Document ID: BIS-2022-0004-0002
Agency: bis
Document Type: Rule
Title: Addition of Certain Entities to the Entity List: Correction
Posted Date: 2022-04-11T04:00Z

[Federal Register Volume 87, Number 69 (Monday, April 11, 2022)]
[Rules and Regulations]
[Pages 21011-21015]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-07643]

=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 744

[Docket No. 220203-0039]
RIN 0694-AI70

Addition of Certain Entities to the Entity List; Correction

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Correcting amendments.

-----------------------------------------------------------------------

SUMMARY: The Bureau of Industry and Security (BIS) publishes these 
amendments to correct three errors contained in the revisions to the 
Entity List that were published in a final rule on February 14, 2022. 
That final rule amended the Export Administration Regulations (EAR) by 
revising the Entity List entry for ``Huawei Cloud Brazil'' (under 
Brazil) and by adding a new entry for ``Huawei Technologies Co., Ltd.'' 
(under China, People's Republic of). However, the references to the 
foreign direct product provisions in the EAR that apply to these two 
entities were incorrect. This rule amends the entries for the two 
entities to include the correct references to these EAR provisions and 
also corrects a typographical error in one of these entries.

DATES: This rule is effective April 11, 2022. This rule is applicable 
as of February 14, 2022.

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: The Entity List in supplement no. 4 to part 
744 of the Export Administration Regulations (EAR) (15 CFR parts 730-
774) 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 impose 
additional license requirements on, and limit the availability of most 
license exceptions for, exports, reexports and transfers (in-country) 
to listed entities. These additional license requirements are 
referenced, together with other relevant EAR provisions, in the 
``License requirement'' column for each entity. The license review 
policy for each listed entity is identified in the ``License review 
policy'' column for that entity on the Entity List, and the impact on 
the availability of license exceptions is described in the relevant 
Federal Register document adding the entities to the Entity List. 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

[[Page 21012]]

decisions to remove or modify an entry by unanimous vote.
    On February 14, 2022 (87 FR 8180), BIS published a final rule 
titled ``Addition of Certain Entities to the Entity List,'' which 
amended the Entity List by, inter alia, revising the entry for ``Huawei 
Cloud Brazil'' (under Brazil) and adding a new entry for ``Huawei 
Technologies Co., Ltd.'' (under China, People's Republic of). However, 
the references to certain EAR foreign direct product provisions that 
were identified in the ``License requirement'' column for each of these 
entities were incorrect. Specifically, the ``License requirement'' 
column for each of these entries incorrectly referenced Sec.  
736.2(b)(3)(vi) of the EAR, instead of Sec.  734.9(e) of the EAR.
    The references to Sec.  734.9(e) of the EAR were added to a number 
of entities on the Entity List, replacing previous references to Sec.  
736.2(b)(3)(vi) of the EAR, by a final rule that BIS published in the 
Federal Register on February 3, 2022 (87 FR 6022). That final rule 
consolidated the foreign direct product (FDP) provisions in Sec.  734.9 
of the EAR. Prior to the publication of the February 3, 2022, final 
rule (hereinafter, the ``FDP rule''), the FDP provisions of the EAR 
were found in Sec.  736.2(b)(3) (General Prohibition 3) and footnote 1 
to supplement no. 4 to part 744 (the Entity List). The FDP rule 
relocated the license requirement, license review policy, and license 
exception applicability provisions for certain listed entities from the 
Entity List's footnote 1 to Sec.  744.11(a) of the EAR, where the 
overall license requirements pertaining to listed entities are located. 
In addition, the FDP rule moved the description of the product scope 
and end-user scope of the Entity List FDP requirements from the 
aforementioned footnote 1 to Sec.  734.9 of the EAR, where the FDP 
provisions are now consolidated. However, the scope of the global 
amendatory instruction that made conforming changes to the Entity List 
table in supplement no. 4 to part 744 did not include the entry for 
``Huawei Cloud Brazil'' (under Brazil). As a result, the reference to 
Sec.  736.2(b)(3), in the ``License requirement'' column for this 
entity was not removed and replaced with a reference to Sec.  734.9(e) 
as should have been the case.
    Although the February 14, 2022, Entity List rule included a 
revision of the entry for ``Huawei Cloud Brazil'' (under Brazil), the 
rule inadvertently failed to change the reference in the ``License 
requirement'' column for this entity from Sec.  736.2(b)(3) to Sec.  
734.9(e). Furthermore, the addition of a new entry for ``Huawei 
Technologies Co., Ltd.'' (under China, People's Republic of) to the 
Entity List, also incorrectly referenced Sec.  736.2(b)(3), instead of 
Sec.  734.9(e), in the ``License requirement'' column for the entity.
    These correcting amendments revise the ``License requirement'' 
column in each of the aforementioned Entity List entries to correctly 
reference Sec.  734.9(e), instead of Sec.  736.2(b)(3). These 
amendments also correct a typographical error, in the ``License 
requirement'' column for ``Huawei Technologies Co., Ltd.'' (under 
China, People's Republic of), by revising the phrase ``except for'' to 
read ``EXCEPT\2\ for'', consistent with the application of Entity List 
footnote 2 to this entity (i.e., with respect to the provision of 
ongoing security research critical to maintaining the integrity and 
reliability of an existing and currently fully operational `third 
party' network and equipment providing services to the `third party's' 
customers--in this instance, the term `third party' refers to a party 
that is not Huawei, one of its listed non-U.S. affiliates, or the 
exporter, reexporter, or transferor, but rather an organization such as 
a telecommunications service provider).

List of Subjects in 15 CFR Part 744

    Exports, Reporting and recordkeeping requirements, Terrorism.

    For the reasons stated in the preamble, part 744 of the Export 
Administration Regulations (15 CFR parts 730-774) is corrected by 
making the following correcting amendments:

PART 744--[AMENDED]

0
1. The authority citation for 15 CFR part 744 continues 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 10, 2021, 86 FR 62891 (November 12, 2021).

0
2. Supplement no. 4 to part 744 is amended:
0
a. Under BRAZIL by revising the entry for ``Huawei Cloud Brazil''; and
0
b. Under CHINA, PEOPLE'S REPUBLIC OF by revising the entry for ``Huawei 
Technologies Co., Ltd.''.
    The revisions read as follows:

Supplement No. 4 to Part 744--Entity List

* * * * *

[[Page 21013]]

----------------------------------------------------------------------------------------------------------------
                                                             License         License review     Federal Register
        Country                     Entity                 requirement           policy             citation
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
BRAZIL.................  Huawei Cloud Brazil, Sao      For all items       Presumption of      85 FR 51603, 8/20/
                          Paulo, Brazil.                subject to the      denial.             20.
                                                        EAR, see Sec.                          87 FR 8182, 2/14/
                                                        Sec.                                    22.
                                                        734.9(e),\1\ and                       87 FR [INSERT FR
                                                        744.11 of the                           PAGE NUMBER] 4/
                                                        EAR, EXCEPT \2\                         11/22.
                                                        for technology
                                                        subject to the
                                                        EAR that is
                                                        designated as
                                                        EAR99, or
                                                        controlled on the
                                                        Commerce Control
                                                        List for anti-
                                                        terrorism reasons
                                                        only, when
                                                        released to
                                                        members of a
                                                        ``standards
                                                        organization''
                                                        (see Sec.
                                                        772.1) for the
                                                        purpose of
                                                        contributing to
                                                        the revision or
                                                        development of a
                                                        ``standard'' (see
                                                        Sec.   772.1).
                                                                * * * * * *
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
CHINA, PEOPLE'S                                                 * * * * * *
 REPUBLIC OF.
                         Huawei Technologies Co.,      For all items       Presumption of      84 FR 22963, 5/21/
                          Ltd., a.k.a., the following   subject to the      denial.             19.
                          two aliases:                  EAR, see Sec.                          84 FR 43495, 8/21/
                         --Shenzhen Huawei              Sec.                                    19.
                          Technologies; and             734.9(e),\1\ and                       85 FR 29853, 5/19/
                         --Huawei Technology, and to    744.11 of the                           20.
                          include the following         EAR, EXCEPT \2\                        85 FR 36720, 6/18/
                          addresses and the following   for technology                          20.
                          22 affiliated entities:       subject to the                         85 FR 51603, 8/20/
                         Addresses for Huawei           EAR that is                             20.
                          Technologies Co., Ltd.:       designated as                          87 FR 8182, 2/14/
                          Bantian Huawei Base,          EAR99, or                               22.
                          Longgang District,            controlled on the                      87 FR [INSERT FR
                          Shenzhen, 518129, China;      Commerce Control                        PAGE NUMBER] 4/
                          and No. 1899 Xi Yuan Road,    List for anti-                          11/22.
                          High-Tech West District,      terrorism reasons
                          Chengdu, 611731; and C1,      only, when
                          Wuhan Future City, No. 999    released to
                          Gaoxin Ave., Wuhan, Hebei     members of a
                          Province; and Banxuegang      ``standards
                          Industrial Park, Buji         organization''
                          Longgang, Shenzhen,           (see Sec.
                          Guangdong, 518129, China;     772.1) for the
                          and R&D Center, No. 2222,     purpose of
                          Golden Bridge Road, Pu Dong   contributing to
                          District, Shanghai, China;    the revision or
                          and Zone G, Huawei Base,      development of a
                          Bantian, Longgang District,   ``standard'' (see
                          Shenzhen, China; and Tsim     Sec.   772.1).
                          Sha Tsui, Kowloon, Hong
                          Kong.

[[Page 21014]]

 
                         Affiliated entities:
                         Beijing Huawei Longshine
                          Information Technology Co.,
                          Ltd., a.k.a., the following
                          one alias:
                         --Beijing Huawei Longshine,
                          to include the following
                          subordinate. Q80-3-25R, 3rd
                          Floor, No. 3, Shangdi
                          Information Road, Haidian
                          District, Beijing, China.
                         Hangzhou New Longshine
                          Information Technology Co.,
                          Ltd., Room 605, No. 21,
                          Xinba, Xiachang District,
                          Hangzhou, China.
                         Hangzhou Huawei
                          Communication Technology
                          Co., Ltd., Building 1, No.
                          410, Jianghong Road,
                          Changhe Street, Binjiang
                          District, Hangzhou,
                          Zhejiang, China.
                         Hangzhou Huawei Enterprises,
                          No. 410 Jianghong Road,
                          Building 1, Hangzhou,
                          China.
                         Huawei Digital Technologies
                          (Suzhou) Co., Ltd., No. 328
                          XINHU STREET, Building A3,
                          Suzhou (Huawei R&D Center,
                          Building A3, Creative
                          Industrial Park, No. 328,
                          Xinghu Street, Suzhou),
                          Suzhou, Jiangsu, China.
                         Huawei Marine Networks Co.,
                          Ltd., a.k.a., the following
                          four aliases:
                         --Huawei Marine;
                         --HMN Technologies;
                         --Huahai Zhihui Technology
                          Co., Ltd.,; and
                         --HMN Tech. Building R4, No.
                          2 City Avenue, Songshan
                          Lake Science & Tech
                          Industry Park, Dongguan,
                          523808, and No. 62, Second
                          Ave., 5/F-6/F, TEDA, MSD-B2
                          Area, Tianjin Economic and
                          Technological Development
                          Zone, Tianjin, 300457,
                          China.
                         Huawei Mobile Technology
                          Ltd., Huawei Base, Building
                          2, District B, Shenzhen,
                          China.
                         Huawei Tech. Investment Co.,
                          U1 Building, No. 1899
                          Xiyuan Avenue, West Gaoxin
                          District, Chengdu City,
                          611731, China.
                         Huawei Technology Co., Ltd.
                          Chengdu Research Institute,
                          No. 1899, Xiyuan Ave., Hi-
                          Tech Western District,
                          Chengdu, Sichuan Province,
                          610041, China.
                         Huawei Technology Co., Ltd.
                          Hangzhou Research
                          Institute, No. 410,
                          Jianghong Rd., Building 4,
                          Changhe St., Binjiang
                          District, Hangzhou,
                          Zhejiang Province, 310007,
                          China.
                         Huawei Technologies Co.,
                          Ltd. Beijing Research
                          Institute, No. 3, Xinxi
                          Rd., Huawei Building,
                          ShangDi Information
                          Industrial Base, Haidian
                          District, Beijing, 100095,
                          China; and No. 18, Muhe
                          Rd., Building 1-4, Haidian
                          District, Beijing, China.
                         Huawei Technologies Co.,
                          Ltd. Material
                          Characterization Lab,
                          Huawei Base, Bantian,
                          Shenzhen 518129, China.

[[Page 21015]]

 
                         Huawei Technologies Co.,
                          Ltd. Xi'an Research
                          Institute, National
                          Development Bank Building
                          (Zhicheng Building), No. 2,
                          Gaoxin 1st Road, Xi'an High-
                          tech Zone, Xi'an, China.
                         Huawei Terminal (Shenzhen)
                          Co., Ltd., Huawei Base, B1,
                          Shenzhen, China.
                         Nanchang Huawei
                          Communication Technology,
                          No. 188 Huoju Street, F10-
                          11, Nanchang, China.
                         Ningbo Huawei Computer & Net
                          Co., Ltd., No. 48 Daliang
                          Street, Ningbo, China.
                         Shanghai Huawei Technologies
                          Co., Ltd., R&D center, No.
                          2222, Golden Bridge Road,
                          Pu Dong District, Shanghai,
                          286305 Shanghai, China,
                          China.
                         Shenzhen Huawei Anjiexin
                          Electricity Co., Ltd.,
                          a.k.a., the following one
                          alias: -Shenzhen Huawei
                          Agisson Electric Co., Ltd.
                          Building 2, Area B, Putian
                          Huawei Base, Longgang
                          District, Shenzhen, China;
                          and Huawei Base, Building
                          2, District B, Shenzhen,
                          China.
                         Shenzhen Huawei New
                          Technology Co., Ltd.,
                          Huawei Production Center,
                          Gangtou Village, Buji Town,
                          Longgang District,
                          Shenzhen, China.
                         Shenzhen Huawei Technology
                          Service, Huawei Base,
                          Building 2, District B,
                          Shenzhen, China.
                         Shenzhen Huawei Technologies
                          Software, Huawei Base,
                          Building 2, District B,
                          Shenzhen, China.
                         Zhejiang Huawei
                          Communications Technology
                          Co., Ltd., No. 360 Jiangshu
                          Road, Building 5, Hangzhou,
                          Zhejiang, China.
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
\1\ For this entity, see Sec.   734.9(e) of the EAR for foreign-produced items that are subject to the EAR and
  Sec.   744.11 of the EAR for related license requirements, license review policy, and applicable license
  exceptions.
\2\ Cybersecurity research and vulnerability disclosure. The following exports, reexports, and transfers (in-
  country) to Huawei Technologies Co., Ltd. (Huawei) and its non-U.S. affiliates on the Entity List for
  cybersecurity research and vulnerability disclosure subject to other provisions of the EAR are excluded from
  the Entity List license requirements: when the disclosure to Huawei and/or to its listed non-U.S. affiliates
  is limited to information regarding security vulnerabilities in items owned, possessed, or controlled by
  Huawei or any of its non-U.S. affiliates when related to the process of providing ongoing security research
  critical to maintaining the integrity and reliability of existing and currently 'fully operational network'
  and equipment. A 'fully operational network' refers to a 'third party' network providing services to the
  'third party's' customers. The term 'third party' refers to a party that is not Huawei, one of its listed non-
  U.S. affiliates, or the exporter, reexporter, or transferor, but rather an organization such as a
  telecommunications service provider.

* * * * *

Thea D. Rozman Kendler,
Assistant Secretary for Export Administration.
[FR Doc. 2022-07643 Filed 4-8-22; 8:45 am]
BILLING CODE 3510-33-P