Rule2024-01253
Removals From the Unverified 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
January 23, 2024
Effective
January 19, 2024
Issuing agencies
Commerce DepartmentIndustry and Security Bureau
Abstract
The Bureau of Industry and Security (BIS) is amending the Export Administration Regulations (EAR) by removing three persons, including one under the destination of Canada, one under the destination of People's Republic of China (China), and one under the destination of the United Arab Emirates, from the Unverified List (UVL) because BIS was able to verify their bona fides.
Full Text
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<title>Federal Register, Volume 89 Issue 15 (Tuesday, January 23, 2024)</title>
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[Federal Register Volume 89, Number 15 (Tuesday, January 23, 2024)]
[Rules and Regulations]
[Pages 4187-4188]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-01253]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Part 744
[Docket No. 240117-0016]
RIN 0694-AJ52
Removals From the Unverified 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 three persons,
including one under the destination of Canada, one under the
destination of People's Republic of China (China), and one under the
destination of the United Arab Emirates, from the Unverified List (UVL)
because BIS was able to verify their bona fides.
DATES: This rule is effective on January 19, 2024.
FOR FURTHER INFORMATION CONTACT: Kevin J. Kurland, Deputy Assistant
Secretary for Export Enforcement, Phone: (202) 482-4255 or by email at
<a href="/cdn-cgi/l/email-protection#d184879d83b4a0a4b4a2a591b3b8a2ffb5beb2ffb6bea7"><span class="__cf_email__" data-cfemail="b5e0e3f9e7d0c4c0d0c6c1f5d7dcc69bd1dad69bd2dac3">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
Background
The UVL, found in supplement no. 6 to part 744 of the EAR (15 CFR
parts 730-774), 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 an end-
use check. 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.
As set forth in the EAR, there are any number of reasons why these
checks cannot be completed to the satisfaction of the U.S. Government.
Section 744.15(c)(1) of the EAR provides illustrative examples of those
circumstances, including reasons unrelated to the cooperation of the
foreign party subject to the end-use check. Such examples include: (i)
During the conduct of an end-use check, the subject of the check is
unable to demonstrate the disposition of items subject to the EAR; (ii)
The existence or authenticity of the subject of an end-use check cannot
be verified (e.g., the subject of the check cannot be located or
contacted); (iii) Lack of cooperation by the host government authority
prevents an end-use check from being conducted.
BIS's inability to confirm the bona fides of foreign persons
subject to end-use checks raises concerns about the suitability of such
persons as participants in future exports, reexports, or transfers (in-
country) of items subject to the EAR; it 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, reexporters, 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 any
party to the transaction, as described in Sec. 748.5(d) through (f),
is listed on the UVL.
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 a 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 three persons from the UVL because BIS was
able to verify their bona fides. This rule
[[Page 4188]]
removes ``Skymount Drones'' under the destination of Canada, ``Plexus
(Xiamen) Co., Ltd.,'' under the destination of China, and ``Delma
Industrial Supply & Marine Services'' under the destination of the
United Arab Emirates. BIS is removing these three persons pursuant to
Sec. 744.15(c)(2) of the EAR.
Rulemaking Requirements
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 has been deemed not significant for
purposes of 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 UVL additions contain collections of information approved by
OMB under the following control numbers:
<bullet> OMB Control Number 0694-0088--Simple Network Application
Process and Multipurpose Application Form
<bullet> OMB Control Number 0694-0122--Miscellaneous Licensing
Responsibilities and Enforcement
<bullet> OMB Control Number 0694-0134--Entity List and Unverified List
Requests,
<bullet> OMB Control Number 0694-0137--License Exemptions and
Exclusions.
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. Additional information regarding these
collections of information--including all background materials--can be
found at <a href="https://www.reginfo.gov/public/do/PRAMain">https://www.reginfo.gov/public/do/PRAMain</a> by using the search
function to enter either the title of the collection or the OMB Control
Number.
Administrative Procedure Act and Regulatory Flexibility Act
Requirements
Pursuant to Section 1762 of ECRA (50 U.S.C. 4821), 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--END-USE AND END-USER CONTROLS
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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 November 8, 2022, 87 FR 68015, 3 CFR, 2022 Comp., p. 563; Notice
of September 7, 2023, 88 FR 62439 (September 11, 2023).
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2. Supplement No. 6 to Part 744 is amended:
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a. Under CANADA by removing the entry for ``Skymount Drones,''
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b. Under CHINA, PEOPLE'S REPUBLIC OF, by removing the entry for
``Plexus (Xiamen) Co., Ltd.,'' and
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c. Under UNITED ARAB EMIRATES by removing the entry for ``Delma
Industrial Supply & Marine Services.''
Thea D. Rozman Kendler,
Assistant Secretary for Export Administration.
[FR Doc. 2024-01253 Filed 1-19-24; 8:45 am]
BILLING CODE 3510-33-P
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