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Rule2023-03929

Additions of Entities to the Entity List

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Published

February 27, 2023

Effective

February 24, 2023

Issuing agencies

Commerce DepartmentIndustry and Security Bureau

Abstract

The Department of Commerce is amending the Export Administration Regulations (EAR) by adding 10 entities under 13 entries to the Entity List. These entities have been determined by the U.S. Government to be acting contrary to the national security or foreign policy interests of the United States. These entities are listed on the Entity List under the destinations of Canada (2), China (5), France (1), Luxembourg (1), Netherlands (1), and Russia (3).

Full Text

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<title>Federal Register, Volume 88 Issue 38 (Monday, February 27, 2023)</title>
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[Federal Register Volume 88, Number 38 (Monday, February 27, 2023)]
[Rules and Regulations]
[Pages 12170-12175]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-03929]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 744

[Docket No. 230221-0050]
RIN 0694-AJ13

Additions of Entities to the Entity List

AGENCY: Bureau of Industry and Security, Department of Commerce.

ACTION: Final rule.

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SUMMARY: The Department of Commerce is amending the Export
Administration Regulations (EAR) by adding 10 entities under 13 entries
to the Entity List. These entities have been determined by the U.S.
Government to be acting contrary to the national security or foreign
policy interests of the United States. These entities are listed on the
Entity List under the destinations of Canada (2), China (5), France
(1), Luxembourg (1), Netherlands (1), and Russia (3).

DATES: This rule is effective February 24, 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#de9b8c9d9ebcb7adf0bab1bdf0b9b1a8"><span class="__cf_email__" data-cfemail="6a2f38292a080319440e0509440d051c">[email&#160;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 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

The ERC determined to add AOOK Technology Ltd., under the
destination of China; CPUNTO Inc., under the destination of Canada;
Dexias Industrial Products and Trade Limited Company, under the
destination of Russia; Electronic Network Inc., under the destination
of Canada; Innovation and Technologies LLC, under the destination of
Russia; and Promtekhkomplekt JSC, under the destination of Russia, to
the Entity List. These additions are based on information that these
companies significantly contribute to Russia's military and/or defense
industrial base and are involved in activities contrary to U.S.
national security and foreign policy interests under Sec. Sec. 744.11
and 744.21 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 under
Sec. 734.9(g). These entities are added with a license requirement for
all items subject to the EAR. License applications will be reviewed
under a policy of denial for all items subject to the EAR, other than
applications for food and medicine designated as EAR99, which will be
reviewed on a case-by-case basis.
The ERC determined to add Beijing Ti-Tech Science and Technology
Development Co., under the destination of China; Beijing Yunze
Technology Co., Ltd., under the destination of China; China HEAD
Aerospace Technology Co., under the destinations of China, France, and
the Netherlands; and Spacety Co.,

[[Page 12171]]

Ltd., under the destinations of China and Luxembourg, to the Entity
List. These additions are based on information that these companies
significantly contribute to Russia's military and/or defense industrial
base and are involved in activities contrary to U.S. national security
and foreign policy interests under Sec. Sec. 744.11 and 744.21 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 under Sec. 734.9(g). These
entities are added with a license requirement for all items subject to
the EAR. License applications for these entities will be reviewed under
a policy of denial for all items subject to the EAR, other than
applications for food and medicine designated as EAR99, which will be
reviewed on a case-by-case basis.
For the reasons described above, this final rule adds the following
10 entities under 13 entries to the Entity List and includes, where
appropriate, aliases:

Canada

<bullet> CPUNTO Inc., and
<bullet> Electronic Network Inc.

China

<bullet> AOOK Technology Ltd.,
<bullet> Beijing Ti-Tech Science and Technology Development Co.,
<bullet> Beijing Yunze Technology Co., Ltd.,
<bullet> China HEAD Aerospace Technology Co., and
<bullet> Spacety Co. Ltd.

France

<bullet> China HEAD Aerospace Technology Co.

Luxembourg

<bullet> Spacety Co., Ltd.

Netherlands

<bullet> China HEAD Aerospace Technology Co.

Russia

<bullet> Dexias Industrial Products and Trade Limited Company,
<bullet> Innovation and Technologies LLC, and
<bullet> Promtekhkomplekt JSC.

Allied Governments Note

BIS notes that this rule is meant to serve as a response to Russian
aggression against Ukraine. This rule does include entities in several
allied and partnered countries, but is not an action against the
countries in which the entities are located or registered or the
governments of those countries. This rule only serves as an action
against those entities listed, which have assisted the Russian
military, contrary to U.S. foreign and national security policy
interests.

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 February 24th, 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. 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 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.
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:
0
a. Under CANADA, by adding in alphabetical order, entries for ``CPUNTO
Inc.'' and ``Electronic Network Inc.'';
0
b. Under CHINA, PEOPLE'S REPUBLIC OF, by adding, in alphabetical order,
entries for ``AOOK Technology Ltd.''; ``Beijing Ti-Tech Science and
Technology Development Co.''; ``Beijing Yunze Technology Co., Ltd.'';
``China HEAD Aerospace Technology Co.''; and ``Spacety Co., Ltd.'';
0
c. Under FRANCE, by adding in alphabetical order, an entry for ``China
HEAD Aerospace Technology Co.'';
0
d. Under LUXEMBOURG, by adding in alphabetical order, an entry for
``Spacety Co., Ltd.'';

[[Page 12172]]

0
e. Under NETHERLANDS, by adding in alphabetical order, an entry for
``China HEAD Aerospace Technology Co.''; and
0
f. Under RUSSIA, by adding, in alphabetical order, entries for ``Dexias
Industrial Products and Trade Limited Company''; ``Innovation and
Technologies LLC''; and ``Promtekhkomplekt JSC''.

Supplement No. 4 to Part 744--Entity List

* * * * *

* * * * * * *
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Country Entity License........... License........... Federal Register
requirement....... review policy..... citation
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* * * * * * *
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CANADA................. * * * * * *
CPUNTO Inc., a.k.a., the For all items Policy of denial 88 FR [INSERT FR
following one alias: subject to the for all items PAGE NUMBER AND
--CPUNTO. EAR. (See Sec. subject to the 2/27/2023].
5929 Route Transcanadienne Sec. EAR apart from
Ste 130 St. Laurent, Quebec 734.9(g),\3\ food and medicine
H4T 1Z6 Canada. 744.21(b), and designated as
746.8(a)(3) of EAR99, which will
the EAR). be reviewed on a
case-by-case
basis. See Sec.
Sec. 746.8(b)
and 744.21(e).
* * * * * *
Electronic Network Inc., For all items Policy of denial 88 FR [INSERT FR
a.k.a., the following six subject to the for all items PAGE NUMBER AND
aliases: EAR. (See Sec. subject to the 2/27/2023].
--Electronic Network; Sec. EAR apart from
--Electronic Network 734.9(g),\3\ food and medicine
Holdings; 744.21(b), and designated as
--Electronic Network 746.8(a)(3) of EAR99, which will
Holdings Inc.; the EAR). be reviewed on a
--Electronic Network case-by-case
Incorporated; basis. See Sec.
--Electronic Network Sec. 746.8(b)
Products Inc.; and and 744.21(e).
--Electronic's Network &
Technology Corp.
145 Montee De Liesse Ste 10
St. Laurent, Quebec H4T 1T9
Canada.
* * * * * *
----------------------------------------------------------------------------------------------------------------

* * * * * * *
----------------------------------------------------------------------------------------------------------------
CHINA, PEOPLE'S * * * * * *
REPUBLIC OF.
AOOK Technology Ltd., For all items Policy of denial 88 FR [INSERT FR
a.k.a., the following two subject to the for all items PAGE NUMBER AND
aliases: EAR. (See Sec. subject to the 2/27/2023].
--AOOK; and Sec. EAR apart from
--AOOK Electronics. 734.9(g),\3\ food and medicine
Rm 803 Chevalier Building 45- 744.21(b), and designated as
51 Chatham Rd S Tsim Sha 746.8(a)(3) of EAR99, which will
Tsui Hong Kong, China. the EAR). be reviewed on a
case-by-case
basis. See Sec.
Sec. 746.8(b)
and 744.21(e).
* * * * * *
Beijing Ti-Tech Science and For all items Policy of denial 88 FR [INSERT FR
Technology Development Co., subject to the for all items PAGE NUMBER AND
a.k.a., the following two EAR. (See Sec. subject to the 2/27/2023].
aliases: Sec. EAR apart from
--Beijing Ti-Tech; and 734.9(g),\3\ food and medicine
--China Ti-Tech Development 744.21(b), and designated as
Co. Ltd. 746.8(a)(3) of EAR99, which will
5F, Building 5 Science and the EAR). be reviewed on a
Technology Park, A-2 North case-by-case
Xisanhuan Road, Beijing basis. See Sec.
100081 China. Sec. 746.8(b)
and 744.21(e).
* * * * * *

[[Page 12173]]

Beijing Yunze Technology For all items Policy of denial 88 FR [INSERT FR
Co., Ltd., a.k.a., the subject to the for all items PAGE NUMBER AND
following three aliases: EAR. (See Sec. subject to the 2/27/2023].
--Beijing Yunze; Sec. EAR apart from
--Beijing Yunze Technology 734.9(g),\3\ food and medicine
Company; and 744.21(b), and designated as
--Yunze Beijing. 746.8(a)(3) of EAR99, which will
West of Floor 1, Building 7, the EAR). be reviewed on a
Jiajia Garden Courtyard 15, case-by-case
Fengtai Beijing 100000 basis. See Sec.
China; and 201, Floor 2, Sec. 746.8(b)
36#, Yinhe Garden, Miyun and 744.21(e).
District Beijing 100000
China; and 402, Floor 4,
No. 85, Huilongguan W.
Street, Changping District
Beijing 102200 China.
* * * * * *
China HEAD Aerospace For all items Policy of denial 88 FR [INSERT FR
Technology Co., a.k.a., the subject to the for all items PAGE NUMBER AND
following seven aliases: EAR. (See Sec. subject to the 2/27/2023].
--China HEAD; Sec. EAR apart from
--China HEAD Technology Co; 734.9(g),\3\ food and medicine
--HEAD Aerospace; 744.21(b), and designated as
--HEAD Aerospace Group; 746.8(a)(3) of EAR99, which will
--HEAD Aerospace the EAR). be reviewed on a
Netherlands; case-by-case
--HEAD France; and basis. See Sec.
--HEAD Technology France. Sec. 746.8(b)
and 744.21(e).
5F, Bldg 5, Science and
Technology Park, A-2 North
Xisanhuan Road, Haidian
District, Beijing 100081,
P.R. China; and Room 01,
floor 13, building 5, no.
A2 courtyard, west 3\rd\
ring r. Beijing, 10004-8,
China; and B-11a-02 Keshi
Plaza 28 Shangdi Xinxi Rd
Beijing 100058 China. (See
alternate address under
France and Netherlands).
Spacety Co., Ltd., a.k.a., For all items Policy of denial 88 FR [INSERT FR
the following three subject to the for all items PAGE NUMBER AND
aliases: EAR. (See Sec. subject to the 2/27/2023].
--Changsha Tianyi Space Sec. EAR apart from
Science and Technology 734.9(g),\3\ food and medicine
Research Institute; 744.21(b), and designated as
--Spacety; and 746.8(a)(3) of EAR99, which will
--Spacety Luxembourg S.A. the EAR). be reviewed on a
9 Dengzhuang South Rd case-by-case
Beijing, Beijing China; and basis. See Sec.
Room 445, 9\th\ Floor, Sec. 746.8(b)
Block B, No. 18 and 744.21(e).
Zhongguancun Street,
Haidian District, Beijing
China. (See alternate
address under Luxembourg).
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* * * * * * *
----------------------------------------------------------------------------------------------------------------
FRANCE................. * * * * * *
China HEAD Aerospace For all items Policy of denial 88 FR [INSERT FR
Technology Co., a.k.a., the subject to the for all items PAGE NUMBER AND
following seven aliases: EAR. (See Sec. subject to the 2/27/2023].
--China HEAD; Sec. EAR apart from
--China HEAD Technology Co; 734.9(g),\3\ food and medicine
--HEAD Aerospace; 744.21(b), and designated as
--HEAD Aerospace Group; 746.8(a)(3) of EAR99, which will
--HEAD Aerospace the EAR). be reviewed on a
Netherlands; case-by-case
--HEAD France; and basis. See Sec.
--HEAD Technology France. Sec. 746.8(b)
and 744.21(e).
71 Boulevard national, 92250
La Garenne-Colombes Paris,
France. (See alternate
address under China and
Netherlands).
* * * * * *
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* * * * * * *
----------------------------------------------------------------------------------------------------------------
LUXEMBOURG............. * * * * * *

[[Page 12174]]

Spacety Co., Ltd., a.k.a., For all items Policy of denial 88 FR [INSERT FR
the following three subject to the for all items PAGE NUMBER AND
aliases: EAR. (See Sec. subject to the 2/27/2023].
--Changsha Tianyi Space Sec. EAR apart from
Science and Technology 734.9(g),\3\ food and medicine
Research Institute; 744.21(b), and designated as
--Spacety; and 746.8(a)(3) of EAR99, which will
--Spacety Luxembourg S.A. the EAR). be reviewed on a
9, Avenue des Hauts- case-by-case
Fourneaux, L-4362 Esch-Sur- basis. See Sec.
Alzette, Luxembourg. (See Sec. 746.8(b)
alternate address under and 744.21(e).
China).
* * * * * *
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* * * * * * *
----------------------------------------------------------------------------------------------------------------
NETHERLANDS............ * * * * * *
China HEAD Aerospace For all items Policy of denial 88 FR [INSERT FR
Technology Co., a.k.a., the subject to the for all items PAGE NUMBER AND
following seven aliases: EAR. (See Sec. subject to the 2/27/2023].
--China HEAD; Sec. EAR apart from
--China HEAD Technology Co; 734.9(g),\3\ food and medicine
--HEAD Aerospace; 744.21(b), and designated as
--HEAD Aerospace Group; 746.8(a)(3) of EAR99, which will
--HEAD Aerospace the EAR). be reviewed on a
Netherlands; case-by-case
--HEAD France; and basis. See Sec.
--HEAD Technology France. Sec. 746.8(b)
Kapteynstraat 1 2201 BB and 744.21(e).
Noordwijk ZH, Netherlands.
(See alternate address
under China and France).
* * * * * *
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* * * * * * *
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RUSSIA.................
Dexias Industrial Products For all items Policy of denial 88 FR [INSERT FR
and Trade Limited Company, subject to the for all items PAGE NUMBER AND
a.k.a., the following five EAR. (See Sec. subject to the 2/27/2023].
aliases: Sec. EAR apart from
--Dexias; 734.9(g),\3\ food and medicine
--Dexias Endil strivel; 744.21(b), and designated as
--Dexias IPTLC; 746.8(a)(3) of EAR99, which will
--Mainbox LLC; and the EAR). be reviewed on a
--Orunler ve Ticaret Limited case-by-case
Sirketi. basis. See Sec.
Apartment 261, Building 3, Sec. 746.8(b)
Ryabinovaya Street, Moscow, and 744.21(e).
Russia.
* * * * * *
Innovation and Technologies For all items Policy of denial 88 FR [INSERT FR
LLC, a.k.a., the following subject to the for all items PAGE NUMBER AND
two aliases: EAR. (See Sec. subject to the 2/27/2023].
--Intekh; and Sec. EAR apart from
--INTEKH OOO. 734.9(g),\3\ food and medicine
D. 83 K. 3 OFIS 516, Ul. 744.21(b), and designated as
Savushkina, St. Petersburg 746.8(a)(3) of EAR99, which will
197374 Russia; and Mira the EAR). be reviewed on a
prospect, 2-7 601901 case-by-case
Kovrov, Russia. basis. See Sec.
Sec. 746.8(b)
and 744.21(e).
* * * * * *
Promtekhkomplekt JSC, For all items Policy of denial 88 FR [INSERT FR
a.k.a., the following four subject to the for all items PAGE NUMBER AND
aliases: EAR. (See Sec. subject to the 2/27/2023].
--AO TipoMTeXKOMirneKT; Sec. EAR apart from
--Promtech Komplekt; 734.9(g),\3\ food and medicine
--Promtekhkomplekt; and 746.8(a)(3), and designated as
--Promtekhkomplekt Joint 744.21(b) of the EAR99, which will
Stock Company. EAR). be reviewed on a
MKAD Greenwood Business Park case-by-case
building 9 floor 3, pos. basis. See Sec.
Putilko o, 69 km., Moscow Sec. 746.8(b)
region, 143441, Russia; and and 744.21(e).
6/1 Griboyedov Street,
OF.23, Tyumen, Tyumen
Oblast, Russia.

* * * * * * *
----------------------------------------------------------------------------------------------------------------

[[Page 12175]]

* * * * *

Thea D. Rozman Kendler,
Assistant Secretary for Export Administration.
[FR Doc. 2023-03929 Filed 2-24-23; 8:45 am]
BILLING CODE 3510-JT-P

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