Rule2023-02130
Additions to 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
February 1, 2023
Effective
January 31, 2023
Issuing agencies
Commerce DepartmentIndustry and Security Bureau
Abstract
In this rule, the Bureau of Industry and Security (BIS) amends the Export Administration Regulations (EAR) by adding seven entities to the Entity List. These seven entities, listed under the destination of Iran, have been determined by the U.S. Government to be acting contrary to the national security or foreign policy interests of the United States for contributing to Russia's military and defense industrial base. They are being added to the Entity List with application of the Russia/Belarus-Military End User Foreign Direct Product rule.
Full Text
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<title>Federal Register, Volume 88 Issue 21 (Wednesday, February 1, 2023)</title>
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[Federal Register Volume 88, Number 21 (Wednesday, February 1, 2023)]
[Rules and Regulations]
[Pages 6621-6624]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-02130]
[[Page 6621]]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Part 744
[Docket No. 230126-0028]
RIN 0694-AJ08
Additions to the Entity List
AGENCY: Bureau of Industry and Security, Department of Commerce.
ACTION: Final rule.
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SUMMARY: In this rule, the Bureau of Industry and Security (BIS) amends
the Export Administration Regulations (EAR) by adding seven entities to
the Entity List. These seven entities, listed under the destination of
Iran, have been determined by the U.S. Government to be acting contrary
to the national security or foreign policy interests of the United
States for contributing to Russia's military and defense industrial
base. They are being added to the Entity List with application of the
Russia/Belarus-Military End User Foreign Direct Product rule.
DATES: This rule is effective on January 31, 2023.
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#bbfee9f8fbd9d2c895dfd4d895dcd4cd"><span class="__cf_email__" data-cfemail="e5a0b7a6a5878c96cb818a86cb828a93">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
Background
The Entity List (supplement no. 4 to part 744 of the EAR (15 CFR
parts 730-774)) 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 parts 744 (Control Policy: End-User and
End-Use Based) and 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.
Entity List Decisions
A. Additions to the Entity List
The ERC determined to add the following seven entities to the
Entity List under the destination of Iran based on Sec. 744.11 for
activity contrary to U.S. national security and foreign policy
interests under Sec. Sec. 744.11 and 744.21 of the EAR: Design and
Manufacturing of Aircraft Engines, Islamic Revolutionary Guard Corps
Aerospace Force, Islamic Revolutionary Guard Corps Research and Self-
Sufficiency Jihad Organization, Oje Parvaz Mado Nafar Company, Paravar
Pars Company, Qods Aviation Industry, and Shahed Aviation Industries.
These entities are designated by the Departments of State and/or the
Treasury pursuant to Executive Order 13382 and other sanctions
programs. They are also currently subject to restrictions set forth in
part 744 of the EAR, such as those in Sec. Sec. 744.8, 744.12, and
744.14. With this rule, these entities are added to the Entity List for
contributing to Russia's military and defense industrial base through
the production of Iranian unmanned aerial vehicles (UAVs), which are
being transferred to Russia for use in Ukraine. This activity is
contrary to U.S. national security and foreign policy interests under
Sec. 744.11(b) and these entities qualify as `military end-users'
under Sec. 744.21(g) of the EAR. These entities will receive a
footnote 3 designation because the ERC has determined that they are
Russian or Belarusian `military end users' in accordance with Sec.
744.21. A footnote 3 designation subjects these entities to the Russia/
Belarus-Military End User Foreign Direct Product (FDP) rule, detailed
in Sec. 734.9(g) of the EAR. These seven entities are added to the
Entity List with a license requirement for all items subject to the
EAR. BIS will review license applications for items for these entities
under a policy of denial apart from food and medicine designated as
EAR99, which will be reviewed on a case-by-case basis. No license
exceptions are available for exports, reexports, or transfers (in-
country) to these entities.
For the reasons described above, this final rule adds the following
seven entities to the Entity List and includes, where appropriate,
aliases:
Iran
<bullet> Design and Manufacturing of Aircraft Engines (DAMA);
<bullet> Islamic Revolutionary Guard Corps Aerospace Force;
<bullet> Islamic Revolutionary Guard Corps Research and Self-
Sufficiency Jihad Organization;
<bullet> Oje Parvaz Mado Nafar Company;
<bullet> Paravar Pars Company;
<bullet> Qods Aviation Industry; and
<bullet> Shahed Aviation Industries.
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 January 31, 2023,
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)
before March 3, 2023. Any such items not actually exported, reexported
or transferred (in-country) before midnight, on March 3, 2023, require
a license in accordance with this final rule.
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. 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
[[Page 6622]]
(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 classifications, and carries a
burden estimate of 29.6 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.
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:
PART 744--CONTROL POLICY: END-USER AND END-USE BASED
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. Supplement No. 4 to part 744 is amended under IRAN by adding, in
alphabetical order, entries for ``Design and Manufacturing of Aircraft
Engines,'' ``Islamic Revolutionary Guard Corps Aerospace Force,''
``Islamic Revolutionary Guard Corps Research and Self-Sufficiency Jihad
Organization,'' ``Oje Parvaz Mado Nafar Company,'' ``Paravar Pars
Company,'' ``Qods Aviation Industry,'' and ``Shahed Aviation
Industries'' to 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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IRAN................... * * * * *
Design and Manufacturing of For all items Policy of denial 88 FR [INSERT FR
Aircraft Engines (DAMA), subject to the for all items PAGE NUMBER], 2/
a.k.a., the following four EAR. (See Sec. subject to the 1/2023.
aliases: Sec. EAR apart from
--DAMA; 734.9(g),\3\ food and
--Design and Manufacturing 744.21(b) and medicine
of Aero-Engine Company; 746.8(a)(3) of the designated as
--Iranian Turbine EAR) EAR99, which
Manufacturing Industries; will be reviewed
and on a case-by-
--Turbine Engine case basis. See
Manufacturing Co. Sec. Sec.
Shishesh Mina Street, Karaj 746.8(b) and
Special Road, Tehran, Iran. 744.21(e).
* * * * *
Islamic Revolutionary Guard For all items Policy of denial 88 FR [INSERT FR
Corps Aerospace Force, subject to the for all items PAGE NUMBER], 2/
a.k.a., the following ten EAR. (See Sec. subject to the 1/2023.
aliases: Sec. EAR apart from
--IRGC-ASF; 734.9(g),\3\ food and
--Aerospace Division of 744.21(b) and medicine
IRGC; 746.8(a)(3) of the designated as
--Aerospace Force of the EAR) EAR99, which
Army of the Guardians of will be reviewed
the Islamic Revolution; on a case-by-
--AFAGIR; case basis. See
--Air Force, IRGC; Sec. Sec.
--IRGC Aerospace Force; 746.8(b) and
--IRGC Air Force; IRGCAF; 744.21(e).
--IRGCASF; Islamic
Revolution Guards Corps Air
Force;
--Islamic Revolutionary
Guards Corps Air Force; and
--Sepah Pasdaran Air Force.
Damavand Tehran Highway,
Tehran Province, Iran
[[Page 6623]]
Islamic Revolutionary Guard For all items Policy of denial 88 FR [INSERT FR
Corps Research and Self- subject to the for all items PAGE NUMBER], 2/
Sufficiency Jihad EAR. (See Sec. subject to the 1/2023.
Organization, a.k.a., the Sec. EAR apart from
following 13 aliases: 734.9(g),\3\ food and
--IRGC SSJO; 744.21(b) and medicine
--Islamic Revolutionary 746.8(a)(3) of the designated as
Guard Corps Self- EAR) EAR99, which
Sufficiency Jehad will be reviewed
Organization; on a case-by-
--IRGC Research and Self case basis. See
Sufficiency Jehad Sec. Sec.
Organization; 746.8(b) and
--Self-Sufficiency Jihad 744.21(e).
Organization;
--IRGC's Arms and Military
Equipment Self-Sufficiency
Program;
--IRGC Jihad Self-
Sufficiency Organization;
--Jihad Self-Sufficiency
Organization of Islamic
Revolution Iranian
Revolutionary Guards;
--Self Sufficiency Jihad
Organization;
--IRGC's Self-Sufficiency
and Industrial Research
Center;
--IRGC's Self-Sufficiency
and Industrial Research
Centre;
--IRGC Missile Research
Center;
--IRGC Self-Sufficiency
Organization; and
--IRGC's Research and Self-
Sufficiency Organization.
Tehran and Isfahan, Iran
* * * * *
Oje Parvaz Mado Nafar For all items Policy of denial 88 FR [INSERT FR
Company, a.k.a., the subject to the for all items PAGE NUMBER], 2/
following three aliases: EAR. (See Sec. subject to the 1/2023.
--Mado; Sec. EAR apart from
--Owj Parvaz Mado Nafar 734.9(g),\3\ food and
Company LLC; and 744.21(b) and medicine
--Mado Company 746.8(a)(3) of the designated as
No. 1106, 11 Hemmat Corner, EAR) EAR99, which
Hemmat Square, Hemmat will be reviewed
Boulevard, Shokuhieh on a case-by-
Industrial Town, Qom, Qom case basis. See
Province, 3718116354, Iran Sec. Sec.
746.8(b) and
744.21(e).
* * * * *
Paravar Pars Company, For all items Policy of denial 88 FR [INSERT FR
a.k.a., the following six subject to the for all items PAGE NUMBER], 2/
aliases: EAR. (See Sec. subject to the 1/2023.
--Paravar Pars Aerospace Sec. EAR apart from
Research and Engineering 734.9(g),\3\ food and
Services; 744.21(b) and medicine
--Paravar Pars Aerospace 746.8(a)(3) of the designated as
Research Institute; EAR) EAR99, which
--Paravar Pars Engineering will be reviewed
and Services Aerospace on a case-by-
Research Company; case basis. See
--Paravar Pars; Sec. Sec.
--ParavarPars; and 746.8(b) and
--Pravarpars Engineering 744.21(e).
Research and Design Company
13 km of Shahid Babaei
Highway, after Imam Hossein
University, next to Telo
Road, Tehran, Iran
* * * * *
Qods Aviation Industry, For all items Policy of denial 88 FR [INSERT FR
a.k.a., the following eight subject to the for all items PAGE NUMBER], 2/
aliases: EAR. (See Sec. subject to the 1/2023.
--Qods Aviation Industries; Sec. EAR apart from
--Qoods Aviation Industries; 734.9(g),\3\ food and
--Qhods Aviation Industries; 744.21(b) and medicine
--Qods Aviation Industry; 746.8(a)(3) of the designated as
--Qods Air Industries; EAR) EAR99, which
--Ghods Aviation Industries; will be reviewed
--Qods Research Center; and on a case-by-
--Qods Aeronautics case basis. See
Industries. Sec. Sec.
Unit (or Suite) 207, Saleh 746.8(b) and
Blvd, Tehran, Iran; and 744.21(e).
Unit 207, Tarajit Maydane
Taymori (or Teimori)
Square, Basiri Building,
Tarasht, Tehran, Iran; and
P.O. Box 15875-1834, Km 5
Karaj Special Road, Tehran,
Iran
* * * * *
[[Page 6624]]
Shahed Aviation Industries, For all items Policy of denial 88 FR [INSERT FR
a.k.a., the following five subject to the for all items PAGE NUMBER], 2/
aliases: EAR. (See Sec. subject to the 1/2023.
--Shahed Aviation Industries Sec. EAR apart from
Research Center; 734.9(g),\3\ food and
--Shahed Aviation; 744.21(b) and medicine
--Shahed Aviation Industries 746.8(a)(3) of the designated as
Research; EAR) EAR99, which
--Shahed Aviation Industries will be reviewed
Research Centre; and on a case-by-
--SAIRC. case basis. See
Shahid Lavi Street, Sajad Sec. Sec.
Street, Isfahan, Iran 746.8(b) and
744.21(e).
* * * * * * *
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\3\ For this entity, ``items subject to the EAR'' includes foreign-produced items that are subject to the EAR
under Sec. 734.9(g) of the EAR. See Sec. Sec. 746.8 and 744.21 of the EAR for related license
requirements, license review policy, and restrictions on license exceptions.
* * * * * * *
Thea D. Rozman Kendler,
Assistant Secretary for Export Administration.
[FR Doc. 2023-02130 Filed 1-31-23; 8:45 am]
BILLING CODE 3510-JT-P
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