4862 Federal Register / Vol. 86, No. 10 / Friday, January 15, 2021 / Rules and Regulations 

DEPARTMENT OF COMMERCE 

Bureau of Industry and Security 

15 CFR Part 744 

[Docket No. 210111–0006] 

RIN 0694–AI40 

Addition of Entity to the Entity List, 

and Addition of Entity to the Military 

End-User (MEU) List and Removals 

From the MEU List 

AGENCY: Bureau of Industry and 

Security, Commerce. 

ACTION: Final rule. 

SUMMARY: In this rule, the Bureau of 

Industry and Security (BIS) amends the 

Export Administration Regulations 

(EAR) by adding one entity to the Entity 

List. This one entity has been 

determined by the U.S. Government to 

be acting contrary to the national 

security or foreign policy interests of the 

United States. This entity will be listed 

on the Entity List under the destination 

of the People’s Republic of China 

(China). In addition, this final rule 

amends the EAR by adding one entity to 

the Military End-User (MEU) List. 

Lastly, this final rule removes two 

entities from the MEU List to remove a 

duplicate listing. 

DATES: This rule is effective January 14, 

2021. 

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, Fax: (202) 482– 

3911, Email: ERC@bis.doc.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

The Entity List (supplement no. 4 to 

part 744 of the Export Administration 

Regulations (EAR)) identifies entities for 

which there is reasonable cause to 

believe, based on specific and 

articulable facts, that the entities have 

been involved, are involved, or 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 

(15 CFR parts 730–774) impose 

additional license requirements on, and 

limit 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 ‘Military End-User’ (MEU) List 

(supplement no. 7 to part 744 of the 

EAR) identifies entities that have been 

determined by the ERC to be ‘military 

end users’ pursuant to § 744.21 of the 

EAR. That section imposes additional 

license requirements on, and limits the 

availability of most license exceptions 

for, exports, reexports, and transfers (incountry) to listed entities on the MEU 

List, as specified in supplement no. 7 to 

part 744 and § 744.21. Entities are listed 

on the MEU List under the destinations 

of China, Russia, or Venezuela. The 

license review policy for each listed 

entity is identified in the introductory 

text of supplement no. 7 to part 744 and 

in § 744.21(b) and (e). The MEU List 

includes introductory text, which 

specifies the scope of the license 

requirements, limitations on the use of 

EAR license exceptions, and the license 

review policy that applies to the 

entities. These requirements are also 

reflected in § 744.21, but for ease of 

reference, these also included in the 

introductory text of the supplement. 

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 and the MEU List. The 

ERC makes all decisions to add an entry 

to the Entity List and MEU List by 

majority vote and all decisions to 

remove or modify an entry by 

unanimous vote. 

ERC Entity List Decisions 

Additions to the Entity List 

Under § 744.11(b) (Criteria for 

revising the Entity List) of the EAR, 

entities for which there is reasonable 

cause to believe, based on specific and 

articulable facts, that the entities 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 entities, may be 

added to the Entity List. Paragraphs 

(b)(1) through (5) of § 744.11 provide an 

illustrative list of activities that could be 

considered contrary to the national 

security or foreign policy interests of the 

United States. 

This rule implements the decision of 

the ERC to add one entity to the Entity 

List. This one entity will be listed on the 

Entity List under the destination of 

China. The ERC made the decision to 

add this one entity described below 

under the standard set forth in 

§ 744.11(b) of the EAR. 

The ERC determined that the one 

subject entity is engaging in or enabling 

activities contrary to U.S. national 

security and foreign policy interests, as 

follows: 

The ERC determined that China 

National Offshore Oil Corporation Ltd. 

has been involved in the PRC’s efforts 

to assert its unlawful maritime claims in 

the South China Sea, as well as efforts 

to intimidate and coerce other South 

China Sea coastal states from accessing 

and developing offshore marine 

resources. 

Pursuant to § 744.11(b), the ERC 

determined that the conduct of the 

above-described one entity raises 

sufficient concerns that prior review, via 

the imposition of a license requirement, 

of exports, reexports, or transfers (incountry) of all items subject to the EAR 

involving this one entity, except for the 

exclusions from the license requirement 

specified in the next paragraph, and the 

possible issuance of license denials or 

the possible imposition of license 

conditions on shipments to this entity, 

will enhance BIS’s ability to prevent 

violations of the EAR or otherwise 

protect U.S. national security or foreign 

policy interests. 

For China National Offshore Oil 

Corporation Ltd., BIS imposes a license 

requirement that applies to all items 

subject to the EAR except for crude oil, 

condensates, aromatics, natural gas 

liquids, hydrocarbon gas liquids, natural 

gas plant liquids, refined petroleum 

products, liquefied natural gas, natural 

gas, synthetic natural gas, and 

compressed natural gas that are 

identified under one of thirty-seven 

Harmonized System (HS) codes 

included in the license requirement 

column for this entry, or for items 

required for the continued operation of 

joint ventures with persons from 

countries in Country Group A:1 in 

supplement no. 1 to part 740 of the EAR 

not operating in the South China Sea. 

For this one entity added to the Entity 

List by this rule, BIS imposes a license 

review policy of a presumption of 

denial. In addition, no license 

exceptions are available for exports, 

reexports, or transfers (in-country) to the 

person being added to the Entity List in 

this rule. 

For the reasons described above, this 

final rule adds the following one entity 

to the Entity List: 

Federal Register / Vol. 86, No. 10 / Friday, January 15, 2021 / Rules and Regulations 4863 

China 

• China National Offshore Oil 

Corporation Ltd. 

ERC MEU List Decisions 

Additions to the MEU List 

Under § 744.21(b) of the EAR, BIS 

may inform persons either individually 

by specific notice, through amendment 

to the EAR published in the Federal 

Register, or through a separate notice 

published in the Federal Register, that 

a license is required for specific exports, 

reexports, or transfers (in-country) of 

any item because there is an 

unacceptable risk of use in or diversion 

to a ‘military end use’ or ‘military end 

user’ in China, Russia, or Venezuela. 

Under § 744.21(b)(1) of the EAR, BIS 

may designate entities subject to this 

additional prohibition under paragraph 

(b) that have been determined by the 

ERC to be a ‘military end user’ pursuant 

to § 744.21. These entities will be added 

to supplement no. 7 to part 744 

(‘Military End-User’ (MEU) List) in 

Federal Register notices published by 

BIS. 

This rule implements the decision of 

the ERC to add one entity to the MEU 

List. This entity will be listed on the 

MEU List under the destination of 

China. The ERC made the decision to 

add this entity described below under 

the standard set forth in § 744.21 of the 

EAR, including the criteria for what 

constitutes a ‘military end user’ under 

paragraph (g) and ‘military end use’ 

under paragraph (f). 

The license requirement for this entity 

that will be listed on the MEU List 

applies to the export, reexport, or 

transfer (in-country) of any item subject 

to the EAR listed in supplement no. 2 

to part 744. For this one entity added to 

the MEU List by this rule, BIS imposes 

a license review policy of a presumption 

of denial as set forth in § 744.21(e). 

No license exceptions are available for 

exports, reexports, or transfers (incountry) to listed entities on the MEU 

List for items specified in supplement 

no. 2 to part 744, except license 

exceptions for items authorized under 

the provisions of License Exception 

GOV set forth in § 740.11(b)(2)(i) and (ii) 

of the EAR. 

The acronym ‘‘a.k.a.’’ (also known as) 

is used in entries on the MEU List to 

identify aliases, thereby assisting 

exporters, reexporters, and transferors in 

identifying entities on the MEU List. 

For the reasons described above, this 

final rule adds the following one entity 

to the MEU List: 

China 

• Beijing Skyrizon Aviation Industry 

Investment Co., Ltd. 

Removals From the MEU List 

The ERC reviews the MEU List 

regularly for identifying needed 

modifications, as specified in 

supplement no. 5 to part 744 

(Procedures For End-User Review 

Committee Entity List Decisions). 

Consistent with the ERC’s decision on 

the parties included in supplement no. 

5, two entities are being removed from 

supplement no. 7 to part 744. 

This rule removes ‘‘Korporatsiya 

Vsmpo Avisma OAO,’’ an entity located 

in Russia, from the MEU List because it 

is a duplicate listing of ‘‘Korporatsiya 

VSMPO AVISMA,’’ an entity considered 

for inclusion on the MEU list but not 

included because the ERC determined it 

was not a ‘military end user’ based on 

the criteria in § 744.21(g) and (f). 

This rule also removes ‘‘Molot 

Oruzhie,’’ an entity located in Russia, 

from the MEU List because this entity 

was already listed on the Entity List and 

therefore did not require being 

additionally listed on the MEU List. The 

entry for ‘‘Molot Oruzhie’’ was added to 

the Entity List on December 23, 2020 (85 

FR 83799). Entities on the Entity List are 

not also included on the MEU List. 

This final rule removes the following 

two entities, consisting of two entities 

located in Russia, from the MEU List: 

Russia 

• Korporatsiya Vsmpo Avisma OAO; 

and 

• Molot Oruzhie. 

Savings Clause 

Shipments of items removed from 

eligibility for a License Exception or 

export, reexport, or transfer (in-country) 

without a license (NLR) as a result of 

this regulatory action that were en route 

aboard a carrier to a port of export, 

reexport, or transfer (in-country), on 

[INSERT DATE OF DISPLAY ON THE 

PUBLIC INSPECTION DESK], pursuant 

to actual orders for export, reexport, or 

transfer (in-country) to or within a 

foreign destination, may proceed to that 

destination under the previous 

eligibility for a License Exception or 

export, reexport, or transfer (in-country) 

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) (50 U.S.C. 4801–4852). ECRA 

provides the legal basis for BIS’s 

principal authorities and serves as the 

authority under which BIS issues this 

rule. 

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 42.5 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. 

3. This rule does not contain policies 

with Federalism implications as that 

term is defined in Executive Order 

13132. 

4. Pursuant to § 1762 of the Export 

Control Reform Act of 2018, 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. 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 

4864 Federal Register / Vol. 86, No. 10 / Friday, January 15, 2021 / Rules and Regulations 

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] 

■ 1. The authority citation for 15 CFR 

part 744 continues to read as follows: 

Authority: 50 U.S.C. 4801–4852; 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. 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, 2020, 

85 FR 59641 (September 22, 2020); Notice of 

November 12, 2020, 85 FR 72897 (November 

13, 2020). 

■ 2. Supplement No. 4 to part 744 is 

amended: 

■ a. Under CHINA, PEOPLE’S 

REPUBLIC OF, by adding in 

alphabetical order an entry for ‘‘China 

National Offshore Oil Corporation Ltd.’’ 

The addition reads as follows: 

Supplement No. 4 to Part 744—Entity 

List 

* * * * * 

Country Entity License requirement License review policy Federal Register 

citation 

* * * * * * * 

CHINA, PEOPLE’S 

REPUBLIC OF.

* * * * * * 

China National Offshore Oil Corporation Ltd., No. 25 

Chaoyangmen North Street, 

Dongcheng District, Beijing, 

100010, China 

All items subjects to the EAR except for: 

—crude oil, condensates, aromatics, natural gas liquids, hydrocarbon gas liquids, natural 

gas plant liquids, refined petroleum products, liquefied natural 

gas, natural gas, synthetic natural gas, and compressed natural gas under the following 

Harmonized System (HS) 

codes: 271111, 2711210000, 

2711210000, 2709, 

2709002010, 2707, 27075000, 

2710, 271019, 271112, 

271113, 271114, 271119, 

27111990, 271311, 271312, 

271012250, 2901, 290511, 

2701, 29109020, 29151310, 

29155020, 29156050, 

29159020, 29161210, 

29280025, 29321910, 

29362920, 29419030, 

2909300000, 2917194500, 

2922504500, 2924296000, 

2925294500, 2928002500, 

2933194350; or 

—required for the continued operation of joint ventures with 

persons from countries in 

Country Group A:1 in supplement no. 1 to part 740 of the 

EAR not operating in the South 

China Sea 

Presumption of denial. 86 FR [INSERT FR 

PAGE NUMBER 1/ 

15/2021]. 

* * * * * * 

* * * * * * * 

* * * * * 

■ 3. Supplement No. 7 to part 744 is 

amended: 

■ a. Under CHINA, PEOPLE’S 

REPUBLIC OF, by adding in 

alphabetical order an entry for ‘‘Beijing 

Skyrizon Aviation Industry Investment 

Co., Ltd.;’’ and 

■ b. Under RUSSIA, by removing the 

entries for ‘‘Korporatsiya Vsmpo Avisma 

OAO’’ and ‘‘Molot Oruzhie.’’ 

The addition reads as follows: 

Supplement No. 7 to Part 744— 

‘Military End-User’ (MEU) List 

* * * * * 

Country Entity Federal Register 

citation 

CHINA, PEOPLE’S 

REPUBLIC OF.

* * * * * * 

Federal Register / Vol. 86, No. 10 / Friday, January 15, 2021 / Rules and Regulations 4865 

Country Entity Federal Register 

citation 

Beijing Skyrizon Aviation Industry Investment Co., Ltd., a.k.a., the following 

one alias: 

—Beijing Tianjiao Aviation Industry Investment Company 

86 FR [INSERT FR PAGE NUMBER 

1/15/2021]. 

21/F Tower C Zhizhen Plaza, No. 7 Zhichun Road, Haidian District, Beijing, 

China. 

CHINA, PEOPLE’S 

REPUBLIC OF.

* * * * * * 

* * * * * * * 

Matthew S. Borman, 

Deputy Assistant Secretary for Export 

Administration. 

[FR Doc. 2021–00995 Filed 1–14–21; 8:45 am] 

BILLING CODE 3510–33–P 

DEPARTMENT OF COMMERCE 

Bureau of Industry and Security 

15 CFR Parts 730, 734, 736, and 744 

[Docket No. 210112–0007] 

RIN 0694–AI38 

Expansion of Certain End-Use and 

End-User Controls and Controls on 

Specific Activities of U.S. Persons 

AGENCY: Bureau of Industry and 

Security, Commerce. 

ACTION: Interim final rule. 

SUMMARY: The Bureau of Industry and 

Security (BIS), Department of 

Commerce, is issuing this interim final 

rule to implement the provisions of the 

Export Control Reform Act of 2018 by: 

imposing additional license 

requirements under the Export 

Administration Regulations (EAR) for 

exports, reexports, and transfers (incountry), as well as specific activities of 

U.S. persons, in connection with certain 

military-intelligence end uses and end 

users; clarifying that license 

requirements under the EAR for specific 

activities of U.S. persons apply even 

when the items at issue are not subject 

to the EAR; establishing restrictions on 

transactions intended to circumvent 

license requirements for listed entities; 

and expanding the scope of activities 

subject to chemical and biological 

weapons and rocket systems and 

unmanned aerial vehicles end-use 

controls. 

DATES: Effective date: This rule is 

effective March 16, 2021. Comment 

date: Comments must be received by 

BIS no later than March 1, 2021. 

ADDRESSES: Comments on this rule may 

be submitted to the Federal rulemaking 

portal (www.regulations.gov). The 

regulations.gov ID for this rule is: BIS– 

2020–0044 or RIN 0694–AI38. All 

relevant comments (including any 

personally identifying information) will 

be made available for public inspection 

and copying. Follow the instructions for 

submitting comments. 

All filers using the portal should use 

the name of the person or entity 

submitting the comments as the name of 

their files, in accordance with the 

instructions below. Anyone submitting 

business confidential information 

should clearly identify the business 

confidential portion at the time of 

submission, file a statement justifying 

nondisclosure and referring to the 

specific legal authority claimed, and 

also provide a non-confidential version 

of the submission. 

For comments submitted 

electronically containing business 

confidential information, the file name 

of the business confidential version 

should begin with the characters ‘‘BC.’’ 

Any page containing business 

confidential information must be clearly 

marked ‘‘BUSINESS CONFIDENTIAL’’ 

on the top of that page. The 

corresponding non-confidential version 

of those comments must be clearly 

marked ‘‘PUBLIC.’’ The file name of the 

non-confidential version should begin 

with the character ‘‘P.’’ The ‘‘BC’’ and 

‘‘P’’ should be followed by the name of 

the person or entity submitting the 

comments or rebuttal comments. Any 

submissions with file names that do not 

begin with either a ‘‘BC’’ or a ‘‘P’’ will 

be assumed to be public and will be 

made publicly available through http:// 

www.regulations.gov. 

FOR FURTHER INFORMATION CONTACT: 

Philip Johnson, Senior Advisor, Export 

Enforcement, Bureau of Industry and 

Security, Phone: (202) 482–3685, 

Philip.Johnson@bis.doc.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

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) (50 U.S.C. 4801–4852). ECRA 

directs the President to control exports, 

reexports, and transfers (in-country); as 

well as the activities of U.S. persons in 

connection with nuclear, chemical, and 

biological weapons; whole plants for 

chemical weapons precursors; missiles; 

foreign maritime nuclear projects; and 

foreign military intelligence services. 

Accordingly, BIS is amending parts 730, 

734, 736, and 744 of the Export 

Administration Regulations (EAR) (15 

CFR parts 730 through 774) to 

implement such controls. BIS is also 

making certain revisions to enhance 

existing end-use and end-user controls 

under the EAR, including their 

enforceability. 

Restrictions on Specific Activities of 

U.S. Persons 

Section 1753(a)(2) of ECRA (50 U.S.C. 

4812(a)(2)) directs the President to 

impose controls on the activities of U.S. 

persons, wherever located, relating to 

specific nuclear explosive devices, 

missiles, chemical or biological 

weapons, whole plants for chemical 

weapons precursors, foreign maritime 

nuclear projects, and foreign military 

intelligence services. Additionally, 

section 1754(d) of ECRA (50 U.S.C. 

4813(d)) directs the Secretary of 

Commerce to require U.S. persons to 

apply for and receive a license to engage 

in specific activities in connection with 

nuclear explosive devices, missiles, 

chemical or biological weapons, whole 

plants for chemical weapons precursors, 

and foreign maritime nuclear projects, 

regardless of whether such activities 

occur in connection with an export, 

reexport, or transfer (in-country) of 

items subject to the EAR. Although 

section 1754(d)(2) of ECRA (50 U.S.C. 

4813(d)(2)) does not specifically direct 

the Secretary of Commerce to impose a 

license requirement on the activities of 

U.S. persons in connection with foreign 

military intelligence services, section 

1754(a)(16) of ECRA (50 U.S.C. 

4813(a)(16)) authorizes the Secretary to 

undertake any other action not 

otherwise prohibited by law to carry out 

the authorities granted to the President