Document ID: BIS-2009-0011-0001
Agency: bis
Document Type: Rule
Title: Addition and Removal of Certain Persons on the Entity List: Addition of Persons Acting Contrary to the National Security or Foreign Policy Interests of the United States; Removal of Persons Based on ERC Annual Review and Removal Requests; and Entry Modified for Purposes of Clarification
Posted Date: 2009-07-21T04:00Z

[Federal Register: July 21, 2009 (Volume 74, Number 138)]
[Rules and Regulations]               
[Page 35797-35801]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr21jy09-13]                         

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

DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 744

[Docket No. 090414651-91046-01]
RIN 0694-AE59

 
Addition and Removal of Certain Persons on the Entity List: 
Addition of Persons Acting Contrary to the National Security or Foreign 
Policy Interests of the United States; Removal of Persons Based on ERC 
Annual Review and Removal Requests; and Entry Modified for Purposes of 
Clarification

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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

SUMMARY: This rule amends the Export Administration Regulations (EAR) 
by adding thirteen additional persons to the Entity List (Supplement 
No. 4 to Part 744) on the basis of Section 744.11 of the EAR. The 
persons that are added to the Entity List have been determined by the 
U.S. Government to be acting contrary to the national security or 
foreign policy interests of the United States. This rule also amends 
the Export Administration Regulations by removing three persons from 
the Entity List. BIS removes one of the three persons from the Entity 
List as a result of a determination made by the United States 
Government during the annual review of the Entity List conducted by the 
End-User Review Committee (ERC). The two remaining persons are removed 
from the Entity List in response to a request for removal. Finally, 
this rule makes a correction to the address of one person listed on the 
Entity List. The Entity List provides notice to the public that certain 
exports and reexports to parties 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.

DATES: Effective Date: This rule is effective July 21, 2009. 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-AE59, by any 
of the following methods:
    E-mail: publiccomments@bis.doc.gov. Include ``RIN 0694-AE59'' 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-AE59.
    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-AE59)--all comments on the latter should be submitted by one 
of the three methods outlined above.

FOR FURTHER INFORMATION CONTACT: Elizabeth Scott Sangine, End-User 
Review Committee, Office of the Assistant Secretary, Export 
Administration, Bureau of Industry and Security, Department of 
Commerce, Phone: (202) 482-3343, Fax: (202) 482-3911, E-mail: 
bscott@bis.doc.gov.

SUPPLEMENTARY INFORMATION:

Background

    The Entity List provides notice to the public that certain exports 
and reexports to parties 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. BIS 
first published the Entity List in February 1997 as part of its efforts 
to inform the public of entities that have engaged in activities that 
could result in an increased risk of diversion of exported and 
reexported items to weapons of mass destruction (WMD) programs. Since 
its initial publication, grounds for inclusion on the Entity List have 
expanded to activities sanctioned by the Department of State and 
activities contrary to U.S. national security and/or foreign policy 
interests.

ERC Entity List Decisions

    Pursuant to Supplement No. 5 to part 744 (Procedures for End-User 
Review Committee Entity List Decisions) of the EAR, the ERC, composed 
of representatives of the Departments of Commerce, State, Defense, 
Energy and, where appropriate, the Treasury, makes all decisions to 
make additions to, removals from or changes to the Entity List. The ERC 
is chaired by the Department of Commerce and 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.
    The ERC made a determination to add thirteen persons to the Entity 
List on the basis of 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 thirteen entities added 
to the Entity List consist of three persons in Germany, five persons in 
Hong Kong and five persons in Ireland.
    The ERC reviewed Sec.  744.11(b) (Criteria for revising the Entity 
List) in making the determination to add these persons to the Entity 
List. Under that paragraph, entities for which there is reasonable 
cause to believe, based on specific and articulable 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 may be added to the Entity List 
pursuant to Sec.  744.11.
    Paragraph (b) of Sec.  744.11 includes an illustrative list of 
activities that could be contrary to the national security or foreign 
policy interests of the United States. This illustrative list of 
activities of concern is described under paragraphs (b)(1)-(b)(5). The 
persons being added to the Entity List under this rule have been 
determined by the ERC to be involved in activities that could be 
contrary to the national security or foreign policy interests of the 
United States.
    In addition, the ERC made a determination to remove three entities 
from the Entity List. As outlined in Supplement No. 5 to part 744, 
under the last paragraph of that Supplement, the ERC conducts a 
systematic review of the Entity List. Based upon the results of that 
annual review, the ERC made a determination that one person in Pakistan 
should be removed from the Entity List, because this person is not 
engaged in activities that would warrant including the person on the 
Entity List.
    The ERC also made a determination to remove two other persons, 
located in the United Arab Emirates, as a result of a request for 
removal submitted by these two listed entities. Based upon the review 
of the information provided in the removal request, in accordance with 
Sec.  744.16 and further review that was

[[Page 35798]]

conducted by the ERC's member agencies of these end-users, the ERC 
determined that these two persons should be removed from the Entity 
List. The ERC decision to remove Feroz Jafar and Telectron took into 
account these two listed persons' cooperation with the U.S. Government, 
as well as these listed persons' assurances of future compliance with 
the EAR. In accordance with Sec.  744.16(c), the Deputy Assistant 
Secretary for Export Administration has sent written notification to 
these persons informing them of the ERC's decision to remove them from 
the Entity List.

Additions to the Entity List

    This rule implements the decision of the ERC to add thirteen 
persons to the Entity List on the basis of Sec.  744.11 of the EAR. For 
all of the thirteen persons added to the Entity List, the ERC specified 
a license requirement for all items subject to the EAR and established 
a license application review policy of a general policy of denial. The 
license requirement applies to any transaction in which items are to be 
exported or reexported to such persons or in which such persons act as 
purchaser, intermediate consignee, ultimate consignee, or end-user. In 
addition, no license exceptions are available for shipments to those 
persons being added to the Entity List.
    Specifically, this rule adds the following thirteen persons to the 
Entity List:
Germany
    (1) Christof Schneider, Margaretenweg 10, 42929 
Wermelskirchen, Germany;
    (2) Hans Werner Schneider, Bertha von Suttner Weg 1, 42929 
Wermelskirchen, Germany; and
    (3) Schneider GMBH, Thomas Mann Str. 35-37, 42929 Wermelskirchen, 
Germany; and P.O. Box 1523, Wermelskirchen, 42908 DE; and Thomas Mann 
Str., 35-37, P.O. Box 1523, Wermelskirchen, 42908 DE.
Hong Kong
    (4) Able City Development Limited, Unit C, 9/F Neich Tower, 128 
Gloucester Road, Wanchai, Hong Kong; and Unit 401, Harbour Ctr., Tower 
2, 8 Hok Cheung Street, Hung Hom, Kowloon, Hong Kong;
    (5) Sik Yin Ngai, a.k.a., Spencer Ngai, Unit 401, Harbour Ctr., 
Tower 2, 8 Hok Cheung Street Hung Hom, Kowloon, Hong Kong;
    (6) Siu Ching Ngai, a.k.a., Terry Ngai, Unit C, 9/F Neich Tower, 
128 Gloucester Road, Wanchai, Hong Kong;
    (7) Sysdynamic Limited, Unit 716A, 7/F Enterprise Place (Building 
9), No. 5 Science Park West Avenue, Hong Kong Science Park, Shatin, New 
Territories, Hong Kong; and Unit 401, Harbour Ctr., Tower 2, 8 Hok 
Cheung Street, Hung Hom, Kowloon, Hong Kong; and
    (8) Tam Shue Ngai, Unit C, 9/F Neich Tower, 128 Gloucester Road, 
Wanchai, Hong Kong.
Ireland
    (9) Mac Aviation Group, a.k.a., Mac Aviation Limited, Cloonmull 
House, Drumcliffe, County Sligo, Ireland;
    (10) Mac Aviation Nigeria, Cloonmull House, Drumcliffe, County 
Sligo, Ireland;
    (11) Sean Byrne, Cloonmull House, Drumcliffe, County Sligo, 
Ireland;
    (12) Sean McGuinn, Cloonmull House, Drumcliffe, County Sligo, 
Ireland; and
    (13) Thomas McGuinn a.k.a., Tom McGuinn, Cloonmull House, 
Drumcliffe, County Sligo, Ireland.
    A BIS license is required for the export or reexport of any item 
subject to the EAR to any of the persons listed above, including any 
transaction in which any of the listed persons will act as purchaser, 
intermediate consignee, ultimate consignee, or end-user of the items. 
This listing of these persons also prohibits the use of License 
Exceptions (see part 740 of the EAR) for exports and reexports of items 
subject to the EAR involving such persons.

Removal From the Entity List

    One person being removed from the Entity List with this rule is 
removed on the basis of the results of the annual review of the Entity 
List that was conducted by the ERC in accordance with the procedures 
outlined in Supplement No. 5 to part 744. The entity is located in 
Pakistan:
Pakistan
    (1) Karachi CBW Research Institute, University of Karachi's Husein 
Ebrahim Jamal Research Institute of Chemistry (HEJRIC).
    Two additional persons are being removed under this rule as a 
result of the submission of a formal request for removal based upon the 
procedures outlined in Sec.  744.16 of the EAR. These two entities are 
located in the United Arab Emirates:
United Arab Emirates
    (2) Feroz Jafar, Al Salam St., P.O. Box 2946 Abu Dhabi, U.A.E.; and
    (3) Telectron, Al Salam St., P.O. Box 2946, Abu Dhabi, U.A.E.
    The removal of these three persons from the Entity List eliminates 
the existing license requirements in Supplement No. 4 to part 744 for 
exports and reexports to these persons. However, the removal of these 
persons 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 a person 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 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 or reexport 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.

Correction to the Entity List

    This rule revises the address provided for one person that was 
listed on the Entity List from the United Arab Emirates. Specifically, 
this rule to correct an inadvertent removal of the name of the city 
where the person is located, which occurred in a December 5, 2008 (73 
FR 73999) final rule that revised this entry.
    This rule revises the name and address of this one listed person, 
as follows:
United Arab Emirates
    (1) Advanced Technology General Trading Company, Dubai, U.A.E. (See 
alternate address under Kuwait).

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 July 21, 2009, 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 August 20, 2009. Any such 
items not actually exported or reexported before midnight on August 20, 
2009, require a license in accordance with this rule.
    Although the Export Administration Act expired on August 20, 2001, 
the President, through Executive Order

[[Page 35799]]

13222 of August 17, 2001, 3 CFR, 2001 Comp., p. 783 (2002), as extended 
by the Notice of July 23, 2008, 73 FR 43603 (July 23, 2008), 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 July 23, 2008, 73 FR 43603 (July 
25, 2008); Notice of November 10, 2008, 73 FR 67097 (November 12, 
2008).

0
2. Supplement No. 4 to part 744 is amended:
0
a. By removing under Pakistan, this one Pakistani entity ``Karachi CBW 
Research Institute, University of Karachi's Husein Ebrahim Jamal 
Research Institute of Chemistry (HEJRIC)'';
0
b. By removing under United Arab Emirates, these two U.A.E. entities 
``Feroz Jafar, Al Salam St., P.O. Box 2946, Abu Dhabi, U.A.E.''; and 
``Telectron, Al Salam St., P.O. Box 2946, Abu Dhabi, U.A.E.'';
0
c. By adding under Germany, in alphabetical order, three German 
entities;
0
d. By adding under Hong Kong, in alphabetical order, five Hong Kong 
entities;
0
e. By adding, in alphabetical order, the country of Ireland and five 
Irish entities; and
0
f. By revising under United Arab Emirates, in alphabetical order, one 
U.A.E. entity.
    The additions and revision read as follows:

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

                                                                      * * * * * * *
 GERMANY

                                                                      * * * * * * *
                                    Christof Schneider,         For all items subject to the      Presumption of denial  74 FR [INSERT FR PAGE NUMBER],
                                     Margaretenweg 10, 42929                 EAR).
                                     Wermelskirchen, Germany.

                                                                      * * * * * * *
                                    Hans Werner Schneider,      For all items subject to the      Presumption of denial  74 FR [INSERT FR PAGE NUMBER],
                                     Bertha von Suttner Weg      EAR. (See Sec.   744.11 of the                           July 21, 2009.
                                     1, 42929           EAR).
                                     Wermelskirchen, Germany.

                                                                      * * * * * * *
                                    Schneider GMBH, Thomas      For all items subject to the      Presumption of denial  74 FR [INSERT FR PAGE NUMBER],
                                     Mann Str. 35-37, 42929      EAR. (See Sec.   744.11 of the                           July 21, 2009.
                                     Wermelskirchen, Germany;    EAR).
                                     and P.O. Box 1523,
                                     Wermelskirchen, 42908 DE;
                                     and Thomas Mann Str., 35-
                                     37, P.O. Box 1523,
                                     Wermelskirchen, 42908 DE.
HONG KONG.........................  Able City Development       For all items subject to the      Presumption of denial  74 FR [INSERT FR PAGE NUMBER],
                                     Limited, Unit C, 9/F        EAR. (See Sec.   744.11 of the                           July 21, 2009.
                                     Neich Tower, 128            EAR).
                                     Gloucester Road, Wanchai,
                                     Hong Kong; and Unit 401,
                                     Harbour Ctr., Tower 2, 8
                                     Hok Cheung Street, Hung
                                     Hom, Kowloon, Hong Kong.

[[Page 35800]]

                                                                      * * * * * * *
                                    Sik Yin Ngai, a.k.a.        For all items subject to the      Presumption of denial  74 FR [INSERT FR PAGE NUMBER],
                                     Spencer Ngai, Unit 401,     EAR. (See Sec.   744.11 of the                           July 21, 2009.
                                     Harbour Ctr., Tower 2, 8    EAR).
                                     Hok Cheung Street, Hung
                                     Hom, Kowloon, Hong Kong.
                                    Siu Ching Ngai, a.k.a.      For all items subject to the      Presumption of denial  74 FR [INSERT FR PAGE NUMBER],
                                     Terry Ngai, Unit C, 9/F     EAR. (See Sec.   744.11 of the                           July 21, 2009.
                                     Neich Tower, 128            EAR).
                                     Gloucester Road, Wanchai,
                                     Hong Kong.

                                                                      * * * * * * *
                                    Sysdynamic Limited, Unit    For all items subject to the      Presumption of denial  74 FR [INSERT FR PAGE NUMBER],
                                     716A, 7/F Enterprise        EAR. (See Sec.   744.11 of the                           July 21, 2009.
                                     Place (Building 9), No. 5   EAR).
                                     Science Park West Avenue,
                                     Hong Kong Science Park,
                                     Shatin, New Territories,
                                     Hong Kong; and Unit 401,
                                     Harbour Ctr., Tower 2, 8
                                     Hok Cheung Street, Hung
                                     Hom, Kowloon, Hong Kong.
                                    Tam Shue Ngai, Unit C, 9/F  For all items subject to the      Presumption of denial  74 FR [INSERT FR PAGE NUMBER],
                                     Neich Tower, 128            EAR. (See Sec.   744.11 of the                           July 21, 2009.
                                     Gloucester Road, Wanchai,   EAR).
                                     Hong Kong.

                                                                      * * * * * * *
IRELAND...........................  Mac Aviation Group, a.k.a.  For all items subject to the      Presumption of denial  74 FR [INSERT FR PAGE NUMBER],
                                     Mac Aviation Limited,       EAR. (See Sec.   744.11 of the                           July 21, 2009.
                                     Cloonmull House,            EAR).
                                     Drumcliffe, County Sligo,
                                     Ireland.
                                    Mac Aviation Nigeria,       For all items subject to the      Presumption of denial  74 FR [INSERT FR PAGE NUMBER],
                                     Cloonmull House,            EAR. (See Sec.   744.11 of the                           July 21, 2009.
                                     Drumcliffe, County Sligo,   EAR).
                                     Ireland.
                                    Sean Byrne, Cloonmull       For all items subject to the      Presumption of denial  74 FR [INSERT FR PAGE NUMBER],
                                     House, Drumcliffe, County   EAR. (See Sec.   744.11 of the                           July 21, 2009.
                                     Sligo, Ireland.             EAR).
                                    Sean McGuinn, Cloonmull     For all items subject to the      Presumption of denial  74 FR [INSERT FR PAGE NUMBER],
                                     House, Drumcliffe, County   EAR. (See Sec.   744.11 of the                           July 21, 2009.
                                     Sligo, Ireland.             EAR).
                                    Thomas McGuinn a.k.a. Tom   For all items subject to the      Presumption of denial  74 FR [INSERT FR PAGE NUMBER],
                                     McGuinn, Cloonmull House,   EAR. (See Sec.   744.11 of the                           July 21, 2009.
                                     Drumcliffe, County Sligo,   EAR).
                                     Ireland.

                                                                      * * * * * * *
UNITED ARAB EMIRATES..............  Advanced Technology         For all items subject to the      Presumption of denial  73 FR 54509 9/22/08 73 FR 74001
                                     General Trading Company,    EAR. (See Sec.   744.11 of the                           12/5/08
                                     Dubai, U.A.E. (See          EAR).                                                   74 FR [INSERT FR PAGE NUMBER],
                                     alternate address under                                                              July 21, 2009.
                                     Kuwait).

                                                                      * * * * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------

[[Page 35801]]

    Dated: July 16, 2009.
Matthew S. Borman,
Acting Assistant Secretary for Export Administration.
 [FR Doc. E9-17295 Filed 7-20-09; 8:45 am]

BILLING CODE 3510-33-P