Document ID: BIS-2024-0013-0001
Agency: bis
Document Type: Rule
Title: Removals from the Unverified List
Posted Date: 2023-12-19T05:00Z

[Federal Register Volume 88, Number 242 (Tuesday, December 19, 2023)]
[Rules and Regulations]
[Pages 87668-87670]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-27932]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 744

[Docket No. 231213-0301]
RIN 0694-AJ50

Removals From the Unverified List

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

ACTION: Final rule.

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SUMMARY: The Bureau of Industry and Security (BIS) is amending the 
Export Administration Regulations (EAR) by removing four persons, all 
under the destination of People's Republic of China (China), from the 
UVL because BIS was able to verify their bona fides.

DATES: This rule is effective: December 15, 2023.

FOR FURTHER INFORMATION CONTACT: Kevin J. Kurland, Deputy Assistant 
Secretary for Export Enforcement, Phone: (202) 482-4255 or by email at 
[email protected].

SUPPLEMENTARY INFORMATION:

[[Page 87669]]

Background

    The UVL, found in supplement no. 6 to part 744 of the EAR (15 CFR 
parts 730-774), contains the names and addresses of foreign persons who 
are or have been parties to a transaction, as described in Sec.  748.5 
of the EAR, involving the export, reexport, or transfer (in-country) of 
items subject to the EAR. These foreign persons are added to the UVL 
because BIS or federal officials acting on BIS's behalf were unable to 
verify their bona fides (i.e., legitimacy and reliability relating to 
the end-use and end user of items subject to the EAR) through an end-
use check. These checks, such as a pre-license check (PLC) or a post-
shipment verification (PSV), cannot be completed satisfactorily for 
reasons outside the U.S. Government's control.
    There are any number of reasons why these checks cannot be 
completed to the satisfaction of the U.S. Government. Section 
744.15(c)(1) of the EAR provides illustrative examples of those 
circumstances, including reasons unrelated to the cooperation of the 
foreign party subject to the end-use check. Such examples include: (i) 
During the conduct of an end-use check, the subject of the check is 
unable to demonstrate the disposition of items subject to the EAR; (ii) 
The existence or authenticity of the subject of an end-use check cannot 
be verified (e.g., the subject of the check cannot be located or 
contacted); (iii) Lack of cooperation by the host government authority 
prevents an end-use check from being conducted.
    BIS's inability to confirm the bona fides of foreign persons 
subject to end-use checks raises concerns about the suitability of such 
persons as participants in future exports, reexports, or transfers (in-
country) of items subject to the EAR; it also indicates a risk that 
such items may be diverted to prohibited end uses and/or end users. 
Under such circumstances, there may not be sufficient information to 
add the foreign person at issue to the Entity List under Sec.  744.11 
of the EAR. Therefore, BIS may add the foreign person to the UVL.
    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 
maintain 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. Finally, pursuant to Sec.  758.1(b)(8), Electronic 
Export Information (EEI) must be filed in the Automated Export System 
(AES) for all exports of tangible items subject to the EAR where any 
party to the transaction, as described in Sec.  748.5(d) through (f), 
is listed on the UVL.
    Requests for the 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 a UVL entry will be made by the Deputy Assistant 
Secretary for Export Enforcement, based on a demonstration by the 
listed person of their bona fides.

Removals From the UVL

    This final rule removes four persons from the UVL because BIS was 
able to verify their bona fides. This rule removes Chengde Oscillator 
Electronic Technology Co., China National Erzhong Group, Ningbo III 
Lasers Technology Co., Ltd., and Xinjiang East Hope New Energy Company 
Ltd., all under the destination of China. BIS is removing these four 
persons pursuant to Sec.  744.15(c)(2) of the EAR.

Rulemaking Requirements

Executive Order Requirements

    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, distribute 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 final rule has not been designated a ``significant 
regulatory action'' under Executive Order 12866.
    This rule does not contain policies with Federalism implications as 
that term is defined under Executive Order 13132.

Paperwork Reduction Act Requirements

    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.
    The UVL additions contain collections of information approved by 
OMB under the following control numbers:

 OMB Control Number 0694-0088--Simple Network Application 
Process and Multipurpose Application Form
 OMB Control Number 0694-0122--Miscellaneous Licensing 
Responsibilities and Enforcement
 OMB Control Number 0694-0134--Entity List and Unverified List 
Requests,
 OMB Control Number 0694-0137--License Exemptions and 
Exclusions.

    BIS believes that the overall increases in burdens and costs will 
be minimal and will fall within the already approved amounts for these 
existing collections. Additional information regarding these 
collections of information--including all background materials--can be 
found at https://www.reginfo.gov/public/do/PRAMain by using the search 
function to enter either the title of the collection or the OMB Control 
Number.

Administrative Procedure Act and Regulatory Flexibility Act 
Requirements

    Pursuant to Section 1762 of ECRA (50 U.S.C. 4821), this action is 
exempt from the Administrative Procedure Act (5 U.S.C. 553) 
requirements for notice of proposed rulemaking and opportunity for 
public participation.
    Further, no other law requires notice of proposed rulemaking or 
opportunity for public comment for this final rule. Because a notice of 
proposed rulemaking and an opportunity for public comment are not 
required under the Administrative Procedure Act 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 through 774) is amended as follows:

PART 744--END-USE AND END-USER CONTROLS

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

[[Page 87670]]

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 November 8, 2022, 87 FR 68015, 3 CFR, 
2022 Comp., p. 563; Notice of September 7, 2023, 88 FR 62439 
(September 11, 2023).

0
2. Supplement No. 6 to Part 744 is amended under CHINA, PEOPLE'S 
REPUBLIC OF, by removing the entries for ``Chengde Oscillator 
Electronic Technology Co.'', ``China National Erzhong Group'', ``Ningbo 
III Lasers Technology Co., Ltd.'', and ``Xinjiang East Hope New Energy 
Company Ltd''.

Thea D. Rozman Kendler,
Assistant Secretary for Export Administration.
[FR Doc. 2023-27932 Filed 12-15-23; 11:15 am]
BILLING CODE 3510-33-P