Rule2024-23638
Revisions to 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
October 16, 2024
Effective
October 16, 2024
Issuing agencies
Commerce DepartmentIndustry and Security Bureau
Abstract
The Bureau of Industry and Security (BIS) is amending the Export Administration Regulations (EAR) by adding eight persons to the Unverified List (UVL). Of the eight persons being added, three are under the destination of China, People's Republic of (China); two are under the destination of Germany; one is under the destination of Pakistan; and two are under the destination of T[uuml]rkiye. BIS is also amending the EAR by removing two persons from the UVL. Of the two persons being removed, one is under the destination of Saudi Arabia, and the other is under the destination of China.
Full Text
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<title>Federal Register, Volume 89 Issue 200 (Wednesday, October 16, 2024)</title>
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[Federal Register Volume 89, Number 200 (Wednesday, October 16, 2024)]
[Rules and Regulations]
[Pages 83428-83431]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-23638]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Part 744
[Docket No. 241004-0262]
RIN 0694-AJ91
Revisions to 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 adding eight persons to the
Unverified List (UVL). Of the eight persons being added, three are
under the destination of China, People's Republic of (China); two are
under the destination of Germany; one is under the destination of
Pakistan; and two are under the destination of T[uuml]rkiye. BIS is
also amending the EAR by removing two persons from the UVL. Of the two
persons being removed, one is under the destination of Saudi Arabia,
and the other is under the destination of China.
DATES: This rule is effective October 16, 2024.
FOR FURTHER INFORMATION CONTACT: Deniz Muslu, Director, Office of
Enforcement Analysis, Phone: (202) 482-4255, Email:
<a href="/cdn-cgi/l/email-protection#9acfccd6e8ffebefffe9eedaf8f3e9b4fef5f9b4fdf5ec"><span class="__cf_email__" data-cfemail="782d2e340a1d090d1d0b0c381a110b561c171b561f170e">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
Background
The Unverified List (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 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 (e.g.,
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 a
host government that fails to schedule and facilitate the completion of
an end-use check (e.g., a 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
[[Page 83429]]
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 raises concerns about the suitability of such
persons as participants in future exports, reexports, or transfers (in-
country) of items subject to the EAR; an inability to confirm bona
fides 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 (supplement no. 4 to part 744 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 a
transaction who are listed on the UVL before proceeding with exports,
reexports, and transfers (in-country) to such persons, when the items
to be exported, reexported or transferred (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.
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. As provided in Sec. 744.15(c)(2) of
the EAR, BIS will remove a person from the UVL when BIS is able to
verify the bona fides of the listed person.
Additions to the UVL
This rule adds eight persons to the UVL by amending supplement no.
6 to part 744 of the EAR to include their names and addresses. BIS is
adding these persons pursuant to Sec. 744.15(c) of the EAR. This final
rule implements the decision to add the following eight persons located
in the following destinations to the UVL: Hengye Technology Co., Ltd.;
Skytop Electronics Ltd.; and YXS Technology Co., Ltd., under the
destination of China; Arabian Aviation Trade Group and Tiptrans
Limited, under the destination of Germany; Marshal Traders, under the
destination of Pakistan; and Pegasus Technic Services and Vast
Polymers, Ambalaj Sanayi Ve Ticaret Limited Sirketi, under the
destination of T[uuml]rkiye.
Removals From the UVL
This rule removes two persons from the UVL because BIS was able to
verify their bona fides. This rule removes the following two persons
located in the following destinations from the UVL: Shengwei Technology
Co., Ltd., under the destination of China; and Al Gihaz Co., Ltd. for
Contracting and Trading, under the destination of Saudi Arabia. BIS is
removing these persons pursuant to Sec. 744.15(c)(2) 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. 4801-
4852. ECRA provides the legal basis for BIS's principal authorities and
serves as the authority under which BIS issues this final rule. In
particular, section 1753 of ECRA (50 U.S.C. 4812) authorizes the
regulation of exports, reexports, and transfers (in-country) of items
subject to U.S. jurisdiction. Further, section 1754(a)(1)-(16) of ECRA
(50 U.S.C. 4813(a)(1)-(16)) authorizes, inter alia, requiring measures
for compliance with the export controls established under ECRA;
requiring and obtaining such information from U.S. persons and foreign
persons as is necessary to carry out ECRA; apprising the public of
changes in policy, regulations, and procedures; and any other action
necessary to carry out ECRA that is not otherwise prohibited by law.
Pursuant to section 1762(a) of ECRA (50 U.S.C. 4821(a)), these changes
can be imposed in a final rule without prior notice and comment.
Savings Clause
Shipments (1) that are removed from license exception eligibility
or that are now subject to requirements in Sec. 744.15 of the EAR as a
result of this regulatory action; (2) that were eligible for export,
reexport, or transfer (in-country) without a license before this
regulatory action; and (3) that were on dock for loading, on lighter,
laden aboard an exporting carrier, or enroute aboard a carrier to a
port of export, on October 16, 2024, pursuant to actual orders, may
proceed to that UVL listed person under the previous license exception
eligibility or without a license and pursuant to the export clearance
requirements set forth in part 758 of the EAR that applied prior to
this person being listed on the UVL, so long as the items have been
exported from the United States, reexported or transferred (in-country)
before November 15, 2024. Any such items not actually exported,
reexported or transferred (in-country) before midnight on November 15,
2024 are subject to the requirements in Sec. 744.15 of the EAR in
accordance with this rule.
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 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
[[Page 83430]]
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--CONTROL POLICY: END-USER AND END-USE BASED
0
1. The authority citation for 15 CFR 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 September 18, 2024, 89 FR 77011 (September 23, 2024).
0
2. Supplement no. 6 to part 744 is amended:
0
a. Under CHINA, PEOPLE'S REPUBLIC OF, by:
0
i. Adding the entry, in alphabetical order, for ``Hengye Technology
Co., Ltd.;''
0
ii. Removing the entry for ``Shengwei Technology Co., Ltd.;'' and
0
iii. Adding the entries, in alphabetical order, for ``Skytop
Electronics Ltd.'' and ``YXS Technology Co., Ltd.;''
0
b. Under GERMANY, by adding entries, in alphabetical order, for
``Arabian Aviation Trade Group'' and ``Tiptrans Limited;''
0
c. Under PAKISTAN, by adding an entry, in alphabetical order, for
``Marshal Traders;''
0
d. Removing the entry for SAUDI ARABIA; and
0
e. Under T[Uuml]RKIYE, by adding an entry, in alphabetical order, for
``Pegasus Technic Services'' and ``Vast Polymers, Ambalaj Sanayi Ve
Ticaret Limited Sirketi.''
The additions read as follows:
Supplement No. 6 to Part 744--Unverified List
* * * * *
------------------------------------------------------------------------
Listed person and Federal Register
Country address citation
------------------------------------------------------------------------
* * * * * * *
CHINA, PEOPLES REPUBLIC * * * * * *
OF.
Hengye Technology Co., 89 FR [INSERT
Ltd., 1602 Zhonghang FEDERAL REGISTER
Road, Dingcheng PAGE NUMBER],
International Building, October 16, 2024.
Futian District,
Shenzhen, Guangdong,
China.
* * * * * *
Skytop Electronics Ltd., 89 FR [INSERT
Room 619, Park Fook FEDERAL REGISTER
Industrial Building, PAGE NUMBER],
615-617 Tai Nan West October 16, 2024.
Street, Cheung Sha Wan,
Kowloon, Hong Kong; and
7/F, MW Tower, 111
Bonham Strand, Sheung
Wan, Hong Kong.
* * * * * *
YXS Technology Co., 89 FR [INSERT
Ltd., Room 608, 6/F, FEDERAL REGISTER
West Tower, Fiyta PAGE NUMBER],
Building, Huaqian North October 16, 2024.
Street, Futian
District, Shenzhen,
Guangdong, China.
* * * * * *
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* * * * * * *
GERMANY.................. Arabian Aviation Trade 89 FR [INSERT
Group, a.k.a. AAT, FEDERAL REGISTER
Wassmanstrasse 16, PAGE NUMBER],
D30459 Hannover, October 16, 2024.
Germany.
* * * * * *
Tiptrans Limited, 89 FR [INSERT
Hauptstrasse 22, D02727 FEDERAL REGISTER
Neugersdorg, Germany. PAGE NUMBER],
October 16, 2024.
* * * * * *
------------------------------------------------------------------------
* * * * * * *
PAKISTAN................. * * * * * *
Marshal Traders, Office- 89 FR [INSERT
5, 41st Street, Block-H FEDERAL REGISTER
Soan Garden, Islamabad, PAGE NUMBER],
Pakistan; and Magnum October 16, 2024.
Arcade, Apt #207, 2nd
Floor North Strip
Federation Markaz,
Islamabad, Pakistan.
* * * * * *
------------------------------------------------------------------------
T[Uuml]RKIYE............. * * * * * *
Pegasus Technic 89 FR [INSERT
Services, a.k.a. FEDERAL REGISTER
Pegasus Teknik Servis PAGE NUMBER],
and Air Technic October 16, 2024.
Services, OBA Mah.
Karakuslar Sk. Berfin
Sitesi, B Blok No: 2B
No: 2 Alanya, Antalya,
T[uuml]rkiye.
* * * * * *
[[Page 83431]]
Vast Polymers, Ambalaj 89 FR [INSERT
Sanayi Ve Ticaret FEDERAL REGISTER
Limited Sirketi, a.k.a. PAGE NUMBER],
Novaroll, Atakoy 7-8-9- October 16, 2024.
10, Kisim Mah.
Cobancesme, E-5 Yan Yol
Cad. A No: 22/1 Ic
Kapi: 164 Bakirkoy,
Istanbul, T[uuml]rkiye.
* * * * * * *
------------------------------------------------------------------------
Matthew S. Borman,
Principal Deputy Assistant Secretary for Strategic Trade and Technology
Security.
[FR Doc. 2024-23638 Filed 10-15-24; 8:45 am]
BILLING CODE 3510-33-P
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