Document ID: BIS-2015-0040-0001
Agency: bis
Document Type: Rule
Title: Revisions to the Unverified List
Posted Date: 2015-10-07T04:00Z

[Federal Register Volume 80, Number 194 (Wednesday, October 7, 2015)]
[Rules and Regulations]
[Pages 60529-60533]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-25450]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 744

[Docket No. 150817734-5734-01]
RIN 0694-AG72

Revisions to the Unverified List (UVL)

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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SUMMARY: The Bureau of Industry and Security (BIS) is amending the 
Export Administration Regulations (EAR) by adding twelve (12) persons 
to the Unverified List (the ``Unverified List'' or UVL), adding 
additional addresses for four (4) persons currently listed on the UVL, 
and removing two (2) persons

[[Page 60530]]

from the UVL. The 12 persons are being added to the UVL on the basis 
that BIS could not verify their bona fides because an end-use check 
could not be completed satisfactorily for reasons outside the U.S. 
Government's control. New addresses are added for four current UVL 
persons because BIS has determined they are receiving U.S. exports at 
addresses not previously included in their UVL listings. Finally, two 
persons are removed from the UVL based on BIS's ability to verify those 
person's bona fides through the successful completion of end-use 
checks.

DATES: Effective date: This rule is effective: October 7, 2015.

FOR FURTHER INFORMATION CONTACT: Kevin Kurland, Director, Office of 
Enforcement Analysis, Bureau of Industry and Security, Department of 
Commerce, Phone: (202) 482-4255 or by email at UVLRequest@bis.doc.gov.

SUPPLEMENTARY INFORMATION: 

Background

    The Unverified List, found in Supplement No. 6 to Part 744 to the 
EAR, contains the names and addresses of foreign persons who are or 
have been parties to a transaction, as that term is described in Sec.  
748.5 of the EAR, involving the export, reexport, or transfer (in-
country) of items subject to the EAR, and whose bona fides BIS has been 
unable to verify through an end-use check. BIS may add persons to the 
UVL when BIS or federal officials acting on BIS's behalf have been 
unable to verify a foreign person's bona fides (i.e., legitimacy and 
reliability relating to the end use and end user of items subject to 
the EAR) because an end-use check, such as a pre-license check (PLC) or 
a post-shipment verification (PSV), cannot be completed satisfactorily 
for such purposes for reasons outside the U.S. Government's control.
    End-use checks cannot be completed for a number of reasons, 
including reasons unrelated to the cooperation of the foreign party 
subject to the end-use check. For example, BIS sometimes initiates end-
use checks and cannot find a foreign party at the address indicated on 
export documents, and cannot locate the party by telephone or email. 
Additionally, BIS sometimes is unable to conduct end-use checks when 
host government agencies do not respond to requests to conduct end-use 
checks, are prevented from scheduling such checks by a party to the 
transaction other than the foreign party that is the proposed subject 
of the end-use check, or the parties refuse to schedule them in a 
timely manner. Under these circumstances, although BIS has an interest 
in informing the public of its inability to verify the foreign party's 
bona fides, there may not be sufficient information to add the foreign 
persons at issue to the Entity List under Sec.  744.11 of the EAR 
(Criteria for revising the Entity List). In such circumstances, BIS may 
add the foreign persons to the UVL.
    Furthermore, BIS sometimes conducts end-use checks but cannot 
verify the bona fides of a foreign party. For example, BIS may be 
unable to verify bona fides if, during the conduct of an end-use check, 
a recipient of items subject to the EAR is unable to produce those 
items for visual inspection or provide sufficient documentation or 
other evidence to confirm the disposition of those items. The inability 
of foreign persons subject to end-use checks to demonstrate their bona 
fides raises concerns about the suitability of such persons as 
participants in future exports, reexports, or transfers (in-country) 
and indicates a risk that items subject to the EAR may be diverted to 
prohibited end uses and/or end users. However, BIS may not have 
sufficient information to establish that such persons are involved in 
activities described in part 744 of the EAR, preventing the placement 
of the persons on the Entity List. In such circumstances, the foreign 
persons may be added to the Unverified List.
    As provided in Sec.  740.2(a)(17) of the EAR, the use of license 
exceptions for exports, reexports, and transfers (in-country) involving 
a party or parties to the transaction who are listed on the UVL is 
suspended. Additionally, under Sec.  744.15(b) of the EAR, there is a 
requirement for exporters, reexporters, and transferors to obtain (and 
keep a record of) a UVL statement from a party or parties to the 
transaction who are listed on the UVL before proceeding with exports, 
reexports, and transfers (in-country) to such persons, when the 
exports, reexports and transfers (in-country) are not subject to a 
license requirement.
    Requests for removal of a UVL entry must be made in accordance with 
Sec.  744.15(d) of the EAR. Decisions regarding the removal or 
modification of UVL listings will be made by the Deputy Assistant 
Secretary for Export Enforcement, based on a demonstration by the 
listed person of its bona fides.

Changes to the EAR

Supplement No. 6 to Part 744 (``the Unverified List'' or ``UVL'')

    Among other things, this rule adds twelve (12) persons to the UVL 
by amending Supplement No. 6 to Part 744 of the EAR to include their 
names and addresses. BIS adds these persons in accordance with the 
criteria for revising the UVL set forth in Sec.  744.15(c) of the EAR. 
The new entries consist of one person located in Canada, one person 
located in the Czech Republic, one person located in Georgia, four 
persons located in Hong Kong, and five persons located in the United 
Arab Emirates. Each listing is grouped within the UVL by country and 
accompanied by the party's name(s) in alphabetical order under the 
country, available alias(es) and address(es), as well as the Federal 
Register citation and the date the person was added to the UVL. The UVL 
is included in the Consolidated Screening List, available at 
www.export.gov.
    This rule also adds new addresses for four current UVL persons in 
Hong Kong: (1) AST Technology Group (HK) Ltd.; (2) E-Chips Technology; 
(3) Ling Ao Electronic Technology Co. Ltd., a.k.a. Voyage Technology 
(HK) Co. Ltd.; and (4) Narpel Technology Co., Limited. BIS has 
determined that these persons are receiving U.S. exports at addresses 
other than those originally included in their UVL entries.
    Lastly, this rule removes from the UVL two entries: One located in 
Hong Kong and one located in Pakistan.
    The following entry (at three different locations) under the 
country heading Hong Kong is removed:

    Ditis Hong Kong Ltd., Room 227-228, 2/F, Metre Centre II, 21 Lam 
Hing Street, Kowloon Bay, Kowloon, Hong Kong and Ditis Hong Kong 
Ltd., Rooms 1318-1320, Hollywood Plaza, 610 Nathan Road, Mong Kok, 
Kowloon, Hong Kong and Ditis Hong Kong Ltd., Room 205, 2/F, Sunley 
Centre, 9 Wing Tin Street, Kwai Chung, New Territories, Hong Kong.

    The following entry under the country heading Pakistan is removed:

    Fauji Fertilizer Company Ltd., 156 The Mall, Rawalpindi, Cantt, 
Pakistan.

    These persons are removed from the UVL based on BIS's ability to 
confirm their bona fides through the successful completion of end-use 
checks. The removal of the above referenced persons from the UVL 
eliminates the restrictions against the use of license exceptions and 
the requirements specific to exports, reexports and transfers (in-
country) not otherwise requiring a license to these persons, as 
described in Sec.  744.15 of the EAR. However, the removal of these 
persons from the UVL does not remove other obligations under part 744 
of the EAR or under other parts of the EAR. Neither the removal of 
persons from the UVL nor the removal of UVL-based restrictions and 
requirements relieves a person of the obligation to obtain a

[[Page 60531]]

license if the person knows that an export or reexport of any item 
subject to the EAR is destined to an end user or end use set forth in 
part 744, other than Sec.  744.15, 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.

Savings Clause

    Shipments (1) removed from license exception eligibility or that 
are now subject to requirements in Sec.  744.15 of the EAR as a result 
of this regulatory action,; (2) eligible for export, reexport, or 
transfer (in-country) without a license before this regulatory action; 
and (3) on dock for loading, on lighter, laden aboard an exporting 
carrier, or en route aboard a carrier to a port of export, on October 
7, 2015, pursuant to actual orders, may proceed to that UVL listed 
person under the previous license exception eligibility or without a 
license so long as the items have been exported from the United States, 
reexported or transferred (in-country) before November 6, 2015. Any 
such items not actually exported, reexported or transferred (in-
country) before midnight, on November 6, 2015, are subject to the 
requirements in Sec.  744.15 of the EAR in accordance with this 
regulation.

Export Administration Act

    Since August 21, 2001, the Export Administration Act of 1979, as 
amended, has been in lapse. However, 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 7, 2015 (80 FR 48233 
(Aug. 11, 2015) has continued the EAR in effect under the International 
Emergency Economic Powers Act (50 U.S.C. 1701 et seq.). 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 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 not been designated a ``significant 
regulatory action,'' under section 3(f) of Executive Order 12866.
    2. 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--which is adding 12 persons, removing two persons, and updating 
the addresses of four other persons listed on the UVL--because this 
regulation involves military or foreign affairs under Sec.  553(a)(1). 
BIS implements this rule to protect U.S. national security or foreign 
policy interests by requiring a license for items being exported, 
reexported, or transferred (in country) involving a party or parties to 
the transaction who are listed on the UVL. If this rule were delayed to 
allow for notice and comment and a delay in effective date, the 
entities being added to the UVL by this action and those entities 
operating at previously unlisted addresses would continue to be able to 
receive items without additional oversight by BIS 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 UVL, and create an incentive for these persons to 
accelerate receiving items subject to the EAR in furtherance of 
activities contrary to the national security or foreign policy 
interests of the United States, and/or take steps to set up additional 
aliases, change addresses, and other measures to try to limit the 
impact of the listing once a final rule is effective.
    The Department finds there is good cause to waive the provisions of 
the Administrative Procedure Act requiring prior notice and the 
opportunity for public comment, under 5 U.S.C. 553(b)(B), and a thirty 
day delay of the effective date, under 5 U.S.C. 553(d)(3), to the 
provision of this rule removing two persons from the UVL because doing 
so is contrary to the public interest and unnecessary. The removals are 
being made following the completion of successful end-use checks. If 
the rule were to be delayed to allow for public comment, U.S. exporters 
may face unnecessary economic losses as they turn away potential sales 
because the customer remained a listed person on the UVL even after BIS 
was able to verify that entity's bona fides through an end-use check. 
By publishing without prior notice and comment, BIS allows the entity 
to receive U.S. exports as quickly as possible following their 
cooperation in a successful end-use check. By quickly removing entities 
from the UVL following the successful completion of an end-use check, 
BIS encourages other entities to cooperate in end-use checks requested 
by BIS. 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.
    3. Notwithstanding any other provision of law, no person is 
required to respond to, nor is 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 the following control 
numbers: 0694-0088, 0694-0122, 0694-0134, and 0694-0137. The addition, 
revision, and removal of individuals to the UVL do not change the 
collection of information requirements placed on the public by the UVL 
implementing regulations.
    4. This rule does not contain policies with Federalism implications 
as that term is defined in Executive Order 13132.

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 to 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 
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

[[Page 60532]]

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 17, 2014, 79 FR 56475 
(September 19, 2014); Notice of November 7, 2014, 79 FR 67035 
(November 12, 2014); Notice of January 21, 2015, 80 FR 3461 (January 
22, 2015); Notice of August 7, 2015, 80 FR 48233 (August 11, 2015).

0
2. Supplement No. 6 to Part 744 is amended by:
0
a. Adding an entry for ``Canada'' in alphabetical order;
0
b. Adding an entry for ``Czech Republic'' in alphabetical order;
0
c. Adding an entry for ``Georgia'' in alphabetical order;
0
d. Revising the entry for ``AST Technology Group (HK) Ltd.'', under 
``Hong Kong'';
0
e. Removing the entry for ``Ditis Hong Kong Ltd.'' under ``Hong Kong'';
0
f. Revising the entry for ``E-Chips Technology'' under ``Hong Kong'';
0
g. Adding 3 entries for ``Foot Electronics Co. Ltd.'', ``GA Industry 
Co. Ltd.'', and ``Hua Fu Technology Co. Ltd.'' in alphabetical order, 
under ``Hong Kong'';
0
h. Revising the entry for ``Ling Ao Electronic Technology Co. Ltd., 
a.k.a. Voyage Technology (HK) Co. Ltd.'' under ``Hong Kong'';
0
i. Revising the entry for ``Narpel Technology Co., Limited'' under 
``Hong Kong'';
0
j. Adding an entry for ``Yogone Electronics Co.'' in alphabetical 
order, under ``Hong Kong'';
0
k. Removing the entry for ``Fauji Fertilizer Company Ltd.'' under 
``Pakistan''; and
0
l. Adding 5 entries, in alphabetical order, under the ``United Arab 
Emirates''.
    The additions and revisions read as follows:

Supplement No. 6 to Part 744--Unverified List

* * * * *

------------------------------------------------------------------------
                                                      Federal Register
           Country              Listed person and   citation and date of
                                     address             publication
------------------------------------------------------------------------
CANADA......................  Rizma, Inc., 1403-8   80 FR [INSERT FR
                               McKee Avenue,         PAGE NUMBER], 10/7/
                               Toronto, Ontario      15.
                               M2N 7E5, Canada.
 
                              * * * * * * *
CZECH REPUBLIC..............  Bonitopto S.R.O.,     80 FR [INSERT FR
                               Vancurova 1084/10,    PAGE NUMBER], 10/7/
                               Ostrov 363 01,        15.
                               Czech Republic;
                               and, Jachymovska
                               178, Ostrov 363 01,
                               Czech Republic.
GEORGIA.....................  Spars Ltd., a.k.a.    80 FR [INSERT FR
                               Spars Trading Ltd.,   PAGE NUMBER], 10/7/
                               Room 1, House 11,     15.
                               Nutsubdize 111
                               marker, Tbilisi,
                               Georgia, 0183.
HONG KONG...................  AST Technology Group  80 FR 4779 01/29/15;
                               (HK) Ltd., Flat 6,    80 FR [INSERT FR
                               20/F, Mega Trade      PAGE NUMBER], 10/7/
                               Centre, 1-9 Mei Wan   15.
                               Street, Tsuen Wan,
                               Hong Kong; and Unit
                               2209, 22/F, Wu
                               Chung House, 213
                               Queen's Road East,
                               Wan Chai, Hong
                               Kong; and Unit
                               2103, 21/F, Sino
                               Centre, 582-592
                               Nathan Road, Mong
                               Kok, Kowloon, Hong
                               Kong.
 
                              * * * * * * *
                              E-Chips Technology,   80 FR 4779 01/29/15;
                               Unit 4, 7/F, Bright   80 FR [INSERT FR
                               Way Tower, No. 33     PAGE NUMBER], 10/7/
                               Mong Kok Road, Mong   15.
                               Kok, Kowloon, Hong
                               Kong; and Flat
                               1205, 12/F, Tai
                               Sang Bank Building,
                               130-132 Des Voeux
                               Road Hong Kong.
                              Foot Electronics Co.  80 FR [INSERT FR
                               Ltd., Unit 2103, 21/  PAGE NUMBER], 10/7/
                               F, Sino Centre, 582-  15.
                               592 Nathan Road,
                               Mong Kok, Kowloon,
                               Hong Kong; and Rm.
                               19C, Lockhart
                               Centre, 301-307
                               Lockhart Road, Wan
                               Chai, Hong Kong.
                              GA Industry Co.       80 FR [INSERT FR
                               Ltd., Room 1103,      PAGE NUMBER], 10/7/
                               Hang Seng Mong Kok    15.
                               Building, 677
                               Nathan Road,
                               Kowloon, Hong Kong.
 
                              * * * * * * *
                              Hua Fu Technology     80 FR [INSERT FR
                               Co. Ltd., Rm 1209,    PAGE NUMBER], 10/7/
                               12/F, Workingbond     15.
                               Commercial Centre,
                               162 Prince Edward
                               Road West, Mong
                               Kok, Kowloon, Hong
                               Kong.
 
                              * * * * * * *
                              Ling Ao Electronic    80 FR 4779 01/29/15;
                               Technology Co.        80 FR [INSERT FR
                               Ltd., a.k.a. Voyage   PAGE NUMBER], 10/7/
                               Technology (HK) Co.   15.
                               Ltd., Room 17, 7/F,
                               Metro Centre Phase
                               1, No. 32 Lamhing
                               St., Kowloon Bay,
                               Hong Kong; and 15B,
                               15/F, Cheuk Nang
                               Plaza, 250 Hennessy
                               Road, Hong Kong;
                               and Flat C, 11/F,
                               Block No. 2, 62 Hoi
                               Yu Street, Kowloon,
                               Hong Kong; and Room
                               C1-D, 6/F, Wing
                               Hing Industrial
                               Building, 14 Hing
                               Yip Street, Kwun
                               Tong, Kowloon, Hong
                               Kong.
 

[[Page 60533]]

 
                              * * * * * * *
                              Narpel Technology     79 FR 34217, 06/16/
                               Co., Limited, Unit    14; 80 FR 4779 01/
                               A, 6/F, Yip Fat       29/15; 80 FR
                               Factory Building,     [INSERT FR PAGE
                               Phase 1, No 77 Hoi    NUMBER], 10/7/15.
                               Yuen Road, Kwun
                               Tong, Kowloon, Hong
                               Kong; and Room 4C,
                               8/F, Sunbeam
                               Centre, 27 Shing
                               Yip Street, Kwun
                               Tong, Kowloon, Hong
                               Kong; and Room
                               1905, Nam Wo Hong
                               Building, 148 Wing
                               Lok Street, Sheung
                               Wan, Hong Kong; and
                               15B, 15/F, Cheuk
                               Nang Plaza, 250
                               Hennessy Road, Wan
                               Chai, Hong Kong.
 
                              * * * * * * *
                              Yogone Electronics    80 FR [INSERT FR
                               Co., Unit 602, 6/F,   PAGE NUMBER], 10/7/
                               Silvercord Tower 2,   15.
                               30 Canton Road,
                               Tsim Sha Tsui,
                               Kowloon, Hong Kong.
 
                              * * * * * * *
UNITED ARAB EMIRATES........                   * * * * *
                              Gulf Modern           80 FR [INSERT FR
                               Solutions             PAGE NUMBER], 10/7/
                               Engineering           15.
                               Company, No. 14,
                               35B Street, Al
                               Satwa Road, Dubai,
                               UAE.
                              Masomi General        80 FR [INSERT FR
                               Trading, Unit No.     PAGE NUMBER], 10/7/
                               B605, Baniyas         15.
                               Complex, Baniyas
                               Square, P.O. Box
                               39497, Dubai, UAE.
                              Recaz Star General    80 FR [INSERT FR
                               Trading LLC, #307     PAGE NUMBER], 10/7/
                               Naser Lootah          15.
                               Building, Khalid
                               bin Waleed Road,
                               Dubai, UAE.
                              Renat International   80 FR [INSERT FR
                               General Trading,      PAGE NUMBER], 10/7/
                               Office #H241,         15.
                               Building #1G, Ajman
                               Free Zone, Ajman,
                               UAE; and Building
                               #H1, Behind China
                               Mall, Ajman Free
                               Zone Area, Ajman,
                               UAE.
 
                              * * * * * * *
                              Trade Star FZC,       80 FR [INSERT FR
                               Sheikh Zayed Road,    PAGE NUMBER], 10/7/
                               Al Mossa Tower 1,     15.
                               17th Floor, Dubai,
                               UAE; and P.O. Box
                               51159, Sharjah,
                               UAE; and ELOB
                               Office #E55G-31,
                               Hamriyah Free Zone,
                               Sharjah, UAE.
 
                              * * * * * * *
------------------------------------------------------------------------

    Dated: October 1, 2015.
Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 2015-25450 Filed 10-6-15; 8:45 am]
 BILLING CODE 3510-33-P