Document ID: BIS-2023-0003-0001
Agency: bis
Document Type: Rule
Title: Additions to the Entity List
Posted Date: 2023-02-01T05:00Z

[Federal Register Volume 88, Number 21 (Wednesday, February 1, 2023)]
[Rules and Regulations]
[Pages 6621-6624]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-02130]

[[Page 6621]]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 744

[Docket No. 230126-0028]
RIN 0694-AJ08

Additions to the Entity List

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

ACTION: Final rule.

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SUMMARY: In this rule, the Bureau of Industry and Security (BIS) amends 
the Export Administration Regulations (EAR) by adding seven entities to 
the Entity List. These seven entities, listed under the destination of 
Iran, have been determined by the U.S. Government to be acting contrary 
to the national security or foreign policy interests of the United 
States for contributing to Russia's military and defense industrial 
base. They are being added to the Entity List with application of the 
Russia/Belarus-Military End User Foreign Direct Product rule.

DATES: This rule is effective on January 31, 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 parts 744 (Control Policy: End-User and 
End-Use Based) and 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.

Entity List Decisions

A. Additions to the Entity List

    The ERC determined to add the following seven entities to the 
Entity List under the destination of Iran based on Sec.  744.11 for 
activity contrary to U.S. national security and foreign policy 
interests under Sec. Sec.  744.11 and 744.21 of the EAR: Design and 
Manufacturing of Aircraft Engines, Islamic Revolutionary Guard Corps 
Aerospace Force, Islamic Revolutionary Guard Corps Research and Self-
Sufficiency Jihad Organization, Oje Parvaz Mado Nafar Company, Paravar 
Pars Company, Qods Aviation Industry, and Shahed Aviation Industries. 
These entities are designated by the Departments of State and/or the 
Treasury pursuant to Executive Order 13382 and other sanctions 
programs. They are also currently subject to restrictions set forth in 
part 744 of the EAR, such as those in Sec. Sec.  744.8, 744.12, and 
744.14. With this rule, these entities are added to the Entity List for 
contributing to Russia's military and defense industrial base through 
the production of Iranian unmanned aerial vehicles (UAVs), which are 
being transferred to Russia for use in Ukraine. This activity is 
contrary to U.S. national security and foreign policy interests under 
Sec.  744.11(b) and these entities qualify as `military end-users' 
under Sec.  744.21(g) 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 
in Sec.  734.9(g) of the EAR. These seven entities are added to the 
Entity List with a license requirement for all items subject to the 
EAR. BIS will review license applications for items for these entities 
under a policy of denial apart from food and medicine designated as 
EAR99, which will be reviewed on a case-by-case basis. No license 
exceptions are available for exports, reexports, or transfers (in-
country) to these entities.
    For the reasons described above, this final rule adds the following 
seven entities to the Entity List and includes, where appropriate, 
aliases:

Iran

     Design and Manufacturing of Aircraft Engines (DAMA);
     Islamic Revolutionary Guard Corps Aerospace Force;
     Islamic Revolutionary Guard Corps Research and Self-
Sufficiency Jihad Organization;
     Oje Parvaz Mado Nafar Company;
     Paravar Pars Company;
     Qods Aviation Industry; and
     Shahed Aviation Industries.

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 January 31, 2023, 
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) 
before March 3, 2023. Any such items not actually exported, reexported 
or transferred (in-country) before midnight, on March 3, 2023, require 
a license in accordance with this final rule.

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

[[Page 6622]]

(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 29.6 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 under IRAN by adding, in 
alphabetical order, entries for ``Design and Manufacturing of Aircraft 
Engines,'' ``Islamic Revolutionary Guard Corps Aerospace Force,'' 
``Islamic Revolutionary Guard Corps Research and Self-Sufficiency Jihad 
Organization,'' ``Oje Parvaz Mado Nafar Company,'' ``Paravar Pars 
Company,'' ``Qods Aviation Industry,'' and ``Shahed Aviation 
Industries'' to read as follows:

Supplement No. 4 to Part 744--Entity List

* * * * *

----------------------------------------------------------------------------------------------------------------
                                                                              License review    Federal Register
        Country                     Entity             License requirement        policy            citation
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
IRAN...................                                         * * * * *
                         Design and Manufacturing of   For all items        Policy of denial   88 FR [INSERT FR
                          Aircraft Engines (DAMA),      subject to the       for all items      PAGE NUMBER], 2/
                          a.k.a., the following four    EAR. (See Sec.       subject to the     1/2023.
                          aliases:                      Sec.                 EAR apart from
                         --DAMA;                        734.9(g),\3\         food and
                         --Design and Manufacturing     744.21(b) and        medicine
                          of Aero-Engine Company;       746.8(a)(3) of the   designated as
                         --Iranian Turbine              EAR)                 EAR99, which
                          Manufacturing Industries;                          will be reviewed
                          and                                                on a case-by-
                         --Turbine Engine                                    case basis. See
                          Manufacturing Co.                                  Sec.  Sec.
                         Shishesh Mina Street, Karaj                         746.8(b) and
                          Special Road, Tehran, Iran.                        744.21(e).
                                                                * * * * *
                         Islamic Revolutionary Guard   For all items        Policy of denial   88 FR [INSERT FR
                          Corps Aerospace Force,        subject to the       for all items      PAGE NUMBER], 2/
                          a.k.a., the following ten     EAR. (See Sec.       subject to the     1/2023.
                          aliases:                      Sec.                 EAR apart from
                         --IRGC-ASF;                    734.9(g),\3\         food and
                         --Aerospace Division of        744.21(b) and        medicine
                          IRGC;                         746.8(a)(3) of the   designated as
                         --Aerospace Force of the       EAR)                 EAR99, which
                          Army of the Guardians of                           will be reviewed
                          the Islamic Revolution;                            on a case-by-
                         --AFAGIR;                                           case basis. See
                         --Air Force, IRGC;                                  Sec.  Sec.
                         --IRGC Aerospace Force;                             746.8(b) and
                         --IRGC Air Force; IRGCAF;                           744.21(e).
                         --IRGCASF; Islamic
                          Revolution Guards Corps Air
                          Force;
                         --Islamic Revolutionary
                          Guards Corps Air Force; and
                         --Sepah Pasdaran Air Force.
                         Damavand Tehran Highway,
                          Tehran Province, Iran

[[Page 6623]]

 
                         Islamic Revolutionary Guard   For all items        Policy of denial   88 FR [INSERT FR
                          Corps Research and Self-      subject to the       for all items      PAGE NUMBER], 2/
                          Sufficiency Jihad             EAR. (See Sec.       subject to the     1/2023.
                          Organization, a.k.a., the     Sec.                 EAR apart from
                          following 13 aliases:         734.9(g),\3\         food and
                         --IRGC SSJO;                   744.21(b) and        medicine
                         --Islamic Revolutionary        746.8(a)(3) of the   designated as
                          Guard Corps Self-             EAR)                 EAR99, which
                          Sufficiency Jehad                                  will be reviewed
                          Organization;                                      on a case-by-
                         --IRGC Research and Self                            case basis. See
                          Sufficiency Jehad                                  Sec.  Sec.
                          Organization;                                      746.8(b) and
                         --Self-Sufficiency Jihad                            744.21(e).
                          Organization;
                         --IRGC's Arms and Military
                          Equipment Self-Sufficiency
                          Program;
                         --IRGC Jihad Self-
                          Sufficiency Organization;
                         --Jihad Self-Sufficiency
                          Organization of Islamic
                          Revolution Iranian
                          Revolutionary Guards;
                         --Self Sufficiency Jihad
                          Organization;
                         --IRGC's Self-Sufficiency
                          and Industrial Research
                          Center;
                         --IRGC's Self-Sufficiency
                          and Industrial Research
                          Centre;
                         --IRGC Missile Research
                          Center;
                         --IRGC Self-Sufficiency
                          Organization; and
                         --IRGC's Research and Self-
                          Sufficiency Organization.
                         Tehran and Isfahan, Iran
                                                                * * * * *
                         Oje Parvaz Mado Nafar         For all items        Policy of denial   88 FR [INSERT FR
                          Company, a.k.a., the          subject to the       for all items      PAGE NUMBER], 2/
                          following three aliases:      EAR. (See Sec.       subject to the     1/2023.
                         --Mado;                        Sec.                 EAR apart from
                         --Owj Parvaz Mado Nafar        734.9(g),\3\         food and
                          Company LLC; and              744.21(b) and        medicine
                         --Mado Company                 746.8(a)(3) of the   designated as
                         No. 1106, 11 Hemmat Corner,    EAR)                 EAR99, which
                          Hemmat Square, Hemmat                              will be reviewed
                          Boulevard, Shokuhieh                               on a case-by-
                          Industrial Town, Qom, Qom                          case basis. See
                          Province, 3718116354, Iran                         Sec.  Sec.
                                                                             746.8(b) and
                                                                             744.21(e).
                                                                * * * * *
                         Paravar Pars Company,         For all items        Policy of denial   88 FR [INSERT FR
                          a.k.a., the following six     subject to the       for all items      PAGE NUMBER], 2/
                          aliases:                      EAR. (See Sec.       subject to the     1/2023.
                         --Paravar Pars Aerospace       Sec.                 EAR apart from
                          Research and Engineering      734.9(g),\3\         food and
                          Services;                     744.21(b) and        medicine
                         --Paravar Pars Aerospace       746.8(a)(3) of the   designated as
                          Research Institute;           EAR)                 EAR99, which
                         --Paravar Pars Engineering                          will be reviewed
                          and Services Aerospace                             on a case-by-
                          Research Company;                                  case basis. See
                         --Paravar Pars;                                     Sec.  Sec.
                         --ParavarPars; and                                  746.8(b) and
                         --Pravarpars Engineering                            744.21(e).
                          Research and Design Company
                         13 km of Shahid Babaei
                          Highway, after Imam Hossein
                          University, next to Telo
                          Road, Tehran, Iran
                                                                * * * * *
                         Qods Aviation Industry,       For all items        Policy of denial   88 FR [INSERT FR
                          a.k.a., the following eight   subject to the       for all items      PAGE NUMBER], 2/
                          aliases:                      EAR. (See Sec.       subject to the     1/2023.
                         --Qods Aviation Industries;    Sec.                 EAR apart from
                         --Qoods Aviation Industries;   734.9(g),\3\         food and
                         --Qhods Aviation Industries;   744.21(b) and        medicine
                         --Qods Aviation Industry;      746.8(a)(3) of the   designated as
                         --Qods Air Industries;         EAR)                 EAR99, which
                         --Ghods Aviation Industries;                        will be reviewed
                         --Qods Research Center; and                         on a case-by-
                         --Qods Aeronautics                                  case basis. See
                          Industries.                                        Sec.  Sec.
                         Unit (or Suite) 207, Saleh                          746.8(b) and
                          Blvd, Tehran, Iran; and                            744.21(e).
                          Unit 207, Tarajit Maydane
                          Taymori (or Teimori)
                          Square, Basiri Building,
                          Tarasht, Tehran, Iran; and
                          P.O. Box 15875-1834, Km 5
                          Karaj Special Road, Tehran,
                          Iran
                                                                * * * * *

[[Page 6624]]

 
                         Shahed Aviation Industries,   For all items        Policy of denial   88 FR [INSERT FR
                          a.k.a., the following five    subject to the       for all items      PAGE NUMBER], 2/
                          aliases:                      EAR. (See Sec.       subject to the     1/2023.
                         --Shahed Aviation Industries   Sec.                 EAR apart from
                          Research Center;              734.9(g),\3\         food and
                         --Shahed Aviation;             744.21(b) and        medicine
                         --Shahed Aviation Industries   746.8(a)(3) of the   designated as
                          Research;                     EAR)                 EAR99, which
                         --Shahed Aviation Industries                        will be reviewed
                          Research Centre; and                               on a case-by-
                         --SAIRC.                                            case basis. See
                         Shahid Lavi Street, Sajad                           Sec.  Sec.
                          Street, Isfahan, Iran                              746.8(b) and
                                                                             744.21(e).
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
 * * * * * * *
\3\ For this entity, ``items subject to the EAR'' includes foreign-produced items that are subject to the EAR
  under Sec.   734.9(g) of the EAR. See Sec.  Sec.   746.8 and 744.21 of the EAR for related license
  requirements, license review policy, and restrictions on license exceptions.
 * * * * * * *

Thea D. Rozman Kendler,
Assistant Secretary for Export Administration.
[FR Doc. 2023-02130 Filed 1-31-23; 8:45 am]
BILLING CODE 3510-JT-P