Addition of Certain Persons on the Entity List: Addition of Persons Acting Contrary to the National Security or Foreign Policy Interests of the United States, 44259-44262 [2011-18718]
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Federal Register / Vol. 76, No. 142 / Monday, July 25, 2011 / Rules and Regulations
procedures eliminates the need of
controlled airspace. Since this action
eliminates the impact of controlled
airspace on users of the National
Airspace System in the vicinity of
Willow Grove, PA, notice and public
procedures under 5 U.S.C. 553(b) are
unnecessary.
Class D and Class E airspace
designations are published in
Paragraphs 5000, 6004, respectively, of
FAA Order 7400.9U, dated August 15,
2010, and effective September 15, 2010,
which is incorporated by reference in 14
CFR 71.1. The Class D and E airspace
designations listed in this document
will be published subsequently in the
Order.
The FAA has determined that this
regulation only involves an established
body of technical regulations for which
frequent and routine amendments are
necessary to keep them operationally
current. It, therefore, (1) is not a
‘‘significant regulatory action’’ under
Executive Order 12866; (2) is not a
‘‘significant rule’’ under DOT
Regulatory Policies and Procedures (44
FR 11034; February 26, 1979); and (3)
does not warrant preparation of a
Regulatory Evaluation as the anticipated
impact is so minimal. Since this is a
routine matter that will only affect air
traffic procedures and air navigation, it
is certified that this rule, when
promulgated, would not have a
significant economic impact on a
substantial number of small entities
under the criteria of the Regulatory
Flexibility Act.
The FAA’s authority to issue rules
regarding aviation safety is found in
Title 49 of the United States Code.
Subtitle I, Section 106 describes the
authority of the FAA Administrator.
Subtitle VII, Aviation Programs,
describes in more detail the scope of the
agency’s authority.
This rulemaking is promulgated
under the authority described in
Subtitle VII, Part, A, Subpart I, Section
40103. Under that section, the FAA is
charged with prescribing regulations to
assign the use of airspace necessary to
ensure the safety of aircraft and the
efficient use of airspace. This regulation
is within the scope of that authority as
it removes controlled airspace at Willow
Grove, PA.
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Lists of Subjects in 14 CFR Part 71
Airspace, Incorporation by reference,
Navigation (air).
Adoption of the Amendment
In consideration of the foregoing, the
Federal Aviation Administration
amends 14 CFR Part 71 as follows:
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PART 71—DESIGNATION OF CLASS A,
B, C, D, AND E AIRSPACE AREAS; AIR
TRAFFIC SERVICE ROUTES; AND
REPORTING POINTS
1. The authority citation for Part 71
continues to read as follows:
■
Authority: 49 U.S.C. 106(g); 40103, 40113,
40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959–
1963 Comp., p. 389.
§ 71.1
[Amended]
2. The incorporation by reference in
14 CFR 71.1 of Federal Aviation
Administration Order 7400.9U,
Airspace Designations and Reporting
Points, signed August 18, 2010, and
effective September 15, 2010, is
amended as follows:
■
Paragraph 5000
Class D Airspace
*
*
*
AEA PA D
*
*
Willow Grove, PA [Removed]
Paragraph 6004 Class E airspace designated
as an extension to a Class D surface area.
*
*
AEA PA E4
*
*
*
Willow Grove, PA [Removed]
Issued in College Park, Georgia, on July 15,
2011.
Mark D. Ward,
Manager, Operations Support Group, Eastern
Service Center, Air Traffic Organization.
[FR Doc. 2011–18667 Filed 7–22–11; 8:45 am]
BILLING CODE 4910–13–P
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Part 744
[Docket No. 110502273–1368–01]
RIN 0694–AF21
AGENCY: Bureau of Industry and
Security, Commerce.
ACTION: Final rule.
SUMMARY: This rule amends the Export
Administration Regulations (EAR) by
adding six persons to the Entity List
(Supplement No. 4 to Part 744) on the
basis of section 744.11 of the EAR. The
persons who are added to the Entity List
have been determined by the U.S.
Government to be acting contrary to the
national security or foreign policy
interests of the United States. These
persons will be listed under the
following two destinations on the Entity
List: Hong Kong and Lebanon.
Frm 00015
Fmt 4700
The Entity List provides notice to the
public that certain exports, reexports,
and transfers (in-country) to parties
identified on the Entity List require a
license from the Bureau of Industry and
Security (BIS) and that availability of
license exceptions in such transactions
is limited.
DATES: Effective Date: This rule is
effective July 25, 2011.
FOR FURTHER INFORMATION CONTACT:
Karen Nies-Vogel, Chair, End-User
Review Committee, Office of the
Assistant Secretary, Export
Administration, Bureau of Industry and
Security, Department of Commerce,
Phone: (202) 482–5991, Fax: (202) 482–
3911, E-mail: ERC@bis.doc.gov.
SUPPLEMENTARY INFORMATION:
Background
The Entity List provides notice to the
public that certain exports, reexports,
and transfers (in-country) to entities
identified on the Entity List require a
license from BIS and that the
availability of license exceptions in
such transactions is limited. Entities are
placed on the Entity List on the basis of
certain sections of part 744 (Control
Policy: End-User and End-Use Based) of
the EAR.
The End-User Review Committee
(ERC), composed of representatives of
the Departments of Commerce (Chair),
State, Defense, Energy and, when
appropriate,Treasury, makes all
decisions regarding additions to,
removals from, or other changes to the
Entity List. The ERC makes all decisions
to add an entry to the Entity List by
majority vote and all decisions to
remove or modify an entry by
unanimous vote.
ERC Entity List Decisions
Addition of Certain Persons on the
Entity List: Addition of Persons Acting
Contrary to the National Security or
Foreign Policy Interests of the United
States
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44259
Sfmt 4700
This rule implements the decision of
the ERC to add six persons to the Entity
List on the basis of section 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 six
entries added to the Entity List consist
of two persons in Hong Kong and four
persons in Lebanon.
The ERC reviewed section 744.11(b)
(Criteria for revising the Entity List) in
making the determination to add these
persons to the Entity List. Under that
paragraph, persons for which there is
reasonable cause to believe, based on
specific and articulable facts, that the
persons have been involved, are
involved, or pose a significant risk of
being or becoming involved in,
activities that are contrary to the
national security or foreign policy
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Federal Register / Vol. 76, No. 142 / Monday, July 25, 2011 / Rules and Regulations
interests of the United States and those
acting on behalf of such persons may be
added to the Entity List pursuant to
section 744.11. Paragraphs (b)(1)–(b)(5)
include an illustrative list of activities
that could be contrary to the national
security or foreign policy interests of the
United States.
Pursuant to 15 CFR 744.11(b)(2) and
15 CFR 744.11(b)(5), the persons are
being added to the Entity List based on
evidence that they have engaged in
actions that could enhance the military
capability of Iran, a country designated
by the U.S. Secretary of State as having
repeatedly provided support for acts of
international terrorism. These persons
are also added because their overall
conduct poses a risk of ongoing EAR
violations. The six companies are added
based on evidence that they purchased
electronic components from U.S. firms
and then resold the components to
companies in Iran without the required
U.S. export license. The same
components were later found in Iraq in
unexploded improvised explosive
devices.
Additions to the Entity List
This rule adds six persons to the
Entity List on the basis of section 744.11
of the EAR. For all of the six persons
added to the Entity List, the ERC
specifies a license requirement for all
items subject to the EAR and establishes
a license application review policy of a
presumption of denial. The license
requirement applies to any transaction
in which items are to be exported,
reexported, or transferred (in-country) to
such persons or in which such persons
act as purchaser, intermediate
consignee, ultimate consignee, or enduser. In addition, no license exceptions
are available for exports, reexports, or
transfers (in-country) to those persons
being added to the Entity List.
Specifically, this rule adds the following
six persons to the Entity List:
Hong Kong
(1) Biznest, LTD, Room 927 9/F Far
East Consortium Building, 121 Des
Voeux Road C, Central District, Hong
Kong; and
(2) Yeraz, LTD, Room 927 9/F Far East
Consortium Building, 121 Des Voeux
Road C, Central District, Hong Kong.
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Lebanon
(1) Micro Power Engineering Group,
a.k.a MPEG, Anwar Street, Abou Karam
Building, 1st Floor, Jdeidet El Metn,
Beirut, Lebanon;
(2) Narinco Micro Sarl, Dedeyan
Center, Dora Boulevard Street,
Bauchrieh Metn, Lebanon;
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(3) Serop Elmayan and Sons Lebanon,
Ground Floor, Aramouni Building,
Property Number 1731, Fleuve Street,
Mar Mekhael Sector, Beirut, Lebanon;
and
(4) Serpico Offshore Sarl, Ground
Floor, Aramouni Building, Property
Number 1731, Fleuve Street, Mar
Mekhael Sector, Beirut, Lebanon.
Savings Clause
Shipments of items removed from
eligibility for a License Exception or
export or reexport without a license
(NLR) as a result of this regulatory
action that were on dock for loading, on
lighter, laden aboard an exporting or
reexporting carrier, or en route aboard a
carrier to a port of export or reexport, on
July 25, 2011, pursuant to actual orders
for export or reexport to a foreign
destination, may proceed to that
destination under the previous
eligibility for a License Exception or
export or reexport without a license
(NLR) so long as they are exported or
reexported before August 9, 2011. Any
such items not actually exported or
reexported before midnight, on August
9, 2011, require a license in accordance
with the EAR.
Although the Export Administration
Act expired on August 20, 2001, the
President, through Executive Order
13222 of August 17, 2001, 3 CFR, 2001
Comp., p. 783 (2002), as extended by the
Notice of August 12, 2010, 75 FR 50681
(August 16, 2010), has continued the
Export Administration Regulations in
effect under the International
Emergency Economic Powers Act.
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 nor 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
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Office of Management and Budget
(OMB) Control Number. This regulation
involves collections previously
approved by the OMB under control
numbers 0694–0088, ‘‘Multi-Purpose
Application,’’ which carries a burden
hour estimate of 43.8 minutes for a
manual or electronic submission. Total
burden hours associated with the
Paperwork Reduction Act and Office of
Management and Budget control
number 0694–0088 are expected to
increase slightly as a result of this rule.
You may send comments regarding the
collection of information associated
with this rule, including suggestions for
reducing the burden, to Jasmeet K.
Seehra, Office of Management and
Budget (OMB), by e-mail to
Jasmeet_K._Seehra@omb.eop.gov, or by
fax to (202) 395–7285.
3. This rule does not contain policies
with Federalism implications as that
term is defined in Executive Order
13132.
4. The provisions of the
Administrative Procedure Act (5 U.S.C.
553) requiring notice of proposed
rulemaking, the opportunity for public
comment and a delay in effective date
are inapplicable because this regulation
involves a military or foreign affairs
function of the United States. (See 5
U.S.C. 553(a)(1)). BIS implements this
rule to protect U.S. national security or
foreign policy interests by preventing
items from being exported, reexported,
or transferred (in country) to the persons
being added to the Entity List. If this
rule were delayed to allow for notice
and comment and a delay in effective
date, then entities being added to the
Entity List by this action would
continue to be able to receive items
without a license and to conduct
activities contrary to the national
security or foreign policy interests of the
United States. In addition, because these
parties may receive notice of the U.S.
Government’s intention to place these
entities on the Entity List once a final
rule was published it would create an
incentive for these persons to either
accelerate receiving items subject to the
EAR to conduct activities that are
contrary to the national security or
foreign policy interests of the United
States and/or to take steps to set up
additional aliases, change addresses and
take other steps to try to limit the
impact of the listing on the Entity List
once a final rule was published. Further,
no other law requires that a notice of
proposed rulemaking and an
opportunity for public comment be
given for this rule. Because a notice of
proposed rulemaking and an
opportunity for public comment are not
required to be given for this rule by 5
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Federal Register / Vol. 76, No. 142 / Monday, July 25, 2011 / Rules and Regulations
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.
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—[AMENDED]
1. The authority citation for 15 CFR
part 744 continues to read as follows:
■
Authority: 50 U.S.C. app. 2401 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.
12947, 60 FR 5079, 3 CFR, 1995 Comp., p.
356; 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 August 12, 2010, 75 FR 50681
(August 16, 2010); Notice of November 4,
2010, 75 FR 68673 (November 8, 2010):
Notice of January 13, 2011, 76 FR 3009,
January 18, 2011.
2. Supplement No. 4 to part 744 is
amended:
■ a. By adding under Hong Kong, in
alphabetical order, two Hong Kong
entities; and
■ b. By adding under, Lebanon, in
alphabetical order, four Lebanese
entities.
The additions read as follows:
■
SUPPLEMENT NO. 4 TO PART 744—ENTITY LIST
Country
Entity
*
HONG KONG
License requirement
*
*
*
License review policy
*
Federal Register citation
*
*
*
*
*
*
Biznest, LTD, Room 927 9/F For all items subject to the
Far East Consortium
EAR. (See § 744.11 of the
Building, 121 Des Voeux
EAR).
Road C, Central District,
Hong Kong.
*
*
*
Presumption of denial .......... 76 FR [INSERT FR PAGE
NUMBER], 7/25/11.
*
*
*
*
Yeraz, LTD, Room 927 9/F
For all items subject to the
Far East Consortium
EAR. (See § 744.11 of the
Building, 121 Des Voeux
EAR).
Road C, Central District,
Hong Kong.
*
*
*
Presumption of denial .......... 76 FR [INSERT FR PAGE
NUMBER], 7/25/11.
*
LEBANON
*
*
*
*
*
*
*
*
*
Micro Power Engineering
For all items subject to the
Group, a.k.a., MPEG,
EAR. (See § 744.11 of the
Anwar Street, Abou
EAR).
Karam Building, 1st Floor,
Jdeidet El Metn, Beirut,
Lebanon.
*
*
*
Presumption of denial .......... 76 FR [INSERT FR PAGE
NUMBER], 7/25/11.
*
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*
*
*
*
Narinco Micro Sarl, Dedeyan For all items subject to the
Center, Dora Boulevard
EAR. (See § 744.11 of the
Street, Bauchrieh Metn.
EAR).
Lebanon.
Serop Elmayan and Sons
For all items subject to the
Lebanon, Ground Floor,
EAR. (See § 744.11 of the
Aramouni Building, PropEAR).
erty Number 1731, Fleuve
Street, Mar Mekhael Sector, Beirut, Lebanon.
Serpico Offshore Sarl,
For all items subject to the
Ground Floor, Aramouni
EAR. (See § 744.11 of the
Building, Property Number
EAR).
1731 Fleuve Street, Mar
Mekhael Sector, Beirut,
Lebanon.
*
*
*
Presumption of denial .......... 76 FR [INSERT FR PAGE
NUMBER], 7/25/11.
*
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*
14:55 Jul 22, 2011
*
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*
Frm 00017
Fmt 4700
Presumption of denial ..........
76 FR [INSERT FR PAGE
NUMBER], 7/25/11.
Presumption of denial ..........
76 FR [INSERT FR PAGE
NUMBER], 7/25/11.
*
Sfmt 4700
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44262
Federal Register / Vol. 76, No. 142 / Monday, July 25, 2011 / Rules and Regulations
Dated: July 20, 2011.
Kevin J. Wolf,
Assistant Secretary for Export
Administration.
I. Background
On July 21, 2010, President Obama
signed into law the Dodd-Frank Act.1 In
relevant part, Title IX of the Dodd-Frank
Act directs Federal agencies to take
certain actions concerning any reference
to—or requirement of reliance on—
credit ratings in each agency’s
respective regulations. Specifically,
section 939A of the Dodd-Frank Act
requires agencies to take three actions
by July 21, 2011, the one-year
anniversary of the enactment of the
Dodd-Frank Act. First, section 939A(a)
directs each Federal agency to review
‘‘any regulation issued by such agency
that requires the use of an assessment of
the credit-worthiness of a security or
money market instrument [and] any
references to or requirements in such
regulations regarding credit ratings.’’
Second, section 939A(b) requires that
each Federal agency ‘‘modify any such
regulations identified by the review
conducted under subsection (a) to
remove any reference to or requirement
of reliance on credit ratings and to
substitute in such regulations such
standard of credit-worthiness as each
respective agency shall determine as
appropriate for such regulations.’’ To
the extent feasible, Federal agencies
should ‘‘seek to establish * * * uniform
standards of credit-worthiness for use
by each such agency.’’ And third,
section 939A(c) directs each Federal
agency to report to Congress ‘‘a
description of any modification of any
regulation such agency made pursuant
to subsection (b).’’
Subsequent to the enactment of the
Dodd-Frank Act, the Commission
reviewed its regulations and identified
instances in which credit ratings were
referred to or relied upon.2 The
identified regulations could be
categorized into two groups: (1) those
that rely on ratings to limit how
Commission registrants may invest or
deposit customer funds; and (2) those
that require disclosing a credit rating to
describe an investment’s characteristics.
In keeping with its efforts to comply
fully with both the spirit and letter of
the Dodd-Frank Act, the Commission
proposed to amend all of the identified
regulations that rely on credit ratings
regarding financial instruments.
On November 2, 2010, the
Commission published in the Federal
Register proposed amendments to
certain of its existing regulations (the
‘‘Proposing Release’’) in response to the
directives set forth in section 939A of
the Dodd-Frank Act.3 Specifically, the
Commission addressed two regulations
in the Proposing Release: (1) Regulation
1.49, which places qualifications on the
types of depositories where FCMs and
DCOs might place customer funds; and
(2) Regulation 4.24, wherein credit
1 Dodd-Frank Wall Street Reform and Consumer
Protection Act, Pub. L. 111–203, 124 Stat. 1376
(2010). The text of the Dodd-Frank Act may be
accessed at https://www.cftc.gov/LawRegulation/
OTCDERIVATIVES/index.htm.
2 Commission regulations that are referenced
herein are found at 17 CFR Ch. 1 (2010). They are
accessible on the Commission’s Web site at
https://www.cftc.gov.
3 75 FR 67254, Nov. 2, 2010.
[FR Doc. 2011–18718 Filed 7–22–11; 8:45 am]
BILLING CODE 3510–33–P
COMMODITY FUTURES TRADING
COMMISSION
17 CFR Parts 1 and 4
RIN 3038–AD11
Removing Any Reference to or
Reliance on Credit Ratings in
Commission Regulations; Proposing
Alternatives to the Use of Credit
Ratings
AGENCY: Commodity Futures Trading
Commission.
ACTION: Final rule.
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SUMMARY: The Commodity Futures
Trading Commission (‘‘Commission’’ or
‘‘CFTC’’) is adopting a final rule that
amends existing CFTC regulations in
order to implement new statutory
provisions enacted by Title IX of the
Dodd-Frank Wall Street Reform and
Consumer Protection Act (‘‘Dodd-Frank
Act’’). The rule amendments set forth
herein apply to futures commission
merchants (‘‘FCMs’’), derivatives
clearing organizations (‘‘DCOs’’), and
commodity pool operators (‘‘CPOs’’).
The rule amendments implement the
new statutory framework that requires
agencies to replace any reference to or
reliance on credit ratings in their
regulations with an appropriate
alternative standard.
DATES: This rule is effective September
23, 2011.
FOR FURTHER INFORMATION CONTACT:
Ward P. Griffin, Counsel, Office of
General Counsel, Commodity Futures
Trading Commission, Three Lafayette
Centre, 1155 21st Street, NW,
Washington, DC 20581. Telephone:
202–418–5425. E-mail:
wgriffin@cftc.gov.
SUPPLEMENTARY INFORMATION:
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ratings are used to help disclose the
characteristics of an investment.4
Regulation 1.49, which mirrors
Regulation 30.7,5 requires that an
acceptable foreign depository must
either: (1) Have in excess of $1 billion
of regulatory capital; or (2) issue
commercial paper or a long-term debt
instrument that is rated in one of the
two highest rating categories by at least
one nationally recognized statistical
rating organization (‘‘NRSRO’’). In the
Proposing Release, the Commission
proposed to remove all ratings
requirements from Regulation 1.49. The
Commission based its proposal on its
views regarding the uncertain reliability
of ratings as currently administered,
particularly in light of the significant
weaknesses of the ratings industry that
were revealed in recent years. The
Commission noted the poor past
performance of credit ratings in gauging
the safety of certain types of
investments, and its view that credit
ratings are not necessary to gauge the
future ability of certain types of
investments to preserve customer funds.
The proposal was intended to align
Regulation 1.49 with proposed
Regulations 1.25 and 30.7, and to greater
simplify the regulatory treatment of the
investment of customer funds.
With respect to the proposed
amendment of Regulation 1.49, the
Commission requested comment on: (1)
Whether relying on a minimum capital
requirement of $1 billion dollars in
regulatory capital is an adequate
alternative standard to the current
Regulation 1.49; and (2) whether
another standard or measure of solvency
and credit-worthiness should be used as
an appropriate, additional test of a
bank’s safety, such as a leverage ratio or
a capital adequacy ratio requirement
consistent with or similar to those in the
Basel III accords. The Commission also
stated that it would welcome any other
comments on the proposal.
4 Separately, the Commission issued Notices of
Proposed Rulemaking that addressed references to
credit ratings in Commission Regulations 1.25 and
30.7, and in Appendix A to Part 40. See
‘‘Investment of Customer Funds and Funds Held in
an Account for Foreign Futures and Foreign
Options Transactions,’’ 75 FR 67642, Nov. 3, 2010
(proposing amendments to Regulations 1.25 and
30.7); ‘‘Provisions Common to Registered Entities,’’
75 FR 67282, Nov. 2, 2010 (proposing to delete the
current Appendix A of Part 40). The amendments
proposed in those Notices are not addressed herein
and may be subject to future Commission
rulemaking.
5 See 68 FR 5545, 5548, Feb. 4, 2003 (noting the
Commission’s view that consistency between
Regulations 1.49 and 30.7 on this issue is
‘‘appropriate’’). In a separate release, the
Commission has proposed amendments to
Regulation 30.7 that are similar to the amendments
to Regulation 1.49 addressed herein. See supra note
4.
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]]>Agencies
[Federal Register Volume 76, Number 142 (Monday, July 25, 2011)]
[Rules and Regulations]
[Pages 44259-44262]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-18718]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Part 744
[Docket No. 110502273-1368-01]
RIN 0694-AF21
Addition of Certain Persons on the Entity List: Addition of
Persons Acting Contrary to the National Security or Foreign Policy
Interests of the United States
AGENCY: Bureau of Industry and Security, Commerce.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This rule amends the Export Administration Regulations (EAR)
by adding six persons to the Entity List (Supplement No. 4 to Part 744)
on the basis of section 744.11 of the EAR. The persons who are added to
the Entity List have been determined by the U.S. Government to be
acting contrary to the national security or foreign policy interests of
the United States. These persons will be listed under the following two
destinations on the Entity List: Hong Kong and Lebanon.
The Entity List provides notice to the public that certain exports,
reexports, and transfers (in-country) to parties identified on the
Entity List require a license from the Bureau of Industry and Security
(BIS) and that availability of license exceptions in such transactions
is limited.
DATES: Effective Date: This rule is effective July 25, 2011.
FOR FURTHER INFORMATION CONTACT: Karen Nies-Vogel, Chair, End-User
Review Committee, Office of the Assistant Secretary, Export
Administration, Bureau of Industry and Security, Department of
Commerce, Phone: (202) 482-5991, Fax: (202) 482-3911, E-mail:
ERC@bis.doc.gov.
SUPPLEMENTARY INFORMATION:
Background
The Entity List provides notice to the public that certain exports,
reexports, and transfers (in-country) to entities identified on the
Entity List require a license from BIS and that the availability of
license exceptions in such transactions is limited. Entities are placed
on the Entity List on the basis of certain sections of part 744
(Control Policy: End-User and End-Use Based) of the EAR.
The End-User Review Committee (ERC), composed of representatives of
the Departments of Commerce (Chair), State, Defense, Energy and, when
appropriate,Treasury, makes all decisions regarding additions to,
removals from, or other changes to the Entity List. The ERC makes all
decisions to add an entry to the Entity List by majority vote and all
decisions to remove or modify an entry by unanimous vote.
ERC Entity List Decisions
This rule implements the decision of the ERC to add six persons to
the Entity List on the basis of section 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 six
entries added to the Entity List consist of two persons in Hong Kong
and four persons in Lebanon.
The ERC reviewed section 744.11(b) (Criteria for revising the
Entity List) in making the determination to add these persons to the
Entity List. Under that paragraph, persons for which there is
reasonable cause to believe, based on specific and articulable facts,
that the persons have been involved, are involved, or pose a
significant risk of being or becoming involved in, activities that are
contrary to the national security or foreign policy
[[Page 44260]]
interests of the United States and those acting on behalf of such
persons may be added to the Entity List pursuant to section 744.11.
Paragraphs (b)(1)-(b)(5) include an illustrative list of activities
that could be contrary to the national security or foreign policy
interests of the United States.
Pursuant to 15 CFR 744.11(b)(2) and 15 CFR 744.11(b)(5), the
persons are being added to the Entity List based on evidence that they
have engaged in actions that could enhance the military capability of
Iran, a country designated by the U.S. Secretary of State as having
repeatedly provided support for acts of international terrorism. These
persons are also added because their overall conduct poses a risk of
ongoing EAR violations. The six companies are added based on evidence
that they purchased electronic components from U.S. firms and then
resold the components to companies in Iran without the required U.S.
export license. The same components were later found in Iraq in
unexploded improvised explosive devices.
Additions to the Entity List
This rule adds six persons to the Entity List on the basis of
section 744.11 of the EAR. For all of the six persons added to the
Entity List, the ERC specifies a license requirement for all items
subject to the EAR and establishes a license application review policy
of a presumption of denial. The license requirement applies to any
transaction in which items are to be exported, reexported, or
transferred (in-country) to such persons or in which such persons act
as purchaser, intermediate consignee, ultimate consignee, or end-user.
In addition, no license exceptions are available for exports,
reexports, or transfers (in-country) to those persons being added to
the Entity List. Specifically, this rule adds the following six persons
to the Entity List:
Hong Kong
(1) Biznest, LTD, Room 927 9/F Far East Consortium Building, 121
Des Voeux Road C, Central District, Hong Kong; and
(2) Yeraz, LTD, Room 927 9/F Far East Consortium Building, 121 Des
Voeux Road C, Central District, Hong Kong.
Lebanon
(1) Micro Power Engineering Group, a.k.a MPEG, Anwar Street, Abou
Karam Building, 1st Floor, Jdeidet El Metn, Beirut, Lebanon;
(2) Narinco Micro Sarl, Dedeyan Center, Dora Boulevard Street,
Bauchrieh Metn, Lebanon;
(3) Serop Elmayan and Sons Lebanon, Ground Floor, Aramouni
Building, Property Number 1731, Fleuve Street, Mar Mekhael Sector,
Beirut, Lebanon; and
(4) Serpico Offshore Sarl, Ground Floor, Aramouni Building,
Property Number 1731, Fleuve Street, Mar Mekhael Sector, Beirut,
Lebanon.
Savings Clause
Shipments of items removed from eligibility for a License Exception
or export or reexport without a license (NLR) as a result of this
regulatory action that were on dock for loading, on lighter, laden
aboard an exporting or reexporting carrier, or en route aboard a
carrier to a port of export or reexport, on July 25, 2011, pursuant to
actual orders for export or reexport to a foreign destination, may
proceed to that destination under the previous eligibility for a
License Exception or export or reexport without a license (NLR) so long
as they are exported or reexported before August 9, 2011. Any such
items not actually exported or reexported before midnight, on August 9,
2011, require a license in accordance with the EAR.
Although the Export Administration Act expired on August 20, 2001,
the President, through Executive Order 13222 of August 17, 2001, 3 CFR,
2001 Comp., p. 783 (2002), as extended by the Notice of August 12,
2010, 75 FR 50681 (August 16, 2010), has continued the Export
Administration Regulations in effect under the International Emergency
Economic Powers Act.
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 nor 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 the OMB under control numbers 0694-
0088, ``Multi-Purpose Application,'' which carries a burden hour
estimate of 43.8 minutes for a manual or electronic submission. Total
burden hours associated with the Paperwork Reduction Act and Office of
Management and Budget control number 0694-0088 are expected to increase
slightly as a result of this rule. You may send comments regarding the
collection of information associated with this rule, including
suggestions for reducing the burden, to Jasmeet K. Seehra, Office of
Management and Budget (OMB), by e-mail to Jasmeet_K._Seehra@omb.eop.gov, or by fax to (202) 395-7285.
3. This rule does not contain policies with Federalism implications
as that term is defined in Executive Order 13132.
4. The provisions of the Administrative Procedure Act (5 U.S.C.
553) requiring notice of proposed rulemaking, the opportunity for
public comment and a delay in effective date are inapplicable because
this regulation involves a military or foreign affairs function of the
United States. (See 5 U.S.C. 553(a)(1)). BIS implements this rule to
protect U.S. national security or foreign policy interests by
preventing items from being exported, reexported, or transferred (in
country) to the persons being added to the Entity List. If this rule
were delayed to allow for notice and comment and a delay in effective
date, then entities being added to the Entity List by this action would
continue to be able to receive items without a license and to conduct
activities contrary to the national security or foreign policy
interests of the United States. In addition, because these parties may
receive notice of the U.S. Government's intention to place these
entities on the Entity List once a final rule was published it would
create an incentive for these persons to either accelerate receiving
items subject to the EAR to conduct activities that are contrary to the
national security or foreign policy interests of the United States and/
or to take steps to set up additional aliases, change addresses and
take other steps to try to limit the impact of the listing on the
Entity List once a final rule was published. Further, no other law
requires that a notice of proposed rulemaking and an opportunity for
public comment be given for this rule. Because a notice of proposed
rulemaking and an opportunity for public comment are not required to be
given for this rule by 5
[[Page 44261]]
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.
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--[AMENDED]
0
1. The authority citation for 15 CFR part 744 continues to read as
follows:
Authority: 50 U.S.C. app. 2401 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. 12947, 60 FR 5079, 3 CFR,
1995 Comp., p. 356; 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 August 12, 2010, 75 FR 50681
(August 16, 2010); Notice of November 4, 2010, 75 FR 68673 (November
8, 2010): Notice of January 13, 2011, 76 FR 3009, January 18, 2011.
0
2. Supplement No. 4 to part 744 is amended:
0
a. By adding under Hong Kong, in alphabetical order, two Hong Kong
entities; and
0
b. By adding under, Lebanon, in alphabetical order, four Lebanese
entities.
The additions read as follows:
Supplement No. 4 to Part 744--Entity List
----------------------------------------------------------------------------------------------------------------
License review Federal Register
Country Entity License requirement policy citation
----------------------------------------------------------------------------------------------------------------
* * * * * * *
HONG KONG
* * * * * * *
Biznest, LTD, Room For all items Presumption of 76 FR [INSERT FR
927 9/F Far East subject to the denial. PAGE NUMBER], 7/25/
Consortium EAR. (See Sec. 11.
Building, 121 Des 744.11 of the EAR).
Voeux Road C,
Central District,
Hong Kong.
* * * * * * *
Yeraz, LTD, Room For all items Presumption of 76 FR [INSERT FR
927 9/F Far East subject to the denial. PAGE NUMBER], 7/25/
Consortium EAR. (See Sec. 11.
Building, 121 Des 744.11 of the EAR).
Voeux Road C,
Central District,
Hong Kong.
* * * * * * *
LEBANON
* * * * * * *
Micro Power For all items Presumption of 76 FR [INSERT FR
Engineering Group, subject to the denial. PAGE NUMBER], 7/25/
a.k.a., MPEG, EAR. (See Sec. 11.
Anwar Street, Abou 744.11 of the EAR).
Karam Building,
1st Floor, Jdeidet
El Metn, Beirut,
Lebanon.
* * * * * * *
Narinco Micro Sarl, For all items Presumption of 76 FR [INSERT FR
Dedeyan Center, subject to the denial. PAGE NUMBER], 7/25/
Dora Boulevard EAR. (See Sec. 11.
Street, Bauchrieh 744.11 of the EAR).
Metn. Lebanon.
Serop Elmayan and For all items Presumption of 76 FR [INSERT FR
Sons Lebanon, subject to the denial. PAGE NUMBER], 7/25/
Ground Floor, EAR. (See Sec. 11.
Aramouni Building, 744.11 of the EAR).
Property Number
1731, Fleuve
Street, Mar
Mekhael Sector,
Beirut, Lebanon.
Serpico Offshore For all items Presumption of 76 FR [INSERT FR
Sarl, Ground subject to the denial. PAGE NUMBER], 7/25/
Floor, Aramouni EAR. (See Sec. 11.
Building, Property 744.11 of the EAR).
Number 1731 Fleuve
Street, Mar
Mekhael Sector,
Beirut, Lebanon.
* * * * * * *
----------------------------------------------------------------------------------------------------------------
[[Page 44262]]
Dated: July 20, 2011.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2011-18718 Filed 7-22-11; 8:45 am]
BILLING CODE 3510-33-P
