[Federal Register Volume 86, Number 126 (Tuesday, July 6, 2021)]
[Rules and Regulations]
[Pages 35389-35391]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-14367]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 744

[Docket No. 210629-0139]
RIN 0694-AI52


Addition of Certain Entities to the Entity List; Correction of 
Existing Entry on the Entity List

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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SUMMARY: This final rule amends the Export Administration Regulations 
(EAR) by adding four entities to the Entity List. These four entities 
have been determined by the U.S. Government to be acting contrary to 
the foreign policy and national security interests of the United States 
and will be listed on the Entity List under the destination of Burma. 
This rule also amends the EAR by correcting the address of one entity, 
listed under Burma, on the Entity List.

DATES: This rule is effective July 6, 2021.

FOR FURTHER INFORMATION CONTACT: Chair, End-User Review Committee, 
Office of the Assistant Secretary for Export Administration, Bureau of 
Industry and Security, Department of Commerce, Phone: (202) 482-5991, 
Email: [email protected].

SUPPLEMENTARY INFORMATION:

Background

Entity List

    The Entity List (supplement no. 4 to part 744 of the EAR) 
identifies entities for which there is reasonable cause to believe, 
based on specific and articulable facts, that the entities have been 
involved, are involved, or 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 (15 CFR parts 730-774) 
impose additional license requirements on, and limit 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 document 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 
makes all decisions to remove or modify an entry by unanimous vote.

Burma

    This rule is part of an ongoing effort by the United States 
Government to impose restrictions on Burmese entities that support the 
Burmese military as part of a broader response to the February 1, 2021 
coup by the military, which overthrew Burma's democratically-elected 
government. On February 10, 2021, President Biden signed Executive 
Order (E.O.) 14014, ``Blocking Property With Respect to the Situation 
in Burma'' (E.O. 14104), in which he declared a national emergency to 
address the threat posed to the United States by the situation in, and 
in relation to, Burma following the coup. See 86 FR 9429 (Feb. 12, 
2021).
    Since February 2021, BIS has taken several actions under the EAR to 
strengthen export controls on Burma. These include the publication of 
``Burma: Implementation of Sanctions'' (86 FR 10011) on February 18, 
2021; ``Burma: Implementation of Sanctions'' (86 FR 13173) on March 8, 
2021; ``Addition of Entities to the Entity List'' (86 FR 13179) on 
March 8, 2021; and ``Expansion of Certain End-Use and End-User Controls 
and Controls on Specific Activities of U.S. Persons; Corrections; and 
Burma Sanctions'' (86 FR 18433) on April 9, 2021.

ERC Entity List Decisions

Additions to the Entity List

    This rule implements the decision of the ERC to add four entities 
to the Entity

[[Page 35390]]

List. The four entities are added based on 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 four entities are located in Burma.
    By making these Entity List additions, this final rule further 
strengthens export controls on Burma and addresses the foreign policy 
and national security concerns that formed the basis for the issuance 
of E.O. 14104. This rule also supports the United States Government's 
efforts to promote an immediate return to democracy in Burma. 
Specifically, BIS is adding the following four entities to the Entity 
List under the destination of Burma: Wanbao Mining, Ltd. and its two 
subsidiaries, Myanmar Wanbao Mining Copper, Ltd. and Myanmar Yang Tse 
Copper, Ltd.; and King Royal Technologies Co., Ltd. In particular, by 
adding Wanbao Mining, Ltd., Myanmar Wanbao Mining Copper, Ltd., and 
Myanmar Yang Tse Copper, Ltd. to the Entity List, this rule enhances 
the U.S. Government's efforts to ensure that items subject to the EAR 
are not available for copper mining operations by these three entities, 
which have revenue-sharing agreements with Myanmar Economic Holdings 
Limited (MEHL). MEHL provides revenue for Burma's Ministry of Defence, 
an entity responsible for the February 1, 2021 military coup. On March 
8, 2021, BIS added MEHL and the Ministry of Defence to the Entity List. 
See 86 FR 13179 (March 8, 2021). Additionally, BIS is adding King Royal 
Technologies Co., Ltd., a telecommunications company, to the Entity 
List for providing satellite communication services in support of the 
Burmese military.
    Pursuant to Sec.  744.11(b) of the EAR, the ERC determined that the 
conduct of the above-described four entities raises sufficient concerns 
that prior review, via the imposition of a license requirement for 
exports, reexports, or transfers (in-country) of all items subject to 
the EAR involving these four entities and the possible issuance of 
license denials or the possible imposition of license conditions on 
shipments to these entities, will enhance BIS's ability to prevent 
violations of the EAR or otherwise protect U.S. national security or 
foreign policy interests.
    For the four entities added to the Entity List in this final rule, 
BIS imposes a license requirement that applies to all items subject to 
the EAR. 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. BIS imposes a license review policy of a 
presumption of denial for these four entities. The acronym ``a.k.a.,'' 
which is an abbreviation of `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.
    For the reasons described above, this final rule adds the following 
four entities to the Entity List and includes, where appropriate, 
aliases:

Burma

     King Royal Technologies Co., Ltd.;
     Myanmar Wanbao Mining Copper, Ltd.;
     Myanmar Yang Tse Copper, Ltd.; and
     Wanbao Mining, Ltd.

Correction to the Entity List

    This final rule implements a correction to one existing entry on 
the Entity List for an entity that was added to the Entity List under 
the destination of Burma on March 8, 2021 (86 FR 13180, March 8, 2021). 
Specifically, BIS is correcting the entry for Myanmar Economic 
Corporation by changing the address to refer to ``Burma.''

Savings Clause

    Shipments of items removed from eligibility for a License Exception 
or export, reexport, or transfer (in-country) without a license (NLR) 
as a result of this regulatory action that were en route aboard a 
carrier to a port of export, reexport, or transfer (in-country), on 
July 6, 2021, pursuant to actual orders for export, reexport, or 
transfer (in-country) to or within a foreign destination, may proceed 
to that destination under the previous eligibility for a License 
Exception or export, reexport, or transfer (in-country) 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.
    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 commodity classification, and 
carries a burden estimate of 29.6 minutes for a manual or electronic 
submission for a total burden estimate of 31,835 hours. 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 section 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.
    Accordingly, part 744 of the Export Administration Regulations (15 
CFR parts 730-774) is amended as follows:

[[Page 35391]]

PART 744--[AMENDED]

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. Supplement No. 4 to part 744 is amended under BURMA by:
0
a. Adding in alphabetical order an entry for ``King Royal Technologies 
Co., Ltd.'';
0
b. Revising the listing for ``Myanmar Economic Corporation''; and
0
c. Adding in alphabetical order entries for ``Myanmar Wanbao Mining 
Copper, Ltd.,'' ``Myanmar Yang Tse Copper, Ltd.,'' and ``Wanbao Mining, 
Ltd.''.
    The additions and revision read as follows:

Supplement No. 4 to Part 744--Entity List

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                                                                              License review    Federal Register
        Country                     Entity             License requirement        policy            citation
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BURMA..................                                         * * * * * *
                         King Royal Technologies Co.,  All items subject    Presumption of     86 FR [INSERT FR
                          Ltd., a.k.a., the following   to the EAR. (See     denial.            PAGE NUMBER AND
                          one alias:                    Sec.   744.11 of                        July 6, 2021].
                         --KRT.                         the EAR).
                         4, Min Dhama Rd., Shwe Gabar
                          6th St, Shwe Gabar Housing,
                          Mayangone, Yangon , Burma;
                          and
                         Room 4 Shwe Gabar 6th
                          Yangon, Burma.
                                                                * * * * * *
                         Myanmar Economic              For all items        Presumption of     86 FR 13180, 3/8/
                          Corporation, a.k.a., the      subject to the       denial.            2021. 86 FR
                          following one alias:          EAR. (See Sec.                          [INSERT FR PAGE
                         --MEC.                         744.11 of the                           NUMBER AND July
                                                        EAR).                                   6, 2021].
                         Corner of Ahlone Road and
                          Strand Road, Ahlone
                          Township, Yangon, Burma.
                                                                * * * * * *
                         Myanmar Wanbao Mining         All items subject    Presumption of     86 FR [INSERT FR
                          Copper, Ltd., Yangon Office   to the EAR. (See     denial.            PAGE NUMBER AND
                          70 (I)Bo Chein Street Pyay    Sec.   744.11 of                        July 6, 2021].
                          Road, Hlaing Township,        the EAR).
                          Yangon, Burma.
                         Myanmar Yang Tse Copper,      All items subject    Presumption of     86 FR [INSERT FR
                          Ltd., 70/I, Bo Chein St.,     to the EAR. (See     denial.            PAGE NUMBER AND
                          Ward (11), Hlaing, Yangon,    Sec.   744.11 of                        July 6, 2021].
                          Burma.                        the EAR).
                         Wanbao Mining, Ltd., 70 Bo    All items subject    Presumption of     86 FR [INSERT FR
                          Chain Ln, Yangon, Burma.      to the EAR. (See     denial.            PAGE NUMBER AND
                                                        Sec.   744.11 of                        July 6, 2021].
                                                        the EAR).
 
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Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 2021-14367 Filed 7-2-21; 8:45 am]
BILLING CODE 3510-33-P