[Federal Register Volume 89, Number 128 (Wednesday, July 3, 2024)]
[Rules and Regulations]
[Pages 55033-55036]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-14635]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 744

[Docket No. 240621-0171]
RIN 0694-AJ66


Addition of Entities and Revision of Entries on the Entity List

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

ACTION: Final rule.

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SUMMARY: In this rule, the Bureau of Industry and Security (BIS) amends 
the Export Administration Regulations (EAR) by adding six entries to 
the Entity List, under the destinations of the People's Republic of 
China (China) (2), South Africa (1), the United Arab Emirates (UAE) 
(2), and the United Kingdom (1). 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 
two existing entities on the Entity List, one under the destination of 
China and one under the destination of Russia.

DATES: This rule is effective July 3, 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 through 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

[[Page 55034]]

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 Global Training Solutions Limited and 
Smartech Future Limited, both under the destination of China, Grace Air 
(Pty) Ltd. under the destination of South Africa, and Livingston 
Aerospace Ltd., under the destination of the United Kingdom, to the 
Entity List. These entities are listed because of their links to the 
Test Flying Academy of South Africa (TFASA) and the training of China's 
military forces using Western and North Atlantic Treaty Organization 
(NATO) sources. TFASA was added to the Entity List on June 12, 2023 (88 
FR 38739, June 14, 2023). This activity is 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 two entities, Mega Fast Cargo LLC, and 
Mega Technique General Trading, both under the destination of the UAE, 
to the Entity List. These additions are being made because these 
entities repeatedly engaged in dilatory or evasive conduct, including 
the provision of false, misleading, or incomplete information, during 
end-use checks. In addition, Mega Fast Cargo LLC has engaged in 
shipments of U.S.-origin commodities to Russia since Russia's further 
invasion of Ukraine in February 2022. This activity is contrary to U.S. 
national security and foreign policy interests under Sec.  744.11 of 
the EAR.
    For these six entities, BIS imposes a license requirement for all 
items subject to the EAR and will review license applications under a 
presumption of denial. For the reasons described above, this final rule 
adds the following six entities, including aliases where appropriate, 
to the Entity List:

China

     Global Training Solutions Limited; and
     Smartech Future Limited.

South Africa

     Grace Air (Pty) Ltd.

United Arab Emirates

     Mega Fast Cargo LLC; and
     Mega Technique General Trading.

United Kingdom

     Livingston Aerospace Ltd.

Modifications to the Entity List

    This final rule implements the decision of the ERC to modify two 
existing entries on the Entity List. Specifically, the ERC determined 
to add three aliases to the entity Tenco Technology Company Ltd., under 
the destination of China, for a total of seven aliases. In addition, 
the ERC determined to revise the entry for Systems of Biological 
Synthesis LLC, under the destination of Russia, by adding one address 
for a total of two addresses.

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 July 3, 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 August 2, 2024. 
Any such items not actually exported, reexported or transferred (in-
country) before midnight, on August 2, 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

    Administrative practice and procedure, Exports, Reporting and 
recordkeeping requirements, Terrorism.

    Accordingly, part 744 of the Export Administration Regulations (15 
CFR parts 730 through 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.

[[Page 55035]]

783; E.O. 13224, 66 FR 49079, 3 CFR, 2001 Comp., p. 786; Notice of 
September 7, 2023, 88 FR 62439 (September 11, 2023); Notice of 
November 1, 2023, 88 FR 75475 (November 3, 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 ``Global Training 
Solutions Limited'' and ``Smartech Future Limited;'' and
0
ii. Revising the entry for ``Tenco Technology Company Ltd.;''
0
b. Under RUSSIA, revising the entry for ``Systems of Biological 
Synthesis LLC;''
0
c. Under SOUTH AFRICA, adding, in alphabetical order, an entry for 
``Grace Air (Pty) Ltd;''
0
d. Under UNITED ARAB EMIRATES, adding, in alphabetical order, entries 
for ``Mega Fast Cargo LLC'' and ``Mega Technique General Trading;'' and
0
e. Under UNITED KINGDOM, adding, in alphabetical order, an entry for 
``Livingston Aerospace Ltd.''
    The revision and additions read as follows:

Supplement No. 4 to Part 744--Entity List

* * * * *

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                                                          License                               Federal Register
        Country                    Entity               requirement     License review policy       citation
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                                                  * * * * * * *
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CHINA, PEOPLE'S                                                * * * * * *
 REPUBLIC OF.
                        Global Training Solutions    For all items     Presumption of denial..  89 FR [INSERT FR
                         Limited, 8 Ng Fong Street,   subject to the                             PAGE NUMBER] 7/
                         11/F Lee Ka Industrial       EAR. (See Sec.                             3/2024.
                         Building, Room 32, San Po     744.11 of the
                         Kong, Kowloon, Hong Kong.    EAR).
                                                               * * * * * *
                        Smartech Future Limited,     For all items     Presumption of denial..  89 FR [INSERT FR
                         a.k.a., the following one    subject to the                             PAGE NUMBER] 7/
                         alias:                       EAR. (See Sec.                             3/2024.
                        --Balloons SMT.                744.11 of the
                        29 Luk Hop Street, Wang Fai   EAR).
                         Industrial Building, 11/F,
                         Room 8, Hong Kong; and 253-
                         261 Hennessy Road, Easey
                         Commercial Building, Room
                         1502, Wan Chai, Hong Kong.
                                                               * * * * * *
                        Tenco Technology Company     For all items     Presumption of denial..  84 FR 21236, 5/
                         Ltd., a.k.a., the            subject to the                             14/19. 85 FR
                         following seven aliases:     EAR. (See Sec.                             83769, 12/23/
                        --Redd Forest Technology       744.11 of the                             20. 87 FR
                         Company Limited;             EAR).                                      77508, 12/19/
                        --Shenzhen Shengfaweiye                                                  22. 89 FR
                         Electronic Co., Ltd.;                                                   [INSERT FR PAGE
                        --Shenzhen Tenco Technology                                              NUMBER] 7/3/
                         Co., Ltd.;                                                              2024.
                        --Tenco International Co.,
                         Ltd.;
                        --Shenzhen Qianhai Yikeshu
                         Industrial Company
                         Limited;
                        --Shenzhen Yikeshu Shiye
                         You Xia; and
                        --Shenzhen Yikeshu Shiye
                         You Xian.
                        Jiahe Huaqiang Building,
                         Shennan Middle Road, Room
                         2709, Block A, Futian
                         District, Shenzhen,
                         Guangdong, 518007, China;
                         and Jiahe Building,
                         Shennan Mid Road, Room
                         2709, Block A, Futian
                         District, Shenzhen,
                         518000, China; and 56 Hoi
                         Yuen Road, Kwun Kowloon,
                         Room 311 3F Genplas
                         Industrial Building, Hong
                         Kong; and 8 Lam Lok
                         Street, Room 15, 6F
                         Corporation Square,
                         Kowloon Bay, Hong Kong;
                         and Longhua Street, Room
                         801, Number 15, Building
                         14, Xiayousong Village,
                         Longhua District,
                         Shenzhen, 518000, China
                         and No.1 Qianhaiwan 1
                         Road, Room 201 Block A,
                         Shenzhen, China.
                                                               * * * * * *
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RUSSIA................                                         * * * * * *
                        Systems of Biological        For all items     Policy of denial.......  87 FR 34157, 6/6/
                         Synthesis LLC., a.k.a.,      subject to the                             22. 89 FR
                         the following three          EAR. (See Sec.                             [INSERT FR PAGE
                         aliases:                      744.11 of the                             NUMBER] 7/3/
                        --Sistemy Biologicheskogo     EAR).                                      2024.
                         Sinteza;
                        --OOO SBS; and
                        --SBS LLC.
                        Akademika Koroleva Street,
                         Building 13/1, Office 35-
                         39, Moscow, 129515, Russia
                         and Akademika Koroleva
                         Street, Building 13/1,
                         Floor 2, Offices 60-61,
                         Moscow, 129515, Russia.
                                                               * * * * * *
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SOUTH AFRICA..........                                         * * * * * *
                        Grace Air (Pty) Ltd, Hangar  For all items     Presumption of denial..  89 FR [INSERT FR
                         1, Anderson Street,          subject to the                             PAGE NUMBER] 7/
                         Oudtshoorn Air Field,        EAR. (See Sec.                             3/2024.
                         Western Cape, Oudtshoorn,     744.11 of the
                         6620, South Africa and 477   EAR).
                         Witherite Road, Pretoria,
                         South Africa.

[[Page 55036]]

 
                                                               * * * * * *
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UNITED ARAB EMIRATES..                                         * * * * * *
                        Mega Fast Cargo LLC, #405,   For all items     Presumption of denial..  89 FR [INSERT FR
                         Floor 4, Nasseriya           subject to the                             PAGE NUMBER] 7/
                         Building, 1st Industrial     EAR. (See Sec.                             3/2024.
                         Area, Al Qusais, Dubai,       744.11 of the
                         United Arab Emirates; and    EAR).
                         Riqaa Al Buteen Plaza
                         Building, Dubai, United
                         Arab Emirates; and Al
                         Maktoum Rd., Dubai, United
                         Arab Emirates and P.O Box:
                         238930, Bin Al Fahed
                         Building, No. 3 Room 203,
                         2nd Floor, Industrial Area
                         1, Alqusais, Dubai, United
                         Arab Emirates.
                        Mega Technique General       For all items     Presumption of denial..  89 FR [INSERT FR
                         Trading, P.O. Box 60049,     subject to the                             PAGE NUMBER] 7/
                         Al Qusais, Nasseriya         EAR. (See Sec.                             3/2024.
                         Building, Dubai, United       744.11 of the
                         Arab Emirates.               EAR).
                                                               * * * * * *
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
UNITED KINGDOM........                                         * * * * * *
                        Livingston Aerospace Ltd.,   For all items     Presumption of denial..  89 FR [INSERT FR
                         Dock Cottage, Bullo Pill,    subject to the                             PAGE NUMBER] 7/
                         Gloucestershire, GL14 1ED,   EAR. (See Sec.                             3/2024.
                         United Kingdom and 23         744.11 of the
                         Cleveland Road, Lytham,      EAR).
                         Lytham St Annes,
                         Lancashire, FY8 5JH,
                         United Kingdom.
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Matthew S. Borman,
Principal Deputy Assistant Secretary for Export Administration.
[FR Doc. 2024-14635 Filed 7-2-24; 8:45 am]
BILLING CODE 3510-33-P