Document ID: BIS-2015-0005-0001
Agency: bis
Document Type: Rule
Title: Unverified List (UVL) Revisions
Posted Date: 2015-01-29T05:00Z

[Federal Register Volume 80, Number 19 (Thursday, January 29, 2015)]
[Rules and Regulations]
[Pages 4779-4783]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-01639]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 744

[Docket No. 141104925-4925-01]
RIN 0694-AG35

Revisions to the Unverified List (UVL)

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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SUMMARY: The Bureau of Industry and Security (BIS) is amending the 
Export Administration Regulations (EAR) by adding fourteen (14) 
persons, removing one person, and updating the addresses of other 
persons listed on the Unverified List (the ``Unverified List'' or UVL). 
The 14 persons are being added to the UVL on the basis that BIS could 
not verify their bona fides because an end-use check could not be 
completed satisfactorily for reasons outside the U.S. Government's 
control. One person is removed from the UVL based on BIS's ability to 
verify that person's bona fides through the successful completion of an 
end-use check. Also, new addresses are added for two listed persons on 
the UVL.

DATES: Effective date: This rule is effective: January 29, 2015.

FOR FURTHER INFORMATION CONTACT: Kevin Kurland, Director, Office of 
Enforcement Analysis, Bureau of Industry and Security, Department of 
Commerce, Phone: (202) 482-4255 or by email at UVLRequest@bis.doc.gov.

SUPPLEMENTARY INFORMATION: 

Background

    Supplement No. 6 to Part 744 (``the UVL'') contains the names and 
addresses of foreign persons who are or have been parties to a 
transaction, as that term is described in Sec.  748.5 of the EAR, 
involving the export, reexport, or transfer (in-country) of items 
subject to the EAR, and whose bona fides BIS has been unable to verify 
through an end-use check. BIS may add persons to the UVL when BIS or 
federal officials acting on BIS's behalf have been unable to verify a 
foreign person's bona fides (i.e., legitimacy and reliability relating 
to the end use and end user of items subject to the EAR) because an 
end-use check, such as a pre-license check (PLC) or a post-shipment 
verification (PSV), cannot be completed satisfactorily for such 
purposes for reasons outside the U.S. Government's control.
    End-use checks cannot be completed for a number of reasons, 
including reasons unrelated to the cooperation of the foreign party 
subject to the end-use check. For example, BIS sometimes initiates end-
use checks and cannot find a foreign party at the address indicated on 
export documents, and cannot locate the party by telephone or email. 
Additionally, BIS sometimes is unable to conduct end-use checks when 
host government agencies do not respond to requests to conduct end-use 
checks, are prevented from scheduling such checks by a party to the 
transaction other than the foreign party that is the proposed subject 
of the end-use check, or refuse to schedule them in a timely manner. 
Under these circumstances, although BIS has an interest in informing 
the public of its inability to verify the foreign party's bona fides, 
there may not be sufficient information to add the foreign persons at 
issue to the Entity List under Sec.  744.11 of the EAR (Criteria for 
revising the Entity List). In such circumstances, BIS may add the 
foreign persons to the UVL.
    Furthermore, BIS sometimes conducts end-use checks but cannot 
verify the bona fides of a foreign party. For example, BIS may be 
unable to verify bona fides if during the conduct of an end-use check a 
recipient of items subject to the EAR is unable to produce those items 
for visual inspection or provide sufficient documentation or other 
evidence to confirm the disposition of those items. The inability of 
foreign persons subject to end-use checks to demonstrate their bona 
fides raises concerns about the suitability of such persons as 
participants in future

[[Page 4780]]

exports, reexports, or transfers (in-country) and indicates a risk that 
items subject to the EAR may be diverted to prohibited end uses and/or 
end users. However, BIS may not have sufficient information to 
establish that such persons are involved in activities described in 
part 744 of the EAR, preventing the placement of the persons on the 
Entity List. In such circumstances, the foreign persons may be added to 
the Unverified List.
    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 
keep a record of) a UVL statement from a party or parties to the 
transaction who are listed on the UVL before proceeding with exports, 
reexports, and transfers (in-country) to such persons, when the 
exports, reexports and transfers (in-country) are not subject to a 
license requirement.
    Requests for 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 listings will be made by the Deputy Assistant 
Secretary for Export Enforcement, based on a demonstration by the 
listed person of its bona fides.

Changes to the EAR

Supplement No. 6 to Part 744 (``the Unverified List'' or ``UVL'')

    Among other things, this rule adds fourteen (14) persons to the UVL 
by amending Supplement No. 6 to Part 744 of the EAR to include their 
names and addresses. BIS adds these persons in accordance with the 
criteria for revising the UVL set forth in Sec.  744.15(c) of the EAR. 
The new entries consist of eleven persons located in Hong Kong, two 
persons located in Pakistan, and one person located in the United Arab 
Emirates. Each listing is grouped within the UVL by country, and 
accompanied by the party's name(s), available alias(es), and 
address(es), as well as the Federal Register citation and the date the 
person was added to the UVL. The UVL is included in the Consolidated 
Screening List, available at www.export.gov.
    This rule also adds new addresses for two current UVL persons, 
Narpel Technologies, Ltd. and Powersun Electronics, both located in 
Hong Kong. BIS has determined that these persons are receiving U.S. 
exports at addresses other than those originally included in their UVL 
entries.
    Lastly, this rule removes from the UVL one company, Dynasense 
Photonics Co., Ltd. in Hong Kong, based on BIS's ability to confirm its 
bona fides through the successful completion of an end-use check. The 
removal of the above referenced person from the UVL eliminates the 
restrictions against the use of license exceptions and the requirements 
specific to exports, reexports and transfers (in-country) not otherwise 
requiring a license to the person, as described in Sec.  744.15 of the 
EAR. However, the removal of this person from the UVL does not relieve 
persons proposing to export, reexport or transfer (in-country) items 
subject to the EAR to the removed person of other obligations under 
part 744 of the EAR or under other parts of the EAR. Neither the 
removal of a person from the UVL nor the removal of UVL-based 
restrictions and requirements relieves a person of the obligation to 
obtain a license if the person knows that an export or reexport of any 
item subject to the EAR is destined to an end user or end use set forth 
in part 744 other than Sec.  744.15 of the EAR. Additionally, this 
removal does not relieve persons of their obligation to apply for 
export, reexport or in-country transfer licenses required by other 
provisions of the EAR. BIS strongly urges the use of Supplement No. 3 
to part 732 of the EAR, ``BIS's `Know Your Customer' Guidance and Red 
Flags,'' when persons are involved in transactions that are subject to 
the EAR.
Savings Clause
    Shipments (1) 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) eligible for export, reexport, or 
transfer (in-country) without a license before this regulatory action, 
and (3) on dock for loading, on lighter, laden aboard an exporting 
carrier, or en route aboard a carrier to a port of export, on January 
29, 2015, pursuant to actual orders, may proceed to that UVL listed 
person under the previous license exception eligibility or without a 
license so long as the items have been exported from the United States, 
reexported or transferred (in-country) before March 2, 2015. Any such 
items not actually exported, reexported or transferred (in-country) 
before midnight, on March 2, 2015, are subject to the requirements in 
Sec.  744.15 of the EAR in accordance with this regulation.

Export Administration Act

    Since August 21, 2001, the Export Administration Act of 1979, as 
amended, has been in lapse. However, the President, through Executive 
Order 13222 of August 17, 2001, 3 CFR, 2001 Comp., p. 783 (2002), as 
amended by Executive Order 13637 of March 8, 2013, 78 FR 16129 (March 
13, 2013), and as extended by the Notice of August 7, 2014, 79 FR 46959 
(August 11, 2014) has continued the EAR in effect under the 
International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.). 
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 as amended by Executive Order 13637.

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 not been designated a ``significant 
regulatory action,'' under section 3(f) of Executive Order 12866.
    2. 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 to this 
rule, which is adding 14 persons, removing one person, and updating the 
addresses of two other persons listed on the UVL, because this 
regulation involves military or foreign affairs. BIS implements this 
rule to protect U.S. national security or foreign policy interests by 
requiring a license for items being exported, reexported, or 
transferred (in country) involving a party or parties to the 
transaction who are listed on the UVL. If this rule were delayed to 
allow for notice and comment and a delay in effective date, the 
entities being added to the UVL by this action and those entities 
operating at previously unlisted addresses would continue to be able to 
receive items without additional oversight by BIS and to conduct 
activities contrary to the national security or foreign policy 
interests of the United States. In addition, publishing a proposed rule 
would give these parties

[[Page 4781]]

notice of the U.S. Government's intention to place them on the UVL, and 
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 once a final rule was published.
    The Department finds there is good cause under 5 U.S.C. 
553(b)(3)(B) to waive the provisions of the Administrative Procedure 
Act requiring prior notice and the opportunity for public comment to 
the provision of this rule removing one person from the UVL because 
doing so is contrary to the public interest and unnecessary. The 
removal is being made following the completion of a successful end-use 
check. If the rule were to be delayed to allow for public comment, U.S. 
exporters may face unnecessary economic losses as they turn away 
potential sales because the customer remained a listed person on the 
UVL even after BIS was able to verify that entity's bona fides through 
an end-use check. By publishing without prior notice and comment, BIS 
allows the entity to receive U.S. exports as quickly as possible 
following their cooperation in a successful end-use check. By quickly 
removing entities from the UVL following the successful completion of 
an end-use check, BIS encourages other entities to cooperate in end-use 
checks requested by BIS. 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.
    3. 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. This regulation involves 
collections previously approved by OMB under the following control 
numbers: 0694-0088, 0694-0122, 0694-0134, and 0694-0137.
    This rule slightly increases public burden in a collection of 
information approved by OMB under control number 0694-0088, which 
authorizes, among other things, export license applications. The 
removal of license exceptions for listed persons on the Unverified List 
will result in increased license applications being submitted to BIS by 
exporters. Total burden hours associated with the Paperwork Reduction 
Act and OMB control number 0694-0088 are expected to increase 
minimally, as the suspension of license exceptions will only affect 
transactions involving persons listed on the Unverified List and not 
all export transactions. Because license exceptions are restricted from 
use, this rule decreases public burden in a collection of information 
approved by OMB under control number 0694-0137 minimally, as this will 
only affect specific individual listed persons. The increased burden 
under 0694-0088 is reciprocal to the decrease of burden under 0694-
0137, and results in no change of burden to the public. This rule also 
increases public burden in a collection of information under OMB 
control number 0694-0122, as a result of the exchange of UVL statements 
between private parties, and under OMB control number 0694-0134, as a 
result of appeals from persons listed on the UVL for removal of their 
listing. The total increase in burden hours associated with both of 
these collections is expected to be minimal, as they involve a limited 
number of persons listed on the UVL.
    4. This rule does not contain policies with Federalism implications 
as that term is defined in Executive Order 13132.

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]

0
1. The authority citation for 15 CFR part 744 continues to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22 
U.S.C. 7210; E.O. 12058, 43 FR 20947, 3 CFR, 1978 Comp., p. 179; 
E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p. 608; E.O. 12938, 59 
FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 12947, 60 FR 5079, 3 CFR, 
1995 Comp., p. 356; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 
228; E.O. 13099, 63 FR 45167, 3 CFR, 1998 Comp., p. 208; E.O. 13222, 
66 FR 44025, 3 CFR, 2001 Comp., p. 783; E.O. 13224, 66 FR 49079, 3 
CFR, 2001 Comp., p. 786; Notice of January 21, 2014, 79 FR 3721 
(January 22, 2014); Notice of August 7, 2014, 79 FR 46959 (August 
11, 2014); Notice of September 17, 2014, 79 FR 56475 (September 19, 
2014); Notice of November 7, 2014, 79 FR 67035 (November 12, 2014).

0
2. Supplement No. 6 to Part 744 is amended by:
0
a. Removing the entry for ``Dynasense Photonics Co., Limited'';
0
b. Revising the entry for ``Narpel Technology Co., Limited'';
0
c. Revising the entry for ``Powersun Electronics'';
0
d. Adding an entry for ``Pakistan''; and
0
e. Adding 11 entries, in alphabetical order, under ``Hong Kong''; and
0
f. Adding an entry, in alphabetical order, under the ``United Arab 
Emirates''.
    The revisions and additions read as follows:

Supplement No. 6 to Part 744--Unverified List

* * * * *

----------------------------------------------------------------------------------------------------------------
                                                                                       Federal Register citation
                 Country                           Listed person and address            and date of publication
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
HONG KONG...............................  AST Technology Group (HK) Ltd., Flat 6, 20/ 80 FR [INSERT FR PAGE
                                           F, Mega Trade Centre, 1-9 Mei Wan Street,   NUMBER] January 29, 2015.
                                           Tsuen Wan, Hong Kong; and Unit 2209, 22/
                                           F, Wu Chung House, 213, Queen's Road
                                           East, Wan Chai, Hong Kong.
 
                                                  * * * * * * *
                                          Daystar Electric (HK) Ltd., Flat D, 19/F,   80 FR [INSERT FR PAGE
                                           Waylee Industrial Centre, 30-38 Tsuen       NUMBER] January 29, 2015.
                                           King Circuit, Tsuen Wan, New Territories,
                                           Hong Kong; and 9/F Kam Chung Commercial
                                           Building, 19-21 Hennessy Road, Wanchai,
                                           Hong Kong.

[[Page 4782]]

 
                                          Ditis Hong Kong Ltd., Room 227-228, 2/F,    80 FR [INSERT FR PAGE
                                           Metre Centre II, 21 Lam Hing Street,        NUMBER] January 29, 2015.
                                           Kowloon Bay, Kowloon, Hong Kong; and
                                           Rooms 1318-1320, Hollywood Plaza, 610
                                           Nathan Road, Mong Kok, Kowloon, Hong
                                           Kong; and Room 205, 2/F, Sunley Centre, 9
                                           Wing Yin Street, Kwai Chung, New
                                           Territories, Hong Kong.
 
                                                  * * * * * * *
                                          E-Chips Technology, Unit 4, 7/F, Bright     80 FR [INSERT FR PAGE]
                                           Way Tower, No. 33 Mong Kok Road, Mong       January 29, 2015.
                                           Kok, Kowloon, Hong Kong.
                                          GS Technology Ltd., a.k.a. GS Technology    80 FR [INSERT FR PAGE
                                           Group Ltd., Flat 6, 20/F, Mega Trade        NUMBER] January 29, 2015.
                                           Centre, 1-9 Mei Wan Street, Tsuen Wan,
                                           New Territories, Hong Kong; and Unit D,
                                           16/F, Cheuk Nang Plaza, 250 Hennessy
                                           Road, Wanchai, Hong Kong.
 
                                                  * * * * * * *
                                          Hong Kong U.Star Electronics Technology     80 FR [INSERT FR PAGE
                                           Co., Ltd., Room 28, 8/F, Shing Yip          NUMBER] January 29, 2015.
                                           Industrial Building, 19-21 Shing Yip
                                           Street, Kwun Tong, Kowloon, Hong Kong;
                                           and Unit 5, 27/F, Richmond Commercial
                                           Building, 109 Argyle Street, Mong Kok,
                                           Kowloon, Hong Kong.
                                          Hongbo Industrial Technology, Unit 3, 9/F,  80 FR [INSERT FR PAGE
                                           Shing Yip Industrial Building, 19-21        NUMBER] January 29, 2015.
                                           Shing Yip Street, Kwun Tong, Kowloon,
                                           Hong Kong; and Unit 04, 7/F, Bright Way
                                           Tower, No. 33, Mong Kok Road, Kowloon,
                                           Hong Kong.
 
                                                  * * * * * * *
                                          Ling Ao Electronic Technology Co. Ltd.,     80 FR [INSERT FR PAGE
                                           a.k.a. Voyage Technology (HK) Co. Ltd.,     NUMBER] January 29, 2015.
                                           Room 17, 7/F, Metro Centre Phase 1, No.
                                           32 Lamhing St., Kowloon Bay, Hong Kong;
                                           and 15B, 15/F, Cheuk Nang Plaza, 250
                                           Hennessy Road, Hong Kong.
 
                                                  * * * * * * *
                                          Microlink Communication Ltd., Room 806, 8/  80 FR [INSERT FR PAGE
                                           F, Kenbo Commercial Building, No. 335-339   NUMBER] January 29, 2015.
                                           Queen's Road West, Hong Kong.
                                          Milectronic Communication Ltd., Room 2912,  80 FR [INSERT FR PAGE
                                           Tower 2, Times Square, 1 Matheson Street,   NUMBER] January 29, 2015.
                                           Causeway Bay, Hong Kong.
 
                                                  * * * * * * *
                                          Narpel Technology Co., Limited, Unit A, 6/  79 FR 34217, 06/16/14, 80
                                           F, Yip Fat Factory Building, Phase 1, No    FR [INSERT FR PAGE
                                           77 Hoi Yuen Road, Kwun Tong, Kowloon,       NUMBER] January 29, 2015.
                                           Hong Kong; and Room 4C, 8/F, Sunbeam
                                           Centre, 27 Shing Yip Street, Kwun Tong,
                                           Kowloon, Hong Kong; and Room 1905, Nam Wo
                                           Hong Building, 148 Wing Lok Street,
                                           Sheung Wan, Hong Kong.
 
                                                  * * * * * * *
                                          Powersun Electronics, Flat/Rm 502D, Hang    79 FR 34217, 06/16/14, 80
                                           Pont Commercial Building, 31 Tonkin         FR [INSERT FR PAGE
                                           Street, Cheung Sha Wan, Kowloon, Hong       NUMBER] January 29, 2015.
                                           Kong; and G/F and G/M, Winner Godown
                                           Building, 1-9 Sha Tsui Road, Tsuen Wan,
                                           New Territories, Hong Kong.
 
                                                  * * * * * * *
                                          Suke Logistics Ltd., Flat 6, 20/F, Mega     80 FR [INSERT FR PAGE
                                           Trade Centre, 1-9 Mei Wan Street, Tsuen     NUMBER] January 29, 2015.
                                           Wan, New Territories, Hong Kong.
 
                                                  * * * * * * *
PAKISTAN................................  Fauji Fertilizer Company Ltd., 156 The      80 FR [INSERT FR PAGE
                                           Mall Rawalpindi Cantt, Pakistan.            NUMBER] January 29, 2015.
                                          T.M.A. International, a.k.a. TMA            80 FR [INSERT FR PAGE
                                           International, a.k.a. Tahir Asad            NUMBER] January 29, 2015.
                                           Industries Pvt. Ltd., a.k.a. T.A.
                                           Industries Pvt. Ltd., 45-B, Ahmed Block,
                                           New Garden Town, Lahore, Pakistan; and
                                           417 Gulshan Block, Iqbal Town, Lahore,
                                           Pakistan.
 
                                                  * * * * * * *
UNITED ARAB EMIRATES....................  Rich Star General Trading LLC, #203 The     80 FR [INSERT FR PAGE
                                           Atrium Centre, Khalid bin Waleed Road,      NUMBER] January 29, 2015.
                                           Bur Dubai, Dubai, UAE; and P.O. Box
                                           181977, Dubai, UAE.
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------

[[Page 4783]]

    Dated: January 23, 2015.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2015-01639 Filed 1-28-15; 8:45 am]
BILLING CODE 3510-33-P