[Federal Register Volume 88, Number 21 (Wednesday, February 1, 2023)] [Rules and Regulations] [Pages 6621-6624] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 2023-02130] [[Page 6621]] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF COMMERCE Bureau of Industry and Security 15 CFR Part 744 [Docket No. 230126-0028] RIN 0694-AJ08 Additions to the Entity List AGENCY: Bureau of Industry and Security, Department of Commerce. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: In this rule, the Bureau of Industry and Security (BIS) amends the Export Administration Regulations (EAR) by adding seven entities to the Entity List. These seven entities, listed under the destination of Iran, have been determined by the U.S. Government to be acting contrary to the national security or foreign policy interests of the United States for contributing to Russia's military and defense industrial base. They are being added to the Entity List with application of the Russia/Belarus-Military End User Foreign Direct Product rule. DATES: This rule is effective on January 31, 2023. 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 The Entity List (supplement no. 4 to part 744 of the EAR (15 CFR parts 730-774)) 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, pursuant to Sec. 744.11(b). The EAR impose additional license requirements on, and limit the availability of, most license exceptions for exports, reexports, and transfers (in-country) when a listed entity is a party to the transaction. 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 that added the entity to the Entity List. The Bureau of Industry and Security (BIS) places entities on the Entity List pursuant to parts 744 (Control Policy: End-User and End-Use Based) and 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. Entity List Decisions A. Additions to the Entity List The ERC determined to add the following seven entities to the Entity List under the destination of Iran based on Sec. 744.11 for activity contrary to U.S. national security and foreign policy interests under Sec. Sec. 744.11 and 744.21 of the EAR: Design and Manufacturing of Aircraft Engines, Islamic Revolutionary Guard Corps Aerospace Force, Islamic Revolutionary Guard Corps Research and Self- Sufficiency Jihad Organization, Oje Parvaz Mado Nafar Company, Paravar Pars Company, Qods Aviation Industry, and Shahed Aviation Industries. These entities are designated by the Departments of State and/or the Treasury pursuant to Executive Order 13382 and other sanctions programs. They are also currently subject to restrictions set forth in part 744 of the EAR, such as those in Sec. Sec. 744.8, 744.12, and 744.14. With this rule, these entities are added to the Entity List for contributing to Russia's military and defense industrial base through the production of Iranian unmanned aerial vehicles (UAVs), which are being transferred to Russia for use in Ukraine. This activity is contrary to U.S. national security and foreign policy interests under Sec. 744.11(b) and these entities qualify as `military end-users' under Sec. 744.21(g) of the EAR. These entities will receive a footnote 3 designation because the ERC has determined that they are Russian or Belarusian `military end users' in accordance with Sec. 744.21. A footnote 3 designation subjects these entities to the Russia/ Belarus-Military End User Foreign Direct Product (FDP) rule, detailed in Sec. 734.9(g) of the EAR. These seven entities are added to the Entity List with a license requirement for all items subject to the EAR. BIS will review license applications for items for these entities under a policy of denial apart from food and medicine designated as EAR99, which will be reviewed on a case-by-case basis. No license exceptions are available for exports, reexports, or transfers (in- country) to these entities. For the reasons described above, this final rule adds the following seven entities to the Entity List and includes, where appropriate, aliases: IranDesign and Manufacturing of Aircraft Engines (DAMA); Islamic Revolutionary Guard Corps Aerospace Force; Islamic Revolutionary Guard Corps Research and Self- Sufficiency Jihad Organization; Oje Parvaz Mado Nafar Company; Paravar Pars Company; Qods Aviation Industry; and Shahed Aviation Industries. Savings Clause For the changes being made in this final rule, 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 January 31, 2023, 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) before March 3, 2023. Any such items not actually exported, reexported or transferred (in-country) before midnight, on March 3, 2023, require a license in accordance with this final rule. 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. 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 [[Page 6622]] (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 classifications, and carries a burden estimate of 29.6 minutes for a manual or electronic submission for a total burden estimate of 33,133 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: PART 744--CONTROL POLICY: END-USER AND END-USE BASED 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 19, 2022, 87 FR 57569 (September 21, 2022); Notice of November 8, 2022, 87 FR 68015 (November 10, 2022). 0 2. Supplement No. 4 to part 744 is amended under IRAN by adding, in alphabetical order, entries for ``Design and Manufacturing of Aircraft Engines,'' ``Islamic Revolutionary Guard Corps Aerospace Force,'' ``Islamic Revolutionary Guard Corps Research and Self-Sufficiency Jihad Organization,'' ``Oje Parvaz Mado Nafar Company,'' ``Paravar Pars Company,'' ``Qods Aviation Industry,'' and ``Shahed Aviation Industries'' to read as follows: Supplement No. 4 to Part 744--Entity List * * * * * ---------------------------------------------------------------------------------------------------------------- License review Federal Register Country Entity License requirement policy citation ---------------------------------------------------------------------------------------------------------------- * * * * * * * ---------------------------------------------------------------------------------------------------------------- IRAN................... * * * * * Design and Manufacturing of For all items Policy of denial 88 FR [INSERT FR Aircraft Engines (DAMA), subject to the for all items PAGE NUMBER], 2/ a.k.a., the following four EAR. (See Sec. subject to the 1/2023. aliases: Sec. EAR apart from --DAMA; 734.9(g),\3\ food and --Design and Manufacturing 744.21(b) and medicine of Aero-Engine Company; 746.8(a)(3) of the designated as --Iranian Turbine EAR) EAR99, which Manufacturing Industries; will be reviewed and on a case-by- --Turbine Engine case basis. See Manufacturing Co. Sec. Sec. Shishesh Mina Street, Karaj 746.8(b) and Special Road, Tehran, Iran. 744.21(e). * * * * * Islamic Revolutionary Guard For all items Policy of denial 88 FR [INSERT FR Corps Aerospace Force, subject to the for all items PAGE NUMBER], 2/ a.k.a., the following ten EAR. (See Sec. subject to the 1/2023. aliases: Sec. EAR apart from --IRGC-ASF; 734.9(g),\3\ food and --Aerospace Division of 744.21(b) and medicine IRGC; 746.8(a)(3) of the designated as --Aerospace Force of the EAR) EAR99, which Army of the Guardians of will be reviewed the Islamic Revolution; on a case-by- --AFAGIR; case basis. See --Air Force, IRGC; Sec. Sec. --IRGC Aerospace Force; 746.8(b) and --IRGC Air Force; IRGCAF; 744.21(e). --IRGCASF; Islamic Revolution Guards Corps Air Force; --Islamic Revolutionary Guards Corps Air Force; and --Sepah Pasdaran Air Force. Damavand Tehran Highway, Tehran Province, Iran [[Page 6623]] Islamic Revolutionary Guard For all items Policy of denial 88 FR [INSERT FR Corps Research and Self- subject to the for all items PAGE NUMBER], 2/ Sufficiency Jihad EAR. (See Sec. subject to the 1/2023. Organization, a.k.a., the Sec. EAR apart from following 13 aliases: 734.9(g),\3\ food and --IRGC SSJO; 744.21(b) and medicine --Islamic Revolutionary 746.8(a)(3) of the designated as Guard Corps Self- EAR) EAR99, which Sufficiency Jehad will be reviewed Organization; on a case-by- --IRGC Research and Self case basis. See Sufficiency Jehad Sec. Sec. Organization; 746.8(b) and --Self-Sufficiency Jihad 744.21(e). Organization; --IRGC's Arms and Military Equipment Self-Sufficiency Program; --IRGC Jihad Self- Sufficiency Organization; --Jihad Self-Sufficiency Organization of Islamic Revolution Iranian Revolutionary Guards; --Self Sufficiency Jihad Organization; --IRGC's Self-Sufficiency and Industrial Research Center; --IRGC's Self-Sufficiency and Industrial Research Centre; --IRGC Missile Research Center; --IRGC Self-Sufficiency Organization; and --IRGC's Research and Self- Sufficiency Organization. Tehran and Isfahan, Iran * * * * * Oje Parvaz Mado Nafar For all items Policy of denial 88 FR [INSERT FR Company, a.k.a., the subject to the for all items PAGE NUMBER], 2/ following three aliases: EAR. (See Sec. subject to the 1/2023. --Mado; Sec. EAR apart from --Owj Parvaz Mado Nafar 734.9(g),\3\ food and Company LLC; and 744.21(b) and medicine --Mado Company 746.8(a)(3) of the designated as No. 1106, 11 Hemmat Corner, EAR) EAR99, which Hemmat Square, Hemmat will be reviewed Boulevard, Shokuhieh on a case-by- Industrial Town, Qom, Qom case basis. See Province, 3718116354, Iran Sec. Sec. 746.8(b) and 744.21(e). * * * * * Paravar Pars Company, For all items Policy of denial 88 FR [INSERT FR a.k.a., the following six subject to the for all items PAGE NUMBER], 2/ aliases: EAR. (See Sec. subject to the 1/2023. --Paravar Pars Aerospace Sec. EAR apart from Research and Engineering 734.9(g),\3\ food and Services; 744.21(b) and medicine --Paravar Pars Aerospace 746.8(a)(3) of the designated as Research Institute; EAR) EAR99, which --Paravar Pars Engineering will be reviewed and Services Aerospace on a case-by- Research Company; case basis. See --Paravar Pars; Sec. Sec. --ParavarPars; and 746.8(b) and --Pravarpars Engineering 744.21(e). Research and Design Company 13 km of Shahid Babaei Highway, after Imam Hossein University, next to Telo Road, Tehran, Iran * * * * * Qods Aviation Industry, For all items Policy of denial 88 FR [INSERT FR a.k.a., the following eight subject to the for all items PAGE NUMBER], 2/ aliases: EAR. (See Sec. subject to the 1/2023. --Qods Aviation Industries; Sec. EAR apart from --Qoods Aviation Industries; 734.9(g),\3\ food and --Qhods Aviation Industries; 744.21(b) and medicine --Qods Aviation Industry; 746.8(a)(3) of the designated as --Qods Air Industries; EAR) EAR99, which --Ghods Aviation Industries; will be reviewed --Qods Research Center; and on a case-by- --Qods Aeronautics case basis. See Industries. Sec. Sec. Unit (or Suite) 207, Saleh 746.8(b) and Blvd, Tehran, Iran; and 744.21(e). Unit 207, Tarajit Maydane Taymori (or Teimori) Square, Basiri Building, Tarasht, Tehran, Iran; and P.O. Box 15875-1834, Km 5 Karaj Special Road, Tehran, Iran * * * * * [[Page 6624]] Shahed Aviation Industries, For all items Policy of denial 88 FR [INSERT FR a.k.a., the following five subject to the for all items PAGE NUMBER], 2/ aliases: EAR. (See Sec. subject to the 1/2023. --Shahed Aviation Industries Sec. EAR apart from Research Center; 734.9(g),\3\ food and --Shahed Aviation; 744.21(b) and medicine --Shahed Aviation Industries 746.8(a)(3) of the designated as Research; EAR) EAR99, which --Shahed Aviation Industries will be reviewed Research Centre; and on a case-by- --SAIRC. case basis. See Shahid Lavi Street, Sajad Sec. Sec. Street, Isfahan, Iran 746.8(b) and 744.21(e). * * * * * * * ---------------------------------------------------------------------------------------------------------------- * * * * * * * \3\ For this entity, ``items subject to the EAR'' includes foreign-produced items that are subject to the EAR under Sec. 734.9(g) of the EAR. See Sec. Sec. 746.8 and 744.21 of the EAR for related license requirements, license review policy, and restrictions on license exceptions. * * * * * * * Thea D. Rozman Kendler, Assistant Secretary for Export Administration. [FR Doc. 2023-02130 Filed 1-31-23; 8:45 am] BILLING CODE 3510-JT-P