Document ID: BIS-2021-0041-0001
Agency: bis
Document Type: Rule
Title: Addition of Certain Entities to the Entity List
Posted Date: 2021-11-04T04:00Z

[Federal Register Volume 86, Number 211 (Thursday, November 4, 2021)]
[Rules and Regulations]
[Pages 60759-60761]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-24123]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 744

[Docket No. 211019-0210]
RIN 0694-AI64

Addition of Certain Entities 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 four entities to the Entity List. These four entities 
have been determined by the U.S. Government to be acting contrary to 
the foreign policy and national security interests of the United States 
and will be listed on the Entity List under the destinations of Israel, 
Russia, and Singapore.

DATES: This rule is effective November 4, 2021.

FOR FURTHER INFORMATION CONTACT: Chair, End-User Review Committee, 
Office of the Assistant Secretary for Export Administration, Bureau of 
Industry and Security, Department of Commerce, Phone: (202) 482-5991, 
Email: [email protected].

SUPPLEMENTARY INFORMATION:

Background

Entity List

    The Entity List (supplement no. 4 to part 744 of the EAR) 
identifies entities for which there is reasonable cause to believe, 
based on specific and articulable facts, that the entities have been 
involved, are involved, or 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 (15 CFR parts 730-774) 
impose additional license requirements on, and limit the availability 
of most license exceptions for, exports, reexports, and transfers (in-
country) to listed entities. The license review policy for each listed 
entity 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 relevant Federal Register document adding entities 
to the Entity List. Bureau of Industry and Security (BIS) places 
entities on the Entity List pursuant to part 744 (Control Policy: End-
User and End-Use Based) and part 746 (Embargoes and Other Special 
Controls) 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 
makes 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 four entities 
to the Entity List. The four entities are added based on 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 four entities are located in Israel, Russia, and 
Singapore.
    The ERC determined that NSO Group and Candiru be added to the 
Entity List based on Sec.  744.11(b) of the EAR: Entities for which 
there is reasonable cause to believe, based on specific and articulated 
facts, that the entity has been involved, is involved, or poses 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 entities. 
Specifically, investigative information has shown that the Israeli 
companies NSO Group and Candiru developed and supplied spyware to 
foreign governments that used this tool to maliciously target 
government officials, journalists, businesspeople, activists, 
academics, and embassy workers.
    The ERC determined that Positive Technologies, located in Russia, 
and Computer Security Initiative Consultancy PTE. LTD., located in 
Singapore, be added to the Entity List based on their engagement in 
activities counter to U.S. national security. Specifically, these 
entities traffic in cyber exploits used to gain access to information 
systems, threatening the privacy and security of individuals and 
organizations worldwide.
    Pursuant to Sec.  744.11(b) of the EAR, the ERC determined that the 
conduct of the above-described four entities raises sufficient concerns 
that prior review, via the imposition of a license requirement for 
exports, reexports, or transfers (in-country) of all items subject to 
the EAR involving these four entities and the possible issuance of 
license denials or the possible imposition of license conditions on 
shipments to these entities, will enhance BIS's ability to prevent 
violations of the EAR or otherwise protect U.S. national security or 
foreign policy interests. In addition, the ERC also determined that no 
license exceptions should be available for exports, reexports, or 
transfers (in-country) to the persons being added to the Entity List in 
this rule. The ERC imposed a license review policy of a presumption of 
denial for these four entities. The acronym ``a.k.a.,'' which is an 
abbreviation of `also known as,' is used in entries on the Entity List 
to identify aliases, thereby assisting exporters, reexporters, and 
transferors in identifying entities on the Entity List.
    For the reasons described above, this final rule adds the following 
four entities to the Entity List and includes, where appropriate, 
aliases:
Israel
 Candiru; and
 NSO Group
Russia
 Positive Technologies
Singapore
 Computer Security Initiative Consultancy PTE. LTD.

Savings Clause

    Shipments of items removed from eligibility for a License Exception 
or export, reexport, or transfer (in-country) without a license (NLR) 
as a result of this regulatory action that were en route aboard a 
carrier to a port of export, reexport, or transfer (in-country), on 
November 4, 2021, pursuant to actual orders for export, reexport, or 
transfer (in-country) to or within a foreign destination, may proceed 
to that destination under the previous eligibility for a License 
Exception or export, reexport, or transfer (in-country) without a 
license (NLR).

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 rule.

[[Page 60760]]

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 or 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 commodity classification, and 
carries a burden estimate of 29.6 minutes for a manual or electronic 
submission for a total burden estimate of 31,835 hours. Total burden 
hours associated with the PRA and OMB control number 0694-0088 are not 
expected to increase as a result of this rule.
    3. This rule does not contain policies with federalism implications 
as that term is defined in Executive Order 13132.
    4. Pursuant to section 1762 of ECRA, this action is exempt from the 
Administrative Procedure Act (5 U.S.C. 553) requirements for notice of 
proposed rulemaking, opportunity for public participation, and delay in 
effective date.
    5. 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]

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 15, 2021, 86 FR 52069 (September 17, 2021); Notice of 
November 12, 2020, 85 FR 72897 (November 13, 2020).

0
2. Supplement No. 4 to part 744 is amended:
0
a. Under ISRAEL, by adding in alphabetical order entries for 
``Candiru'' and ``NSO Group'';
0
b. Under RUSSIA, by adding in alphabetical order an entry for 
``Positive Technologies''; and
0
c. Under SINGAPORE, by adding in alphabetical order an entry for 
``Computer Security Initiative Consultancy PTE. LTD.''.
    The additions 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
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
ISRAEL.................                                         * * * * * *
                         Candiru, a.k.a., the          All items subject    Presumption of     86 FR [INSERT FR
                          following seven aliases:      to the EAR. (See     denial.            PAGE NUMBER]
                         --Candiru Ltd.;                Sec.   744.11 of                        November 4,
                         --DF Associates Ltd.;          the EAR).                               2021.
                         --Grindavik Solutions Ltd.;
                         --Taveta Ltd.;
                         --Saito Tech Ltd.;
                         --Greenwick Solutions; and
                         --Tabatha Ltd.
                         21 Haarbaa, Tel Aviv-Yafo,
                          Israel 6473921.
                                                                * * * * * *
                         NSO Group, 22 Galgalei        All items subject    Presumption of     86 FR [INSERT FR
                          Haplada, Herzliya, Tel Aviv-  to the EAR. (See     denial.            PAGE NUMBER]
                          Yafo, Israel 4672222.         Sec.   744.11 of                        November 4,
                                                        the EAR).                               2021.
                                                                * * * * * *
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                                                  * * * * * * *
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RUSSIA.................                                         * * * * * *
                         Positive Technologies, 8      All items subject    Presumption of     86 FR [INSERT FR
                          Preobrzhenskaya Square,       to the EAR. (See     denial.            PAGE NUMBER]
                          Moscow, Russia 107061.        Sec.   744.11 of                        November 4,
                                                        the EAR).                               2021.
                                                                * * * * * *
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[[Page 60761]]

 
                                                  * * * * * * *
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SINGAPORE..............                                         * * * * * *
                         Computer Security Initiative  All items subject    Presumption of     86 FR [INSERT FR
                          Consultancy PTE. LTD.,        to the EAR. (See     denial.            PAGE NUMBER]
                          a.k.a., the following         Sec.   744.11 of                        November 4,
                          alias:                        the EAR).                               2021.
                         --COSEINC.
                         102F Pasir Panjang Rd., #08-
                          02, Citilink Warehouse
                          Complex, Singapore 118530.
                                                                * * * * * *
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* * * * *

Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 2021-24123 Filed 11-3-21; 8:45 am]
BILLING CODE 3510-33-P