Document ID: BIS-2017-0016-0001
Agency: bis
Document Type: Rule
Title: Revisions to the Unverified List
Posted Date: 2017-04-06T04:00Z

[Federal Register Volume 82, Number 65 (Thursday, April 6, 2017)]
[Rules and Regulations]
[Pages 16730-16733]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-06857]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 744

[Docket No. 170105022-7022-01]
RIN 0694-AH29

Revisions to the Unverified List (UVL)

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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SUMMARY: The Bureau of Industry and Security (BIS) is amending the 
Export Administration Regulations (EAR) by adding six (6) persons to 
the Unverified List (the ``Unverified List'' or UVL); revising two 
addresses and adding an alternate name, or a.k.a., for one (1) person 
currently listed on the UVL; and revising three addresses, adding three 
additional addresses, and adding an alternate name, or a.k.a, for one 
(1) person currently listed on the UVL. The six persons are being added 
to the UVL on the basis that BIS could not verify their bona fides 
because an end-use check could not be completed satisfactorily for 
reasons outside the U.S. Government's control. Two addresses are 
revised for one person currently listed on the UVL to add the official 
Hong Kong district name. In addition, this rule adds an alternate name 
for this person. This rule also revises three addresses for an 
additional person currently listed on the UVL to add the official Hong 
Kong district names and correct a previous error. Finally, this rule 
adds three additional addresses and an alternate name for this person, 
as BIS has determined this person is receiving U.S. exports at 
additional addresses and using an additional name.

DATES: Effective date: This rule is effective: April 6, 2017.

FOR FURTHER INFORMATION CONTACT: Kevin Kurland, Director, Office of 
Enforcement Analysis, Bureau of Industry and Security, Department of 
Commerce, Phone: (202) 482-4255 or by email at UVLRequest@bis.doc.gov.

SUPPLEMENTARY INFORMATION:

Background

    The Unverified List, found in Supplement No. 6 to Part 744 to the 
EAR, contains the names and addresses of foreign persons who are or 
have been parties to a transaction, as that term is described in Sec.  
748.5 of the EAR, involving the export, reexport, or transfer (in-
country) of items subject to the EAR, and whose bona fides BIS has been 
unable to verify through an end-use check. BIS may add persons to the 
UVL when BIS or federal officials acting on BIS's behalf have been 
unable to verify a foreign person's bona fides (i.e., legitimacy and 
reliability relating to the end use and end user of items subject to 
the EAR) because an end-use check, such as a pre-license check (PLC) or 
a post-shipment verification (PSV), cannot be completed satisfactorily 
for such purposes for reasons outside the U.S. Government's control.

[[Page 16731]]

    End-use checks cannot be completed for a number of reasons, 
including reasons unrelated to the cooperation of the foreign party 
subject to the end-use check. For example, BIS sometimes initiates end-
use checks and cannot find a foreign party at the address indicated on 
export documents, and cannot locate the party by telephone or email. 
Additionally, BIS sometimes is unable to conduct end-use checks when 
host government agencies do not respond to requests to conduct end-use 
checks, are prevented from scheduling such checks by a party to the 
transaction other than the foreign party that is the proposed subject 
of the end-use check or refuse to schedule them in a timely manner. 
Under these circumstances, although BIS has an interest in informing 
the public of its inability to verify the foreign party's bona fides, 
there may not be sufficient information to add the foreign persons at 
issue to the Entity List under Sec.  744.11 of the EAR (Criteria for 
revising the Entity List). In such circumstances, BIS may add the 
foreign persons to the UVL.
    Furthermore, BIS sometimes conducts end-use checks but cannot 
verify the bona fides of a foreign party. For example, BIS may be 
unable to verify bona fides if during the conduct of an end-use check a 
recipient of items subject to the EAR is unable to produce those items 
for visual inspection or provide sufficient documentation or other 
evidence to confirm the disposition of those items. The inability of 
foreign persons subject to end-use checks to demonstrate their bona 
fides raises concerns about the suitability of such persons as 
participants in future exports, reexports, or transfers (in-country) of 
items subject to the EAR and indicates a risk that such items may be 
diverted to prohibited end uses and/or end users. However, BIS may not 
have sufficient information to establish that such persons are involved 
in activities described in part 744 of the EAR, preventing the 
placement of the persons on the Entity List. In such circumstances, the 
foreign persons may be added to the Unverified List.
    As provided in Sec.  740.2(a)(17) of the EAR, the use of license 
exceptions for exports, reexports, and transfers (in-country) involving 
a party or parties to the transaction who are listed on the UVL is 
suspended. Additionally, under Sec.  744.15(b) of the EAR, there is a 
requirement for exporters, reexporters, and transferors to obtain (and 
keep a record of) a UVL statement from a party or parties to the 
transaction who are listed on the UVL before proceeding with exports, 
reexports, and transfers (in-country) to such persons, when the 
exports, reexports and transfers (in-country) are not subject to a 
license requirement.
    Requests for removal of a UVL entry must be made in accordance with 
Sec.  744.15(d) of the EAR. Decisions regarding the removal or 
modification of UVL listings will be made by the Deputy Assistant 
Secretary for Export Enforcement, based on a demonstration by the 
listed person of its bona fides.

Changes to the EAR

Supplement No. 6 to Part 744 (``the Unverified List'' or ``UVL'')

    This rule adds six (6) persons to the UVL by amending Supplement 
No. 6 to Part 744 of the EAR to include their names and addresses. BIS 
adds these persons in accordance with the criteria for revising the UVL 
set forth in Sec.  744.15(c) of the EAR. The new entries consist of 
three persons located in China and one person located in each of the 
following countries or territories: Azerbaijan, Lebanon, and the United 
Arab Emirates. Each listing is grouped within the UVL by country with 
each party's name(s) listed in alphabetical order under the country; 
each entry includes available alias(es) and address(es), as well as the 
Federal Register citation and the date the person was added to the UVL. 
The UVL is included in the Consolidated Screening List, available at 
www.export.gov.
    This rule also revises two addresses for one person currently 
listed on the UVL, Brilliance Technology Ltd., to add the official Hong 
Kong district name. In addition, BIS is adding an alternate name for 
Brilliance Technology Ltd., as BIS has determined this person is doing 
business as Brilliance Technology Group. Additionally, this rule 
revises two addresses for Ling Ao Electronic Technology Co., Ltd., 
which is currently listed on the UVL, to add the official Hong Kong 
district name. BIS is revising a third address for this person to 
correct a previous error in the street name and to add the name of the 
building in which this person is located. BIS is also adding three 
additional addresses for Ling Ao Electronic Technology Co., Ltd., as 
BIS has determined this person is receiving U.S. exports at these 
addresses. Finally, BIS is adding Xuan Qi Technology Co., Ltd. as an 
alternate name for Ling Ao Electronic Technology Co., Ltd.

Savings Clause

    Shipments (1) removed from license exception eligibility or that 
are now subject to requirements in Sec.  744.15 of the EAR as a result 
of this regulatory action; (2) eligible for export, reexport, or 
transfer (in-country) without a license before this regulatory action; 
and (3) on dock for loading, on lighter, laden aboard an exporting 
carrier, or en route aboard a carrier to a port of export, on April 6, 
2017, pursuant to actual orders, may proceed to that UVL listed person 
under the previous license exception eligibility or without a license 
so long as the items have been exported from the United States, 
reexported or transferred (in-country) before May 8, 2017. Any such 
items not actually exported, reexported or transferred (in-country) 
before midnight on May 8, 2017 are subject to the requirements in Sec.  
744.15 of the EAR in accordance with this regulation.

Export Administration Act

    Since August 21, 2001, the Export Administration Act of 1979, as 
amended, has been in lapse. However, the President, through Executive 
Order 13222 of August 17, 2001, 3 CFR, 2001 Comp., p. 783 (2002), as 
amended by Executive Order 13637 of March 8, 2013, 78 FR 16129 (March 
13, 2013), and as extended by the Notice of August 4, 2016, 81 FR 52587 
(August 8, 2016) has continued the EAR in effect under the 
International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.). 
BIS continues to carry out the provisions of the Export Administration 
Act, as appropriate and to the extent permitted by law, pursuant to 
Executive Order 13222 as amended by Executive Order 13637.

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 not been designated a ``significant 
regulatory action,'' under section 3(f) of Executive Order 12866.
    2. The provisions of the Administrative Procedure Act (5 U.S.C. 
553) requiring notice of proposed rulemaking, the opportunity for 
public comment and a delay in effective date are inapplicable to this 
rule, which is adding 6 persons, revising 2 addresses and adding an 
alternate name, or a.k.a. for 1 person currently listed on the UVL, and 
revising 3 addresses, adding 3 new addresses, and adding an alternate

[[Page 16732]]

name, or a.k.a. for 1 other person currently listed on the UVL, because 
this regulation involves military or foreign affairs under 5 U.S.C. 
553(a)(1). BIS implements this rule to protect U.S. national security 
or foreign policy interests by requiring a license or, where no license 
is required, a UVL statement for items being exported, reexported, or 
transferred (in country) involving a party or parties to the 
transaction who are listed on the UVL. If this rule were delayed to 
allow for notice and comment and a delay in effective date, the 
entities being added to the UVL by this action, the entities now 
operating under an alternate name, and the entities whose addresses 
were revised would continue to be able to receive items without 
additional oversight by BIS and to conduct activities contrary to the 
national security or foreign policy interests of the United States. In 
addition, publishing a proposed rule would give these parties notice of 
the U.S. Government's intention to place them on the UVL or amend their 
current entry on the UVL, and create an incentive for these persons to 
accelerate receiving items subject to the EAR in furtherance of 
activities contrary to the national security or foreign policy 
interests of the United States, and/or take steps to set up additional 
aliases, change addresses, and other measures to try to limit the 
impact of the listing once a final rule was published.
    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. Accordingly, no regulatory 
flexibility analysis is required and none has been prepared.
    3. Notwithstanding any other provision of law, no person is 
required to respond to, nor is 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 the following control 
numbers: 0694-0088, 0694-0122, 0694-0134, and 0694-0137.
    This rule slightly increases public burden in a collection of 
information approved by OMB under control number 0694-0088, which 
authorizes, among other things, export license applications. The 
removal of license exceptions for listed persons on the Unverified List 
will result in increased license applications being submitted to BIS by 
exporters. Total burden hours associated with the Paperwork Reduction 
Act and OMB control number 0694-0088 are expected to increase 
minimally, as the suspension of license exceptions will only affect 
transactions involving persons listed on the Unverified List and not 
all export transactions. Because license exceptions are restricted from 
use, this rule decreases public burden in a collection of information 
approved by OMB under control number 0694-0137 minimally, as this will 
only affect specific individual listed persons. The increased burden 
under 0694-0088 is reciprocal to the decrease of burden under 0694-
0137, and results in no change of burden to the public. This rule also 
increases public burden in a collection of information under OMB 
control number 0694-0122, as a result of the exchange of UVL statements 
between private parties, and under OMB control number 0694-0134, as a 
result of appeals from persons listed on the UVL for removal of their 
listing. The total increase in burden hours associated with both of 
these collections is expected to be minimal, as they involve a limited 
number of persons listed on the UVL.
    4. This rule does not contain policies with Federalism implications 
as that term is defined in Executive Order 13132.

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 through 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. 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. 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 4, 2016, 81 FR 52587 
(August 8, 2016); Notice of September 15, 2016, 81 FR 64343 
(September 19, 2016); Notice of November 8, 2016, 81 FR 79379 
(November 10, 2016); Notice of January 13, 2017, 82 FR 6165 (January 
18, 2017).

0
2. Supplement No. 6 to Part 744 is amended by:
0
a. Adding one entry, in alphabetical order, for ``Azerbaijan'';
0
b. Adding three entries, in alphabetical order, under ``China'';
0
c. Revising the entries for ``Brilliance Technology Ltd'' and ``Ling Ao 
Electronic Technology Co. Ltd.'' under ``Hong Kong'';
0
d. Adding one entry, in alphabetical order, for ``Lebanon''; and
0
e. Adding one entry, in alphabetical order, under ``United Arab 
Emirates''.
    The additions and revisions read as follows:

Supplement No. 6 to Part 744--Unverified List

* * * * *

------------------------------------------------------------------------
                                                      Federal Register
           Country              Listed person and   citation and date of
                                     address             publication
------------------------------------------------------------------------
AZERBAIJAN..................  Caspian Oil Montaj,   82 FR [INSERT
                               Office 39, Block B,   Federal Register
                               30 Kaverochkin        PAGE NUMBER] April
                               Street, Baku,         6, 2017.
                               Azerbaijan.
 
                              * * * * * * *
CHINA.......................  ARI International,    82 FR [INSERT
                               Ltd., Room 1208,      Federal Register
                               Block B, Jiangsu      PAGE NUMBER] April
                               Building, No. 6013    6, 2017.
                               Yitian Road, Futian
                               District, Shenzhen,
                               China.
 
                              * * * * * * *
                              Jiangsu HNHB          82 FR [INSERT
                               Equipment Co.,        Federal Register
                               Ltd., No. 9,          PAGE NUMBER] April
                               Xiangtou West Road,   6, 2017.
                               Yixing City,
                               Jiangsu Province,
                               China.
                              Shenzhen Winthought   82 FR [INSERT
                               Tech, Room 223,       Federal Register
                               Zhong Xing            PAGE NUMBER] April
                               Industrial City,      6, 2017.
                               Chuangye Road,
                               Nanshan District,
                               Shenzhen, China.
 

[[Page 16733]]

 
                              * * * * * * *
HONG KONG                                      * * * * *
                              Brilliance            79 FR 34220, June
                               Technology Ltd,       16, 2014. 82 FR
                               a.k.a., Brilliance    [INSERT Federal
                               Technology Group,     Register PAGE
                               Flat A, 11/F,         NUMBER] April 6,
                               Adolfo Mansion, 114-  2017.
                               116 Austin Road,
                               Tsim Sha Tsui, Yau
                               Tsim Mong, Hong
                               Kong; and Rm. 1203,
                               12/F, Hip Kwan
                               Commercial Bldg.,
                               38 Pitt Street, Yau
                               Ma Tei, Yau Tsim
                               Mong, Hong Kong.
 
                              * * * * * * *
                              Ling Ao Electronic    80 FR 4779, January
                               Technology Co.        29, 2015.
                               Ltd., a.k.a. Voyage  80 FR 60529, October
                               Technology (HK) Co.   7, 2015.
                               Ltd., a.k.a. Xuan    82 FR [INSERT
                               Qi Technology Co.,    Federal Register
                               Ltd.                  PAGE NUMBER] April
                                                     6, 2017.
                              Room 17, 7/F, Metro   ....................
                               Centre Phase 1, No.
                               32 Lam Hing St.,
                               Kowloon Bay, Kwun
                               Tong, Hong Kong;
                               and
                              15B, 15/F, Cheuk      ....................
                               Nang Plaza, 250
                               Hennessy Road,
                               Wanchai, Hong Kong;
                               and
                              Flat C, 11/F, Block   ....................
                               No. 2, Camelpaint
                               Bldg. 62 Hoi Yuen
                               Street, Kwun Tong,
                               Kowloon, Hong Kong;
                               and
                              Room C1-D, 6/F, Wing  ....................
                               Hing Industrial
                               Building 14 Hing
                               Yip Street, Kwun
                               Tong, Kowloon, Hong
                               Kong; and
                              Flat/Rm. A30, 9/F     ....................
                               Silvercorp
                               International
                               Tower, 707-713
                               Nathan Road,
                               Mongkok, Kowloon,
                               Hong Kong; and
                              Room, 912A, 9/F.      ....................
                               Witty Commercial
                               Building, 1A-1L
                               Tung Choi Street,
                               Mongkok, Kowloon,
                               Hong Kong; and
                              Unit A, 7/F, King     ....................
                               Yip Factory Bldg.,
                               59 King Yip Street,
                               Kwun Tong, Kowloon,
                               Hong Kong.
 
                              * * * * * * *
LEBANON.....................  Al Ghayth Trade and   82 FR [INSERT
                               Transport, 1st        Federal Register
                               Floor, Bohsali        PAGE NUMBER] April
                               Bldg., Beirut Port    6, 2017.
                               Street, Beirut,
                               Lebanon.
 
                              * * * * * * *
UNITED ARAB EMIRATES                           * * * * *
                              Blue Wing General     82 FR [INSERT
                               Trading, Damas        Federal Register
                               Tower #506, Al        PAGE NUMBER] April
                               Maktoum Road,         6, 2017.
                               Dubai, UAE.
 
                              * * * * * * *
------------------------------------------------------------------------

    Dated: March 29, 2017.
Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 2017-06857 Filed 4-5-17; 8:45 am]
 BILLING CODE 3510-33-P