Document ID: BIS-2013-0002-0001
Agency: bis
Document Type: Rule
Title: Entity List: Removal of Persons Based on Request; Implementation of Annual Review Changes and Modifications and Corrections
Posted Date: 2013-01-16T05:00Z

[Federal Register Volume 78, Number 11 (Wednesday, January 16, 2013)]
[Rules and Regulations]
[Pages 3317-3319]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-00767]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 744

[Docket No. 121113624-2624-01]
RIN 0694-AF82

Removal of Persons From the Entity List Based on Removal Request; 
Implementation of Entity List Annual Review Changes; and Implementation 
of Modifications and Corrections to the Entity List

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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SUMMARY: This rule amends the Export Administration Regulations (EAR) 
by removing two persons from the Entity List (Supplement No. 4 to Part 
744), as the result of a request for removal submitted by these two 
persons. In addition, on the basis of the annual review conducted by 
the End User Review Committee, this rule amends the Entity List to 
remove two entries from the United Arab Emirates (U.A.E.). Finally, 
this rule modifies two existing entries to correct the scope of those 
entries, including removing a redundant entry that was inadvertently 
added in a final rule.

DATES: Effective Date: This rule is effective January 16, 2013.

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 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 published 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

Removal From the Entity List

    This rule implements a decision of the ERC to remove two persons, 
Laurence Mattiucci and Toulouse Air Spares SAS, both located in France, 
from the Entity List as a result of a successful request for removal 
from the Entity List. Based upon the review of the information provided 
in the removal request in accordance with Sec.  744.16 (Procedure for 
requesting removal or modification of an Entity List entity), and after 
review by the ERC's member agencies, the ERC determined that these 
persons should be removed from the Entity List.
    The ERC's decision to remove these two persons took into account 
their cooperation with the U.S. Government, as well as their assurances 
of future compliance with the EAR. In accordance with Sec.  744.16(c), 
the Deputy Assistant Secretary for Export Administration has sent 
written notification to these two persons, informing these entities of 
the ERC's decision to remove them from the Entity List. This final rule 
implements the decision to remove the following two persons from the 
Entity List:

France

    (1) Laurence Mattiucci, 8 Rue de la Bruyere, 31120 Pinsaguel, 
Toulouse, France; and
    (2) Toulouse Air Spares SAS, 8 Rue de la Bruyere, 31120 Pinsaguel, 
Toulouse, France.

Annual Review of the Entity List

    This rule also amends the Entity List on the basis of the annual 
review of the Entity List conducted by the ERC, in accordance with the 
procedures outlined in Supplement No. 5 to part 744 (Procedures for 
End-User Review Committee Entity List Decisions). The changes from the 
annual review of the Entity List that are approved by the ERC are 
implemented in stages as the ERC completes its review of entities 
listed under different destinations on the Entity List. This rule 
implements the results of the annual review for entities located in the 
United Arab Emirates (U.A.E.). The entities located Armenia, Cyprus, 
France, and Iran were also reviewed by the ERC, but no additional 
changes are being made to those entries as a result of the annual 
review of the Entity List.

Removals From the Entity List on the Basis of Annual Reviews

    This rule removes two entries from the Entity List on the basis of 
the annual review of the Entity List. The persons removed were 
determined to no longer meet the criteria for inclusion on the Entity 
List. Specifically, this rule implements the decision of the ERC to 
remove two persons located in the U.A.E., as follows:

United Arab Emirates

    (1) Abubakr Abuelazm, Dubai, U.A.E., 500100; and
    (1) Advanced Technology General Trading Company, a.k.a, Advanced 
Technologies Emirates FZ-LLC, Office 124 1st Floor, Building 
3, Dell Building, Sheikh Zayed Road, Dubai Internet City, 
Dubai, U.A.E.
    The removal of the above-referenced two entities on the basis of 
annual review of the Entity List, and the removal of the two entities 
referenced

[[Page 3318]]

above on the basis of a Sec.  744.16 removal request that was approved 
by the ERC, eliminates the existing license requirements in Supplement 
No. 4 to part 744 for exports, reexports, and transfers (in-country) to 
these four entities. However, the removal of these four entities from 
the Entity List does not relieve persons of other obligations under 
part 744 of the EAR or under other parts of the EAR. Neither the 
removal of an entity from the Entity List nor the removal of Entity 
List-based license requirements relieves persons of their obligations 
under General Prohibition 5 in Sec.  736.2(b)(5) of the EAR which 
provides that, ``you may not, without a license, knowingly export or 
reexport any item subject to the EAR to an end-user or end-use that is 
prohibited by part 744 of the EAR.'' Additionally, these removals do 
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.

Modifications and Corrections to the Entity List

    On October 9, 2012, BIS published a final rule, ``Addition of 
Certain Persons to the Entity List'' in the Federal Register (77 FR 
61249). This rule amends the Entity List by revising one entry added on 
October 9 under Finland and by removing one redundant entry under 
Russia. Specifically, the spelling of the ``Olkerboy Oy'' entry under 
Finland is corrected to ``Olkebor Oy'' and the ``Bolshaya 
Semenovskaya'' entry under Russia is removed. This rule revises the 
Olkerboy Oy entry under Finland, as follows:

Finland

    (1) Olkebor Oy/Nurminen Oy, 231B Vanha Porvoontie, Vantaa, Finland 
01380.
    This rule also removes the Bolshaya Semenovskaya entry under 
Russia:

Russia

    (1) Bolshaya Semenovskaya 40/505, Moscow, Russia 107023; and Ulitsa 
Metallurgov, 29, Str. 1, Komnata Pravleni, Moscow, Russia 111401.

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 January 16, 2013, 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. 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. This 
rule does not alter any information collection requirements; therefore, 
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 30-day 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)). The U.S. Government's 
original basis for adding the entities affected by this rule to the 
Entity List was the entities' involvement in activities contrary to 
U.S. national security or foreign policy interests. BIS implements this 
rule to further protect U.S. national security and foreign policy 
interests by preventing items from being exported, reexported or 
transferred (in-country) to these persons listed on the Entity List and 
by ensuring that potential transactions with individuals no longer 
listed on the Entity List are not turned away to the detriment of U.S. 
economic interests. If this rule were delayed to allow for notice and 
comment and a 30-day delay in effective date, there is a chance that 
certain exporters, reexporters, and persons making transfers (in-
country) to this listed person may inadvertently export, reexport or 
transfer (in-country) to Olkebor Oy/Nurminen Oy because the exporter, 
reexporter or person making the transfer (in-country) did not realize 
the listed person was subject to the Entity List-based license 
requirement. There is also a chance an exporter, reexporter, or person 
making a transfer (in-country) may turn away a potential export, 
reexport, or transfer (in-country) because the customer remained a 
listed person on the Entity List after the ERC approved removal, 
thereby harming U.S. economic interests. The correction and removals 
provided in this rule may make clear that the persons are no longer 
subject to Entity List-based license requirements. For these reasons, 
there is a public interest that these changes be implemented as a final 
action. 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.

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

[[Page 3319]]

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).

0
2. Supplement No. 4 to part 744 is amended:
0
a. By removing under Finland the Finnish entity ``Olkerboy Oy/Nurminen 
Oy'', and adding in alphabetical order, one Finnish entity for Olkebor 
Oy/Nurminen Oy'';
0
b. By removing under France, the two French entities: ``Laurence 
Mattiucci, 8 Rue de la Bruyere, 31120 Pinsaguel, Toulouse, France.'' 
and ``Toulouse Air Spares SAS, 8 Rue de la Bruyere, 31120 Pinsaguel, 
Toulouse, France.'';
0
c. By removing under Russia, the Russian entity: ``Bolshaya 
Semenovskaya, 40/505, Moscow, Russia 107023; and Ulitsa Metallurgov, 
29, Str. 1, Komnata Pravleni, Moscow, Russia 111401.''; and
0
d. By removing under United Arab Emirates, the two Emirati entities: 
``Abubakr Abuelazm, Dubai, U.A.E., 500100.'' and ``Advanced Technology 
General Trading Company, a.k.a, Advanced Technologies Emirates FZ-LLC, 
Office 124 1st Floor, Building 3, Dell Building, 
Sheikh Zayed Road, Dubai Internet City, Dubai, U.A.E.''
    The addition reads as follows:

                                    Supplement No. 4 to Part 744--Entity List
----------------------------------------------------------------------------------------------------------------
                                                            License         License review     Federal Register
            Country                     Entity            requirement           policy             citation
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
            Finland
 
                                                  * * * * * * *
                                 Olkebor Oy/Nurminen  For all items       Presumption of      77 FR 61256, 10/9/
                                  Oy, 231B Vanha       subject to the      denial.             2012. 78 FR
                                  Porvoontie,          EAR. (See Sec.                          [INSERT FR PAGE
                                  Vantaa, Finland      744.11 of the                           NUMBER] 1/16/13.
                                  01380.               EAR).
 
                                                  * * * * * * *
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    Dated: January 10, 2013.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2013-00767 Filed 1-15-13; 8:45 am]
BILLING CODE 3510-33-P