Rule2023-25684
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
November 21, 2023
Effective
November 17, 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 four entities under nine entries to the Entity List. These entities are listed under the destinations of Costa Rica (1), Ecuador (1), India (1) Panama (2), Spain (1), Russia (1), and Venezuela (2). 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. Some entities are added under multiple entries, accounting for the difference in the totals.
Full Text
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<title>Federal Register, Volume 88 Issue 223 (Tuesday, November 21, 2023)</title>
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[Federal Register Volume 88, Number 223 (Tuesday, November 21, 2023)]
[Rules and Regulations]
[Pages 80955-80958]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-25684]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Part 744
[Docket No. 231115-0270]
RIN 0694-AJ45
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 four entities
under nine entries to the Entity List. These entities are listed under
the destinations of Costa Rica (1), Ecuador (1), India (1) Panama (2),
Spain (1), Russia (1), and Venezuela (2). 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. Some
entities are added under multiple entries, accounting for the
difference in the totals.
DATES: This rule is effective November 17, 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#abeef9e8ebc9c2d885cfc4c885ccc4dd"><span class="__cf_email__" data-cfemail="0a4f58494a686379246e6569246d657c">[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
[[Page 80956]]
``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
Additions to the Entity List
The ERC determined to add Aerofalcon S.L., under the destination of
Spain; Novax Group S.A., under the destinations of Costa Rica, Ecuador,
Panama, Venezuela, and Russia; and Zero Waste Global SA, under the
destinations of Panama and Venezuela, to the Entity List. These
entities are added to the Entity List pursuant to Sec. 744.11 of the
EAR for engaging in activities contrary to U.S. national security and
foreign policy interests. Specifically, these entities were used by
their principals to circumvent U.S. sanctions, supplying the
representatives of Nicol[aacute]s Maduro in Venezuela with U.S. origin
aircraft parts. This circumvention was conducted by, among other
efforts, concealing the true end user and end destination of the
exports using misrepresentations and fraudulent documents, including
the filing of false Electronic Export Information. These entities will
be added with a license requirement for all items subject to the EAR
and a license review policy of presumption of denial.
The ERC determined to add Si2 Microsystems Private Limited, under
the destination of India, to the Entity List. This entity is added to
the Entity List for providing support to Russia's military and/or
defense industrial base. Specifically, this entity supplied Russian
consignees connected to the Russian defense sector with U.S.-origin
integrated circuits after March 1, 2023. These integrated circuits are
classified under Harmonized Tariff System (HTS)-6 codes 854231, 854232,
854233, and/or 854239. These HTS-6 codes are identified under
supplement no. 4 to part 746 (Russian and Belarusian Industry Sector
Sanctions Pursuant to Sec. 746.5(a)(1)(ii)). All U.S.-origin items
classified under these HTS-6 codes have been controlled for export and
reexport and transfer within Russia since September 15, 2022. Such
U.S.-origin items require a license under Sec. 746.5(a)(1)(ii) of the
EAR when destined to Russia or Belarus.\1\
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\1\ On February 24, 2023 (88 FR 12150), BIS also expanded
controls to include certain foreign-made items classified under the
same HTS-6 codes destined to Russia, due to their demonstrated use
in weapons found on the battlefield in Ukraine. Such foreign-made
items are subject to the EAR and the license requirements of Sec.
746.8(a)(2) when a reexport, export from abroad, or transfer (in-
country) meets the destination scope of the Russia/Belarus/
Temporarily occupied Crimea region of Ukraine FDP (Foreign Direct
Product) rule described in Sec. 734.9(f) of the EAR.
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Therefore, the documented shipments by this entity to Russia of
such U.S.-origin items are contrary to U.S. national security and
foreign policy interests under Sec. 744.11(b) of the EAR. This entity
will be added with a license requirement for all items subject to the
EAR and a license review policy of denial.
For the reasons described above, this final rule adds the following
four entities, including aliases where appropriate, to the Entity List:
Costa Rica
<bullet> Novax Group S.A.
Ecuador
<bullet> Novax Group S.A.
India
<bullet> Si2 Microsystems Private Limited.
Panama
<bullet> Novax Group S.A.; and
<bullet> Zero Waste Global SA.
Spain
<bullet> Aerofalcon S.L.
Russia
<bullet> Novax Group S.A.
Venezuela
<bullet> Novax Group S.A.; and
<bullet> Zero Waste Global SA.
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 November 17, 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 December 18, 2023. Any such items not actually exported,
reexported or transferred (in-country) before midnight, on December 18,
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 (OMB) Control Number. This regulation involves an
information collection approved by OMB under control number 0694-0088,
Simplified Network Application Processing System. BIS does not
anticipate a change to the burden hours associated with this collection
as a result of this rule. Information regarding the collection,
including all supporting materials, can be accessed at <a href="https://www.reginfo.gov/public/do/PRAMain">https://www.reginfo.gov/public/do/PRAMain</a>.
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
[[Page 80957]]
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--END-USE AND END-USER CONTROLS
0
1. The authority citation for part 744 is revised 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 November 8, 2022, 87 FR 68015, 3 CFR, 2022 Comp., p. 563; Notice
of September 7, 2023, 88 FR 62439 (September 11, 2023).
0
2. Supplement no. 4 is amended:
0
a. Under COSTA RICA, by adding, in alphabetical order, an entry for
``Novax Group S.A.;''
0
b. Under ECUADOR, by adding, in alphabetical order, an entry for
``Novax Group S.A.;''
0
c. Under INDIA, by adding, in alphabetical order, an entry for ``Si2
Microsystems Private Limited.;''
0
d. Under PANAMA, by adding, in alphabetical order, entries for ``Novax
Group S.A.;'' and ``Zero Waste Global SA;''
0
e. Under SPAIN, by adding, in alphabetical order, an entry for
``Aerofalcon S.L.;''
0
f. Under RUSSIA, by adding in alphabetical order, an entry for ``Novax
Group S.A.;'' and
0
g. Under VENEZUELA, by adding in alphabetical order, entries for
``Novax Group S.A.,'' and ``Zero Waste Global SA.'' to read as follows:
Supplement No. 4 to Part 744--Entity List
* * * * *
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License, License review Federal Register
Country Entity requirement policy citation
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* * * * * * *
COSTA RICA............. * * * * * *
Novax Group S.A., Centro For all items Presumption of 88 FR [INSERT FR
Corporative Lindora, subject to the denial. PAGE NUMBER AND
Oficina Nro. 2-10, Pozos de EAR. (See Sec. 11/21/2023].
Santa Ana, San Jose, 10903, 744.11 of the
Costa Rica. (See alternate EAR).
addresses under Ecuador,
Panama, Russia, and
Venezuela).
* * * * * *
ECUADOR................ * * * * * *
Novax Group S.A., Avenida For all items Presumption of 88 FR [INSERT FR
Joaquin Orrantia y Juan subject to the denial. PAGE NUMBER AND
Tanca Marengo, Torres del EAR. (See Sec. 11/21/2023].
Mall del Sol Piso 4, Torre 744.11 of the
B, Guayaquil, Ecuador. (See EAR).
alternate addresses under
Costa Rica, Panama, Russia,
and Venezuela).
* * * * * *
INDIA.................. * * * * * *
Si2 Microsystems Private For all items Policy of denial.. 88 FR [INSERT FR
Limited, 84, Deep Towers, subject to the PAGE NUMBER AND
EPIP Industrial Area, EAR (See Sec. 11/21/2023].
Whitefield, Bangalore, 744.11 of the
Karnataka, 560066, India; EAR).
and #52/A, 1st Cross, 3rd
Main KIADB Industrial Area,
Hoskote, Bangalore,
Karnataka, 562114, India;
and 3796, 7th Main, Hal II
Stage, Bangalore,
Karnataka, 560008, India;
and 493/3 Bramhalingeshwara
Complex, Airport Road,
Bangalore, Karnataka,
560008, India; and 177/2
Bannerghatta Road, Begur
Hobli Bilekahalli
Industrial Area, Bangalore,
Karnataka, 560076, India.
* * * * * *
PANAMA................. * * * * * *
Novax Group S.A., Avenida For all items Presumption of 88 FR [INSERT FR
Aquilino de la Guardia con subject to the denial. PAGE NUMBER AND
Calle 47, Edificio Ocean EAR. (See Sec. 11/21/2023].
Plaza, Piso 16, Oficina 8, 744.11 of the
Ciudad de Panama, Panama. EAR).
(See alternate addresses
under Costa Rica, Ecuador,
Russia, and Venezuela).
* * * * * *
Zero Waste Global S.A., 58 For all items Presumption of 88 FR [INSERT FR
Street Obarrios Office One subject to the denial. PAGE NUMBER AND
Building, Suite 1302, EAR. (See Sec. 11/21/2023].
Panama City, Panama. (See 744.11 of the
alternate address under EAR).
Venezuela).
* * * * * *
RUSSIA................. * * * * * *
Novax Group S.A., For all items Presumption of 88 FR [INSERT FR
Koptevskaya Ulitsa 67, subject to the denial. PAGE NUMBER AND
Moscow, 125239, Russia. EAR. (See Sec. 11/21/2023].
(See alternate addresses 744.11 of the
under Costa Rica, Ecuador, EAR).
Panama, and Venezuela).
* * * * * *
SPAIN.................. * * * * * *
Aerofalcon S.L., Calle For all items Presumption of 88 FR [INSERT FR
[Aacute]ngel Cavero 28, subject to the denial. PAGE NUMBER AND
Madrid, 28043, Spain. EAR. (See Sec. 11/21/2023].
744.11 of the
EAR).
* * * * * *
VENEZUELA.............. * * * * * *
[[Page 80958]]
Novax Group S.A., Caracas, For all items Presumption of 88 FR [INSERT FR
Venezuela. (See alternate subject to the denial. PAGE NUMBER AND
addresses under Costa Rica, EAR. (See Sec. 11/21/2023].
Ecuador, Panama, and 744.11 of the
Russia). EAR).
Zero Waste Global S.A., For all items Presumption of 88 FR [INSERT FR
Between Avenida Beethoven subject to the denial. PAGE NUMBER AND
and Avenida Principal de EAR. (See Sec. 11/21/2023].
Bello Monte, Edificio El 744.11 of the
Cigarral PH-A, Caracas, CP EAR).
1050, Venezuela. (See
alternate address under
Panama).
* * * * * *
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* * * * *
Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 2023-25684 Filed 11-17-23; 8:45 am]
BILLING CODE 3510-33-P
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