[Federal Register Volume 89, Number 39 (Tuesday, February 27, 2024)]
[Rules and Regulations]
[Pages 14403-14407]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-03674]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 744

[Docket No. 240215-0049]
RIN 0694-AJ53


Additions of Entities, Revisions of Entries, and Removal of an 
Entity From the Entity List

AGENCY: Bureau of Industry and Security, Department of Commerce.

ACTION: Final rule.

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SUMMARY: The Bureau of Industry and Security is amending the Export 
Administration Regulations (EAR) by adding two entities under seven 
entries to the Entity List. These entities are listed under the 
destinations of Canada (1), the People's Republic of China (China) (1), 
India (1), Japan (1), Malaysia (1), Sweden (1), and the United Arab 
Emirates (UAE) (1). Some entities are added under multiple entries, 
accounting for the difference in the totals. This final rule also 
modifies two

[[Page 14404]]

existing entries on the Entity List under the destination of China. 
This final rule removes one entity under the destination of the UAE.

DATES: This rule is effective February 27, 2024.

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) where 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 adds the entity 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.

Additions to the Entity List

    The ERC determined to add Chengdu Beizhan Electronics Co. Ltd., to 
the Entity List under the destination of China for acquiring and 
attempting to acquire U.S.-origin items on behalf of the University of 
Electronic Science and Technology, an entity on the BIS Entity List. 
These activities are contrary to U.S. national security and foreign 
policy interests under Sec.  744.11 of the EAR. This entity is added 
with a license requirement for all items subject to the EAR. The entity 
is added with a license review policy of a presumption of denial.
    The ERC determined to add Sandvine Incorporated, under the 
destinations of Canada, India, Japan, Malaysia, Sweden, and the United 
Arab Emirates to the Entity List. This addition is being made based on 
information that Sandvine supplies deep packet inspection technology to 
the Government of Egypt, where it is used in mass web-monitoring and 
censorship to block news as well as target political actors and human 
rights activists. These activities are contrary to the national 
security and foreign policy interests of the United States under Sec.  
744.11 of the EAR. These entities are added with a license requirement 
for all items subject to the EAR. They are added with a license review 
policy of a presumption of denial.
    For the reasons described above, this final rule adds the following 
2 entities under 7 entries to the Entity List and includes, where 
appropriate, aliases:
Canada
     Sandvine Incorporated.
China
     Chengdu Beizhan Electronics Co., Ltd.
India
     Sandvine Incorporated.
Japan
     Sandvine Incorporated.
Malaysia
     Sandvine Incorporated.
Sweden
     Sandvine Incorporated.
United Arab Emirates
     Sandvine Incorporated.

Modifications to the Entity List

    This final rule implements the decision of the ERC to modify two 
existing entries on the Entity List, both under the destination of 
China. The ERC determined to revise the entry for Beijing China 
Aviation Technology Co., Ltd., by adding an alias to the entry for a 
total of five aliases. In addition, the ERC determined to revise the 
entry for Rayscience Optoelectronics Innovation Co., Ltd., to add one 
alias and one additional address.

Removal From the Entity List

    The ERC determined to remove Jazirah Aviation Club under the 
destination of the UAE from the Entity List based on the review the ERC 
conducted in accordance with the procedures described in supplement no. 
5 to part 744 of the EAR.

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 February 27, 2024, 
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 28, 2024. Any such items not actually exported, reexported 
or transferred (in-country) before midnight, on March 28, 2024, 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 (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 29.4 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

[[Page 14405]]

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.

    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 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 November 8, 2022, 87 FR 68015, 3 CFR, 2022 Comp., p. 563; Notice 
of September 7, 2023, 88 FR 62439 (September 11, 2023).


0
2. Supplement No. 4 to part 744 is amended by:
0
a. Under CANADA, adding an entry in alphabetical order for ``Sandvine 
Incorporated;''
0
b. Under CHINA, PEOPLE'S REPUBLIC OF:
0
i. Revising the entry for ``Beijing China Aviation Technology Co., 
Ltd.;'' and
0
ii. Adding an entry in alphabetical order for ``Chengdu Beizhan 
Electronics Co., Ltd.;'' and
0
iii. Revising the entry for ``Rayscience Optoelectronics Innovation 
Co., Ltd.;''
0
c. Under INDIA, adding an entry in alphabetical order for ``Sandvine 
Incorporated;''
0
d. Under JAPAN, adding an entry in alphabetical order for ``Sandvine 
Incorporated;''
0
e. Under MALAYSIA, adding an entry in alphabetical order for ``Sandvine 
Incorporated;''
0
f. Under SWEDEN adding an entry in alphabetical order for ``Sandvine 
Incorporated;''
0
g. Under UNITED ARAB EMIRATES:
0
i. Removing the entry for ``Jazirah Aviation Club;'' and
0
ii. Adding an entry in alphabetical order for ``Sandvine 
Incorporated.''
    The revisions and additions 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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CANADA.................                                         * * * * * *
                         Sandvine Incorporated,        For all items       Presumption of      89 FR [INSERT FR
                          a.k.a., the following one     subject to the      denial.             PAGE NUMBER AND
                          alias:                        EAR (See Sec.                           February 27,
                         --Sandvine Inc.                744.11 of the                           2024.
                         408 Albert St., Suite 201,     EAR).
                          Waterloo, Ontario, N2l 3V3,
                          Canada. (See alternate
                          addresses under India,
                          Japan, Malaysia, Sweden,
                          and the United Arab
                          Emirates)
                                                                * * * * * *
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                                                  * * * * * * *
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                                                                * * * * * *
CHINA, PEOPLE'S          Beijing China Aviation        For all items       Presumption of      88 FR 38741, 06/
 REPUBLIC OF.             Technology Co., Ltd.,         subject to the      denial.             12/23.
                          a.k.a. the following five     EAR. (See Sec.                         89 FR [INSERT FR
                          aliases:                      744.11 of the                           PAGE NUMBER
                         --BCAT Aviation;               EAR).                                   February 27,
                         --B-CAT;                                                               2024.
                         --BCAT;
                         --Beijing Zhongxun
                          Technology Co., Ltd.; and
                         --Stratos.
                         No. 18, Kaixuan Street,
                          Liangxiang District,
                          Fangshan District, Beijing,
                          D3768, China; and No. 18,
                          Cailida Road, Liang Tang
                          Street, Liangxiang
                          District, Fangshan
                          District, Beijing, China;
                          and Beijing Yizhuang
                          Economic and Technological
                          Development Zone No. 29
                          Council of Hai Second Road
                          Zhongxing Science and
                          Technology Park, China.
                                                                * * * * * *
                         Chengdu Beizhan Electronics   For all items       Presumption of      89 FR [INSERT FR
                          Co., Ltd., a.k.a, the         subject to the      denial.             PAGE NUMBER
                          following two aliases:        EAR. (See Sec.                          February 27,
                         --Chengdu Beizhang             744.11 of the                           2024.
                          Electronics Co.; and          EAR).
                         --Chengdu North China
                          Electronics Co., Ltd.

[[Page 14406]]

 
                         Rm. 203, Yifu Building,
                          University of Electronic
                          Science and Technology of
                          China, No. 4, Section 2
                          North Jianshe Road,
                          Chengdu, 610054, China; and
                          No. 923, Bin Fen/Bifen
                          Holiday International,
                          Building No 2, Baisi
                          Street, Qing Yang District,
                          Chengdu, 610054, China; and
                          Room 906, Block B, Oaks
                          Plaza, No. 666, Jincheng
                          Avenue, High-tech Zone,
                          Chengdu, 610054, China.
                                                                * * * * * *
                         Rayscience Optoelectronics    For all items       See Sec.            89 FR [INSERT FR
                          Innovation Co., Ltd.,         subject to the      744.3(d) of the     PAGE NUMBER
                          a.k.a., the following one     EAR. (See Sec.      EAR88 FR 13675, 3/  February 27,
                          alias:                        744.11 of the       6/23..              2024.
                         --Collective Enterprise        EAR).
                          Limited.
                         3rd Floor, Building 47, No.
                          2338, Duhui Road, Minhang
                          District, Shanghai, China;
                          and 5F, Building 21, Douhui
                          Road 2338 Lane, Shanghai,
                          China; and Ste. 306,
                          Building 1, Shennan Road
                          59, Shanghai, China; and
                          Unit 3A, 5F, Far East
                          Consortium Building 21 Des
                          Voeux Road Central HK01,
                          Hong Kong; and Flat B 607,
                          6/F Jumbo Industrial
                          Building, Hong Kong; and
                          Room 2107, 21/F CCWU
                          Building, 302-308 Hennessy
                          Road, Wanchai, Hong Kong.
                                                                * * * * * *
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                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
INDIA..................                                         * * * * * *
                         Sandvine Incorporated,        For all items       Presumption of      89 FR [INSERT FR
                          a.k.a., the following one     subject to the      denial.             PAGE NUMBER
                          alias:                        EAR (See Sec.                           February 27,
                         --Sandvine Inc.                744.11 of the                           2024.
                         Arliga Ecoworld, Building-1,   EAR).
                          Ground Floor, East Wing
                          Devarabeesanahalli,
                          Bellandur, Outer Ring Road,
                          Bangalore, 560103, India.
                          (See alternate addresses
                          under Canada, Japan,
                          Malaysia, Sweden, and the
                          United Arab Emirates)
                                                                * * * * * *
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
JAPAN..................                                         * * * * * *
                         Sandvine Incorporated,        For all items       Presumption of      89 FR [INSERT FR
                          a.k.a., the following one     subject to the      denial.             PAGE NUMBER
                          alias:                        EAR (See Sec.                           February 27,
                         --Sandvine Inc.                744.11 of the                           2024.
                         6F PO Higashi Shimbashi, 2-    EAR).
                          12-1 Higashi Shimbashi,
                          Minato-ku, Tokyo, 105-0021,
                          Japan. (See alternate
                          addresses under Canada,
                          India, Malaysia, Sweden,
                          and the United Arab
                          Emirates)
                                                                * * * * * *
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
MALAYSIA...............                                         * * * * * *
                         Sandvine Incorporated,        For all items       Presumption of      89 FR [INSERT FR
                          a.k.a., the following one     subject to the      denial.             PAGE NUMBER
                          alias:                        EAR (See Sec.                           February 27,
                         --Sandvine Inc.                744.11 of the                           2024.
                         E-13A-19, 20 & 21, Block E,    EAR).
                          Plaza Mont Kiara, Mont
                          Kiara, Kualu Lumpur, 50480,
                          Malaysia. (See alternate
                          addresses under Canada,
                          India, Japan, Sweden, and
                          the United Arab Emirates)
                                                                * * * * * *
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
SWEDEN.................                                         * * * * * *
                         Sandvine Incorporated,        For all items       Presumption of      89 FR [INSERT FR
                          a.k.a., the following one     subject to the      denial.             PAGE NUMBER
                          alias:                        EAR (See Sec.                           February 27,
                         --Sandvine Inc.                744.11 of the                           2024.
                         Neptunigatan 1, 211 20,        EAR).
                          Malmo, Sweden and
                          Svardfiskgatan 4, 432 40,
                          Varberg, Sweden. (See
                          alternate addresses under
                          Canada, India, Japan,
                          Malaysia, and the United
                          Arab Emirates)

[[Page 14407]]

 
                                                                * * * * * *
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                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
UNITED ARAB EMIRATES...                                         * * * * * *
                         Sandvine Incorporated,        For all items       Presumption of      89 FR [INSERT FR
                          a.k.a., the following one     subject to the      denial.             PAGE NUMBER
                          alias:                        EAR (See Sec.                           February 27,
                         --Sandvine Inc.                744.11 of the                           2024.
                         Business Central Tower, A      EAR).
                          BLOCK, 28th floor, Office
                          No. 2805/06/07/08, Dubai
                          Media City, United Arab
                          Emirates. (See alternate
                          addresses under Canada,
                          India, Japan, and
                          Malaysia.)
                                                                * * * * * *
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Thea D. Rozman Kendler,
Assistant Secretary for Export Administration.
 [FR Doc. 2024-03674 Filed 2-26-24; 8:45 am]
 BILLING CODE 3510-33-P