[Federal Register Volume 86, Number 41 (Thursday, March 4, 2021)]
[Rules and Regulations]
[Pages 12529-12534]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-04505]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
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Federal Register / Vol. 86, No. 41 / Thursday, March 4, 2021 / Rules
and Regulations
[[Page 12529]]
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Part 744
[Docket No. 201216-0348]
RIN 0694-AI36
Addition of Certain Entities to the Entity List; Correction of
Existing Entries on the Entity List
AGENCY: Bureau of Industry and Security, Commerce.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This final rule amends the Export Administration Regulations
(EAR) by adding fourteen entities to the Entity List. These fourteen
entities 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 fourteen entities will be listed on the Entity
List under the destinations of Germany, Russia, and Switzerland. This
rule also corrects six existing entries to the Entity List, one under
the destination of Germany and the other five under the destination of
China.
DATES: This rule is effective March 4, 2021.
FOR FURTHER INFORMATION CONTACT: Chair, End-User Review Committee,
Office of the Assistant Secretary, Export Administration, Bureau of
Industry and Security, Department of Commerce, Phone: (202) 482-5991,
Email: [email protected].
SUPPLEMENTARY INFORMATION:
Background
The Entity List (15 CFR, Subchapter C, part 744, Supplement No. 4
of the Export Administration Regulations (EAR)) 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 EAR
impose license requirements on and limit the availability of most
license exceptions for exports, reexports, and transfers (in country)
involving 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. The Bureau of Industry and Security (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
makes all decisions to remove or modify an entry by unanimous vote.
ERC Entity List Decisions
Additions to the Entity List
This rule implements the decision of the ERC to add fourteen
entities to the Entity List. The fourteen entities are located in
Germany, Russia, and Switzerland.
The ERC reviewed and applied Sec. 744.11(b) (Criteria for revising
the Entity List) in making the determination to add these fourteen
entities 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, along with those acting on behalf of such persons, may
be added to the Entity List. Paragraphs (b)(1) through (b)(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. For each of the fourteen entities described below, the
ERC made the requisite determination based on the standard set forth in
Sec. 744.11(b).
The ERC determined to add the following thirteen entities: Chimmed
Group; Chimconnect GmbH; Chimconnect AG; Pharmkontract GmbH; Femteco;
Interlab; LabInvest; OOO Analit Products; OOO Intertech Instruments;
Pharmcontract GC; Rau Farm; Regionsnab; and Riol-Chemie, to the Entity
List based on their proliferation activities in support of Russia's
weapons of mass destruction programs. Nine of these entities are
located in Russia, three are located in Germany, and one is located in
Switzerland. Pursuant to Sec. 744.11 of the EAR, the ERC also
determined to add the 27th Scientific Center of the Russian Ministry of
Defense (a.k.a., 27th NTs) located in Russia to the Entity List. This
entity is a Russian Government Ministry of Defense facility associated
with Russia's chemical weapons activities.
Pursuant to Sec. 744.11(b) of the EAR, the ERC determined that the
conduct of these fourteen entities raises sufficient concern that prior
review of exports, reexports, or transfers (in-country) of all items
subject to the EAR involving these entities, and the possible
imposition of license conditions or license denials on shipments
involving the entities, will enhance BIS's ability to prevent items
subject to the EAR from being used in activities contrary to the
national security and foreign policy interests of the United States.
For the fourteen entities added to the Entity List in this final
rule, BIS imposes a license requirement that applies to all items
subject to the EAR. For the 27th Scientific Center of the Russian
Ministry of Defense, BIS will review license applications under Sec.
744.4(d) of the EAR, the review policy that applies to items subject to
the EAR that are destined for certain chemical and biological weapons
end-uses. With respect to the other thirteen entities located in
Russia, Germany, and Switzerland, BIS will review license applications
under Sec. 744.4(d) of the EAR as well as the policies set forth in
Sec. 744.2(d) and Sec. 744.3(d), which apply to items subject to the
EAR that are destined for certain nuclear and missile technology end-
uses, respectively.
With respect to all fourteen entities, the license requirements
apply to any transaction in which items subject to the EAR are to be
exported, reexported, or transferred (in country) involving any of the
entities in which such entities act as
[[Page 12530]]
purchaser, intermediate consignee, ultimate consignee, or end-user as
described in Sec. 748.5(c) through (f). In addition, no license
exceptions are available for exports, reexports, or transfers (in-
country) involving the entities being added to the Entity List in this
rule.
The acronym ``a.k.a.'', or 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 fourteen entities to the Entity
List and includes, where appropriate, aliases:
Germany
Chimconnect Gmbh;
Pharmcontract Gmbh; and
Riol-Chemie.
Russia
27th Scientific Center of the Russian Ministry of Defense;
Chimmed Group;
Femteco;
Interlab;
LabInvest;
OOO Analit Products;
OOO Intertech Instruments;
Pharmcontract GC;
Rau Farm; and\
Regionsnab.
Switzerland
Chimconnect AG.
Corrections to the Entity List
This final rule implements corrections to six existing entries on
the Entity List. One correction is under the destination of Germany for
the entity ``Huawei OpenLab Munich,'' and a second correction is under
the destination of China for the entity ``Huawei Cloud Hong Kong.''
Both entities were added to the Entity List on August 20, 2020 (85 FR
51596), and their entries were modified on August 27, 2020 (85 FR
52898). A correction is needed in the Federal Register citation column
for these two entities because of an error that occurred in the
amendatory instruction in the August 27, 2020 rule. This rule corrects
the Federal Register citation for each entity to conform to the Federal
Register citations that appear in the August 20, 2020 and August 27,
2020 rules. The third correction is under the destination of China for
the entity ``China State Shipbuilding Corporation, Limited (CSSC) 750th
Research Institute.'' This entity was added to the EAR on December 18,
2020 (85 FR 83416). This rule corrects the entity's name so that it
reads as ``China State Shipbuilding Corporation, Limited (CSSC) 750th
Test Center.'' The fourth correction is under the destination of China
for the entity ``SMIC Hong Kong International Company Limited.'' This
entity was originally added to the EAR in the December 18, 2020 rule
and placed under Hong Kong. As part of a December 22, 2020 rule (85 FR
83416), this entry was moved and placed under China. Due to
publication-related timing constraints, the December 22, 2020 rule did
not include the Federal Register citation for the December 18, 2020
rule. This rule corrects the Federal Register citation for this entry
to insert the citation from the December 18, 2020 rule. The fifth
correction is under the destination of China for the entity ``Su Bin.''
This entity was originally added to the EAR under the destination of
Hong Kong on August 1, 2014 (79 FR 44680) and moved from Hong Kong to
the destination of China on December 23, 2020 (85 FR 83765). A
correction is needed in the Federal Register citation column for this
entity because of an error that double printed the December 23, 2020
Federal Register citation. This rule corrects the Federal Register
citation by deleting the second reference to the citation. The sixth
correction is under the destination of China for the entity ``Nanjing
FiberHome Starrysky Communication Development -o.'' This rule corrects
the name of this entity by replacing the ``Nanjing FiberHome Starrysky
Communication Development -o.'' with ``Nanjing FiberHome Starrysky
Communication Development Co.''
Savings Clause
Shipments of items removed from eligibility for a License Exception
or for 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 March 4, 2021, 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) (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 rule.
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 or 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
42.5 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.
3. This rule does not contain policies with Federalism implications
as that term is defined in Executive Order 13132.
4. Pursuant to Sec. 1762 of the Export Control Reform Act of 2018,
this action is exempt from the Administrative Procedure Act (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 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.
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.
[[Page 12531]]
Accordingly, part 744 of the Export Administration Regulations (15
CFR parts 730-774) is amended as follows:
PART 744--
0
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 September 18, 2020, 85 FR 59641 (September 22, 2020); Notice of
November 12, 2020, 85 FR 72897 (November 13, 2020).
0
2. Amend Supplement No. 4 to part 744 by
0
a. Under CHINA, PEOPLE'S REPUBLIC OF revising the entities ``Huawei
Cloud Hong Kong'', Nanjing FiberHome Starrysky Communication
Development -o,'' ``SMIC Hong Kong International Company Limited'', and
``Su Bin'';
0
b. Under Germany:
0
i. Adding in alphabetical order the entity ``Chimconnect GmbH'';
0
ii. Revising the entity ``Huawei OpenLab Munich''; and
0
iii. Adding in alphabetical order the entities ``Pharmcontract GmbH,''
and ``Riol-Chemie'':
0
c. Under RUSSIA, by adding in alphabetical order the entities ``27th
Scientific Center of the Russian Ministry of Defense,'' ``Chimmed
Group,'' ``Femteco,'' ``Interlab,'' ``LabInvest,'' ``OOO Analit
Products,'' ``OOO Intertech Instruments,'' ``Pharmcontract GC,''
``Regionsnab,'' and ``Rau Farm''; and
0
d. Under SWITZERLAND, by adding in alphabetical order the entity
``Chimconnect AG''.
The additions and revisions read as follows:
Supplement No. 4 to Part 744--Entity List
* * * * *
----------------------------------------------------------------------------------------------------------------
License review Federal Register
Country Entity License requirement policy citation
----------------------------------------------------------------------------------------------------------------
* * * * * * *
----------------------------------------------------------------------------------------------------------------
CHINA, PEOPLE'S * * * * * *
REPUBLIC OF.
Huawei Cloud Hong Kong, Hong For all items Presumption of 85 FR 51603, 8/20/
Kong. subject to the denial. 20.
EAR, see Sec. 85 FR 52901, 8/27/
736.2(b)(3)(vi),\1 20.
\ and 744.11 of 86 FR [INSERT FR
the EAR, EXCEPT PAGE NUMBER] 3/4/
\2\ for technology 21.
subject to the EAR
that is designated
as EAR99, or
controlled on the
Commerce Control
List for anti-
terrorism reasons
only, when
released to
members of a
``standards
organization''
(see Sec. 772.1)
for the purpose of
contributing to
the revision or
development of a
``standard'' (see
Sec. 772.1).
* * * * * *
Nanjing FiberHome Starrysky For all items Case-by-case 85 FR 34505, 6/5/
Communication Development subject to the review for ECCNs 20.
Co., a.k.a., the following EAR. (See Sec. 1A004.c, 85 FR 44159, 7/22/
two aliases: 744.11 of the 1A004.d, 1A995, 20.
--Nanjing Fenghuo Xingkong EAR). 1A999.a, 1D003, 86 FR [INSERT FR
Communication Development 2A983, 2D983, PAGE NUMBER] 3/4/
Co.; and and 2E983, and 21.
--Fiberhome StarrySky Co., for EAR99 items
Ltd. described in the
88 Yunlongshan Road, Jianye Note to ECCN
District, Nanjing China. 1A995; case-by-
case review for
items necessary
to detect,
identify and
treat infectious
disease; and
presumption of
denial for all
other items
subject to the
EAR..
* * * * * *
[[Page 12532]]
SMIC Hong Kong International All items subject Presumption of 85 FR 83420, 12/
Company Limited, a.k.a., to the EAR. (See denial for items 22/20. 85 FR
the following one alias: Sec. 744.11 of uniquely 83765, 12/23/
--SMIC Hong Kong. the EAR). required for 2020.
Suite 3003, 30th Floor, No. production of 86 FR [INSERT FR
9 Queen's Road Central Hong semiconductors PAGE NUMBER] 3/4/
Kong. at advanced 21.
technology nodes
(10 nanometers
and below,
including
extreme
ultraviolet
technology);
Case by case for
all other items..
* * * * * *
Su Bin, a.k.a., the For all items Presumption of 79 FR 44683, 8/1/
following two aliases: subject to the denial. 14.
--Stephen Subin; and EAR. (See Sec. 85 FR 83768, 12/
--Steve Su. 744.11 of the 23/2020.
Room 8306 Kelun Building, EAR). 86 FR [INSERT FR
12A Guanghua Road, PAGE NUMBER] 3/4/
Chaoyang, Beijing 100020, 21.
China; and Room 801, Unit
1, Building 8 Caiman
Street, Chaoyang Road,
Beijing 100025, China; and
Building 1-1, No. 67 Caiman
Str., Chaoyang Road,
Beijing 100123, China; and
Room A407 Kelun Building,
12A Guanghua Road,
Chaoyang, Beijing 100020,
China; and Rm 602, 5/F, No.
106 NanHu road, ChaoYang
District, Beijing, China
and Rm 1019-1020 Nan Fung
Centre, 264-298 Castle Peak
Road, Tsuen Wan New
Territories, Hong Kong; and
Room 1522 Nan Fung Centre,
264-298 Castle Peak Road,
Tsuen Wan New Territories,
Hong Kong.
* * * * * *
GERMANY................ * * * * * *
Chimconnect GmbH, For all items See Sec. Sec. 86 FR [INSERT FR
Reichenauestrasse 1a, DE- subject to the 744.2(d), PAGE NUMBER] 3/4/
78467, Konstanz, Germany. EAR. 744.3(d), and 21.
744.4(d) of this
part..
* * * * * *
Huawei OpenLab Munich, For all items Presumption of 85 FR 51603, 8/20/
a.k.a., the following one subject to the denial.. 20, 85 FR 52901,
alias, EAR, see Sec. 8/27/20.
--Huawei Munich OpenLab. 736.2(b)(3)(vi),\1 86 FR [INSERT FR
Huawei Germany Region R&D \ and 744.11 of PAGE NUMBER] 3/4/
Centre Riesstr. 22 80992 the EAR, EXCEPT\2\ 21.
Munich, Germany; and Huawei for technology
Germany Region R&D Centre subject to the EAR
Riesstr. 12 80992 Munich, that is designated
Germany. as EAR99, or
controlled on the
Commerce Control
List for anti-
terrorism reasons
only, when
released to
members of a
``standards
organization''
(see Sec. 772.1)
for the purpose of
contributing to
the revision or
development of a
``standard'' (see
Sec. 772.1).
* * * * * *
Pharmcontract GmbH., a.k.a., For all items See Sec. Sec. 86 FR [INSERT FR
the following one alias: subject to the 744.2(d), PAGE NUMBER] 3/4/
--Farmkontract GmbH. EAR. 744.3(d), and 21.
Goethestrasse 4-8 D-60313 744.4(d) of this
Frankfurt am Main, Germany. part.
Riol-Chemie, Gobelstrasse For all items See Sec. Sec. 86 FR [INSERT FR
21, Lilienthal, Germany. subject to the 744.2(d), PAGE NUMBER] 3/4/
EAR. 744.3(d), and 21.
744.4(d) of this
part..
* * * * * *
[[Page 12533]]
RUSSIA................. 27th Scientific Center of All items subject See Sec. 86 FR [INSERT FR
the Russian Ministry of to the EAR. 744.4(d) of this PAGE NUMBER] 3/4/
Defense, a.k.a., the part.. 21.
following one alias:
--27th NTs.
Birgadirskiy pereulok 13,
105005, Moscow, Russia.
* * * * * *
Chimmed Group, a.k.a., the For all items See Sec. Sec. 86 FR [INSERT FR
following six aliases: subject to the 744.2(d), PAGE NUMBER] 3/4/
--OOO Khimmed; EAR. 744.3(d), and 21.
--Chimmed; 744.4(d) of this
--TD Chimmed; part..
--TD Khimmed;
--Khimmed; and
--SPK Khimmed
9/3 Kashirskoe Highway,
Moscow, Russia 115230; and
Runovskiy, D 11/13, Korp 2,
Moscow, Russia; and
Kashirskoe, D 9, Korp 3,
Moscow, Russia.
* * * * * *
Femteco, 13 3-ya For all items See Sec. Sec. 86 FR [INSERT FR
Khoroshevskaya Street, subject to the 744.2(d), PAGE NUMBER] 3/4/
Moscow, Russia 123298; and EAR. 744.3(d), and 21.
3298 G. Moskva, Ul. 3-ya 744.4(d) of this
Khoroshevskaya, D. 13, K. part..
Russia.
* * * * * *
Interlab, a.k.a., the For all items See Sec. Sec. 86 FR [INSERT FR
following one alias: subject to the 744.2(d), PAGE NUMBER] 3/4/
--OOO Interlab. EAR. 744.3(d), and 21.
Tikhvinsky Per., 11, 744.4(d) of this
Building 2, 127055, Moscow, part..
Russia.
* * * * * *
LabInvest, Remenskoe, Street For all items See Sec. Sec. 86 FR [INSERT FR
100-Y, Svirskoy Division, D subject to the 744.2(d), PAGE NUMBER] 3/4/
52, 140104, Moscow Oblast, EAR. 744.3(d), and 21.
Russia. 744.4(d) of this
part..
* * * * * *
OOO Analit Products, 26th- For all items See Sec. Sec. 86 FR [INSERT FR
line V.O., dom. 15/2 lit. subject to the 744.2(d), PAGE NUMBER] 3/4/
A, office 9.06, St. EAR. 744.3(d), and 21.
Petersburg, Russia 199106. 744.4(d) of this
part..
OOO Intertech Instruments, For all items See Sec. Sec. 86 FR [INSERT FR
a.k.a., the following one subject to the 744.2(d), PAGE NUMBER] 3/4/
alias: EAR. 744.3(d), and 21.
--Intertek Instruments. 744.4(d) of this
3/2 Novopeschanaya Street, part..
Moscow, Russia 125057.
* * * * * *
Pharmcontract GC, a.k.a., For all items See Sec. Sec. 86 FR [INSERT FR
the following one alias: subject to the 744.2(d), PAGE NUMBER] 3/4/
--Farmkontract GC. EAR. 744.3(d), and 21.
Dubininskaya Street, 57/2, 744.4(d) of this
Office 306, 115054, Moscow, part..
Russia.
* * * * * *
Rau Farm, a.k.a., the For all items See Sec. Sec. 86 FR [INSERT FR
following three aliases: subject to the 744.2(d), PAGE NUMBER] 3/4/
--Raw Farm; EAR. 744.3(d), and 21.
--Rau Pharm; and 744.4(d) of this
--Raw Pharm. part..
Petro-Razumovskaya Alley 18,
Moscow, Russia; and Ul.
Mnevniki \3/1\, Moscow,
Russia; and
Denisovsky Pereulok, Bldg 8/
14, Moscow, Russia.
* * * * * *
Regionsnab, 129327 ul. For all items See Sec. Sec. 86 FR [INSERT FR
Lenskaya 2/21, Suite III, subject to the 744.2(d), PAGE NUMBER] 3/4/
Moscow, Russia. EAR. 744.3(d), and 21.
744.4(d) of this
part..
----------------------------------------------------------------------------------------------------------------
* * * * * * *
----------------------------------------------------------------------------------------------------------------
SWITZERLAND............ * * * * * *
Chimconnect AG, For all items See Sec. Sec. 86 FR [INSERT FR
Langaulistrasse 17, CH-9470 subject to the 744.2(d), PAGE NUMBER] 3/4/
Buschs/SG, Switzerland. EAR. 744.3(d), and 21.
744.4(d) of this
part..
[[Page 12534]]
* * * * * *
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* * * * *
Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 2021-04505 Filed 3-2-21; 4:15 pm]
BILLING CODE 3510-33-P