Removal of Certain Entities From the Entity List; and Revisions of Entries on the Entity List, 44514-44517 [2017-20406]

Agencies

• DEPARTMENT OF COMMERCE
• Bureau of Industry and Security

[Federal Register Volume 82, Number 184 (Monday, September 25, 2017)]
[Rules and Regulations]
[Pages 44514-44517]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-20406]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 744

[Docket No. 170622586-7586-01]
RIN 0694--AH41


Removal of Certain Entities From the Entity List; and Revisions 
of Entries on 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 removing three entities under four entries from the Entity List. 
This rule removes one entity listed under the destination of Australia, 
one entity listed under the destination of China, and one entity listed 
under the destinations of Iran and the United Arab Emirates from the 
Entity List. The one additional entry is being removed to account for 
one entity listed under more than one destination on the Entity List. 
All three of the removals are the result of requests for removal 
received by BIS pursuant to the section of the EAR used for requesting 
removal or modification of an Entity List entity and a review of 
information provided in the removal requests in accordance with the 
procedure for requesting removal or modification of an Entity List 
entity. Finally, this final rule modifies five existing entries on the 
Entity List consisting of five entries under Pakistan to provide 
additional or modified addresses and/or names for these persons.

DATES: This rule is effective September 25, 2017.

FOR FURTHER INFORMATION CONTACT: Chair, End-User Review Committee, 
Office of the Assistant Secretary, Export Administration, Bureau of 
Industry and Security, Department of Commerce, Phone: (202) 482-5991, 
Email: ERC@bis.doc.gov.

SUPPLEMENTARY INFORMATION: 

Background

    The Entity List (Supplement No. 4 to part 744) identifies entities 
and other persons reasonably believed to be involved, or to pose a 
significant risk of being or becoming involved, in activities contrary 
to the national security or foreign policy interests of the United 
States. The EAR imposes additional license requirements on, and limits 
the availability of most license exceptions for, exports, reexports, 
and transfers (in-country) to those listed. The ``license review 
policy'' for each listed entity or other person 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 Federal Register 
document adding entities or other persons to the Entity List. BIS 
places entities and other persons on the Entity List pursuant to 
sections of part 744 (Control Policy: End-User and End-Use Based) and 
part 746 (Embargoes and Other Special Controls) of the EAR.
    The End-User Review Committee (ERC), composed of representatives of 
the Departments of Commerce (Chair),

[[Page 44515]]

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

Removals From the Entity List

    This rule implements a decision of the ERC to remove the following 
three entities under four entries from the Entity List on the basis of 
removal requests received by BIS, as follows: Vortex Electronics, 
located in Australia; China National Commercial New Tone Trading 
Company Ltd., located in China; and FIMCO FZE, located in Iran and the 
United Arab Emirates (U.A.E.) (which accounts for two of the entries 
this final rule removes). The entry for Vortex Electronics was added to 
the Entity List on September 18, 2014 (see 79 FR 56003). The entry for 
China National Commercial New Tone Trading Company Ltd was added to the 
Entity List on July 28, 2015 (see 80 FR 44849). The two entries for 
FIMCO FZE were added to the Entity List on August 1, 2014 (see 79 FR 
44683).
    The ERC decided to remove these three entities under four entries 
based on information received by BIS pursuant to Sec.  744.16 of the 
EAR and further review conducted by the ERC.
    This final rule implements the decision to remove the following one 
entity located in Australia, one entity located in China, and one 
entity located in Iran and the U.A.E. from the Entity List:

Australia

    (1) Vortex Electronics, 125 Walker Street, Quakers Hill, NSW 2763, 
Australia.

China

    (1) China National Commercial New Tone Trading Company Ltd, Room 
616, 2nd Building, No. 45 Fuxingmennei St, Beijing, China, 100801; and 
No. 45 Fuxing Mennei Avenue, Xicheng District, Beijing, China, 100801.

Iran

    (1) FIMCO FZE, No. 3, Rahim Salehi Alley, Akbari St., Roomi Bridge, 
Dr. Shariati Ave., P.O. Box 3379, Tehran, Iran 3379/19395 (See 
alternate address under U.A.E.).

United Arab Emirates

    (1) FIMCO FZE, LOB 16, F16401, P.O. Box 61342, JAFZ, U.A.E. (See 
alternate addresses under Iran).
    The removal of the entities referenced above, which was approved by 
the ERC, eliminates the existing license requirements in Supplement No. 
4 to part 744 for exports, reexports and transfers (in-country) to 
these entities. However, the removal of these entities from the Entity 
List does not relieve persons of other obligations under part 744 of 
the EAR or under other parts of the EAR. Neither the removal of an 
entity from the Entity List nor the removal of Entity List-based 
license requirements relieves persons of their obligations under 
General Prohibition 5 in Sec.  736.2(b)(5) of the EAR which provides 
that, ``you may not, without a license, knowingly export or reexport 
any item subject to the EAR to an end-user or end-use that is 
prohibited by part 744 of the EAR.'' Additionally, this removal does 
not relieve persons of their obligation to apply for export, reexport 
or in-country transfer licenses required by other provisions of the 
EAR. BIS strongly urges the use of Supplement No. 3 to part 732 of the 
EAR, ``BIS's `Know Your Customer' Guidance and Red Flags,'' when 
persons are involved in transactions that are subject to the EAR.

Modifications to the Entity List

    This final rule implements decisions of the ERC to modify five 
existing entries on the Entity List. Under the destination of Pakistan, 
the ERC made a determination to revise five entries, as follows: revise 
one address and add three additional addresses to the entry for IKAN 
Engineering Services; correct the spelling of the name of an entry from 
Imam Group to Iman Group; revise the address to the entry for 
Interscan; revise the address for the entry for Makkays Hi-Tech 
Systems; and revise the address to the entry for Micado.
    This final rule makes the following modifications to five entries 
on the Entity List:

Pakistan

    (1) IKAN Engineering Services, a.k.a., the following one alias: -
IKAN Sourcing. 34-KM Shamki Bhattian Multan Road, Lahore, Pakistan; and 
Plot 7, 1-11/3 Markaz, Islamabad, Pakistan; and Building #7, #9 
Sanitary Market I-11/3 Islamabad, Pakistan; and House #B-4, Block-F 
Gulshane-Jamal, Karachi, Pakistan; and 84/L Shah Rukn-e-Alam Colony 
Multan, Pakistan;
    (2) Iman Group, a.k.a., the following one alias: -Pana 
Communication Inc. Plot No. 227, St. No. 7, Sector I-9/2, Industrial 
Area, Near Dry Port, Islamabad, Pakistan; and 70-East A.A. Plaza, Mezz. 
Floor Blue Area, Islamabad 44000, Capital, Pakistan;
    (3) Interscan, Sattar Villa B, 32/1-C-1 Block-6, P.E.C.H.S., 
Karachi 75400i, Sindh, Pakistan;
    (4) Makkays Hi-Tech Systems, a.k.a., the following one alias: -Zaib 
Electronics. Block 14 Civic Centre, G-6 Markaz, Islamabad, Pakistan; 
and Kulsum Plaza, 42 Jinnah Avenue, Islamabad, Pakistan; and Basement 
Khyber Plaza, Barma Town, near Barma Bridge, Lehtrar Road, Islamabad, 
Pakistan; and House No. 675, Street No. 19, G-9/3, Islamabad, Pakistan; 
and
    (5) Micado, 40-C, Block-6, P.E.C.H.S., Shahrah-e-Faisal, Karachi, 
Sindh, Pakistan.

Export Administration Act of 1979

    Although the Export Administration Act of 1979 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 15, 2017, 82 FR 39005 (August 16, 2017), 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 of 1979, as appropriate 
and to the extent permitted by law, pursuant to Executive Order 13222, 
as amended by Executive Order 13637.

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. This rule is not an Executive Order 
13771 regulatory action because this rule is not significant under 
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

[[Page 44516]]

(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. For the three entities under four entries removed from the 
Entity List in this final rule, pursuant to the Administrative 
Procedure Act (APA), 5 U.S.C. 553(b)(3)(B), BIS finds good cause to 
waive requirements that this rule be subject to notice and the 
opportunity for public comment because it would be contrary to the 
public interest.
    In determining whether to grant a request for removal from the 
Entity List, a committee of U.S. Government agencies (the End-User 
Review Committee (ERC)) evaluates information about and commitments 
made by listed entities or persons requesting removal from the Entity 
List, the nature and terms of which are set forth in 15 CFR part 744, 
Supplement No. 5, as noted in 15 CFR 744.16(b). The information, 
commitments, and criteria for this extensive review were all 
established through the notice of proposed rulemaking and public 
comment process (72 FR 31005 (June 5, 2007) (proposed rule), and 73 FR 
49311 (August 21, 2008) (final rule)). These three removals under four 
entries have been made within the established regulatory framework of 
the Entity List. If the rule were to be delayed to allow for public 
comment, U.S. exporters may face unnecessary economic losses as they 
turn away potential sales to the entities removed by this rule because 
the customer remained a listed person on the Entity List even after the 
ERC approved the removal pursuant to the rule published at 73 FR 49311 
on August 21, 2008. By publishing without prior notice and comment, BIS 
allows the applicants to receive U.S. exports immediately because the 
applicants already have received approval by the ERC pursuant to 15 CFR 
part 744, Supplement No. 5, as noted in 15 CFR 744.16(b).
    Removals from the Entity List granted by the ERC involve 
interagency deliberation and result from review of public and non-
public sources, including sensitive law enforcement information and 
classified information, and the measurement of such information against 
the Entity List removal criteria. This information is extensively 
reviewed according to the criteria for evaluating removal requests from 
the Entity List, as set out in 15 CFR part 744, Supplement No. 5, and 
15 CFR 744.16(b). For reasons of national security, BIS is not at 
liberty to provide to the public detailed information on which the ERC 
relied to make the decisions to remove these entities. In addition, the 
information included in the removal request is information exchanged 
between the applicant and the ERC, which by law (section 12(c) of the 
Export Administration Act of 1979), BIS is restricted from sharing with 
the public. Moreover, removal requests from the Entity List contain 
confidential business information, which is necessary for the extensive 
review conducted by the U.S. Government in assessing such removal 
requests.
    Section 553(d) of the APA generally provides that rules may not 
take effect earlier than thirty (30) days after they are published in 
the Federal Register. BIS finds good cause to waive the 30-day delay in 
effectiveness under 5 U.S.C. 553(d)(1) because this rule is a 
substantive rule which relieves a restriction. This rule's removal of 
three entities under four entries from the Entity List removes 
requirements (the Entity-List-based license requirement and limitation 
on use of license exceptions) on these three entities being removed 
from the Entity List. The rule does not impose a requirement on any 
other person for these removals from the Entity List. Further, no other 
law requires that a notice of proposed rulemaking and an opportunity 
for public comment be given for this final rule.
    5. The Department finds that there is good cause under 5 U.S.C. 
553(b)(3)(B) to waive the provisions of the Administrative Procedure 
Act (APA) requiring prior notice and the opportunity for public comment 
for the five modifications included in this rule because, as described 
above, they are impracticable and are contrary to the public interest. 
In addition, these five changes are limited to to providing additional 
or modified addresses and/or a corrected name for these entities on the 
Entity List, which will assist the public in more easily identifying 
these listed entities on the Entity List.
    6. 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--[AMENDED]

0
1. The authority citation for 15 CFR part 744 is revised to read as 
follows:

    Authority: 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. 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 September 15, 2016, 81 FR 64343 
(September 19, 2016); Notice of November 8, 2016, 81 FR 79379 
(November 10, 2016); Notice of January 13, 2017, 82 FR 6165 (January 
18, 2017); Notice of August 15, 2017, 82 FR 39005 (August 16, 2017).


0
2. Supplement No. 4 to part 744 is amended:
0
a. By removing the entry for Australia;
0
b. By removing, under China, one Chinese entity, ``China National 
Commercial New Tone Trading Company Ltd, Room 616, 2nd Building, No. 45 
Fuxingmennei St, Beijing, China, 100801; and No. 45 Fuxing Mennei 
Avenue, Xicheng District, Beijing, China, 100801'';
0
c. By removing, under Iran, one Iranian entity, ``FIMCO FZE, No. 3, 
Rahim Salehi Alley, Akbari St., Roomi Bridge, Dr. Shariati Ave, P.O. 
Box 3379, Tehran, Iran 3379/19395 (See alternate address under 
U.A.E.)'';
0
d. By revising, under Pakistan, five Pakistani entities; and
0
e. By removing under the United Arab Emirates, one Emirati entity, 
``FIMCO FZE, LOB 16, F16401, P.O. Box 61342, JAFZ, U.A.E. (See 
alternate addresses under Iran).''
    The revisions read as follows:

[[Page 44517]]

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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                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
PAKISTAN...............                                         * * * * * *
                         IKAN Engineering Services,    For all items        Presumption of     79 FR 56003, 9/18/
                          a.k.a., the following one     subject to the       denial.            14. 82 FR
                          alias:                        EAR. (See Sec.                          [INSERT FR PAGE
                                                        744.11 of the EAR)                      NUMBER], 9/25/
                                                                                                2017.
                         --IKAN Sourcing.
 
                         34-KM Shamki Bhattian Multan
                          Road, Lahore, Pakistan; and
                          Plot 7, 1-11/3 Markaz,
                          Islamabad, Pakistan; and
                          Building #7, #9 Sanitary
                          Market I-11/3 Islamabad,
                          Pakistan; and House #B-4,
                          Block-F Gulshane- Jamal,
                          Karachi, Pakistan; and 84/L
                          Shah Rukn-e-Alam Colony
                          Multan, Pakistan.
                         Iman Group, a.k.a., the       For all items        Presumption of     82 FR 24245, 5/26/
                          following one alias:          subject to the       denial.            17. 82 FR
                                                        EAR. (See Sec.                          [INSERT FR PAGE
                                                        744.11 of the EAR)                      NUMBER], 9/25/
                                                                                                2017.
                         --Pana Communication Inc.
 
                         Plot No. 227, St. No. 7,
                          Sector I-9/2, Industrial
                          Area, Near Dry Port,
                          Islamabad, Pakistan; and 70-
                          East A.A. Plaza, Mezz.
                          Floor Blue Area, Islamabad
                          44000, Capital, Pakistan.
                         Interscan, Sattar Villa B,    For all items        Presumption of     82 FR 24245, 5/26/
                          32/1-C-1 Block-6,             subject to the       denial.            17. 82 FR
                          P.E.C.H.S., Karachi 75400i,   EAR. (See Sec.                          [INSERT FR PAGE
                          Sindh, Pakistan.              744.11 of the EAR)                      NUMBER], 9/25/
                                                                                                2017.
                                                                * * * * * *
                         Makkays Hi-Tech Systems,      For all items        Presumption of     82 FR 24245, 5/26/
                          a.k.a., the following one     subject to the       denial.            17. 82 FR
                          alias:                        EAR. (See Sec.                          [INSERT FR PAGE
                                                        744.11 of the EAR)                      NUMBER], 9/25/
                                                                                                2017.
                         -- Zaib Electronics.
 
                         Block 14 Civic Centre, G-6
                          Markaz, Islamabad,
                          Pakistan; and Kulsum Plaza,
                          42 Jinnah Avenue,
                          Islamabad, Pakistan; and
                          Basement Khyber Plaza,
                          Barma Town, near Barma
                          Bridge, Lehtrar Road,
                          Islamabad, Pakistan; and
                          House No. 675, Street No.
                          19, G-9/3, Islamabad,
                          Pakistan.
                                                                * * * * * *
                         Micado, 40-C, Block-6,        For all items        Presumption of     82 FR 24245, 5/26/
                          P.E.C.H.S., Shahrah-e-        subject to the       denial.            17. 82 FR
                          Faisal, Karachi, Sindh,       EAR. (See Sec.                          [INSERT FR PAGE
                          Pakistan.                     744.11 of the EAR)                      NUMBER], 9/25/
                                                                                                2017.
                                                                * * * * * *
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    Dated: September 19, 2017.
Richard E. Ashooh,
Assistant Secretary for Export Administration.
[FR Doc. 2017-20406 Filed 9-22-17; 8:45 am]
 BILLING CODE 3510-33-P