[Federal Register Volume 76, Number 142 (Monday, July 25, 2011)]
[Rules and Regulations]
[Pages 44259-44262]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-18718]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Part 744
[Docket No. 110502273-1368-01]
RIN 0694-AF21
Addition of Certain Persons on the Entity List: Addition of
Persons Acting Contrary to the National Security or Foreign Policy
Interests of the United States
AGENCY: Bureau of Industry and Security, Commerce.
ACTION: Final rule.
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SUMMARY: This rule amends the Export Administration Regulations (EAR)
by adding six persons to the Entity List (Supplement No. 4 to Part 744)
on the basis of section 744.11 of the EAR. The persons who are added to
the Entity List have been determined by the U.S. Government to be
acting contrary to the national security or foreign policy interests of
the United States. These persons will be listed under the following two
destinations on the Entity List: Hong Kong and Lebanon.
The Entity List provides notice to the public that certain exports,
reexports, and transfers (in-country) to parties identified on the
Entity List require a license from the Bureau of Industry and Security
(BIS) and that availability of license exceptions in such transactions
is limited.
DATES: Effective Date: This rule is effective July 25, 2011.
FOR FURTHER INFORMATION CONTACT: Karen Nies-Vogel, Chair, End-User
Review Committee, Office of the Assistant Secretary, Export
Administration, Bureau of Industry and Security, Department of
Commerce, Phone: (202) 482-5991, Fax: (202) 482-3911, E-mail:
[email protected].
SUPPLEMENTARY INFORMATION:
Background
The Entity List provides notice to the public that certain exports,
reexports, and transfers (in-country) to entities identified on the
Entity List require a license from BIS and that the availability of
license exceptions in such transactions is limited. Entities are placed
on the Entity List on the basis of certain sections of part 744
(Control Policy: End-User and End-Use Based) of the EAR.
The End-User Review Committee (ERC), composed of representatives of
the Departments of Commerce (Chair), State, Defense, Energy and, when
appropriate,Treasury, makes all decisions regarding additions to,
removals from, or other changes to the Entity List. The ERC makes all
decisions to add an entry to the Entity List by majority vote and all
decisions to remove or modify an entry by unanimous vote.
ERC Entity List Decisions
This rule implements the decision of the ERC to add six persons to
the Entity List on the basis of section 744.11 (License requirements
that apply to entities acting contrary to the national security or
foreign policy interests of the United States) of the EAR. The six
entries added to the Entity List consist of two persons in Hong Kong
and four persons in Lebanon.
The ERC reviewed section 744.11(b) (Criteria for revising the
Entity List) in making the determination to add these persons to the
Entity List. Under that paragraph, persons for which there is
reasonable cause to believe, based on specific and articulable facts,
that the persons have been involved, are involved, or pose a
significant risk of being or becoming involved in, activities that are
contrary to the national security or foreign policy
[[Page 44260]]
interests of the United States and those acting on behalf of such
persons may be added to the Entity List pursuant to section 744.11.
Paragraphs (b)(1)-(b)(5) include an illustrative list of activities
that could be contrary to the national security or foreign policy
interests of the United States.
Pursuant to 15 CFR 744.11(b)(2) and 15 CFR 744.11(b)(5), the
persons are being added to the Entity List based on evidence that they
have engaged in actions that could enhance the military capability of
Iran, a country designated by the U.S. Secretary of State as having
repeatedly provided support for acts of international terrorism. These
persons are also added because their overall conduct poses a risk of
ongoing EAR violations. The six companies are added based on evidence
that they purchased electronic components from U.S. firms and then
resold the components to companies in Iran without the required U.S.
export license. The same components were later found in Iraq in
unexploded improvised explosive devices.
Additions to the Entity List
This rule adds six persons to the Entity List on the basis of
section 744.11 of the EAR. For all of the six persons added to the
Entity List, the ERC specifies a license requirement for all items
subject to the EAR and establishes a license application review policy
of a presumption of denial. The license requirement applies to any
transaction in which items are to be exported, reexported, or
transferred (in-country) to such persons or in which such persons act
as purchaser, intermediate consignee, ultimate consignee, or end-user.
In addition, no license exceptions are available for exports,
reexports, or transfers (in-country) to those persons being added to
the Entity List. Specifically, this rule adds the following six persons
to the Entity List:
Hong Kong
(1) Biznest, LTD, Room 927 9/F Far East Consortium Building, 121
Des Voeux Road C, Central District, Hong Kong; and
(2) Yeraz, LTD, Room 927 9/F Far East Consortium Building, 121 Des
Voeux Road C, Central District, Hong Kong.
Lebanon
(1) Micro Power Engineering Group, a.k.a MPEG, Anwar Street, Abou
Karam Building, 1st Floor, Jdeidet El Metn, Beirut, Lebanon;
(2) Narinco Micro Sarl, Dedeyan Center, Dora Boulevard Street,
Bauchrieh Metn, Lebanon;
(3) Serop Elmayan and Sons Lebanon, Ground Floor, Aramouni
Building, Property Number 1731, Fleuve Street, Mar Mekhael Sector,
Beirut, Lebanon; and
(4) Serpico Offshore Sarl, Ground Floor, Aramouni Building,
Property Number 1731, Fleuve Street, Mar Mekhael Sector, Beirut,
Lebanon.
Savings Clause
Shipments of items removed from eligibility for a License Exception
or export or reexport without a license (NLR) as a result of this
regulatory action that were on dock for loading, on lighter, laden
aboard an exporting or reexporting carrier, or en route aboard a
carrier to a port of export or reexport, on July 25, 2011, pursuant to
actual orders for export or reexport to a foreign destination, may
proceed to that destination under the previous eligibility for a
License Exception or export or reexport without a license (NLR) so long
as they are exported or reexported before August 9, 2011. Any such
items not actually exported or reexported before midnight, on August 9,
2011, require a license in accordance with the EAR.
Although the Export Administration Act expired on August 20, 2001,
the President, through Executive Order 13222 of August 17, 2001, 3 CFR,
2001 Comp., p. 783 (2002), as extended by the Notice of August 12,
2010, 75 FR 50681 (August 16, 2010), has continued the Export
Administration Regulations in effect under the International Emergency
Economic Powers Act.
Rulemaking Requirements
1. Executive Orders 13563 and 12866 direct agencies to assess all
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). Executive
Order 13563 emphasizes the importance of quantifying both costs and
benefits, of reducing costs, of harmonizing rules, and of promoting
flexibility. This rule has been determined to be not significant for
purposes of Executive Order 12866.
2. Notwithstanding any other provision of law, no person is
required to respond to nor be subject to a penalty for failure to
comply with a collection of information, subject to the requirements of
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (PRA),
unless that collection of information displays a currently valid Office
of Management and Budget (OMB) Control Number. This regulation involves
collections previously approved by the OMB under control numbers 0694-
0088, ``Multi-Purpose Application,'' which carries a burden hour
estimate of 43.8 minutes for a manual or electronic submission. Total
burden hours associated with the Paperwork Reduction Act and Office of
Management and Budget control number 0694-0088 are expected to increase
slightly as a result of this rule. You may send comments regarding the
collection of information associated with this rule, including
suggestions for reducing the burden, to Jasmeet K. Seehra, Office of
Management and Budget (OMB), by e-mail to [email protected], or by fax to (202) 395-7285.
3. This rule does not contain policies with Federalism implications
as that term is defined in Executive Order 13132.
4. The provisions of the Administrative Procedure Act (5 U.S.C.
553) requiring notice of proposed rulemaking, the opportunity for
public comment and a delay in effective date are inapplicable because
this regulation involves a military or foreign affairs function of the
United States. (See 5 U.S.C. 553(a)(1)). BIS implements this rule to
protect U.S. national security or foreign policy interests by
preventing items from being exported, reexported, or transferred (in
country) to the persons being added to the Entity List. If this rule
were delayed to allow for notice and comment and a delay in effective
date, then entities being added to the Entity List by this action would
continue to be able to receive items without a license and to conduct
activities contrary to the national security or foreign policy
interests of the United States. In addition, because these parties may
receive notice of the U.S. Government's intention to place these
entities on the Entity List once a final rule was published it would
create an incentive for these persons to either accelerate receiving
items subject to the EAR to conduct activities that are contrary to the
national security or foreign policy interests of the United States and/
or to take steps to set up additional aliases, change addresses and
take other steps to try to limit the impact of the listing on the
Entity List once a final rule was published. Further, no other law
requires that a notice of proposed rulemaking and an opportunity for
public comment be given for this rule. Because a notice of proposed
rulemaking and an opportunity for public comment are not required to be
given for this rule by 5
[[Page 44261]]
U.S.C. 553, or by any other law, the analytical requirements of the
Regulatory Flexibility Act, 5 U.S.C. 601 et seq., are not applicable.
List of Subjects in 15 CFR Part 744
Exports, Reporting and recordkeeping requirements, Terrorism.
Accordingly, part 744 of the Export Administration Regulations (15
CFR parts 730-774) is amended as follows:
PART 744--[AMENDED]
0
1. The authority citation for 15 CFR part 744 continues to read as
follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22
U.S.C. 7210; E.O. 12058, 43 FR 20947, 3 CFR, 1978 Comp., p. 179;
E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p. 608; E.O. 12938, 59
FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 12947, 60 FR 5079, 3 CFR,
1995 Comp., p. 356; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p.
228; E.O. 13099, 63 FR 45167, 3 CFR, 1998 Comp., p. 208; E.O. 13222,
66 FR 44025, 3 CFR, 2001 Comp., p. 783; E.O. 13224, 66 FR 49079, 3
CFR, 2001 Comp., p. 786; Notice of August 12, 2010, 75 FR 50681
(August 16, 2010); Notice of November 4, 2010, 75 FR 68673 (November
8, 2010): Notice of January 13, 2011, 76 FR 3009, January 18, 2011.
0
2. Supplement No. 4 to part 744 is amended:
0
a. By adding under Hong Kong, in alphabetical order, two Hong Kong
entities; and
0
b. By adding under, Lebanon, in alphabetical order, four Lebanese
entities.
The additions read as follows:
Supplement No. 4 to Part 744--Entity List
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License review Federal Register
Country Entity License requirement policy citation
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* * * * * * *
HONG KONG
* * * * * * *
Biznest, LTD, Room For all items Presumption of 76 FR [INSERT FR
927 9/F Far East subject to the denial. PAGE NUMBER], 7/25/
Consortium EAR. (See Sec. 11.
Building, 121 Des 744.11 of the EAR).
Voeux Road C,
Central District,
Hong Kong.
* * * * * * *
Yeraz, LTD, Room For all items Presumption of 76 FR [INSERT FR
927 9/F Far East subject to the denial. PAGE NUMBER], 7/25/
Consortium EAR. (See Sec. 11.
Building, 121 Des 744.11 of the EAR).
Voeux Road C,
Central District,
Hong Kong.
* * * * * * *
LEBANON
* * * * * * *
Micro Power For all items Presumption of 76 FR [INSERT FR
Engineering Group, subject to the denial. PAGE NUMBER], 7/25/
a.k.a., MPEG, EAR. (See Sec. 11.
Anwar Street, Abou 744.11 of the EAR).
Karam Building,
1st Floor, Jdeidet
El Metn, Beirut,
Lebanon.
* * * * * * *
Narinco Micro Sarl, For all items Presumption of 76 FR [INSERT FR
Dedeyan Center, subject to the denial. PAGE NUMBER], 7/25/
Dora Boulevard EAR. (See Sec. 11.
Street, Bauchrieh 744.11 of the EAR).
Metn. Lebanon.
Serop Elmayan and For all items Presumption of 76 FR [INSERT FR
Sons Lebanon, subject to the denial. PAGE NUMBER], 7/25/
Ground Floor, EAR. (See Sec. 11.
Aramouni Building, 744.11 of the EAR).
Property Number
1731, Fleuve
Street, Mar
Mekhael Sector,
Beirut, Lebanon.
Serpico Offshore For all items Presumption of 76 FR [INSERT FR
Sarl, Ground subject to the denial. PAGE NUMBER], 7/25/
Floor, Aramouni EAR. (See Sec. 11.
Building, Property 744.11 of the EAR).
Number 1731 Fleuve
Street, Mar
Mekhael Sector,
Beirut, Lebanon.
* * * * * * *
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[[Page 44262]]
Dated: July 20, 2011.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2011-18718 Filed 7-22-11; 8:45 am]
BILLING CODE 3510-33-P