Document ID: BIS-2016-0043-0001
Agency: bis
Document Type: Rule
Title: Addition of Certain Persons to the Entity List
Posted Date: 2016-12-15T05:00Z

[Federal Register Volume 81, Number 241 (Thursday, December 15, 2016)]
[Rules and Regulations]
[Pages 90712-90715]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-30061]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 744

[Docket No. 161110999-6999-01]
RIN 0694-AH21

Addition of Certain Persons to the Entity List

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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SUMMARY: This final rule amends the Export Administration Regulations 
(EAR) by adding seven persons to the Entity List. The seven 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 seven persons will be 
listed on the Entity List under the destination of Pakistan.

DATES: This rule is effective December 15, 2016.

FOR FURTHER INFORMATION CONTACT: Chair, End-User Review Committee, 
Office of the Assistant Secretary, Export Administration, Bureau of 
Industry and Security, Department of Commerce, Phone: (202) 482-5991, 
Email: ERC@bis.doc.gov.

SUPPLEMENTARY INFORMATION: 

Background

    The Entity List (Supplement No. 4 to part 744) identifies entities 
and other

[[Page 90713]]

persons reasonably believed to be involved, or to pose a significant 
risk of being or becoming involved, in activities contrary to the 
national security or foreign policy interests of the United States. The 
EAR imposes additional license requirements on, and limits the 
availability, of most license exceptions for, exports, reexports, and 
transfers (in-country) to those listed. The ``license review policy'' 
for each listed entity or other person is identified in the License 
Review Policy column on the Entity List and the impact on the 
availability of license exceptions is described in the Federal Register 
notice adding entities or other persons to the Entity List. BIS places 
entities and other persons on the Entity List pursuant to sections of 
part 744 (Control Policy: End-User and End-Use Based) and part 746 
(Embargoes and Other Special Controls) of the EAR.
    The 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 seven persons 
to the Entity List. These seven persons are being added on the basis of 
Sec.  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 seven entries added to the entity list 
consist of seven entries in Pakistan.
    The ERC reviewed Sec.  744.11(b) (Criteria for revising the Entity 
List) in making the determination to add these seven persons to the 
Entity List. Under that paragraph, persons and those acting on behalf 
of such persons may be added to the Entity List if 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. Paragraphs 
(b)(1) through (5) of Sec.  744.11 include an illustrative list of 
activities that could be contrary to the national security or foreign 
policy interests of the United States.
    Pursuant to Sec.  744.11(b) of the EAR, the ERC determined that 
seven persons, located in the destination of Pakistan, be added to the 
Entity List for actions contrary to the national security or foreign 
policy interests of the United States. The ERC determined that there is 
reasonable cause to believe, based on specific and articulable facts, 
that Ahad International; Engineering Solutions Pvt. Ltd.; National 
Engineering and Scientific Commission (NESCOM); three NESCOM 
subsidiaries: Air Weapons Complex (AWC), Maritime Technology Complex 
(MTC) and New Auto Engineering (NAE); and Universal Tooling Services, 
have been involved in actions contrary to the national security or 
foreign policy interests of the United States. These government, 
parastatal, and private entities in Pakistan are determined to be 
involved in activities that are contrary to the national security and/
or foreign policy of the United States.
    Pursuant to Sec.  744.11(b) of the EAR, the ERC determined that the 
conduct of these seven persons raises sufficient concern that prior 
review of exports, reexports or transfers (in-country) of items subject 
to the EAR involving these persons, and the possible imposition of 
license conditions or license denials on shipments to the persons, will 
enhance BIS's ability to prevent violations of the EAR. Therefore, 
these seven persons are being added to the Entity List.
    For the seven persons added to the Entity List, BIS imposes a 
license requirement for all items subject to the EAR and a license 
review policy of presumption of denial. The license requirements apply 
to any transaction in which items are to be exported, reexported, or 
transferred (in-country) to any of the persons or in which such persons 
act as purchaser, intermediate consignee, ultimate consignee, or end-
user. In addition, no license exceptions are available for exports, 
reexports, or transfers (in-country) to the persons being added to the 
Entity List in this rule. The acronym ``a.k.a.'' (also known as) is 
used in entries on the Entity List to help exporters, reexporters and 
transferors better identify listed persons on the Entity List.
    This final rule adds the following seven persons to the Entity 
List:

Pakistan

(1) Ahad International,
    Suite #5-6, 2nd Floor, Empress Tower, Empress Road, Lahore-54000, 
Pakistan; and 11-12-13, 2nd Floor, Nomro Center, Badami Bagh, Lahore, 
Pakistan;
(2) Air Weapons Complex (AWC),
    AWC: E-5, Officers Colony, Wah Cantt, Punjab, Pakistan;
(3) Engineering Solutions Pvt. Ltd.,
    726, G-11/2. Ibne-Sina Road, Islamabad, Pakistan;
(4) Maritime Technology Complex (MTC),
    MTC: Plot 94, Karachi, Pakistan; and
    MTC: System Division, PN Dockyard, Karachi, Pakistan;
(5) National Engineering and Scientific Commission (NESCOM),
    NESCOM Head Quarter, Plot #94, Sector H-11/4, Islamabad, Pakistan;
(6) New Auto Engineering (NAE),
    NAE: 72, Industrial Area, Peshawar Road, Rawalpindi, Pakistan; and
(7) Universal Tooling Services, a.k.a., the following three aliases:
    --Forward Design and Manufacturing;
    --MSM Enterprises; and
    --Technopak Engineering.

    Deen Plaza, 68/62, Adamjee Road, Saddar P.O. Box 1640, GPO 
Rawalpindi, Pakistan; and G-7, Nimra Centre 7, Badami Bagh, Lahore, 
Pakistan; and 31/B Faisal Town, Lahore, Punjab, Pakistan; and Model 
Town, HMC Road, Taxila, Pakistan.

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 December 15, 2016, 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).

Export Administration Act

    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 amended by Executive Order 13637 of March 
8, 2013, 78 FR 16129 (March 13, 2013) and as extended by the Notice of 
August 4, 2016, 81 FR 52587 (August 8, 2016), 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, 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

[[Page 90714]]

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 OMB under control number 0694-0088, 
Simplified Network Application Processing System, which includes, among 
other things, license applications and carries a burden 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 to this 
rule 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, the 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, publishing a proposed rule 
would give these parties notice of the U.S. Government's intention to 
place them on the Entity List 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 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 through 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. 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. 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 September 18, 2015, 80 FR 57281 
(September 22, 2015); Notice of November 12, 2015, 80 FR 70667 
(November 13, 2015); Notice of January 20, 2016, 81 FR 3937 (January 
22, 2016); Notice of August 4, 2016, 81 FR 52587 (August 8, 2016).

0
2. Supplement No. 4 to part 744 is amended by adding under Pakistan, in 
alphabetical order, seven Pakistani entities to read as follows:

                                    Supplement No. 4 to Part 744--Entity List
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                                                                          License review       Federal Register
         Country                  Entity          License requirement         policy               citation
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                                                  * * * * * * *
PAKISTAN
                                                                 * * * * * *
                           Ahad International,   For all items         Presumption of        81 FR [INSERT FR
                            Suite #5-6, 2nd       subject to the EAR.   denial.               PAGE NUMBER], 12/
                            Floor, Empress        (See Sec.   744.11                          15/16.
                            Tower, Empress        of the EAR).
                            Road, Lahore-54000,
                            Pakistan; and.
                           11-12-13, 2nd Floor,
                            Nomro Center,
                            Badami Bagh,
                            Lahore, Pakistan.
                           Air Weapons Complex   For all items         Presumption of        81 FR [INSERT FR
                            (AWC), AWC: E-5,      subject to the EAR.   denial.               PAGE NUMBER], 12/
                            Officers Colony,      (See Sec.   744.11                          15/16.
                            Wah Cantt, Punjab,    of the EAR).
                            Pakistan.
                                                                 * * * * * *
                           Engineering           For all items         Presumption of        81 FR [INSERT FR
                            Solutions Pvt.        subject to the EAR.   denial.               PAGE NUMBER], 12/
                            Ltd., 726, G-11/2.    (See Sec.   744.11                          15/16.
                            Ibne-Sina Road,       of the EAR).
                            Islamabad, Pakistan.
                                                                 * * * * * *
                           Maritime Technology   For all items         Presumption of        81 FR [INSERT FR
                            Complex (MTC), MTC:   subject to the EAR.   denial.               PAGE NUMBER], 12/
                            Plot 94, Karachi,     (See Sec.   744.11                          15/16.
                            Pakistan; and MTC:    of the EAR).
                            System Division, PN
                            Dockyard, Karachi,
                            Pakistan.

[[Page 90715]]

 
                                                                 * * * * * *
                           National Engineering  For all items         Presumption of        81 FR [INSERT FR
                            and Scientific        subject to the EAR.   denial.               PAGE NUMBER], 12/
                            Commission            (See Sec.   744.11                          15/16.
                            (NESCOM), NESCOM      of the EAR).
                            Head Quarter, Plot
                            #94, Sector H-11/4,
                            Islamabad, Pakistan.
                                                                 * * * * * *
                           New Auto Engineering  For all items         Presumption of        81 FR [INSERT FR
                            (NAE), NAE: 72,       subject to the EAR.   denial.               PAGE NUMBER], 12/
                            Industrial Area,      (See Sec.   744.11                          15/16.
                            Peshawar Road,        of the EAR).
                            Rawalpindi,
                            Pakistan.
                                                                 * * * * * *
                           Universal Tooling     For all items         Presumption of        81 FR [INSERT FR
                            Services, a.k.a.,     subject to the EAR.   denial..              PAGE NUMBER], 12/
                            the following three   (See Sec.   744.11                          15/16.
                            aliases:              of the EAR).
                           --Forward Design and
                            Manufacturing;.
                           --MSM Enterprises;
                            and.
                           --Technopak
                            Engineering..
                           Deen Plaza, 68/62,
                            Adamjee Road,
                            Saddar P.O. Box
                            1640, GPO
                            Rawalpindi,
                            Pakistan; and
                           --G-7, Nimra Centre
                            7, Badami Bagh,
                            Lahore, Pakistan;
                            and 31/B Faisal
                            Town, Lahore,
                            Punjab, Pakistan;
                            and Model Town, HMC
                            Road, Taxila,
                            Pakistan.
                                                                 * * * * * *
 
                                                  * * * * * * *
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    Dated: December 8, 2016.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2016-30061 Filed 12-14-16; 8:45 am]
 BILLING CODE 3510-33-P