[Federal Register Volume 72, Number 110 (Friday, June 8, 2007)]
[Rules and Regulations]
[Pages 31716-31719]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-11126]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 736

[Docket No. 070523152-7153-01]
RIN 0694-AD99


Amendment to General Order No. 3: Expansion of the General Order 
and Addition of Certain Persons

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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SUMMARY: The Bureau of Industry and Security is revising the Export 
Administration Regulations (EAR) by amending a general order published 
in the Federal Register on June 5, 2006 and later amended on September 
6, 2006 to add nine additional persons. The general order imposed a 
license requirement for exports and reexports of all items subject to 
the EAR where the transaction involved Mayrow General Trading 
(``Mayrow'') or entities related, as specified in that general order. 
The order also prohibited the use of License Exceptions for exports or 
reexports of any items subject to the EAR involving such entities.
    This rule will expand the general order and add sixteen additional 
persons to it. Pursuant to the expansion, the general order will cover: 
(i) Persons regarding whom the U.S. Government possesses information of 
affiliation or relationship to Mayrow; and (ii) other persons regarding 
whom the U.S. Government possesses information concerning the 
acquisition or attempted acquisition of commodities capable of being 
used to construct IEDs, as well as persons who are related to or 
affiliated with such persons. The order will apply to persons 
specifically listed who fit within either of these two groups. To 
reflect this expansion, this rule will update the heading of the 
general order to use the term ``persons''.
    In total, pursuant to this expansion, this rule will add the 
following sixteen persons to the general order, listed in alphabetical 
order: Al-Faris; Ali Akbar Yahya; Amir Mohammad Zahedi; EKT 
Electronics; Encyclopedia Electronics Center; Frank Lam; GBNTT; Majid 
Seif; Mohammed Katranji; Neda Industrial Group; Nedayeh Micron 
Electronics; Sayed-Ali Hosseini; Speedy Electronics Ltd.; United 
Sources Industrial Enterprises; Vast Solution Sdn Bhd.; and Y-Sing 
Components Limited.

EFFECTIVE DATE: This rule is effective June 8, 2007. Although there is 
no formal comment period, public

[[Page 31717]]

comments on this regulation are welcome on a continuing basis.

ADDRESSES: You may submit comments, identified by RIN 0694-AD99, by any 
of the following methods:
    E-mail: [email protected]. Include ``RIN 0694-AD99'' in 
the subject line of the message.
    Fax: (202) 482-3355. Please alert the Regulatory Policy Division, 
by calling (202) 482-2440, if you are faxing comments.
    Mail or Hand Delivery/Courier: Timothy Mooney, U.S. Department of 
Commerce, Bureau of Industry and Security, Regulatory Policy Division, 
14th St. & Pennsylvania Avenue, NW., Room 2705, Washington, DC 20230, 
Attn: RIN 0694-AD99.
    Send comments regarding the collection of information associated 
with this rule, including suggestions for reducing the burden, to David 
Rostker, Office of Management and Budget (OMB), by e-mail to [email protected], or by fax to (202) 395-7285; and to the Regulatory 
Policy Division, Bureau of Industry and Security, Department of 
Commerce, P.O. Box 273, Washington, DC 20044. Comments on this 
collection of information should be submitted separately from comments 
on the final rule (i.e. RIN 0694-AD99)--all comments on the latter 
should be submitted by one of the three methods outlined above.

FOR FURTHER INFORMATION CONTACT: John Sonderman, Assistant Director for 
Operations, Office of Export Enforcement, Bureau of Industry and 
Security, Department of Commerce, P.O. Box 273, Washington, DC 20044; 
Phone: (202) 482-1208, x 3; E-mail: [email protected]; Fax: (202) 482-
0964.

SUPPLEMENTARY INFORMATION:

Background

Expansion of the General Order

    Pursuant to 15 CFR parts 736 and 744 (2006), General Order No. 3, 
which was published on June 5, 2006 and subsequently amended on 
September 6, 2006, imposed a license requirement for exports and 
reexports of all items subject to the EAR (15 CFR parts 730-774) where 
the transaction involved Mayrow or related entities.
    Prior to this rule, the general order listed persons who were 
related to Mayrow and concerning whom the U.S. Government possessed 
information regarding the acquisition or attempted acquisition by them 
of electronic components and devices (``commodities'') capable of being 
used in the construction of Improvised Explosive Devices (``IEDs''). 
These commodities have been, and may continue to be, employed in IEDs 
or other explosive devices used against Coalition Forces in Iraq and 
Afghanistan.
    In light of additional information that the U.S. Government has 
received regarding continuing activity relating to commodities that are 
capable of use in the construction of IEDs, as well as a broader 
concern relating to the risk of diversion of commodities for such a 
purpose, this rule will expand the scope of the general order.
    First, the general order will cover persons whom the U.S. 
Government, including the U.S. Department of Commerce, has reason to 
believe, based on specific and articulable facts, are affiliated with 
or related to Mayrow. Inclusion of such persons will guard against the 
risk that persons may attempt to evade the general order's bar on 
unlicensed exports or reexports to Mayrow by diverting commodities to 
Mayrow or to persons who are affiliated with or related to Mayrow. The 
general order will cover such persons by specifically listing them.
    Second, the general order will cover persons whom the U.S. 
Government, including the U.S. Department of Commerce, has reason to 
believe, based on specific and articulable facts, have acquired or 
attempted to acquire commodities that are capable of being used in the 
construction of IEDs. These commodities have been, and may continue to 
be, employed in IEDs or other explosive devices used against Coalition 
Forces in Iraq and Afghanistan. The general order will cover such 
persons by specifically listing them. To guard against the risk of 
diversion of such commodities for IED-related purposes, the order will 
also specifically list the persons who are affiliated with or related 
to such persons.
    To reflect this expansion, this rule will update the heading of the 
general order. This rule will use the term ``persons,'' as defined in 
15 CFR 772.1, rather than ``entities,'' as the term ``persons'' covers 
individuals, organizations and entities. Pursuant to this rule, the 
general order will list alphabetically all of the persons subject to 
the order. For each person, the order will indicate the date on which 
the person was added to the order. All of the persons will be listed in 
paragraph (a). All of the persons listed will be subject to the same 
license requirements and limitations on the use of license exceptions. 
License applications involving these persons will be subject to a 
general policy of denial.

Addition of Certain Persons

    Specifically, pursuant to the expansion described above, this rule 
adds sixteen additional persons, listed in alphabetical order, to 
General Order No. 3 as follows:
    Al-Faris, RAK Free Zone, P.O. Box 10559, Ras Al Khaimah, U.A.E.;
    Ali Akbar Yahya, 505 Siraj Building 17B Street, Mankhool, Dubai, 
U.A.E.;
    Amir Mohammad Zahedi, RAK Free Zone, P.O. Box 10559, Ras Al 
Khaimah, U.A.E.;
    EKT Electronics, 1st floor, Abbasieh Building, Hijaz Street, P.O. 
Box 10112, Damascus, Syria; and 1st floor, Hujij Building, Korniche 
Street, P.O. Box 817 No. 3, Beirut, Lebanon;
    Encyclopedia Electronics Center, Musalam Al-Baroudi Street, 
Halbouni, Damascus, Syria;
    Frank Lam, 1206-7, 12/F New Victory House, Hong Kong;
    GBNTT, No. 34 Mansour Street, Tehran, Iran;
    Majid Seif, 27-06 Amcorp Building, Jalan 18, Persiaran Barat 46050 
Petaling Jaya, Selangor, Malaysia;
    Mohammed Katranji, 1st floor, Abbasieh Building, Hijaz Street, P.O. 
Box 10112, Damascus, Syria; and 1st floor, Hujij Building, Korniche 
Street, P.O. Box 817 No. 3, Beirut, Lebanon;
    Neda Industrial Group, No. 10 and 12, 64th St. Jamalodin Asadabadi 
Avenue, Tehran, Iran;
    Nedayeh Micron Electronics, No. 34 Mansour St., Tehran, Iran;
    Sayed-Ali Hosseini, 201 Latifah Building, Al Maktoum St., Dubai, 
U.A.E.;
    Speedy Electronics Ltd., 1206-7, 12/F New Victory House, Hong Kong;
    United Sources Industrial Enterprises, 11/F, Excelsior Building, 
68-76 Sha Tsui Road, Hong Kong;
    Vast Solution Sdn Bhd., 27-06 Amcorp Building, Jalan 18, Persiaran 
Barat, 46050 Petaling Jaya, Selangor, Malaysia; and
    Y-Sing Components Limited, Unit 401, Harbour Ctr., Tower 2, 8 Hok 
Cheung Street, Hung Hom, Kowloon, Hong Kong.
    Under this order, a BIS license is required for the export or 
reexport of any item subject to the EAR to any of the above-named 
persons, including any transaction in which any of the above-named 
persons will act as purchaser, intermediate consignee, ultimate 
consignee, or end-user of the items. This order also prohibits the use 
of License Exceptions (see part 740 of the EAR) for exports and 
reexports of items subject to the EAR involving such persons.
    Consistent with section 6 of the Export Administration Act of 1979, 
as

[[Page 31718]]

amended (50 U.S.C. app. 2401-2420) (2000) (the ``Act''), a foreign 
policy report was submitted to Congress on June 6, 2007, notifying 
Congress of the expansion of the general order and the imposition of a 
control in the form of a licensing requirement for exports and 
reexports of all items subject to the EAR destined to the persons 
listed in the order. The report also notified Congress that sixteen 
additional persons are added to General Order No. 3 with this final 
rule.
    On June 5, 2007, BIS published a proposed rule in the Federal 
Register titled, ``Authorization to Impose License Requirements for 
Exports or Reexports to Entities Contrary to the National Security or 
Foreign Policy Interests of the United States''. RIN 0694-AD92. That 
proposed rule, among other proposed changes related to the Entity List 
(Supplement No. 4 to Part 744 of the EAR), would create a new Sec.  
744.11 to authorize BIS to add to the Entity List entities that BIS has 
reasonable cause to believe, based on specific and articulable facts, 
have been, are or pose a risk of being involved in activities that are 
contrary to the national security or foreign policy interests of the 
United States or those acting on behalf of such entities. If that rule 
is published as a final rule, it may provide a basis for adding persons 
such as those listed in this expanded General Order No. 3 to the Entity 
List. Interested parties may include references to this final rule, RIN 
0694-AD99, in their public comments submitted for RIN 0694-AD92, as 
outlined in that proposed rule under the Request for Comments section 
of the preamble.
    Since August 21, 2001, the Act has been in lapse and the President, 
through Executive Order 13222 of August 17, 2001 (3 CFR 2001 Comp. 783 
(2002)), as extended most recently by the Notice of August 3, 2006 (71 
FR 44551 (August 7, 2006)), has continued the EAR in effect under the 
International Emergency Economic Powers Act (50 U.S.C. 1701-1706 
(2000)) (``IEEPA''). BIS continues to carry out the provisions of the 
Act, as appropriate and to the extent permitted by law, pursuant to 
Executive Order 13222.

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 nor 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 the OMB under control numbers 0694-
0088, ``Multi-Purpose Application,'' which carries a burden hour 
estimate of 58 minutes to prepare and submit form BIS-748. 
Miscellaneous and recordkeeping activities account for 12 minutes per 
submission. Total burden hours associated with the Paperwork Reduction 
Act and Office and Management and Budget control number 0694-0088 are 
expected to increase slightly 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. The provisions of the Administrative Procedure Act (5 U.S.C. 
553) requiring notice of proposed rulemaking, the opportunity for 
public participation, and a delay in effective date, are inapplicable 
because this regulation involves a military or foreign affairs function 
of the United States. (See 5 U.S.C. 553(a)(1)) Further, no other law 
requires that a notice of proposed rulemaking and an opportunity for 
public comment be given for this rule. 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.

List of Subjects in 15 CFR Part 736

    Exports, foreign trade.


0
Accordingly, part 736 of the Export Administration Regulations (15 CFR 
part 736) is amended as follows:

PART 736--[AMENDED]

0
1. The authority citation for 15 CFR part 736 continues to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
22 U.S.C. 2151 (note), Pub. L. 108-175; E.O. 12938, 59 FR 59099, 3 
CFR, 1994 Comp., p. 950; E.O. 13020, 61 FR 54079, 3 CFR, 1996 Comp. 
p. 219; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 
13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; E.O. 13338, 69 FR 
26751, May 13, 2004; Notice of August 3, 2006, 71 FR 44551 (August 
7, 2006); Notice of October 27, 2006, 71 FR 64109 (October 31, 
2006).


0
2. General Order 3 to Supplement No. 1 to part 736, is revised to read 
as follows:

Supplement No. 1 to Part 736--General Orders

* * * * *
    General Order No. 3 of June 5, 2006, as amended on September 6, 
2006 and June 8, 2007; Imposition of license requirement for exports 
and reexports of items subject to the EAR to persons, including 
persons affiliated with or related to such persons, as designated in 
paragraph (a) of this general order.
    (a) License requirements. A license is required to export or 
reexport any item subject to the EAR to the persons listed in 
paragraph (a) of this general order. This license requirement also 
applies to specifically listed affiliated and related persons. This 
license requirement is effective for each listed person on the date 
that person was added to the general order, as specified in 
paragraph (a).
    (1) A license is required to export or reexport any item subject 
to the EAR to these persons as follows: A.H. Shamnad (added on 
September 6, 2006); Akbar Ashraf Vaghefi (added on September 6, 
2006); Al-Faris (added on June 8, 2007); Ali Akbar Yahya (added on 
June 8, 2007); Amir Mohammad Zahedi (added on June 8, 2007); Atlinx 
Electronics (added on June 5, 2006); EKT Electronics (added on June 
8, 2007); Encyclopedia Electronics Center (added on June 8, 2007); 
Farrokh Nia Yaghmaei, a.k.a., Farrokh Nia Yaghmayi (added on June 5, 
2006); Frank Lam (added on June 8, 2007); GBNTT (added on June 8, 
2007); H. Ghasir (added on June 5, 2006); Hamed Athari (added on 
September 6, 2006); IKCO Trading GmbH (added on September 6, 2006); 
Majid Seif (added on June 8, 2007); Majidco Micro Electronics (added 
on June 5, 2006); Mayrow General Trading (added on June 5, 2006); 
Mayrow Technics Co. (added on September 6, 2006); Micatic General 
Trading (added on June 5, 2006); Micro Middle East Electronics 
(added on June 5, 2006); Mohammed Katranji (added on June 8, 2007); 
Mostafa Salehi (added on September 6, 2006); Narinco (added on June 
5, 2006); Neda Industrial Group (added on June 8, 2007); Neda 
Overseas Electronics L.L.C. (added on September 6, 2006); Nedayeh 
Micron Electronics (added on June 8, 2007); Pyramid Technologies 
(added on September 6, 2006); S. Basheer (added on September 6, 
2006); Sayed-Ali Hosseini (added on June 8, 2007); Speedy 
Electronics Ltd. (added on June 8, 2007); United Sources Industrial 
Enterprises (added on June 8, 2007); Vast Solution Sdn Bhd. (added 
on June 8, 2007); and Y-Sing Components Limited (added on June 8, 
2007). This license requirement applies with respect to any 
transaction in which any of the above-named persons will act as 
purchaser, intermediate consignee, ultimate consignee, or end-user 
of the items.
    (2) All persons described in paragraph (a) are located in Dubai, 
United Arab Emirates, except for Akbar Ashraf Vaghefi (located in 
Germany and Dubai, United Arab Emirates); EKT Electronics (located 
in Syria and Lebanon); Encyclopedia Electronics Center (located in 
Syria); Frank Lam (located in Hong Kong); GBNTT (located in Iran); 
IKCO Trading GmbH (located in Germany); Majid Seif (located in 
Malaysia); Mohammed

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Katranji (located in Syria and Lebanon); Neda Industrial Group 
(located in Iran); Nedayeh Micron Electronics (located in Iran); 
Speedy Electronics Ltd. (located in Hong Kong); United Sources 
Industrial Enterprises (located in Hong Kong); Vast Solution Sdn 
Bhd. (located in Malaysia); and Y-Sing Components Limited (located 
in Hong Kong).
    (b) License Exceptions. No License Exceptions are available for 
exports or reexports involving the persons described in paragraph 
(a) of this General Order.
    (c) Licensing Policy. License applications involving the persons 
described in paragraph (a) of the General Order will be subject to a 
general policy of denial.

    Dated: June 5, 2007.
Christopher A. Padilla,
Assistant Secretary for Export Administration.
 [FR Doc. E7-11126 Filed 6-7-07; 8:45 am]
BILLING CODE 3510-33-P