Addition of Entities and Revision of Entries on the Entity List, 55033-55036 [2024-14635]
Download as PDF
<![CDATA[
khammond on DSKJM1Z7X2PROD with RULES
Federal Register / Vol. 89, No. 128 / Wednesday, July 3, 2024 / Rules and Regulations
B thus does not have reasonable access to
information that would allow it to determine
the small business status of the businesses for
whom it originated covered credit
transactions for calendar years 2022 and
2023. Financial Institution B chose to use the
methodology set out in comment 114(c)–5.i,
and as of October 1, 2023, Financial
Institution B began to ask all businesses for
whom it was closing covered credit
transactions if they had gross annual
revenues in the preceding fiscal year of $5
million or less. Using this information,
Financial Institution B determined that it had
originated 350 covered credit transactions for
businesses that were small as defined in
§ 1002.106. On an annualized basis,
Financial Institution B originated 1,400
covered credit transactions for small
businesses (350 originations * 4 = 1,400
originations per year). Applying this
estimated figure of 1,400 originations to both
calendar years 2022 and 2023, Financial
Institution B is in Tier 2 and has a
compliance date of January 16, 2026.
iii. Prior to April 1, 2023, Financial
Institution C did not collect gross annual
revenue or other information that would
allow it to determine the small business
status of the businesses for whom it
originated covered credit transactions in
calendar years 2022 and 2023. Financial
Institution C chose its own methodology
pursuant to comment 114(c)–5.iii, basing it in
part on the methodology specified in
comment 114(c)–5.i. Starting on April 1,
2023, Financial Institution C began to ask all
business applicants for covered credit
transactions if they had gross annual revenue
in their preceding fiscal year of $5 million or
less. Using this information, Financial
Institution C determined that it had
originated 100 covered credit transactions for
businesses that were small as defined in
§ 1002.106. On an annualized basis,
Financial Institution C originated
approximately 133 covered credit
transactions for small businesses ((100
originations * 365 days)/275 days = 132.73
originations per year). Applying this estimate
of 133 originations to both calendar years
2022 and 2023, Financial Institution C is in
Tier 3 and has a compliance date of October
18, 2026.
iv. Financial Institution D did not collect
gross annual revenue or other information
that would allow it to determine the small
business status of the businesses for whom it
originated covered credit transactions in
calendar years 2022 and 2023. Financial
Institution D determined that it had
originated 3,000 total covered credit
transactions for businesses in each of 2022
and 2023. Applying the methodology
specified in comment 114(c)–5.ii, Financial
Institution D assumed that all 3,000 covered
credit transactions originated in each of 2022
and 2023 were to small businesses. On that
basis, Financial Institution D is in Tier 1 and
has a compliance date of July 18, 2025.
v. Financial Institution E did not collect
gross annual revenue or other information
that would allow it to determine the small
business status of the businesses for whom it
originated covered credit transactions in
calendar years 2022 and 2023. Financial
VerDate Sep<11>2014
18:48 Jul 02, 2024
Jkt 262001
Institution E determined that it had
originated 700 total covered credit
transactions for businesses in each of 2022
and 2023. Applying the methodology
specified in comment 114(c)–5.ii, Financial
Institution E assumed that all such
transactions in each of 2022 and 2023 were
originated for small businesses. On that basis,
Financial Institution E is in Tier 2 and has
a compliance date of January 16, 2026.
vi. Financial Institution F does not have
readily accessible gross annual revenue or
other information that would allow it to
determine the small business status of the
businesses for whom it originated covered
credit transactions in calendar years 2022
and 2023. Financial Institution F determined
that it had originated 80 total covered credit
transactions for businesses in 2022 and 150
total covered credit transactions for
businesses in 2023. Applying the
methodology set out in comment 114(c)–5.ii,
Financial Institution F assumed that all such
transactions originated in 2022 and 2023
were originated for small businesses. On that
basis, Financial Institution E is not in Tier 1,
Tier 2 or Tier 3, and is subject to the
compliance date provision specified in
§ 1002.114(b)(4).
vii. Financial Institution G does not have
readily accessible gross annual revenue or
other information that would allow it to
determine the small business status of the
businesses for whom it originated covered
credit transactions in calendar years 2022,
2023, or 2024. Financial Institution G chose
to use the methodology set out in comment
114(c)–5.i, and as of October 1, 2024,
Financial Institution G began to ask all
businesses for whom it was closing covered
credit transactions if they had gross annual
revenue in the preceding fiscal year of $5
million or less. Using this information,
Financial Institution G determined that it had
originated 700 covered credit transactions
during that period for businesses that were
small as defined in § 1002.106. On an
annualized basis, Financial Institution G
originated 2,800 covered credit transactions
for small businesses (700 originations * 4 =
2,800 originations per year). Applying this
estimated figure of 2,800 originations to both
calendar years 2023 and 2024, Financial
Institution G is in Tier 1 and has a
compliance date of July 18, 2025.
*
*
*
*
*
Rohit Chopra,
Director, Consumer Financial Protection
Bureau.
[FR Doc. 2024–14396 Filed 7–2–24; 8:45 am]
BILLING CODE 4810–AM–P
PO 00000
Frm 00013
Fmt 4700
Sfmt 4700
55033
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Part 744
[Docket No. 240621–0171]
RIN 0694–AJ66
Addition of Entities and Revision of
Entries on the Entity List
Bureau of Industry and
Security, Department of Commerce.
ACTION: Final rule.
AGENCY:
In this rule, the Bureau of
Industry and Security (BIS) amends the
Export Administration Regulations
(EAR) by adding six entries to the Entity
List, under the destinations of the
People’s Republic of China (China) (2),
South Africa (1), the United Arab
Emirates (UAE) (2), and the United
Kingdom (1). These entities have been
determined by the U.S. Government to
be acting contrary to the national
security or foreign policy interests of the
United States. This rule also modifies
two existing entities on the Entity List,
one under the destination of China and
one under the destination of Russia.
DATES: This rule is effective July 3,
2024.
SUMMARY:
FOR FURTHER INFORMATION CONTACT:
Chair, End-User Review Committee,
Office of the Assistant Secretary for
Export Administration, Bureau of
Industry and Security, Department of
Commerce, Phone: (202) 482–5991,
Email: ERC@bis.doc.gov.
SUPPLEMENTARY INFORMATION:
Background
The Entity List
The Entity List (supplement no. 4 to
part 744 of the EAR (15 CFR parts 730
through 774)) identifies entities for
which there is reasonable cause to
believe, based on specific and
articulable facts, that the entities have
been involved, are involved, or pose a
significant risk of being or becoming
involved in activities contrary to the
national security or foreign policy
interests of the United States, pursuant
to § 744.11(b). The EAR impose
additional license requirements on, and
limit the availability of, most license
exceptions for exports, reexports, and
transfers (in-country) when a listed
entity is a party to the transaction. The
license review policy for each listed
entity is identified in the ‘‘License
Review Policy’’ column on the Entity
List, and the impact on the availability
of license exceptions is described in the
relevant Federal Register document that
E:\FR\FM\03JYR1.SGM
03JYR1
55034
Federal Register / Vol. 89, No. 128 / Wednesday, July 3, 2024 / Rules and Regulations
added the entity to the Entity List. BIS
places entities on the Entity List
pursuant to parts 744 (Control Policy:
End-User and End-Use Based) and 746
(Embargoes and Other Special Controls)
of the EAR.
The End-User Review Committee
(ERC), composed of representatives of
the Departments of Commerce (Chair),
State, Defense, Energy and, where
appropriate, the Treasury, makes all
decisions regarding additions to,
removals from, or other modifications to
the Entity List. The ERC makes all
decisions to add an entry to the Entity
List by majority vote and makes all
decisions to remove or modify an entry
by unanimous vote.
Entity List Decisions
khammond on DSKJM1Z7X2PROD with RULES
Additions to the Entity List
The ERC determined to add Global
Training Solutions Limited and
Smartech Future Limited, both under
the destination of China, Grace Air (Pty)
Ltd. under the destination of South
Africa, and Livingston Aerospace Ltd.,
under the destination of the United
Kingdom, to the Entity List. These
entities are listed because of their links
to the Test Flying Academy of South
Africa (TFASA) and the training of
China’s military forces using Western
and North Atlantic Treaty Organization
(NATO) sources. TFASA was added to
the Entity List on June 12, 2023 (88 FR
38739, June 14, 2023). This activity is
contrary to the national security and
foreign policy interests of the United
States under § 744.11 of the EAR.
The ERC determined to add two
entities, Mega Fast Cargo LLC, and Mega
Technique General Trading, both under
the destination of the UAE, to the Entity
List. These additions are being made
because these entities repeatedly
engaged in dilatory or evasive conduct,
including the provision of false,
misleading, or incomplete information,
during end-use checks. In addition,
Mega Fast Cargo LLC has engaged in
shipments of U.S.-origin commodities to
Russia since Russia’s further invasion of
Ukraine in February 2022. This activity
is contrary to U.S. national security and
foreign policy interests under § 744.11
of the EAR.
For these six entities, BIS imposes a
license requirement for all items subject
to the EAR and will review license
applications under a presumption of
denial. For the reasons described above,
this final rule adds the following six
entities, including aliases where
appropriate, to the Entity List:
VerDate Sep<11>2014
18:48 Jul 02, 2024
Jkt 262001
China
• Global Training Solutions Limited;
and
• Smartech Future Limited.
South Africa
• Grace Air (Pty) Ltd.
United Arab Emirates
• Mega Fast Cargo LLC; and
• Mega Technique General Trading.
United Kingdom
• Livingston Aerospace Ltd.
Modifications to the Entity List
This final rule implements the
decision of the ERC to modify two
existing entries on the Entity List.
Specifically, the ERC determined to add
three aliases to the entity Tenco
Technology Company Ltd., under the
destination of China, for a total of seven
aliases. In addition, the ERC determined
to revise the entry for Systems of
Biological Synthesis LLC, under the
destination of Russia, by adding one
address for a total of two addresses.
Savings Clause
For the changes being made in this
final rule, shipments of items removed
from eligibility for a License Exception
or export, reexport, or transfer (incountry) without a license (NLR) as a
result of this regulatory action that were
en route aboard a carrier to a port of
export, reexport, or transfer (in-country),
on July 3, 2024, pursuant to actual
orders for export, reexport, or transfer
(in-country) to or within a foreign
destination, may proceed to that
destination under the previous
eligibility for a License Exception or
export, reexport, or transfer (in-country)
without a license (NLR) before August 2,
2024. Any such items not actually
exported, reexported or transferred (incountry) before midnight, on August 2,
2024, require a license in accordance
with this final rule.
Export Control Reform Act of 2018
On August 13, 2018, the President
signed into law the John S. McCain
National Defense Authorization Act for
Fiscal Year 2019, which included the
Export Control Reform Act of 2018
(ECRA) (50 U.S.C. 4801–4852). ECRA
provides the legal basis for BIS’s
principal authorities and serves as the
authority under which BIS issues this
rule.
Rulemaking Requirements
1. This rule has been determined to be
not significant for purposes of Executive
Order 12866.
PO 00000
Frm 00014
Fmt 4700
Sfmt 4700
2. Notwithstanding any other
provision of law, no person is required
to respond to or be subject to a penalty
for failure to comply with a collection
of information, subject to the
requirements of the Paperwork
Reduction Act of 1995 (44 U.S.C. 3501
et seq.) (PRA), unless that collection of
information displays a currently valid
Office of Management and Budget
(OMB) Control Number. This regulation
involves an information collection
approved by OMB under control
number 0694–0088, Simplified Network
Application Processing System. BIS
does not anticipate a change to the
burden hours associated with this
collection as a result of this rule.
Information regarding the collection,
including all supporting materials, can
be accessed at https://www.reginfo.gov/
public/do/PRAMain.
3. This rule does not contain policies
with federalism implications as that
term is defined in Executive Order
13132.
4. Pursuant to section 1762 of the
Export Control Reform Act of 2018, this
action is exempt from the
Administrative Procedure Act (5 U.S.C.
553) requirements for notice of
proposed rulemaking, opportunity for
public participation, and delay in
effective date.
5. Because a notice of proposed
rulemaking and an opportunity for
public comment are not required to be
given for this rule by 5 U.S.C. 553, or
by any other law, the analytical
requirements of the Regulatory
Flexibility Act, 5 U.S.C. 601, et seq., are
not applicable. Accordingly, no
regulatory flexibility analysis is
required, and none has been prepared.
List of Subjects in 15 CFR Part 744
Administrative practice and
procedure, Exports, Reporting and
recordkeeping requirements, Terrorism.
Accordingly, part 744 of the Export
Administration Regulations (15 CFR
parts 730 through 774) is amended as
follows:
PART 744—CONTROL POLICY: ENDUSER AND END-USE BASED
1. The authority citation for part 744
continues to read as follows:
■
Authority: 50 U.S.C. 4801–4852; 50 U.S.C.
4601 et seq.; 50 U.S.C. 1701 et seq.; 22 U.S.C.
3201 et seq.; 42 U.S.C. 2139a; 22 U.S.C. 7201
et seq.; 22 U.S.C. 7210; E.O. 12058, 43 FR
20947, 3 CFR, 1978 Comp., p. 179; E.O.
12851, 58 FR 33181, 3 CFR, 1993 Comp., p.
608; E.O. 12938, 59 FR 59099, 3 CFR, 1994
Comp., p. 950; E.O. 13026, 61 FR 58767, 3
CFR, 1996 Comp., p. 228; E.O. 13099, 63 FR
45167, 3 CFR, 1998 Comp., p. 208; E.O.
13222, 66 FR 44025, 3 CFR, 2001 Comp., p.
E:\FR\FM\03JYR1.SGM
03JYR1
55035
Federal Register / Vol. 89, No. 128 / Wednesday, July 3, 2024 / Rules and Regulations
783; E.O. 13224, 66 FR 49079, 3 CFR, 2001
Comp., p. 786; Notice of September 7, 2023,
88 FR 62439 (September 11, 2023); Notice of
November 1, 2023, 88 FR 75475 (November
3, 2023).
2. Supplement no. 4 is amended by:
a. Under CHINA, PEOPLE’S
REPUBLIC OF:
■ i. Adding, in alphabetical order,
entries for ‘‘Global Training Solutions
Limited’’ and ‘‘Smartech Future
Limited;’’ and
■
■
Country
ii. Revising the entry for ‘‘Tenco
Technology Company Ltd.;’’
■ b. Under RUSSIA, revising the entry
for ‘‘Systems of Biological Synthesis
LLC;’’
■ c. Under SOUTH AFRICA, adding, in
alphabetical order, an entry for ‘‘Grace
Air (Pty) Ltd;’’
■ d. Under UNITED ARAB EMIRATES,
adding, in alphabetical order, entries for
■
License
requirement
Entity
*
*
CHINA, PEOPLE’S
REPUBLIC OF.
*
*
*
*
Global Training Solutions Limited, 8 Ng Fong
Street, 11/F Lee Ka Industrial Building, Room
32, San Po Kong, Kowloon, Hong Kong.
*
*
Smartech Future Limited, a.k.a., the following
one alias:
—Balloons SMT.
29 Luk Hop Street, Wang Fai Industrial Building,
11/F, Room 8, Hong Kong; and 253–261 Hennessy Road, Easey Commercial Building,
Room 1502, Wan Chai, Hong Kong.
*
*
Tenco Technology Company Ltd., a.k.a., the following seven aliases:
—Redd Forest Technology Company Limited;
—Shenzhen Shengfaweiye Electronic Co., Ltd.;
—Shenzhen Tenco Technology Co., Ltd.;
—Tenco International Co., Ltd.;
—Shenzhen Qianhai Yikeshu Industrial Company
Limited;
—Shenzhen Yikeshu Shiye You Xia; and
—Shenzhen Yikeshu Shiye You Xian.
Jiahe Huaqiang Building, Shennan Middle Road,
Room 2709, Block A, Futian District,
Shenzhen, Guangdong, 518007, China; and
Jiahe Building, Shennan Mid Road, Room
2709, Block A, Futian District, Shenzhen,
518000, China; and 56 Hoi Yuen Road, Kwun
Kowloon, Room 311 3F Genplas Industrial
Building, Hong Kong; and 8 Lam Lok Street,
Room 15, 6F Corporation Square, Kowloon
Bay, Hong Kong; and Longhua Street, Room
801, Number 15, Building 14, Xiayousong Village, Longhua District, Shenzhen, 518000,
China and No.1 Qianhaiwan 1 Road, Room
201 Block A, Shenzhen, China.
*
*
*
khammond on DSKJM1Z7X2PROD with RULES
RUSSIA .................
*
*
SOUTH AFRICA ...
VerDate Sep<11>2014
*
18:48 Jul 02, 2024
Jkt 262001
PO 00000
Frm 00015
*
*
*
*
*
*
*
*
Federal Register citation
*
*
*
For all items subject to the EAR.
(See § 744.11 of the EAR).
Presumption of denial.
89 FR [INSERT FR PAGE NUMBER] 7/3/2024.
*
*
For all items subject to the EAR.
(See § 744.11 of the EAR).
*
Presumption of denial.
*
89 FR [INSERT FR PAGE NUMBER] 7/3/2024.
*
*
For all items subject to the EAR.
(See § 744.11 of the EAR).
*
Presumption of denial.
*
84 FR 21236, 5/14/19. 85 FR
83769, 12/23/20. 87 FR
77508, 12/19/22. 89 FR [INSERT FR PAGE NUMBER] 7/
3/2024.
*
*
*
*
*
*
*
87 FR 34157, 6/6/22. 89 FR [INSERT FR PAGE NUMBER] 7/
3/2024.
*
*
Sfmt 4700
*
*
*
Policy of denial ........
*
*
*
For all items subject to the EAR.
(See § 744.11 of the EAR).
Fmt 4700
*
*
*
*
For all items subject to the EAR.
(See § 744.11 of the EAR).
*
*
*
Grace Air (Pty) Ltd, Hangar 1, Anderson Street,
Oudtshoorn Air Field, Western Cape,
Oudtshoorn, 6620, South Africa and 477
Witherite Road, Pretoria, South Africa.
Supplement No. 4 to Part 744—Entity
List
License
review policy
*
*
*
*
Systems of Biological Synthesis LLC., a.k.a., the
following three aliases:
—Sistemy Biologicheskogo Sinteza;
—OOO SBS; and
—SBS LLC.
Akademika Koroleva Street, Building 13/1, Office
35–39, Moscow, 129515, Russia and
Akademika Koroleva Street, Building 13/1,
Floor 2, Offices 60–61, Moscow, 129515, Russia.
*
*
‘‘Mega Fast Cargo LLC’’ and ‘‘Mega
Technique General Trading;’’ and
■ e. Under UNITED KINGDOM, adding,
in alphabetical order, an entry for
‘‘Livingston Aerospace Ltd.’’
The revision and additions read as
follows:
*
*
Presumption of denial.
E:\FR\FM\03JYR1.SGM
03JYR1
*
*
*
89 FR [INSERT FR PAGE NUMBER] 7/3/2024.
55036
Federal Register / Vol. 89, No. 128 / Wednesday, July 3, 2024 / Rules and Regulations
Country
License
requirement
Entity
UNITED ARAB
EMIRATES.
*
*
*
*
*
*
*
*
*
*
*
*
UNITED KINGDOM.
*
*
For all items subject to the EAR.
(See § 744.11 of the EAR).
Presumption of denial.
89 FR [INSERT FR PAGE NUMBER] 7/3/2024.
*
BILLING CODE 3510–33–P
DEPARTMENT OF COMMERCE
*
For all items subject to the EAR.
(See § 744.11 of the EAR).
*
[Docket No. 240626–0176]
SUPPLEMENTARY INFORMATION:
RIN 0694–AJ70
Background
The Unverified List; Additions and
Removals
Unverified 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 13 persons to the Unverified List
(UVL). The 13 persons being added are
added under the following destinations:
China, Peoples’ Republic of (China) (8),
Cyprus (1), Kyrgyzstan (1), Türkiye (2),
and the United Arab Emirates (UAE) (1).
BIS is also amending the EAR by
removing eight persons from the UVL.
Of the eight persons being removed, one
is under the destination of the UAE, one
is under the destination of Russia, and
six are under the destination of China.
This final rule also removes the country
SUMMARY:
Jkt 262001
The UVL, found 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 § 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 prelicense check (PLC) or a post-shipment
verification (PSV), cannot be completed
satisfactorily for reasons outside the
U.S. Government’s control.
PO 00000
Frm 00016
Fmt 4700
Sfmt 4700
*
*
*
Presumption of denial.
*
Deniz Muslu Acting Director, Office of
Enforcement Analysis, Phone: (202)
482–4255, Email: UVLRequest@
bis.doc.gov
15 CFR Part 744
18:48 Jul 02, 2024
*
FOR FURTHER INFORMATION CONTACT:
Bureau of Industry and Security
*
*
name Russia from the UVL. Lastly, this
final rule replaces the country name
Turkey with Türkiye in the UVL. This
is a conforming change to the U.S. State
Department’s recognition on January 9,
2023, of Türkiye’s official name.
DATES: This rule is effective: July 3,
2024.
*
[FR Doc. 2024–14635 Filed 7–2–24; 8:45 am]
VerDate Sep<11>2014
*
*
*
Matthew S. Borman,
Principal Deputy Assistant Secretary for
Export Administration.
khammond on DSKJM1Z7X2PROD with RULES
89 FR [INSERT FR PAGE NUMBER] 7/3/2024.
*
*
*
Presumption of denial.
*
Livingston Aerospace Ltd., Dock Cottage, Bullo
Pill, Gloucestershire, GL14 1ED, United Kingdom and 23 Cleveland Road, Lytham, Lytham
St Annes, Lancashire, FY8 5JH, United Kingdom.
*
For all items subject to the EAR.
(See § 744.11 of the EAR).
*
*
*
Federal Register citation
*
Mega Fast Cargo LLC, #405, Floor 4, Nasseriya
Building, 1st Industrial Area, Al Qusais, Dubai,
United Arab Emirates; and Riqaa Al Buteen
Plaza Building, Dubai, United Arab Emirates;
and Al Maktoum Rd., Dubai, United Arab Emirates and P.O Box: 238930, Bin Al Fahed Building, No. 3 Room 203, 2nd Floor, Industrial
Area 1, Alqusais, Dubai, United Arab Emirates.
Mega Technique General Trading, P.O. Box
60049, Al Qusais, Nasseriya Building, Dubai,
United Arab Emirates.
*
*
*
License
review policy
*
*
89 FR [INSERT FR PAGE NUMBER] 7/3/2024.
*
There are a number of reasons why
end-use 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 (e.g., 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 a host government that
fails to schedule and facilitate the
completion of an end-use check (e.g., a
host government agencies’ lack of
response 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 enduse checks raises concerns about the
suitability of such persons as
participants in future exports, reexports,
or transfers (in-country) of items subject
to the EAR; the inability to confirm a
foreign person’s bona fides also
indicates a risk that items subject to the
EAR may be diverted to prohibited end
uses and/or end users. Under such
E:\FR\FM\03JYR1.SGM
03JYR1
]]>Agencies
[Federal Register Volume 89, Number 128 (Wednesday, July 3, 2024)]
[Rules and Regulations]
[Pages 55033-55036]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-14635]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Part 744
[Docket No. 240621-0171]
RIN 0694-AJ66
Addition of Entities and Revision of Entries on the Entity List
AGENCY: Bureau of Industry and Security, Department of Commerce.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: In this rule, the Bureau of Industry and Security (BIS) amends
the Export Administration Regulations (EAR) by adding six entries to
the Entity List, under the destinations of the People's Republic of
China (China) (2), South Africa (1), the United Arab Emirates (UAE)
(2), and the United Kingdom (1). These entities have been determined by
the U.S. Government to be acting contrary to the national security or
foreign policy interests of the United States. This rule also modifies
two existing entities on the Entity List, one under the destination of
China and one under the destination of Russia.
DATES: This rule is effective July 3, 2024.
FOR FURTHER INFORMATION CONTACT: Chair, End-User Review Committee,
Office of the Assistant Secretary for Export Administration, Bureau of
Industry and Security, Department of Commerce, Phone: (202) 482-5991,
Email: [email protected].
SUPPLEMENTARY INFORMATION:
Background
The Entity List
The Entity List (supplement no. 4 to part 744 of the EAR (15 CFR
parts 730 through 774)) identifies entities for which there is
reasonable cause to believe, based on specific and articulable facts,
that the entities have been involved, are involved, or pose a
significant risk of being or becoming involved in activities contrary
to the national security or foreign policy interests of the United
States, pursuant to Sec. 744.11(b). The EAR impose additional license
requirements on, and limit the availability of, most license exceptions
for exports, reexports, and transfers (in-country) when a listed entity
is a party to the transaction. The license review policy for each
listed entity is identified in the ``License Review Policy'' column on
the Entity List, and the impact on the availability of license
exceptions is described in the relevant Federal Register document that
[[Page 55034]]
added the entity to the Entity List. BIS places entities on the Entity
List pursuant to parts 744 (Control Policy: End-User and End-Use Based)
and 746 (Embargoes and Other Special Controls) of the EAR.
The End-User Review Committee (ERC), composed of representatives of
the Departments of Commerce (Chair), State, Defense, Energy and, where
appropriate, the Treasury, makes all decisions regarding additions to,
removals from, or other modifications to the Entity List. The ERC makes
all decisions to add an entry to the Entity List by majority vote and
makes all decisions to remove or modify an entry by unanimous vote.
Entity List Decisions
Additions to the Entity List
The ERC determined to add Global Training Solutions Limited and
Smartech Future Limited, both under the destination of China, Grace Air
(Pty) Ltd. under the destination of South Africa, and Livingston
Aerospace Ltd., under the destination of the United Kingdom, to the
Entity List. These entities are listed because of their links to the
Test Flying Academy of South Africa (TFASA) and the training of China's
military forces using Western and North Atlantic Treaty Organization
(NATO) sources. TFASA was added to the Entity List on June 12, 2023 (88
FR 38739, June 14, 2023). This activity is contrary to the national
security and foreign policy interests of the United States under Sec.
744.11 of the EAR.
The ERC determined to add two entities, Mega Fast Cargo LLC, and
Mega Technique General Trading, both under the destination of the UAE,
to the Entity List. These additions are being made because these
entities repeatedly engaged in dilatory or evasive conduct, including
the provision of false, misleading, or incomplete information, during
end-use checks. In addition, Mega Fast Cargo LLC has engaged in
shipments of U.S.-origin commodities to Russia since Russia's further
invasion of Ukraine in February 2022. This activity is contrary to U.S.
national security and foreign policy interests under Sec. 744.11 of
the EAR.
For these six entities, BIS imposes a license requirement for all
items subject to the EAR and will review license applications under a
presumption of denial. For the reasons described above, this final rule
adds the following six entities, including aliases where appropriate,
to the Entity List:
China
Global Training Solutions Limited; and
Smartech Future Limited.
South Africa
Grace Air (Pty) Ltd.
United Arab Emirates
Mega Fast Cargo LLC; and
Mega Technique General Trading.
United Kingdom
Livingston Aerospace Ltd.
Modifications to the Entity List
This final rule implements the decision of the ERC to modify two
existing entries on the Entity List. Specifically, the ERC determined
to add three aliases to the entity Tenco Technology Company Ltd., under
the destination of China, for a total of seven aliases. In addition,
the ERC determined to revise the entry for Systems of Biological
Synthesis LLC, under the destination of Russia, by adding one address
for a total of two addresses.
Savings Clause
For the changes being made in this final rule, shipments of items
removed from eligibility for a License Exception or export, reexport,
or transfer (in-country) without a license (NLR) as a result of this
regulatory action that were en route aboard a carrier to a port of
export, reexport, or transfer (in-country), on July 3, 2024, pursuant
to actual orders for export, reexport, or transfer (in-country) to or
within a foreign destination, may proceed to that destination under the
previous eligibility for a License Exception or export, reexport, or
transfer (in-country) without a license (NLR) before August 2, 2024.
Any such items not actually exported, reexported or transferred (in-
country) before midnight, on August 2, 2024, require a license in
accordance with this final rule.
Export Control Reform Act of 2018
On August 13, 2018, the President signed into law the John S.
McCain National Defense Authorization Act for Fiscal Year 2019, which
included the Export Control Reform Act of 2018 (ECRA) (50 U.S.C. 4801-
4852). ECRA provides the legal basis for BIS's principal authorities
and serves as the authority under which BIS issues this rule.
Rulemaking Requirements
1. This rule has been determined to be not significant for purposes
of Executive Order 12866.
2. Notwithstanding any other provision of law, no person is
required to respond to or be subject to a penalty for failure to comply
with a collection of information, subject to the requirements of the
Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (PRA), unless
that collection of information displays a currently valid Office of
Management and Budget (OMB) Control Number. This regulation involves an
information collection approved by OMB under control number 0694-0088,
Simplified Network Application Processing System. BIS does not
anticipate a change to the burden hours associated with this collection
as a result of this rule. Information regarding the collection,
including all supporting materials, can be accessed at https://www.reginfo.gov/public/do/PRAMain.
3. This rule does not contain policies with federalism implications
as that term is defined in Executive Order 13132.
4. Pursuant to section 1762 of the Export Control Reform Act of
2018, this action is exempt from the Administrative Procedure Act (5
U.S.C. 553) requirements for notice of proposed rulemaking, opportunity
for public participation, and delay in effective date.
5. Because a notice of proposed rulemaking and an opportunity for
public comment are not required to be given for this rule by 5 U.S.C.
553, or by any other law, the analytical requirements of the Regulatory
Flexibility Act, 5 U.S.C. 601, et seq., are not applicable.
Accordingly, no regulatory flexibility analysis is required, and none
has been prepared.
List of Subjects in 15 CFR Part 744
Administrative practice and procedure, Exports, Reporting and
recordkeeping requirements, Terrorism.
Accordingly, part 744 of the Export Administration Regulations (15
CFR parts 730 through 774) is amended as follows:
PART 744--CONTROL POLICY: END-USER AND END-USE BASED
0
1. The authority citation for part 744 continues to read as follows:
Authority: 50 U.S.C. 4801-4852; 50 U.S.C. 4601 et seq.; 50
U.S.C. 1701 et seq.; 22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a; 22
U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O. 12058, 43 FR 20947, 3 CFR,
1978 Comp., p. 179; E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p.
608; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 13026,
61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13099, 63 FR 45167, 3
CFR, 1998 Comp., p. 208; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp.,
p.
[[Page 55035]]
783; E.O. 13224, 66 FR 49079, 3 CFR, 2001 Comp., p. 786; Notice of
September 7, 2023, 88 FR 62439 (September 11, 2023); Notice of
November 1, 2023, 88 FR 75475 (November 3, 2023).
0
2. Supplement no. 4 is amended by:
0
a. Under CHINA, PEOPLE'S REPUBLIC OF:
0
i. Adding, in alphabetical order, entries for ``Global Training
Solutions Limited'' and ``Smartech Future Limited;'' and
0
ii. Revising the entry for ``Tenco Technology Company Ltd.;''
0
b. Under RUSSIA, revising the entry for ``Systems of Biological
Synthesis LLC;''
0
c. Under SOUTH AFRICA, adding, in alphabetical order, an entry for
``Grace Air (Pty) Ltd;''
0
d. Under UNITED ARAB EMIRATES, adding, in alphabetical order, entries
for ``Mega Fast Cargo LLC'' and ``Mega Technique General Trading;'' and
0
e. Under UNITED KINGDOM, adding, in alphabetical order, an entry for
``Livingston Aerospace Ltd.''
The revision and additions read as follows:
Supplement No. 4 to Part 744--Entity List
* * * * *
----------------------------------------------------------------------------------------------------------------
License Federal Register
Country Entity requirement License review policy citation
----------------------------------------------------------------------------------------------------------------
* * * * * * *
----------------------------------------------------------------------------------------------------------------
CHINA, PEOPLE'S * * * * * *
REPUBLIC OF.
Global Training Solutions For all items Presumption of denial.. 89 FR [INSERT FR
Limited, 8 Ng Fong Street, subject to the PAGE NUMBER] 7/
11/F Lee Ka Industrial EAR. (See Sec. 3/2024.
Building, Room 32, San Po 744.11 of the
Kong, Kowloon, Hong Kong. EAR).
* * * * * *
Smartech Future Limited, For all items Presumption of denial.. 89 FR [INSERT FR
a.k.a., the following one subject to the PAGE NUMBER] 7/
alias: EAR. (See Sec. 3/2024.
--Balloons SMT. 744.11 of the
29 Luk Hop Street, Wang Fai EAR).
Industrial Building, 11/F,
Room 8, Hong Kong; and 253-
261 Hennessy Road, Easey
Commercial Building, Room
1502, Wan Chai, Hong Kong.
* * * * * *
Tenco Technology Company For all items Presumption of denial.. 84 FR 21236, 5/
Ltd., a.k.a., the subject to the 14/19. 85 FR
following seven aliases: EAR. (See Sec. 83769, 12/23/
--Redd Forest Technology 744.11 of the 20. 87 FR
Company Limited; EAR). 77508, 12/19/
--Shenzhen Shengfaweiye 22. 89 FR
Electronic Co., Ltd.; [INSERT FR PAGE
--Shenzhen Tenco Technology NUMBER] 7/3/
Co., Ltd.; 2024.
--Tenco International Co.,
Ltd.;
--Shenzhen Qianhai Yikeshu
Industrial Company
Limited;
--Shenzhen Yikeshu Shiye
You Xia; and
--Shenzhen Yikeshu Shiye
You Xian.
Jiahe Huaqiang Building,
Shennan Middle Road, Room
2709, Block A, Futian
District, Shenzhen,
Guangdong, 518007, China;
and Jiahe Building,
Shennan Mid Road, Room
2709, Block A, Futian
District, Shenzhen,
518000, China; and 56 Hoi
Yuen Road, Kwun Kowloon,
Room 311 3F Genplas
Industrial Building, Hong
Kong; and 8 Lam Lok
Street, Room 15, 6F
Corporation Square,
Kowloon Bay, Hong Kong;
and Longhua Street, Room
801, Number 15, Building
14, Xiayousong Village,
Longhua District,
Shenzhen, 518000, China
and No.1 Qianhaiwan 1
Road, Room 201 Block A,
Shenzhen, China.
* * * * * *
----------------------------------------------------------------------------------------------------------------
* * * * * * *
----------------------------------------------------------------------------------------------------------------
RUSSIA................ * * * * * *
Systems of Biological For all items Policy of denial....... 87 FR 34157, 6/6/
Synthesis LLC., a.k.a., subject to the 22. 89 FR
the following three EAR. (See Sec. [INSERT FR PAGE
aliases: 744.11 of the NUMBER] 7/3/
--Sistemy Biologicheskogo EAR). 2024.
Sinteza;
--OOO SBS; and
--SBS LLC.
Akademika Koroleva Street,
Building 13/1, Office 35-
39, Moscow, 129515, Russia
and Akademika Koroleva
Street, Building 13/1,
Floor 2, Offices 60-61,
Moscow, 129515, Russia.
* * * * * *
----------------------------------------------------------------------------------------------------------------
* * * * * * *
----------------------------------------------------------------------------------------------------------------
SOUTH AFRICA.......... * * * * * *
Grace Air (Pty) Ltd, Hangar For all items Presumption of denial.. 89 FR [INSERT FR
1, Anderson Street, subject to the PAGE NUMBER] 7/
Oudtshoorn Air Field, EAR. (See Sec. 3/2024.
Western Cape, Oudtshoorn, 744.11 of the
6620, South Africa and 477 EAR).
Witherite Road, Pretoria,
South Africa.
[[Page 55036]]
* * * * * *
----------------------------------------------------------------------------------------------------------------
UNITED ARAB EMIRATES.. * * * * * *
Mega Fast Cargo LLC, #405, For all items Presumption of denial.. 89 FR [INSERT FR
Floor 4, Nasseriya subject to the PAGE NUMBER] 7/
Building, 1st Industrial EAR. (See Sec. 3/2024.
Area, Al Qusais, Dubai, 744.11 of the
United Arab Emirates; and EAR).
Riqaa Al Buteen Plaza
Building, Dubai, United
Arab Emirates; and Al
Maktoum Rd., Dubai, United
Arab Emirates and P.O Box:
238930, Bin Al Fahed
Building, No. 3 Room 203,
2nd Floor, Industrial Area
1, Alqusais, Dubai, United
Arab Emirates.
Mega Technique General For all items Presumption of denial.. 89 FR [INSERT FR
Trading, P.O. Box 60049, subject to the PAGE NUMBER] 7/
Al Qusais, Nasseriya EAR. (See Sec. 3/2024.
Building, Dubai, United 744.11 of the
Arab Emirates. EAR).
* * * * * *
----------------------------------------------------------------------------------------------------------------
* * * * * * *
----------------------------------------------------------------------------------------------------------------
UNITED KINGDOM........ * * * * * *
Livingston Aerospace Ltd., For all items Presumption of denial.. 89 FR [INSERT FR
Dock Cottage, Bullo Pill, subject to the PAGE NUMBER] 7/
Gloucestershire, GL14 1ED, EAR. (See Sec. 3/2024.
United Kingdom and 23 744.11 of the
Cleveland Road, Lytham, EAR).
Lytham St Annes,
Lancashire, FY8 5JH,
United Kingdom.
----------------------------------------------------------------------------------------------------------------
* * * * * * *
----------------------------------------------------------------------------------------------------------------
* * * * *
Matthew S. Borman,
Principal Deputy Assistant Secretary for Export Administration.
[FR Doc. 2024-14635 Filed 7-2-24; 8:45 am]
BILLING CODE 3510-33-P
