[Federal Register Volume 89, Number 200 (Wednesday, October 16, 2024)]
[Rules and Regulations]
[Pages 83428-83431]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-23638]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 744

[Docket No. 241004-0262]
RIN 0694-AJ91


Revisions to the Unverified List

AGENCY: Bureau of Industry and Security, Department of Commerce.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Bureau of Industry and Security (BIS) is amending the 
Export Administration Regulations (EAR) by adding eight persons to the 
Unverified List (UVL). Of the eight persons being added, three are 
under the destination of China, People's Republic of (China); two are 
under the destination of Germany; one is under the destination of 
Pakistan; and two are under the destination of T[uuml]rkiye. BIS is 
also amending the EAR by removing two persons from the UVL. Of the two 
persons being removed, one is under the destination of Saudi Arabia, 
and the other is under the destination of China.

DATES: This rule is effective October 16, 2024.

FOR FURTHER INFORMATION CONTACT: Deniz Muslu, Director, Office of 
Enforcement Analysis, Phone: (202) 482-4255, Email: 
<a href="/cdn-cgi/l/email-protection#9acfccd6e8ffebefffe9eedaf8f3e9b4fef5f9b4fdf5ec"><span class="__cf_email__" data-cfemail="782d2e340a1d090d1d0b0c381a110b561c171b561f170e">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION:

Background

    The Unverified List (UVL), found in supplement no. 6 to part 744 of 
the EAR (15 CFR parts 730-774), contains the names and addresses of 
foreign persons who are or have been parties to a transaction, as 
described in Sec.  748.5 of the EAR, involving the export, reexport, or 
transfer (in-country) of items subject to the EAR. These foreign 
persons are added to the UVL because BIS or federal officials acting on 
BIS's behalf were unable to verify their bona fides (i.e., legitimacy 
and reliability relating to the end use and end user of items subject 
to the EAR) through the completion of an end-use check. Sometimes these 
checks, such as a pre-license check (PLC) or a post-shipment 
verification (PSV), cannot be completed satisfactorily for reasons 
outside the U.S. Government's control.
    There are any number of reasons why these checks cannot be 
completed to the satisfaction of the U.S. Government. The reasons 
include, but are not limited to: (1) reasons unrelated to the 
cooperation of the foreign party subject to the end-use check (e.g., 
BIS sometimes initiates end-use checks but is unable to complete them 
because the foreign party cannot be found at the address indicated on 
the associated export documents and BIS cannot contact the party by 
telephone or email); (2) reasons related to a lack of cooperation by a 
host government that fails to schedule and facilitate the completion of 
an end-use check (e.g., a host government agencies' lack of responses 
to requests to conduct end-use checks, actions preventing the 
scheduling of such checks, or refusals to schedule checks in a timely 
manner); or (3) when, during the end-use check, a recipient of items 
subject to the EAR is

[[Page 83429]]

unable to produce the items that are the subject of the end-use check 
for visual inspection or provide sufficient documentation or other 
evidence to confirm the disposition of the items.
    BIS's inability to confirm the bona fides of foreign persons 
subject to end-use checks raises concerns about the suitability of such 
persons as participants in future exports, reexports, or transfers (in-
country) of items subject to the EAR; an inability to confirm bona 
fides also indicates a risk that such items may be diverted to 
prohibited end uses and/or end users. Under such circumstances, there 
may not be sufficient information to add the foreign person at issue to 
the Entity List (supplement no. 4 to part 744 of the EAR). Therefore, 
BIS may add the foreign person to the UVL.
    As provided in Sec.  740.2(a)(17) of the EAR, the use of license 
exceptions for exports, reexports, and transfers (in-country) involving 
a party or parties to the transaction who are listed on the UVL is 
suspended. Additionally, under Sec.  744.15(b) of the EAR, there is a 
requirement for exporters, reexporters, and transferors to obtain (and 
maintain a record of) a UVL statement from a party or parties to a 
transaction who are listed on the UVL before proceeding with exports, 
reexports, and transfers (in-country) to such persons, when the items 
to be exported, reexported or transferred (in-country) are not subject 
to a license requirement. Finally, pursuant to Sec.  758.1(b)(8), 
Electronic Export Information (EEI) must be filed in the Automated 
Export System (AES) for all exports of tangible items subject to the 
EAR where parties to the transaction, as described in Sec.  748.5(d) 
through (f), are listed on the UVL.
    Requests for the removal of a UVL entry must be made in accordance 
with Sec.  744.15(d) of the EAR. Decisions regarding the removal or 
modification of UVL entry will be made by the Deputy Assistant 
Secretary for Export Enforcement, based on a demonstration by the 
listed person of their bona fides. As provided in Sec.  744.15(c)(2) of 
the EAR, BIS will remove a person from the UVL when BIS is able to 
verify the bona fides of the listed person.

Additions to the UVL

    This rule adds eight persons to the UVL by amending supplement no. 
6 to part 744 of the EAR to include their names and addresses. BIS is 
adding these persons pursuant to Sec.  744.15(c) of the EAR. This final 
rule implements the decision to add the following eight persons located 
in the following destinations to the UVL: Hengye Technology Co., Ltd.; 
Skytop Electronics Ltd.; and YXS Technology Co., Ltd., under the 
destination of China; Arabian Aviation Trade Group and Tiptrans 
Limited, under the destination of Germany; Marshal Traders, under the 
destination of Pakistan; and Pegasus Technic Services and Vast 
Polymers, Ambalaj Sanayi Ve Ticaret Limited Sirketi, under the 
destination of T[uuml]rkiye.

Removals From the UVL

    This rule removes two persons from the UVL because BIS was able to 
verify their bona fides. This rule removes the following two persons 
located in the following destinations from the UVL: Shengwei Technology 
Co., Ltd., under the destination of China; and Al Gihaz Co., Ltd. for 
Contracting and Trading, under the destination of Saudi Arabia. BIS is 
removing these persons pursuant to Sec.  744.15(c)(2) of the EAR.

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 final rule. In 
particular, section 1753 of ECRA (50 U.S.C. 4812) authorizes the 
regulation of exports, reexports, and transfers (in-country) of items 
subject to U.S. jurisdiction. Further, section 1754(a)(1)-(16) of ECRA 
(50 U.S.C. 4813(a)(1)-(16)) authorizes, inter alia, requiring measures 
for compliance with the export controls established under ECRA; 
requiring and obtaining such information from U.S. persons and foreign 
persons as is necessary to carry out ECRA; apprising the public of 
changes in policy, regulations, and procedures; and any other action 
necessary to carry out ECRA that is not otherwise prohibited by law. 
Pursuant to section 1762(a) of ECRA (50 U.S.C. 4821(a)), these changes 
can be imposed in a final rule without prior notice and comment.

Savings Clause

    Shipments (1) that are removed from license exception eligibility 
or that are now subject to requirements in Sec.  744.15 of the EAR as a 
result of this regulatory action; (2) that were eligible for export, 
reexport, or transfer (in-country) without a license before this 
regulatory action; and (3) that were on dock for loading, on lighter, 
laden aboard an exporting carrier, or enroute aboard a carrier to a 
port of export, on October 16, 2024, pursuant to actual orders, may 
proceed to that UVL listed person under the previous license exception 
eligibility or without a license and pursuant to the export clearance 
requirements set forth in part 758 of the EAR that applied prior to 
this person being listed on the UVL, so long as the items have been 
exported from the United States, reexported or transferred (in-country) 
before November 15, 2024. Any such items not actually exported, 
reexported or transferred (in-country) before midnight on November 15, 
2024 are subject to the requirements in Sec.  744.15 of the EAR in 
accordance with this rule.

Executive Order Requirements

    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, distribute 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 final rule is not a ``significant regulatory action'' 
under Executive Order 12866.
    This rule does not contain policies with federalism implications as 
that term is defined under Executive Order 13132.

Paperwork Reduction Act Requirements

    Notwithstanding any other provision of law, no person is required 
to respond to, nor is 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.
    The UVL additions contain collections of information approved by 
OMB under the following control numbers:

<bullet> OMB Control Number 0694-0088--Simple Network Application 
Process and Multipurpose Application Form
<bullet> OMB Control Number 0694-0122--Miscellaneous Licensing 
Responsibilities and Enforcement
<bullet> OMB Control Number 0694-0134--Entity List and Unverified List 
Requests,
<bullet> OMB Control Number 0694-0137--License Exemptions and 
Exclusions.

    BIS believes that the overall increases in burdens and costs will 
be minimal

[[Page 83430]]

and will fall within the already approved amounts for these existing 
collections. Additional information regarding these collections of 
information--including all background materials--can be found at 
https://www.reginfo.gov/public/do/PRAMain by using the search function 
to enter either the title of the collection or the OMB Control Number.

Administrative Procedure Act and Regulatory Flexibility Act 
Requirements

    Pursuant to section 1762 of ECRA (50 U.S.C. 4821), this action is 
exempt from the Administrative Procedure Act (5 U.S.C. 553) 
requirements for notice of proposed rulemaking and opportunity for 
public participation.
    Further, no other law requires notice of proposed rulemaking or 
opportunity for public comment for this final rule. Because a notice of 
proposed rulemaking and an opportunity for public comment are not 
required under the Administrative Procedure Act 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.

    Accordingly, part 744 of the Export Administration Regulations (15 
CFR parts 730 through 774) is amended as follows:

PART 744--CONTROL POLICY: END-USER AND END-USE BASED

0
1. The authority citation for 15 CFR part 744 is revised 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, 2024, 89 FR 77011 (September 23, 2024).


0
2. Supplement no. 6 to part 744 is amended:
0
a. Under CHINA, PEOPLE'S REPUBLIC OF, by:
0
i. Adding the entry, in alphabetical order, for ``Hengye Technology 
Co., Ltd.;''
0
ii. Removing the entry for ``Shengwei Technology Co., Ltd.;'' and
0
iii. Adding the entries, in alphabetical order, for ``Skytop 
Electronics Ltd.'' and ``YXS Technology Co., Ltd.;''
0
b. Under GERMANY, by adding entries, in alphabetical order, for 
``Arabian Aviation Trade Group'' and ``Tiptrans Limited;''
0
c. Under PAKISTAN, by adding an entry, in alphabetical order, for 
``Marshal Traders;''
0
d. Removing the entry for SAUDI ARABIA; and
0
e. Under T[Uuml]RKIYE, by adding an entry, in alphabetical order, for 
``Pegasus Technic Services'' and ``Vast Polymers, Ambalaj Sanayi Ve 
Ticaret Limited Sirketi.''
    The additions read as follows:

Supplement No. 6 to Part 744--Unverified List

* * * * *

------------------------------------------------------------------------
                               Listed person and       Federal Register
         Country                    address                citation
------------------------------------------------------------------------
 
                              * * * * * * *
CHINA, PEOPLES REPUBLIC                      * * * * * *
 OF.
                           Hengye Technology Co.,    89 FR [INSERT
                            Ltd., 1602 Zhonghang      FEDERAL REGISTER
                            Road, Dingcheng           PAGE NUMBER],
                            International Building,   October 16, 2024.
                            Futian District,
                            Shenzhen, Guangdong,
                            China.
                                             * * * * * *
                           Skytop Electronics Ltd.,  89 FR [INSERT
                            Room 619, Park Fook       FEDERAL REGISTER
                            Industrial Building,      PAGE NUMBER],
                            615-617 Tai Nan West      October 16, 2024.
                            Street, Cheung Sha Wan,
                            Kowloon, Hong Kong; and
                            7/F, MW Tower, 111
                            Bonham Strand, Sheung
                            Wan, Hong Kong.
                                             * * * * * *
                           YXS Technology Co.,       89 FR [INSERT
                            Ltd., Room 608, 6/F,      FEDERAL REGISTER
                            West Tower, Fiyta         PAGE NUMBER],
                            Building, Huaqian North   October 16, 2024.
                            Street, Futian
                            District, Shenzhen,
                            Guangdong, China.
                                             * * * * * *
------------------------------------------------------------------------
 
                              * * * * * * *
GERMANY..................  Arabian Aviation Trade    89 FR [INSERT
                            Group, a.k.a. AAT,        FEDERAL REGISTER
                            Wassmanstrasse 16,        PAGE NUMBER],
                            D30459 Hannover,          October 16, 2024.
                            Germany.
                                             * * * * * *
                           Tiptrans Limited,         89 FR [INSERT
                            Hauptstrasse 22, D02727   FEDERAL REGISTER
                            Neugersdorg, Germany.     PAGE NUMBER],
                                                      October 16, 2024.
                                             * * * * * *
------------------------------------------------------------------------
 
                              * * * * * * *
PAKISTAN.................                    * * * * * *
                           Marshal Traders, Office-  89 FR [INSERT
                            5, 41st Street, Block-H   FEDERAL REGISTER
                            Soan Garden, Islamabad,   PAGE NUMBER],
                            Pakistan; and Magnum      October 16, 2024.
                            Arcade, Apt #207, 2nd
                            Floor North Strip
                            Federation Markaz,
                            Islamabad, Pakistan.
                                             * * * * * *
------------------------------------------------------------------------
T[Uuml]RKIYE.............                    * * * * * *
                           Pegasus Technic           89 FR [INSERT
                            Services, a.k.a.          FEDERAL REGISTER
                            Pegasus Teknik Servis     PAGE NUMBER],
                            and Air Technic           October 16, 2024.
                            Services, OBA Mah.
                            Karakuslar Sk. Berfin
                            Sitesi, B Blok No: 2B
                            No: 2 Alanya, Antalya,
                            T[uuml]rkiye.
                                             * * * * * *

[[Page 83431]]

 
                           Vast Polymers, Ambalaj    89 FR [INSERT
                            Sanayi Ve Ticaret         FEDERAL REGISTER
                            Limited Sirketi, a.k.a.   PAGE NUMBER],
                            Novaroll, Atakoy 7-8-9-   October 16, 2024.
                            10, Kisim Mah.
                            Cobancesme, E-5 Yan Yol
                            Cad. A No: 22/1 Ic
                            Kapi: 164 Bakirkoy,
                            Istanbul, T[uuml]rkiye.
 
                              * * * * * * *
------------------------------------------------------------------------


Matthew S. Borman,
Principal Deputy Assistant Secretary for Strategic Trade and Technology 
Security.
[FR Doc. 2024-23638 Filed 10-15-24; 8:45 am]
BILLING CODE 3510-33-P


</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>