83 FR 48532 - Addition of Certain Entities to the Entity List, Revision of an Entry on the Entity List and Removal of an Entity From the Entity List

DEPARTMENT OF COMMERCE
Bureau of Industry and Security

Federal Register Volume 83, Issue 187 (September 26, 2018)

Page Range		48532-48537
FR Document		2018-20954

This final rule amends the Export Administration Regulations (EAR) by adding fourteen entities to the Entity List. These fourteen entities have been determined by the U.S. Government to be acting contrary to the national security or foreign policy interests of the United States and will be listed on the Entity List under the destinations of Belarus, Iran, Russia, and Singapore. This rule also modifies one entry on the Entity List under the destination of the United Arab Emirates. Lastly, this rule removes one entity under the destination of Hong Kong from the Entity List. The removal is made in connection with a request for removal BIS received pursuant to the EAR and a review of information provided in that request.

Federal Register, Volume 83 Issue 187 (Wednesday, September 26, 2018)

[Federal Register Volume 83, Number 187 (Wednesday, September 26, 2018)]
[Rules and Regulations]
[Pages 48532-48537]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2018-20954]

[[Page 48532]]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 744

[Docket No. 180910826-8826-01]
RIN 0694-AH63

Addition of Certain Entities to the Entity List, Revision of an
Entry on the Entity List and Removal of an Entity From the Entity List

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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SUMMARY: This final rule amends the Export Administration Regulations
(EAR) by adding fourteen entities to the Entity List. These fourteen
entities have been determined by the U.S. Government to be acting
contrary to the national security or foreign policy interests of the
United States and will be listed on the Entity List under the
destinations of Belarus, Iran, Russia, and Singapore. This rule also
modifies one entry on the Entity List under the destination of the
United Arab Emirates. Lastly, this rule removes one entity under the
destination of Hong Kong from the Entity List. The removal is made in
connection with a request for removal BIS received pursuant to the EAR
and a review of information provided in that request.

DATES: This rule is effective September 26, 2018.

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: ERC@bis.doc.gov.

SUPPLEMENTARY INFORMATION:

Background

The Entity List (15 CFR, Subchapter C, part 744, Supplement No. 4)
identifies entities 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 Export Administration Regulations (EAR) (15 CFR, Subchapter
C, parts 730-774) imposes additional license requirements on, and
limits the availability of most license exceptions for, exports,
reexports, and transfers (in-country) to listed entities. The license
review policy for each listed entity 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 relevant Federal
Register notice adding entities to the Entity List. BIS places entities
on the Entity List pursuant to 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
makes all decisions to remove or modify an entry by unanimous vote.

ERC Entity List Decisions

Additions to the Entity List

This rule implements the decision of the ERC to add fourteen
entities to the Entity List. The addition of these fourteen entities
involves sixteen Entity List entries, as one of the entities being
added has locations in three destinations. The fourteen entities are
being added based on 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 sixteen entries consist
of two entries located in Belarus, one entry located in Iran, twelve
entries located in Russia and one entry located in Singapore.
The ERC reviewed Sec. 744.11(b) (Criteria for revising the Entity
List) in making the determination to add these fourteen entities to the
Entity List. Under that paragraph, 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, along with
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. For each of
the fourteen entities described below, the ERC made the requisite
determination under the standard set forth in Sec. 744.11(b).
Pursuant to Sec. 744.11(b) of the EAR, the ERC determined that
Nilco Group, located in Belarus, Iran, and Russia, and Mohammad Najafi,
located in Belarus, be added to the Entity List based on their
involvement in providing material support to Iranian missile programs.
The ERC also determined that four commercial companies--Joint Stock
Company Scientific-Research Institute ``Vektor'', Open Joint Stock
Company Information Technology and Communication Systems, Federal State
Unitary Enterprise Scientific Production Enterprise ``GAMMA'', and
Syrus Systems--located in Russia be added to the Entity List. These
entities have enabled the activities of malicious Russian cyber actors.
In addition, the ERC determined that two entities, Divetechnoservices
and Oceanos, be added to the Entity List under the destination of
Russia for providing equipment and support to the Russian Navy. The ERC
also determined that five entities--AeroComposit; Obinsk Research and
Production Enterprise (ORPE), Open Joint Stock Company Aviadvigatel,
Open Joint Stock Company Scientific and Production Corporation of
Precision Instruments Engineering (NPK-SPP), and Voronezh Scientific
Research Institute ``Vega''--be added to the Entity List for supporting
Russian military aerospace production activities.
Under the destination of Singapore, the ERC determined that one
entity, All Industrial Manufacturing (AIM) Pte Ltd., be added to the
Entity List based on its involvement in the proliferation of
unsafeguarded nuclear activities.
Pursuant to Sec. 744.11(b) of the EAR, the ERC determined that the
conduct of these fourteen entities raises sufficient concern that prior
review of exports, reexports or transfers (in-country) of all items
subject to the EAR involving these entities, and the possible
imposition of license conditions or license denials on shipments to the
persons, will enhance BIS's ability to prevent violations of the EAR.
For thirteen of the fourteen entities described above that are
being 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. For All Industrial Manufacturing (AIM) Pte Ltd, the entity
added under Singapore, BIS imposes a license requirement for all items
subject to the EAR and will exercise the license review policy set
forth in subpart (d) of EAR Sec. 744.2, a nuclear end-user and end-use
based provision. For all fourteen entities, the license requirements
apply to any transaction in which items are to be exported, reexported,
or transferred (in-country) to any of the entities or in which such
entities act as purchaser, intermediate consignee, ultimate consignee,
or end-user. In addition, no

[[Page 48533]]

license exceptions are available for exports, reexports, or transfers
(in-country) to the entities 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, thereby assisting exporters,
reexporters and transferors in identifying entities on the Entity List.
This final rule adds the following fourteen entities to the Entity
List, including one entity listed under three entries:

Belarus

(1) Mohammad Ghassem Najafi,
Unit 705, No. 103, Potbediteley Ave., Minsk, Belarus; and
(2) Nilco Group, a.k.a., the following one alias:

--Nilfam Khazar Co.

Unit 705, No. 103, Potbediteley Ave., Minsk, Belarus (see alternate
addresses under Iran and Russia).

Iran

(1) Nilco Group, a.k.a., the following one alias:

--Nilfam Khazar Co.

Unit 6, No. 1, Mehr Alley, Gilan St., Boostan 2, Pasdaran Ave.,
Tehran, Iran (see alternate addresses under Belarus and Russia).

Russia

(1) AeroComposit,
Antonova Prospekt 1, Zavolzhsky District, Ulyanovsk, 432072,
Russia;
(2) Divetechnoservices, a.k.a., the following five aliases:

--OOO Divetechnoservice;
--OOO Daivtekhnoservis;
--OOO Dayvtekhnoservis;
--OOO NPP DTS; and
--OOO DTS.

Ulitsa Zheleznovodskaya, 18/2 Litera A, Saint Petersburg, 199155,
Russia;
(3) Federal State Unitary Enterprise Scientific Production
Enterprise ``GAMMA'',
Ul. Profsoyuznaya d. 78 str. 4, Moscow, 117393, Russia;
(4) Joint Stock Company Scientific-Research Institute ``Vektor'',
Ul. Akademika Pavlova, d. 14-A, Saint Petersburg, 197376, Russia;
(5) Nilco Group, a.k.a., the following one alias:

--Nilfam Khazar Co.

Unit 439, 2 Mozhayskoe Road, Moscow, Russia (see alternate
addresses under Belarus and Iran);
(6) Obinsk Research and Production Enterprise (ORPE), a.k.a., the
following three aliases:

--ORPE Technologiya;
--ONPP Technologiya; and
--Obinsk Composite Materials Plant.

Kievskoe Shosse 15, Obinsk, 249031, Russia;
(7) Oceanos,
19/2 Esenina Street, Saint Petersburg, 194295, Russia; and 16/2 A-H
Engelsa Prospekt, Saint Petersburg, 195156, Russia;
(8) Open Joint Stock Company Aviadvigatel, a.k.a., the following
one alias:

--AVI.

Komsomolsky Prospekt 93, Perm, 614990, Russia;
(9) Open Joint Stock Company Information Technology and
Communication Systems, a.k.a., the following two aliases:

--OJSC Infoteks; and
--OJSC Infotecs.

Proezd Petrovsko-Razumovski Star, d. 1/23 str. 1 Business Center
``Vympel,'' Moscow, 127287, Russia;
(10) Open Joint Stock Company Scientific and Production Corporation
of Precision Instruments Engineering (NPK-SPP), a.k.a., the following
one alias:

--OJC RPC PSI.

Aviamotornaya Ulitsa 53, Moscow, 111024, Russia;
(11) Syrus Systems,
3-Y Novyy Pereulok, 5, Moscow, 107140, Russia; and
(12) Voronezh Scientific Research Institute ``Vega'', a.k.a., the
following two aliases:

--Voronezhskiy Nauchno-Issledovatelskiy Institut ``Vega''; and
--VNII ``Vega''.

Moskovskiy Prospekt 7B, Voronezh, 394026, Russia.

Singapore

(1) All Industrial Manufacturing (AIM) Pte Ltd.,
4 Kaki Bukit Ave 1, #02-05, 417939, Singapore.

Modifications to the Entity List

This final rule implements the decision of the ERC to modify one
existing entry, AdCom Systems, which was added to the Entity List under
the destination of the United Arab Emirates on March 21, 2016 (81 FR
14958) for attempting to export Missile Technology Control Regime
(MTCR) Category I unmanned aerial vehicles to countries that are not
MTCR members. The ERC determined that AdCom Systems has been using two
aliases, Sky Global Communications and Sky Global Communications
Systems. Consequently, BIS is revising the entry for AdCom Systems by
adding two aliases and a new address.
This final rule makes the following modifications to one entry on
the Entity List:

United Arab Emirates

(1) AdCom Systems, a.k.a., the following two aliases:

--Sky Global Communications; and
--Sky Global Communication Systems.

Industrial City of Abu Dhabi--ICAD1, Mussafah, Abu Dhabi, UAE; and
#2 Mezzanine Level, Block 19, Sharq 40 Al Morour Street, Abu Dhabi
Island, Abu Dhabi, UAE.

Removal From the Entity List

This rule implements a decision of the ERC to remove Antony
Emmanuel, an entity located in Hong Kong, from the Entity List on the
basis of a removal request. The entry for Antony Emmanuel was added to
the Entity List on October 22, 2008 (73 FR 54505). The ERC decided to
remove this entry based on information BIS received pursuant to Sec.
744.16 of the EAR and the review the ERC conducted in accordance with
procedures described in Supplement No. 5 to part 744.
This final rule implements the decision to remove the following
entity located in Hong Kong from the Entity List:

Hong Kong

(1) Antony Emmanuel,
No. 3 & 4, 12F Commercial VIP Building, 112-116 Canton Rd., Tsim
Sha Tsui, Hong Kong.

Savings Clause

Shipments of items removed from eligibility for a License Exception
or for 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 September 26, 2018, 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 Control Reform Act of 2018

On August 13, 2018, the President signed into law the John S.
McCain National Defense Authorization Act for Fiscal Year 2019, which
included the Export Control Reform Act of 2018 (ECRA) (Title XVII,
Subtitle B of Pub. L. 115-232), which provides the legal basis for
BIS's principal authorities and serves as the authority under which BIS
issues this rule. As set forth in Sec. 1768 of ECRA, all delegations,
rules, regulations, orders, determinations, licenses, or other forms of

[[Page 48534]]

administrative action that have been made, issued, conducted, or
allowed to become effective under the Export Administration Act of 1979
(50 U.S.C. 4601 et seq.) (as in effect prior to August 13, 2018 and as
continued in effect pursuant to the International Emergency Economic
Powers Act (50 U.S.C. 1701 et seq.) and 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 8, 2018, 83 FR 39871 (August 13,
2018)), or the Export Administration Regulations, and are in effect as
of August 13, 2018, shall continue in effect according to their terms
until modified, superseded, set aside, or revoked under the authority
of ECRA.

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 or 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
Jasmeet_K._Seehra@omb.eop.gov, 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. Pursuant to Sec. 1762 of the Export Control Reform Act of 2018
(Title XVII, Subtitle B of Pub. L. 115-232), which was included in the
John S. McCain National Defense Authorization Act for Fiscal Year 2019,
this action is exempt from the Administrative Procedure Act (5 U.S.C.
553) requirements for notice of proposed rulemaking, opportunity for
public participation, and delay in effective date.
5. This action involves the removal of an entity from the Entity
List. Removals from the Entity List involve interagency deliberation
and result from review of public and non-public sources, including,
where applicable, sensitive law enforcement information and classified
information, and the measurement of such information against the Entity
List removal criteria. This information is reviewed according to the
procedures and criteria for evaluating removal requests from the Entity
List, as set forth in 15 CFR 744.11, 15 CFR 744.16, and 15 CFR part
744, Supplement No. 5. For reasons of national security, BIS is not at
liberty to provide to the public detailed information on which the ERC
relies to make the decisions to remove these entities. In addition, the
information included in a removal request is exchanged between the
applicant and the ERC, which by law (Sec. 1761(h) of the ECRA), BIS is
restricted from sharing with the public. Moreover, removal requests
from the Entity List may contain confidential business information that
is necessary for the extensive review conducted by the ERC.
6. 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: Pub. L. 115-232, Title XVII, Subtitle B. 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 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); Notice of August 8, 2018,
83 FR 39871 (August 13, 2018).

0
2. Supplement No. 4 to part 744 is amended:
0
a. Under Belarus, by adding in alphabetical order, two Belarusian
entities, ``Mohammad Ghassem Najafi'' and ``Nilco Group'';
0
b. Under Hong Kong, by removing one Hong Kong entity, ``Antony
Emmanuel, No. 3 & 4, 12F Commercial VIP Building, 112-116 Canton Rd.,
Tsim Sha Tsui, Hong Kong'';
0
c. Under Iran, by adding in alphabetical order, one Iranian entity,
``Nilco Group'';
0
d. Under Russia, by adding in alphabetical order, twelve Russian
entities, ``AeroComposit,'' '' Divetechnoservices,'' ``Federal State
Unitary Enterprise Scientific Production Enterprise ``GAMMA'',''
``Joint Stock Company Scientific-Research Institute ``Vektor'',''
``Nilco Group,'' ``Obinsk Research and Production Enterprise (ORPE),''
``Oceanos,'' ``Open Joint Stock Company Aviadvigatel,'' ``Open Joint
Stock Company Information Technology and Communication Systems,''
``Open Joint Stock Company Scientific and Production Corporation of
Precision Instruments Engineering (NPK-SPP),'' ``Syrus Systems,'' and
``Voronezh Scientific Research Institute ``Vega'' '';
0
e. Under Singapore, by adding in alphabetical order, one Singaporean
entity, ``All Industrial Manufacturing (AIM) Pte Ltd.'';
0
f. Under the United Arab Emirates, by revising Emirati entity, ``AdCom
Systems''.
The additions and revisions read as follows:

[[Page 48535]]

Supplement No. 4 to Part 744--Entity List
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License License review Federal Register
Country Entity requirement policy citation
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* * * * * * *
----------------------------------------------------------------------------------------------------------------
BELARUS................ * * * * * *
Mohammad Ghassem Najafi, For all items Presumption of 83 FR [INSERT FR
Unit 705, No. 103, subject to the denial. PAGE NUMBER 9/26/
Potbediteley Ave., Minsk, EAR. (See Sec. 2018].
Belarus. 744.11 of the
EAR.)
* * * * * *
Nilco Group, a.k.a., the For all items Presumption of 83 FR [INSERT FR
following one alias: subject to the denial. PAGE NUMBER 9/26/
--Nilfam Khazar Co. EAR. (See Sec. 2018].
Unit 705, No. 103, 744.11 of the
Potbediteley Ave., Minsk, EAR.)
Belarus (see alternate
addresses under Iran and
Russia.)
* * * * * *
----------------------------------------------------------------------------------------------------------------

* * * * * * *
----------------------------------------------------------------------------------------------------------------
IRAN................... * * * * * *
Nilco Group, a.k.a., the For all items Presumption of 83 FR [INSERT FR
following one alias: subject to the denial. PAGE NUMBER 9/26/
--Nilfam Khazar Co. EAR. (See Sec. 2018].
Unit 6, No. 1, Mehr Alley, 744.11 of the
Gilan St., Boostan 2, EAR.)
Pasdaran Ave., Tehran, Iran
(see alternate addresses
under Belarus and Russia).
* * * * * *
----------------------------------------------------------------------------------------------------------------

* * * * * * *
----------------------------------------------------------------------------------------------------------------
RUSSIA................. * * * * * *
AeroComposit, Antonova For all items Presumption of 83 FR [INSERT FR
Prospekt 1, Zavolzhsky subject to the denial. PAGE NUMBER 9/26/
District, Ulyanovsk, EAR. (See Sec. 2018].
432072, Russia. 744.11 of the
EAR.)
* * * * * *
Divetechnoservices, a.k.a., For all items Presumption of 83 FR [INSERT FR
the following five aliases: subject to the denial. PAGE NUMBER 9/26/
--OOO Divetechnoservice; EAR. (See Sec. 2018].
--OOO Daivtekhnoservis; 744.11 of the
--OOO Dayvtekhnoservis; EAR.)
--OOO NPP DTS; and
--OOO DTS.
Ulitsa Zheleznovodskaya, 18/
2 Litera A, Saint
Petersburg, 199155, Russia.
* * * * * *
Federal State Unitary For all items Presumption of 83 FR [INSERT FR
Enterprise Scientific subject to the denial. PAGE NUMBER 9/26/
Production Enterprise EAR. (See Sec. 2018].
``GAMMA'', Ul. 744.11 of the
Profsoyuznaya d. 78 str. 4, EAR.)
Moscow, 117393, Russia.
* * * * * *
Joint Stock Company For all items Presumption of 83 FR [INSERT FR
Scientific-Research subject to the denial. PAGE NUMBER 9/26/
Institute ``Vektor'', Ul. EAR. (See Sec. 2018].
Akademika Pavlova, d. 14-A, 744.11 of the
Saint Petersburg, 197376, EAR.)
Russia.
* * * * * *
Nilco Group, a.k.a., the For all items Presumption of 83 FR [INSERT FR
following one alias: subject to the denial. PAGE NUMBER 9/26/
--Nilfam Khazar Co. EAR. (See Sec. 2018].
Unit 439, 2 Mozhayskoe Road, 744.11 of the
Moscow, Russia (see EAR.)
alternate addresses under
Belarus and Iran).
* * * * * *

[[Page 48536]]

Obinsk Research and For all items Presumption of 83 FR [INSERT FR
Production Enterprise subject to the denial. PAGE NUMBER 9/26/
(ORPE), a.k.a., the EAR. (See Sec. 2018].
following three aliases: 744.11 of the
--ORPE Technologiya; EAR.)
--ONPP Technologiya; and
--Obinsk Composite Materials
Plant.
Kievskoe Shosse 15, Obinsk,
249031, Russia.
* * * * * *
Oceanos, 19/2 Esenina For all items Presumption of 83 FR [INSERT FR
Street, Saint Petersburg, subject to the denial. PAGE NUMBER 9/26/
194295, Russia; and 16/2 A- EAR. (See Sec. 2018].
H Engelsa Prospekt, Saint 744.11 of the
Petersburg, 195156, Russia. EAR.)
* * * * * *
Open Joint Stock Company For all items Presumption of 83 FR [INSERT FR
Aviadvigatel, a.k.a., the subject to the denial. PAGE NUMBER 9/26/
following one alias: EAR. (See Sec. 2018].
--AVI. 744.11 of the
Komsomolsky Prospekt 93, EAR.)
Perm, 614990, Russia.
* * * * * *
Open Joint Stock Company For all items Presumption of 83 FR [INSERT FR
Information Technology and subject to the denial. PAGE NUMBER 9/26/
Communication Systems, EAR. (See Sec. 2018].
a.k.a., the following two 744.11 of the
aliases: EAR.)
--OJSC Infoteks; and
--OJSC Infotecs.
Proezd Petrovsko-Razumovski
Star, d. 1/23 str. 1
Business Center ``Vympel,''
Moscow, 127287, Russia.
* * * * * *
Open Joint Stock Company For all items Presumption of 83 FR [INSERT FR
Scientific and Production subject to the denial. PAGE NUMBER 9/26/
Corporation of Precision EAR. (See Sec. 2018].
Instruments Engineering 744.11 of the
(NPK-SPP), a.k.a., the EAR.)
following one alias:
--OJC RPC PSI.
Aviamotornaya Ulitsa 53,
Moscow, 111024, Russia.
* * * * * *
Syrus Systems, 3-Y Novyy For all items Presumption of 83 FR [INSERT FR
Pereulok, 5, Moscow, subject to the denial. PAGE NUMBER 9/26/
107140, Russia. EAR. (See Sec. 2018].
744.11 of the
EAR.)
* * * * * *
Voronezh Scientific Research For all items Presumption of 83 FR [INSERT FR
Institute ``Vega``, a.k.a., subject to the denial. PAGE NUMBER 9/26/
the following two aliases: EAR. (See Sec. 2018].
--Voronezhskiy Nauchno- 744.11 of the
Issledovatelskiy Institut EAR.)
``Vega``; and
--VNII Vega.
Moskovskiy Prospekt 7B,
Voronezh, 394026, Russia.
----------------------------------------------------------------------------------------------------------------

* * * * * * *
----------------------------------------------------------------------------------------------------------------
SINGAPORE.............. * * * * * *
All Industrial Manufacturing For all items See 744.2(d) of 83 FR [INSERT FR
(AIM) Pte Ltd., 4 Kaki subject to the the EAR. PAGE NUMBER 9/26/
Bukit Ave 1, #02-05, EAR. (See Sec. 2018].
417939, Singapore. 744.11 of the
EAR.)
* * * * * *
----------------------------------------------------------------------------------------------------------------

* * * * * * *
----------------------------------------------------------------------------------------------------------------
UNITED ARAB EMIRATES... * * * * * *

[[Page 48537]]

AdCom Systems, a.k.a. the For all items Presumption of 81 FR 14958, 3/21/
following two aliases: subject to the denial. 16.
--Sky Global Communications; EAR. (See Sec. 83 FR [INSERT FR
and 744.11 of the PAGE NUMBER 9/26/
--Sky Global Communication EAR.) 2018].
Systems.
Industrial City of Abu
Dhabi--ICAD1, Mussafah, Abu
Dhabi, UAE; and #2
Mezzanine Level, Block 19,
Sharq 40 Al Morour Street,
Abu Dhabi Island, Abu
Dhabi, UAE.
* * * * * *
----------------------------------------------------------------------------------------------------------------

* * * * * * *
----------------------------------------------------------------------------------------------------------------

Dated: September 21, 2018.
Richard E. Ashooh,
Assistant Secretary for Export Administration.
[FR Doc. 2018-20954 Filed 9-25-18; 8:45 am]
BILLING CODE 3510-33-P

48532 Federal Register / Vol. 83, No. 187 / Wednesday, September 26, 2018 / Rules and Regulations

DEPARTMENT OF COMMERCE described in the relevant Federal their involvement in providing material
Register notice adding entities to the support to Iranian missile programs.
Bureau of Industry and Security Entity List. BIS places entities on the The ERC also determined that four
Entity List pursuant to part 744 (Control commercial companies—Joint Stock
15 CFR Part 744 Policy: End-User and End-Use Based) Company Scientific-Research Institute
[Docket No. 180910826–8826–01] and part 746 (Embargoes and Other ‘‘Vektor’’, Open Joint Stock Company
Special Controls) of the EAR. Information Technology and
RIN 0694–AH63
The End-User Review Committee Communication Systems, Federal State
(ERC), composed of representatives of Unitary Enterprise Scientific Production
Addition of Certain Entities to the Enterprise ‘‘GAMMA’’, and Syrus
Entity List, Revision of an Entry on the the Departments of Commerce (Chair),
State, Defense, Energy and, where Systems—located in Russia be added to
Entity List and Removal of an Entity the Entity List. These entities have
From the Entity List appropriate, the Treasury, makes all
decisions regarding additions to, enabled the activities of malicious
AGENCY: Bureau of Industry and removals from, or other modifications to Russian cyber actors. In addition, the
Security, Commerce. the Entity List. The ERC makes all ERC determined that two entities,
ACTION: Final rule. decisions to add an entry to the Entity Divetechnoservices and Oceanos, be
List by majority vote, and makes all added to the Entity List under the
SUMMARY: This final rule amends the decisions to remove or modify an entry destination of Russia for providing
Export Administration Regulations equipment and support to the Russian
by unanimous vote.
(EAR) by adding fourteen entities to the Navy. The ERC also determined that five
Entity List. These fourteen entities have ERC Entity List Decisions entities—AeroComposit; Obinsk
been determined by the U.S. Research and Production Enterprise
Additions to the Entity List
Government to be acting contrary to the (ORPE), Open Joint Stock Company
national security or foreign policy This rule implements the decision of Aviadvigatel, Open Joint Stock
interests of the United States and will be the ERC to add fourteen entities to the Company Scientific and Production
listed on the Entity List under the Entity List. The addition of these Corporation of Precision Instruments
destinations of Belarus, Iran, Russia, fourteen entities involves sixteen Entity Engineering (NPK–SPP), and Voronezh
and Singapore. This rule also modifies List entries, as one of the entities being Scientific Research Institute ‘‘Vega’’—be
one entry on the Entity List under the added has locations in three added to the Entity List for supporting
destination of the United Arab Emirates. destinations. The fourteen entities are Russian military aerospace production
Lastly, this rule removes one entity being added based on § 744.11 (License activities.
under the destination of Hong Kong requirements that apply to entities Under the destination of Singapore,
from the Entity List. The removal is acting contrary to the national security the ERC determined that one entity, All
made in connection with a request for or foreign policy interests of the United Industrial Manufacturing (AIM) Pte Ltd.,
removal BIS received pursuant to the States) of the EAR. The sixteen entries be added to the Entity List based on its
EAR and a review of information consist of two entries located in Belarus, involvement in the proliferation of
provided in that request. one entry located in Iran, twelve entries unsafeguarded nuclear activities.
located in Russia and one entry located Pursuant to § 744.11(b) of the EAR,
DATES: This rule is effective September
in Singapore. the ERC determined that the conduct of
26, 2018. these fourteen entities raises sufficient
FOR FURTHER INFORMATION CONTACT: The ERC reviewed § 744.11(b) concern that prior review of exports,
Chair, End-User Review Committee, (Criteria for revising the Entity List) in reexports or transfers (in-country) of all
Office of the Assistant Secretary, Export making the determination to add these items subject to the EAR involving these
Administration, Bureau of Industry and fourteen entities to the Entity List. entities, and the possible imposition of
Security, Department of Commerce, Under that paragraph, persons for whom license conditions or license denials on
Phone: (202) 482–5991, Email: ERC@ there is reasonable cause to believe, shipments to the persons, will enhance
bis.doc.gov. based on specific and articulable facts, BIS’s ability to prevent violations of the
SUPPLEMENTARY INFORMATION:
that they have been involved, are EAR.
involved, or pose a significant risk of For thirteen of the fourteen entities
Background being or becoming involved in, described above that are being added to
The Entity List (15 CFR, Subchapter activities that are contrary to the the Entity List, BIS imposes a license
C, part 744, Supplement No. 4) national security or foreign policy requirement for all items subject to the
identifies entities reasonably believed to interests of the United States, along with EAR and a license review policy of
be involved, or to pose a significant risk those acting on behalf of such persons, presumption of denial. For All
of being or becoming involved, in may be added to the Entity List. Industrial Manufacturing (AIM) Pte Ltd,
activities contrary to the national Paragraphs (b)(1) through (b)(5) of the entity added under Singapore, BIS
security or foreign policy interests of the § 744.11 provide an illustrative list of imposes a license requirement for all
United States. The Export activities that could be contrary to the items subject to the EAR and will
Administration Regulations (EAR) (15 national security or foreign policy exercise the license review policy set
CFR, Subchapter C, parts 730–774) interests of the United States. For each forth in subpart (d) of EAR § 744.2, a
imposes additional license requirements of the fourteen entities described below, nuclear end-user and end-use based
on, and limits the availability of most the ERC made the requisite provision. For all fourteen entities, the
license exceptions for, exports, determination under the standard set license requirements apply to any
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reexports, and transfers (in-country) to forth in § 744.11(b). transaction in which items are to be
listed entities. The license review policy Pursuant to § 744.11(b) of the EAR, exported, reexported, or transferred (in-
for each listed entity is identified in the the ERC determined that Nilco Group, country) to any of the entities or in
‘‘License review policy’’ column on the located in Belarus, Iran, and Russia, and which such entities act as purchaser,
Entity List, and the impact on the Mohammad Najafi, located in Belarus, intermediate consignee, ultimate
availability of license exceptions is be added to the Entity List based on consignee, or end-user. In addition, no

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48534 Federal Register / Vol. 83, No. 187 / Wednesday, September 26, 2018 / Rules and Regulations

administrative action that have been including suggestions for reducing the PART 744—[AMENDED]
made, issued, conducted, or allowed to burden, to Jasmeet K. Seehra, Office of
become effective under the Export Management and Budget (OMB), by ■ 1. The authority citation for 15 CFR
Administration Act of 1979 (50 U.S.C. email to Jasmeet_K._Seehra@ part 744 continues to read as follows:
4601 et seq.) (as in effect prior to August omb.eop.gov, or by fax to (202) 395–
Authority: Pub. L. 115–232, Title XVII,
13, 2018 and as continued in effect 7285.
3. This rule does not contain policies Subtitle B. 50 U.S.C. 4601 et seq.; 50 U.S.C.
pursuant to the International Emergency
1701 et seq.; 22 U.S.C. 3201 et seq.; 42 U.S.C.
Economic Powers Act (50 U.S.C. 1701 et with Federalism implications as that
2139a; 22 U.S.C. 7201 et seq.; 22 U.S.C. 7210;
seq.) and Executive Order 13222 of term is defined in Executive Order E.O. 12058, 43 FR 20947, 3 CFR, 1978 Comp.,
August 17, 2001, 3 CFR, 2001 Comp., p. 13132. p. 179; E.O. 12851, 58 FR 33181, 3 CFR, 1993
783 (2002), as amended by Executive 4. Pursuant to § 1762 of the Export Comp., p. 608; E.O. 12938, 59 FR 59099, 3
Order 13637 of March 8, 2013, 78 FR Control Reform Act of 2018 (Title XVII, CFR, 1994 Comp., p. 950; E.O. 12947, 60 FR
16129 (March 13, 2013), and as Subtitle B of Pub. L. 115–232), which 5079, 3 CFR, 1995 Comp., p. 356; E.O. 13026,
extended by the Notice of August 8, was included in the John S. McCain 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O.
2018, 83 FR 39871 (August 13, 2018)), National Defense Authorization Act for 13099, 63 FR 45167, 3 CFR, 1998 Comp., p.
or the Export Administration Fiscal Year 2019, this action is exempt 208; E.O. 13222, 66 FR 44025, 3 CFR, 2001
Regulations, and are in effect as of from the Administrative Procedure Act Comp., p. 783; E.O. 13224, 66 FR 49079, 3
August 13, 2018, shall continue in effect (5 U.S.C. 553) requirements for notice of CFR, 2001 Comp., p. 786; Notice of
according to their terms until modified, proposed rulemaking, opportunity for September 18, 2017, 82 FR 43825 (September
superseded, set aside, or revoked under public participation, and delay in 19, 2017); Notice of November 6, 2017, 82 FR
effective date. 51971 (November 8, 2017); Notice of January
the authority of ECRA.
5. This action involves the removal of 17, 2018, 83 FR 2731 (January 18, 2018);
Rulemaking Requirements an entity from the Entity List. Removals Notice of August 8, 2018, 83 FR 39871
(August 13, 2018).
1. Executive Orders 13563 and 12866 from the Entity List involve interagency
direct agencies to assess all costs and deliberation and result from review of ■ 2. Supplement No. 4 to part 744 is
benefits of available regulatory public and non-public sources, amended:
alternatives and, if regulation is including, where applicable, sensitive
■ a. Under Belarus, by adding in
necessary, to select regulatory law enforcement information and
approaches that maximize net benefits classified information, and the alphabetical order, two Belarusian
(including potential economic, measurement of such information entities, ‘‘Mohammad Ghassem Najafi’’
environmental, public health and safety against the Entity List removal criteria. and ‘‘Nilco Group’’;
effects, distributive impacts, and This information is reviewed according ■ b. Under Hong Kong, by removing one
equity). Executive Order 13563 to the procedures and criteria for Hong Kong entity, ‘‘Antony Emmanuel,
emphasizes the importance of evaluating removal requests from the No. 3 & 4, 12F Commercial VIP
quantifying both costs and benefits, of Entity List, as set forth in 15 CFR Building, 112–116 Canton Rd., Tsim
reducing costs, of harmonizing rules, 744.11, 15 CFR 744.16, and 15 CFR part Sha Tsui, Hong Kong’’;
and of promoting flexibility. This rule 744, Supplement No. 5. For reasons of ■ c. Under Iran, by adding in
has been determined to be not national security, BIS is not at liberty to alphabetical order, one Iranian entity,
significant for purposes of Executive provide to the public detailed ‘‘Nilco Group’’;
Order 12866. This rule is not an information on which the ERC relies to
Executive Order 13771 regulatory action make the decisions to remove these ■ d. Under Russia, by adding in
because this rule is not significant under entities. In addition, the information alphabetical order, twelve Russian
Executive Order 12866. included in a removal request is entities, ‘‘AeroComposit,’’ ’’
2. Notwithstanding any other exchanged between the applicant and Divetechnoservices,’’ ‘‘Federal State
provision of law, no person is required the ERC, which by law (§ 1761(h) of the Unitary Enterprise Scientific Production
to respond to or be subject to a penalty ECRA), BIS is restricted from sharing Enterprise ‘‘GAMMA’’,’’ ‘‘Joint Stock
for failure to comply with a collection with the public. Moreover, removal Company Scientific-Research Institute
of information, subject to the requests from the Entity List may ‘‘Vektor’’,’’ ‘‘Nilco Group,’’ ‘‘Obinsk
requirements of the Paperwork contain confidential business Research and Production Enterprise
Reduction Act of 1995 (44 U.S.C. 3501 information that is necessary for the (ORPE),’’ ‘‘Oceanos,’’ ‘‘Open Joint Stock
et seq.) (PRA), unless that collection of extensive review conducted by the ERC. Company Aviadvigatel,’’ ‘‘Open Joint
information displays a currently valid 6. Because a notice of proposed Stock Company Information Technology
Office of Management and Budget rulemaking and an opportunity for and Communication Systems,’’ ‘‘Open
(OMB) Control Number. This regulation public comment are not required to be Joint Stock Company Scientific and
involves collections previously given for this rule by 5 U.S.C. 553, or Production Corporation of Precision
approved by OMB under control by any other law, the analytical Instruments Engineering (NPK–SPP),’’
number 0694–0088, Simplified Network requirements of the Regulatory ‘‘Syrus Systems,’’ and ‘‘Voronezh
Application Processing System, which Flexibility Act, 5 U.S.C. 601, et seq., are Scientific Research Institute ‘‘Vega’’ ’’;
includes, among other things, license not applicable. Accordingly, no ■ e. Under Singapore, by adding in
applications, and carries a burden regulatory flexibility analysis is required alphabetical order, one Singaporean
estimate of 43.8 minutes for a manual or and none has been prepared. entity, ‘‘All Industrial Manufacturing
electronic submission. (AIM) Pte Ltd.’’;
List of Subjects in 15 CFR Part 744
Total burden hours associated with
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the PRA and OMB control number Exports, Reporting and recordkeeping ■ f. Under the United Arab Emirates, by
0694–0088 are not expected to increase requirements, Terrorism. revising Emirati entity, ‘‘AdCom
as a result of this rule. You may send Accordingly, part 744 of the Export Systems’’.
comments regarding the collection of Administration Regulations (15 CFR The additions and revisions read as
information associated with this rule, parts 730–774) is amended as follows: follows:

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Federal Register / Vol. 83, No. 187 / Wednesday, September 26, 2018 / Rules and Regulations 48537

SUPPLEMENT NO. 4 TO PART 744—ENTITY LIST—Continued
Federal
License License
Country Entity Register
requirement review policy citation

AdCom Systems, a.k.a. the following For all items subject to Presumption of denial ...... 81 FR 14958, 3/21/16.
two aliases: the EAR. (See § 744.11 83 FR [INSERT FR PAGE
—Sky Global Communications; and of the EAR.) NUMBER 9/26/2018].
—Sky Global Communication Systems.
Industrial City of Abu Dhabi—ICAD1,
Mussafah, Abu Dhabi, UAE; and #2
Mezzanine Level, Block 19, Sharq 40
Al Morour Street, Abu Dhabi Island,
Abu Dhabi, UAE.
* * * * * *

* * * * * * *

Dated: September 21, 2018. U.S. Department of Labor, Room S– the workers’ wages. The October 7, 2014
Richard E. Ashooh, 3502, 200 Constitution Avenue NW, final rule implementing E.O. 13658
Assistant Secretary for Export Washington, DC 20210, telephone: (202) applied to covered workers of
Administration. 693–0406 (this is not a toll-free number) contractors providing seasonal
[FR Doc. 2018–20954 Filed 9–25–18; 8:45 am] or email: WHDPRAComments@dol.gov. recreational services or seasonal
BILLING CODE 3510–33–P SUPPLEMENTARY INFORMATION: recreational equipment rental on
Federal lands under covered contracts.
I. Background On May 25, 2018, President Donald J.
DEPARTMENT OF LABOR E.O. 13658, titled ‘‘Establishing a Trump issued E.O. 13838, titled
Minimum Wage for Contractors,’’ was ‘‘Exemption from Executive Order
Office of the Secretary issued on February 12, 2014. See 79 FR 13658 for Recreational Services on
9849. E.O. 13658 raised the hourly Federal Lands.’’ See 83 FR 25341.
29 CFR Part 10 minimum wage for certain workers Section 2 of E.O. 13838 amended E.O.
performing work on covered Federal 13658 to add language providing that
RIN 1235–AA27
contracts to $10.10 per hour in 2015, the provisions of E.O. 13658 do ‘‘not
Minimum Wage for Contractors; with annual inflation-based adjustments apply to federal contracts or contract-
Updating Regulations To Reflect thereafter as determined by the like instruments’’ entered into ‘‘in
Executive Order 13838 Secretary of Labor (Secretary). Id. As of connection with seasonal recreational
January 1, 2018, the E.O. 13658 services or seasonal recreational
AGENCY: Wage and Hour Division, minimum wage rate is $10.35 per hour. equipment rental.’’ The E.O.
Department of Labor. As of January 1, 2019, the E.O. 13658 additionally stated that seasonal
ACTION: Final rule. minimum wage will be $10.60 per hour. recreational services include ‘‘river
See 83 FR 44906.1 running, hunting, fishing, horseback
SUMMARY: In this final rule, the E.O. 13658 and its implementing riding, camping, mountaineering
Department of Labor (the Department) regulations established that this activities, recreational ski services, and
implements Executive Order (E.O.) minimum wage requirement applies youth camps.’’ E.O. 13838 further
13838, issued on May 25, 2018. E.O. only to a ‘‘new contract’’ that qualifies specified that this exemption does not
13838 exempts certain contracts with as: (A) A procurement contract for apply to ‘‘lodging and food services
the Federal Government from the construction covered under the Davis- associated with seasonal recreational
requirements of E.O. 13658. In Bacon Act (DBA); (B) a contract for activities.’’
particular, the E.O. exempts contracts in services covered under the McNamara- E.O. 13838 explained that because of
connection with both seasonal O’Hara Service Contract Act (SCA); (C) the nature of the industry, seasonal
recreational services and also seasonal a contract for concessions, including recreational workers have ‘‘irregular
recreational equipment rental when any concessions contract that the work schedules, a high incidence of
such services and equipment are offered Department’s regulations at 29 CFR overtime pay, and an unusually high
to the general public on Federal lands. 4.133(b) exclude from the SCA; or (D) a turnover rate.’’ The order further
E.O. 13838 amends E.O. 13658 by contract with the Federal Government explained that implementing E.O.
inserting two sentences into that order in connection with Federal property or 13658, therefore, threatened to
and also directs executive departments lands and related to offering services for significantly increase the cost of
and agencies to promptly implement the Federal employees, their dependents, or seasonal recreational services on
exemption. In order to carry out that the general public. Further, this Federal lands, while limiting the hours
directive, this rule inserts the same two minimum wage requirement applies that recreational-service workers would
sentences into the Department’s only when the Fair Labor Standards Act
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be available to work. Thus, exempting
regulations. (FLSA), the SCA, or the DBA governs these services from E.O. 13658 would
DATES: Effective September 26, 2018. help prevent job losses and ensure
1 For tipped employees performing work on or in
FOR FURTHER INFORMATION CONTACT: affordable guided tours for visitors to
connection with covered contracts, E.O. 13658
Melissa Smith, Director, Division of established a different minimum wage, which is Federal lands.
Regulations, Legislation, and currently $7.25 per hour and will increase to $7.40 E.O. 13838 requires executive
Interpretation, Wage and Hour Division, per hour beginning January 1, 2019. Id. departments and agencies to ‘‘promptly

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Document Created: 2018-09-26 00:47:02
Document Modified: 2018-09-26 00:47:02

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 September 26, 2018.
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		83 FR 48532
RIN Number		0694-AH63
CFR Associated		Exports; Reporting and Recordkeeping Requirements and Terrorism

83 FR 48532 - Addition of Certain Entities to the Entity List, Revision of an Entry on the Entity List and Removal of an Entity From the Entity List

DEPARTMENT OF COMMERCEBureau of Industry and Security

Federal Register Volume 83, Issue 187 (September 26, 2018)

DEPARTMENT OF COMMERCE
Bureau of Industry and Security