[Federal Register Volume 77, Number 230 (Thursday, November 29, 2012)]
[Rules and Regulations]
[Pages 71097-71099]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-28919]
[[Page 71097]]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Part 744
[Docket No. 121009527-2527-01]
RIN 0694-AF80
Addition of Certain Persons to the Entity List
AGENCY: Bureau of Industry and Security, Commerce.
ACTION: Final rule.
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SUMMARY: This rule amends the Export Administration Regulations (EAR)
by adding two persons to the Entity List and revising one existing
entry. The persons who are added to the Entity List have been
determined by the U.S. Government to be acting contrary to the national
security or foreign policy interests of the United States. These
persons will be listed on the Entity List under one destination. The
two entries added to the Entity List consist of two entries in
Pakistan. This rule is also revising one existing entry in the U.A.E.
to clarify the scope of the entry by providing an additional alias and
alternate address for this listed person.
The Entity List notifies the public that certain exports,
reexports, and transfers (in-country) of items subject to the EAR to
entities identified on the Entity List require licenses from the Bureau
of Industry and Security (BIS) and that in most instances license
exceptions are unavailable for such transactions. BIS usually applies a
license review policy of denial because it considers such entities to
present significant risks of diversion to weapons of mass destruction
(WMD) programs, terrorism, or other activities that are contrary to
U.S. national security or foreign policy interests. By publicly listing
such entities, BIS seeks to assist legitimate exporters, reexporters
and transferors, and other parties participating in transactions that
are subject to the EAR by providing them with information to detect and
avoid high risk transactions with those entities, which in most cases
means any transaction that involves items that are subject to the EAR.
DATES: Effective Date: This rule is effective November 29, 2012.
FOR FURTHER INFORMATION CONTACT: Karen Nies-Vogel, Chair, End-User
Review Committee, Office of the Assistant Secretary, Export
Administration, Bureau of Industry and Security, Department of
Commerce, Phone: (202) 482-5991, Fax: (202) 482-3911, Email:
[email protected].
SUPPLEMENTARY INFORMATION:
Background
The Entity List (Supplement No. 4 to Part 744) notifies the public
about entities that have engaged in activities that could result in an
increased risk of the diversion of exported, reexported or transferred
(in-country) items to weapons of mass destruction (WMD) programs. Since
its initial publication, grounds for inclusion on the Entity List have
expanded to include activities sanctioned by the State Department and
activities contrary to U.S. national security or foreign policy
interests, including terrorism and export control violations involving
abuse of human rights. Certain exports, reexports, and transfers (in-
country) to entities identified on the Entity List require licenses
from BIS and are usually subject to a policy of denial. The
availability of license exceptions in such transactions is very
limited. The license review policy for each entity is identified in the
license review policy column on the Entity List and the availability of
license exceptions is noted in the Federal Register notices adding
persons to the Entity List. BIS places entities on the Entity List
based on certain sections of part 744 (Control Policy: End-User and
End-Use Based) of the EAR.
The End-user Review Committee (ERC), composed of representatives of
the Departments of Commerce (Chair), State, Defense, Energy and, where
appropriate, the Treasury, makes all decisions regarding additions to,
removals from, or other modifications to the Entity List. The ERC makes
all decisions to add an entry to the Entity List by majority vote and
all decisions to remove or modify an entry by unanimous vote.
ERC Entity List Decisions
Additions to the Entity List
This rule implements the decision of the ERC to add two persons to
the Entity List on the basis of Sec. 744.11 (License requirements that
apply to entities acting contrary to the national security or foreign
policy interests of the United States) of the EAR. The two entries
added to the Entity List consist of two entries in Pakistan.
The ERC reviewed Sec. 744.11(b) (Criteria for revising the Entity
List) in making the determination to add these two persons to the
Entity List. Under that paragraph, persons for whom there is reasonable
cause to believe, based on specific and articulable facts, that they
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 interests of the United States and those
acting on behalf of such persons may be added to the Entity List
pursuant to Sec. 744.11. Paragraphs (b)(1)-(b)(5) of Sec. 744.11
include an illustrative list of activities that could be contrary to
the national security or foreign policy interests of the United States.
The two persons being added under Pakistan, Mohammad Azam and Azam
Electronics, are believed to have been involved in activities described
under paragraphs (b)(1) and (b)(2) of Sec. 744.11. Mohammad Azam owns
and directs Azam Electronics in Chaman, Pakistan. There are entities
operating in Chaman, Pakistan, that support violent extremist
organizations that use Improvised Explosive Devices (IEDs) in Pakistan
and Afghanistan to further their terrorist-related objectives.
Electronic components sourced from Azam Electronics are used as
triggering devices in IEDs that are being used in Afghanistan and
Pakistan.
For the two persons added to the Entity List and the one modified
entry described below, the ERC specified a license requirement for all
items subject to the EAR, and established 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.
This final rule adds the following two persons to the Entity List:
Pakistan
(1) Azam Electronics, a.k.a., the following two aliases:
--Mohammad Azam Electronics, and
--Akram Dish TV Satellite Center, Chaman, Killa, Abdullah District,
Baluchistan Province, Pakistan; and
(2) Mohammad Azam, a.k.a:
--Mohammad Akram, Chaman, Killa, Abdullah District, Baluchistan
Province, Pakistan.
Modification to the Entity List
On the basis of a decision made by the ERC, in addition to the two
Pakistani additions described above, this rule amends one entry
currently on the Entity List under the U.A.E. The amendments provide
one additional alias and one alternate address for this listed person,
as follows:
[[Page 71098]]
United Arab Emirates
(1) Infotec, a.k.a., the following two aliases:
--Info Tech, and
--I. Tec Trading FZE, P.O Box 10559, Ras Al Khaimah, U.A.E.; and
Ras Al Khaimah Free Trade Zone (RAKFTZ), U.A.E.
Revision of Authority Citation for Part 744
On November 14, 1994, by Executive Order 12938, the President
declared a national emergency with respect to the unusual and
extraordinary threat to the national security, foreign policy, and
economy of the United States posed by the proliferation of nuclear,
biological, and chemical weapons (weapons of mass destruction) and the
means of delivering such weapons. The authority for authority for parts
730, 734, 736, 742, 744 and 745 of the Export Administration
Regulations (15 CFR parts 730-774) rests in part on that executive
order and the annual notices continuing the international emergency
declared therein. This rule revises the authority citations paragraph
to part 744 of the EAR (15 CFR part 730) to include citations to the
President's Notice of November 1, 2012--Continuation of the National
Emergency With Respect to Weapons of Mass Destruction (77 FR 66513,
November 5, 2012), which is the most recent such annual notice.
Savings Clause
Shipments of items removed from eligibility for a License Exception
or export or reexport without a license (NLR) as a result of this
regulatory action that were en route aboard a carrier to a port of
export or reexport, on November 29, 2012, 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).
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 15,
2012, 77 FR 49699 (August 16, 2012), has continued the Export
Administration Regulations in effect under the International Emergency
Economic Powers Act. BIS continues to carry out the provisions of the
Export Administration Act, as appropriate and to the extent permitted
by law, pursuant to Executive Order 13222.
Rulemaking Requirements
1. Executive Orders 13563 and 12866 direct agencies to assess all
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). Executive
Order 13563 emphasizes the importance of quantifying both costs and
benefits, of reducing costs, of harmonizing rules, and of promoting
flexibility. This rule has been determined to be not 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 PRA and OMB control number 0694-0088
are not expected to increase as a result of this rule. You may send
comments regarding the collection of information associated with this
rule, including suggestions for reducing the burden, to Jasmeet K.
Seehra, Office of Management and Budget (OMB), by email to [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 other measures to try to limit the impact of the listing on the
Entity List once a final rule was published. Further, no other law
requires that a notice of proposed rulemaking and an opportunity for
public comment be given for this rule. Because a notice of proposed
rulemaking and an opportunity for public comment are not required to be
given for this rule by 5 U.S.C. 553, or by any other law, the
analytical requirements of the Regulatory Flexibility Act, 5 U.S.C. 601
et seq., are not applicable. Accordingly, no regulatory flexibility
analysis is required and none has been prepared.
List of Subjects in 15 CFR Part 744
Exports, Reporting and recordkeeping requirements, Terrorism.
Accordingly, Part 744 of the Export Administration Regulations (15
CFR parts 730-774) is amended as follows:
PART 744--[AMENDED]
0
1. The authority citation for 15 CFR part 744 is revised to read as
follows:
Authority: 50 U.S.C. 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 January 19, 2012, 77 FR 3067
(January 20, 2012) Notice of August 15, 2012, 77 FR 49699 (August
16, 2012); Notice of September 11, 2012, 77 FR 56519 (September, 12,
2012); Notice of November 1, 2012, 77 FR 66513 (November 5, 2012).
0
2. Supplement No. 4 to part 744 is amended:
0
a. By adding under Pakistan, in alphabetical order, two Pakistani
entities; and
[[Page 71099]]
0
b. By revising under the United Arab Emirates, the Emirati entity,
Infotec, a.k.a., Info Tech, Ras Al Khaimah Free Trade Zone (RAKFTZ),
U.A.E.
The additions and revisions read as follows:
Supplement No. 4 to Part 744--Entity List
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License License review Federal Register
Country Entity requirement policy citation
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* * * * * * *
PAKISTAN
* * * * * * *
Azam Electronics, a.k.a., the For all items Presumption of 77 FR [INSERT FR
following two aliases: subject to the denial. PAGE NUMBER]
--Mohammad Azam Electronics, and EAR. (See Sec. 11/30/12.
--Akram Dish TV Satellite Center, 744.11 of the
Chaman, Killa, Abdullah District, EAR)
Baluchistan Province, Pakistan
* * * * * * *
Mohammad Azam, a.k.a, For all items Presumption of 77 FR [INSERT FR
--Mohammad Akram, subject to the denial. PAGE NUMBER]
Chaman, Killa, Abdullah District, EAR. (See Sec. 11/30/12.
Baluchistan Province, Pakistan 744.11 of the
EAR)
* * * * * * *
UNITED ARAB EMIRATES
* * * * * * *
Infotec, a.k.a., the following two For all items Presumption of 76 FR 78146, 12/
aliases: subject to the denial. 16/11.
--Info Tech, and EAR. (See Sec. 77 FR [INSERT FR
--I. Tec Trading FZE, 744.11 of the PAGE NUMBER]
P.O. Box 10559, Ras Al Khaimah, EAR) 11/30/12.
U.A.E.; and Ras Al Khaimah Free
Trade Zone (RAKFTZ), U.A.E.
* * * * * * *
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Dated: November 26, 2012.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2012-28919 Filed 11-28-12; 8:45 am]
BILLING CODE 3510-33-P