82 FR 15461 - Removal of Certain Persons From the Entity List

DEPARTMENT OF COMMERCE
Bureau of Industry and Security

Federal Register Volume 82, Issue 59 (March 29, 2017)

This rule amends the Export Administration Regulations (EAR) by removing seven persons under ten entries from the Entity List. This rule removes four persons listed under the destination of Germany, one person listed under the destination of Hong Kong, one person listed under the destination of India, one person listed under the destination of Singapore, one person listed under the destination of Switzerland, and two persons under the destination of the United Arab Emirates from the Entity List. The three additional entries are being removed to account for two persons listed under more than one destination on the Entity List. All seven of the removals are the result of requests for removal received by BIS pursuant to the section of the EAR used for requesting removal or modification of an Entity List entity and a review of information provided in the removal requests in accordance with the procedure for requesting removal or modification of an Entity List entity.

[Federal Register Volume 82, Number 59 (Wednesday, March 29, 2017)]
[Rules and Regulations]
[Pages 15461-15463]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-06228]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 744

[Docket No. 170103009-7300-02]
RIN 0694-AH28


Removal of Certain Persons From the Entity List

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This rule amends the Export Administration Regulations (EAR) 
by removing seven persons under ten entries from the Entity List. This 
rule removes four persons listed under the destination of Germany, one 
person listed under the destination of Hong Kong, one person listed 
under the destination of India, one person listed under the destination 
of Singapore, one person listed under the destination of Switzerland, 
and two persons under the destination of the United Arab Emirates from 
the Entity List. The three additional entries are being removed to 
account for two persons listed under more than one destination on the 
Entity List. All seven of the removals are the result of requests for 
removal received by BIS pursuant to the section of the EAR used for 
requesting removal or modification of an Entity List entity and a 
review of information provided in the removal requests in accordance 
with the procedure for requesting removal or modification of an Entity 
List entity.

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 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

Removal From the Entity List

    This rule implements a decision of the ERC to remove the following 
ten entries from the Entity List on the basis of removal requests 
received by BIS: Industrio GmbH, Martin Hess, Peter Duenker, and 
Wilhelm ``Bill'' Holler, all located in Germany; Frank Genin, located 
in Hong Kong and the U.A.E. (which accounts for two of the entries this 
final rule removes); Beaumont Trading AG, located in India, 
Switzerland, and the U.A.E. (which accounts for three of the entries 
this final rule removes); and Amanda Sng, located in Singapore. These 
seven persons under ten entries were added to the Entity List on March 
21, 2016 (see 81 FR 14958). The ERC decided to remove these seven 
persons under ten entries based on information received by BIS pursuant 
to Sec.  744.16 of the EAR

[[Page 15462]]

and further review conducted by the ERC.
    This final rule implements the decision to remove the following 
four entities located in Germany, one entity located in Hong Kong, one 
entity located in India, one entity located in Singapore, one entity 
located in Switzerland, and two entities located in the U.A.E. from the 
Entity List:

Germany

    (1) Industrio GmbH, Dreichlinger Street 79, Neumarkt, 92318 
Germany;
    (2) Martin Hess, Dreichlinger Street 79, Neumarkt, 92318 Germany;
    (3) Peter Duenker, a.k.a., the following alias: -Peter Dunker. 
Dreichlinger Street 79, Neumarkt, 92318 Germany; and
    (4) Wilhelm ``Bill'' Holler, Dreichlinger Street 79, Neumarkt, 
92318 Germany.

Hong Kong

    (1) Frank Genin, a.k.a., the following one alias: -Franck Genin. RM 
1905, 19/F, Nam Wo Hong Bldg., 148 Wing Lok Street, Sheung Wang, Hong 
Kong (See alternate addresses under U.A.E.).

India

    (1) Beaumont Trading AG, a.k.a., the following one alias: -Beaumont 
Tradex India. 412 World Trade Center, Conaught Place, New Delhi--
110001, India; and 4th Floor Statesman House Building, Barakhamba Road, 
New Delhi 11001, India; and Express Towers, 1st Floor, Express 
Building, 9-10 Bahadurshah Zafar Marg, New Delhi-12, India (See 
alternate addresses under Switzerland and U.A.E.).

Singapore

    (1) Amanda Sng, 211 Henderson Road, #13-02 Henderson Industrial 
Park, Singapore 159552.

Switzerland

    (1) Beaumont Trading AG, a.k.a., the following one alias: -Beaumont 
Tradex India. Haldenstrasse 5, Baar (Zug Canton), CH 6342 Switzerland 
(See alternate addresses in India and the U.A.E.).

United Arab Emirates

    (1) Beaumont Trading AG, a.k.a., the following one alias: -Beaumont 
Tradex India. DMCC Business Center, 49 Almas Tower--JLT Dubai, U.A.E. 
(See alternate addresses in India and Switzerland); and
    (2) Frank Genin, a.k.a., the following one alias: -Franck Genin. 
Villa No. 6 AL WASL RD, 332/45b Jumeira 1, Dubai, Dubai 25344, U.A.E.; 
and Suite 608 Atrium Center, Bank St., Bur Dubai, Dubai, U.A.E., P.O. 
Box 16048; and Suite 706 Atrium Center Bank Street Bur Dubai, Dubai 
U.A.E.; and P.O. Box 10559 Ras Al Khaimah, U.A.E.; and P.O. Box 25344 
Bur Dubai, Dubai, U.A.E.; and 2nd Floor, #202 Sheik Zayed Road Dubai 
POB 25344 U.A.E.; and P.O. Box 28515, Dubai, U.A.E.; and 202 B Sama 
Tower Sheikh Tayed Road #3 Dubai, U.A.E. P.O. Box 16048; and BC2-414, 
RAK Free Trade Zone P.O. Box 16048 Ras Al Khaimah, U.A.E.; and G1/RAK 
Free Trade Zone RAK--U.A.E.; and G-17 Sheikh Tayed Road #3 Ras Al 
Khaimah Free Trade Zone, Dubai, U.A.E. (See alternate address under 
Hong Kong).
    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.

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). 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 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. For the seven persons under ten entries removed from the Entity 
List in this final rule, pursuant to the Administrative Procedure Act 
(APA), 5 U.S.C. 553(b)(B), BIS finds good cause 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

[[Page 15463]]

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 seven removals under ten 
entries 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 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 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.
    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 
seven persons under ten entries from the Entity List removes 
requirements (the Entity-List-based license requirement and limitation 
on use of license exceptions) on these seven persons being removed from 
the Entity List. The rule does not impose a requirement on any other 
person for these removals from the Entity List.
    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).

Supplement No. 4 to Part 744--[Amended]

0
2. Supplement No. 4 to Part 744 is amended:
0
a. By removing, under Germany, four German entities, ``Industrio GmbH, 
Dreichlinger Street 79, Neumarkt, 92318 Germany''; ``Martin Hess, 
Dreichlinger Street 79, Neumarkt, 92318 Germany''; ``Peter Duenker, 
a.k.a., the following alias: -Peter Dunker. Dreichlinger Street 79, 
Neumarkt, 92318 Germany''; and ``Wilhelm ``Bill'' Holler, Dreichlinger 
Street 79, Neumarkt, 92318 Germany'';
0
b. By removing, under Hong Kong, one Hong Kong entity, ``Frank Genin, 
a.k.a., the following one alias: -Franck Genin. RM 1905, 19/F, Nam Wo 
Hong Bldg., 148 Wing Lok Street, Sheung Wang, Hong Kong (See alternate 
addresses under U.A.E.)'';
0
c. By removing, under India, one Indian entity, ``Beaumont Trading AG, 
a.k.a., the following one alias: -Beaumont Tradex India. 412 World 
Trade Center, Conaught Place, New Delhi--110001, India; and 4th Floor 
Statesman House Building, Barakhamba Road, New Delhi 11001, India; and 
Express Towers, 1st Floor, Express Building, 9-10 Bahadurshah Zafar 
Marg, New Delhi-12, India (See alternate addresses under Switzerland 
and U.A.E.)'';
0
d. By removing, under Singapore, one Singaporean entity, ``Amanda Sng, 
211 Henderson Road, #13-02 Henderson Industrial Park, Singapore 
159552'';
0
e. By removing under Switzerland, one Swiss entity, ``Beaumont Trading 
AG, a.k.a., the following one alias: -Beaumont Tradex India. 
Haldenstrasse 5, Baar (Zug Canton), CH 6342 Switzerland (See alternate 
addresses in India and the U.A.E.)''; and
0
 f. By removing under the United Arab Emirates, two Emirati entities, 
``Beaumont Trading AG, a.k.a., the following one alias: -Beaumont 
Tradex India. DMCC Business Center, 49 Almas Tower--JLT Dubai, U.A.E. 
(See alternate addresses in India and Switzerland)''; and ``Frank 
Genin, a.k.a., the following one alias: -Franck Genin. Villa No. 6 AL 
WASL RD, 332/45b Jumeira 1, Dubai, Dubai 25344, U.A.E.; and Suite 608 
Atrium Center, Bank St., Bur Dubai, Dubai, U.A.E., P.O. Box 16048; and 
Suite 706 Atrium Center Bank Street Bur Dubai, Dubai U.A.E.; and P.O. 
Box 10559 Ras Al Khaimah, U.A.E.; and P.O. Box 25344 Bur Dubai, Dubai, 
U.A.E.; and 2nd Floor, #202 Sheik Zayed Road Dubai POB 25344 U.A.E.; 
and P.O. Box 28515, Dubai, U.A.E.; and 202 B Sama Tower Sheikh Tayed 
Road #3 Dubai, U.A.E. P.O.Box 16048; and BC2-414, RAK Free Trade Zone 
P.O. Box 16048 Ras Al Khaimah, U.A.E.; and G1/RAK Free Trade Zone RAK--
U.A.E.; and G-17 Sheikh Tayed Road #3 Ras Al Khaimah Free Trade Zone, 
Dubai, U.A.E. (See alternate address under Hong Kong)''.

    Dated: March 24, 2017.
Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 2017-06228 Filed 3-28-17; 8:45 am]
 BILLING CODE 3510-33-P