Document ID: BIS-2021-0015-0001
Agency: bis
Document Type: Rule
Title: Addition of Entities to the Entity List
Posted Date: 2021-04-09T04:00Z

[Federal Register Volume 86, Number 67 (Friday, April 9, 2021)]
[Rules and Regulations]
[Pages 18437-18439]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-07400]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 744

[Docket No. 210406-0076]
RIN 0694-AI47

Addition of Entities to the Entity List

AGENCY: Bureau of Industry and Security, 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 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 seven entities will be 
listed on the Entity List under the destination of the People's 
Republic of China (China).

DATES: This rule is effective April 8, 2021.

FOR FURTHER INFORMATION CONTACT: Chair, End-User Review Committee, 
Office of the Assistant Secretary, Export Administration, Bureau of 
Industry and Security, Department of Commerce, Phone: (202) 482-5991, 
Fax: (202) 482-3911, Email: ERC@bis.doc.gov.

SUPPLEMENTARY INFORMATION:

Background

    The Entity List (supplement no. 4 to part 744 of the Export 
Administration Regulations (EAR)) 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. The EAR (15 CFR parts 730-774) impose additional license 
requirements on, and limit the availability of most license exceptions 
for, exports, reexports, and transfers (in-country) to listed entities. 
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 notice adding entities to the Entity List. 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 
all decisions to remove or modify an entry by unanimous vote.

ERC Entity List Decisions

Additions to the Entity List

    Under Sec.  744.11(b) (Criteria for revising the Entity List) of 
the EAR, 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 that are contrary to the national security or 
foreign policy interests of the United States, and those acting on 
behalf of such entities, may be added to the Entity List. Paragraphs 
(b)(1) through (5) of Sec.  744.11 provide an illustrative list of 
activities that could be considered contrary to the national security 
or foreign policy interests of the United States.
    This rule implements the decision of the ERC to add seven entities 
to the Entity List. These seven entities will be listed on the Entity 
List under the destination of China. The ERC made the decision to add 
these seven entities described below under the standard set forth in 
Sec.  744.11(b) of the EAR.
    The ERC determined that the seven subject entities are engaging in 
or enabling activities contrary to U.S. national security and foreign 
policy interests, as follows:
    The ``National Supercomputing Center Jinan,'' ``National 
Supercomputing Center Shenzhen,'' ``National Supercomputing Center 
Wuxi,'' ``National Supercomputer Center Zhengzhou,'' ``Shanghai High-
Performance Integrated Circuit Design Center,'' ``Sunway 
Microelectronics,'' and ``Tianjin Phytium Information Technology'' are 
being added to the Entity List on the basis of their procurement of 
U.S.-origin items for activities contrary to the national security and 
foreign policy interests of the United States. Specifically, these 
entities are involved in activities that support China's military 
actors, its destabilizing military modernization efforts, and/or its 
weapons of mass destruction (WMD) programs.
    Pursuant to Sec.  744.11(b), the ERC determined that the conduct of 
the above-described seven entities raises sufficient concerns that 
prior review, via the imposition of a license requirement, of exports, 
reexports, or transfers (in-country) of all items subject to the EAR 
involving these seven entities and the possible issuance of license 
denials or the possible imposition of license conditions on shipments 
to these entities, will enhance BIS's ability to prevent violations of 
the EAR or otherwise protect U.S. national security or foreign policy 
interests. As further provided below, BIS has provided a limited 
exclusion to this rule in the savings clause.
    For the seven entities added to the Entity List in this final rule, 
BIS imposes a license requirement that applies to all items subject to 
the EAR. In addition, no license exceptions are available for exports, 
reexports, or transfers (in-country) to the person being added to the 
Entity List in this rule. For the seven entities added to the Entity 
List by this rule, BIS imposes a license review policy of a presumption 
of denial.
    The acronym ``a.k.a.'' (also known as) is used in entries on the 
Entity List to identify aliases, thereby assisting exporters, 
reexporters, and transferors in identifying entities on the Entity 
List.
    For the reasons described above, this final rule adds the following 
seven entities to the Entity List:

China

     National Supercomputing Center Jinan;

[[Page 18438]]

     National Supercomputing Center Shenzhen;
     National Supercomputing Center Wuxi;
     National Supercomputer Center Zhengzhou;
     Shanghai High-Performance Integrated Circuit Design 
Center;
     Sunway Microelectronics; and
     Tianjin Phytium Information Technology.

Savings Clause

    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 
April 8, 2021, 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. 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 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 carries a burden estimate of 
42.5 minutes for a manual or electronic submission. 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--[AMENDED]

0
1. The authority citation for 15 CFR part 744 is revised 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 18, 2020, 85 FR 59641 (September 22, 2020); Notice of 
November 12, 2020, 85 FR 72897 (November 13, 2020).

0
2. Supplement No. 4 to part 744 is amended under CHINA, PEOPLE'S 
REPUBLIC OF, by adding in alphabetical order entries for ``National 
Supercomputing Center Jinan,'' ``National Supercomputing Center 
Shenzhen,'' ``National Supercomputing Center Wuxi,'' ``National 
Supercomputer Center Zhengzhou,'' ``Shanghai High-Performance 
Integrated Circuit Design Center,'' ``Sunway Microelectronics,'' and 
``Tianjin Phytium Information Technology'' to read as follows:

Supplement No. 4 to Part 744--Entity List

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                                                                                                                   License review      Federal Register
         Country                                      Entity                               License requirement         policy              Citation
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CHINA, PEOPLE'S REPUBLIC                                                            * * * * * *
 OF.
                          National Supercomputing Center Jinan, a.k.a., the following     For all items         Presumption of       86 FR [INSERT FR
                           two aliases:                                                    subject to the EAR.   denial.              PAGE NUMBER] 4/9/
                          --Shandong Computing Center; and--NSCC-JN.                       (See Sec.   744.11                         2021.
                                                                                           of the EAR).
                          No. 1768, Xinluo Street, High-tech Development Zone, Jinan
                           City, Shandong Province, China.
                          National Supercomputing Center Shenzhen, a.k.a., the following  For all items         Presumption of       86 FR [INSERT FR
                           three aliases:                                                  subject to the EAR.   denial.              PAGE NUMBER] 4/9/
                          --The National Supercomputing Shenzhen Center;                   (See Sec.   744.11                         2021.
                          --Shenzhen Cloud Computing Center; and                           of the EAR).
                          --NSCC-SZ.

[[Page 18439]]

 
                          No. 9 Duxue Road, University Town Community, Taoyuan Street,
                           Nanshan District, Shenzhen, China.
                          National Supercomputing Center Wuxi, a.k.a., the following one  For all items         Presumption of       86 FR [INSERT FR
                           alias:                                                          subject to the EAR.   denial.              PAGE NUMBER]
                          --NSCC-WX.                                                       (See Sec.   744.11                        4/9/2021.
                                                                                           of the EAR).
                          No. 1, Yinbai Road, Binhu District, Wuxi City, China.
                          National Supercomputer Center Zhengzhou, a.k.a., the following  For all items         Presumption of       86 FR [INSERT FR
                           one alias:                                                      subject to the EAR.   denial.              PAGE NUMBER] 4/9/
                          --NSCC-ZZ.                                                       (See Sec.   744.11                         2021.
                                                                                           of the EAR).
                          Southeast of the intersection of Fengyang Street and Changchun
                           Road, Zhongyuan District, Zhengzhou City, China; and 1st
                           Floor, Building 18, Zhengzhou University (South Campus),
                           Zhengzhou City, China; and Room 213, Institute of Drug
                           Research, Zhengzhou University, Changchun Road, High-tech
                           Zone, Zhengzhou City, China.
                                                                                    * * * * * *
                          Shanghai High-Performance Integrated Circuit Design Center,     For all items         Presumption of       86 FR [INSERT FR
                           a.k.a., the following two aliases:                              subject to the EAR.   denial.              PAGE NUMBER] 4/9/
                          --Shenwei Micro; and                                             (See Sec.   744.11                         2021.
                          --Shanghai High-Performance IC Design Center.                    of the EAR).
                          No. 399, Bi sheng Road, Zhangjiang Hi-Tech Park, Pudong New
                           Area, Shanghai, China; and 428 Zhanghen Rd, Zhangjiang High
                           Tech Park, Pudong District, Shanghai, China.
                                                                                    * * * * * *
                          Sunway Microelectronics, a.k.a., the following two aliases:     For all items         Presumption of       86 FR [INSERT FR
                          --Chengdu Shenwei Technology; and                                subject to the EAR.   denial.              PAGE NUMBER] 4/9/
                          --Chengdu Sunway Technology.                                     (See Sec.   744.11                         2021.
                                                                                           of the EAR).
                          Building D22, Electronic Science and Technology Park, Section
                           4, Huafu Avenue, Chengdu, China; and Shuangxing Avenue,
                           Gongxing Street, Southwest Airport Economic Development Zone,
                           Shuangliu District, Chengdu, China.
                                                                                    * * * * * *
                          Tianjin Phytium Information Technology, a.k.a., the following   For all items         Presumption of       86 FR [INSERT FR
                           three aliases:                                                  subject to the EAR.   denial.              PAGE NUMBER] 4/9/
                          --Phytium;                                                       (See Sec.   744.11                         2021.
                          --Phytium Technology; and                                        of the EAR).
                          --Tianjin Feiteng Information Technology.
                          Bldg 5 Xin'an Venture Plaza 1 Haiyuan M Rd Binhai New Area
                           Tianjin, 300450 China; and Building 5, Xin'an Chuangye Plaza,
                           No. 1, Haiyuan Middle Road, Binhai New District, Tianjin,
                           China; and 8th Floor, Quantum Core Tower, No. 27 Zhichun
                           Road, Haidian District, Beijing, China; and 10th Floor,
                           Office Building, Wangdefu Kaiyue International Building, No.
                           526 Sanyi Avenue, Kaifu District, Changsha City, Hunan
                           Province; China; and Room 101, No. 1012, Hulin Road, Huangpu
                           District, Guangzhou, China; and 100 Waihuanxi Rd, 3F-326
                           Science Pavilion, Panyu District, Guangdong, Guangzhou,
                           China.
                                                                                    * * * * * *
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Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 2021-07400 Filed 4-8-21; 8:45 am]
BILLING CODE 3510-33-P