Revisions to the Unverified List; Clarifications to Activities and Criteria That May Lead to Additions to the Entity List, 61971-61977 [2022-21714]
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(4) Expanding the scope of foreignproduced items subject to license
requirements for twenty-eight existing
entities on the Entity List that are
located in China;
(5) Adding certain semiconductor
manufacturing equipment to the CCL;
(6) Adding new license requirements
for items destined to a semiconductor
fabrication ‘‘facility’’ in China that
fabricates ICs meeting specified criteria;
(7) Adding new license requirements
for items used in the ‘‘development’’ or
‘‘production’’ of semiconductor
manufacturing equipment and related
items in China; and
(8) Informing the public that specific
activities of ‘‘U.S. persons’’ that
‘support’ the ‘‘development’’ or
‘‘production’’ of certain ICs in the PRC
require a license.
Lastly, to minimize the short term
impact on the semiconductor supply
chain from this rule, BIS is establishing
a Temporary General License to permit
specific, limited manufacturing
activities in China related to items
destined for use outside China and is
identifying a model certificate that may
be used in compliance programs to
assist, along with other measures, in
conducting due diligence.
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Scope of the Briefing and Process for
Submitting Questions
The briefing conducted by Under
Secretary Estevez and Assistant
Secretary Kendler will address
important aspects of the October 7
interim final rule and associated
actions. The October 7 interim final rule
is open for a sixty-day public comment
until the date specified in the DATES
section of the interim final rule.
Note that no verbal public comments
will be accepted during the public
briefing, which will be held virtually via
audio only. Questions for BIS may be
submitted in writing to
OEXSsubmissions@bis.doc.gov until 3
p.m. EDT on October 11, 2022. Please
tag the questions submitted by adding
‘‘Public Briefing on China Actions’’ in
the subject line. Such questions will be
addressed as time and subject matter
permit.
Process for Submitting Comments on
the Interim Final Rule
Written comments on the rule must be
received by BIS no later than the date
specified in the DATES section of the
October 7 interim final rule:
Implementation of Additional Export
Controls: Certain Advanced Computing
and Semiconductor Manufacturing
Items; Supercomputer and
Semiconductor End Use; Entity List
Modification. See the ADDRESSES section
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of the interim final rule for instructions
on submitting written comments.
Matthew S. Borman,
Deputy Assistant Secretary for Export
Administration.
[FR Doc. 2022–22037 Filed 10–7–22; 11:15 am]
BILLING CODE 3510–33–P
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Part 744
[Docket No. 220930–0205]
RIN 0694–AI51
Revisions to the Unverified List;
Clarifications to Activities and Criteria
That May Lead to Additions to the
Entity List
Bureau of Industry and
Security, Department of Commerce.
ACTION: Final rule.
AGENCY:
The Bureau of Industry and
Security (BIS) is amending the Export
Administration Regulations (EAR) by
adding 31 persons to the Unverified List
(UVL). The 31 persons are added to the
UVL on the basis that BIS was unable
to verify their bona fides because an
end-use check could not be completed
satisfactorily for reasons outside the
U.S. Government’s control. All 31
persons are being added under the
destination of the People’s Republic of
China (China). This rule also removes
nine persons, all under the destination
of China, from the UVL because BIS was
able to verify their bona fides. With this
final rule, BIS also clarifies the activities
and criteria that may lead to the
addition of an entity to the Entity List,
including a sustained lack of
cooperation by the host government
(e.g., the government of the country in
which an end-use check is to be
conducted) that effectively prevents BIS
from determining compliance with the
EAR.
SUMMARY:
DATES:
This rule is effective October 7,
2022.
FOR FURTHER INFORMATION CONTACT:
Linda Minsker, Director, Office of
Enforcement Analysis, Phone: (202)
482–4255 or by email at UVLRequest@
bis.doc.gov.
SUPPLEMENTARY INFORMATION:
Background
The UVL, set forth in supplement no.
6 to part 744 of the EAR (15 CFR parts
730–774), contains the names and
addresses of foreign persons who are or
have been parties to a transaction, as
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described in § 748.5 of the EAR,
involving the export, reexport, or
transfer (in-country) of items subject to
the EAR. These foreign persons are
added to the UVL because BIS or federal
officials acting on BIS’s behalf were
unable to verify their bona fides (i.e.,
legitimacy and reliability relating to the
end use and end user of items subject
to the EAR) through the completion of
an end-use check. Sometimes these
checks, such as a pre-license check
(PLC) or a post-shipment verification
(PSV), cannot be completed
satisfactorily for reasons outside the
U.S. Government’s control.
There are any number of reasons why
these checks cannot be completed to the
satisfaction of the U.S. Government. The
reasons include, but are not limited to:
(1) reasons unrelated to the cooperation
of the foreign party subject to the enduse check (for example, BIS sometimes
initiates end-use checks but is unable to
complete them because the foreign party
cannot be found at the address indicated
on the associated export documents and
BIS cannot contact the party by
telephone or email); (2) reasons related
to a lack of cooperation by the host
government that fails to schedule and
facilitate the completion of an end-use
check, for example by host government
agencies’ lack of responses to requests to
conduct end-use checks, actions
preventing the scheduling of such
checks, or refusals to schedule checks in
a timely manner; or (3) when, during the
end-use check, a recipient of items
subject to the EAR is unable to produce
the items that are the subject of the enduse check for visual inspection or
provide sufficient documentation or
other evidence to confirm the
disposition of the items. BIS’s inability
to confirm the bona fides of foreign
persons subject to end-use checks for
the reasons described above raises
concerns about the suitability of such
persons as participants in future
exports, reexports, or transfers (incountry) of items subject to the EAR;
this also indicates a risk that such items
may be diverted to prohibited end uses
and/or end users. Under such
circumstances, there may not be
sufficient information to add the foreign
person at issue to the Entity List under
§ 744.11 of the EAR. Therefore, BIS may
add the foreign person to the UVL.
As provided in § 740.2(a)(17) of the
EAR, the use of license exceptions for
exports, reexports, and transfers (incountry) involving a party or parties to
the transaction who are listed on the
UVL is suspended. Additionally, under
§ 744.15(b) of the EAR, there is a
requirement for exporters, re-exporters,
and transferors to obtain (and maintain
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a record of) a UVL statement from a
party or parties to the transaction who
are listed on the UVL before proceeding
with exports, reexports, and transfers
(in-country) to such persons, when the
exports, reexports and transfers (incountry) are not subject to a license
requirement. Finally, pursuant to
§ 758.1(b)(8), Electronic Export
Information (EEI) must be filed in the
Automated Export System (AES) for all
exports of tangible items subject to the
EAR when a party or parties to the
transaction is/are listed on the UVL.
Requests for the removal of a UVL
entry must be made in accordance with
§ 744.15(d) of the EAR. Decisions
regarding the removal or modification of
UVL entry are made by the Deputy
Assistant Secretary for Export
Enforcement on the basis of a
demonstration by the listed person of
their bona fides.
Additions to the UVL
This rule adds 31 persons to the UVL
by amending supplement no. 6 to part
744 of the EAR to include their names
and addresses. BIS is adding these
persons pursuant to § 744.15(c) of the
EAR. This final rule implements the
decision to add the following 31 persons
located in China to the UVL:
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China
1. Beijing Naura Magnetoelectric
Technology Co., Ltd.
2. Beijing PowerMac Company
3. CCIC Southern Electronic Product
Testing Co., Ltd.
4. Chang Zhou Jin Tan Teng Yuan
Machinery Parts Co., Ltd.
5. Institute of Mineral Resources,
Chinese Academy of Geological
Sciences
6. Chinese Academy of Science (CAS)
Institute of Chemistry
7. Chongqing Optel Telecom
8. Chongqing Xinyuhang Technology
Co., Ltd.
9. Dandong Nondestructive Electronics
10. DK Laser Company Ltd.
11. Foshan Huaguo Optical Co., Ltd.
12. GRG Metrology & Test (Chongqing)
Co., Ltd.
13. Guangdong Dongling Carbon Tech.
Co., Ltd.
14. Guangxi Yuchai Machinery Co., Ltd.
15. Guangzhou GRG Metrology & Test
(Beijing) Co., Ltd.
16. Jialin Precision Optics (Shanghai)
Co., Ltd.
17. Lishui Zhengyang Electric Power
Construction
18. Nanjing Gova Technology Co., Ltd.
19. Ningbo III Lasers Technology Co.,
Ltd.
20. Qingdao Sci-Tech Innovation
Quality Testing Co., Ltd.
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21. Shanghai Tech University
22. Suzhou Sen-Chuan Machinery
Technology Co., Ltd.
23. Tianjin Optical Valley Technology
Co., Ltd.
24. University of Chinese Academy of
Sciences
25. University of Shanghai for Science
and Technology
26. Vital Advanced Materials Co., Ltd.
27. Wuhan Institute of Biological
Products Co., Ltd.
28. Wuhan Juhere Photonic Tech Co.,
Ltd.
29. Wuxi Hengling Technology Co., Ltd.
30. Xian Zhongsheng Shengyuan
Technology Co., Ltd.
31. Yangtze Memory Technologies Co.,
Ltd.
Removals From the UVL.
This final rule removes nine persons
from the UVL after BIS was able to
verify their bona fides. This rule
removes Anhui Institute of Metrology,
Chuzhou HKC Optoelectronics
Technology Co., Ltd., Hefei Anxin Reed
Precision Co. Ltd., Hefei Institutes of
Physical Science, Jiutian Intelligent
Equipment Co. Ltd., Suzhou Gyz
Electronic Technology Co. Ltd., Suzhou
Lylap Mould Technology Co Ltd., Wuxi
Biologics Co., Ltd., and Wuxi Turbine
Blade Co., Ltd. from the UVL, all under
the destination of China. BIS is
removing these nine persons pursuant
to § 744.15(c)(2) of the EAR.
Changes to § 744.11
The inability of BIS to determine
compliance with the EAR because of a
host government’s action or inaction
creates a circumstance that may place
an entity at significant risk of being or
becoming involved in activities contrary
to the national security or foreign policy
interests of the United States. For
example, as previously mentioned, BIS
frequently conducts end-use checks of
foreign parties to verify their bona fides,
thereby mitigating the risk of diversion
of items subject to the EAR. If BIS is
unable to conduct timely end-use
checks, BIS’s ability to prevent
diversion and resolve concerns about
potentially problematic end uses and
users is negatively impacted. The
sustained and deliberate prevention of
an end-use check by a foreign
government is therefore contrary to the
national security and foreign policy
interests of the United States. Further,
the inability of an entity to receive a
timely end-use check could lead to the
determination that it is at significant
risk of involvement in activities
contrary to U.S. national security or
foreign policy interests, leading to
concerns regarding its receipt of items
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subject to the EAR. To better reflect the
nature of the risk presented by such
entities, when the risk assessed is the
result of the actions of the relevant host
government authority rather than the
actions of the entities themselves, BIS is
revising the heading of § 744.11, as well
as the introductory text of § 744.11 and
§ 744.11(b), by adding language to also
refer to entities that are ‘‘at significant
risk’’ of acting contrary to the foreign
policy and national security interests of
the United States.
This includes sustained lack of
cooperation by the host government to
schedule and facilitate the completion
of end-use checks. Particularly for
entities identified on the UVL pursuant
to § 744.15, this lack of cooperation
could result in sufficient concern such
that the End-User Review Committee
(ERC) could make the determination
that the addition of the entity to the
Entity List will enhance BIS’s ability to
prevent violations of the EAR.
Therefore, BIS also amends the EAR by
providing an additional illustrative
example to specify that situations in
which there is a sustained lack of
cooperation by a host government
authority that prevents an end-use
check from being conducted may
constitute a basis for adding a party to
the Entity List. This activity is being
added to the illustrative list in
§ 744.11(b) of activities contrary to the
national security and foreign policy
interests of the United States that may
support the addition of entities to the
Entity List.
Additions to, removals from, or other
modifications to the Entity List will
remain consistent with procedures
described in supplement no. 5 to part
744 of the EAR. As part of that process,
the ERC, which is 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.
Additional EAR Changes
This final rule also makes additional
changes to the EAR. To better align the
multiple lists found in part 744, BIS is
changing the Federal Register citation
column in the UVL to match those of
the other lists. Prior to this rule, it read
‘‘Federal Register citation and date of
publication’’ and it will now read
‘‘Federal Register citation.’’ Please note
that, like the other lists in part 744, the
UVL’s citation column will still include
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the date of publication, however, the
date remains part of the broader citation
itself for the purposes of the list.
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. Sections 4801–4852.
ECRA provides the legal basis for BIS’s
principal authorities and serves as the
authority under which BIS issues this
final rule.
Savings Clause
Shipments (1) that are removed from
license exception eligibility or that are
now subject to requirements in § 744.15
of the EAR as a result of this regulatory
action; (2) that were eligible for export,
reexport, or transfer (in-country)
without a license before this regulatory
action; and (3) that were on dock for
loading, on lighter, laden aboard an
exporting carrier, or enroute aboard a
carrier to a port of export, on October 7,
2022, pursuant to actual orders, may
proceed to that UVL listed person under
the previous license exception
eligibility or without a license and
pursuant to the export clearance
requirements set forth in part 758 of the
EAR that applied prior to this person
being listed on the UVL, so long as the
items have been exported from the
United States, reexported or transferred
(in-country) before November 7, 2022.
Any such items not actually exported,
reexported or transferred (in-country)
before midnight on November 7, 2022
are subject to the requirements in
§ 744.15 of the EAR in accordance with
this regulation.
Rulemaking Requirements
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Executive Order Requirements
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, distribute 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 final rule is a
‘‘significant regulatory action’’ under
Executive Order 12866.
This rule does not contain policies
with federalism implications as that
term is defined under Executive Order
13132.
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Paperwork Reduction Act
Requirements
parts 730 through 774) is amended as
follows:
Notwithstanding any other provision
of law, no person is required to respond
to, nor is 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 action contains collections of
information approved by OMB under
the following control numbers:
• OMB Control Number 0694–0088—
Simple Network Application Process
and Multipurpose Application Form
• OMB Control Number 0694–0122—
Miscellaneous Licensing
Responsibilities and Enforcement
• OMB Control Number 0694–0134—
Entity List and Unverified List
Requests
• OMB Control Number 0694–0137—
License Exemptions and Exclusions
BIS believes that the overall increases
in burdens and costs will be minimal
and will fall within the already
approved amounts for these existing
collections.
Information regarding these
collections including all supporting
materials can be reviewed at
www.reginfo.gov/public/do/PRAMain.
Find the particular information
collection by using the search function
and entering the OMB Control Number,
0694–0088, 0694–0122, 0694–0134, or
0694–0137.
PART 744—[AMENDED]
Administrative Procedure Act and
Regulatory Flexibility Act
Requirements
Pursuant to Section 4821 of ECRA,
this action is exempt from the
Administrative Procedure Act (5 U.S.C.
553) requirements for notice of
proposed rulemaking and opportunity
for public participation.
Further, no other law requires notice
of proposed rulemaking or opportunity
for public comment for this final rule.
Because a notice of proposed
rulemaking and an opportunity for
public comment are not required under
the Administrative Procedure Act 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
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1. The authority citation for 15 CFR
part 744 is revised to read as follows:
■
Authority: 50 U.S.C. 4801–4852; 50 U.S.C.
4601 et seq.; 50 U.S.C. 1701 et seq.; 22 U.S.C.
3201 et seq.; 42 U.S.C. 2139a; 22 U.S.C. 7201
et seq.; 22 U.S.C. 7210; E.O. 12058, 43 FR
20947, 3 CFR, 1978 Comp., p. 179; E.O.
12851, 58 FR 33181, 3 CFR, 1993 Comp., p.
608; E.O. 12938, 59 FR 59099, 3 CFR, 1994
Comp., p. 950; E.O. 13026, 61 FR 58767, 3
CFR, 1996 Comp., p. 228; E.O. 13099, 63 FR
45167, 3 CFR, 1998 Comp., p. 208; E.O.
13222, 66 FR 44025, 3 CFR, 2001 Comp., p.
783; E.O. 13224, 66 FR 49079, 3 CFR, 2001
Comp., p. 786; Notice of November 10, 2021,
86 FR 62891 (November 12, 2021); Notice of
September 19, 2022, 87 FR 57569 (September
19, 2022).
2. Section 744.11 is revised to read as
follows:
■
§ 744.11 License requirements that apply
to entities acting or at significant risk of
acting contrary to the national security or
foreign policy interests of the United States.
BIS may impose foreign policy export,
re-export, and transfer (in-country)
license requirements, limitations on
availability of license exceptions, and
set license application review policy
based on the criteria in this section.
Such requirements, limitations and
policy are in addition to those set forth
elsewhere in the EAR. License
requirements, limitations on use of
license exceptions, and license
application review policies will be
imposed under this section by adding
an entity to the Entity List (supplement
no. 4 to this part) with a reference to
this section and by stating on the Entity
List the license requirements and
license application review policies that
apply to that entity, or by informing an
exporter, re-exporter, or transferor
pursuant to paragraph (c) of this section
that a specific entity is subject to a
license requirement, limitations on use
of license exceptions and license
application review policies as specified
in a specific notice provided to an
exporter, re-exporter, or transferor. BIS
may remove an entity from the Entity
List if it is no longer engaged in the
activities described in paragraph (b) of
this section and is unlikely to engage in
such activities in the future, or if it is
no longer at significant risk of acting
contrary to the national security or
foreign policy interests of the United
States as described therein. BIS may
modify the license exception limitations
and license application review policies
that apply to a particular entity to
implement the policies of this section.
BIS will implement the provisions of
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this section in accordance with the
decisions of the End-User Review
Committee or, if appropriate in a
particular case, in accordance with the
decisions of the body to which the EndUser Review Committee decision is
escalated. The End-User Review
Committee will follow the procedures
set forth in supplement no. 5 to this
part.
(a) License requirement, availability of
license exceptions, and license
application review policy. A license is
required, to the extent specified on the
Entity List, to export, reexport, or
transfer (in-country) any item subject to
the EAR when an entity that is listed on
the Entity List is a party to the
transaction as described in § 748.5(c)
through (f) of the EAR unless otherwise
authorized or excluded in this section.
License exceptions may not be used
unless authorized in the Entity List
entry for the entity that is party to the
transaction. Applications for licenses
required by this section will be
evaluated as stated in the Entity List
entry for the entity that is party to the
transaction, in addition to any other
applicable review policy stated
elsewhere in the EAR.
(1) Standards related activity. A
license is not required for the release of
‘‘technology’’ or ‘‘software’’ designated
EAR99 or controlled on the CCL for
anti-terrorism reasons only, when such
a release is for a ‘‘standards-related
activity.’’ In addition, a license is not
required for the release of the following
ECCN ‘‘items’’ level paragraphs of
‘‘technology’’ or ‘‘software’’ specifically
for the ‘‘development,’’ ‘‘production,’’ or
‘‘use’’ of cryptographic functionality
when such a release is for a ‘‘standardsrelated activity:’’ ‘‘software’’ that is
classified under ECCN 5D002.b or
5D002.c.1 (for equipment specified in
ECCN 5A002.a and 5A002.c only);
‘‘technology’’ that is classified under
ECCN 5E002 (for equipment specified in
ECCN 5A002.a, .b and .c); and
‘‘technology’’ for software controlled
under ECCN 5D002.b or .c.1 (for
equipment specified in ECCN 5A002.a
and .c only).
(2) Entity List Foreign-Direct Product
(FDP) license requirements, review
policy, and license exceptions. You may
not, without a license or license
exception, reexport, export from abroad,
or transfer (in-country) any foreignproduced item subject to the EAR
pursuant to § 734.9(e) of the EAR to any
end user described in § 734.9(e)(2) of the
EAR. All license exceptions described
in part 740 of the EAR are available for
foreign-produced items that are subject
to this license requirement if all terms
and conditions of the applicable license
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exception are met and the restrictions in
§ 740.2 do not apply. The sophistication
and capabilities of technology in items
is a factor in license application review;
license applications for foreignproduced items subject to a license
requirement by this paragraph (a)(2) that
are capable of supporting the
‘‘development’’ or ‘‘production’’ of
telecom systems, equipment and
devices below the 5G level (e.g., 4G, 3G)
will be reviewed on a case-by-case basis.
(b) Criteria for revising the Entity List.
Entities for which there is reasonable
cause to believe, based on specific and
articulable facts, that the entity has been
involved, is involved, or poses a
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 entities may be
added to the Entity List pursuant to this
section. An entity may pose a significant
risk through certain circumstances that
may be outside of its own control. Such
circumstances that may place an entity
at significant risk include situations
involving a sustained lack of
cooperation by a host government
authority, for example, by preventing an
end-use check from being conducted,
that effectively prevents BIS from
determining compliance with the EAR.
This section may not be used to place
on the Entity List any party to which
exports or reexports require a license
pursuant to § 744.8, § 744.12, § 744.13,
§ 744.14, or § 744.18. This section may
not be used to place any U.S. person, as
defined in § 772.1 of the EAR, on the
Entity List. Paragraphs (b)(1) through (5)
of this section provide an illustrative list
of activities that could be or represent
a significant risk of being contrary to the
national security or foreign policy
interests of the United States.
(1) Supporting persons engaged in
acts of terror.
(2) Actions that could enhance the
military capability of, or the ability to
support terrorism of governments that
have been designated by the Secretary of
State as having repeatedly provided
support for acts of international
terrorism.
(3) Transferring, developing,
servicing, repairing or producing
conventional weapons in a manner that
is contrary to United States national
security or foreign policy interests or
enabling such transfer, service, repair,
development, or production by
supplying parts, components,
technology, or financing for such
activity.
(4) Prevention of the accomplishment
of an end use check conducted by or on
behalf of BIS or the Directorate of
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Defense Trade Controls of the
Department of State by:
(i) The entity precluding access to;
refusing to provide information about;
or providing false or misleading
information about parties to the
transaction or the item to be checked.
The conduct in this example includes:
expressly refusing to permit a check;
providing false or misleading
information; or engaging in dilatory or
evasive conduct that effectively
prevents the check from occurring or
makes the check inaccurate or useless.
A nexus between the conduct of the
party to be listed and the failure to
produce a complete, accurate and useful
check is required, even though an
express refusal by the party to be listed
is not required; or
(ii) A sustained lack of cooperation by
the host government to schedule and
facilitate the completion of an end-use
check of entities identified on the
Unverified List pursuant to § 744.15,
resulting in sufficient concern such that
the End-User Review Committee
believes that prior review of exports,
reexports, or transfers (in-country)
involving the entity and the possible
imposition of license conditions or
license denial enhance BIS’s ability to
prevent violations of the EAR.
(5) Engaging in conduct that poses a
risk of violating the EAR when such
conduct raises sufficient concern that
the End-User Review Committee
believes that prior review of exports,
reexports, or transfers (in-country)
involving the party and the possible
imposition of license conditions or
license denial enhances BIS’s ability to
prevent violations of the EAR.
(c) Additional prohibition on persons
informed by BIS. BIS may inform
persons, either individually by specific
notice or through amendment to the
EAR, that a license is required for:
(1) A specific export, reexport, or
transfer (in-country) because there is an
unacceptable risk that the export,
reexport, or transfer (in-country) is
intended to circumvent the license
requirement imposed on an entity listed
in supplement no. 4 to this part; or
(2) The export, reexport, or transfer
(in-country) of specified items to a
certain party because there is an
unacceptable risk that the party is acting
as an agent, front, or shell company for
an entity listed in supplement no. 4 to
this part, or is otherwise assisting that
listed entity in circumventing the
license requirement set forth in that
entity’s entry in supplement no. 4 to
this part; or
(3) The export, reexport, or transfer
(in-country) of specified items to a
certain party because there is reasonable
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cause to believe, based on specific and
articulable facts, that the entity has been
involved, is involved, or poses a
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 entity. Specific
notice will be given only by, or at the
direction of, the Deputy Assistant
Secretary for Export Administration.
When such notice is provided orally, it
will be followed by written notice
within two working days signed by the
Deputy Assistant Secretary for Export
Administration or the Deputy Assistant
Secretary’s designee. The specific notice
will include the license requirement,
limitations on use of license exceptions,
and license application review policy
with which that exporter, re-exporter, or
transferor must comply pursuant to this
paragraph (c)(3). The ERC may add such
entities to the Entity List in supplement
no. 4 to this part.
■ 3. Supplement no. 6 to part 744 is
amended by:
■ a. Revising the heading of the final
column in the supplement; and
■ b. Under CHINA, PEOPLE’S
REPUBLIC OF by:
■ i. Removing the entry ‘‘Anhui
Institute of Metrology;’’
■ ii. Adding entries, in alphabetical
order, for the following entities: ‘‘Beijing
Naura Magnetoelectric Technology Co.,
Ltd.;’’ ‘‘Beijing PowerMac Company;’’
Country
Listed person and address
*
CHINA, PEOPLE’S
REPUBLIC OF
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‘‘CCIC Southern Electronic Product
Testing Co., Ltd.;’’ ‘‘Chang Zhou Jin Tan
Teng Yuan Machinery Parts Co., Ltd;’’
‘‘Chinese Academy of Geological
Sciences, Institute of Mineral
Resources;’’ ‘‘Chinese Academy of
Science (CAS) Institute of Chemistry;’’
‘‘Chongqing Optel Telecom;’’ and
‘‘Chongqing Xinyuhang Technology Co.,
Ltd.;’’
■ iii. Removing entry for ‘‘Chuzhou
HKC Optoelectronics Technology Co.,
Ltd.;’’
■ iv. Adding entries, in alphabetical
order, for the following entities:
‘‘Dandong Nondestructive Electronics;’’
‘‘DK Laser Company Ltd.;’’ ‘‘Foshan
Huaguo Optical Co., Ltd.;’’ ‘‘GRG
Metrology & Test (Chongqing) Co.,
Ltd.;’’ ‘‘Guangdong Dongling Carbon
Tech. Co., Ltd.;’’ ‘‘Guangxi Yuchai
Machinery Co., Ltd.;’’ and ‘‘Guangzhou
GRG Metrology & Test (Beijing) Co.,
Ltd.;’’
■ v. Removing entries for ‘‘Hefei Anxin
Reed Precision Co., Ltd.;’’ and ‘‘Hefei
Institutes of Physical Science;’’
■ vi. Adding an entry, in alphabetical
order, for the following entity: ‘‘Jialin
Precision Optics (Shanghai) Co., Ltd.;’’
■ vii. Removing the entry for ‘‘Jiutian
Intelligent Equipment Co., Ltd.’’;
■ viii. Adding entries, in alphabetical
order, for the following entities: ‘‘Lishui
Zhengyang Electric Power
Construction;’’ ‘‘Nanjing Gova
Technology Co., Ltd.;’’ ‘‘Ningbo III
Lasers Technology Co., Ltd.;’’ ‘‘Qingdao
*
Sci-Tech Innovation Quality Testing
Co., Ltd.;’’ and ‘‘Shanghai Tech
University;’’
■ ix. Removing entries for ‘‘Suzhou Gyz
Electronic Technology Co., Ltd.’’ and
‘‘Suzhou Lylap Mould Technology Co.,
Ltd.;’’
■ x. Adding entries, in alphabetical
order, for the following entities:
‘‘Suzhou Sen-Chuan Machinery
Technology Co., Ltd.;’’ ‘‘Tianjin Optical
Valley Technology Co., Ltd.;’’
‘‘University of Chinese Academy of
Sciences, School of Chemical Sciences;’’
‘‘University of Shanghai for Science and
Technology;’’ ‘‘Vital Advanced
Materials Co., Ltd.;’’ ‘‘Wuhan Institute
of Biological Products Co., Ltd.;’’ and
‘‘Wuhan Juhere Photonic Tech Co.,
Ltd.;’’
■ xi. Removing the entry ‘‘Wuxi
Biologics Co., Ltd.;’’
■ xii. Adding an entry, in alphabetical
order, for the following entity: ‘‘Wuxi
Hengling Technology Co., Ltd.;’’
■ xii. Removing they entry for ‘‘Wuxi
Turbine Blade Co., Ltd.;’’ and
■ xiv. Adding entries, in alphabetical
order, for the following entities: ‘‘Xian
Zhongsheng Shengyuan Technology
Co., Ltd.’’ and ‘‘Yangtze Memory
Technologies Co., Ltd.’’
The revision and additions read as
follows:
Supplement No. 6 to Part 744—
Unverified List
Federal Register citation
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Beijing Naura Magnetoelectric Technology Co., Ltd., M4 No 1
Jiuxianqiao East Road, Chaoyang District, Beijing 100015,
China.
Beijing PowerMac Company, B–1501, Calzhi International
Building’, 18 Zhongguancun East Road, Haidian District,
Beijing, China.
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CCIC Southern Electronic Product Testing Co., Ltd., Electronic Testing Bldg. No 43 Shahe Rd Xili Jiedao, Nanshan
District, Shenzhen, China.
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Chang Zhou Jin Tan Teng Yuan Machinery Parts Co., Ltd.,
116 Huafeng road, Jintan Economic Development Zone,
Changzhou China.
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Chinese Academy of Geological Sciences, Institute of Mineral
Resources, Baiwangzhuang Main Street No 26, Xicheng
District, Beijing 100037, China.
Chinese Academy of Science (CAS) Institute of Chemistry, 2
Zhongguancun North 1st Street, Haidian District, Beijing
100190, China.
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Federal Register citation
Chongqing Optel Telecom, No 1 6f Building 7, No 106 West
Jinkai Avenue, Yubei District, Chongqing 401121, China.
Chongqing Xinyuhang Technology Co., Ltd., Shanying Workshop, liangjiang Avenue, Longxing Town, Yubei District,
Chongqing 401135, China.
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Dandong Nondestructive Electronics, No 2 Tonghe Street
Jinshan Industrial Park, Yuanbao District Dandong,
Dandong 118000, China.
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DK Laser Company Ltd., Zhuodas Jingu Industrial Park #4,
Jinlong New District, Xiangyin, Hunan Province, , China.
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Foshan Huaguo Optical Co., Ltd., No 3 Changhong East
Road, Zhangcha Street, Foshan City 528051, China.
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GRG Metrology & Test (Chongqing) Co., Ltd., The 3rd floor
of building A no 37 Cuitao Road, Chongqing City, China.
Guangdong Dongling Carbon Tech. Co., Ltd., #83 Shatong
Road, Shabu County, Dalang Town Dongguan city,
Guangdong 523770, China.
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Guangxi Yuchai Machinery Co., Ltd., 8 Tinqiao West rd.,
Yulin Guanxi Province 537005, China.
Guangzhou GRG Metrology & Test (Beijing) Co., Ltd., 1st2nd floor, 5th building, No 8 courtyard, No. 2 Street of Cold
Water Economic and Technological Development Zone,
Beijing, China.
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Jialin Precision Optics (Shanghai) Co., Ltd., Western Section
Floor 1 No 1 Dongcheng Er lu, Pujiang Town Minhang District, Shanghai 201112, China.
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Lishui Zhengyang Electric Power Construction, 573 Nanshan
Road Nanshan Park Liandu, Industrial Zone Zhejiang,
Lishui, China.
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Nanjing Gova Technology Co., Ltd., No 66 Qixia Avenue,
Nanjing Economic and Technological Development Zone,
Nanjing, Jiangsu Province, China.
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Ningbo III Lasers Technology Co., Ltd., Phase II Binjiang
Equipment Park, Fenglin Road Beilun District, Ningbo City
315803, China.
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Qingdao Sci-Tech Innovation Quality Testing Co., Ltd., Huaye
Building, Lanbeizhizao Gongchang, No 1 Jinye Road, HighTech Zone, Qingdao, China.
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ShanghaiTech University, 393 Middle Huaxia Rd, School of
Phy Sci and Tech, Pudong, Shanghai201210, China.
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Suzhou Sen-Chuan Machinery Technology Co., Ltd., No 3
Yantou Road, Huayang Village, Wangting town,
Xiangcheng DistrictSuzhou 215155, China.
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Tianjin Optical Valley Technology Co., Ltd., 5–1 2–104
Qingda Boya industrial Park Beichen District, Tianjin
30400, China.
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Federal Register citation
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University of Chinese Academy of Sciences, School of Chemical Sciences, # 19 (A) Yuquan Road, Shijingshan District,
Beijing 100049, China.
University of Shanghai for Science and Technology, 516
Jungong Road, Shanghai 200093, China.
Vital Advanced Materials Co., Ltd., Zone B No 27–9 BAIJIA
Industrial Park, High Tech Development Zone, Guangdong
Province, Qingyuan 511517, China.
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Wuhan Institute of Biological Products Co., Ltd., No 1 Golden
Industrial Park Road, Zhengdian Street, Jiangxia District,
Wuhan City, Hubei Province, 430207, China.
Wuhan Juhere Photonic Tech Co., Ltd., 2/F Building 12,
Guanggu New Power, Guanggu 2nd Rd East Lake HighTech Zone, Wuhan 430200, China.
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Wuxi Hengling Technology Co., Ltd., Bldg C1 No 999 East
Gaolang rd Binhu District, Wuxi City, Jiangsu Province,
214131, China.
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Xian Zhongsheng Shengyuan Technology Co., Ltd., 9 Gardens at 202 South Second ring Rd, Lianju District, Xian
710000, China.
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Yangtze Memory Technologies Co., Ltd., No. 88 Weilai 3rd
RoadEast Lake High-Tech Development Zone, Wuhan
Hubei 43000, China.
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Thea D. Rozman Kendler,
Assistant Secretary for Export
Administration.
BILLING CODE 3510–33–P
SECURITIES AND EXCHANGE
COMMISSION
17 CFR Part 232
[Release Nos. 33–11101; 34–95817; 39–
2546; IC–34703]
Adoption of Updated EDGAR Filer
Manual
Securities and Exchange
Commission.
ACTION: Final rule.
AGENCY:
The Securities and Exchange
Commission (‘‘Commission’’) is
adopting amendments to Volume II of
the Electronic Data Gathering, Analysis,
and Retrieval system (‘‘EDGAR’’) Filer
Manual (‘‘Filer Manual’’) and related
rules and forms. The EDGAR system
was upgraded on September 19, 2022.
DATES: Effective date: October 13, 2022.
The incorporation by reference of the
Filer Manual is approved by the
Director of the Federal Register as of
October 13, 2022.
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SUMMARY:
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For
questions regarding the amendments to
Volume II of the Filer Manual and
related rules, please contact Rosemary
Filou, Deputy Director and Chief
Counsel, or Jane Patterson, Senior
Special Counsel, in the EDGAR
Business Office at (202) 551–5188. For
questions regarding the electronic
submission of Form 13F confidential
treatment requests and applications for
orders under the Investment Adviser’s
Act of 1940, or Forms N–MFP and N–
CEN, please contact Heather Fernandez,
Financial Analyst, in the Division of
Investment Management at (202) 551–
6708. For questions regarding the
electronic filing requirement of online
Form 144, please contact Christian
Windsor, Senior Special Counsel, in the
Division of Corporation Finance at (202)
551–3419 and Heather Mackintosh,
EDGAR Liaison in the Division of
Corporation Finance at (202) 551–8111.
For questions concerning taxonomies or
schemas, please contact the Office of
Structured Disclosure in the Division of
Economic and Risk Analysis at (202)
551–5494.
SUPPLEMENTARY INFORMATION: We are
adopting an updated Filer Manual,
Volume II: ‘‘EDGAR Filing,’’ Version 63
(September 2022) and amendments to
FOR FURTHER INFORMATION CONTACT:
[FR Doc. 2022–21714 Filed 10–7–22; 8:45 am]
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17 CFR 232.301 (‘‘Rule 301’’). The
updated Filer Manual volume is
incorporated by reference into the Code
of Federal Regulations.
I. Background
The Filer Manual contains
information needed for filers to make
submissions on EDGAR. Filers must
comply with the applicable provisions
of the Filer Manual in order to assure
the timely acceptance and processing of
filings made in electronic format.1 Filers
should consult the Filer Manual in
conjunction with our rules governing
mandated electronic filings when
preparing documents for electronic
submission.
II. Edgar System Changes and
Associated Modifications to Volume II
of the Filer Manual
EDGAR was updated in Releases
22.2.1, 22.2.2, and 22.3, and
corresponding amendments to Volume
II of the Filer Manual are being made to
reflect these changes, as described
below.2
On June 23, 2022, the Commission
adopted amendments to rules to require
1 See
Rule 301 of Regulation S–T.
22.2.1 was deployed on July 15, 2022,
and Release 22.2.2 was deployed on Aug. 15, 2022.
2 Release
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[Federal Register Volume 87, Number 197 (Thursday, October 13, 2022)]
[Rules and Regulations]
[Pages 61971-61977]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-21714]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Part 744
[Docket No. 220930-0205]
RIN 0694-AI51
Revisions to the Unverified List; Clarifications to Activities
and Criteria That May Lead to Additions to the Entity List
AGENCY: Bureau of Industry and Security, Department of Commerce.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Bureau of Industry and Security (BIS) is amending the
Export Administration Regulations (EAR) by adding 31 persons to the
Unverified List (UVL). The 31 persons are added to the UVL on the basis
that BIS was unable to verify their bona fides because an end-use check
could not be completed satisfactorily for reasons outside the U.S.
Government's control. All 31 persons are being added under the
destination of the People's Republic of China (China). This rule also
removes nine persons, all under the destination of China, from the UVL
because BIS was able to verify their bona fides. With this final rule,
BIS also clarifies the activities and criteria that may lead to the
addition of an entity to the Entity List, including a sustained lack of
cooperation by the host government (e.g., the government of the country
in which an end-use check is to be conducted) that effectively prevents
BIS from determining compliance with the EAR.
DATES: This rule is effective October 7, 2022.
FOR FURTHER INFORMATION CONTACT: Linda Minsker, Director, Office of
Enforcement Analysis, Phone: (202) 482-4255 or by email at
[email protected].
SUPPLEMENTARY INFORMATION:
Background
The UVL, set forth in supplement no. 6 to part 744 of the EAR (15
CFR parts 730-774), contains the names and addresses of foreign persons
who are or have been parties to a transaction, as described in Sec.
748.5 of the EAR, involving the export, reexport, or transfer (in-
country) of items subject to the EAR. These foreign persons are added
to the UVL because BIS or federal officials acting on BIS's behalf were
unable to verify their bona fides (i.e., legitimacy and reliability
relating to the end use and end user of items subject to the EAR)
through the completion of an end-use check. Sometimes these checks,
such as a pre-license check (PLC) or a post-shipment verification
(PSV), cannot be completed satisfactorily for reasons outside the U.S.
Government's control.
There are any number of reasons why these checks cannot be
completed to the satisfaction of the U.S. Government. The reasons
include, but are not limited to: (1) reasons unrelated to the
cooperation of the foreign party subject to the end-use check (for
example, BIS sometimes initiates end-use checks but is unable to
complete them because the foreign party cannot be found at the address
indicated on the associated export documents and BIS cannot contact the
party by telephone or email); (2) reasons related to a lack of
cooperation by the host government that fails to schedule and
facilitate the completion of an end-use check, for example by host
government agencies' lack of responses to requests to conduct end-use
checks, actions preventing the scheduling of such checks, or refusals
to schedule checks in a timely manner; or (3) when, during the end-use
check, a recipient of items subject to the EAR is unable to produce the
items that are the subject of the end-use check for visual inspection
or provide sufficient documentation or other evidence to confirm the
disposition of the items. BIS's inability to confirm the bona fides of
foreign persons subject to end-use checks for the reasons described
above raises concerns about the suitability of such persons as
participants in future exports, reexports, or transfers (in-country) of
items subject to the EAR; this also indicates a risk that such items
may be diverted to prohibited end uses and/or end users. Under such
circumstances, there may not be sufficient information to add the
foreign person at issue to the Entity List under Sec. 744.11 of the
EAR. Therefore, BIS may add the foreign person to the UVL.
As provided in Sec. 740.2(a)(17) of the EAR, the use of license
exceptions for exports, reexports, and transfers (in-country) involving
a party or parties to the transaction who are listed on the UVL is
suspended. Additionally, under Sec. 744.15(b) of the EAR, there is a
requirement for exporters, re-exporters, and transferors to obtain (and
maintain
[[Page 61972]]
a record of) a UVL statement from a party or parties to the transaction
who are listed on the UVL before proceeding with exports, reexports,
and transfers (in-country) to such persons, when the exports, reexports
and transfers (in-country) are not subject to a license requirement.
Finally, pursuant to Sec. 758.1(b)(8), Electronic Export Information
(EEI) must be filed in the Automated Export System (AES) for all
exports of tangible items subject to the EAR when a party or parties to
the transaction is/are listed on the UVL.
Requests for the removal of a UVL entry must be made in accordance
with Sec. 744.15(d) of the EAR. Decisions regarding the removal or
modification of UVL entry are made by the Deputy Assistant Secretary
for Export Enforcement on the basis of a demonstration by the listed
person of their bona fides.
Additions to the UVL
This rule adds 31 persons to the UVL by amending supplement no. 6
to part 744 of the EAR to include their names and addresses. BIS is
adding these persons pursuant to Sec. 744.15(c) of the EAR. This final
rule implements the decision to add the following 31 persons located in
China to the UVL:
China
1. Beijing Naura Magnetoelectric Technology Co., Ltd.
2. Beijing PowerMac Company
3. CCIC Southern Electronic Product Testing Co., Ltd.
4. Chang Zhou Jin Tan Teng Yuan Machinery Parts Co., Ltd.
5. Institute of Mineral Resources, Chinese Academy of Geological
Sciences
6. Chinese Academy of Science (CAS) Institute of Chemistry
7. Chongqing Optel Telecom
8. Chongqing Xinyuhang Technology Co., Ltd.
9. Dandong Nondestructive Electronics
10. DK Laser Company Ltd.
11. Foshan Huaguo Optical Co., Ltd.
12. GRG Metrology & Test (Chongqing) Co., Ltd.
13. Guangdong Dongling Carbon Tech. Co., Ltd.
14. Guangxi Yuchai Machinery Co., Ltd.
15. Guangzhou GRG Metrology & Test (Beijing) Co., Ltd.
16. Jialin Precision Optics (Shanghai) Co., Ltd.
17. Lishui Zhengyang Electric Power Construction
18. Nanjing Gova Technology Co., Ltd.
19. Ningbo III Lasers Technology Co., Ltd.
20. Qingdao Sci-Tech Innovation Quality Testing Co., Ltd.
21. Shanghai Tech University
22. Suzhou Sen-Chuan Machinery Technology Co., Ltd.
23. Tianjin Optical Valley Technology Co., Ltd.
24. University of Chinese Academy of Sciences
25. University of Shanghai for Science and Technology
26. Vital Advanced Materials Co., Ltd.
27. Wuhan Institute of Biological Products Co., Ltd.
28. Wuhan Juhere Photonic Tech Co., Ltd.
29. Wuxi Hengling Technology Co., Ltd.
30. Xian Zhongsheng Shengyuan Technology Co., Ltd.
31. Yangtze Memory Technologies Co., Ltd.
Removals From the UVL.
This final rule removes nine persons from the UVL after BIS was
able to verify their bona fides. This rule removes Anhui Institute of
Metrology, Chuzhou HKC Optoelectronics Technology Co., Ltd., Hefei
Anxin Reed Precision Co. Ltd., Hefei Institutes of Physical Science,
Jiutian Intelligent Equipment Co. Ltd., Suzhou Gyz Electronic
Technology Co. Ltd., Suzhou Lylap Mould Technology Co Ltd., Wuxi
Biologics Co., Ltd., and Wuxi Turbine Blade Co., Ltd. from the UVL, all
under the destination of China. BIS is removing these nine persons
pursuant to Sec. 744.15(c)(2) of the EAR.
Changes to Sec. 744.11
The inability of BIS to determine compliance with the EAR because
of a host government's action or inaction creates a circumstance that
may place an entity at significant risk of being or becoming involved
in activities contrary to the national security or foreign policy
interests of the United States. For example, as previously mentioned,
BIS frequently conducts end-use checks of foreign parties to verify
their bona fides, thereby mitigating the risk of diversion of items
subject to the EAR. If BIS is unable to conduct timely end-use checks,
BIS's ability to prevent diversion and resolve concerns about
potentially problematic end uses and users is negatively impacted. The
sustained and deliberate prevention of an end-use check by a foreign
government is therefore contrary to the national security and foreign
policy interests of the United States. Further, the inability of an
entity to receive a timely end-use check could lead to the
determination that it is at significant risk of involvement in
activities contrary to U.S. national security or foreign policy
interests, leading to concerns regarding its receipt of items subject
to the EAR. To better reflect the nature of the risk presented by such
entities, when the risk assessed is the result of the actions of the
relevant host government authority rather than the actions of the
entities themselves, BIS is revising the heading of Sec. 744.11, as
well as the introductory text of Sec. 744.11 and Sec. 744.11(b), by
adding language to also refer to entities that are ``at significant
risk'' of acting contrary to the foreign policy and national security
interests of the United States.
This includes sustained lack of cooperation by the host government
to schedule and facilitate the completion of end-use checks.
Particularly for entities identified on the UVL pursuant to Sec.
744.15, this lack of cooperation could result in sufficient concern
such that the End-User Review Committee (ERC) could make the
determination that the addition of the entity to the Entity List will
enhance BIS's ability to prevent violations of the EAR. Therefore, BIS
also amends the EAR by providing an additional illustrative example to
specify that situations in which there is a sustained lack of
cooperation by a host government authority that prevents an end-use
check from being conducted may constitute a basis for adding a party to
the Entity List. This activity is being added to the illustrative list
in Sec. 744.11(b) of activities contrary to the national security and
foreign policy interests of the United States that may support the
addition of entities to the Entity List.
Additions to, removals from, or other modifications to the Entity
List will remain consistent with procedures described in supplement no.
5 to part 744 of the EAR. As part of that process, the ERC, which is
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.
Additional EAR Changes
This final rule also makes additional changes to the EAR. To better
align the multiple lists found in part 744, BIS is changing the Federal
Register citation column in the UVL to match those of the other lists.
Prior to this rule, it read ``Federal Register citation and date of
publication'' and it will now read ``Federal Register citation.''
Please note that, like the other lists in part 744, the UVL's citation
column will still include
[[Page 61973]]
the date of publication, however, the date remains part of the broader
citation itself for the purposes of the list.
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.
Sections 4801-4852. ECRA provides the legal basis for BIS's principal
authorities and serves as the authority under which BIS issues this
final rule.
Savings Clause
Shipments (1) that are removed from license exception eligibility
or that are now subject to requirements in Sec. 744.15 of the EAR as a
result of this regulatory action; (2) that were eligible for export,
reexport, or transfer (in-country) without a license before this
regulatory action; and (3) that were on dock for loading, on lighter,
laden aboard an exporting carrier, or enroute aboard a carrier to a
port of export, on October 7, 2022, pursuant to actual orders, may
proceed to that UVL listed person under the previous license exception
eligibility or without a license and pursuant to the export clearance
requirements set forth in part 758 of the EAR that applied prior to
this person being listed on the UVL, so long as the items have been
exported from the United States, reexported or transferred (in-country)
before November 7, 2022. Any such items not actually exported,
reexported or transferred (in-country) before midnight on November 7,
2022 are subject to the requirements in Sec. 744.15 of the EAR in
accordance with this regulation.
Rulemaking Requirements
Executive Order Requirements
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, distribute 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 final rule is a ``significant regulatory action''
under Executive Order 12866.
This rule does not contain policies with federalism implications as
that term is defined under Executive Order 13132.
Paperwork Reduction Act Requirements
Notwithstanding any other provision of law, no person is required
to respond to, nor is 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 action contains
collections of information approved by OMB under the following control
numbers:
OMB Control Number 0694-0088--Simple Network Application
Process and Multipurpose Application Form
OMB Control Number 0694-0122--Miscellaneous Licensing
Responsibilities and Enforcement
OMB Control Number 0694-0134--Entity List and Unverified List
Requests
OMB Control Number 0694-0137--License Exemptions and
Exclusions
BIS believes that the overall increases in burdens and costs will
be minimal and will fall within the already approved amounts for these
existing collections.
Information regarding these collections including all supporting
materials can be reviewed at www.reginfo.gov/public/do/PRAMain. Find
the particular information collection by using the search function and
entering the OMB Control Number, 0694-0088, 0694-0122, 0694-0134, or
0694-0137.
Administrative Procedure Act and Regulatory Flexibility Act
Requirements
Pursuant to Section 4821 of ECRA, this action is exempt from the
Administrative Procedure Act (5 U.S.C. 553) requirements for notice of
proposed rulemaking and opportunity for public participation.
Further, no other law requires notice of proposed rulemaking or
opportunity for public comment for this final rule. Because a notice of
proposed rulemaking and an opportunity for public comment are not
required under the Administrative Procedure Act 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 through 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. 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. 783; E.O. 13224, 66 FR 49079, 3 CFR, 2001 Comp., p. 786; Notice
of November 10, 2021, 86 FR 62891 (November 12, 2021); Notice of
September 19, 2022, 87 FR 57569 (September 19, 2022).
0
2. Section 744.11 is revised to read as follows:
Sec. 744.11 License requirements that apply to entities acting or at
significant risk of acting contrary to the national security or foreign
policy interests of the United States.
BIS may impose foreign policy export, re-export, and transfer (in-
country) license requirements, limitations on availability of license
exceptions, and set license application review policy based on the
criteria in this section. Such requirements, limitations and policy are
in addition to those set forth elsewhere in the EAR. License
requirements, limitations on use of license exceptions, and license
application review policies will be imposed under this section by
adding an entity to the Entity List (supplement no. 4 to this part)
with a reference to this section and by stating on the Entity List the
license requirements and license application review policies that apply
to that entity, or by informing an exporter, re-exporter, or transferor
pursuant to paragraph (c) of this section that a specific entity is
subject to a license requirement, limitations on use of license
exceptions and license application review policies as specified in a
specific notice provided to an exporter, re-exporter, or transferor.
BIS may remove an entity from the Entity List if it is no longer
engaged in the activities described in paragraph (b) of this section
and is unlikely to engage in such activities in the future, or if it is
no longer at significant risk of acting contrary to the national
security or foreign policy interests of the United States as described
therein. BIS may modify the license exception limitations and license
application review policies that apply to a particular entity to
implement the policies of this section. BIS will implement the
provisions of
[[Page 61974]]
this section in accordance with the decisions of the End-User Review
Committee or, if appropriate in a particular case, in accordance with
the decisions of the body to which the End-User Review Committee
decision is escalated. The End-User Review Committee will follow the
procedures set forth in supplement no. 5 to this part.
(a) License requirement, availability of license exceptions, and
license application review policy. A license is required, to the extent
specified on the Entity List, to export, reexport, or transfer (in-
country) any item subject to the EAR when an entity that is listed on
the Entity List is a party to the transaction as described in Sec.
748.5(c) through (f) of the EAR unless otherwise authorized or excluded
in this section. License exceptions may not be used unless authorized
in the Entity List entry for the entity that is party to the
transaction. Applications for licenses required by this section will be
evaluated as stated in the Entity List entry for the entity that is
party to the transaction, in addition to any other applicable review
policy stated elsewhere in the EAR.
(1) Standards related activity. A license is not required for the
release of ``technology'' or ``software'' designated EAR99 or
controlled on the CCL for anti-terrorism reasons only, when such a
release is for a ``standards-related activity.'' In addition, a license
is not required for the release of the following ECCN ``items'' level
paragraphs of ``technology'' or ``software'' specifically for the
``development,'' ``production,'' or ``use'' of cryptographic
functionality when such a release is for a ``standards-related
activity:'' ``software'' that is classified under ECCN 5D002.b or
5D002.c.1 (for equipment specified in ECCN 5A002.a and 5A002.c only);
``technology'' that is classified under ECCN 5E002 (for equipment
specified in ECCN 5A002.a, .b and .c); and ``technology'' for software
controlled under ECCN 5D002.b or .c.1 (for equipment specified in ECCN
5A002.a and .c only).
(2) Entity List Foreign-Direct Product (FDP) license requirements,
review policy, and license exceptions. You may not, without a license
or license exception, reexport, export from abroad, or transfer (in-
country) any foreign-produced item subject to the EAR pursuant to Sec.
734.9(e) of the EAR to any end user described in Sec. 734.9(e)(2) of
the EAR. All license exceptions described in part 740 of the EAR are
available for foreign-produced items that are subject to this license
requirement if all terms and conditions of the applicable license
exception are met and the restrictions in Sec. 740.2 do not apply. The
sophistication and capabilities of technology in items is a factor in
license application review; license applications for foreign-produced
items subject to a license requirement by this paragraph (a)(2) that
are capable of supporting the ``development'' or ``production'' of
telecom systems, equipment and devices below the 5G level (e.g., 4G,
3G) will be reviewed on a case-by-case basis.
(b) Criteria for revising the Entity List. Entities for which there
is reasonable cause to believe, based on specific and articulable
facts, that the entity has been involved, is involved, or poses a
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 entities may be added
to the Entity List pursuant to this section. An entity may pose a
significant risk through certain circumstances that may be outside of
its own control. Such circumstances that may place an entity at
significant risk include situations involving a sustained lack of
cooperation by a host government authority, for example, by preventing
an end-use check from being conducted, that effectively prevents BIS
from determining compliance with the EAR. This section may not be used
to place on the Entity List any party to which exports or reexports
require a license pursuant to Sec. 744.8, Sec. 744.12, Sec. 744.13,
Sec. 744.14, or Sec. 744.18. This section may not be used to place
any U.S. person, as defined in Sec. 772.1 of the EAR, on the Entity
List. Paragraphs (b)(1) through (5) of this section provide an
illustrative list of activities that could be or represent a
significant risk of being contrary to the national security or foreign
policy interests of the United States.
(1) Supporting persons engaged in acts of terror.
(2) Actions that could enhance the military capability of, or the
ability to support terrorism of governments that have been designated
by the Secretary of State as having repeatedly provided support for
acts of international terrorism.
(3) Transferring, developing, servicing, repairing or producing
conventional weapons in a manner that is contrary to United States
national security or foreign policy interests or enabling such
transfer, service, repair, development, or production by supplying
parts, components, technology, or financing for such activity.
(4) Prevention of the accomplishment of an end use check conducted
by or on behalf of BIS or the Directorate of Defense Trade Controls of
the Department of State by:
(i) The entity precluding access to; refusing to provide
information about; or providing false or misleading information about
parties to the transaction or the item to be checked. The conduct in
this example includes: expressly refusing to permit a check; providing
false or misleading information; or engaging in dilatory or evasive
conduct that effectively prevents the check from occurring or makes the
check inaccurate or useless. A nexus between the conduct of the party
to be listed and the failure to produce a complete, accurate and useful
check is required, even though an express refusal by the party to be
listed is not required; or
(ii) A sustained lack of cooperation by the host government to
schedule and facilitate the completion of an end-use check of entities
identified on the Unverified List pursuant to Sec. 744.15, resulting
in sufficient concern such that the End-User Review Committee believes
that prior review of exports, reexports, or transfers (in-country)
involving the entity and the possible imposition of license conditions
or license denial enhance BIS's ability to prevent violations of the
EAR.
(5) Engaging in conduct that poses a risk of violating the EAR when
such conduct raises sufficient concern that the End-User Review
Committee believes that prior review of exports, reexports, or
transfers (in-country) involving the party and the possible imposition
of license conditions or license denial enhances BIS's ability to
prevent violations of the EAR.
(c) Additional prohibition on persons informed by BIS. BIS may
inform persons, either individually by specific notice or through
amendment to the EAR, that a license is required for:
(1) A specific export, reexport, or transfer (in-country) because
there is an unacceptable risk that the export, reexport, or transfer
(in-country) is intended to circumvent the license requirement imposed
on an entity listed in supplement no. 4 to this part; or
(2) The export, reexport, or transfer (in-country) of specified
items to a certain party because there is an unacceptable risk that the
party is acting as an agent, front, or shell company for an entity
listed in supplement no. 4 to this part, or is otherwise assisting that
listed entity in circumventing the license requirement set forth in
that entity's entry in supplement no. 4 to this part; or
(3) The export, reexport, or transfer (in-country) of specified
items to a certain party because there is reasonable
[[Page 61975]]
cause to believe, based on specific and articulable facts, that the
entity has been involved, is involved, or poses a 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 entity. Specific notice will be given
only by, or at the direction of, the Deputy Assistant Secretary for
Export Administration. When such notice is provided orally, it will be
followed by written notice within two working days signed by the Deputy
Assistant Secretary for Export Administration or the Deputy Assistant
Secretary's designee. The specific notice will include the license
requirement, limitations on use of license exceptions, and license
application review policy with which that exporter, re-exporter, or
transferor must comply pursuant to this paragraph (c)(3). The ERC may
add such entities to the Entity List in supplement no. 4 to this part.
0
3. Supplement no. 6 to part 744 is amended by:
0
a. Revising the heading of the final column in the supplement; and
0
b. Under CHINA, PEOPLE'S REPUBLIC OF by:
0
i. Removing the entry ``Anhui Institute of Metrology;''
0
ii. Adding entries, in alphabetical order, for the following entities:
``Beijing Naura Magnetoelectric Technology Co., Ltd.;'' ``Beijing
PowerMac Company;'' ``CCIC Southern Electronic Product Testing Co.,
Ltd.;'' ``Chang Zhou Jin Tan Teng Yuan Machinery Parts Co., Ltd;''
``Chinese Academy of Geological Sciences, Institute of Mineral
Resources;'' ``Chinese Academy of Science (CAS) Institute of
Chemistry;'' ``Chongqing Optel Telecom;'' and ``Chongqing Xinyuhang
Technology Co., Ltd.;''
0
iii. Removing entry for ``Chuzhou HKC Optoelectronics Technology Co.,
Ltd.;''
0
iv. Adding entries, in alphabetical order, for the following entities:
``Dandong Nondestructive Electronics;'' ``DK Laser Company Ltd.;''
``Foshan Huaguo Optical Co., Ltd.;'' ``GRG Metrology & Test (Chongqing)
Co., Ltd.;'' ``Guangdong Dongling Carbon Tech. Co., Ltd.;'' ``Guangxi
Yuchai Machinery Co., Ltd.;'' and ``Guangzhou GRG Metrology & Test
(Beijing) Co., Ltd.;''
0
v. Removing entries for ``Hefei Anxin Reed Precision Co., Ltd.;'' and
``Hefei Institutes of Physical Science;''
0
vi. Adding an entry, in alphabetical order, for the following entity:
``Jialin Precision Optics (Shanghai) Co., Ltd.;''
0
vii. Removing the entry for ``Jiutian Intelligent Equipment Co.,
Ltd.'';
0
viii. Adding entries, in alphabetical order, for the following
entities: ``Lishui Zhengyang Electric Power Construction;'' ``Nanjing
Gova Technology Co., Ltd.;'' ``Ningbo III Lasers Technology Co.,
Ltd.;'' ``Qingdao Sci-Tech Innovation Quality Testing Co., Ltd.;'' and
``Shanghai Tech University;''
0
ix. Removing entries for ``Suzhou Gyz Electronic Technology Co., Ltd.''
and ``Suzhou Lylap Mould Technology Co., Ltd.;''
0
x. Adding entries, in alphabetical order, for the following entities:
``Suzhou Sen-Chuan Machinery Technology Co., Ltd.;'' ``Tianjin Optical
Valley Technology Co., Ltd.;'' ``University of Chinese Academy of
Sciences, School of Chemical Sciences;'' ``University of Shanghai for
Science and Technology;'' ``Vital Advanced Materials Co., Ltd.;''
``Wuhan Institute of Biological Products Co., Ltd.;'' and ``Wuhan
Juhere Photonic Tech Co., Ltd.;''
0
xi. Removing the entry ``Wuxi Biologics Co., Ltd.;''
0
xii. Adding an entry, in alphabetical order, for the following entity:
``Wuxi Hengling Technology Co., Ltd.;''
0
xii. Removing they entry for ``Wuxi Turbine Blade Co., Ltd.;'' and
0
xiv. Adding entries, in alphabetical order, for the following entities:
``Xian Zhongsheng Shengyuan Technology Co., Ltd.'' and ``Yangtze Memory
Technologies Co., Ltd.''
The revision and additions read as follows:
Supplement No. 6 to Part 744--Unverified List
------------------------------------------------------------------------
Listed person and Federal Register
Country address citation
------------------------------------------------------------------------
* * * * * * *
CHINA, PEOPLE'S
REPUBLIC OF
* * * * * * *
Beijing Naura 87 FR [INSERT FEDERAL
Magnetoelectric REGISTER PAGE NUMBER]
Technology Co., Ltd., 10/13/2022
M4 No 1 Jiuxianqiao
East Road, Chaoyang
District, Beijing
100015, China.
Beijing PowerMac 87 FR [INSERT FEDERAL
Company, B-1501, REGISTER PAGE NUMBER]
Calzhi International 10/13/2022
Building', 18
Zhongguancun East
Road, Haidian
District, Beijing,
China.
* * * * * * *
CCIC Southern 87 FR [INSERT FEDERAL
Electronic Product REGISTER PAGE NUMBER]
Testing Co., Ltd., 10/13/2022
Electronic Testing
Bldg. No 43 Shahe Rd
Xili Jiedao, Nanshan
District, Shenzhen,
China.
* * * * * * *
Chang Zhou Jin Tan Teng 87 FR [INSERT FEDERAL
Yuan Machinery Parts REGISTER PAGE NUMBER]
Co., Ltd., 116 Huafeng 10/13/2022
road, Jintan Economic
Development Zone,
Changzhou China.
* * * * * * *
Chinese Academy of 87 FR [INSERT FEDERAL
Geological Sciences, REGISTER PAGE NUMBER]
Institute of Mineral 10/13/2022
Resources,
Baiwangzhuang Main
Street No 26, Xicheng
District, Beijing
100037, China.
Chinese Academy of 87 FR [INSERT FEDERAL
Science (CAS) REGISTER PAGE NUMBER]
Institute of 10/13/2022
Chemistry, 2
Zhongguancun North 1st
Street, Haidian
District, Beijing
100190, China.
[[Page 61976]]
Chongqing Optel 87 FR [INSERT FEDERAL
Telecom, No 1 6f REGISTER PAGE NUMBER]
Building 7, No 106 10/13/2022
West Jinkai Avenue,
Yubei District,
Chongqing 401121,
China.
Chongqing Xinyuhang 87 FR [INSERT FEDERAL
Technology Co., Ltd., REGISTER PAGE NUMBER]
Shanying Workshop, 10/13/2022
liangjiang Avenue,
Longxing Town, Yubei
District, Chongqing
401135, China.
* * * * * * *
Dandong Nondestructive 87 FR [INSERT FEDERAL
Electronics, No 2 REGISTER PAGE NUMBER]
Tonghe Street Jinshan 10/13/2022
Industrial Park,
Yuanbao District
Dandong, Dandong
118000, China.
* * * * * * *
DK Laser Company Ltd., 87 FR [INSERT FEDERAL
Zhuodas Jingu REGISTER PAGE NUMBER]
Industrial Park #4, 10/13/2022
Jinlong New District,
Xiangyin, Hunan
Province, , China.
* * * * * * *
Foshan Huaguo Optical 87 FR [INSERT FEDERAL
Co., Ltd., No 3 REGISTER PAGE NUMBER]
Changhong East Road, 10/13/2022
Zhangcha Street,
Foshan City 528051,
China.
* * * * * * *
GRG Metrology & Test 87 FR [INSERT FEDERAL
(Chongqing) Co., Ltd., REGISTER PAGE NUMBER]
The 3rd floor of 10/13/2022
building A no 37
Cuitao Road, Chongqing
City, China.
Guangdong Dongling 87 FR [INSERT FEDERAL
Carbon Tech. Co., REGISTER PAGE NUMBER]
Ltd., #83 Shatong 10/13/2022
Road, Shabu County,
Dalang Town Dongguan
city, Guangdong
523770, China.
* * * * * * *
Guangxi Yuchai 87 FR [INSERT FEDERAL
Machinery Co., Ltd., 8 REGISTER PAGE NUMBER]
Tinqiao West rd., 10/13/2022
Yulin Guanxi Province
537005, China.
Guangzhou GRG Metrology 87 FR [INSERT FEDERAL
& Test (Beijing) Co., REGISTER PAGE NUMBER]
Ltd., 1st-2nd floor, 10/13/2022
5th building, No 8
courtyard, No. 2
Street of Cold Water
Economic and
Technological
Development Zone,
Beijing, China.
* * * * * * *
Jialin Precision Optics 87 FR [INSERT FEDERAL
(Shanghai) Co., Ltd., REGISTER PAGE NUMBER]
Western Section Floor 10/13/2022
1 No 1 Dongcheng Er
lu, Pujiang Town
Minhang District,
Shanghai 201112, China.
* * * * * * *
Lishui Zhengyang 87 FR [INSERT FEDERAL
Electric Power REGISTER PAGE NUMBER]
Construction, 573 10/13/2022
Nanshan Road Nanshan
Park Liandu,
Industrial Zone
Zhejiang, Lishui,
China.
* * * * * * *
Nanjing Gova Technology 87 FR [INSERT FEDERAL
Co., Ltd., No 66 Qixia REGISTER PAGE NUMBER]
Avenue, Nanjing 10/13/2022
Economic and
Technological
Development Zone,
Nanjing, Jiangsu
Province, China.
* * * * * * *
Ningbo III Lasers 87 FR [INSERT FEDERAL
Technology Co., Ltd., REGISTER PAGE NUMBER]
Phase II Binjiang 10/13/2022
Equipment Park,
Fenglin Road Beilun
District, Ningbo City
315803, China.
* * * * * * *
Qingdao Sci-Tech 87 FR [INSERT FEDERAL
Innovation Quality REGISTER PAGE NUMBER]
Testing Co., Ltd., 10/13/2022
Huaye Building,
Lanbeizhizao
Gongchang, No 1 Jinye
Road, High-Tech Zone,
Qingdao, China.
* * * * * * *
ShanghaiTech 87 FR [INSERT FEDERAL
University, 393 Middle REGISTER PAGE NUMBER]
Huaxia Rd, School of 10/13/2022
Phy Sci and Tech,
Pudong,
Shanghai201210, China.
* * * * * * *
Suzhou Sen-Chuan 87 FR [INSERT FEDERAL
Machinery Technology REGISTER PAGE NUMBER]
Co., Ltd., No 3 Yantou 10/13/2022
Road, Huayang Village,
Wangting town,
Xiangcheng
DistrictSuzhou 215155,
China.
* * * * * * *
Tianjin Optical Valley 87 FR [INSERT FEDERAL
Technology Co., Ltd., REGISTER PAGE NUMBER]
5-1 2-104 Qingda Boya 10/13/2022
industrial Park
Beichen District,
Tianjin 30400, China.
[[Page 61977]]
* * * * * * *
University of Chinese 87 FR [INSERT FEDERAL
Academy of Sciences, REGISTER PAGE NUMBER]
School of Chemical 10/13/2022
Sciences, # 19 (A)
Yuquan Road,
Shijingshan District,
Beijing 100049, China.
University of Shanghai 87 FR [INSERT FEDERAL
for Science and REGISTER PAGE NUMBER]
Technology, 516 10/13/2022
Jungong Road, Shanghai
200093, China.
Vital Advanced 87 FR [INSERT FEDERAL
Materials Co., Ltd., REGISTER PAGE NUMBER]
Zone B No 27-9 BAIJIA 10/13/2022
Industrial Park, High
Tech Development Zone,
Guangdong Province,
Qingyuan 511517, China.
* * * * * * *
Wuhan Institute of 87 FR [INSERT FEDERAL
Biological Products REGISTER PAGE NUMBER]
Co., Ltd., No 1 Golden 10/13/2022
Industrial Park Road,
Zhengdian Street,
Jiangxia District,
Wuhan City, Hubei
Province, 430207,
China.
Wuhan Juhere Photonic 87 FR [INSERT FEDERAL
Tech Co., Ltd., 2/F REGISTER PAGE NUMBER]
Building 12, Guanggu 10/13/2022
New Power, Guanggu 2nd
Rd East Lake High-Tech
Zone, Wuhan 430200,
China.
* * * * * * *
Wuxi Hengling 87 FR [INSERT FEDERAL
Technology Co., Ltd., REGISTER PAGE NUMBER]
Bldg C1 No 999 East 10/13/2022
Gaolang rd Binhu
District, Wuxi City,
Jiangsu Province,
214131, China.
* * * * * * *
Xian Zhongsheng 87 FR [INSERT FEDERAL
Shengyuan Technology REGISTER PAGE NUMBER]
Co., Ltd., 9 Gardens 10/13/2022
at 202 South Second
ring Rd, Lianju
District, Xian 710000,
China.
* * * * * * *
Yangtze Memory 87 FR [INSERT FEDERAL
Technologies Co., REGISTER PAGE NUMBER]
Ltd., No. 88 Weilai 10/13/2022
3rd RoadEast Lake High-
Tech Development Zone,
Wuhan Hubei 43000,
China.
* * * * * * *
------------------------------------------------------------------------
Thea D. Rozman Kendler,
Assistant Secretary for Export Administration.
[FR Doc. 2022-21714 Filed 10-7-22; 8:45 am]
BILLING CODE 3510-33-P
