[Federal Register Volume 83, Number 96 (Thursday, May 17, 2018)]
[Rules and Regulations]
[Pages 22842-22846]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-10528]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Part 744
[Docket No. 180214174-8174-01]
RIN 0694-AH54
Revisions to the Unverified List (UVL)
AGENCY: Bureau of Industry and Security, Commerce.
ACTION: Final rule.
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SUMMARY: The Bureau of Industry and Security (BIS) is amending the
Export Administration Regulations (EAR) by adding thirty-three (33)
persons to the Unverified List (``UVL'') and adding an additional
address for one (1) person currently listed on the UVL. The thirty-
three persons are being added to the UVL on the basis that BIS could
not verify their bona fides because an end-use check could not be
completed satisfactorily for reasons outside the U.S. Government's
control. A new address is added for one person as BIS has determined
that this person is receiving exports from the United States at an
additional address.
DATES: This rule is effective May 17, 2018.
FOR FURTHER INFORMATION CONTACT: Kevin Kurland, Director, Office of
Enforcement Analysis, Bureau of Industry and Security, Department of
Commerce, Phone: (202) 482-4255 or by email at [email protected].
SUPPLEMENTARY INFORMATION:
Background
The Unverified List, found in Supplement No. 6 to Part 744 to the
EAR, contains the names and addresses of foreign persons who are or
have been parties to a transaction, as that term is described in Sec.
748.5 of the EAR, involving the export, reexport, or transfer (in-
country) of items subject to the EAR, and whose bona fides (i.e.,
legitimacy and reliability relating to the end use and end user of
items subject to the EAR) BIS has been unable to verify through an end-
use check. BIS may add persons to the UVL when BIS or federal officials
acting on BIS's behalf have been unable to verify a foreign person's
bona fides because an end-use check, such as a pre-license check (PLC)
or a post-shipment verification (PSV), cannot be completed
satisfactorily for such purposes for reasons outside the U.S.
Government's control.
There are occasions where, for a number of reasons, end-use checks
cannot be completed. These include reasons unrelated to the cooperation
of the foreign party subject to the end-use check. For example, BIS
sometimes initiates end-use checks and cannot find a foreign party at
the address indicated on export documents, and cannot locate the party
by telephone or email. Additionally, BIS sometimes is unable to conduct
end-use checks when host government agencies do not respond to requests
to conduct end-use checks, are prevented from scheduling such checks by
a party to the transaction other than the foreign party that is the
proposed subject of the end-use check, or refuse to schedule them in a
timely manner. Under these circumstances, although BIS has an interest
in informing the public of its inability to verify the foreign party's
bona fides, there may not be sufficient information to add the foreign
person at issue to the Entity List under Sec. 744.11 of the EAR
(Criteria for revising the Entity List). In such circumstances, BIS may
add the foreign person to the UVL.
Furthermore, BIS sometimes conducts end-use checks but cannot
verify the bona fides of a foreign party. For example, BIS may be
unable to verify bona fides if during the conduct of an end-use check a
recipient of items subject to the EAR is unable to produce those items
for visual inspection or provide sufficient documentation or other
evidence to confirm the disposition of those items. The inability of
foreign persons subject to end-use checks to demonstrate their bona
fides raises concerns about the suitability of such persons as
participants in future exports, reexports, or transfers (in-country) of
items subject to the EAR and indicates a risk that such items may be
diverted to prohibited end uses and/or end users. However, BIS may not
have sufficient information to establish that such persons are involved
in activities described in parts 744 or 746 of the EAR, preventing the
placement of the persons on the Entity List. In such circumstances, the
foreign persons may be added to the Unverified List.
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, reexporters, and transferors to obtain (and
keep 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.
Requests for 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 listings will be made by the Deputy Assistant
Secretary for Export Enforcement, based on a demonstration by the
listed person of its bona fides.
Changes to the EAR
Supplement No. 6 to Part 744 (``the Unverified List'' or ``UVL'')
This rule adds thirty-three (33) persons to the UVL by amending
Supplement No. 6 to Part 744 of the EAR to include their names and
addresses. BIS adds these persons in accordance with the criteria for
revising the UVL set forth in Sec. 744.15(c) of the EAR. The new
entries consist of eleven persons located in China, twelve in Russia,
five in the United Arab Emirates, two in Canada, and one person located
in each of the following countries: Estonia, Finland, and Pakistan.
Each listing is grouped within the UVL by country with each party's
name(s) listed in alphabetical order under the country; each entry
includes available alias(es) and address(es), as well as the Federal
Register citation and the date the person was added to the UVL. The UVL
is included in the Consolidated Screening List, available at
www.export.gov.
This rule also adds one additional address for one person currently
listed on the UVL, Ling Ao Electronic Technology Co. Ltd, a.k.a. Voyage
Technology (HK) Co., Ltd., a.k.a. Xuan
[[Page 22843]]
Qi Technology Co. Ltd., as BIS has determined that this person is
receiving exports from the United States at an additional address.
Savings Clause
Shipments (1) 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) eligible for export, reexport, or
transfer (in-country) without a license before this regulatory action;
and (3) on dock for loading, on lighter, laden aboard an exporting
carrier, or en route aboard a carrier to a port of export, on May 17,
2018, pursuant to actual orders, may proceed to that UVL listed person
under the previous license exception eligibility or without a license
so long as the items have been exported from the United States,
reexported or transferred (in-country) before June 18, 2018. Any such
items not actually exported, reexported or transferred (in-country)
before midnight on June 18, 2018 are subject to the requirements in
Sec. 744.15 of the EAR in accordance with this regulation.
Export Administration Act
Since August 21, 2001, the Export Administration Act of 1979, as
amended, has been in lapse. However, the President, through Executive
Order 13222 of August 17, 2001, 3 CFR, 2001 Comp., p. 783 (2002), as
amended by Executive Order 13637 of March 8, 2013, 78 FR 16129 (March
13, 2013), and as extended by the Notice of August 15, 2017, 82 FR
39005 (August 16, 2017) has continued the EAR in effect under the
International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.).
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 as amended by Executive Order 13637.
Rulemaking Requirements
1. Executive Orders 13563 and 12866 direct agencies to assess all
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). Executive
Order 13563 emphasizes the importance of quantifying both costs and
benefits, of reducing costs, of harmonizing rules, and of promoting
flexibility. This rule has not been designated a ``significant
regulatory action,'' under section 3(f) of Executive Order 12866.
2. 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 to this
rule, which is adding 33 persons to the UVL and adding a new address
for one (1) other person currently listed on the UVL, because this
regulation involves a military or foreign affairs function of the
United States under 5 U.S.C. 553(a)(1). BIS implements this rule to
protect U.S. national security or foreign policy interests by requiring
a license or, where no license is required, a UVL statement for items
being exported, reexported, or transferred (in country) involving a
party or parties to the transaction who are listed on the UVL. If this
rule were delayed to allow for notice and comment and a delay in
effective date, the entities being added to the UVL by this action and
the entity now receiving exports from the United States at an
additional address would continue to be able to receive items without
additional oversight by BIS and to conduct activities contrary to the
national security or foreign policy interests of the United States. In
addition, publishing a proposed rule would give these parties notice of
the U.S. Government's intention to place them on the UVL or amend their
current entry on the UVL, and create an incentive for these persons to
accelerate receiving items subject to the EAR in furtherance of
activities contrary to the national security or foreign policy
interests of the United States, and/or take steps to set up additional
aliases, change addresses, and other measures to try to limit the
impact of the listing 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.
3. 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 regulation involves
collections previously approved by OMB under the following control
numbers: 0694-0088, 0694-0122, 0694-0134, and 0694-0137.
This rule slightly increases public burden in a collection of
information approved by OMB under control number 0694-0088, which
authorizes, among other things, export license applications. The
removal of license exceptions for listed persons on the Unverified List
will result in increased license applications being submitted to BIS by
exporters. Total burden hours associated with the Paperwork Reduction
Act and OMB control number 0694-0088 are expected to increase
minimally, as the suspension of license exceptions will only affect
transactions involving persons listed on the Unverified List and not
all export transactions. Because license exceptions are restricted from
use, this rule decreases public burden in a collection of information
approved by OMB under control number 0694-0137 minimally, as this will
only affect specific individual listed persons. The increased burden
under 0694-0088 is reciprocal to the decrease of burden under 0694-
0137, and results in no change of burden to the public. This rule also
increases public burden in a collection of information under OMB
control number 0694-0122, as a result of the exchange of UVL statements
between private parties, and under OMB control number 0694-0134, as a
result of appeals from persons listed on the UVL for removal of their
listing. The total increase in burden hours associated with both of
these collections is expected to be minimal, as they involve a limited
number of persons listed on the UVL.
4. This rule does not contain policies with Federalism implications
as that term is defined in Executive Order 13132.
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 part 744 continues to read as follows:
Authority: 50 U.S.C. 4601 et seq.; 50 U.S.C. 1701 et seq.; 22
U.S.C. 3201 et seq.; 42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22
U.S.C. 7210; E.O. 12058, 43 FR 20947, 3 CFR, 1978 Comp., p. 179;
E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p. 608; E.O. 12938, 59
FR 59099, 3 CFR, 1994 Comp., p. 950; E.O.
[[Page 22844]]
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 15, 2017, 82 FR 39005 (August 16, 2017); Notice of September
18, 2017, 82 FR 43825 (September 19, 2017); Notice of November 6,
2017, 82 FR 51971 (November 8, 2017); Notice of January 17, 2018, 83
FR 2731 (January 18, 2018).
0
2. Supplement No. 6 to Part 744 is amended by:
0
a. Adding two entries, in alphabetical order, for ``Canada'';
0
b. Adding eleven entries, in alphabetical order, under ``China'';
0
c. Adding one entry, in alphabetical order, under ``Estonia'';
0
d. Adding one entry, in alphabetical order, for ``Finland'';
0
e. Revising the entry for ``Ling Ao Electronic Technology Co. Ltd.,
a.k.a. Voyage Technology (HK) Co., Ltd., a.k.a. Xuan Qi Technology Co.
Ltd.'' under ``Hong Kong'';
0
f. Adding one entry, in alphabetical order, for ``Pakistan'';
0
g. Adding twelve entries, in alphabetical order, under ``Russia''; and
0
h. Adding five entries, in alphabetical order, under ``United Arab
Emirates''.
The additions and revisions read as follows:
Supplement No. 6 to Part 744--Unverified List
* * * * *
------------------------------------------------------------------------
Federal Register
Country Listed person and citation and date of
address publication
------------------------------------------------------------------------
* * * * * * *
CANADA.................... Laval Electronics, 83 FR ``[INSERT
3073 Rue Edmond- FEDERAL REGISTER
Rostand, Laval, QC PAGE NUMBER], May
H7P, Canada. 17, 2018.''
* * * * * * *
Services GP Tek, 83 FR ``[INSERT
a.k.a. Nouvelle FEDERAL REGISTER
Option, 1305 Rue PAGE NUMBER], May
Pise, Brossard, QC 17, 2018.''
J4W 2P7, Canada; and
203-760 Rue Galt,
Montreal, QC H4G
2P7, Canada; and
6271 Rue Beaulieu,
Montreal, QC, H4E
3E9, Canada.
* * * * * * *
CHINA..................... Changhe Aircraft 83 FR ``[INSERT
Industries Group, FEDERAL REGISTER
No. 539, Chaoyang PAGE NUMBER], May
Road, Jingdezhen 17, 2018.''
City, Jiangxi
Province, China.
* * * * * * *
Dandong Center for 83 FR ``[INSERT
Food Control, No. 31- FEDERAL REGISTER
1 Zhongyang Avenue, PAGE NUMBER], May
Dandong, China. 17, 2018.''
Institute of Geology, 83 FR ``[INSERT
Chinese Academy of FEDERAL REGISTER
Geological Sciences, PAGE NUMBER], May
No. 26, Baiwanzhuang 17, 2018.''
Street, Beijing,
100037, China.
* * * * * * *
Jiangxi Hongdu 83 FR ``[INSERT
Aviation Ind. Group, FEDERAL REGISTER
The Nanchang PAGE NUMBER], May
National High & New 17, 2018.''
Technology
Development Zone,
Jiangxi Province,
Yaohu Nanchang,
China.
Jiujiang Jinxin 83 FR ``[INSERT
Nonferrous Metals FEDERAL REGISTER
Co, Ltd., Xunyang PAGE NUMBER], May
Chem. Bldg, 17, 2018.''
Materials Factory,
Xunyang District,
Jiujiang City, China.
Liupanshui Normal 83 FR ``[INSERT
University, 19 FEDERAL REGISTER
Minghu Road, PAGE NUMBER], May
Zhongshan District, 17, 2018.''
Liupanshui, Guizhou,
553004, China.
Nanchang University, 83 FR ``[INSERT
No. 999 Xuefu FEDERAL REGISTER
Avenue, Honggutan PAGE NUMBER], May
New District, 17, 2018.''
Nanchang, 330031,
China.
Shanxi Hemu 83 FR ``[INSERT
Industrial Co., FEDERAL REGISTER
Ltd., Yongchang Rd, PAGE NUMBER], May
Xianyang HiTech 17, 2018.''
Industries
Development Zone,
Shanxi, China.
* * * * * * *
Sino Superconductor 83 FR ``[INSERT
Technology Company, FEDERAL REGISTER
a.k.a. Zongyi PAGE NUMBER], May
Superconductor 17, 2018.''
Technologies Co.
Ltd., a.k.a.
SinoHTS, 505 Nantian
Bldg, 10, Xinxi Rd,
Shangdi, Haidian,
Beijing, China.
Xinjiang East Hope 83 FR ``[INSERT
New Energy Company FEDERAL REGISTER
Ltd, Xinjiang East PAGE NUMBER], May
Eco. Development 17, 2018.''
Zone, XinJiang,
China.
Yantai Salvage 83 FR ``[INSERT
Bureau, No. 100 FEDERAL REGISTER
Zhifudao East Road, PAGE NUMBER], May
Zhifu District, 17, 2018.''
Yantai, Shandong,
264012, China.
* * * * * * *
ESTONIA................... Simms Marine Group 83 FR ``[INSERT
OU, Sergey Ivanov, FEDERAL REGISTER
Paavli str. \5/2\, PAGE NUMBER], May
Tallinn, Estonia, 17, 2018.''
10412.
FINLAND................... Net Logistics JVM OY, 83 FR ``[INSERT
a.k.a. Net Logistic FEDERAL REGISTER
JVM OY, Eskolantie PAGE NUMBER], May
1, Helsinki, Finland 17, 2018.''
00720; and
Merituulentie 486,
Port Mussalo, Kotka,
Finland 48310.
* * * * * * *
HONG KONG................. * * * * * *
[[Page 22845]]
* * * * * * *
Ling Ao Electronic 83 FR ``[INSERT
Technology Co. Ltd, FEDERAL REGISTER
a.k.a. Voyage PAGE NUMBER], May
Technology (HK) Co., 17, 2018.''
Ltd. a.k.a. Xuan Qi
Technology Co.,
Ltd., Room 17, 7/F,
Metro Centre Phase
1, No. 32 Lam Hing
St., Kowloon Bay,
Kwun Tong, Hong
Kong; and 15B, 15/F,
Cheuk Nang Plaza,
250 Hennessy Road,
Wanchai, Hong Kong;
and Flat C, 11/F,
Block No. 2,
Camelpaint Bldg. 62
Hoi Yuen Street,
Kwun Tong, Kowloon,
Hong Kong; and Room
C1-D, 6/F, Wing Hing
Industrial Building
14 Hing Yip Street,
Kwun Tong, Kowloon,
Hong Kong; and Flat/
Rm. A30, 9/F
Silvercorp
International Tower,
707-713 Nathan Road,
Mongkok, Kowloon,
Hong Kong; and Room,
912A, 9/F. Witty
Commercial Building,
1A-1L Tung Choi
Street, Mongkok,
Kowloon, Hong Kong;
and Unit A, 7/F,
King Yip Factory
Bldg., 59 King Yip
Street, Kwun Tong,
Kowloon, Hong Kong;
and Unit D, 16/F,
One Capital Place,
18 Luard Road,
Wanchi, Hong Kong.
* * * * * * *
PAKISTAN.................. Andleeb Associates, 83 FR ``[INSERT
Sultan Complex, Abid FEDERAL REGISTER
Majeed Road, PAGE NUMBER], May
Rawalpindi, Pakistan. 17, 2018.''
* * * * * * *
RUSSIA.................... Alliance EG Ltd., 83 FR ``[INSERT
Leninsky Prospect FEDERAL REGISTER
139, Office 310, St. PAGE NUMBER], May
Petersburg 198216, 17, 2018.''
Russia.
Eltech Ltd., 3A, pl. 83 FR ``[INSERT
Konstitutsii, Saint FEDERAL REGISTER
Petersburg 196247, PAGE NUMBER], May
Russia. 17, 2018.''
EFO Ltd., 83 FR ``[INSERT
Politechnicheskaya FEDERAL REGISTER
Street 21, Saint PAGE NUMBER], May
Petersburg 192019, 17, 2018.''
Russia and 15A
Novolitovskaya Str.,
Office 441, Saint
Petersburg, Russia.
Intercom Ltd., 83 FR ``[INSERT
Kalinina Street 13, FEDERAL REGISTER
Saint Petersburg PAGE NUMBER], May
198099, Russia. 17, 2018.''
* * * * * * *
MT Systems, Kalinina 83 FR ``[INSERT
Street 13, Saint FEDERAL REGISTER
Petersburg 198099, PAGE NUMBER], May
Russia. 17, 2018.''
* * * * * * *
Radiofizika OAO, 83 FR ``[INSERT
D.10. Ul. Geroev FEDERAL REGISTER
Panfilovtsev, Moscow PAGE NUMBER], May
125363, Russia. 17, 2018.''
Romona Inc., Prospekt 83 FR ``[INSERT
Mira 426, Yuzhno- FEDERAL REGISTER
Sakhalinsk 693004, PAGE NUMBER], May
Russia. 17, 2018.''
FSUE Rosmorport Far 83 FR ``[INSERT
Eastern Basin FEDERAL REGISTER
Branch, PAGE NUMBER], May
Nizhneportovaya 17, 2018.''
Street 3, Primorskiy
Territory,
Vladivostok 690003,
Russia.
Sakhalin Energy 83 FR ``[INSERT
Investment Company FEDERAL REGISTER
Ltd., Dzerzhinskogo PAGE NUMBER], May
Street 35, Yuzhno- 17, 2018.''
Sakhalinsk 693020,
Russia.
* * * * * * *
SIC Dipaul, Bolshaya 83 FR ``[INSERT
Monetnaya Street 16, FEDERAL REGISTER
Saint Petersburg PAGE NUMBER], May
197101, Russia and 17, 2018.''
5B, Rentgena ul.,
197101, Saint.
Tavrida 83 FR ``[INSERT
Microelectronics, FEDERAL REGISTER
Zelenaya Street 1, PAGE NUMBER], May
Dolgoprudnyy, Moscow 17, 2018.''
141700, Russia.
VIP Technology Ltd., 83 FR ``[INSERT
Bechtereva Street \3/ FEDERAL REGISTER
2\, Office 40, Saint PAGE NUMBER], May
Petersburg 192019, 17, 2018.''
Russia.
* * * * * * *
UNITED ARAB EMIRATES...... * * * * * *
* * * * * * *
Alsaroud General 83 FR ``[INSERT
Trading, a.k.a. FEDERAL REGISTER
Alsaroud Ground PAGE NUMBER], May
Trading Company, 17, 2018.''
a.k.a. Alsarroud
General Trading LLC,
Avenue 125, Street
2, Building 30/1,
Industrial Area 17,
Sharjah, UAE; and
P.O. Box 35939,
Sharjah, UAE; and
204 Shaikha Hind
Bint Saqr Alqasemi
Building, Near
Etisalat Building,
Almareja Street, Al
Jubail, Sharjah, UAE.
* * * * * * *
Chepstow FZE, Office 83 FR ``[INSERT
No. 12, Y Block, FEDERAL REGISTER
P.O. Box 121227, PAGE NUMBER], May
Sharjah Airport 17, 2018.''
International Free
Zone, Sharjah, UAE.
[[Page 22846]]
* * * * * * *
GenX Middle East FZE, 83 FR ``[INSERT
a.k.a. GenX Systems FEDERAL REGISTER
LLC, #510-511 Le PAGE NUMBER], May
Solarium Building, 17, 2018.''
Dubai Silicon Oasis,
Dubai, UAE; and P.O.
Box 121225, Office
M07, Al Zahra,
Khaleed Bin Al
Waleed Road, Bur
Dubai, Dubai, UAE.
Roudah Al Hayat 83 FR ``[INSERT
General Trading FZE, FEDERAL REGISTER
a.k.a. Rudha Al PAGE NUMBER], May
Hayat General 17, 2018.''
Trading, a.k.a.
Rouda Al Hayat
General Trading,
a.k.a. JSB
Logistics, 406 Al
Rhakaimi Building,
Deira, Dubai, UAE;
and #3204 Aspect
Tower D, Sheikh
Zayed Road, Dubai,
UAE; and #1506
Aspect Tower D,
Sheikh Zayed Road,
Dubai, UAE and 901
Regal Tower,
Business Bay, Dubai,
UAE and 402 Al Fahad
Building, Damascus
Street, Dubai, UAE.
* * * * * * *
TEM International 83 FR ``[INSERT
FZC, Dubai Silicon FEDERAL REGISTER
Oasis Headquarters PAGE NUMBER], May
Building, 4th Floor 17, 2018.''
C&D Wings, P.O. Box
341041, Dubai, UAE.
* * * * * * *
------------------------------------------------------------------------
Dated: May 12, 2018.
Richard E. Ashooh,
Assistant Secretary for Export Administration.
[FR Doc. 2018-10528 Filed 5-16-18; 8:45 am]
BILLING CODE 3510-33-P