[Federal Register Volume 89, Number 71 (Thursday, April 11, 2024)] [Rules and Regulations] [Pages 25503-25507] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 2024-07760] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF COMMERCE Bureau of Industry and Security 15 CFR Part 744 [Docket No. 240405-0101] RIN 0694-AJ57 Addition of Entities to and Revision of Entry on 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 11 entries to the Entity List, under the destinations of the Peoples Republic of China (China) (6), the Russian Federation (Russia) (3), and the United Arab Emirates (UAE) (2). These 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. This rule also modifies one existing entity on the Entity List under the destination of China. DATES: This rule is effective April 11, 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 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) of the EAR. 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. 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 Additions to the Entity List The ERC determined to add Khalaj Trading LLC and Mahdi Khalaj Amirhosseini, both under the destination of the UAE to the Entity List for engaging in the export and attempted export of items on the Commerce Control List (Supplement 1 to part 774 of the EAR) from the United States to Iran through the UAE, in apparent violation of the Iranian Transactions and Sanctions Regulations (ITSR) (see 31 CFR part 560) and the EAR. These activities are contrary to the national security and foreign policy interests of the United States under Sec. 744.11 of the EAR. The ERC determined to add LINKZOL (Beijing) Technology Co., Ltd. and Xi'an Like Innovative Information Technology Co., Ltd., both under the destination of China, to the Entity List for acquiring and attempting to acquire U.S.-origin items in support of China's military modernization efforts, including in support of Military-Intelligence End Users. The ERC also determined to add Beijing Anwise Technology Co., Ltd. and SITONHOLY (Tianjin) Co., Ltd., both under the destination of China, to the Entity List for acquiring and attempting to acquire U.S.-origin items in support of China's military modernization efforts. These activities are contrary to U.S. national security [[Page 25504]] and foreign policy interests under Sec. 744.11 of the EAR. The ERC determined to add Jiangxi Xintuo Enterprise Co. Ltd., under the destination of China, to the Entity List for supporting Russia's military through the procurement, development, and proliferation of Russian unmanned aerial vehicles (UAVs). This activity is contrary to the national security and foreign policy interests of the United States under Sec. 744.11. In addition, this entity qualifies as a military end user under Sec. 744.21(g) of the EAR. This entity is receiving a footnote 3 designation because the ERC has determined that it is a Russian or Belarusian `military end user' pursuant to Sec. 744.21 of the EAR. A footnote 3 designation subjects this entity to the Russia/ Belarus-Military End User Foreign Direct Product (FDP) rule, detailed in Sec. 734.9(g) of the EAR. The entity is added with a license requirement for all items subject to the EAR and a license review policy of denial for all items subject to the EAR apart from food and medicine designated as EAR99, which will be reviewed on a case-by-case basis. The ERC determined to add to the Entity List Aerosila JSC SPE, Delta-Aero LLC, and JSC ODK-Star, under the destination of Russia, and Shenzhen Jiasibo Technology Co., Ltd., under the destination of China, for working as a part of a network to procure aerospace components, including dual-use components for UAV applications, for the Iran Aircraft Manufacturing Industrial Company (HESA) in Iran. These components are used to develop and produce Shahed-series UAVs which have been used by Iran to attack oil tankers in the Middle East and by Russia in Ukraine. This activity is contrary to the national security and foreign policy interests of the United States under Sec. 744.11 and these entities qualify as military end users under Sec. 744.21(g) of the EAR. These entities are receiving a footnote 3 designation because the ERC has determined that they are Russian or Belarusian `military end users' pursuant to Sec. 744.21 and are subject to the Russia/Belarus-Military End User Foreign Direct Product (FDP) rule, detailed in Sec. 734.9(g) of the EAR. The entities are added with a license requirement for all items subject to the EAR and a license review policy of denial for all items subject to the EAR apart from food and medicine designated as EAR99, which will be reviewed on a case-by-case basis. For the reasons described above, this final rule adds the following 11 entities, including aliases where appropriate, to the Entity List: ChinaBeijing Anwise Technology Co., Ltd.; Jiangxi Xintuo Enterprise Co., Ltd.; LINKZOL (Beijing) Technology Co., Ltd.; Shenzhen Jiasibo Technology Co., Ltd.; SITONHOLY (Tianjin) Co., Ltd.; and Xi'an Like Innovative Information Technology Co., Ltd. Russia Aerosila JSC SPE; Delta-Aero LLC; and JSC ODK-Star. United Arab Emirates Khalaj Trading LLC; and Mahdi Khalaj Amirhosseini. Modifications to the Entity List This final rule implements the decision of the ERC to modify one existing entry on the Entity List under the destination of China. Specifically, the ERC determined to add one alias to the entry for Shanghai Biren Intelligent Technology Co., Ltd., for a total of three aliases. 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 April 11, 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 May 13, 2024. Any such items not actually exported, reexported or transferred (in- country) before midnight, on May 13, 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 an information collection approved by OMB under control number 0694-0088, Simplified Network Application Processing System. BIS does not anticipate a change to the burden hours associated with this collection as a result of this rule. Information regarding the collection, including all supporting materials, can be accessed at https://www.reginfo.gov/public/do/PRAMain. 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--END-USE AND END-USER CONTROLS 0 1. The authority citation for part 744 is revised 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 [[Page 25505]] 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 is amended by: 0 a. Under CHINA, PEOPLE'S REPUBLIC OF, 0 i. Adding, in alphabetical order, entries for ``Beijing Anwise Technology Co., Ltd.;'' ``Jiangxi Xintuo Enterprise Co., Ltd.;'' ``LINKZOL (Beijing) Technology Co., Ltd.;'' and 0 ii. Revising the entry for ``Shanghai Biren Intelligent Technology Co., Ltd.;'' and 0 iii. Adding, in alphabetical order, entries for ``Shenzhen Jiasibo Technology Co., Ltd.;'' ``SITONHOLY (Tianjin) Co., Ltd.;'' and ``Xi'an Like Innovative Information Technology Co., Ltd.;'' and 0 b. Under RUSSIA, adding entries in alphabetical order for ``Aerosila JSC SPE;'' ``Delta-Aero LLC;'' and ``JSC ODK-Star;'' and 0 c. Under UNITED ARAB EMIRATES, adding entries in alphabetical order for ``Khalaj Trading LLC;'' and ``Mahdi Khalaj Amirhosseini.'' The revision and additions read as follows: Supplement No. 4 to Part 744--Entity List * * * * * ---------------------------------------------------------------------------------------------------------------- License Federal Register Country Entity requirement License review policy citation ---------------------------------------------------------------------------------------------------------------- * * * * * * * ---------------------------------------------------------------------------------------------------------------- CHINA, PEOPLES * * * * * * REPUBLIC OF. Beijing Anwise Technology For all items Presumption of denial.. 89 FR [INSERT FR Co., Ltd., a.k.a., the subject to the PAGE NUMBER], 4/ following one alias: EAR. (See Sec. 11/2024. --Anwise Global. 744.11 of the EAR). A02, Idea Park, MingJi International Center, No. 35 Da Huang Zhuang, Chao Yang District, Beijing, China; and Room 8112, 8th Floor, Building 3, Yard 30, Shixing Street, Shijingshan District, Beijing, China. * * * * * * Jiangxi Xintuo Enterprise For all items Policy of denial for 89 FR [INSERT FR Co. Ltd., a.k.a., the subject to the all items subject to PAGE NUMBER], 4/ following one alias: EAR (See Sec. the EAR apart from 11/2024. --T-MOTOR. Sec. food and medicine Room 2103, No. 39 734.9(g),\3\ designated as EAR99, Commercial Building, 746.8(a)(3), which will be reviewed Greenland New Metropolis, and 744.21(b) on a case-by-case Ziyang, Avenue, High-tech of the EAR). basis. See Sec. Sec. Industrial Development 746.8(b) and Zone, Nanchang City, 744.21(e). Jiangxi Province, China; and Rooms 2405, 2406, 2407, 24th Floor, B# Office Building, Yunzhongcheng, No. 3399 Ziyang Avenue, Nanchang High-tech Industrial Development Zone, Nanchang City, Jiangxi Province, China; and No. 888 Tianxiang Avenue, Nanchang City, Jiangxi Province, China. * * * * * * LINKZOL (Beijing) For all items Presumption of denial.. 89 FR [INSERT FR Technology Co., Ltd., subject to the PAGE NUMBER], 4/ a.k.a., the following one EAR. (See Sec. 11/2024. alias: 744.11 of the --Lianzhong Cluster EAR). (Beijing) Technology Co., Ltd. Room 701, Floor 7, Building 6, No. 1 Chaoqian Road, Science and Technology Park, Changping District, Beijing, China; and Floor 6, Building 6, Beijing Enterprises Hongchuang Technology Park, No. 1 Chaoqian Road, Science and Technology Park, Changping District, Beijing (Changping Department), China; and E-1201, Wuhan Living Room, No. 8 Hongtu Avenue, Dongxihu District, Wuhan, Hubei (Wuhan Department), China; and C- 2701, Wuhan Living Room, No. 8 Hongtu Avenue, Dongxihu District, Wuhan, Hubei (Wuhan Department), China; and Room 941, Building 1, Yard 62, Balizhuang, Haidian District, Beijing (Haidian Department), China. * * * * * * Shanghai Biren Intelligent For all items Presumption of denial.. 88 FR 71992 10/ Technology Co., Ltd., subject to the 19/2023. a.k.a., the following EAR. (See Sec. 89 FR [INSERT FR three aliases: Sec. PAGE NUMBER], 4/ --Biren; 734.9(e)(2) and 11/2024. --Biren Technology; and 744.11 of the --Shanghai Biren EAR) \4\. Technology. Building 16, Room 1302, 13th Floor, No. 2388 Chenhang Highway, Minhang District, Shanghai, China. * * * * * * [[Page 25506]] Shenzhen Jiasibo Technology For all items Policy of denial for 89 FR [INSERT FR Co., Ltd., a.k.a., the subject to the all items subject to PAGE NUMBER], 4/ following one alias: EAR (See Sec. the EAR apart from 11/2024. --SHENZHEN JIA SIBO SCIENCE Sec. food and medicine AND TECHNOLOGY CO., LTD. 734.9(g),\3\ designated as EAR99, No. 57, Busha Road, Buji, 746.8(a)(3), which will be reviewed Longgang, Shenzhen, China. and 744.21(b) on a case-by-case of the EAR). basis. See Sec. Sec. 746.8(b) and 744.21(e). * * * * * * SITONHOLY (Tianjin) Co., For all items Presumption of denial.. 89 FR [INSERT FR Ltd., No. 1 Cuipu Road, subject to the PAGE NUMBER], 4/ Yixian Science Industrial EAR. (See Sec. 11/2024. Park, Tianjin Economic and 744.11 of the Technological Development EAR). Zone, Tianjin, China. * * * * * * Xi'an Like Innovative For all items Presumption of denial.. 89 FR [INSERT FR Information Technology subject to the PAGE NUMBER], 4/ Co., Ltd., Floor 12, EAR. (See Sec. 11/2024. Building 1, Greenland Lehe 744.11 of the City, South Second Ring EAR). Road, Beilin District, Xi'an City, Shaanxi Province, China; and Room 2914, Building 1, No. 323, East Section of Second Ring South Road, Beilin District, Xi'an City, Shaanxi Province, China. * * * * * * ---------------------------------------------------------------------------------------------------------------- RUSSIA................ * * * * * * Aerosila JSC SPE, a.k.a., For all items Policy of denial for 89 FR [INSERT FR the following three subject to the all items subject to PAGE NUMBER], 4/ aliases: EAR (See Sec. the EAR apart from 11/2024. --JSC SPE AEROSILA; Sec. food and medicine --NPP AEROSILA, AO; and 734.9(g),\3\ designated as EAR99, -NPP AEROSILA, PPO. 746.8(a)(3), which will be reviewed 6, Zhdanov St., Stupino, and 744.21(b) on a case-by-case Moscow Region, 142800, of the EAR). basis. See Sec. Sec. Russia. 746.8(b) and 744.21(e). * * * * * * Delta-Aero LLC, a.k.a., the For all items Policy of denial for 89 FR [INSERT FR following two aliases: subject to the all items subject to PAGE NUMBER], 4/ --LLC TSTO ``Delta-Aero''; EAR (See Sec. the EAR apart from 11/2024. and Sec. food and medicine --DELTA-AERO TECHNICAL 734.9(g),\3\ designated as EAR99, SERVICE CENTER LLC. 746.8(a)(3), which will be reviewed 4, Kyiv Highway 22 km, and 744.21(b) on a case-by-case Building 1, Floor 6, Room of the EAR). basis. See Sec. Sec. 620 A/37, Moscow, 108511, 746.8(b) and Russia; and 68/70 Butyrsky 744.21(e). Val Street, 1st Floor, Room 110, Baker Plaza Business Center, Moscow, 127055, Russia. * * * * * * JSC ODK-Star, a.k.a., the For all items Policy of denial for 89 FR [INSERT FR following two aliases: subject to the all items subject to PAGE NUMBER], 4/ --JSC ``UEC-STAR''; and EAR (See Sec. the EAR apart from 11/2024. --AO ODK-STAR. Sec. food and medicine 140A, Kuibysheva Street, 734.9(g),\3\ designated as EAR99, Perm, 614990, Russia. 746.8(a)(3), which will be reviewed and 744.21(b) on a case-by-case of the EAR). basis. See Sec. Sec. 746.8(b) and 744.21(e). * * * * * * ---------------------------------------------------------------------------------------------------------------- UNITED ARAB EMIRATES.. * * * * * * Khalaj Trading LLC, For all items Presumption of denial.. 89 FR [INSERT FR 2604 Tower A, Bin Ham subject to the PAGE NUMBER], 4/ Towers, Altaawun St., EAR (See Sec. 11/2024. Sharjah, U.A.E.; and #4 744.11 of the Street # 6-A, Karama Area, EAR). Bur Dubai, Dubai, U.A.E. * * * * * * Mahdi Khalaj Amirhosseini, For all items Presumption of denial.. 89 FR [INSERT FR 2604 Tower A, Bin Ham subject to the PAGE NUMBER], 4/ Towers, Altaawun St., EAR (See Sec. 11/2024. Sharjah, U.A.E.; and #4 744.11 of the Street # 6-A, Karama Area, EAR). Bur Dubai, Dubai, U.A.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. \4\ For this entity, ``items subject to the EAR'' includes foreign-produced items that are subject to the EAR under Sec. 734.9(e)(2) of the EAR. See Sec. 744.11(a)(2)(ii) for related license requirements and license review policy. [[Page 25507]] Thea D. Rozman Kendler, Assistant Secretary for Export Administration. [FR Doc. 2024-07760 Filed 4-10-24; 8:45 am] BILLING CODE 3510-33-P