Document ID: BIS-2023-0011-0001
Agency: bis
Document Type: Rule
Title: Additions of Entities to the Entity List
Posted Date: 2023-02-27T05:00Z

[Federal Register Volume 88, Number 38 (Monday, February 27, 2023)]
[Rules and Regulations]
[Pages 12170-12175]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-03929]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 744

[Docket No. 230221-0050]
RIN 0694-AJ13

Additions of Entities to the Entity List

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

ACTION: Final rule.

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SUMMARY: The Department of Commerce is amending the Export 
Administration Regulations (EAR) by adding 10 entities under 13 entries 
to the Entity List. These entities have been determined by the U.S. 
Government to be acting contrary to the national security or foreign 
policy interests of the United States. These entities are listed on the 
Entity List under the destinations of Canada (2), China (5), France 
(1), Luxembourg (1), Netherlands (1), and Russia (3).

DATES: This rule is effective February 24, 2023.

FOR FURTHER INFORMATION CONTACT: Chair, End-User Review Committee, 
Office of the Assistant Secretary for Export Administration, Bureau of 
Industry and Security, Department of Commerce, Phone: (202) 482-5991, 
Email: [email protected].

SUPPLEMENTARY INFORMATION: 

Background

    The Entity List (supplement no. 4 to part 744 of the EAR (15 CFR 
parts 730-774)) identifies entities for which there is reasonable cause 
to believe, based on specific and articulable facts, that the entities 
have been involved, are involved, or pose a significant risk of being 
or becoming involved in activities contrary to the national security or 
foreign policy interests of the United States, pursuant to Sec.  
744.11(b). The EAR impose additional license requirements on, and limit 
the availability of, most license exceptions for exports, reexports, 
and transfers (in-country) when a listed entity is a party to the 
transaction. The license review policy for each listed entity is 
identified in the ``License Review Policy'' column on the Entity List, 
and the impact on the availability of license exceptions is described 
in the relevant Federal Register document that added the entity to the 
Entity List. The Bureau of Industry and Security (BIS) places entities 
on the Entity List pursuant to part 744 (Control Policy: End-User and 
End-Use Based) and part 746 (Embargoes and Other Special Controls) of 
the EAR.
    The End-User Review Committee (ERC), composed of representatives of 
the Departments of Commerce (Chair), State, Defense, Energy and, where 
appropriate, the Treasury, makes all decisions regarding additions to, 
removals from, or other modifications to the Entity List. The ERC makes 
all decisions to add an entry to the Entity List by majority vote and 
makes all decisions to remove or modify an entry by unanimous vote.

Additions to the Entity List

    The ERC determined to add AOOK Technology Ltd., under the 
destination of China; CPUNTO Inc., under the destination of Canada; 
Dexias Industrial Products and Trade Limited Company, under the 
destination of Russia; Electronic Network Inc., under the destination 
of Canada; Innovation and Technologies LLC, under the destination of 
Russia; and Promtekhkomplekt JSC, under the destination of Russia, to 
the Entity List. These additions are based on information that these 
companies significantly contribute to Russia's military and/or defense 
industrial base and are involved in activities contrary to U.S. 
national security and foreign policy interests under Sec. Sec.  744.11 
and 744.21 of the EAR. These entities will receive a footnote 3 
designation because the ERC has determined that they are Russian or 
Belarusian `military end users' in accordance with Sec.  744.21. A 
footnote 3 designation subjects these entities to the Russia/Belarus-
Military End User Foreign Direct Product (FDP) rule, detailed under 
Sec.  734.9(g). These entities are added with a license requirement for 
all items subject to the EAR. License applications will be reviewed 
under a policy of denial for all items subject to the EAR, other than 
applications for food and medicine designated as EAR99, which will be 
reviewed on a case-by-case basis.
    The ERC determined to add Beijing Ti-Tech Science and Technology 
Development Co., under the destination of China; Beijing Yunze 
Technology Co., Ltd., under the destination of China; China HEAD 
Aerospace Technology Co., under the destinations of China, France, and 
the Netherlands; and Spacety Co.,

[[Page 12171]]

Ltd., under the destinations of China and Luxembourg, to the Entity 
List. These additions are based on information that these companies 
significantly contribute to Russia's military and/or defense industrial 
base and are involved in activities contrary to U.S. national security 
and foreign policy interests under Sec. Sec.  744.11 and 744.21 of the 
EAR. These entities will receive a footnote 3 designation because the 
ERC has determined that they are Russian or Belarusian `military end 
users' in accordance with Sec.  744.21. A footnote 3 designation 
subjects these entities to the Russia/Belarus-Military End User Foreign 
Direct Product (FDP) rule, detailed under Sec.  734.9(g). These 
entities are added with a license requirement for all items subject to 
the EAR. License applications for these entities will be reviewed under 
a policy of denial for all items subject to the EAR, other than 
applications for food and medicine designated as EAR99, which will be 
reviewed on a case-by-case basis.
    For the reasons described above, this final rule adds the following 
10 entities under 13 entries to the Entity List and includes, where 
appropriate, aliases:

Canada

     CPUNTO Inc., and
     Electronic Network Inc.

China

     AOOK Technology Ltd.,
     Beijing Ti-Tech Science and Technology Development Co.,
     Beijing Yunze Technology Co., Ltd.,
     China HEAD Aerospace Technology Co., and
     Spacety Co. Ltd.

France

     China HEAD Aerospace Technology Co.

Luxembourg

     Spacety Co., Ltd.

Netherlands

     China HEAD Aerospace Technology Co.

Russia

     Dexias Industrial Products and Trade Limited Company,
     Innovation and Technologies LLC, and
     Promtekhkomplekt JSC.

Allied Governments Note

    BIS notes that this rule is meant to serve as a response to Russian 
aggression against Ukraine. This rule does include entities in several 
allied and partnered countries, but is not an action against the 
countries in which the entities are located or registered or the 
governments of those countries. This rule only serves as an action 
against those entities listed, which have assisted the Russian 
military, contrary to U.S. foreign and national security policy 
interests.

Savings Clause

    For the changes being made in this final rule, shipments of items 
removed from eligibility for a License Exception or export, reexport, 
or transfer (in-country) without a license (NLR) as a result of this 
regulatory action that were en route aboard a carrier to a port of 
export, reexport, or transfer (in-country), on February 24th, pursuant 
to actual orders for export, reexport, or transfer (in-country) to or 
within a foreign destination, may proceed to that destination under the 
previous eligibility for a License Exception or export, reexport, or 
transfer (in-country) without a license (NLR).

Export Control Reform Act of 2018

    On August 13, 2018, the President signed into law the John S. 
McCain National Defense Authorization Act for Fiscal Year 2019, which 
included the Export Control Reform Act of 2018 (ECRA) (50 U.S.C. 4801-
4852). ECRA provides the legal basis for BIS's principal authorities 
and serves as the authority under which BIS issues this rule.

Rulemaking Requirements

    1. This rule has been determined to be not significant for purposes 
of Executive Order 12866.
    2. Notwithstanding any other provision of law, no person is 
required to respond to or be subject to a penalty for failure to comply 
with a collection of information, subject to the requirements of the 
Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (PRA), unless 
that collection of information displays a currently valid Office of 
Management and Budget (OMB) Control Number. This regulation involves 
collections previously approved by OMB under control number 0694-0088, 
Simplified Network Application Processing System, which includes, among 
other things, license applications and commodity classifications, and 
carries a burden estimate of 29.4 minutes for a manual or electronic 
submission for a total burden estimate of 33,133 hours. Total burden 
hours associated with the PRA and OMB control number 0694-0088 are not 
expected to increase 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. Pursuant to section 1762 of the Export Control Reform Act of 
2018, this action is exempt from the Administrative Procedure Act (5 
U.S.C. 553) requirements for notice of proposed rulemaking, opportunity 
for public participation, and delay in effective date.
    5. Because a notice of proposed rulemaking and an opportunity for 
public comment are not required to be given for this rule by 5 U.S.C. 
553, or by any other law, the analytical requirements of the Regulatory 
Flexibility Act, 5 U.S.C. 601, et seq., are not applicable. 
Accordingly, no regulatory flexibility analysis is required and none 
has been prepared.

List of Subjects in 15 CFR Part 744

    Exports, Reporting and recordkeeping requirements, Terrorism.

    Accordingly, part 744 of the Export Administration Regulations (15 
CFR parts 730-774) is amended as follows:

PART 744--CONTROL POLICY: END-USER AND END-USE BASED

0
1. The authority citation for 15 CFR part 744 continues to read as 
follows:

    Authority: 50 U.S.C. 4801-4852; 50 U.S.C. 4601 et seq.; 50 
U.S.C. 1701 et seq.; 22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a; 22 
U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O. 12058, 43 FR 20947, 3 CFR, 
1978 Comp., p. 179; E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p. 
608; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 13026, 
61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13099, 63 FR 45167, 3 
CFR, 1998 Comp., p. 208; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., 
p. 783; E.O. 13224, 66 FR 49079, 3 CFR, 2001 Comp., p. 786; Notice 
of September 19, 2022, 87 FR 57569 (September 21, 2022); Notice of 
November 8, 2022, 87 FR 68015 (November 10, 2022).

0
2. Supplement No. 4 to part 744 is amended:
0
a. Under CANADA, by adding in alphabetical order, entries for ``CPUNTO 
Inc.'' and ``Electronic Network Inc.'';
0
b. Under CHINA, PEOPLE'S REPUBLIC OF, by adding, in alphabetical order, 
entries for ``AOOK Technology Ltd.''; ``Beijing Ti-Tech Science and 
Technology Development Co.''; ``Beijing Yunze Technology Co., Ltd.''; 
``China HEAD Aerospace Technology Co.''; and ``Spacety Co., Ltd.'';
0
c. Under FRANCE, by adding in alphabetical order, an entry for ``China 
HEAD Aerospace Technology Co.'';
0
d. Under LUXEMBOURG, by adding in alphabetical order, an entry for 
``Spacety Co., Ltd.'';

[[Page 12172]]

0
e. Under NETHERLANDS, by adding in alphabetical order, an entry for 
``China HEAD Aerospace Technology Co.''; and
0
f. Under RUSSIA, by adding, in alphabetical order, entries for ``Dexias 
Industrial Products and Trade Limited Company''; ``Innovation and 
Technologies LLC''; and ``Promtekhkomplekt JSC''.

Supplement No. 4 to Part 744--Entity List

* * * * *

 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
Country                  Entity                        License...........  License...........  Federal Register
                                                       requirement.......  review policy.....   citation
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
CANADA.................                                         * * * * * *
                         CPUNTO Inc., a.k.a., the      For all items       Policy of denial    88 FR [INSERT FR
                          following one alias:          subject to the      for all items       PAGE NUMBER AND
                         --CPUNTO.                      EAR. (See Sec.      subject to the      2/27/2023].
                         5929 Route Transcanadienne     Sec.                EAR apart from
                          Ste 130 St. Laurent, Quebec   734.9(g),\3\        food and medicine
                          H4T 1Z6 Canada.               744.21(b), and      designated as
                                                        746.8(a)(3) of      EAR99, which will
                                                        the EAR).           be reviewed on a
                                                                            case-by-case
                                                                            basis. See Sec.
                                                                            Sec.   746.8(b)
                                                                            and 744.21(e).
                                                                * * * * * *
                         Electronic Network Inc.,      For all items       Policy of denial    88 FR [INSERT FR
                          a.k.a., the following six     subject to the      for all items       PAGE NUMBER AND
                          aliases:                      EAR. (See Sec.      subject to the      2/27/2023].
                         --Electronic Network;          Sec.                EAR apart from
                         --Electronic Network           734.9(g),\3\        food and medicine
                          Holdings;                     744.21(b), and      designated as
                         --Electronic Network           746.8(a)(3) of      EAR99, which will
                          Holdings Inc.;                the EAR).           be reviewed on a
                         --Electronic Network                               case-by-case
                          Incorporated;                                     basis. See Sec.
                         --Electronic Network                               Sec.   746.8(b)
                          Products Inc.; and                                and 744.21(e).
                         --Electronic's Network &
                          Technology Corp.
                         145 Montee De Liesse Ste 10
                          St. Laurent, Quebec H4T 1T9
                          Canada.
                                                                * * * * * *
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
CHINA, PEOPLE'S                                                 * * * * * *
 REPUBLIC OF.
                         AOOK Technology Ltd.,         For all items       Policy of denial    88 FR [INSERT FR
                          a.k.a., the following two     subject to the      for all items       PAGE NUMBER AND
                          aliases:                      EAR. (See Sec.      subject to the      2/27/2023].
                         --AOOK; and                    Sec.                EAR apart from
                         --AOOK Electronics.            734.9(g),\3\        food and medicine
                         Rm 803 Chevalier Building 45-  744.21(b), and      designated as
                          51 Chatham Rd S Tsim Sha      746.8(a)(3) of      EAR99, which will
                          Tsui Hong Kong, China.        the EAR).           be reviewed on a
                                                                            case-by-case
                                                                            basis. See Sec.
                                                                            Sec.   746.8(b)
                                                                            and 744.21(e).
                                                                * * * * * *
                         Beijing Ti-Tech Science and   For all items       Policy of denial    88 FR [INSERT FR
                          Technology Development Co.,   subject to the      for all items       PAGE NUMBER AND
                          a.k.a., the following two     EAR. (See Sec.      subject to the      2/27/2023].
                          aliases:                      Sec.                EAR apart from
                         --Beijing Ti-Tech; and         734.9(g),\3\        food and medicine
                         --China Ti-Tech Development    744.21(b), and      designated as
                          Co. Ltd.                      746.8(a)(3) of      EAR99, which will
                         5F, Building 5 Science and     the EAR).           be reviewed on a
                          Technology Park, A-2 North                        case-by-case
                          Xisanhuan Road, Beijing                           basis. See Sec.
                          100081 China.                                     Sec.   746.8(b)
                                                                            and 744.21(e).
                                                                * * * * * *

[[Page 12173]]

 
                         Beijing Yunze Technology      For all items       Policy of denial    88 FR [INSERT FR
                          Co., Ltd., a.k.a., the        subject to the      for all items       PAGE NUMBER AND
                          following three aliases:      EAR. (See Sec.      subject to the      2/27/2023].
                         --Beijing Yunze;               Sec.                EAR apart from
                         --Beijing Yunze Technology     734.9(g),\3\        food and medicine
                          Company; and                  744.21(b), and      designated as
                         --Yunze Beijing.               746.8(a)(3) of      EAR99, which will
                         West of Floor 1, Building 7,   the EAR).           be reviewed on a
                          Jiajia Garden Courtyard 15,                       case-by-case
                          Fengtai Beijing 100000                            basis. See Sec.
                          China; and 201, Floor 2,                          Sec.   746.8(b)
                          36#, Yinhe Garden, Miyun                          and 744.21(e).
                          District Beijing 100000
                          China; and 402, Floor 4,
                          No. 85, Huilongguan W.
                          Street, Changping District
                          Beijing 102200 China.
                                                                * * * * * *
                         China HEAD Aerospace          For all items       Policy of denial    88 FR [INSERT FR
                          Technology Co., a.k.a., the   subject to the      for all items       PAGE NUMBER AND
                          following seven aliases:      EAR. (See Sec.      subject to the      2/27/2023].
                         --China HEAD;                  Sec.                EAR apart from
                         --China HEAD Technology Co;    734.9(g),\3\        food and medicine
                         --HEAD Aerospace;              744.21(b), and      designated as
                         --HEAD Aerospace Group;        746.8(a)(3) of      EAR99, which will
                         --HEAD Aerospace               the EAR).           be reviewed on a
                          Netherlands;                                      case-by-case
                         --HEAD France; and                                 basis. See Sec.
                         --HEAD Technology France.                          Sec.   746.8(b)
                                                                            and 744.21(e).
                         5F, Bldg 5, Science and
                          Technology Park, A-2 North
                          Xisanhuan Road, Haidian
                          District, Beijing 100081,
                          P.R. China; and Room 01,
                          floor 13, building 5, no.
                          A2 courtyard, west 3\rd\
                          ring r. Beijing, 10004-8,
                          China; and B-11a-02 Keshi
                          Plaza 28 Shangdi Xinxi Rd
                          Beijing 100058 China. (See
                          alternate address under
                          France and Netherlands).
                         Spacety Co., Ltd., a.k.a.,    For all items       Policy of denial    88 FR [INSERT FR
                          the following three           subject to the      for all items       PAGE NUMBER AND
                          aliases:                      EAR. (See Sec.      subject to the      2/27/2023].
                         --Changsha Tianyi Space        Sec.                EAR apart from
                          Science and Technology        734.9(g),\3\        food and medicine
                          Research Institute;           744.21(b), and      designated as
                         --Spacety; and                 746.8(a)(3) of      EAR99, which will
                         --Spacety Luxembourg S.A.      the EAR).           be reviewed on a
                         9 Dengzhuang South Rd                              case-by-case
                          Beijing, Beijing China; and                       basis. See Sec.
                          Room 445, 9\th\ Floor,                            Sec.   746.8(b)
                          Block B, No. 18                                   and 744.21(e).
                          Zhongguancun Street,
                          Haidian District, Beijing
                          China. (See alternate
                          address under Luxembourg).
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
FRANCE.................                                         * * * * * *
                         China HEAD Aerospace          For all items       Policy of denial    88 FR [INSERT FR
                          Technology Co., a.k.a., the   subject to the      for all items       PAGE NUMBER AND
                          following seven aliases:      EAR. (See Sec.      subject to the      2/27/2023].
                         --China HEAD;                  Sec.                EAR apart from
                         --China HEAD Technology Co;    734.9(g),\3\        food and medicine
                         --HEAD Aerospace;              744.21(b), and      designated as
                         --HEAD Aerospace Group;        746.8(a)(3) of      EAR99, which will
                         --HEAD Aerospace               the EAR).           be reviewed on a
                          Netherlands;                                      case-by-case
                         --HEAD France; and                                 basis. See Sec.
                         --HEAD Technology France.                          Sec.   746.8(b)
                                                                            and 744.21(e).
                         71 Boulevard national, 92250
                          La Garenne-Colombes Paris,
                          France. (See alternate
                          address under China and
                          Netherlands).
                                                                * * * * * *
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
LUXEMBOURG.............                                         * * * * * *

[[Page 12174]]

 
                         Spacety Co., Ltd., a.k.a.,    For all items       Policy of denial    88 FR [INSERT FR
                          the following three           subject to the      for all items       PAGE NUMBER AND
                          aliases:                      EAR. (See Sec.      subject to the      2/27/2023].
                         --Changsha Tianyi Space        Sec.                EAR apart from
                          Science and Technology        734.9(g),\3\        food and medicine
                          Research Institute;           744.21(b), and      designated as
                         --Spacety; and                 746.8(a)(3) of      EAR99, which will
                         --Spacety Luxembourg S.A.      the EAR).           be reviewed on a
                         9, Avenue des Hauts-                               case-by-case
                          Fourneaux, L-4362 Esch-Sur-                       basis. See Sec.
                          Alzette, Luxembourg. (See                         Sec.   746.8(b)
                          alternate address under                           and 744.21(e).
                          China).
                                                                * * * * * *
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
NETHERLANDS............                                         * * * * * *
                         China HEAD Aerospace          For all items       Policy of denial    88 FR [INSERT FR
                          Technology Co., a.k.a., the   subject to the      for all items       PAGE NUMBER AND
                          following seven aliases:      EAR. (See Sec.      subject to the      2/27/2023].
                         --China HEAD;                  Sec.                EAR apart from
                         --China HEAD Technology Co;    734.9(g),\3\        food and medicine
                         --HEAD Aerospace;              744.21(b), and      designated as
                         --HEAD Aerospace Group;        746.8(a)(3) of      EAR99, which will
                         --HEAD Aerospace               the EAR).           be reviewed on a
                          Netherlands;                                      case-by-case
                         --HEAD France; and                                 basis. See Sec.
                         --HEAD Technology France.                          Sec.   746.8(b)
                         Kapteynstraat 1 2201 BB                            and 744.21(e).
                          Noordwijk ZH, Netherlands.
                          (See alternate address
                          under China and France).
                                                                * * * * * *
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
RUSSIA.................
                         Dexias Industrial Products    For all items       Policy of denial    88 FR [INSERT FR
                          and Trade Limited Company,    subject to the      for all items       PAGE NUMBER AND
                          a.k.a., the following five    EAR. (See Sec.      subject to the      2/27/2023].
                          aliases:                      Sec.                EAR apart from
                         --Dexias;                      734.9(g),\3\        food and medicine
                         --Dexias Endil strivel;        744.21(b), and      designated as
                         --Dexias IPTLC;                746.8(a)(3) of      EAR99, which will
                         --Mainbox LLC; and             the EAR).           be reviewed on a
                         --Orunler ve Ticaret Limited                       case-by-case
                          Sirketi.                                          basis. See Sec.
                         Apartment 261, Building 3,                         Sec.   746.8(b)
                          Ryabinovaya Street, Moscow,                       and 744.21(e).
                          Russia.
                                                                * * * * * *
                         Innovation and Technologies   For all items       Policy of denial    88 FR [INSERT FR
                          LLC, a.k.a., the following    subject to the      for all items       PAGE NUMBER AND
                          two aliases:                  EAR. (See Sec.      subject to the      2/27/2023].
                         --Intekh; and                  Sec.                EAR apart from
                         --INTEKH OOO.                  734.9(g),\3\        food and medicine
                         D. 83 K. 3 OFIS 516, Ul.       744.21(b), and      designated as
                          Savushkina, St. Petersburg    746.8(a)(3) of      EAR99, which will
                          197374 Russia; and Mira       the EAR).           be reviewed on a
                          prospect, 2-7 601901                              case-by-case
                          Kovrov, Russia.                                   basis. See Sec.
                                                                            Sec.   746.8(b)
                                                                            and 744.21(e).
                                                                * * * * * *
                         Promtekhkomplekt JSC,         For all items       Policy of denial    88 FR [INSERT FR
                          a.k.a., the following four    subject to the      for all items       PAGE NUMBER AND
                          aliases:                      EAR. (See Sec.      subject to the      2/27/2023].
                         --AO TipoMTeXKOMirneKT;        Sec.                EAR apart from
                         --Promtech Komplekt;           734.9(g),\3\        food and medicine
                         --Promtekhkomplekt; and        746.8(a)(3), and    designated as
                         --Promtekhkomplekt Joint       744.21(b) of the    EAR99, which will
                          Stock Company.                EAR).               be reviewed on a
                         MKAD Greenwood Business Park                       case-by-case
                          building 9 floor 3, pos.                          basis. See Sec.
                          Putilko o, 69 km., Moscow                         Sec.   746.8(b)
                          region, 143441, Russia; and                       and 744.21(e).
                          6/1 Griboyedov Street,
                          OF.23, Tyumen, Tyumen
                          Oblast, Russia.
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------

[[Page 12175]]

* * * * *

Thea D. Rozman Kendler,
Assistant Secretary for Export Administration.
[FR Doc. 2023-03929 Filed 2-24-23; 8:45 am]
BILLING CODE 3510-JT-P