Document ID: BIS-2010-0019-0001
Agency: bis
Document Type: Rule
Title: Implementation of Changes from the 2009 Annual Review of the Entity List
Posted Date: 2010-05-28T04:00Z

[Federal Register: May 28, 2010 (Volume 75, Number 103)]
[Rules and Regulations]               
[Page 29884-29886]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr28my10-2]                         

[[Page 29884]]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 744

[Docket No. 100311137-0138-01]
RIN 0694-AE88

 
Implementation of Changes from the 2009 Annual Review of the 
Entity List

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final Rule.

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SUMMARY: This rule amends the Export Administration Regulations (EAR) 
to implement changes to the Entity List (Supplement No. 4 to Part 744) 
on the basis of the 2009 annual review of the Entity List conducted by 
the End-User Review Committee. The changes from the annual review will 
be implemented in two rules. The first rule published today implements 
the results of the annual review for listed entities under eleven 
destinations on the Entity List: Canada, Egypt, Germany, Hong Kong, 
Israel, Kuwait, Lebanon, Malaysia, South Korea, Singapore, and the 
United Kingdom.
    The second rule will implement the results of the annual review for 
entities listed under the remaining seven destinations that were 
included in the 2009 annual review: China, India, Iran, Pakistan, 
Russia, Syria, and the United Arab Emirates. Entities listed under the 
destinations of Armenia, Ireland or Taiwan were not included in the 
2009 annual review because they were added to the Entity List in 2009 
or 2010.
    The Entity List provides notice to the public that certain exports, 
reexports, and transfers (in-country) to entities identified on the 
Entity List require a license from the Bureau of Industry and Security 
and that availability of license exceptions in such transactions is 
limited.

DATES: Effective Date: This rule is effective May 28, 2010. Although 
there is no formal comment period, public comments on this regulation 
are welcome on a continuing basis.

ADDRESSES: You may submit comments, identified by RIN 0694-AE88, by any 
of the following methods:
    E-mail: publiccomments@bis.doc.gov Include ``RIN 0694-AE88'' in the 
subject line of the message.
    Fax: (202) 482-3355. Please alert the Regulatory Policy Division, 
by calling (202) 482-2440, if you are faxing comments.
    Mail or Hand Delivery/Courier: Timothy Mooney, U.S. Department of 
Commerce, Bureau of Industry and Security, Regulatory Policy Division, 
14th St. & Pennsylvania Avenue, NW., Room 2705, Washington, DC 20230, 
Attn: RIN 0694-AE88. 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 e-mail to Jasmeet_K._Seehra@omb.eop.gov, or by fax 
to (202) 395-7285; and to the Regulatory Policy Division, Bureau of 
Industry and Security, Department of Commerce, 14th St. & Pennsylvania 
Avenue, NW., Room 2705, Washington, DC 20230. Comments on this 
collection of information should be submitted separately from comments 
on the final rule (i.e., RIN 0694-AE88)--all comments on the latter 
should be submitted by one of the three methods outlined above.

FOR FURTHER INFORMATION CONTACT: Susan Kramer, Acting Chairman, End-
User Review Committee, Office of the Assistant Secretary, Export 
Administration, Bureau of Industry and Security, Department of 
Commerce, Phone: (202) 482-0117, Fax: (202) 482-4145, E-mail: 
skramer@bis.doc.gov.

SUPPLEMENTARY INFORMATION:

Background

    The Entity List provides notice to the public that certain exports, 
reexports, and transfers (in-country) to entities identified on the 
Entity List require a license from the Bureau of Industry and Security 
(BIS) and that availability of license exceptions in such transactions 
is limited. Entities are placed on the Entity List on the basis of 
certain sections of part 744 (Control Policy: End-User and End-Use 
Based) 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 to make additions to, 
removals from and other changes 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.

2009 Annual Review of the Entity List

    This rule amends the Export Administration Regulations (EAR) to 
implement changes to the Entity List (Supplement No. 4 to part 744) on 
the basis of the 2009 annual review of the Entity List conducted by the 
ERC, in accordance with the procedures outlined in Supplement No. 5 to 
part 744 (Procedures for End-User Review Committee Entity List 
Decisions).
    As of January 1, 2009, entities on the Entity List were listed 
under one or more of eighteen different destinations. The changes from 
the 2009 annual review of the Entity List that were approved by the ERC 
will be implemented in two rules. The first rule published today 
implements the results of the annual review for listed entities under 
eleven destinations on the Entity List: Canada, Egypt, Germany, Hong 
Kong, Israel, Kuwait, Lebanon, Malaysia, South Korea, Singapore, and 
the United Kingdom. The second rule will implement the results of the 
annual review for entities listed under the remaining seven 
destinations: China, India, Iran, Pakistan, Russia, Syria, and the 
United Arab Emirates. Entities listed under the destinations of 
Armenia, Ireland or Taiwan were not included in the 2009 annual review 
because they were added to the Entity List in 2009 or 2010.

 ERC Entity List Decisions

    This rule removes one entity from the Entity List under Hong Kong. 
This rule also makes two modifications to the Entity List: by making a 
correction to the address of one entity listed under Egypt, and by 
making a clarification to the license requirement for one entity listed 
under Israel. On the basis of the 2009 annual review, no additional 
changes will be made to listed entities under the following eight 
destinations: Canada, Germany, Kuwait, Lebanon, Malaysia, South Korea, 
Singapore, and the United Kingdom.

Removal From the Entity List

    The entity being removed from the Entity List is located in Hong 
Kong:

Hong Kong

    (1) Speedy Electronics Ltd., 1206-7, 12/F New Victory House, Hong 
Kong.
    The removal of Speedy Electronics Ltd. from the Entity List (from 
Hong Kong, as described above) eliminates the existing license 
requirement in Supplement No. 4 to part 744 for exports, reexports and 
transfers (in-country) to this entity. However, the removal of Speedy 
Electronics Ltd. from the Entity List does not relieve persons of other 
obligations under part 744 of the EAR or under other parts of the EAR. 
Neither the removal of an entity from the Entity List nor the removal 
of Entity List-based license requirements relieves persons of their 
obligations under General Prohibition 5 in Sec.  736.2(b)(5) of the EAR 
which provides that, ``you may not, without a license, knowingly export 
or reexport any item

[[Page 29885]]

subject to the EAR to an end-user or end-use that is prohibited by part 
744 of the EAR.'' Nor do such removals 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.

Modifications to the Entity List

    (1) This rule amends one Egyptian entry currently on the Entity 
List by adding an additional address for the entity listed, as follows:

Egypt

    H Logic, Behind 14 Mahmoud Sedky St., El Ekbal, Alexandria, Egypt; 
and 11 Abd El-Hamid Shoman St., Nasser City, Cairo.
    A BIS license is required for the export, reexport or transfer (in-
country) of any item subject to the EAR to H Logic, including any 
transaction in which this listed entity will act as purchaser, 
intermediate consignee, ultimate consignee, or end-user of the items. 
This listing of this entity also prohibits the use of license 
exceptions (see part 740 of the EAR) for exports, reexports and 
transfers (in-country) of items subject to the EAR involving this 
entity.
    (2) Finally, this rule amends one Israeli entry currently on the 
Entity List (i.e., Ben Gurion University) by revising the license 
requirement for the entity listed. This change was needed because the 
license requirement for this listed entity prior to publication of this 
rule was based on a section of the EAR that is no longer in the EAR 
(i.e., Section 742.12 (High Performance Computers)). This section of 
the EAR was removed and reserved on April 24, 2006 (71 FR 20876). To 
conform to the April 2006 change and to clarify the Entity List based 
license requirement for this listed entity, this rule is revising the 
license requirement to indicate the license requirement applies to 
computers above the Tier 3 level described in Section 740.7(d) of 
License APP (Computers). The entity column and the revision to the 
license requirement column for this listed entity is, as follows:

Israel

    Ben Gurion University, Israel.

License Requirement

    For computers above the Tier 3 level described in Section 740.7(d) 
(i.e., Tier 3 under APP).
    A BIS license is required for the export, reexport or transfer (in-
country) of any computers above the Tier 3 level described in Section 
740.7(d) (i.e., Tier 3 under APP) subject to the EAR to Ben Gurion 
University, including any transaction in which this listed entity will 
act as purchaser, intermediate consignee, ultimate consignee, or end-
user of the items. This listing of this entity also prohibits the use 
of license exceptions (see part 740 of the EAR) for exports, reexports 
and transfers (in-country) of these types of computers subject to the 
EAR involving this entity.

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 on dock for loading, on lighter, laden 
aboard an exporting or reexporting carrier, or en route aboard a 
carrier to a port of export or reexport, on May 28, 2010 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) so long 
as they are exported or reexported before June 28, 2010. Any such items 
not actually exported or reexported before midnight, on June 28, 2010, 
require a license in accordance with this rule.
    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 extended by the Notice of August 13, 
2009, 74 FR 41325 (August 14, 2009), has continued the Export 
Administration Regulations in effect under the International Emergency 
Economic Powers Act.

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 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 the OMB under control numbers 0694-
0088, ``Multi-Purpose Application,'' which carries a burden hour 
estimate of 58 minutes to prepare and submit form BIS-748. 
Miscellaneous and recordkeeping activities account for 12 minutes per 
submission. Total burden hours associated with the Paperwork Reduction 
Act and Office and Management and Budget control number 0694-0088 are 
expected to increase slightly 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. The provisions of the Administrative Procedure Act (5 U.S.C. 
553) requiring notice of proposed rulemaking, the opportunity for 
public participation, and a delay in effective date, are inapplicable 
because this regulation involves a military or foreign affairs function 
of the United States. (See 5 U.S.C. 553(a)(1)). 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.

List of Subjects in 15 CFR Part 744

    Exports, Reporting and recordkeeping requirements, Terrorism.

0
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 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 
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 August 13, 2009, 74 FR 41325 
(August 14, 2009); Notice of November 6, 2009, 74 FR 58187 (November 
10, 2009).

0
2. Supplement No. 4 to part 744 is amended:
0
a. By removing under Hong Kong, one Hong Kong entity ``Speedy 
Electronics Ltd., 1206-7, 12/F New Victory House, Hong Kong'';
0
b. By revising under Egypt, in alphabetical order, one Egyptian entity; 
and

[[Page 29886]]

0
c. By revising under Israel, in alphabetical order, one Israeli entity;
    The revisions read as follows:

                                    Supplement No. 4 to Part 744--Entity List
----------------------------------------------------------------------------------------------------------------
                                                                          License review       Federal Register
         Country                  Entity          License requirement         policy               citation
----------------------------------------------------------------------------------------------------------------

                                                  * * * * * * *
EGYPT....................  H Logic, Behind 14    For all items         Presumption of        73 FR 54504, 9/22/
                            Mahmoud Sedky St.,    subject to the EAR.   denial.               08. 75 FR [Insert
                            El Ekbal,             (See Sec.   744.11                          FR page number and
                            Alexandria, Egypt;    of the EAR).                                5/28/10.
                            and 11 Abd El-Hamid
                            Shoman St., Nasser
                            City, Cairo.

                                                  * * * * * * *
ISRAEL...................  Ben Gurion            For computers above   Case-by-case basis..  62 FR 4910, 2/3/97
                            University, Israel.   the Tier 3 level                            65 FR 12919, 03/10/
                                                  described in                                00. 75 FR [Insert
                                                  Section 740.7(d)                            FR page number and
                                                  (i.e., Tier 3 under                         5/28/10.
                                                  APP)..

                                                   * * * * * *
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    Dated: May 21, 2010.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2010-12956 Filed 5-27-10; 8:45 am]
BILLING CODE 3510-33-P