[Federal Register Volume 83, Number 210 (Tuesday, October 30, 2018)]
[Rules and Regulations]
[Pages 54519-54521]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-23693]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 744

[Docket No. 181010930-8930-01]
RIN 0694-AH67


Addition of an Entity to the Entity List

AGENCY: Bureau of Industry and Security, 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 one entity to the 
Entity List. The entity that is added to the Entity List has been 
determined by the U.S. Government to pose a significant risk of 
becoming involved in activities contrary to the national security or 
foreign policy interests of the United States. This entity will be 
listed under the destination of China.

DATES: Effective Date: This rule is effective October 30, 2018.

FOR FURTHER INFORMATION CONTACT: Chair, End-User Review Committee, 
Office of the Assistant Secretary, Export

[[Page 54520]]

Administration, Bureau of Industry and Security, Department of 
Commerce, Phone: (202) 482-5991, Fax: (202) 482-3911, Email: 
[email protected].

SUPPLEMENTARY INFORMATION: 

Background

    The Entity List (15 CFR, Subchapter C, part 744, Supplement No. 4) 
identifies entities 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 Export Administration Regulations (EAR) (15 CFR, Subchapter 
C, parts 730-774) imposes additional license requirements on, and 
limits the availability of most license exceptions for, exports, 
reexports, and transfers (in-country) to listed entities. The license 
review policy for each listed entity 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 relevant Federal 
Register notice adding entities to the Entity List. BIS places entities 
on the Entity List pursuant to 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.

ERC Entity List Decision

Addition to the Entity List

    Under Sec.  744.11(b) (Criteria for revising the Entity List) of 
the EAR, persons for whom there is reasonable cause to believe, based 
on specific and articulable facts, 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.
    Pursuant to 744.11(b) of the EAR, the ERC determined that Fujian 
Jinhua Integrated Circuit Company poses a significant risk of becoming 
involved in activities that could have a negative impact on the 
national security interests of the United States. The ERC determined 
that the conduct of this entity raises sufficient concern that prior 
review of exports, reexports, or transfers (in-country) of items 
subject to the EAR involving this entity, and the possible imposition 
of license conditions or license denials on shipments to the entity, 
will enhance BIS's ability to prevent activities contrary to the 
national security interests of the United States.
    For the one entity added to the Entity List in this final rule, BIS 
imposes a license requirement for all items subject to the EAR and a 
license review policy of presumption of denial. In addition, no license 
exceptions are available for exports, reexports, or transfers (in-
country) to the person 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, thereby assisting exporters, reexporters and 
transferors in identifying entities on the Entity List.
    This final rule adds the following entity to the Entity List:

China

    (1) Fujian Jinhua Integrated Circuit Company, Ltd., a.k.a., the 
following one alias: -JHICC.
    Sanchuang Park, Century Avenue, Jinjiang City, Fujian Province, 
China.

Savings Clause

    Shipments of items removed from eligibility for a License Exception 
or export or reexport without a license (NLR) as a result of this 
regulatory action that were en route aboard a carrier to a port of 
export or reexport, on October 30, 2018, pursuant to actual orders for 
export or reexport to a foreign destination, may proceed to that 
destination under the previous eligibility for a License Exception or 
export or reexport without a license (NLR).

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) (Title XVII, 
Subtitle B of Pub. L. 115-232), which provides the legal basis for 
BIS's principal authorities and serves as the authority under which BIS 
issues this rule. As set forth in section 1768 of ECRA, all 
delegations, rules, regulations, orders, determinations, licenses, or 
other forms of administrative action that have been made, issued, 
conducted, or allowed to become effective under the Export 
Administration Act of 1979 (50 U.S.C. 4601 et seq.) (as in effect prior 
to August 13, 2018, and as continued in effect pursuant to the 
International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) 
and Executive Order 13222 of August 17, 2001, 3 CFR, 2001 Comp., p. 783 
(2002), as amended by Executive Order 13637 of March 8, 2013, 78 FR 
16129 (March 13, 2013), and as extended by the Notice of August 8, 
2018, 83 FR 39871 (August 13, 2018)), or the Export Administration 
Regulations, and are in effect as of August 13, 2018, shall continue in 
effect according to their terms until modified, superseded, set aside, 
or revoked under the authority of ECRA.

Rulemaking Requirements

    1. 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, distributive 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 rule has been determined to be not significant for 
purposes of Executive Order 12866. This rule is not an Executive Order 
13771 regulatory action because this rule is not significant under 
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 OMB under control number 0694-0088, 
Simplified Network Application Processing System, which includes, among 
other things, license applications, and carries a burden estimate of 
43.8 minutes for a manual or electronic submission.
    Total burden hours associated with the PRA and OMB control number 
0694-0088 are not expected to increase as a result of this rule. You 
may send comments regarding the collection of information associated 
with this rule, including suggestions for reducing the burden, to 
Jasmeet K. Seehra, Office of Management and Budget (OMB), by email to 
[email protected], or by fax to (202) 395-7285.

[[Page 54521]]

    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 (Title XVII, Subtitle B of Pub. L. 115-232), which was included in 
the John S. McCain National Defense Authorization Act for Fiscal Year 
2019, this action is exempt from the Administrative Procedure Act (APA) 
(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 the APA or 
any other law, the analytical requirements of the Regulatory 
Flexibility Act, 5 U.S.C. 601, et seq., are not applicable. 
Accordingly, no 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--[AMENDED]

0
1. The authority citation for 15 CFR part 744 continues to read as 
follows:

    Authority: Pub. L. 115-232, Title XVII, Subtitle B. 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. 12947, 60 FR 5079, 3 CFR, 1995 Comp., p. 356; 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, 2017, 82 FR 43825 (September 19, 2017); Notice of 
November 6, 2017, 82 FR 51971 (November 8, 2017); Notice of January 
17, 2018, 83 FR 2731 (January 18, 2018); Notice of August 8, 2018, 
83 FR 39871 (August 13, 2018).

0
 2. Supplement No. 4 to part 744 is amended by adding in alphabetical 
order, under CHINA, PEOPLE'S REPUBLIC OF, one Chinese entity, ``Fujian 
Jinhua Integrated Circuit Company, Ltd.'' 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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                                                  * * * * * * *
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CHINA, PEOPLE'S REPUBLIC OF.....                                    * * * * * *
                                  Fujian Jinhua       For all items       Presumption of      83 FR [INSERT FR
                                   Integrated          subject to the      denial.             PAGE NUMBER] 10/
                                   Circuit Company,    EAR. (See Sec.                          30/2018.
                                   Ltd., a.k.a., the   744.11 of the
                                   following one       EAR).
                                   alias: -JHICC.
                                  Sanchuang Park,
                                   Century Avenue,
                                   Jinjiang City,
                                   Fujian Province,
                                   China.
                                                                    * * * * * *
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    Dated: October 25, 2018.
Richard E. Ashooh,
Assistant Secretary for Export Administration.
[FR Doc. 2018-23693 Filed 10-29-18; 8:45 am]
 BILLING CODE 3510-33-P