 139, Office 310 subject to the See Sec. PAGE NUMBER],
St., Petersburg 198216, EAR. (See Sec. 746.8(b). December 16,
Russia. 744.11 of the 2022.
EAR).
* * * * * *
FSUE Rosmorport Far Eastern For all items Policy of denial. 87 FR [INSERT FR
Basin Branch, subject to the See Sec. PAGE NUMBER],
Nizhneportovaya Street 3 EAR. (See Sec. 746.8(b). December 16,
Primorskiy Territory, 744.11 of the 2022.
Vladivostok 690003, Russia. EAR).
* * * * * *
Intercom Ltd., Kalinina For all items Policy of denial. 87 FR [INSERT FR
Street 13 Saint Petersburg subject to the See Sec. PAGE NUMBER],
198099, Russia. EAR. (See Sec. 746.8(b). December 16,
744.11 of the 2022.
EAR).
* * * * * *
Nasosy Ampika, 3-ya For all items Policy of denial. 87 FR [INSERT FR
Institutskaya St. Bld. 15 subject to the See Sec. PAGE NUMBER],
Moscow, Russia. EAR. (See Sec. 746.8(b). December 16,
744.11 of the 2022.
EAR).
* * * * * *
Nuclin LLC, Serebryakova For all items Policy of denial. 87 FR [INSERT FR
Proezd 14 Moscow, Russia. subject to the See Sec. PAGE NUMBER],
EAR. (See Sec. 746.8(b). December 16,
744.11 of the 2022.
EAR).
* * * * * *
SDB IRE RAS, 1 Vvedenskogo For all items Policy of denial. 87 FR [INSERT FR
Square Fryazino, Russia. subject to the See Sec. PAGE NUMBER],
EAR. (See Sec. 746.8(b). December 16,
744.11 of the 2022.
EAR).
Security 2 Business Academy, For all items Policy of denial. 87 FR [INSERT FR
a.k.a., the following two subject to the See Sec. PAGE NUMBER],
aliases: EAR. (See Sec. 746.8(b). December 16,
-- S2BA 744.11 of the 2022.
--Academy of Business EAR).
Security.
Deguninskaya Street 10
Moscow, Russia; and
Novoslobodskaya Str. 14/19
Moscow, Russia.
* * * * * *
Tavrida Microelectronics, For all items Policy of denial. 87 FR [INSERT FR
Zelenaya Street 1 subject to the See Sec. PAGE NUMBER],
Dolgoprudnyy Moscow 141700, EAR. (See Sec. 746.8(b). December 16,
Russia. 744.11 of the 2022.
EAR).
* * * * * *
VIP Technology Ltd., For all items Policy of denial. 87 FR [INSERT FR
Bechtereva Street 3/2, subject to the See Sec. PAGE NUMBER],
Office 40 Saint Petersburg EAR. (See Sec. 746.8(b). December 16,
192019, Russia. 744.11 of the 2022.
EAR).
* * * * * *
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0
3. Supplement no. 6 to part 744 is amended by:
0
a. Under CHINA, PEOPLE'S REPUBLIC OF, removing the following entries:
``Beijing Naura Magnetoelectric Technology Co., Ltd.'', ``CCIC Southern
Electronic Product Testing Co., Ltd .'', ``Center for High Pressure
Science and Technology Advanced Research'', ``Changchun National
Extreme Precision Optics Co., Ltd.'', ``Chinese Academy of Geological
Sciences, Institute of Mineral Resources'', ``Chinese Academy of
Science (CAS) Institute of Chemistry'', ``Dongguan Durun Optical
Technology Co., Ltd.'', ``Foshan Huaguo Optical Co., Ltd.'',
``Guangdong University of Technology'', ``Guangxi Intai Technology Co.,
Ltd.'', ``Guangxi Yuchai Machinery Co., Ltd.'', ``Guangzhou Hymson
Laser Technology Co., Ltd.'', ``Heshan Deren Electronic Technology Co.,
Ltd.'', ``Hubei Longchang Optical Co., Ltd.'', ``Hubei Sinophorus
Electronic Materials Co., Ltd.'', ``Kunshan Heng Rui Cheng Industrial
Technology'', ``Shanghai Fansheng Optoelectronic Science & Technology
Co., Ltd.'', ``Shanghai Micro Electronics Equipment (Group) Co.,
Ltd.'', ``ShanghaiTech University'', ``Southern University of Science
and Technology, Department of Mechanical and Energy Engineering'',
``University of Chinese Academy of Sciences, School of Chemical
Sciences'', ``University of Shanghai for Science and Technology'',
``Vital Advanced Materials Co., Ltd.'', ``Wuhan Juhere Photonic Tech
Co., Ltd.'', ``Wuxi Biologics (Shanghai) Co., Ltd.'', and ``Zhongshan
Thincloud Optics Co., Ltd.'';
0
b. Under PAKISTAN, removing the entry for ``ENGRO Polymer & Chemicals
Limited''; and
0
c. Under RUSSIA, removing the following entries: ``Alliance EG Ltd.'',
[[Page 76928]]
``FSUE Rosmorport Far Eastern Basin Branch'', ``Intercom Ltd.'',
``Nasosy Ampika'', ``Nuclin LLC'', ``SDB IRE RAS'', ``Security 2
Business Academy'', ``Tavrida Microelectronics'', and ``VIP Technology
Ltd.''
Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 2022-27149 Filed 12-15-22; 8:45 am]
BILLING CODE 3510-33-P
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