80 FR 31834 - Addition of Certain Person to the Entity List

DEPARTMENT OF COMMERCE
Bureau of Industry and Security

Federal Register Volume 80, Issue 107 (June 4, 2015)

In this rule, the Bureau of Industry and Security (BIS) amends the Export Administration Regulations (EAR) by adding one person to the Entity List. The person who is added to the Entity List is located in Ecuador and has been determined by the U.S. Government to be acting contrary to the national security or foreign policy interests of the United States. This person will be listed on the Entity List under the destination of Ecuador.

[Federal Register Volume 80, Number 107 (Thursday, June 4, 2015)]
[Rules and Regulations]
[Pages 31834-31836]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-13632]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 744

[Docket No. 150304211-5211-01]
RIN 0694-AG55


Addition of Certain Person to the Entity List

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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SUMMARY: In this rule, the Bureau of Industry and Security (BIS) amends 
the Export Administration Regulations (EAR) by adding one person to the 
Entity List. The person who is added to the Entity List is located in 
Ecuador and has been determined by the U.S. Government to be acting 
contrary to the national security or foreign policy interests of the 
United States. This person will be listed on the Entity List under the 
destination of Ecuador.

DATES: Effective Date: This rule is effective June 4, 2015.

FOR FURTHER INFORMATION CONTACT: 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 notifies the public about entities that have 
engaged in activities that could result in an

[[Page 31835]]

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. 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) and part 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 
all decisions to remove or modify an entry by unanimous vote. This rule 
implements a decision of the Advisory Committee on Export Policy 
(ACEP), which the ERC has deemed to also be the decision of the ERC in 
this matter, to approve this change to the Entity List.

ERC Entity List Decision

Addition to the Entity List

    Under Sec.  744.11(b) (Criteria for revising the Entity List) of 
the EAR, persons for whom there is reasonable cause to believe, based 
on specific and articulable facts, 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. The person being added to the Entity List has 
been determined to be involved in activities that are contrary to the 
national security or foreign policy interests of the United States. 
Paragraphs (b)(1) through (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 Departments represented on the ERC, by way of a decision of the 
ACEP, which the ERC has deemed to also be the decision of the ERC in 
this matter, determined that the person being added to the Entity List 
under the destination of Ecuador has been involved in activities 
contrary to the national security and foreign policy interests of the 
United States. There is reasonable cause to believe that the 
Corporacion Nacional de Telecommunicaciones (CNT), the state-owned 
telecommunications utility in Ecuador, has been involved, is involved, 
or poses a significant risk of being or becoming involved in, 
activities that are contrary to the foreign policy interests of the 
United States as defined in Sec.  744.11(b) of the EAR.
    Pursuant to Sec.  744.11(b) of the EAR, the Departments represented 
on the ERC by way of a decision of the ACEP, which the ERC has deemed 
to also be the decision of the ERC in this matter, determined that the 
conduct of this person raises sufficient concern that prior review of 
exports, reexports, or transfers (in-country) of items subject to the 
EAR involving this person, and the possible imposition of license 
conditions or license denials on shipments to the person, will enhance 
BIS's ability to prevent violations of the EAR.
    For the one person added to the Entity List, BIS imposes a license 
requirement for any transaction in which items classified under Export 
Control Classification Numbers (ECCNs) 5D002 or 5A002 are to be 
exported, reexported, or transferred (in-country) to this person or in 
which such person acts as purchaser, intermediate consignee, ultimate 
consignee, or end-user. The license review policy will be case-by-case 
review. In addition, no license exceptions are available for exports, 
reexports, or transfers (in-country) to the person being added to the 
Entity List in this rule for items classified under ECCNs 5D002 or 
5A002.
    This final rule adds the following person to the Entity List:
Ecuador
(1) Corporacion Nacional de Telecommunicaciones (CNT), Avenida Gaspar 
de Villaroel Quito, Ecuador; and Avda. Veintimilla, Suite 1149 y 
Amazonas, Edificio Estudio Z, Quito, Ecuador.

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 June 4, 2015, 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).

Export Administration Act

    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 amended by Executive Order 13637 of March 
8, 2013, 78 FR 16129 (March 13, 2013) and as extended by the Notice of 
August 7, 2014, 79 FR 46959 (August 11, 2014), 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 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 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 OMB under control number 0694-0088, 
Simplified Network Application Processing System, which includes, among 
other things, license applications and carries a burden 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

[[Page 31836]]

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 person being added to the Entity List. If this rule 
were delayed to allow for notice and comment and a delay in effective 
date, then the entity 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, publishing a proposed rule 
would give this party notice of the U.S. Government's intention to 
place them on the Entity List and would create an incentive for this 
person 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 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 7, 2014, 79 FR 46959 
(August 11, 2014); Notice of September 17, 2014, 79 FR 56475 
(September 19, 2014); Notice of November 7, 2014, 79 FR 67035 
(November 12, 2014); Notice of January 21, 2015, 80 FR 3461 (January 
22, 2015).


0
2. Supplement No. 4 to part 744 is amended by adding in alphabetical 
order the destination of Ecuador under the Country Column, and one 
Ecuadorian entity to 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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ECUADOR................                                         * * * * * *
                         Corporacion Nacional de       For items            Case-by-case       80 FR [INSERT FR
                          Telecommunicaciones (CNT),    classified under     review.            PAGE NUMBER] 6/4/
                          Avenida Gaspar de Villaroel   Export Control                          15.
                          Quito, Ecuador; and Avda.     Classification
                          Veintimilla, Suite 1149 y     Numbers (ECCNs)
                          Amazonas, Edificio Estudio    5D002 or 5A002.
                          Z, Quito, Ecuador.            (See Sec.   744.11
                                                        of the EAR).
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    Dated: May 29, 2015.
Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 2015-13632 Filed 6-3-15; 8:45 am]
 BILLING CODE 3510-33-P