Document ID: BIS-2023-0028-0001
Agency: bis
Document Type: Rule
Title: Additions to the Entity List
Posted Date: 2023-07-19T04:00Z

[Federal Register Volume 88, Number 137 (Wednesday, July 19, 2023)]
[Rules and Regulations]
[Pages 46071-46073]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-15343]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 744

[Docket No. 230713-0167]
RIN 0694-AJ28

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 four entities to 
the Entity List under the destinations of Greece, Hungary, Ireland, and 
North Macedonia. These four 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.

DATES: This rule is effective on July 18, 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 through 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 Intellexa S.A., under the destination of 
Greece, Cytrox Holdings Zrt., under the destination of Hungary, 
Intellexa Limited, under the destination of Ireland, and Cytrox AD, 
under the destination of North Macedonia, to the Entity List for 
trafficking in cyber exploits used to gain access to information 
systems, thereby threatening the privacy and security of individuals 
and organizations worldwide. This activity is contrary to U.S. national 
security and foreign policy interests under Sec.  744.11 of the EAR. 
For these four entities, BIS imposes a license requirement for all 
items subject to the EAR and will review license applications under a 
presumption of denial.

Greece

     Intellexa S.A.

Hungary

     Cytrox Holdings Zrt.

Ireland

     Intellexa Limited.

[[Page 46072]]

North Macedonia

     Cytrox AD.

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 July 18, 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 August 17, 2023. 
Any such items not actually exported, reexported or transferred (in-
country) before midnight, on August 17, 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 (OMB) Control Number. This regulation involves an 
information collection approved by OMB under control number 0694-0088, 
Simplified Network Application Processing System. BIS does not 
anticipate a change to the burden hours associated with this collection 
as a result of this rule. Information regarding the collection, 
including all supporting materials, can be accessed at https://www.reginfo.gov/public/do/PRAMain.
    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 through 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 by:
0
a. Under GREECE, adding an entry in alphabetical order for ``Intellexa 
S.A.'';
0
b. Adding in alphabetical order the country HUNGARY followed by the 
entry ``Cytrox Holdings Zrt'';
0
c. Under IRELAND, adding an entry in alphabetical order for ``Intellexa 
Limited''; and
0
d. Adding in alphabetical order the country NORTH MACEDONIA followed by 
the entry ``Cytrox AD''.
    The additions read as follows:

Supplement No. 4 to Part 744--Entity List

* * * * *

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                                                                                                                                     Federal Register
           Country                                 Entity                         License requirement     License review policy          citation
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                                                                      * * * * * * *
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GREECE......................                                                          * * * * * *
                              Intellexa S.A., a.k.a., the following one alias:  For all items subject    Presumption of denial..  88 FR [INSERT FR PAGE
                              --Intellexa Anonymi Etaireia.                      to the EAR. (See Sec.                             NUMBER 7/19/2023].
                                                                                  744.11 of the EAR).
                              Vouliagmenis Ave. & 14 Hatzievaggelou Elliniko,
                               16777, Greece; and Leof Vouliagmenis 47, 16777,
                               Elliniko, Greece; and Irodou Attikou Streeet 7,
                               Athens, Greece; and Karaoli Dimitriou 1 &
                               Vasiliss 1, 15231, Athens, Greece.
                                                                                      * * * * * *
HUNGARY.....................  Cytrox Holdings Zrt, a.k.a., the following one    For all items subject    Presumption of denial..  88 FR [INSERT FR PAGE
                               alias:                                            to the EAR. (See Sec.                             NUMBER 7/19/2023].
                              --Cytrox Holdings Zartkoruen Mukodo                 744.11 of the EAR).
                               Reszvenytarsasag.
                              De[aacute]k Ferenc t[eacute]r 3. Budapest, 1052
                               Hungary.
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[[Page 46073]]

 
 
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IRELAND.....................  Intellexa Limited, a.k.a., the following one      For all items subject    Presumption of denial..  88 FR [INSERT FR PAGE
                               alias:                                            to the EAR. (See Sec.                             NUMBER 7/19/2023].
                              --Intellexa Ltd.                                    744.11 of the EAR).
                              3rd Floor, Ulysses House, Foley Street, Dublin
                               1, Dublin, Ireland, D01W2T2.
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                                                                      * * * * * * *
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NORTH MACEDONIA.............  Cytrox AD, a.k.a., the following one alias:       For all items subject    Presumption of denial..  88 FR [INSERT FR PAGE
                              --Sytrox.                                          to the EAR. (See Sec.                             NUMBER 7/19/2023].
                              October 20, no. 1/1-1 Skopje, Karpos, North         744.11 of the EAR).
                               Macedonia; and Metropolitan Theodosij Gologanov
                               44, Skopje, Karpos, North Macedonia.
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Thea D. Rozman Kendler,
Assistant Secretary for Export Administration.
[FR Doc. 2023-15343 Filed 7-18-23; 8:45 am]
BILLING CODE 3510-33-P