Document ID: BIS-2011-0014-0001
Agency: bis
Document Type: Rule
Title: Removal and Modifications for Persons Listed Under Russia on the Entity List
Posted Date: 2011-05-24T04:00Z

[Federal Register Volume 76, Number 100 (Tuesday, May 24, 2011)]
[Rules and Regulations]
[Pages 29998-30001]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-12803]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 744

[Docket No. 110502271-1278-01]
RIN 0694-AF24

Removal and Modifications for Persons Listed Under Russia on the 
Entity List

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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SUMMARY: This final rule amends the Export Administration Regulations 
(EAR) by removing one and revising two Russian entries on the Entity 
List (Supplement No. 4 to Part 744). This final rule removes the 
Federal Atomic Power of Russia (Rusatom) (now known as the Russian 
State Corporation of Atomic Energy (Rosatom)) entry from the Entity 
List and adds language clarifying that both the All-Russian Scientific 
Research Institute of Technical Physics (VNIITF) and the All-Russian 
Scientific Research Institute of Experimental Physics (VNIIEF), which 
are Rosatom components, remain on the Entity List. In addition, this 
rule adds additional aliases and revises some of the existing aliases 
for the two Russian entries that are being retained on the Entity List. 
These changes will better inform exporters, reexporters, and 
transferors of the scope of these Entity List-based license 
requirements.
    The Entity List provides notice to the public that certain exports, 
reexports, and transfers (in-country) 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 May 24, 2011.

FOR FURTHER INFORMATION CONTACT: Karen Nies-Vogel, Chair, End-User 
Review Committee, Office of the Assistant Secretary, Export 
Administration, Bureau of Industry and Security, Department of 
Commerce, Phone: (202) 482-5991, Fax: (202) 482-3911, E-mail: 
ERC@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 the 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, when 
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. The 
Departments represented on the ERC approved these changes to the Entity 
List.

Entity List Decisions

    In recognition of the bilateral partnership between the United 
States and Russia, a policy decision was made by the Departments 
represented on the ERC to clarify the Russian entries on the Entity 
List by removing one and revising two Russian entities listed on the 
Entity List. The decision implemented by this final rule includes 
removing the Federal Atomic Power of Russia (Rusatom) (which is now 
known as the Russian State Corporation of Atomic Energy (Rosatom)) as 
an individual entry on the Entity List and adding language to clarify 
that two specified Russian entries (i.e., the All-Russian Scientific 
Research Institute of Technical Physics (VNIITF) and the All-Russian 
Scientific Research Institute of Experimental Physics (VNIIEF)) which 
are Rosatom components, are both remaining on the Entity List. These 
revisions further clarify that VNIITF and VNIIEF are the only Rosatom 
components remaining on the Entity List. This language is being added 
to clarify that neither Rosatom at locations outside of Snezhinsk and 
Sarov nor any of its components or subsidiaries located outside of 
Snezhinsk and Sarov are subject to the Entity List's supplemental 
licensing requirements and policies.
    In addition, this rule adds other aliases and revises some of the 
existing aliases for the two Russian entries that are being retained on 
the Entity List. These changes will better inform exporters, 
reexporters, and transferors of the scope of these Entity List-based 
license requirements.

A. Removal From the Entity List

    This rule implements a policy decision made by the Departments 
represented on the ERC to remove one Russian entity from the Entity 
List. Specifically, this rule removes the Federal Atomic Power of 
Russia (Rusatom), which is now known as the Russian State Corporation 
of Atomic Energy (Rosatom) from the Entity List. However, VNIITF and 
VNIIEF will remain on the Entity List. Moreover, this rule adds and 
revises particular aliases of VNIITF and VNIIEF to the Entity List to 
better assist exporters, reexporters and transferors in identifying 
these two entities on the Entity List.
    This rule removes the following person located in Russia from the 
Entity List:

[[Page 29999]]

Russia
    (1) Federal Atomic Power of Russia (Rusatom) (any entities, 
institutes, or centers associated with), a.k.a. the following three 
aliases:

--Federal Atomic Agency (FAAE);
--MINATOM; and
--Ministry of Atomic Power and Industry (MAPI).
Located in either Snezhinsk or Kremlev (Sarov).

    The removal of this entity from the Entity List eliminates the 
existing license requirements in Supplement No. 4 to part 744 for 
exports, reexports and transfers (in-country) to this entity, although 
those licensing requirements remain in place for VNIITF and VNIIEF. 
Moreover, the removal of this entity 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 
section 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 these 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.

B. Modifications to the Entity List

    As noted above, this rule is removing the Russian entity Rusatom, 
which is now known as Rosatom, from the Entity List. However, and also 
as noted above, because Rosatom has components (VNIITF and VNIIEF) 
located in Snezhinsk and Sarov that will remain on the Entity List, 
this final rule specifies that VNIITF and VNIIEF will remain on the 
Entity List.
    In addition, the changes in the final rule include adding 
additional aliases and revising some of the existing aliases for VNIITF 
and VNIIEF to better assist exporters, reexporters and transferors in 
identifying these two entities on the Entity List. Specifically, this 
rule revises the following two persons on the Entity List:

    Note:  The asterisks below indicate where revisions are being 
made to these two Russian entries on the Entity List.

Russia
    (1) *All-Russian Scientific Research Institute of Technical Physics 
(VNIITF), a.k.a., the following eight aliases:

*--Vserossiyskiy Nauchno-Issledovatelskiy Institut Tekhnicheskoy 
Fiziki;
*--Russian Federal Nuclear Center-VNIITF (RFNC-VNIITF);
*--Kasli Nuclear Weapons Development Center;
*--Institute of Technical Physics;
*--Zababakhin Institute;
*--ARITP (All Russian Institute for Technical Physics);
--Federal State Unitary Enterprise Russian Federal Nuclear Center--
Academician E.I. Zababkhin All-Russian Scientific Research Institute of 
Technical Physics (FGUPRFYaTs-VNIITF)
--Chelyabinsk--70,
(Address: P.O. Box 245, 456770, Snezhinsk, Chelyabinsk Region Russia); 
and
*Any nuclear-related entities, institutes or centers located in 
Snezhinsk.

    (2) *All-Russian Scientific Research Institute of Experimental 
Physics (VNIIEF), a.k.a., the following nine aliases:
*--Vserossiyskiy Nauchno-Issledovatelskiy Institut Eksperimentalnoy 
Fiziki;
*--Russian Federal Nuclear Center-VNIIEF (RFNC-VNIIEF);
*--Institute of Experimental Physics;
*--ARIEP (All Russian Institute for Experimental Physics);
--Khariton Institute;
--Sarov Nuclear Weapons Plant;
--Avangard Electromechanical Plant;
--Federal State Unitary Enterprise Russian Federal Nuclear Center--All 
Russian Scientific Research Institute of Experimental Physics 
(FGUPRFNCs VNIIEF)
--Arzamas--16,
(Address: 37 Mira Ave. Sarov, Nizhny Novgorod Region, 607188 Russia); 
and
* Any nuclear-related entities, institutes or centers located in Sarov 
(Kremlev).

    A BIS license is required for the export, reexport or transfer (in-
country) of any item subject to the EAR to the persons described above, 
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 these entities 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.
    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 12, 
2010, 75 FR 50681 (August 16, 2010), has continued the Export 
Administration Regulations in effect under the International Emergency 
Economic Powers Act.

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 been designated a ``significant regulatory 
action'' although not economically significant, under section 3(f) of 
Executive Order 12866. Accordingly, the rule has been reviewed by the 
Office of Management and Budget.
    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 
not expected to increase as a result of this rule. You may 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.
    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

[[Page 30000]]

rulemaking, the opportunity for public comment 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)). The U.S. Government's original basis for adding the 
entities affected by this rule to the Entity List was the entities' 
involvement in activities contrary to U.S. national security or foreign 
policy interests. BIS implements this rule to further protect U.S. 
national security and foreign policy interests by preventing items from 
being exported, reexported or transferred (in-country) to these persons 
listed on the Entity List by making clarifications to the existing 
entries to inform exporters, reexporters and persons making transfers 
(in-country) of the intended scope of the license requirements for 
these listed persons. This action does this by clarifying the listings 
of VNIITF and VNIIEF, clarifying the names of existing aliases, and 
adding aliases for the listed persons. If this rule were delayed to 
allow for notice and comment and a delay in effective date, there is a 
chance that certain exporters, reexporters and persons making transfers 
(in-country) to these listed persons may inadvertently export, reexport 
or transfer (in-country) to a listed person on the Entity List because 
the exporter, reexporter or person making the transfer (in-country) did 
not realize the listed person was subject to the Entity List-based 
license requirement because of perceived ambiguity regarding the listed 
person, such as a perceived ambiguity resulting from the use of an 
alias by a listed person. There is also a chance an exporter, 
reexporter or person making a transfer (in-country) may turn away a 
potential export, reexport, or transfer (in-country) because the 
customer incorrectly appeared to be within the scope of a listed person 
on the Entity List, thereby harming U.S. economic interests. The 
clarification of language provided in this rule may make clear that the 
person was not subject to an Entity List-based license requirement. For 
these reasons there is a public interest that these changes be 
implemented as a final action. 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.

    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 12, 2010, 75 FR 50681 
(August 16, 2010); Notice of November 4, 2010, 75 FR 68673 (November 
8, 2010); Notice of January 13, 2011, 76 FR 3009 (January 18, 2011).

0
2. Supplement No. 4 to part 744 is amended:
0
a. By removing under Russia, the Russian entity, Federal Atomic Power 
of Russia (Rusatom); and
0
b. By revising, under Russia, the following two Russian entities: All-
Russian Scientific Research Institute of Technical Physics (VNIITF) and 
All-Russian Scientific Research Institute of Experimental Physics 
(VNIIEF).
    The revisions read as follows:

Supplement No. 4 to Part 744--Entity List

----------------------------------------------------------------------------------------------------------------
                                                                                              Federal Register
      Country                Entity           License  requirement  License review policy         citation
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
RUSSIA.............  All-Russian Scientific  For all items subject  Case-by-case basis...  62 FR 35334, 6/30/97
                      Research Institute of   to the EAR.                                   66 FR 24267, 5/14/01
                      Technical Physics                                                     75 FR 78883, 12/17/
                      (VNIITF), a.k.a., the                                                 10.
                      following eight
                      aliases:
                       --Vserossiyskiy                                                     ***76 FR [INSERT FR
                     Nauchno-                                                               PAGE NUMBER] 5/24/
                     Issledovatelskiy                                                       11.
                     Institut Tekhnicheskoy
                     Fiziki;
                       --Russian Federal
                     Nuclear Center-VNIITF
                     (RFNC-VNIITF);
                       --Kasli Nuclear
                     Weapons Development
                     Center;
                       --Institute of
                     Technical Physics;
                       --Zababakhin
                     Institute;
                       --ARITP (All Russian
                     Institute for
                     Technical Physics);
                       --Federal State
                     Unitary Enterprise
                     Russian Federal
                     Nuclear Center--
                     Academician E.I.
                     Zababkhin All-Russian
                     Scientific Research
                     Institute of Technical
                     Physics (FGUPRFYaTs-
                     VNIITF)
                       --Chelyabinsk-70,
                     (Address: P.O. Box
                     245, 456770,
                     Snezhinsk, Chelyabinsk
                     Region Russia); and
                     any nuclear-related
                     entities, institutes,
                     or centers located in
                     Snezhinsk.
                     All-Russian Scientific  For all items subject  Case-by-case basis...  62 FR 35334, 6/30/97
                      Research Institute of   to the EAR.                                   66 FR 24267, 5/14/01
                      Experimental Physics                                                  75 FR 78883, 12/17/
                      (VNIIEF), a.k.a., the                                                 10.
                      following nine
                      aliases:

[[Page 30001]]

 
                       --Vserossiyskiy                                                     ***76 FR [INSERT FR
                     Nauchno-                                                               PAGE NUMBER], 5/24/
                     Issledovatelskiy                                                       11.
                     Institut
                     Eksperimentalnoy
                     Fiziki;
                       --Russian Federal
                     Nuclear Center-VNIIEF
                     (RFNC-VNIIEF);
                       --Institute of
                     Experimental Physics;
                       --ARIEP (All Russian
                     Institute for
                     Experimental Physics);
                       --Khariton
                     Institute;
                       --Sarov Nuclear
                     Weapons Plant;
                       --Avangard
                     Electromechanical
                     Plant;
                       --Federal State
                     Unitary Enterprise
                     Russian Federal
                     Nuclear Center--All
                     Russian Scientific
                     Research Institute of
                     Experimental Physics
                     (FGUPRFNCs VNIIEF)
                       --Arzamas-16,
                     (Address: 37 Mira Ave.
                     Sarov, Nizhny Novgorod
                     Region, 607188
                     Russia); and any
                     nuclear-related
                     entities, institutes
                     or centers located in
                     Sarov (Kremlev)
 
                                                  * * * * * * *
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    Dated: May 19, 2011.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2011-12803 Filed 5-23-11; 8:45 am]
BILLING CODE 3510-33-P