82 FR 60304 - Addition of Certain Entities to the Entity List

DEPARTMENT OF COMMERCE
Bureau of Industry and Security

Federal Register Volume 82, Issue 243 (December 20, 2017)

This rule amends the Export Administration Regulations (EAR) by adding two entities to the Entity List. The two entities being added to the Entity List have been determined by the U.S. Government to be acting contrary to the national security or foreign policy interests of the United States. These two entities will be listed on the Entity List under the destination of Russia.

[Federal Register Volume 82, Number 243 (Wednesday, December 20, 2017)]
[Rules and Regulations]
[Pages 60304-60306]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-27388]



[[Page 60304]]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 744

[Docket No. 140908761-7999-02]
RIN 0694--AG29


Addition of Certain Entities to the Entity List

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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SUMMARY: This rule amends the Export Administration Regulations (EAR) 
by adding two entities to the Entity List. The two entities being added 
to the Entity List have been determined by the U.S. Government to be 
acting contrary to the national security or foreign policy interests of 
the United States. These two entities will be listed on the Entity List 
under the destination of Russia.

DATES: This rule is effective December 20, 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 of the Export 
Administration Regulations (EAR)) 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 document 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 
decisions to add an entry to the Entity List by majority vote and 
decisions to remove or modify an entry by unanimous vote. The 
Departments represented on the ERC have approved these changes to the 
Entity List.

ERC Entity List Decisions

Additions to the Entity List

    This rule implements the decision of the ERC to add two entities to 
the Entity List. These two entities are 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 two entries added to the Entity List 
consist of two entities located in Russia.
    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, that they have been involved, are 
involved, or pose a significant risk of being or becoming involved in, 
activities that are contrary to the national security or foreign policy 
interests of the United States and those acting on behalf of such 
persons may be added to the Entity List. Paragraphs (b)(1) through 
(b)(5) of Sec.  744.11 provide an illustrative list of activities that 
could be contrary to the national security or foreign policy interests 
of the United States.
    BIS, pursuant to Section 744.11(b) of the EAR, and in consultation 
with the Departments of State, Defense, Energy and the Treasury, has 
designated the two persons, located in the Russian Federation, to be 
added to the Entity List for actions contrary to the national security 
or foreign policy interests of the United States. Specifically, these 
entities produced, for the Russian Federation Ministry of Defense, a 
ground-launched cruise missile system, and associated transporter-
erector-launcher, with a range prohibited by the Intermediate-Range 
Nuclear Forces Treaty. Both the Russian Federation and the United 
States are party to the INF Treaty. Therefore, there is reasonable 
cause to believe, based on specific and articulable facts, that Joint 
Stock Company Experimental Design Bureau Novator, and Joint Stock 
Company Federal Scientific and Production Center Titan-Barrikady have 
been involved in actions contrary to the national security or foreign 
policy interests of the United States.
    The prior review of exports, reexports or transfers (in-country) of 
all items subject to the EAR involving these persons, and the possible 
imposition of license conditions or license denials on shipments to the 
persons, will enhance BIS's ability to prevent use of items subject to 
the EAR contrary to U.S. national security or foreign policy interests.
    For the two persons 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 either of the persons or in which such 
persons act as purchaser, intermediate consignee, ultimate consignee, 
or end-user. In addition, no license exceptions are available for 
exports, reexports, or transfers (in-country) to the persons being 
added to the Entity List in this rule. The acronym ``a.k.a.'' (also 
known as) is used in entries on the Entity List to identify aliases and 
help exporters, reexporters and transferors to better identify persons 
on the Entity List.
    This final rule adds the following two entities to the Entity List:

Russia

    (1) Joint Stock Company Experimental Design Bureau Novator, a.k.a., 
the following two aliases:

--Novator Design Bureau; and
--JSC OKB Novator.

    18 Prospekt Kosmonavtov, 620017 Yekaterinburg, Russia; and
    (2) Joint Stock Company Federal Scientific and Production Center 
Titan-Barrikady, a.k.a., the following three aliases:

--Federal Research and Production Center Titan Barrikady JSC;
--Titan Design Bureau; and
--JSC FNPTS Titan-Barrikady.

    Prospekt Imeni V.I. Lenina, b/n 400071, Volgograd, Russia.

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 15, 2017, 82 FR 39005 (August 16, 2017), 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

[[Page 60305]]

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. This rule is not an Executive Order 
13771 regulatory action because this rule is not significant under 
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 two persons added to the Entity List in this final rule, 
the provisions of the Administrative Procedure Act (5 U.S.C. 553) 
requiring notice of proposed rulemaking, the opportunity for public 
participation and a 30-day delay in effective date are inapplicable 
because this regulation involves a military or foreign affairs function 
of the United States (5 U.S.C. 553(a)(1)). BIS implementation of this 
rule is necessary to protect U.S. national security or foreign policy 
interests by preventing items from being exported, reexported, or 
transferred (in-country) to the persons being added to the Entity List. 
If this rule were delayed to allow for notice and comment and a delay 
in effective date, the entities being added to the Entity List by this 
action would continue to be able to receive items without a license and 
to conduct activities contrary to the national security or foreign 
policy interests of the United States. In addition, publishing a 
proposed rule would give these parties notice of the U.S. Government's 
intention to place them on the Entity List, which could create an 
incentive for these persons to 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, including 
taking 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 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 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 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 January 13, 2017, 82 FR 6165 
(January 18, 2017); 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).

0
2. Supplement No. 4 to part 744 is amended by adding under Russia, two 
Russian entities.
    The additions 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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                                                  * * * * * * *
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RUSSIA.................                                         * * * * * *
                        ----------------------------------------------------------------------------------------
                         Joint Stock Company           For all items        Presumption of     82 FR [INSERT FR
                          Experimental Design Bureau    subject to the       denial.            PAGE NUMBER],
                          Novator, a.k.a., the          EAR. (See Sec.                          December 12/20/
                          following two aliases:        744.11 of the                           17.
                         --Novator Design Bureau; and   EAR).
                         --JSC OKB Novator.
                         18 Prospekt Kosmonavtov,
                          620017 Yekaterinburg,
                          Russia.

[[Page 60306]]

 
                         Joint Stock Company Federal   For all items        Presumption of     82 FR [INSERT FR
                          Scientific and Production     subject to the       denial.            PAGE NUMBER], 12/
                          Center Titan-Barrikady,       EAR. (See Sec.                          20/17.
                          a.k.a., the following three   744.11 of the
                          aliases:                      EAR).
                         --Federal Research and
                          Production Center Titan
                          Barrikady JSC;
                         --Titan Design Bureau; and
                         --JSC FNPTS Titan-Barrikady.
                         Prospekt Imeni V.I. Lenina,
                          b/n 400071, Volgograd,
                          Russia.
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    Dated: December 15, 2017.
Richard E. Ashooh,
Assistant Secretary for Export Administration.
[FR Doc. 2017-27388 Filed 12-19-17; 8:45 am]
 BILLING CODE 3510-33-P