Document ID: BIS-2024-0010-0001
Agency: bis
Document Type: Rule
Title: Additions to the Entity List
Posted Date: 2023-11-21T05:00Z

[Federal Register Volume 88, Number 223 (Tuesday, November 21, 2023)]
[Rules and Regulations]
[Pages 80955-80958]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-25684]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 744

[Docket No. 231115-0270]
RIN 0694-AJ45

Additions to the Entity List

AGENCY: Bureau of Industry and Security, Department of Commerce.

ACTION: Final rule.

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SUMMARY: In this rule, the Bureau of Industry and Security (BIS) amends 
the Export Administration Regulations (EAR) by adding four entities 
under nine entries to the Entity List. These entities are listed under 
the destinations of Costa Rica (1), Ecuador (1), India (1) Panama (2), 
Spain (1), Russia (1), and Venezuela (2). These entities have been 
determined by the U.S. Government to be acting contrary to the national 
security or foreign policy interests of the United States. Some 
entities are added under multiple entries, accounting for the 
difference in the totals.

DATES: This rule is effective November 17, 2023.

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

    The Entity List (supplement no. 4 to part 744 of the 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, pursuant to Sec.  
744.11(b). The EAR impose additional license requirements on, and limit 
the availability of, most license exceptions for exports, reexports, 
and transfers (in-country) when a listed entity is a party to the 
transaction. The license review policy for each listed entity is 
identified in the

[[Page 80956]]

``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 that added the entity to the Entity List. The 
Bureau of Industry and Security (BIS) places entities on the Entity 
List pursuant to parts 744 (Control Policy: End-User and End-Use Based) 
and 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.

Entity List Decisions

Additions to the Entity List

    The ERC determined to add Aerofalcon S.L., under the destination of 
Spain; Novax Group S.A., under the destinations of Costa Rica, Ecuador, 
Panama, Venezuela, and Russia; and Zero Waste Global SA, under the 
destinations of Panama and Venezuela, to the Entity List. These 
entities are added to the Entity List pursuant to Sec.  744.11 of the 
EAR for engaging in activities contrary to U.S. national security and 
foreign policy interests. Specifically, these entities were used by 
their principals to circumvent U.S. sanctions, supplying the 
representatives of Nicol[aacute]s Maduro in Venezuela with U.S. origin 
aircraft parts. This circumvention was conducted by, among other 
efforts, concealing the true end user and end destination of the 
exports using misrepresentations and fraudulent documents, including 
the filing of false Electronic Export Information. These entities will 
be added with a license requirement for all items subject to the EAR 
and a license review policy of presumption of denial.
    The ERC determined to add Si2 Microsystems Private Limited, under 
the destination of India, to the Entity List. This entity is added to 
the Entity List for providing support to Russia's military and/or 
defense industrial base. Specifically, this entity supplied Russian 
consignees connected to the Russian defense sector with U.S.-origin 
integrated circuits after March 1, 2023. These integrated circuits are 
classified under Harmonized Tariff System (HTS)-6 codes 854231, 854232, 
854233, and/or 854239. These HTS-6 codes are identified under 
supplement no. 4 to part 746 (Russian and Belarusian Industry Sector 
Sanctions Pursuant to Sec.  746.5(a)(1)(ii)). All U.S.-origin items 
classified under these HTS-6 codes have been controlled for export and 
reexport and transfer within Russia since September 15, 2022. Such 
U.S.-origin items require a license under Sec.  746.5(a)(1)(ii) of the 
EAR when destined to Russia or Belarus.\1\
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    \1\ On February 24, 2023 (88 FR 12150), BIS also expanded 
controls to include certain foreign-made items classified under the 
same HTS-6 codes destined to Russia, due to their demonstrated use 
in weapons found on the battlefield in Ukraine. Such foreign-made 
items are subject to the EAR and the license requirements of Sec.  
746.8(a)(2) when a reexport, export from abroad, or transfer (in-
country) meets the destination scope of the Russia/Belarus/
Temporarily occupied Crimea region of Ukraine FDP (Foreign Direct 
Product) rule described in Sec.  734.9(f) of the EAR.
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    Therefore, the documented shipments by this entity to Russia of 
such U.S.-origin items are contrary to U.S. national security and 
foreign policy interests under Sec.  744.11(b) of the EAR. This entity 
will be added with a license requirement for all items subject to the 
EAR and a license review policy of denial.
    For the reasons described above, this final rule adds the following 
four entities, including aliases where appropriate, to the Entity List:
Costa Rica
     Novax Group S.A.
Ecuador
     Novax Group S.A.
India
     Si2 Microsystems Private Limited.
Panama
     Novax Group S.A.; and
     Zero Waste Global SA.
Spain
     Aerofalcon S.L.
Russia
     Novax Group S.A.
Venezuela
     Novax Group S.A.; and
     Zero Waste Global SA.

Savings Clause

    For the changes being made in this final rule, 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 17, 2023, 
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) 
before December 18, 2023. Any such items not actually exported, 
reexported or transferred (in-country) before midnight, on December 18, 
2023, require a license in accordance with this final rule.

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.

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 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 an 
information collection approved by OMB under control number 0694-0088, 
Simplified Network Application Processing System. BIS does not 
anticipate a change to the burden hours associated with this collection 
as a result of this rule. Information regarding the collection, 
including all supporting materials, can be accessed at https://www.reginfo.gov/public/do/PRAMain.
    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 the Export Control Reform Act of 
2018, 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

[[Page 80957]]

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--END-USE AND END-USER CONTROLS

0
1. The authority citation for 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 November 8, 2022, 87 FR 68015, 3 CFR, 2022 Comp., p. 563; Notice 
of September 7, 2023, 88 FR 62439 (September 11, 2023).

0
2. Supplement no. 4 is amended:
0
a. Under COSTA RICA, by adding, in alphabetical order, an entry for 
``Novax Group S.A.;''
0
b. Under ECUADOR, by adding, in alphabetical order, an entry for 
``Novax Group S.A.;''
0
c. Under INDIA, by adding, in alphabetical order, an entry for ``Si2 
Microsystems Private Limited.;''
0
d. Under PANAMA, by adding, in alphabetical order, entries for ``Novax 
Group S.A.;'' and ``Zero Waste Global SA;''
0
e. Under SPAIN, by adding, in alphabetical order, an entry for 
``Aerofalcon S.L.;''
0
f. Under RUSSIA, by adding in alphabetical order, an entry for ``Novax 
Group S.A.;'' and
0
g. Under VENEZUELA, by adding in alphabetical order, entries for 
``Novax Group S.A.,'' and ``Zero Waste Global SA.'' to read as follows:

Supplement No. 4 to Part 744--Entity List

* * * * *

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                                                            License,         License review     Federal Register
        Country                     Entity                 requirement           policy             citation
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                                                  * * * * * * *
COSTA RICA.............                                         * * * * * *
                         Novax Group S.A., Centro      For all items       Presumption of      88 FR [INSERT FR
                          Corporative Lindora,          subject to the      denial.             PAGE NUMBER AND
                          Oficina Nro. 2-10, Pozos de   EAR. (See Sec.                          11/21/2023].
                          Santa Ana, San Jose, 10903,   744.11 of the
                          Costa Rica. (See alternate    EAR).
                          addresses under Ecuador,
                          Panama, Russia, and
                          Venezuela).
                                                                * * * * * *
ECUADOR................                                         * * * * * *
                         Novax Group S.A., Avenida     For all items       Presumption of      88 FR [INSERT FR
                          Joaquin Orrantia y Juan       subject to the      denial.             PAGE NUMBER AND
                          Tanca Marengo, Torres del     EAR. (See Sec.                          11/21/2023].
                          Mall del Sol Piso 4, Torre    744.11 of the
                          B, Guayaquil, Ecuador. (See   EAR).
                          alternate addresses under
                          Costa Rica, Panama, Russia,
                          and Venezuela).
                                                                * * * * * *
INDIA..................                                         * * * * * *
                         Si2 Microsystems Private      For all items       Policy of denial..  88 FR [INSERT FR
                          Limited, 84, Deep Towers,     subject to the                          PAGE NUMBER AND
                          EPIP Industrial Area,         EAR (See Sec.                           11/21/2023].
                          Whitefield, Bangalore,        744.11 of the
                          Karnataka, 560066, India;     EAR).
                          and #52/A, 1st Cross, 3rd
                          Main KIADB Industrial Area,
                          Hoskote, Bangalore,
                          Karnataka, 562114, India;
                          and 3796, 7th Main, Hal II
                          Stage, Bangalore,
                          Karnataka, 560008, India;
                          and 493/3 Bramhalingeshwara
                          Complex, Airport Road,
                          Bangalore, Karnataka,
                          560008, India; and 177/2
                          Bannerghatta Road, Begur
                          Hobli Bilekahalli
                          Industrial Area, Bangalore,
                          Karnataka, 560076, India.
                                                                * * * * * *
PANAMA.................                                         * * * * * *
                         Novax Group S.A., Avenida     For all items       Presumption of      88 FR [INSERT FR
                          Aquilino de la Guardia con    subject to the      denial.             PAGE NUMBER AND
                          Calle 47, Edificio Ocean      EAR. (See Sec.                          11/21/2023].
                          Plaza, Piso 16, Oficina 8,    744.11 of the
                          Ciudad de Panama, Panama.     EAR).
                          (See alternate addresses
                          under Costa Rica, Ecuador,
                          Russia, and Venezuela).
                                                                * * * * * *
                         Zero Waste Global S.A., 58    For all items       Presumption of      88 FR [INSERT FR
                          Street Obarrios Office One    subject to the      denial.             PAGE NUMBER AND
                          Building, Suite 1302,         EAR. (See Sec.                          11/21/2023].
                          Panama City, Panama. (See     744.11 of the
                          alternate address under       EAR).
                          Venezuela).
                                                                * * * * * *
RUSSIA.................                                         * * * * * *
                         Novax Group S.A.,             For all items       Presumption of      88 FR [INSERT FR
                          Koptevskaya Ulitsa 67,        subject to the      denial.             PAGE NUMBER AND
                          Moscow, 125239, Russia.       EAR. (See Sec.                          11/21/2023].
                          (See alternate addresses      744.11 of the
                          under Costa Rica, Ecuador,    EAR).
                          Panama, and Venezuela).
                                                                * * * * * *
SPAIN..................                                         * * * * * *
                         Aerofalcon S.L., Calle        For all items       Presumption of      88 FR [INSERT FR
                          [Aacute]ngel Cavero 28,       subject to the      denial.             PAGE NUMBER AND
                          Madrid, 28043, Spain.         EAR. (See Sec.                          11/21/2023].
                                                        744.11 of the
                                                        EAR).
                                                                * * * * * *
VENEZUELA..............                                         * * * * * *

[[Page 80958]]

 
                         Novax Group S.A., Caracas,    For all items       Presumption of      88 FR [INSERT FR
                          Venezuela. (See alternate     subject to the      denial.             PAGE NUMBER AND
                          addresses under Costa Rica,   EAR. (See Sec.                          11/21/2023].
                          Ecuador, Panama, and          744.11 of the
                          Russia).                      EAR).
                         Zero Waste Global S.A.,       For all items       Presumption of      88 FR [INSERT FR
                          Between Avenida Beethoven     subject to the      denial.             PAGE NUMBER AND
                          and Avenida Principal de      EAR. (See Sec.                          11/21/2023].
                          Bello Monte, Edificio El      744.11 of the
                          Cigarral PH-A, Caracas, CP    EAR).
                          1050, Venezuela. (See
                          alternate address under
                          Panama).
                                                                * * * * * *
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* * * * *

Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 2023-25684 Filed 11-17-23; 8:45 am]
BILLING CODE 3510-33-P