Federal Register / Vol. 77, No. 182 / Wednesday, September 19, 2012 / Rules and Regulations 58003 

(3) Will not affect intrastate aviation 

in Alaska, and 

(4) Will not have a significant 

economic impact, positive or negative, 

on a substantial number of small entities 

under the criteria of the Regulatory 

Flexibility Act. 

List of Subjects in 14 CFR Part 39 

Air transportation, Aircraft, Aviation 

safety, Incorporation by reference, 

Safety. 

Adoption of the Amendment 

Accordingly, under the authority 

delegated to me by the Administrator, 

the FAA amends 14 CFR part 39 as 

follows: 

PART 39—AIRWORTHINESS 

DIRECTIVES 

■ 1. The authority citation for part 39 

continues to read as follows: 

Authority: 49 U.S.C. 106(g), 40113, 44701. 

§ 39.13 [Amended] 

■ 2. The FAA amends § 39.13 by 

removing airworthiness directive (AD) 

2011–13–05, Amendment 39–16728 (76 

FR 40222, July 8, 2011), and adding the 

following new AD: 

2012–18–18 Turbomeca S.A.: Amendment 

39–17195; Docket No. FAA–2011–0115; 

Directorate Identifier 2010–NE–40–AD. 

(a) Effective Date 

This airworthiness directive (AD) is 

effective October 24, 2012. 

(b) Affected ADs 

This AD supersedes AD 2011–13–05, 

Amendment 39–16728 (76 FR 40222, July 8, 

2011). 

(c) Applicability 

This AD applies to Turbomeca S.A. Arriel 

2B, 2B1, 2S2, and 2C2 turboshaft engines not 

modified by TU166 modification. 

(d) Unsafe Condition 

This AD was prompted by reports of an 

accident involving a twin-engine helicopter 

powered by two Arriel 2S2 engines. We are 

issuing this AD to prevent rupture of a gas 

generator (GG) turbine blade, which could 

result in an uncommanded in-flight 

shutdown and a forced landing or accident. 

(e) Compliance 

Comply with this AD within the 

compliance times specified, unless already 

done. 

(1) For Arriel 2B and 2B1 turboshaft 

engines, accomplish the TU166 modification 

in accordance with the instructions specified 

within Turbomeca Alert Mandatory Service 

Bulletin (MSB) No. A292 72 3166 Version B, 

dated September 20, 2010, when the GG 

Turbine is replaced or when the engine or 

Module M03 is going through overhaul or 

repair, or within 676 cycles-in-service (CIS) 

after the effective date of this AD, whichever 

occurs first. 

(2) For Arriel 2S2 turboshaft engines, 

accomplish the TU166 modification in 

accordance with the instructions specified 

within Turbomeca Alert MSB No. A292 72 

4166 Version A, dated March 23, 2012, when 

the GG Turbine is replaced or when the 

engine or Module M03 is going through 

overhaul or repair, or within 500 CIS after the 

effective date of this AD, whichever occurs 

first. 

(3) For Arriel 2C2 turboshaft engines, 

accomplish the TU166 modification in 

accordance with the instructions specified 

within Turbomeca Alert MSB No. A292 72 

5166 Version A, dated June 18, 2012, when 

the GG Turbine is replaced or when the 

engine or Module M03 is going through 

overhaul or repair or within 650 engine hours 

after the effective date of this AD, whichever 

occurs first. 

(f) Credit for Actions Accomplished in 

Accordance With Previous Service 

Information 

(1) For Arriel 2B and 2B1 turboshaft 

engines, if you performed the TU166 

modification before the effective date of this 

AD using Turbomeca Alert MSB No. A292 72 

3166 Version A, dated August 17, 2010, you 

met the requirements of paragraph (e)(1) of 

this AD. 

(2) For Arriel 2C2 and 2S2 turboshaft 

engines, if you performed the TU166 

modification before the effective date of this 

AD using Turbomeca Alert MSB No. A292 72 

2166 Version A, dated March 30, 2009, 

Version B, dated September 4, 2009, Version 

C, dated June 15, 2010, Version D, dated July 

28, 2010, Version E, dated October 4, 2010, 

Version F, dated May 13, 2011, or Version G, 

dated March 26, 2012, you met the 

requirements of paragraph (e)(2) or (e)(3) as 

applicable, of this AD. 

(g) Alternative Methods of Compliance 

(AMOCs) 

The Manager, Engine Certification Office, 

may approve AMOCs for this AD. Use the 

procedures found in 14 CFR 39.19 to make 

your request. 

(h) Related Information 

(1) For more information about this AD, 

contact Rose Len, Aerospace Engineer, 

Engine Certification Office, FAA, Engine & 

Propeller Directorate, 12 New England 

Executive Park, Burlington, MA 01803; 

phone: 781–238–7772; fax: 781–238–7199; 

email: rose.len@faa.gov. 

(2) European Aviation Safety Agency AD 

2012–0054, dated April 2, 2012, and AD 

2012–0124, dated July 9, 2012, also pertain 

to this AD. 

(i) Material Incorporated by Reference 

(1) The Director of the Federal Register 

approved the incorporation by reference 

(IBR) of the service information listed in this 

paragraph under 5 U.S.C. 552(a) and 1 CFR 

part 51. 

(2) You must use this service information 

as applicable to do the actions required by 

this AD, unless the AD specifies otherwise. 

(3) The following service information was 

approved for IBR on October 24, 2012. 

(i) Turbomeca Alert Mandatory Service 

Bulletin No. A292 72 4166 Version A, dated 

March 23, 2012. 

(ii) Turbomeca Alert Mandatory Service 

Bulletin No. A292 72 5166 Version A, dated 

June 18, 2012. 

(4) The following service information was 

approved for IBR on August 12, 2011 (76 FR 

40222, July 8, 2011). 

(i) Turbomeca Alert Mandatory Service 

Bulletin (MSB) No. A292 72 3166 Version B, 

dated September 20, 2010. 

(ii) Reserved. 

(5) For Turbomeca service information 

identified in this AD, contact Turbomeca, 

40220 Tarnos, France; phone: 33 (0)5 59 74 

40 00; telex: 570 042; fax: 33 (0)5 59 74 45 

15. 

(6) You may view this service information 

at FAA, Engine & Propeller Directorate, 12 

New England Executive Park, Burlington, 

MA. For information on the availability of 

this material at the FAA, call 781–238–7125. 

(7) You may view this service information 

at the National Archives and Records 

Administration (NARA). For information on 

the availability of this material at NARA, call 

202–741–6030, or go to: http://

www.archives.gov/federal-register/cfr/ibrlocations.html. 

Issued in Burlington, Massachusetts, on 

September 6, 2012. 

Robert G. Mann, 

Acting Manager, Engine & Propeller 

Directorate, Aircraft Certification Service. 

[FR Doc. 2012–22536 Filed 9–18–12; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2006–24785; Directorate 

Identifier 2006–NE–20–AD; Amendment 39– 

17196; AD 2012–19–01] 

RIN 2120–AA64 

Airworthiness Directives; Lycoming 

Engines Reciprocating Engines 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule. 

SUMMARY: We are superseding an 

existing airworthiness directive (AD) for 

certain Lycoming Engines (L)O–360, 

(L)IO–360, AEIO–360, O–540, IO–540, 

AEIO–540, (L)TIO–540, IO–580, and IO– 

720 series reciprocating engines. That 

AD currently requires replacing certain 

crankshafts in the affected engines. This 

AD continues to require replacing 

certain crankshafts, corrects the start 

date of affected engine models in 

Lycoming Mandatory Service Bulletin 

(MSB) No. 569A to the start date in 

Supplement No. 1 to Lycoming MSB 

No. 569A, dated May 27, 2009, and 


srobinson on DSK4SPTVN1PROD with RULES
58004 Federal Register / Vol. 77, No. 182 / Wednesday, September 19, 2012 / Rules and Regulations 

includes additional (formerly 

experimental) IO–390, AEIO–390, and 

AEIO–580 series engine models having 

affected crankshafts. This AD was 

prompted by Lycoming Engines 

discovering that the start date of affected 

engine models in MSB No. 569A is 

incorrect and the need to include 

additional engine models having the 

affected crankshafts. We are issuing this 

AD to prevent failure of the crankshaft, 

which will result in total engine power 

loss, in-flight engine failure, and 

possible loss of the aircraft. 

DATES: This AD is effective October 24, 

2012. 

The Director of the Federal Register 

approved the incorporation by reference 

of certain publications listed in the AD 

as of October 24, 2012. 

The Director of the Federal Register 

approved the incorporation by reference 

of a certain other publication listed in 

the AD as of November 3, 2006 (71 FR 

57407, September 29, 2006). 

ADDRESSES: For service information 

identified in this AD, contact Lycoming, 

652 Oliver Street, Williamsport, PA 

17701; phone: 570 323–6181; fax: 570– 

327–7101, or on the internet at 

www.Lycoming.Textron.com. You may 

view this service information at the 

FAA, Engine & Propeller Directorate, 12 

New England Executive Park, 

Burlington, MA. For information on the 

availability of this material at the FAA, 

call 781–238–7125. 

Examining the AD Docket 

You may examine the AD docket on 

the Internet at http:// 

www.regulations.gov; or in person at the 

Docket Management Facility between 9 

a.m. and 5 p.m., Monday through 

Friday, except Federal holidays. The AD 

docket contains this AD, the regulatory 

evaluation, any comments received, and 

other information. The address for the 

Docket Office (phone: 800–647–5527) is 

Document Management Facility, U.S. 

Department of Transportation, Docket 

Operations, M–30, West Building 

Ground Floor, Room W12–140, 1200 

New Jersey Avenue SE., Washington, 

DC 20590. 

FOR FURTHER INFORMATION CONTACT: 

Norm Perenson, Aerospace Engineer, 

New York Aircraft Certification Office, 

FAA, Engine & Propeller Directorate, 

1600 Stewart Avenue, Suite 410, 

Westbury, NY 11590; phone: 516–228– 

7337; fax: 516–794–5531; email: 

norman.perenson@faa.gov. 

SUPPLEMENTARY INFORMATION: 

Discussion 

We issued a supplemental notice of 

proposed rulemaking (SNPRM) to 

amend 14 CFR part 39 to supersede AD 

2006–20–09, amendment 39–14778 (71 

FR 57407, September 29, 2006). That 

AD applies to the specified products. 

The SNPRM published in the Federal 

Register on April 6, 2012 (77 FR 20743). 

The original NPRM (76 FR 50152, 

August 12, 2011) proposed to retain the 

requirements of AD 2006–20–09 to 

replace certain crankshafts and to 

correct the start date of MSB No. 569A 

from March 1, 1997 to January 1, 1997, 

which is the start date in Supplement 

No. 1 to Lycoming MSB No. 569A, dated 

May 27, 2009. The SNPRM proposed to 

add IO–390, AEIO–390, and AEIO–580 

series engine models that have the 

affected crankshafts to the applicability 

of the AD. The SNPRM also proposed to 

change Service Instruction No. 1009AS, 

dated May 25, 2006, to Service 

Instruction No. 1009AU, dated 

November 18, 2009, because Lycoming 

updated this service instruction. The 

changes to Service Instruction 1009AS 

do not affect the engine overhaul time. 

Comments 

We gave the public the opportunity to 

participate in developing this AD. The 

following presents the comment 

received on the proposal and the FAA’s 

response to that comment. 

Request To Determine if AD Applies to 

IO–360 Engine 

A commenter asked if the AD applies 

to the Lycoming Engine IO–360–A3B6D. 

We reply that this engine is listed in 

Lycoming MSB No. 569A, so if the 

crankshaft serial number of that engine 

is also listed in Table 5 of MSB No. 

569A, then the AD applies. 

Changes to Previous Credit Paragraph 

We reviewed our previous credit 

paragraph in the SNPRM (77 FR 20743, 

April 6, 2012) and found that not all the 

ADs and service bulletins (SBs) listed in 

paragraphs (f)(1) and (f)(2) of the 

SNPRM resolved the unsafe conditions. 

Accordingly, we changed the Credit for 

Previous Actions paragraphs, 

paragraphs (g)(1) and (g)(2) of this AD, 

retaining only Lycoming MSB No. 569A 

and AD 2006–20–09 (71 FR 57407, 

September 29, 2006) in the AD to 

resolve the unsafe condition and 

deleting all other ADs and SBs 

referenced in the SNPRM. Paragraphs 

(g)(1) and (g)(2) now read: ‘‘(1) If you 

previously complied with AD 2006–20– 

09 (71 FR 57407, September 29, 2006), 

no further action is required. (2) If you 

previously accomplished Lycoming 

MSB No. 569A, no further action is 

required.’’ 

Costs of Compliance Paragraph 

We reviewed the cost estimate made 

in AD 2006–20–09 (71 FR 57407, 

September 29, 2006) when we added the 

new affected engine models to the 

SNPRM (77 FR 20743, April 6, 2012). 

We found that the cost estimate in AD 

2006–20–09 included the number of 

affected engines worldwide rather than 

those installed only on aircraft of U.S. 

registry. We also found that the cost 

estimate in AD 2006–20–09 already 

included the engine models that we 

have now added to the applicability of 

this AD. Accordingly, we changed the 

number of affected engine models from 

3,774 to 2,831 and the overall cost 

estimate from $60,384,000 to 

$45,288,000. 

Conclusion 

We reviewed the relevant data, 

considered the comments received, and 

determined that air safety and the 

public interest require adopting the AD 

as proposed. 

Costs of Compliance 

We estimate that this AD affects 2,831 

engines installed on airplanes of U.S. 

registry. Because the AD compliance 

interval coincides with engine overhaul 

or other engine maintenance, we 

estimate no additional labor hours will 

be needed to comply with this AD. 

Required parts will cost about $16,000 

per engine. Based on these figures, we 

estimate the total cost of the AD to be 

$45,288,000. Our estimate is 

independent of any possible warranty 

coverage. 

Authority for This Rulemaking 

Title 49 of the United States Code 

specifies the FAA’s authority to issue 

rules on aviation safety. Subtitle I, 

Section 106, describes the authority of 

the FAA Administrator. Subtitle VII, 

Aviation Programs, describes in more 

detail the scope of the Agency’s 

authority. 

We are issuing this rulemaking under 

the authority described in Subtitle VII, 

Part A, Subpart III, Section 44701, 

‘‘General requirements.’’ Under that 

section, Congress charges the FAA with 

promoting safe flight of civil aircraft in 

air commerce by prescribing regulations 

for practices, methods, and procedures 

the Administrator finds necessary for 

safety in air commerce. This regulation 

is within the scope of that authority 

because it addresses an unsafe condition 

that is likely to exist or develop on 

products identified in this rulemaking 

action. 


srobinson on DSK4SPTVN1PROD with RULES
Federal Register / Vol. 77, No. 182 / Wednesday, September 19, 2012 / Rules and Regulations 58005 

Regulatory Findings 

We have determined that this AD will 

not have federalism implications under 

Executive Order 13132. This AD will 

not have a substantial direct effect on 

the States, on the relationship between 

the national government and the States, 

or on the distribution of power and 

responsibilities among the various 

levels of government. 

For the reasons discussed above, I 

certify that this AD: 

(1) Is not a ‘‘significant regulatory 

action’’ under Executive Order 12866, 

(2) Is not a ‘‘significant rule’’ under 

DOT Regulatory Policies and Procedures 

(44 FR 11034, February 26, 1979), 

(3) Will not affect intrastate aviation 

in Alaska, and 

(4) Will not have a significant 

economic impact, positive or negative, 

on a substantial number of small entities 

under the criteria of the Regulatory 

Flexibility Act. 

List of Subjects in 14 CFR Part 39 

Air transportation, Aircraft, Aviation 

safety, Incorporation by reference, 

Safety. 

Adoption of the Amendment 

Accordingly, under the authority 

delegated to me by the Administrator, 

the FAA amends 14 CFR part 39 as 

follows: 

PART 39—AIRWORTHINESS 

DIRECTIVES 

■ 1. The authority citation for part 39 

continues to read as follows: 

Authority: 49 U.S.C. 106(g), 40113, 44701. 

§ 39.13 [Amended] 

■ 2. The FAA amends § 39.13 by 

removing airworthiness directive (AD) 

2006–20–09, Amendment 39–14778 (71 

FR 57407), and adding the following 

new AD: 

2012–19–01 Lycoming Engines: 

Amendment 39–17196; Docket No. 

FAA–2006–24785; Directorate Identifier 

2006–NE–20–AD. 

(a) Effective Date 

This AD is effective October 24, 2012. 

(b) Affected ADs 

This AD supersedes AD 2006–20–09 (71 

FR 57407, September 29, 2006). 

(c) Applicability 

This AD applies to Lycoming Engines 

(L)O–360, (L)IO–360, AEIO–360, IO–390, 

AEIO–390, O–540, IO–540, AEIO–540, 

(L)TIO–540, IO–580, AEIO–580, and IO–720 

series reciprocating engines listed by engine 

model number and serial number in Table 1, 

Table 2, Table 3, or Table 4 of Lycoming 

Mandatory Service Bulletin (MSB) 569A, 

dated April 11, 2006, and those engines with 

crankshafts listed by crankshaft serial 

number in Table 5 of Lycoming MSB 569A, 

dated April 11, 2006. These applicable 

engines are manufactured new, rebuilt, 

overhauled, or had a crankshaft installed 

after January 1, 1997, according to 

Supplement No. 1 to Lycoming MSB No. 

569A, dated May 27, 2009. 

(d) Unsafe Condition 

This AD results from Lycoming Engines 

discovering that the March 1, 1997 start date 

of affected engine models in Lycoming MSB 

No. 569A, is incorrect. This AD also results 

from the need to include the IO–390, AEIO– 

390, and AEIO–580 series engine models 

having affected crankshafts. We are issuing 

this AD to prevent failure of the crankshaft, 

which will result in total engine power loss, 

in-flight engine failure, and possible loss of 

the aircraft. 

(e) Compliance 

You are responsible for having the actions 

required by this AD performed within the 

compliance times specified unless the 

actions have already been done. 

(f) Engines For Which Action Is Required 

If you did not previously comply with AD 

2006–20–09 or with MSB No. 569A, do the 

following: 

(1) If Table 1, Table 2, Table 3, or Table 

4 of Lycoming MSB No. 569A, dated April 

11, 2006, lists your engine serial number (S/ 

N), and Table 5 of MSB No. 569A, dated 

April 11, 2006, lists your crankshaft S/N, 

replace the affected crankshaft with a 

crankshaft that is not listed in Table 5 of 

MSB No. 569A at the earliest of the 

following: 

(i) The time of the next engine overhaul as 

specified in Lycoming Service Instruction 

No. 1009AU, dated November 18, 2009; or 

(ii) The next separation of the crankcase, or 

(iii) No later than 12 years from the time 

the crankshaft first entered service or was last 

overhauled, whichever is later. 

(2) If Table 1, Table 2, Table 3, or Table 

4 of Lycoming MSB No. 569A, dated April 

11, 2006, does not list your engine S/N, and 

Table 5 of MSB No. 569A does list your 

crankshaft S/N (an affected crankshaft was 

installed as a replacement), replace the 

affected crankshaft with a crankshaft that is 

not listed in Table 5 of MSB No. 569A at the 

earliest of the following: 

(i) The time of the next engine overhaul as 

specified in Lycoming Service Instruction 

No. 1009AU, dated November 18, 2009; or 

(ii) The next separation of the crankcase, or 

(iii) No later than 12 years from the time 

the crankshaft first entered service or was last 

overhauled, whichever is later. 

(g) Credit for Previous Actions 

(1) If you previously complied with AD 

2006–20–09 (71 FR 57407, September 29, 

2006), no further action is required. 

(2) If you previously accomplished 

Lycoming MSB No. 569A, no further action 

is required. 

(3) If Lycoming Engines manufactured 

new, rebuilt, overhauled, or repaired your 

engine, or replaced the crankshaft in your 

engine before January 1, 1997, and you have 

not had the crankshaft replaced, no further 

action is required. 

(4) If Table 1, Table 2, Table 3, or Table 

4 of Lycoming MSB No. 569A, dated April 

11, 2006, lists your engine S/N, and Table 5 

of MSB No. 569A, dated April 11, 2006, does 

not list your crankshaft S/N, no further action 

is required. 

(5) For engine model TIO–540–U2A, S/N 

L–4641–61A, no action is required. 

(h) Prohibition Against Installing Certain 

Crankshafts 

After the effective date of this AD, do not 

install any crankshaft that has a S/N listed in 

Table 5 of Lycoming MSB No. 569A, dated 

April 11, 2006, into any engine. 

(i) Alternative Methods of Compliance 

(AMOC) 

The Manager, New York Aircraft 

Certification Office, may approve AMOCs to 

this AD. Use the procedures in 14 CFR 39.19 

to make your request. AMOCs approved for 

AD 2002–19–03 (67 FR 59139, September 20, 

2002) and AD 2006–20–09 (71 FR 57407, 

September 29, 2006) are approved as AMOCs 

for this AD. 

(j) Related Information 

For more information about this AD, 

contact Norm Perenson, Aerospace Engineer, 

New York Aircraft Certification Office, FAA, 

Engine & Propeller Directorate, 1600 Stewart 

Avenue, Suite 410, Westbury, NY 11590; 

phone: 516–228–7337; fax: 516–794–5531; 

email: norman.perenson@faa.gov. 

(k) Material Incorporated by Reference 

(1) The Director of the Federal Register 

approved the incorporation by reference 

(IBR) of the following service information 

under 5 U.S.C. 552(a) and 1 CFR part 51. 

(2) You must use the following service 

information to do the actions required by this 

AD, unless the AD specifies otherwise. 

(3) The following service information was 

approved for IBR on October 24, 2012. 

(i) Lycoming Service Instruction No. 

1009AU, dated November 18, 2009. 

(ii) Lycoming Mandatory Service Bulletin, 

Supplement No. 1 to Service Bulletin No. 

569A, dated May 27, 2009. 

(4) The following service information was 

approved for IBR on November 3, 2006 (71 

FR 57407, September 29, 2006). 

(i) Lycoming Mandatory Service Bulletin 

No. 569A, dated April 11, 2006. 

(ii) Reserved. 

(5) For service information identified in 

this AD, contact Lycoming, 652 Oliver Street, 

Williamsport, PA 17701; phone: 570 323– 

6181; fax: 570–327–7101, or on the Internet 

at www.Lycoming.Textron.com. 

(6) You may view this service information 

at the FAA, Engine & Propeller Directorate, 

12 New England Executive Park, Burlington, 

MA. For information on the availability of 

this material at the FAA, call 781–238–7125. 

(7) You may view this service information 

at the National Archives and Records 

Administration (NARA). For information on 

the availability of this material at NARA, call 

202–741–6030, or go to: http:// 

www.archives.gov/federal-register/cfr/ibrlocations.html. 


srobinson on DSK4SPTVN1PROD with RULES
58006 Federal Register / Vol. 77, No. 182 / Wednesday, September 19, 2012 / Rules and Regulations 

Issued in Burlington, Massachusetts, on 

August 27, 2012. 

Colleen M. D’Alessandro, 

Assistant Manager, Engine & Directorate, 

Aircraft Certification Service. 

[FR Doc. 2012–22924 Filed 9–18–12; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF COMMERCE 

Bureau of Industry and Security 

15 CFR Part 744 

[Docket No. 120813330–2330–01] 

RIN 0694–AF74 

Addition of Certain Persons to the 

Entity List; Removal of Person From 

the Entity List Based on Removal 

Request; and Implementation of Entity 

List Annual Review Changes 

AGENCY: Bureau of Industry and 

Security, Commerce. 

ACTION: Final rule. 

SUMMARY: This rule amends the Export 

Administration Regulations (EAR) by 

adding six persons under eight entries 

to the Entity List. The persons who are 

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 persons will be 

listed on the Entity List under Iran and 

the United Arab Emirates (U.A.E.). 

In addition, this rule removes one 

person from the Entity List, as the result 

of a request for removal submitted by 

the person, a review of information 

provided in the removal request in 

accordance with the EAR, and further 

review conducted by the End-User 

Review Committee (ERC). 

Lastly, this rule amends the Entity 

List on the basis of the annual review 

conducted by the ERC. The ERC 

conducts annual reviews to determine if 

any entries on the Entity List should be 

removed or modified. This rule reflects 

the results of the annual review of 

entities located in Belarus, Canada, the 

People’s Republic of China (China), 

Egypt, Germany, Hong Kong, Ireland, 

Israel, Kuwait, Lebanon, Malaysia, 

Pakistan, Singapore, South Africa, 

Taiwan, and the United Kingdom. On 

the basis of the annual review, this rule 

removes fourteen entries, adds three 

entries, and amends thirty-six other 

entries. 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. 

DATES: Effective Date: This rule is 

effective September 19, 2012. 

FOR FURTHER INFORMATION CONTACT: 

Karen Nies-Vogel, 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) provides notice to the public 

that certain exports, reexports, and 

transfers (in-country) to entities 

identified on the Entity List require a 

license from BIS and that the 

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 ERC, composed of representatives 

of the Departments of Commerce 

(Chair), State, Defense, Energy and, 

when appropriate, the Treasury, makes 

all decisions regarding additions to, 

removals from, or other modifications to 

the Entity List. The ERC makes all 

decisions to add an entry to the Entity 

List by majority vote and all decisions 

to remove or modify an entry by 

unanimous vote. 

ERC Entity List decisions 

Additions to the Entity List 

This rule implements the decision of 

the ERC to add six persons under eight 

entries to the Entity List on the basis of 

Section 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 eight entries, two of which are 

alternate addresses of two of the persons 

being added to the Entity List, consist of 

two entries in Iran and six entries in the 

U.A.E. 

The ERC reviewed Section 744.11(b) 

(Criteria for revising the Entity List) in 

making the determination to add these 

persons to the Entity List. Under that 

paragraph, persons for which there is 

reasonable cause to believe, based on 

specific and articulable facts, that the 

persons 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 

pursuant to Section 744.11. Paragraphs 

(b)(1)–(b)(5) of Section 744.11 include 

an illustrative list of activities that could 

be contrary to the national security or 

foreign policy interests of the United 

States. 

The six persons being added to the 

Entity List under this rule have been 

determined by the ERC to be involved 

in activities that are contrary to the 

national security or foreign policy 

interests of the United States. Two of 

the persons being added to the Entity 

List under this rule, Seyed Mahdi 

Mousavi (‘‘Mousavi’’) and his company, 

Seyed Mousavi Trading, are located in 

the U.A.E. and in Iran. BIS’s 

investigation of Mousavi and his 

company, Seyed Mousavi Trading, 

indicates that he, individually, and by 

and through his company, knowingly 

acquired U.S.-origin items for 

transshipment to Iran through the 

U.A.E. and Hong Kong. Further, the 

investigation indicates that the 

shipments to Iran included shipments to 

a person on the Denied Persons List (see 

section 764.3(a)(2) of the EAR). 

Therefore, pursuant to Section 

744.11(b)(5) of the EAR, the ERC 

determined that Mousavi and Seyed 

Mousavi Trading are knowingly and 

willfully engaging in the transshipment 

of U.S.-origin equipment subject to the 

EAR, without the required Department 

of Commerce or Department of the 

Treasury, Office of Foreign Assets 

Control (OFAC) export licenses, for use 

in Iran in violation of the embargo 

against Iran as specified in the Iranian 

Transactions Regulations (31 CFR Part 

560). Iran has been designated by the 

Secretary of State as a country that has 

repeatedly provided support for acts of 

international terrorism. In addition, 

pursuant to paragraph (b) of 

Supplement No. 1 to Part 764 of the 

EAR, no person may, directly or 

indirectly, export or reexport any item 

subject to the EAR to or on behalf of a 

denied person. 

The other four persons being added to 

the Entity List under this rule, Fajr 

Almadeena Electronics (FAE) and its 

owners, Alex Nouri Zadeh, Mohammad 

Nayeb, and Jamal Hasan are all located 

in the U.A.E. BIS’s investigation 

indicates that FAE was listed as a 

recipient of hundreds of U.S.-origin 

items. Although FAE claims that the 

items it receives remain in the U.A.E. 

and that it is the end-user of record, 

FAE principals have not been able to 

provide information on the items’ 

current location or end-use. Moreover, 

BIS’s investigation indicates that FAE’s 

office space is inappropriate for end-use 

in situ of the items shipped. Therefore, 

pursuant to Section 744.11(b)(4) and 

(b)(5) of the EAR, the ERC determined 


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