[Federal Register Volume 75, Number 103 (Friday, May 28, 2010)]
[Rules and Regulations]
[Pages 29884-29886]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-12956]
[[Page 29884]]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Part 744
[Docket No. 100311137-0138-01]
RIN 0694-AE88
Implementation of Changes from the 2009 Annual Review of 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)
to implement changes to the Entity List (Supplement No. 4 to Part 744)
on the basis of the 2009 annual review of the Entity List conducted by
the End-User Review Committee. The changes from the annual review will
be implemented in two rules. The first rule published today implements
the results of the annual review for listed entities under eleven
destinations on the Entity List: Canada, Egypt, Germany, Hong Kong,
Israel, Kuwait, Lebanon, Malaysia, South Korea, Singapore, and the
United Kingdom.
The second rule will implement the results of the annual review for
entities listed under the remaining seven destinations that were
included in the 2009 annual review: China, India, Iran, Pakistan,
Russia, Syria, and the United Arab Emirates. Entities listed under the
destinations of Armenia, Ireland or Taiwan were not included in the
2009 annual review because they were added to the Entity List in 2009
or 2010.
The Entity List provides notice to the public that certain exports,
reexports, and transfers (in-country) to entities identified on the
Entity List require a license from the Bureau of Industry and Security
and that availability of license exceptions in such transactions is
limited.
DATES: Effective Date: This rule is effective May 28, 2010. Although
there is no formal comment period, public comments on this regulation
are welcome on a continuing basis.
ADDRESSES: You may submit comments, identified by RIN 0694-AE88, by any
of the following methods:
E-mail: [email protected] Include ``RIN 0694-AE88'' in the
subject line of the message.
Fax: (202) 482-3355. Please alert the Regulatory Policy Division,
by calling (202) 482-2440, if you are faxing comments.
Mail or Hand Delivery/Courier: Timothy Mooney, U.S. Department of
Commerce, Bureau of Industry and Security, Regulatory Policy Division,
14th St. & Pennsylvania Avenue, NW., Room 2705, Washington, DC 20230,
Attn: RIN 0694-AE88. 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 e-mail to [email protected], or by fax
to (202) 395-7285; and to the Regulatory Policy Division, Bureau of
Industry and Security, Department of Commerce, 14th St. & Pennsylvania
Avenue, NW., Room 2705, Washington, DC 20230. Comments on this
collection of information should be submitted separately from comments
on the final rule (i.e., RIN 0694-AE88)--all comments on the latter
should be submitted by one of the three methods outlined above.
FOR FURTHER INFORMATION CONTACT: Susan Kramer, Acting Chairman, End-
User Review Committee, Office of the Assistant Secretary, Export
Administration, Bureau of Industry and Security, Department of
Commerce, Phone: (202) 482-0117, Fax: (202) 482-4145, E-mail:
[email protected].
SUPPLEMENTARY INFORMATION:
Background
The Entity List provides notice to the public that certain exports,
reexports, and transfers (in-country) to entities identified on the
Entity List require a license from the Bureau of Industry and Security
(BIS) and that availability of license exceptions in such transactions
is limited. Entities are placed on the Entity List on the basis of
certain sections of part 744 (Control Policy: End-User and End-Use
Based) 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 to make additions to,
removals from and other changes 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.
2009 Annual Review of the Entity List
This rule amends the Export Administration Regulations (EAR) to
implement changes to the Entity List (Supplement No. 4 to part 744) on
the basis of the 2009 annual review of the Entity List conducted by the
ERC, in accordance with the procedures outlined in Supplement No. 5 to
part 744 (Procedures for End-User Review Committee Entity List
Decisions).
As of January 1, 2009, entities on the Entity List were listed
under one or more of eighteen different destinations. The changes from
the 2009 annual review of the Entity List that were approved by the ERC
will be implemented in two rules. The first rule published today
implements the results of the annual review for listed entities under
eleven destinations on the Entity List: Canada, Egypt, Germany, Hong
Kong, Israel, Kuwait, Lebanon, Malaysia, South Korea, Singapore, and
the United Kingdom. The second rule will implement the results of the
annual review for entities listed under the remaining seven
destinations: China, India, Iran, Pakistan, Russia, Syria, and the
United Arab Emirates. Entities listed under the destinations of
Armenia, Ireland or Taiwan were not included in the 2009 annual review
because they were added to the Entity List in 2009 or 2010.
ERC Entity List Decisions
This rule removes one entity from the Entity List under Hong Kong.
This rule also makes two modifications to the Entity List: by making a
correction to the address of one entity listed under Egypt, and by
making a clarification to the license requirement for one entity listed
under Israel. On the basis of the 2009 annual review, no additional
changes will be made to listed entities under the following eight
destinations: Canada, Germany, Kuwait, Lebanon, Malaysia, South Korea,
Singapore, and the United Kingdom.
Removal From the Entity List
The entity being removed from the Entity List is located in Hong
Kong:
Hong Kong
(1) Speedy Electronics Ltd., 1206-7, 12/F New Victory House, Hong
Kong.
The removal of Speedy Electronics Ltd. from the Entity List (from
Hong Kong, as described above) eliminates the existing license
requirement in Supplement No. 4 to part 744 for exports, reexports and
transfers (in-country) to this entity. However, the removal of Speedy
Electronics Ltd. 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
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subject to the EAR to an end-user or end-use that is prohibited by part
744 of the EAR.'' Nor do such removals 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.
Modifications to the Entity List
(1) This rule amends one Egyptian entry currently on the Entity
List by adding an additional address for the entity listed, as follows:
Egypt
H Logic, Behind 14 Mahmoud Sedky St., El Ekbal, Alexandria, Egypt;
and 11 Abd El-Hamid Shoman St., Nasser City, Cairo.
A BIS license is required for the export, reexport or transfer (in-
country) of any item subject to the EAR to H Logic, including any
transaction in which this listed entity will act as purchaser,
intermediate consignee, ultimate consignee, or end-user of the items.
This listing of this entity also prohibits the use of license
exceptions (see part 740 of the EAR) for exports, reexports and
transfers (in-country) of items subject to the EAR involving this
entity.
(2) Finally, this rule amends one Israeli entry currently on the
Entity List (i.e., Ben Gurion University) by revising the license
requirement for the entity listed. This change was needed because the
license requirement for this listed entity prior to publication of this
rule was based on a section of the EAR that is no longer in the EAR
(i.e., Section 742.12 (High Performance Computers)). This section of
the EAR was removed and reserved on April 24, 2006 (71 FR 20876). To
conform to the April 2006 change and to clarify the Entity List based
license requirement for this listed entity, this rule is revising the
license requirement to indicate the license requirement applies to
computers above the Tier 3 level described in Section 740.7(d) of
License APP (Computers). The entity column and the revision to the
license requirement column for this listed entity is, as follows:
Israel
Ben Gurion University, Israel.
License Requirement
For computers above the Tier 3 level described in Section 740.7(d)
(i.e., Tier 3 under APP).
A BIS license is required for the export, reexport or transfer (in-
country) of any computers above the Tier 3 level described in Section
740.7(d) (i.e., Tier 3 under APP) subject to the EAR to Ben Gurion
University, including any transaction in which this listed entity will
act as purchaser, intermediate consignee, ultimate consignee, or end-
user of the items. This listing of this entity also prohibits the use
of license exceptions (see part 740 of the EAR) for exports, reexports
and transfers (in-country) of these types of computers subject to the
EAR involving this entity.
Savings Clause
Shipments of items removed from eligibility for a License Exception
or export or reexport without a license (NLR) as a result of this
regulatory action that were on dock for loading, on lighter, laden
aboard an exporting or reexporting carrier, or en route aboard a
carrier to a port of export or reexport, on May 28, 2010 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) so long
as they are exported or reexported before June 28, 2010. Any such items
not actually exported or reexported before midnight, on June 28, 2010,
require a license in accordance with this rule.
Although the Export Administration Act expired on August 20, 2001,
the President, through Executive Order 13222 of August 17, 2001, 3 CFR,
2001 Comp., p. 783 (2002), as extended by the Notice of August 13,
2009, 74 FR 41325 (August 14, 2009), has continued the Export
Administration Regulations in effect under the International Emergency
Economic Powers Act.
Rulemaking Requirements
1. 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 the OMB under control numbers 0694-
0088, ``Multi-Purpose Application,'' which carries a burden hour
estimate of 58 minutes to prepare and submit form BIS-748.
Miscellaneous and recordkeeping activities account for 12 minutes per
submission. Total burden hours associated with the Paperwork Reduction
Act and Office and Management and Budget control number 0694-0088 are
expected to increase slightly as a result of this rule.
3. This rule does not contain policies with Federalism implications
as that term is defined in Executive Order 13132.
4. The provisions of the Administrative Procedure Act (5 U.S.C.
553) requiring notice of proposed rulemaking, the opportunity for
public participation, 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)). 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.
List of Subjects in 15 CFR Part 744
Exports, Reporting and recordkeeping requirements, Terrorism.
0
Accordingly, part 744 of the Export Administration Regulations (15 CFR
parts 730-774) is amended as follows:
PART 744--[AMENDED]
0
1. The authority citation for 15 CFR part 744 continues to read as
follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22
U.S.C. 7210; E.O. 12058, 43 FR 20947, 3 CFR, 1978 Comp., p. 179;
E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p. 608; E.O. 12938, 59
FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 12947, 60 FR 5079, 3 CFR,
1995 Comp., p. 356; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p.
228; E.O. 13099, 63 FR 45167, 3 CFR, 1998 Comp., p. 208; E.O. 13222,
66 FR 44025, 3 CFR, 2001 Comp., p. 783; E.O. 13224, 66 FR 49079, 3
CFR, 2001 Comp., p. 786; Notice of August 13, 2009, 74 FR 41325
(August 14, 2009); Notice of November 6, 2009, 74 FR 58187 (November
10, 2009).
0
2. Supplement No. 4 to part 744 is amended:
0
a. By removing under Hong Kong, one Hong Kong entity ``Speedy
Electronics Ltd., 1206-7, 12/F New Victory House, Hong Kong'';
0
b. By revising under Egypt, in alphabetical order, one Egyptian entity;
and
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c. By revising under Israel, in alphabetical order, one Israeli entity;
The revisions 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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* * * * * * *
EGYPT.................... H Logic, Behind 14 For all items Presumption of 73 FR 54504, 9/22/
Mahmoud Sedky St., subject to the EAR. denial. 08. 75 FR [Insert
El Ekbal, (See Sec. 744.11 FR page number and
Alexandria, Egypt; of the EAR). 5/28/10.
and 11 Abd El-Hamid
Shoman St., Nasser
City, Cairo.
* * * * * * *
ISRAEL................... Ben Gurion For computers above Case-by-case basis.. 62 FR 4910, 2/3/97
University, Israel. the Tier 3 level 65 FR 12919, 03/10/
described in 00. 75 FR [Insert
Section 740.7(d) FR page number and
(i.e., Tier 3 under 5/28/10.
APP)..
* * * * * *
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Dated: May 21, 2010.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2010-12956 Filed 5-27-10; 8:45 am]
BILLING CODE 3510-33-P