Federal Register / Vol. 77, No. 230 / Thursday, November 29, 2012 / Rules and Regulations 71097 

DEPARTMENT OF COMMERCE 

Bureau of Industry and Security 

15 CFR Part 744 

[Docket No. 121009527–2527–01] 

RIN 0694–AF80 

Addition of Certain Persons to the 

Entity List 

AGENCY: Bureau of Industry and 

Security, Commerce. 

ACTION: Final rule. 

SUMMARY: This rule amends the Export 

Administration Regulations (EAR) by 

adding two persons to the Entity List 

and revising one existing entry. 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 one destination. The two entries 

added to the Entity List consist of two 

entries in Pakistan. This rule is also 

revising one existing entry in the U.A.E. 

to clarify the scope of the entry by 

providing an additional alias and 

alternate address for this listed person. 

The Entity List notifies the public that 

certain exports, reexports, and transfers 

(in-country) of items subject to the EAR 

to entities identified on the Entity List 

require licenses from the Bureau of 

Industry and Security (BIS) and that in 

most instances license exceptions are 

unavailable for such transactions. BIS 

usually applies a license review policy 

of denial because it considers such 

entities to present significant risks of 

diversion to weapons of mass 

destruction (WMD) programs, terrorism, 

or other activities that are contrary to 

U.S. national security or foreign policy 

interests. By publicly listing such 

entities, BIS seeks to assist legitimate 

exporters, reexporters and transferors, 

and other parties participating in 

transactions that are subject to the EAR 

by providing them with information to 

detect and avoid high risk transactions 

with those entities, which in most cases 

means any transaction that involves 

items that are subject to the EAR. 

DATES: Effective Date: This rule is 

effective November 29, 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) notifies the public about 

entities that have engaged in activities 

that could result in an increased risk of 

the diversion of exported, reexported or 

transferred (in-country) items to 

weapons of mass destruction (WMD) 

programs. Since its initial publication, 

grounds for inclusion on the Entity List 

have expanded to include activities 

sanctioned by the State Department and 

activities contrary to U.S. national 

security or foreign policy interests, 

including terrorism and export control 

violations involving abuse of human 

rights. Certain exports, reexports, and 

transfers (in-country) to entities 

identified on the Entity List require 

licenses from BIS and are usually 

subject to a policy of denial. The 

availability of license exceptions in 

such transactions is very limited. The 

license review policy for each entity is 

identified in the license review policy 

column on the Entity List and the 

availability of license exceptions is 

noted in the Federal Register notices 

adding persons to the Entity List. BIS 

places entities on the Entity List based 

on 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 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 two persons to the Entity 

List on the basis of § 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 two entries 

added to the Entity List consist of two 

entries in Pakistan. 

The ERC reviewed § 744.11(b) 

(Criteria for revising the Entity List) in 

making the determination to add these 

two persons 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 and those acting on behalf of such 

persons may be added to the Entity List 

pursuant to § 744.11. Paragraphs (b)(1)– 

(b)(5) of § 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 two persons being added under 

Pakistan, Mohammad Azam and Azam 

Electronics, are believed to have been 

involved in activities described under 

paragraphs (b)(1) and (b)(2) of § 744.11. 

Mohammad Azam owns and directs 

Azam Electronics in Chaman, Pakistan. 

There are entities operating in Chaman, 

Pakistan, that support violent extremist 

organizations that use Improvised 

Explosive Devices (IEDs) in Pakistan 

and Afghanistan to further their 

terrorist-related objectives. Electronic 

components sourced from Azam 

Electronics are used as triggering 

devices in IEDs that are being used in 

Afghanistan and Pakistan. 

For the two persons added to the 

Entity List and the one modified entry 

described below, the ERC specified a 

license requirement for all items subject 

to the EAR, and established a license 

application review policy of a 

presumption of denial. The license 

requirement applies to any transaction 

in which items are to be exported, 

reexported, or transferred (in-country) to 

such persons or in which such persons 

act as purchaser, intermediate 

consignee, ultimate consignee, or enduser. In addition, no license exceptions 

are available for exports, reexports, or 

transfers (in-country) to those persons 

being added to the Entity List. 

This final rule adds the following two 

persons to the Entity List: 

Pakistan 

(1) Azam Electronics, a.k.a., the 

following two aliases: 

—Mohammad Azam Electronics, and 

—Akram Dish TV Satellite Center, 

Chaman, Killa, Abdullah District, 

Baluchistan Province, Pakistan; and 

(2) Mohammad Azam, a.k.a: 

—Mohammad Akram, Chaman, Killa, 

Abdullah District, Baluchistan 

Province, Pakistan. 

Modification to the Entity List 

On the basis of a decision made by the 

ERC, in addition to the two Pakistani 

additions described above, this rule 

amends one entry currently on the 

Entity List under the U.A.E. The 

amendments provide one additional 

alias and one alternate address for this 

listed person, as follows: 


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71098 Federal Register / Vol. 77, No. 230 / Thursday, November 29, 2012 / Rules and Regulations 

United Arab Emirates 

(1) Infotec, a.k.a., the following two 

aliases: 

—Info Tech, and 

—I. Tec Trading FZE, P.O Box 10559, 

Ras Al Khaimah, U.A.E.; and Ras Al 

Khaimah Free Trade Zone 

(RAKFTZ), U.A.E. 

Revision of Authority Citation for Part 

744 

On November 14, 1994, by Executive 

Order 12938, the President declared a 

national emergency with respect to the 

unusual and extraordinary threat to the 

national security, foreign policy, and 

economy of the United States posed by 

the proliferation of nuclear, biological, 

and chemical weapons (weapons of 

mass destruction) and the means of 

delivering such weapons. The authority 

for authority for parts 730, 734, 736, 

742, 744 and 745 of the Export 

Administration Regulations (15 CFR 

parts 730–774) rests in part on that 

executive order and the annual notices 

continuing the international emergency 

declared therein. This rule revises the 

authority citations paragraph to part 744 

of the EAR (15 CFR part 730) to include 

citations to the President’s Notice of 

November 1, 2012—Continuation of the 

National Emergency With Respect to 

Weapons of Mass Destruction (77 FR 

66513, November 5, 2012), which is the 

most recent such annual notice. 

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 en route aboard a 

carrier to a port of export or reexport, on 

November 29, 2012, 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). 

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 15, 2012, 77 FR 49699 

(August 16, 2012), has continued the 

Export Administration Regulations in 

effect under the International 

Emergency Economic Powers Act. BIS 

continues to carry out the provisions of 

the Export Administration Act, as 

appropriate and to the extent permitted 

by law, pursuant to Executive Order 

13222. 

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. 

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 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. The provisions of the 

Administrative Procedure Act (5 U.S.C. 

553) requiring notice of proposed 

rulemaking, the opportunity for public 

comment 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)). BIS implements this 

rule to protect U.S. national security or 

foreign policy interests by preventing 

items from being exported, reexported, 

or transferred (in country) to the persons 

being added to the Entity List. If this 

rule were delayed to allow for notice 

and comment and a delay in effective 

date, then entities being added to the 

Entity List by this action would 

continue to be able to receive items 

without a license and to conduct 

activities contrary to the national 

security or foreign policy interests of the 

United States. In addition, because these 

parties may receive notice of the U.S. 

Government’s intention to place these 

entities on the Entity List once a final 

rule was published, it would create an 

incentive for these persons to either 

accelerate receiving items subject to the 

EAR to conduct activities that are 

contrary to the national security or 

foreign policy interests of the United 

States, and/or to take steps to set up 

additional aliases, change addresses, 

and other measures to try to limit the 

impact of the listing on the Entity List 

once a final rule was published. 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. 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] 

■ 1. The authority citation for 15 CFR 

part 744 is revised 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 January 19, 2012, 77 FR 3067 

(January 20, 2012) Notice of August 15, 2012, 

77 FR 49699 (August 16, 2012); Notice of 

September 11, 2012, 77 FR 56519 

(September, 12, 2012); Notice of November 1, 

2012, 77 FR 66513 (November 5, 2012). 

■ 2. Supplement No. 4 to part 744 is 

amended: 

■ a. By adding under Pakistan, in 

alphabetical order, two Pakistani 

entities; and 


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Federal Register / Vol. 77, No. 230 / Thursday, November 29, 2012 / Rules and Regulations 71099 

■ b. By revising under the United Arab 

Emirates, the Emirati entity, Infotec, 

a.k.a., Info Tech, Ras Al Khaimah Free 

Trade Zone (RAKFTZ), U.A.E. 

The additions and revisions read as 

follows: 

Supplement No. 4 to Part 744—Entity 

List 

Country Entity License requirement License review policy Federal Register 

citation 

*******

PAKISTAN 

*******

Azam Electronics, a.k.a., the following two 

aliases: 

—Mohammad Azam Electronics, and 

—Akram Dish TV Satellite Center, 

Chaman, Killa, Abdullah District, Baluchistan 

Province, Pakistan 

For all items subject to 

the EAR. (See 

§ 744.11 of the EAR) 

Presumption of denial. 77 FR [INSERT FR 

PAGE NUMBER] 

11/30/12. 

*******

Mohammad Azam, a.k.a, 

—Mohammad Akram, 

Chaman, Killa, Abdullah District, Baluchistan 

Province, Pakistan 

For all items subject to 

the EAR. (See 

§ 744.11 of the EAR) 

Presumption of denial. 77 FR [INSERT FR 

PAGE NUMBER] 

11/30/12. 

*******

UNITED ARAB 

EMIRATES 

*******

Infotec, a.k.a., the following two aliases: 

—Info Tech, and 

—I. Tec Trading FZE, 

P.O. Box 10559, Ras Al Khaimah, U.A.E.; and 

Ras Al Khaimah Free Trade Zone (RAKFTZ), 

U.A.E. 

For all items subject to 

the EAR. (See 

§ 744.11 of the EAR) 

Presumption of denial. 76 FR 78146, 12/16/11. 

77 FR [INSERT FR 

PAGE NUMBER] 

11/30/12. 

*******

Dated: November 26, 2012. 

Kevin J. Wolf, 

Assistant Secretary for Export 

Administration. 

[FR Doc. 2012–28919 Filed 11–28–12; 8:45 am] 

BILLING CODE 3510–33–P 

DEPARTMENT OF HOUSING AND 

URBAN DEVELOPMENT 

24 CFR Part 203 

[Docket No. FR–5397–N–05] 

RIN 2502–ZA05 

Federal Housing Administration (FHA): 

Temporary Waiver of FHA’s Regulation 

on Property Flipping; Extension of 

Waiver 

AGENCY: Office of the Assistant 

Secretary for Housing—Federal Housing 

Commissioner, HUD. 

ACTION: Notice of waiver extension. 

SUMMARY: This notice of waiver 

extension announces that FHA is 

extending the availability of the 

temporary waiver of its regulation that 

prohibits the use of FHA financing to 

purchase single family properties that 

are being resold within 90 days of the 

previous acquisition, until December 31, 

2014. This waiver, which was first 

issued in January 2010, took effect for 

all sales contracts executed on or after 

February 1, 2010. On January 28, 2011, 

FHA extended the waiver through 

calendar 2011. On December 28, 2011, 

FHA extended the waiver through 

calendar 2012. Prior to the waiver, a 

mortgage was not eligible for FHA 

insurance if the contract of sale for the 

purchase of the property that secured 

the mortgage was executed within 90 

days of the prior acquisition by the 

seller, and the seller did not come under 

any of the exemptions to this 90-day 

period specified in the regulation. 

Through the regulatory waiver, FHA 

encourages investors that specialize in 

acquiring and renovating properties to 

renovate foreclosed and abandoned 

homes, with the objective of increasing 

the availability of affordable homes for 

first-time and other purchasers, helping 

to stabilize real estate prices as well as 

neighborhoods and communities where 

foreclosure activity has been high. The 

waiver is applicable to all single family 

properties being resold within the 90- 

day period after prior acquisition, and is 

not limited to foreclosed properties. 

Additionally, the waiver is subject to 

certain conditions, and mortgages must 

meet these conditions to be eligible for 

the waiver. The waiver is not applicable 

to mortgages insured under HUD’s 

Home Equity Conversion Mortgage 

(HECM) Program. 

DATES: Effective Date: January 1, 2013 

through December 31, 2014. 

FOR FURTHER INFORMATION CONTACT: 

Karin B. Hill, Director, Office of Single 

Family Program Development, Office of 

Housing, Department of Housing and 

Urban Development, 451 7th Street SW., 

Washington, DC 20410–8000; telephone 

number 202–708–2121 (this is not a tollfree number). Persons with hearing or 

speech impairments may access this 

number through TTY by calling the tollfree Federal Relay Service at 800–877– 

8339. 

SUPPLEMENTARY INFORMATION: 

I. Background 

Section 203.37a(b)(2) of HUD’s 

regulations (24 CFR 203.37a(b)(2)) 

establishes FHA’s rule on recent resales 


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