82 FR 15458 - Removal of Certain Persons From the Entity List; Addition of a Person to the Entity List; and EAR Conforming Change
DEPARTMENT OF COMMERCE
Bureau of Industry and Security Federal Register Volume 82, Issue 59 (March 29, 2017)
Bureau of Industry and Security
Federal Register Volume 82, Issue 59 (March 29, 2017)
| Page Range | 15458-15461 | |
| FR Document | 2017-06227 |
[Federal Register Volume 82, Number 59 (Wednesday, March 29, 2017)] [Rules and Regulations] [Pages 15458-15461] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-06227] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF COMMERCE Bureau of Industry and Security 15 CFR Part 744 [Docket No. 170109042-7255-01] RIN 0694-AH30 Removal of Certain Persons From the Entity List; Addition of a Person to the Entity List; and EAR Conforming Change AGENCY: Bureau of Industry and Security, Commerce. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: This rule amends the Export Administration Regulations (EAR) by removing two persons listed under the destination of China from the Entity List. The two removals are the result of a request for removal received by BIS pursuant to the section of the EAR used for requesting removal or modification of an Entity List entry and a review of information provided in the removal request in accordance with the procedure for requesting removal or modification of an Entity List entity. In light of the recent settlement of administrative and criminal enforcement actions against ZTE Corporation and ZTE Kangxun, the End-User Review Committee (ERC) has determined that these two persons being removed have performed their undertakings to the U.S. Government in a timely manner and have otherwise cooperated with the U.S. Government in resolving the matter which led to the two entities' listing. This final rule also adds one person to the Entity List. This person who is added to the Entity List 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 China. Lastly, this final rule makes a conforming change to the EAR as a result of the removal of these two persons from the Entity List. DATES: This rule is effective March 29, 2017. 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, Email: [email protected]. SUPPLEMENTARY INFORMATION: Background The Entity List (Supplement No. 4 to part 744) identifies entities and other persons reasonably believed to be involved, or to pose a significant risk of being or becoming involved, in activities contrary to the national security or foreign policy interests of the United States. The EAR imposes additional license requirements on, and limits the availability of most license exceptions for, exports, reexports, and transfers (in-country) to those listed. The ``license review policy'' for each listed entity or other person 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 Federal Register notice adding entities or other persons to the Entity List. BIS places entities and other persons on the Entity List pursuant to 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. ERC Entity List Decisions Removals From the Entity List This rule implements a decision of the ERC to remove the following two entries from the Entity List: Zhongxing Telecommunications Equipment (ZTE) Corporation and ZTE Kangxun Telecommunications Ltd. These two entities were added to the Entity List on March 8, 2016 (see 81 FR 12006). The U.S. Government recently reached an agreement with ZTE Corporation and ZTE Kangxun for the settlement of administrative charges and entry of a guilty plea in a criminal case against the companies. On March 7, 2017, Secretary of Commerce Wilbur L. Ross, Jr., issued a statement regarding the settlement and guilty plea, which resulted in a very substantial monetary penalty, intrusive independent monitoring, and additional suspended penalties that will be imposed if ZTE fails to meet its obligations or further violates U.S. export controls. In light of the settlement, the ERC has determined that ZTE Corporation and ZTE Kangxun have performed their undertakings to the U.S. Government in a timely manner and have otherwise cooperated with the U.S. Government in resolving the matter which led to the two entities' listing. Therefore, the ERC has decided to remove these two entities from the Entity List. This final rule implements the decision to remove the following two entities located in China from the Entity List: China (1) Zhongxing Telecommunications Equipment (ZTE) Corporation, ZTE Plaza, Keji Road South, Hi-Tech Industrial Park, Nanshan District, Shenzhen, China; and (2) ZTE Kangxun Telecommunications Ltd., 2/3 Floor, [[Page 15459]] Suite A, ZTE Communication Mansion Keji (S) Road, Hi-New Shenzhen, 518057 China. The removal of the persons referenced above, which was approved by the ERC, eliminates the existing license requirements in Supplement No. 4 to part 744 for exports, reexports and transfers (in-country) to these entities. However, the removal of these persons from the Entity List does not relieve persons of other obligations under part 744 of the EAR or under other parts of the EAR. Neither the removal of an entity from the Entity List nor the removal of Entity List-based license requirements relieves persons of their obligations under General Prohibition 5 in Sec. 736.2(b)(5) of the EAR which provides that, ``you may not, without a license, knowingly export or reexport any item subject to the EAR to an end-user or end-use that is prohibited by part 744 of the EAR.'' Additionally, this removal does not relieve persons of their obligation to apply for export, reexport or in-country transfer licenses required by other provisions of the EAR. BIS strongly urges the use of Supplement No. 3 to part 732 of the EAR, ``BIS's `Know Your Customer' Guidance and Red Flags,'' when persons are involved in transactions that are subject to the EAR. Addition to the Entity List This rule implements the decision of the ERC to add one person to the Entity List. This person is being added 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 person added to the Entity List will be listed under the destination of China. The ERC reviewed Sec. 744.11(b) (Criteria for revising the Entity List) in making the determination to add this person to the Entity List. Under that paragraph, persons and those acting on behalf of such persons may be added to the Entity List if 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. Paragraphs (b)(1) through (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. Pursuant to Sec. 744.11(b) of the EAR, the ERC determined that this person, Shi Lirong, located in the destination of China, be added to the Entity List for actions contrary to the national security or foreign policy interests of the United States. The ERC determined that there is reasonable cause to believe, based on specific and articulable facts, that Shi Lirong has been involved in actions contrary to the national security or foreign policy interests of the United States. Specifically, Shi Lirong was the CEO of ZTE Corporation at the time the ZTE documents that contributed to ZTE's listing were signed. Shi Lirong signed and approved the document ``Report Regarding Comprehensive Reorganization and Standardization of the Company Export Control Related Matters,'' which described how ZTE planned and organized a scheme to establish, control and use a series of ``detached'' (i.e., shell) companies to illicitly reexport controlled items to Iran in violation of U.S. export control laws. Pursuant to Sec. 744.11(b) of the EAR, the ERC 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. Therefore, this person is being added to the Entity List. For this person added to the Entity List, BIS imposes a license requirement for all items subject to the EAR and a license review policy of presumption of denial. The license requirements apply to any transaction in which items 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. In addition, no license exceptions are available for exports, reexports, or transfers (in-country) to this person being added to the Entity List in this rule. This final rule adds the following person to the Entity List: China (1) Shi Lirong, Yuanzhong Garden Tower A, Room 26A, Futian, Shenzhen, China; and Xinghai Mingcheng, 2nd Floor, Shenzhen, China. Conforming EAR Change This final rule removes Supplement No. 7 to part 744--Temporary General License, which was originally added to the EAR in a final rule on March 24, 2016 (81 FR 15633). The March 24 final rule amended the EAR by adding Supplement No. 7 to part 744 to create a temporary general license that returned, until June 30, 2016, the licensing and other policies of the EAR regarding exports, reexports, and transfers (in-country) to ZTE Corporation and ZTE Kangxun to those which were in effect prior to their addition to the Entity List on March 8, 2016. BIS subsequently extended the validity date of the temporary general license on four occasions (June 28, 2016 (81 FR 41799), August 19, 2016 (81 FR 55372), November 18, 2016 (81 FR 81663), and February 24, 2017 (82 FR 11505)), resulting in the current validity end-date of March 29, 2017. As described above under the section Removals From the Entity List, this final rule removes the two entities identified in the temporary general license from the Entity List. Therefore, this final rule removes as a conforming change Supplement No. 7 to part 744 because it is no longer needed. Export Administration Act of 1979 Although the Export Administration Act of 1979 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 4, 2016, 81 FR 52587 (August 8, 2016), 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 of 1979, 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). 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 [[Page 15460]] 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 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 (APA) (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 the effective date of this rule were delayed to allow for notice and comment, then the person being added to the Entity List by this action would be able to continue receiving items subject to the EAR without a license, to the detriment of the national security and 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 him on the Entity List and would create an incentive for this person to accelerate his receipt of items subject to the EAR in order to conduct activities that are contrary to the national security or foreign policy interests of the United States, to set up additional aliases, change addresses, and/or to take other measures to try to limit the impact of the listing on the Entity List after a final rule is 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 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. 5. For the two persons removed from the Entity List in this final rule and for the conforming EAR change to remove Supplement No. 7 to part 744, BIS finds good cause, pursuant to the APA, 5 U.S.C. 553(b)(B), to waive requirements that this rule be subject to notice and the opportunity for public comment because it would be contrary to the public interest. In determining whether to grant a request for removal from the Entity List, a committee of U.S. Government agencies (the End-User Review Committee (ERC)) evaluates information about and commitments made by listed persons requesting removal from the Entity List, the nature and terms of which are set forth in 15 CFR part 744, Supplement No. 5, as noted in 15 CFR 744.16(b). The information, commitments, and criteria for this extensive review were all established through the notice of proposed rulemaking and public comment process (72 FR 31005 (June 5, 2007) (proposed rule), and 73 FR 49311 (August 21, 2008) (final rule)). These two removals have been made within the established regulatory framework of the Entity List. If the rule were to be delayed to allow for public comment, U.S. exporters may face unnecessary economic losses as they turn away potential sales to the entities removed by this rule because the customer remained a listed person on the Entity List even after the ERC approved the removal pursuant to the regulatory process established by the rule published at 73 FR 49311 on August 21, 2008. By publishing without prior notice and comment, BIS allows the applicants to receive U.S. exports immediately because the applicants already have received approval by the ERC pursuant to 15 CFR part 744, Supplement No. 5, as noted in 15 CFR 744.16(b). Removals from the Entity List granted by the ERC involve interagency deliberation and result from review of public and non- public sources, including sensitive law enforcement information and classified information, and the measurement of such information against the Entity List removal criteria. This information is extensively reviewed according to the criteria for evaluating removal requests from the Entity List, as set out in 15 CFR part 744, Supplement No. 5 and 15 CFR 744.16(b). For reasons of national security, BIS is not at liberty to provide to the public the detailed information on which the ERC relied to make the decisions to remove these entities. In addition, the information included in the removal request is information exchanged between the applicant and the ERC, which by law (section 12(c) of the Export Administration Act of 1979), BIS is restricted from sharing with the public. Moreover, removal requests from the Entity List contain confidential business information, which is necessary for the extensive review conducted by the U.S. Government in assessing such removal requests. Additionally, section 553(d) of the APA generally provides that rules may not take effect earlier than thirty (30) days after they are published in the Federal Register. BIS finds good cause to waive the 30-day delay in effectiveness under 5 U.S.C. 553(d)(1) because this rule is a substantive rule which relieves a restriction. This rule's removal of two persons from the Entity List removes requirements (the Entity-List-based license requirement and limitation on use of license exceptions) related to these two persons. No other law requires that a notice of proposed rulemaking and an opportunity for public comment be given for this final rule. Because a notice of proposed rulemaking and an opportunity for public comment are not required under the APA or by any other law, the analytical requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) are not applicable. As a result, no final 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. 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. 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 4, 2016, 81 FR 52587 (August 8, 2016); Notice of September 15, 2016, 81 FR 64343 (September 19, 2016); Notice of November 8, 2016, 81 FR 79379 (November 10, 2016); Notice of January 13, 2017, 82 FR 6165 (January 18, 2017). [[Page 15461]] 0 2. Supplement No. 4 to Part 744 is amended: 0 a. By removing, under China, two Chinese entities, ``Zhongxing Telecommunications Equipment (ZTE) Corporation, ZTE Plaza, Keji Road South, Hi-Tech Industrial Park, Nanshan District, Shenzhen, China''; and ``ZTE Kangxun Telecommunications Ltd., 2/3 Floor, Suite A, ZTE Communication Mansion Keji (S) Road, Hi-New Shenzhen, 518057 China ''; and 0 b. By adding, under China, one Chinese entity. The addition reads as follows: Supplement No. 4 to Part 744--Entity List * * * * * ---------------------------------------------------------------------------------------------------------------- License License review Federal Register Country Entity requirement policy citation ---------------------------------------------------------------------------------------------------------------- * * * * * * * CHINA, PEOPLE'S REPUBLIC OF * * * * * * * Shi Lirong, For all items Presumption of 82 FR [INSERT FR Yuanzhong Garden subject to the denial. PAGE NUMBER]; Tower A, Room EAR. (See Sec. March 29, 2017. 26A, Futian, 744.11 of the Shenzhen, China; EAR). and Xinghai Mingcheng, 2nd Floor, Shenzhen, China. * * * * * * * ---------------------------------------------------------------------------------------------------------------- Supplement No. 7 to Part 744--[Removed] 0 3. Remove Supplement No. 7 to Part 744. Dated: March 24, 2017. Matthew S. Borman, Deputy Assistant Secretary for Export Administration. [FR Doc. 2017-06227 Filed 3-28-17; 8:45 am] BILLING CODE 3510-33-P
![15458 Federal Register / Vol. 82, No. 59 / Wednesday, March 29, 2017 / Rules and Regulations
amending Q–39 and Q–67 is delayed to SUMMARY: This rule amends the Export adding entities or other persons to the
coincide with that date. Administration Regulations (EAR) by Entity List. BIS places entities and other
Area navigation routes are published removing two persons listed under the persons on the Entity List pursuant to
in paragraph 2006 of FAA Order destination of China from the Entity sections of part 744 (Control Policy:
7400.11A dated August 3, 2016, and List. The two removals are the result of End-User and End-Use Based) and part
effective September 15, 2016, which is a request for removal received by BIS 746 (Embargoes and Other Special
incorporated by reference in 14 CFR pursuant to the section of the EAR used Controls) of the EAR.
71.1. The area navigation routes listed for requesting removal or modification The End-User Review Committee
in this document will be subsequently of an Entity List entry and a review of (ERC), composed of representatives of
published in the Order. information provided in the removal the Departments of Commerce (Chair),
request in accordance with the State, Defense, Energy and, where
Good Cause for No Notice and
procedure for requesting removal or appropriate, the Treasury, makes all
Comment
modification of an Entity List entity. In decisions regarding additions to,
Section 553(b)(3)(B) of Title 5, United light of the recent settlement of removals from, or other modifications to
States Code, (the Administrative administrative and criminal the Entity List. The ERC makes all
Procedure Act) authorizes agencies to enforcement actions against ZTE decisions to add an entry to the Entity
dispense with notice and comment Corporation and ZTE Kangxun, the End- List by majority vote and all decisions
procedures for rules when the agency User Review Committee (ERC) has to remove or modify an entry by
for ‘‘good cause’’ finds that those determined that these two persons being unanimous vote.
procedures are ‘‘impracticable, removed have performed their
unnecessary, or contrary to the public ERC Entity List Decisions
undertakings to the U.S. Government in
interest.’’ Under this section, an agency, a timely manner and have otherwise Removals From the Entity List
upon finding good cause, may issue a cooperated with the U.S. Government in This rule implements a decision of
final rule without seeking comment resolving the matter which led to the the ERC to remove the following two
prior to the rulemaking. The FAA finds two entities’ listing. entries from the Entity List: Zhongxing
that prior notice and public comment to This final rule also adds one person Telecommunications Equipment (ZTE)
this final rule is unnecessary due to the to the Entity List. This person who is Corporation and ZTE Kangxun
brief length of the extension of the added to the Entity List has been Telecommunications Ltd. These two
effective date and the fact that there is determined by the U.S. Government to entities were added to the Entity List on
no substantive change to the rule. be acting contrary to the national March 8, 2016 (see 81 FR 12006).
security or foreign policy interests of the The U.S. Government recently
Delay of Effective Date
United States. This person will be listed reached an agreement with ZTE
Accordingly, pursuant to the on the Entity List under the destination Corporation and ZTE Kangxun for the
authority delegated to me, the effective of China. settlement of administrative charges and
date of the final rule, Airspace Docket Lastly, this final rule makes a
entry of a guilty plea in a criminal case
15–AEA–7, as published in the Federal conforming change to the EAR as a
against the companies. On March 7,
Register on February 27, 2017 (82 FR result of the removal of these two
2017, Secretary of Commerce Wilbur L.
11804), FR. Doc. 2017–03507, is hereby persons from the Entity List.
Ross, Jr., issued a statement regarding
delayed until October 12, 2017. DATES: This rule is effective March 29,
the settlement and guilty plea, which
Authority: 49 U.S.C. 106(f), 106(g); 40103, 2017. resulted in a very substantial monetary
40113, 40120; E.O. 10854, 24 FR 9565, 3 CFR, FOR FURTHER INFORMATION CONTACT: penalty, intrusive independent
1959–1963 Comp., P. 389. Chair, End-User Review Committee, monitoring, and additional suspended
Issued in Washington, DC, on March 22, Office of the Assistant Secretary, Export penalties that will be imposed if ZTE
2017. Administration, Bureau of Industry and fails to meet its obligations or further
M. Randy Willis, Security, Department of Commerce, violates U.S. export controls.
Acting Manager, Airspace Policy Group. Phone: (202) 482–5991, Email: ERC@ In light of the settlement, the ERC has
[FR Doc. 2017–06117 Filed 3–28–17; 8:45 am] bis.doc.gov. determined that ZTE Corporation and
BILLING CODE 4910–13–P SUPPLEMENTARY INFORMATION: ZTE Kangxun have performed their
undertakings to the U.S. Government in
Background a timely manner and have otherwise
The Entity List (Supplement No. 4 to cooperated with the U.S. Government in
DEPARTMENT OF COMMERCE part 744) identifies entities and other resolving the matter which led to the
persons reasonably believed to be two entities’ listing. Therefore, the ERC
Bureau of Industry and Security
involved, or to pose a significant risk of has decided to remove these two entities
being or becoming involved, in from the Entity List.
15 CFR Part 744
activities contrary to the national This final rule implements the
[Docket No. 170109042–7255–01] security or foreign policy interests of the decision to remove the following two
United States. The EAR imposes entities located in China from the Entity
RIN 0694–AH30 additional license requirements on, and List:
limits the availability of most license
Removal of Certain Persons From the exceptions for, exports, reexports, and China
mstockstill on DSK3G9T082PROD with RULES
Entity List; Addition of a Person to the transfers (in-country) to those listed. (1) Zhongxing Telecommunications
Entity List; and EAR Conforming The ‘‘license review policy’’ for each Equipment (ZTE) Corporation, ZTE
Change listed entity or other person is identified Plaza, Keji Road South, Hi-Tech
AGENCY: Bureau of Industry and in the License Review Policy column on Industrial Park, Nanshan District,
Security, Commerce. the Entity List and the impact on the Shenzhen, China; and
availability of license exceptions is (2) ZTE Kangxun
ACTION: Final rule.
described in the Federal Register notice Telecommunications Ltd., 2/3 Floor,
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number 0694–0088, Simplified Network regulatory flexibility analysis is required addition, the information included in
Application Processing System, which and none has been prepared. the removal request is information
includes, among other things, license 5. For the two persons removed from exchanged between the applicant and
applications and carries a burden the Entity List in this final rule and for the ERC, which by law (section 12(c) of
estimate of 43.8 minutes for a manual or the conforming EAR change to remove the Export Administration Act of 1979),
electronic submission. Total burden Supplement No. 7 to part 744, BIS finds BIS is restricted from sharing with the
hours associated with the PRA and good cause, pursuant to the APA, 5 public. Moreover, removal requests from
OMB control number 0694–0088 are not U.S.C. 553(b)(B), to waive requirements the Entity List contain confidential
expected to increase as a result of this that this rule be subject to notice and business information, which is
rule. You may send comments regarding the opportunity for public comment necessary for the extensive review
the collection of information associated because it would be contrary to the conducted by the U.S. Government in
with this rule, including suggestions for public interest. assessing such removal requests.
reducing the burden, to Jasmeet K. In determining whether to grant a
Additionally, section 553(d) of the
Seehra, Office of Management and request for removal from the Entity List,
APA generally provides that rules may
Budget (OMB), by email to Jasmeet_K._ a committee of U.S. Government
not take effect earlier than thirty (30)
Seehra@omb.eop.gov, or by fax to (202) agencies (the End-User Review
days after they are published in the
395–7285. Committee (ERC)) evaluates information
Federal Register. BIS finds good cause
3. This rule does not contain policies about and commitments made by listed
to waive the 30-day delay in
with Federalism implications as that persons requesting removal from the
effectiveness under 5 U.S.C. 553(d)(1)
term is defined in Executive Order Entity List, the nature and terms of
because this rule is a substantive rule
13132. which are set forth in 15 CFR part 744,
which relieves a restriction. This rule’s
Supplement No. 5, as noted in 15 CFR
4. The provisions of the removal of two persons from the Entity
744.16(b). The information,
Administrative Procedure Act (APA) (5 List removes requirements (the Entity-
commitments, and criteria for this
U.S.C. 553) requiring notice of proposed List-based license requirement and
extensive review were all established
rulemaking, the opportunity for public limitation on use of license exceptions)
through the notice of proposed
comment and a delay in effective date related to these two persons.
rulemaking and public comment
are inapplicable because this regulation process (72 FR 31005 (June 5, 2007) No other law requires that a notice of
involves a military or foreign affairs (proposed rule), and 73 FR 49311 proposed rulemaking and an
function of the United States. (See 5 (August 21, 2008) (final rule)). These opportunity for public comment be
U.S.C. 553(a)(1)). BIS implements this two removals have been made within given for this final rule. Because a
rule to protect U.S. national security or the established regulatory framework of notice of proposed rulemaking and an
foreign policy interests by preventing the Entity List. If the rule were to be opportunity for public comment are not
items from being exported, reexported, delayed to allow for public comment, required under the APA or by any other
or transferred (in country) to the person U.S. exporters may face unnecessary law, the analytical requirements of the
being added to the Entity List. If the economic losses as they turn away Regulatory Flexibility Act (5 U.S.C. 601
effective date of this rule were delayed potential sales to the entities removed et seq.) are not applicable. As a result,
to allow for notice and comment, then by this rule because the customer no final regulatory flexibility analysis is
the person being added to the Entity List remained a listed person on the Entity required and none has been prepared.
by this action would be able to continue List even after the ERC approved the
receiving items subject to the EAR List of Subjects in 15 CFR Part 744
removal pursuant to the regulatory
without a license, to the detriment of process established by the rule Exports, Reporting and recordkeeping
the national security and foreign policy published at 73 FR 49311 on August 21, requirements, Terrorism.
interests of the United States. In 2008. By publishing without prior
addition, publishing a proposed rule Accordingly, part 744 of the Export
notice and comment, BIS allows the
would give this party notice of the U.S. Administration Regulations (15 CFR
applicants to receive U.S. exports
Government’s intention to place him on parts 730–774) is amended as follows:
immediately because the applicants
the Entity List and would create an already have received approval by the
incentive for this person to accelerate PART 744—[AMENDED]
ERC pursuant to 15 CFR part 744,
his receipt of items subject to the EAR Supplement No. 5, as noted in 15 CFR
in order to conduct activities that are ■ 1. The authority citation for 15 CFR
744.16(b). part 744 is revised to read as follows:
contrary to the national security or Removals from the Entity List granted
foreign policy interests of the United by the ERC involve interagency Authority: 50 U.S.C. 4601 et seq.; 50 U.S.C.
States, to set up additional aliases, deliberation and result from review of 1701 et seq.; 22 U.S.C. 3201 et seq.; 42 U.S.C.
change addresses, and/or to take other 2139a; 22 U.S.C. 7201 et seq.; 22 U.S.C. 7210;
public and non-public sources,
E.O. 12058, 43 FR 20947, 3 CFR, 1978 Comp.,
measures to try to limit the impact of including sensitive law enforcement p. 179; E.O. 12851, 58 FR 33181, 3 CFR, 1993
the listing on the Entity List after a final information and classified information, Comp., p. 608; E.O. 12938, 59 FR 59099, 3
rule is published. and the measurement of such CFR, 1994 Comp., p. 950; E.O. 12947, 60 FR
Further, no other law requires that a information against the Entity List 5079, 3 CFR, 1995 Comp., p. 356; E.O. 13026,
notice of proposed rulemaking and an removal criteria. This information is 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O.
opportunity for public comment be extensively reviewed according to the 13099, 63 FR 45167, 3 CFR, 1998 Comp., p.
given for this rule. Because a notice of criteria for evaluating removal requests 208; E.O. 13222, 66 FR 44025, 3 CFR, 2001
mstockstill on DSK3G9T082PROD with RULES
proposed rulemaking and an from the Entity List, as set out in 15 CFR Comp., p. 783; E.O. 13224, 66 FR 49079, 3
opportunity for public comment are not part 744, Supplement No. 5 and 15 CFR CFR, 2001 Comp., p. 786; Notice of August
4, 2016, 81 FR 52587 (August 8, 2016); Notice
required for this rule by 5 U.S.C. 553, 744.16(b). For reasons of national of September 15, 2016, 81 FR 64343
or by any other law, the analytical security, BIS is not at liberty to provide (September 19, 2016); Notice of November 8,
requirements of the Regulatory to the public the detailed information 2016, 81 FR 79379 (November 10, 2016);
Flexibility Act, 5 U.S.C. 601 et seq., are on which the ERC relied to make the Notice of January 13, 2017, 82 FR 6165
not applicable. Accordingly, no decisions to remove these entities. In (January 18, 2017).
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![Federal Register / Vol. 82, No. 59 / Wednesday, March 29, 2017 / Rules and Regulations 15461
■ 2. Supplement No. 4 to Part 744 is and ‘‘ZTE Kangxun Supplement No. 4 to Part 744—Entity
amended: Telecommunications Ltd., 2/3 Floor, List
■ a. By removing, under China, two Suite A, ZTE Communication Mansion
Chinese entities, ‘‘Zhongxing * * * * *
Keji (S) Road, Hi-New Shenzhen,
Telecommunications Equipment (ZTE) 518057 China ’’; and
Corporation, ZTE Plaza, Keji Road ■ b. By adding, under China, one
South, Hi-Tech Industrial Park, Chinese entity.
Nanshan District, Shenzhen, China’’; The addition reads as follows:
License
Country Entity License requirement Federal Register citation
review policy
* * * * * * *
CHINA, PEOPLE’S
REPUBLIC OF
* * * * * * *
Shi Lirong, Yuanzhong Garden For all items subject to the Presumption of 82 FR [INSERT FR PAGE
Tower A, Room 26A, Futian, EAR. (See § 744.11 of the denial. NUMBER]; March 29, 2017.
Shenzhen, China; and EAR).
Xinghai Mingcheng, 2nd
Floor, Shenzhen, China.
* * * * * * *
Supplement No. 7 to Part 744— account for two persons listed under Entity List. BIS places entities and other
[Removed] more than one destination on the Entity persons on the Entity List pursuant to
List. All seven of the removals are the sections of part 744 (Control Policy:
■ 3. Remove Supplement No. 7 to Part
result of requests for removal received End-User and End-Use Based) and part
744.
by BIS pursuant to the section of the 746 (Embargoes and Other Special
Dated: March 24, 2017. EAR used for requesting removal or Controls) of the EAR.
Matthew S. Borman, modification of an Entity List entity and The ERC, composed of representatives
Deputy Assistant Secretary for Export a review of information provided in the of the Departments of Commerce
Administration. removal requests in accordance with the
(Chair), State, Defense, Energy and,
[FR Doc. 2017–06227 Filed 3–28–17; 8:45 am] procedure for requesting removal or
where appropriate, the Treasury, makes
BILLING CODE 3510–33–P modification of an Entity List entity.
all decisions regarding additions to,
DATES: This rule is effective March 29, removals from, or other modifications to
2017. the Entity List. The ERC makes all
DEPARTMENT OF COMMERCE
FOR FURTHER INFORMATION CONTACT: decisions to add an entry to the Entity
Bureau of Industry and Security Chair, End-User Review Committee, List by majority vote and all decisions
Office of the Assistant Secretary, Export to remove or modify an entry by
15 CFR Part 744 Administration, Bureau of Industry and unanimous vote.
Security, Department of Commerce,
[Docket No. 170103009–7300–02] Phone: (202) 482–5991, Email: ERC@ ERC Entity List Decisions
RIN 0694–AH28 bis.doc.gov. Removal From the Entity List
SUPPLEMENTARY INFORMATION:
Removal of Certain Persons From the This rule implements a decision of
Entity List Background the ERC to remove the following ten
AGENCY: Bureau of Industry and The Entity List (Supplement No. 4 to entries from the Entity List on the basis
Security, Commerce. part 744) identifies entities and other of removal requests received by BIS:
persons reasonably believed to be Industrio GmbH, Martin Hess, Peter
ACTION: Final rule.
involved, or to pose a significant risk of Duenker, and Wilhelm ‘‘Bill’’ Holler, all
SUMMARY: This rule amends the Export being or becoming involved, in located in Germany; Frank Genin,
Administration Regulations (EAR) by activities contrary to the national located in Hong Kong and the U.A.E.
removing seven persons under ten security or foreign policy interests of the (which accounts for two of the entries
entries from the Entity List. This rule United States. The EAR imposes this final rule removes); Beaumont
removes four persons listed under the additional license requirements on, and Trading AG, located in India,
destination of Germany, one person limits the availability of most license Switzerland, and the U.A.E. (which
listed under the destination of Hong exceptions for, exports, reexports, and accounts for three of the entries this
Kong, one person listed under the transfers (in-country) to those listed. final rule removes); and Amanda Sng,
mstockstill on DSK3G9T082PROD with RULES
destination of India, one person listed The ‘‘license review policy’’ for each located in Singapore. These seven
under the destination of Singapore, one listed entity or other person is identified persons under ten entries were added to
person listed under the destination of in the License Review Policy column on the Entity List on March 21, 2016 (see
Switzerland, and two persons under the the Entity List and the impact on the 81 FR 14958). The ERC decided to
destination of the United Arab Emirates availability of license exceptions is remove these seven persons under ten
from the Entity List. The three described in the Federal Register notice entries based on information received
additional entries are being removed to adding entities or other persons to the by BIS pursuant to § 744.16 of the EAR
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Document Created: 2017-03-29 01:14:49
Document Modified: 2017-03-29 01:14:49
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Final rule. | |
| Dates | This rule is effective March 29, 2017. | |
| 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, Email: [email protected] | |
| FR Citation | 82 FR 15458 | |
| RIN Number | 0694-AH30 | |
| CFR Associated | Exports; Reporting and Recordkeeping Requirements and Terrorism |
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