83 FR 3577-3583: Addition of Certain Entities; Removal of Certain Entities; and Revisions of Entries on the Entity List
* AGENCY: Bureau of Industry and Security, Commerce.
* ACTION: Final rule.
* SUMMARY: This rule amends the Export Administration Regulations (EAR) by adding twenty-one persons under twenty-three entries to the Entity List. The twenty-one persons who are added to the Entity List 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 twenty-one persons will be listed on the Entity List under the destinations of Bulgaria, China, Kazakhstan, Russia, Syria, and the United Arab Emirates (U.A.E.). In addition, this rule amends the EAR by removing three entities from the Entity List. This rule removes one entity listed under the destination of Taiwan and two entities listed under the destination of the U.A.E. from the Entity List. All three of the removals are the results of requests for removal received by BIS pursuant to the section of the EAR used for requesting removal or modification of an Entity List entry and a review of information provided in the removal requests. Finally, this final rule modifies two existing entries on the Entity List. This rule modifies one entry under China and one entry under Pakistan to provide additional or modified addresses and/or names for these persons.
* DATES: This rule is effective January 26, 2018. …
* SUPPLEMENTARY INFORMATION: … The Entity List (supplement No. 4 to part 744) identifies entities and other persons reasonably believed to be involved, or to pose a significant risk of being or becoming involved, in activities contrary to the national security or foreign policy interests of the United States. The EAR imposes additional license requirements on, and limits the availability of most license exceptions for, exports, reexports, and transfers (in-country) to those listed. The “license review policy” for each listed entity or other person 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 Federal Register document adding entities or other persons to the Entity List. BIS places entities and other persons on the Entity List pursuant to sections of 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 all decisions to remove or modify an entry by unanimous vote.
Additions to the Entity List
This rule implements the decision of the ERC to add twenty-one persons under twenty-three entries to the Entity List. These twenty-one persons are being added on the basis of Sec. 744.11 (License requirements that apply to entities acting contrary to the national security or foreign policy interests of the United States) of the EAR. The twenty-three entries added to the Entity List consist of four entities located in Bulgaria, one entity located in China, two entities located in Kazakhstan, two entities located in Russia, two entities located in Syria, and twelve entities located in the U.A.E. There are twenty-three entries for the twenty-one persons because two of the persons are listed in multiple locations, resulting in two additional entries.
The ERC reviewed Sec. 744.11(b) (Criteria for revising the Entity List) in making the determination to add these twenty-one persons under twenty-three entries to the Entity List. Under that paragraph, persons for whom there is reasonable cause to believe, based on specific and articulable facts, that they have been involved, are involved, or pose a significant risk of being or becoming involved in, activities that are contrary to the national security or foreign policy interests of the United States and those acting on behalf of such persons may be added to the Entity List. Paragraphs (b)(1) through (5) of Sec. 744.11 provide an illustrative list of activities that could be contrary to the national security or foreign policy interests of the United States.
The ERC determined that eleven entities, Advanced Aerospace Industries, Deira General Marketing, DGL Clearing and Forwarding LLC, Emitech Middle East FZC, Eurotech DMCC, Foremost International FZE, Jazirah Aviation Club, Modest Marketing LLC, Pearltrainer FZE, Sky Gulf Consultancy and Researches LLC, and Stealth Telecom FZC, all located in the U.A.E., be added to the Entity List for actions contrary to the national security or foreign policy interests of the United States. The ERC determined that there is reasonable cause to believe, based on specific and articulable facts, that these entities have been involved in the procurement of items for an entity on the Entity List, in circumvention of the licensing requirements set forth in Sec. 744.11 of the EAR.
The ERC determined that one entity, Chengdu Spaceon Technology Co. Ltd., located in China, be added to the Entity List for actions contrary to the national security or foreign policy interests of the United States. The ERC determined that there is reasonable cause to believe, based on specific and articulable facts, that this entity has been involved in transshipping items to a person on the Entity List in China for an unauthorized military end-use.
The ERC determined that seven entities, Adib Zeno, Ammar Almounajed, Iskren Georgiev, Lyubka Hristova, Mihaela Nenova, Rizk Ali, and Zhelyaz Andreev, located in the destinations of Bulgaria, Syria and the U.A.E., be added to the Entity List for actions contrary to the national security or foreign policy interests of the United States. The ERC determined that there is reasonable cause to believe, based on specific and articulable facts, that these entities unlawfully conspired to procure and divert controlled aircraft parts to Syrian Arab Airlines, an entity on the Department of the Treasury’s Office of Foreign Assets Control’s (OFAC) Specially-Designated Nationals list (SDN).
The ERC determined that two entities, Abtronics and Timofey
Telegin, located in the destinations of Russia and Kazakhstan, be added to the Entity List on the basis of their procurement of U.S.-origin items for activities contrary to the national security or foreign policy interests of the United States. Specifically, these entities procured U.S.-origin items and transferred them to entities of the Russian military and parties on the Entity List without the necessary licenses.
Pursuant to Sec. 744.11(b) of the EAR, the ERC determined that the conduct of these twenty-one persons raises sufficient concern that prior review of exports, reexports or transfers (in-country) of all items subject to the EAR involving these persons, and the possible imposition of license conditions or license denials on shipments to the persons, will enhance BIS’s ability to prevent violations of the EAR.
For the twenty-one persons added to the Entity List, BIS imposes a license requirement for all items subject to the EAR, and a license review policy of presumption of denial. The license requirements apply to any transaction in which items are to be exported, reexported, or transferred (in-country) to any of the persons or in which such persons act as purchaser, intermediate consignee, ultimate consignee, or end-user. In addition, no license exceptions are available for exports, reexports, or transfers (in-country) to the persons being added to the Entity List in this rule. The acronym “a.k.a.” (also known as) is used in entries on the Entity List to identify aliases and help exporters, reexporters and transferors to better identify persons on the Entity List.
This final rule adds the following twenty-one persons under twenty-three entries to the Entity List:
Bulgaria
(1) Iskren Georgiev, 51 Aleksandar Malinov Blvd., Sofia 1712, Bulgaria;
(2) Lyubka Hristova, 51 Aleksandar Malinov Blvd., Sofia 1712, Bulgaria;
(3) Mihaela Nenova, a.k.a., the following one alias:–Mihaela Nenova-Muhy. 51 Aleksandar Malinov Blvd., Sofia 1712, Bulgaria; and
(4) Zhelyaz Andreev, 51 Aleksandar Malinov Blvd., Sofia 1712, Bulgaria.
China
(1) Chengdu Spaceon Technology Co., Ltd., a.k.a., the following one
alias:
–Tianao Electronics Co., Ltd., No. 88 Xinye Road, West High Tech Zone, Chengdu, China; and Spaceon Building, No. 1 Wulidun Road, Chadianzi, Chengdu, China; and Tianao Building, No. 1 Wulidun Road, Chadianzi, Chengdu, China.
Kazakhstan
(1) Abtronics, 21 Solodovnikova Street, Almaty 50046, Kazakhstan (See alternate address under Russia); and
(2) Timofey Telegin, 21 Solodovnikova Street, Almaty 50046, Kazakhstan (See alternate address under Russia).
Russia
(1) Abtronics, 18, bld. 2, Frontovyh Brigad Street, Yekaterinburg 620017, Russia; and 15 A Kulakova Prospect, Office 307, Stavropol 355044, Russia; and 12/11 Bld 12, 1-st Bukhvostova Street, Moscow 107076, Russia (See alternate address under Kazakhstan); and
(2) Timofey Telegin, 18, bld. 2, Frontovyh Brigad Street, Yekaterinburg 620017, Russia; and 15 A Kulakova Prospect, Office 307, Stavropol 355044, Russia; and 12/11 Bld 12, 1-st Bukhvostova Street, Moscow 107076, Russia (See alternate address under Kazakhstan).
Syria
(1) Adib Zeno, Damascus International Airport, Damascus Airport Motorway, Damascus, Syria; and
(2) Rizk Ali, Damascus International Airport, Damascus Airport Motorway, Damascus, Syria.
United Arab Emirates
(1) Advanced Aerospace Industries, Industrial City of Abu Dhabi, Abu Dhabi, U.A.E.;
(2) Ammar Almounajed, a.k.a., the following one alias:
–Ammar al-Mounjad. Warehouse No. 1017, Old Agent Bldg., Dubai Air Cargo Village, Dubai, U.A.E.;
(3) Deira General Marketing, P.O. Box 26412, Abu Dhabi, U.A.E.;
(4) DGL Clearing and Forwarding LLC, P.O. Box 94353, Abu Dhabi, U.A.E.;
(5) Emitech Middle East FZC, P.O. Box 513364, SAIF Zone, Sharjah, U.A.E.;
(6) Eurotech DMCC, Office No. 3404, HDS Tower, Sheikh Zayed Road, Dubai, U.A.E.; and P.O. Box 643650, Jumeirah Lakes Towers, Dubai U.A.E.;
(7) Foremost International FZE, P.O. Box 123833, Q4-163, SAIF Zone, Sharjah, U.A.E.;
(8) Jazirah Aviation Club, Al Jazirah, Al Hamra, Ras al Khaimah, U.A.E.;
(9) Modest Marketing LLC, P.O. Box 51436, Dubai, U.A.E.;
(10) Pearltrainer FZE, P.O. Box 32707, Sharjah, U.A.E.;
(11) Sky Gulf Consultancy and Researches LLC, P.O. Box 25298, Abu Dhabi, U.A.E.; and
(12) Stealth Telecom FZC, P.O. Box 7755, Sharjah, U.A.E.
Removals From the Entity List
This rule implements a decision of the ERC to remove the following three entities from the Entity List on the basis of removal requests received by BIS, as follows: Hosoda Taiwan Limited, located in Taiwan; and Euro Vision Technology LLC and Noun Nasreddine, both located in the U.A.E. The entry for Hosoda Taiwan Limited was added to the Entity List on April 23, 2015 (see 80 FR 22640). The entries for Euro Vision Technology LLC and Noun Nasreddine were added to the Entity List on February 23, 2016 (see 81 FR 8829).
The ERC decided to remove these three entities based on information received by BIS pursuant to Sec. 744.16 of the EAR and further review conducted by the ERC.
This final rule implements the decision to remove the following one entity located in Taiwan, and two entities located in the U.A.E. from the Entity List:
Taiwan
(1) Hosoda Taiwan Limited, 3F-1 No. 52, SEC 2, Chung Shan N. Road, Taipei 104 Taiwan.
United Arab Emirates
(1) Euro Vision Techonology LLC, #701 Damas Tower, 702 Al Maktoum St, Dubai, U.A.E.; and 701 Attar Tower, Maktoum St, Dubai, U.A.E.; and City Tower, Al Maktoum St. Office No. 701, Dubai U.A.E.; and P.O. Box 40595, Dubai, U.A.E.; and Warehouse No. 8, Plot No. 238, Rashidiya, Dubai, U.A.E.; and
(2) Noun Nasreddine, a.k.a., the following one alias:
–N.A. Nasreddine. #701 Damas Tower, 702 Al Maktoum St, Dubai, U.A.E.; and 701 Attar Tower, Maktoum St, Dubai, U.A.E.; and City Tower, Al Maktoum St. Office No. 701, Dubai U.A.E.; and P.O. Box 40595, Dubai, U.A.E.; and Warehouse No. 8, Plot No. 238, Rashidiya, Dubai, U.A.E.
The removal of the entities referenced above, which was approved by the ERC, eliminates the existing license requirements in supplement No. 4 to part 744 for exports, reexports and transfers (in-country) to these entities. However, the removal of these entities from the Entity List does not relieve persons of other obligations under part 744 of the EAR or under other parts of the EAR. Neither the removal of an entity from the Entity List nor the removal of Entity List-based license requirements relieves persons of their obligations under General Prohibition 5 in Sec. 736.2(b)(5) of the EAR which provides that, “you may not, without a license, knowingly export or reexport any item subject to the EAR to an end-user or end-use that is prohibited by part 744 of the EAR.” Additionally, this removal does not relieve persons of their obligation to apply for export, reexport or in-country transfer licenses required by other provisions of the EAR. BIS strongly urges the use of supplement No. 3 to part 732 of the EAR, “BIS’s `Know Your Customer’ Guidance and Red Flags,” when persons are involved in transactions that are subject to the EAR.
Modifications to the Entity List
This final rule implements decisions of the ERC to modify two existing entries on the Entity List. Under the destination of China, the ERC made a determination to revise one entry by removing one address and adding one additional address to the entry for Beijing Aeronautical Manufacturing Technology Research Institute. Under the destination of Pakistan, the ERC made a determination to revise one entry by adding an alias and two additional addresses to the entry for Advanced Engineering Research Organization (AERO).
This final rule makes the following modifications to two entries on the Entity List:
China
(1) Beijing Aeronautical Manufacturing Technology Research
Institute, a.k.a., the following two aliases:
–BAMTRI; and
–Aviation Industry Corporation of China’s (AVIC) Institute 625.
No. 1 East Military Village, North Baliqiao Station, Chaoyang District, Beijing, China; and
No. 1 Dongjunzhuang, Baliqiaobei, Chaoyang District, Beijing, China.
Pakistan
(1) Advanced Engineering Research Organization (AERO), a.k.a., the following one alias:
–Integrated Solutions. Lub Thatoo Hazara Road, The Taxila District, Rawalpindi, Pakistan; and 53/2 26th Street, near Badara Commercial Area Phase 5 Extension, DHA Karachi, Pakistan; and House No. 334, Street No. 102, Sector I-8/4, near Pakeeza Market, Islamabad, Pakistan. …
Dated: January 12, 2018.
Richard E. Ashooh, Assistant Secretary for Export Administration.