Addition of Certain Persons to the Entity List, 24563-24567 [2014-10035]

Agencies

• DEPARTMENT OF COMMERCE
• Bureau of Industry and Security

[Federal Register Volume 79, Number 84 (Thursday, May 1, 2014)]
[Rules and Regulations]
[Pages 24563-24567]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-10035]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 744

[Docket No. 120504049-1049-01]
RIN 0694-AF69


Addition of Certain Persons to the Entity List

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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SUMMARY: This rule amends the Export Administration Regulations (EAR) 
by adding nine persons to the Entity List. 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 on the Entity List 
under the destination of China.

DATES: Effective Date: This rule is effective May 1, 2014.

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, Email: 
ERC@bis.doc.gov.

SUPPLEMENTARY INFORMATION:

Background

    The Entity List (Supplement No. 4 to Part 744) notifies the public 
about entities that have engaged in activities that could result in an 
increased risk of the diversion of exported, reexported or transferred 
(in-country) items to weapons of mass destruction (WMD) programs. Since 
its initial publication, grounds for inclusion on the Entity List have 
expanded to include activities sanctioned by the State Department and 
activities contrary to U.S. national security or foreign policy 
interests, including terrorism and export control violations involving 
abuse of human rights. Certain exports, reexports, and transfers (in-
country) to entities identified on the Entity List require licenses 
from BIS and are usually subject to a policy of denial. The 
availability of license exceptions in such transactions is very 
limited. The license review policy for each entity is identified in the 
license review policy column on the Entity List and the availability of 
license exceptions is noted in the Federal Register notices adding 
persons to the Entity List. BIS places entities on the Entity List 
based on 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, 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 
all decisions to remove or modify an entry by unanimous vote.

ERC Entity List Decisions

Additions to the Entity List

    This rule implements the decision of the ERC to add nine persons 
under nine entries to the Entity List on the basis of Sec.  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 nine entries added to the Entity List consist of nine 
entries in China.
    The ERC reviewed Sec.  744.11(b) (Criteria for revising the Entity 
List) in making the determination to add these nine persons to the 
Entity List. Under that paragraph, persons for whom there is reasonable 
cause to believe, based on specific and articulable facts, have been 
involved, are involved, or pose a

[[Page 24564]]

significant risk of being or becoming involved in, activities that are 
contrary to the national security or foreign policy interests of the 
United States and those acting on behalf of such persons may be added 
to the Entity List. Paragraphs (b)(1) through (b)(5) of Sec.  744.11 
include an illustrative list of activities that could be contrary to 
the national security or foreign policy interests of the United States.
    The nine persons being added have been determined by the ERC to be 
involved in activities that are contrary to the national security or 
foreign policy interests of the United States, specifically the 
activities described under paragraphs (b)(2) and (b)(5) of Sec.  
744.11.
    The ERC has reasonable cause to believe that the nine persons, who 
are being added under nine entries in this rule and are located in 
China, have supplied Iran's ballistic missile program through the 
Chinese proliferator Li Fangwei (a.k.a. Karl Lee). Since 2004, at least 
one of Li's companies or Li has been designated by the Department of 
State under the Iran North Korea and Syria Nonproliferation Act 
(INKSNA) sanctions or by the Department of the Treasury's Office of 
Foreign Assets Control (OFAC) under Executive Order 13392 on the basis 
of support to Iran's ballistic missile program. The nine persons are as 
follows: Beijing Aeronautical Manufacturing Technology Research 
Institute, Chengdu Latest Electronics Technology Company, Dalian Ligong 
Safety Equipment Company Limited, Fushun Jinly Petrochemical Carbon 
Co., Ltd., Liaoyang Carbon Co., Ltd., Shanghai Hentong Optics 
Technology Limited, Weihai New Era Chemical Industrial Company Limited, 
Xinghe Xingyong Carbon Co., Ltd. and Zhu Kuibao.
    Pursuant to Sec.  744.11(b)(2) and (b)(5) of the EAR, the ERC 
determined that the conduct of these nine persons raises sufficient 
concern that prior review of exports, reexports, or transfers (in-
country) of items subject to the EAR involving these persons, and the 
possible imposition of license conditions or license denials on 
shipments to the persons, will enhance BIS's ability to prevent 
violations of the EAR.
    For the Beijing Aeronautical Manufacturing Technology Research 
Institute, the ERC specified a license requirement for all items 
subject to the EAR, and established a license application review policy 
of presumption of approval for EAR99 items and case-by-case review for 
all items on the Commerce Control List. For the other eight persons 
recommended for addition, the ERC specified a license requirement for 
all items subject to the EAR and a license review policy of presumption 
of denial. The license requirements apply to any transaction in which 
items are to be exported, reexported, or transferred (in-country) to 
any of the 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 the persons being added to the Entity List in 
this rule.
    This final rule adds the following nine persons to the Entity List:

China

    (1) Beijing Aeronautical Manufacturing Technology Research 
Institute, a.k.a., the following two aliases:

--BAMTRI; and
--Aviation Industry Corporation of China's (AVIC) Institute 625.
No. 1 East Military Village, North Baliqiao Station, Chaoyang District, 
Beijing, China; and
Xue Yuan Road No. 37, HaiDian District, Beijing, China;

    (2) Chengdu Latest Electronics Technology Company,

No. 2069 West Yuanda Road, Pixian Modern Industry Harbor South 
District, Chengdu, Sichuan, China 611730; and Suite 1-6-1702, West 
Diaoyu Yaijia Garden, Haidian District, Beijing, China 100142;
C8-1-402 Xiduan Zhonghua Century City, Technology Road, Xian China 
710075; and 2-308 No. 115 Hongshan Road, Nanjing, China 210018;

    (3) Dalian Ligong Safety Equipment Company Limited,

No. 26 Liaohe East Road, Double D Port, Economic and Technological 
Development Zone, Dalian, China 116620;

    (4) Fushun Jinly Petrochemical Carbon Co., Ltd.,

Room 2104, Jinhui Plaza, No. 16 Dongsi Road, Xinfu District, Fushun, 
Liaoning, China, 113015; and East of No. 2 Petroleum Factory, Dongzhou 
District, Fushun, Liaoning, China, 113004;

    (5) Liaoyang Carbon Co., Ltd.,

No. 688 Liuan Road, Liuerpu Economic Development Zone Liaoyang City, 
Liaoning, China 11212;

    (6) Shanghai Hentong Optics Technology Limited, a.k.a., the 
following two aliases:

--Shanghai Hengtong Group; and
--Shanghai Hengtong Optic-Electric Co., Ltd.
12F Tower A, Fareast International Plaza, 319 Xianxia Road, Shanghai, 
China;

    (7) Weihai New Era Chemical Industrial Company Limited,

No. 985 Fenghua Shan Road, Yangting New Industrial District, Huancui 
District, Weihai, China;

    (8) Xinghe Xingyong Carbon Co., Ltd.,

Xicheng Wai, Chengguan Town, Xinghe County, Inner Mongolia, China; and
    (9) Zhu Kuibao,

No. 51 Yongding Rd., Haidian District, Beijing, China; and
No. 37 Xueyuan Road, Haidian District, Beijing, China.

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 en route aboard a carrier to a port of 
export or reexport, on May 1, 2014 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).

Export Administration Act

    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 amended by Executive Order 13637 of March 
8, 2013, 78 FR 16129 (March 13, 2013) and as extended by the Notice of 
August 8, 2013, 78, 2013, 78 FR 49107 (August 12, 2013), has continued 
the Export Administration Regulations in effect under the International 
Emergency Economic Powers Act. BIS continues to carry out the 
provisions of the Export Administration Act, as appropriate and to the 
extent permitted by law, pursuant to Executive Order 13222.

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

[[Page 24565]]

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 OMB under control number 0694-0088, 
Simplified Network Application Processing System, which includes, among 
other things, license applications and carries a burden estimate of 
43.8 minutes for a manual or electronic submission.
    Total burden hours associated with the PRA and OMB control number 
0694-0088 are not expected to increase 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 email 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 if a proposed rule is published, doing so 
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, or to take steps to set up additional aliases, change 
addresses, and other measures 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 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 Subject 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 8, 2013, 78 FR 49107 
(August 12, 2013); Notice of September 18, 2013, 78 FR 58151 
(September 20, 2013); Notice of November 7, 2013, 78 FR 67289 
(November 12, 2013); Notice of January 21, 2014, 79 FR 3721 (January 
22, 2014).
0
2. Supplement No. 4 to part 744 is amended by adding under China, in 
alphabetical order, nine Chinese entities; the additions read as 
follows:

                                    Supplement No. 4 to Part 744--Entity List
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                                                                              License review    Federal Register
        Country                     Entity             License requirement        policy            citation
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                                                  * * * * * * *
China, People's
 Republic of.
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                         Beijing Aeronautical          For all items        Presumption of     79 FR [INSERT FR
                          Manufacturing Technology      subject to the       approval for       PAGE NUMBER] May
                          Research Institute, a.k.a.,   EAR. (See Sec.       EAR99; case-by-    1, 2014.
                          the following two aliases:    744.11 of the        case review for
                         --BAMTRI; and                  EAR).                all items on the
                                                                             CCL.
                         --Aviation Industry
                          Corporation of China's
                          (AVIC) Institute 625.
                         No. 1 East Military Village,
                          North Baliqiao Station,
                          Chaoyang District, Beijing,
                          China;
                         and
                         Xue Yuan Road No. 37,
                          HaiDian District, Beijing,
                          China.
                        ----------------------------------------------------------------------------------------
                                                                * * * * *
                        ----------------------------------------------------------------------------------------

[[Page 24566]]

 
                         Chengdu Latest Electronics    For all items        Presumption of     79 FR [INSERT FR
                          Technology Company,           subject to the       denial.            PAGE NUMBER] May
                         No. 2069 West Yuanda Road,     EAR. (See Sec.                          1, 2014.
                          Pixian Modern Industry        744.11 of the
                          Harbor South District,        EAR).
                          Chengdu, Sichuan, China
                          611730; and
                         Suite 1-6-1702, West Diaoyu
                          Yaijia Garden, Haidian
                          District, Beijing, China
                          100142; and
                         C8-1-402 Xiduan Zhonghua
                          Century city, Technology
                          Road, Xian, China 710075;
                          and
                         2-308 No. 115 Hongshan Road,
                          Nanjing, China 210018.
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                                                                * * * * *
                        ----------------------------------------------------------------------------------------
                         Dalian Ligong Safety          For all items        Presumption of     79 FR [INSERT FR
                          Equipment Company Limited,    subject to the       denial.            PAGE NUMBER] May
                         No. 26 Liaohe East Road,       EAR. (See Sec.                          1, 2014.
                          Double D Port, Economic and   744.11 of the
                          Technological Development     EAR).
                          Zone, Dalian, China 116620.
                        ----------------------------------------------------------------------------------------
                                                                * * * * *
                        ----------------------------------------------------------------------------------------
                         Fushun Jinly Petrochemical    For all items        Presumption of     79 FR [INSERT FR
                          Carbon Co., Ltd.,             subject to the       denial.            PAGE NUMBER] May
                         Room 2104, Jinhui Plaza, No.   EAR. (See Sec.                          1, 2014.
                          16 Dongsi Road, Xinfu         744.11 of the
                          District, Fushun, Liaoning,   EAR).
                          China; and 113015 East of
                          No. 2 Petroleum Factory,
                          Dongzhou District, Fushun,
                          Liaoning, China, 113004.
                        ----------------------------------------------------------------------------------------
                                                                * * * * *
                        ----------------------------------------------------------------------------------------
                         Liaoyang Carbon Co., Ltd.,    For all items        Presumption of     79 FR [INSERT FR
                         No. 688 Liuan Road, Liuerpu    subject to the       denial.            PAGE NUMBER] May
                          Economic Development Zone,    EAR. (See Sec.                          1, 2014.
                          Liaoyang City, Liaoning,      744.11 of the
                          China 11212.                  EAR).
                        ----------------------------------------------------------------------------------------
                                                                * * * * *
                        ----------------------------------------------------------------------------------------
                         Shanghai Hengtong Optics      For all items        Presumption of     79 FR [INSERT FR
                          Technology Limited, a.k.a.,   subject to the       denial.            PAGE NUMBER] May
                          the following two aliases:    EAR. (See Sec.                          1, 2014.
                         --Shanghai Hengtong Group;     744.11 of the
                          and                           EAR).
                         --Shanghai Hengtong Optic-
                          Electric Co., Ltd.
                         12F Tower A, Fareast
                          International Plaza, 319
                          Xianxia Road, Shanghai,
                          China.
                        ----------------------------------------------------------------------------------------
                                                                * * * * *
                        ----------------------------------------------------------------------------------------
                         Weihai New Era Chemical       For all items        Presumption of     79 FR [INSERT FR
                          Industrial Company Limited,   subject to the       denial.            PAGE NUMBER] May
                         No. 985 Fenghua Shan Road,     EAR. (See Sec.                          1, 2014.
                          Yangting New Industrial       744.11 of the
                          District, Huancui District,   EAR).
                          Weihai, China.
                                                                * * * * *
                        ----------------------------------------------------------------------------------------
                         Xinghe Xingyong Carbon Co.,   For all items        Presumption of     79 FR [INSERT FR
                          Ltd.,                         subject to the       denial.            PAGE NUMBER] May
                         Xicheng Wai, Chengguan Town,   EAR. (See Sec.                          1, 2014.
                          Xinghe County, Inner          744.11 of the
                          Mongolia, China.              EAR).
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                                                                * * * * *
                        ----------------------------------------------------------------------------------------

[[Page 24567]]

 
                         Zhu Kuibao,                   For all items        Presumption of     79 FR [INSERT FR
                         No. 51 Yongding Rd., Haidian   subject to the       denial.            PAGE NUMBER] May
                          District, Beijing, China;     EAR. (See Sec.                          1, 2014.
                          and No. 37 Xueyuan Road,      744.11 of the
                          Haidian District, Beijing,    EAR).
                          China.
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    Dated: April 28, 2014.
Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 2014-10035 Filed 4-30-14; 8:45 am]
BILLING CODE 3510-33-P