Document ID: BIS-2012-0011-0001
Agency: bis
Document Type: Rule
Title: Addition of Certain Persons on the Entity List: Persons Acting Contrary to the National Security or Foreign Policy Interests of the United States
Posted Date: 2012-04-18T04:00Z

[Federal Register Volume 77, Number 75 (Wednesday, April 18, 2012)]
[Rules and Regulations]
[Pages 23114-23116]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-9374]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 744

[Docket No. 111027661-1743-01]
RIN 0694-AF43

Addition of Certain Persons on the Entity List: Addition of 
Persons Acting Contrary to the National Security or Foreign Policy 
Interests of the United States

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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SUMMARY: This rule amends the Export Administration Regulations (EAR) 
by adding three persons to the Entity List. The persons who are added 
to the Entity List 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 persons will be listed on the Entity List 
under the following two destinations: Canada and Jordan.
    The Entity List provides notice to the public that certain exports, 
reexports, and transfers (in-country) to entities identified on the 
Entity List require a license from the Bureau of Industry and Security 
and that availability of license exceptions in such transactions is 
limited.

DATES: Effective Date: This rule is effective April 18, 2012.

FOR FURTHER INFORMATION CONTACT: Karen Nies-Vogel, 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) provides notice to 
the public that certain exports, reexports, and transfers (in-country) 
to entities identified on the Entity List require a license from the 
Bureau of Industry and Security (BIS) and that the availability of 
license exceptions in such transactions is limited. Entities are placed 
on the Entity List on the basis of certain sections of part 744 
(Control Policy: End-User and End-Use Based) of the EAR.
    The ERC, composed of representatives of the Departments of Commerce 
(Chair), State, Defense, Energy and, when 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

    This rule implements the decision of the ERC to add three persons 
to the Entity List on the basis of Section 744.11 (License requirements 
that apply to entities acting contrary to the national security or 
foreign policy interests of the United States) of the EAR. The three 
entries added to the Entity List consist of two persons in Canada and 
one person in Jordan.
    The ERC reviewed Section 744.11(b) (Criteria for revising the 
Entity List) in making the determination to add these persons to the 
Entity List. Under that paragraph, persons for which there is 
reasonable cause to believe, based on specific and articulable facts, 
that the persons 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 persons may be added 
to the Entity List pursuant to Section 744.11. Paragraphs (b)(1)-(b)(5) 
of Section 744.11 include an illustrative list of activities that could 
be contrary

[[Page 23115]]

to the national security or foreign policy interests of the United 
States. The three persons are believed to have been involved in 
activities described under paragraphs (b)(1) and (b)(5) of Section 
744.11.
    The three persons in Canada and Jordan being added to the Entity 
List under this rule have been determined by the ERC to be involved in 
activities that could be contrary to the national security or foreign 
policy interests of the United States. Examples of the specific 
activities these persons have been involved with that are contrary to 
the national security or foreign policy interests of the United States 
pursuant to Section 744.11 include the violation of the license 
requirements imposed for exports and reexports to Syria as specified in 
Section 746.9 (formerly General Order No. 2 of Supplement No. 1 to part 
736 of the EAR), and violation of the embargo against Iran as specified 
in the Iran Transactions Regulations (31 CFR Part 560). Both Syria and 
Iran have been designated by the Secretary of State as countries that 
have repeatedly provided support for acts of international terrorism. 
The three persons that are being added to the Entity List are knowingly 
and willfully engaging in the transshipment of U.S.-origin equipment 
subject to the EAR, without the required Department of Commerce or 
Department of the Treasury, Office of Foreign Assets Control (OFAC) 
export licenses, for use in Syria and Iran.
    For the three persons added to the Entity List, the ERC specifies a 
license requirement for all items subject to the EAR and establishes a 
license application review policy of a presumption of denial. The 
license requirement applies to any transaction in which items are to be 
exported, reexported, or transferred (in-country) to such persons or in 
which such persons act as purchaser, intermediate consignee, ultimate 
consignee, or end-user. In addition, no license exceptions are 
available for exports, reexports, or transfers (in-country) to those 
persons being added to the Entity List.
    This final rule adds the following three persons under three 
entries to the Entity List:

Canada

    (1) Abou El-Khir Al Joundi, a.k.a., the following six aliases:

--Abou El Kheir Joundi;
--Abou Elkhir Al Joundi;
--Abou Joundi Et Kheir;
--Al Joundi;
--Al Jundi; and
--Elkheir Aljoundi Abou.

2706 Carre Denise Pelletier, Montreal, Quebec, H4R 2T5 Canada; and

    (2) Canada Lab Instruments, a.k.a., the following alias:

--SCO North America.

5995 Gouin Ouest, 212, Montreal, Quebec, H4J 2P8 Canada.

Jordan

    (1) Masound Est. for Medical and Scientific Supplies, 74 First 
Floor, Tla'a Al Ali Khali Al Salim Street, Amman, Jordon 11118.

Savings Clause

    Shipments of items removed from eligibility for a License Exception 
or export or reexport without a license (NLR) as a result of this 
regulatory action that were en route aboard a carrier to a port of 
export or reexport, on April 18, 2012, pursuant to actual orders for 
export or reexport to a foreign destination, may proceed to that 
destination under the previous eligibility for a License Exception or 
export or reexport without a license (NLR).
    Although the Export Administration Act expired on August 20, 2001, 
the President, through Executive Order 13222 of August 17, 2001, 3 CFR, 
2001 Comp., p. 783 (2002), as extended by the Notice of August 12, 
2011, 76 FR 50661 (August 16, 2011), has continued the Export 
Administration Regulations in effect under the International Emergency 
Economic Powers Act.

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 nor 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 the OMB under control numbers 0694-
0088, ``Multi-Purpose Application,'' which carries a burden hour 
estimate of 43.8 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. You may send 
comments regarding the collection of information associated with this 
rule, including suggestions for reducing the burden, to Jasmeet K. 
Seehra, Office of Management and Budget (OMB), by email to Jasmeet_K._Seehra@omb.eop.gov, or by fax to (202) 395-7285.
    3. This rule does not contain policies with Federalism implications 
as that term is defined in Executive Order 13132.
    4. 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 because 
this regulation involves a military or foreign affairs function of the 
United States. (See 5 U.S.C. 553(a)(1)). BIS implements this rule to 
protect U.S. national security or foreign policy interests by 
preventing items from being exported, reexported, or transferred (in 
country) to the persons being added to the Entity List. If this rule 
were delayed to allow for notice and comment and a delay in effective 
date, then entities being added to the Entity List by this action would 
continue to be able to receive items without a license and to conduct 
activities contrary to the national security or foreign policy 
interests of the United States. In addition, because these parties may 
receive notice of the U.S. Government's intention to place these 
entities on the Entity List once a final rule was published it would 
create an incentive for these persons to either accelerate receiving 
items subject to the EAR to conduct activities that are contrary to the 
national security or foreign policy interests of the United States and/
or to take steps to set up additional aliases, change addresses and 
take other steps to try to limit the impact of the listing on the 
Entity List 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

[[Page 23116]]

Regulatory Flexibility Act, 5 U.S.C. 601 et seq., are not applicable.

List of Subject 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 continues to read as 
follows:

    Authority:  50 U.S.C. app. 2401 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 12, 2011, 76 FR 50661 
(August 16, 2011); Notice of September 21, 2011, 76 FR 59001 
(September, 22, 2011); Notice of November 9, 2011, 76 FR 70319 
(November 10, 2011); Notice of January 19, 2012, 77 FR 3067 (January 
20, 2012).

0
2. Supplement No. 4 to part 744 is amended:
0
(a) By adding under Canada, in alphabetical order, two Canadian 
entities; and
0
(b) By adding, in alphabetical order, the destination of Jordan under 
the Country column and one Jordanian entity.
    The additions read as follows:

                                    Supplement No. 4 to Part 744--Entity List
----------------------------------------------------------------------------------------------------------------
                                                                           License review      Federal Register
       Country                   Entity            License requirement         policy              citation
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
CANADA...............  Abou El-Khir Al Joundi,    For all items         Presumption of       77 FR [INSERT FR
                        a.k.a., the following      subject to the EAR.   denial.              PAGE NUMBER]
                        six aliases:               (See Sec.   744.11                        4/18/12.
                                                   of the EAR).
                       --Abou El Kheir Joundi;
                       --Abou Elkhir Al Joundi;
                       --Abou Joundi Et Kheir;
                       --Al Joundi;
                       --Al Jundi; and
                       --Elkheir Aljoundi Abou.
                       2706 Carre Denise
                        Pelletier, Montreal,
                        Quebec, H4R 2T5 Canada.
 
                                                  * * * * * * *
                       Canada Lab Instruments,    For all items         Presumption of       77 FR [INSERT FR
                        a.k.a., the following      subject to the EAR.   denial.              PAGE NUMBER]
                        alias: SCO North America.  (See Sec.   744.11                        4/18/12.
                                                   of the EAR).
                       5995 Gouin Ouest, 212, Montreal, Quebec,
                        H4J 2P8 Canada.
 
                                                  * * * * * * *
JORDAN...............  Masound Est. for Medical   For all items         Presumption of       77 FR [INSERT FR
                        and Scientific             subject to the EAR.   denial.              PAGE NUMBER]
                        Supplies,74 First Floor,   (See Sec.   744.11                        4/18/12.
                        Tla'a Al Ali Khali Al      of the EAR).
                        Salim Street, Amman,
                        Jordon 11118.
 
                                                  * * * * * * *
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    Dated: April 12, 2012.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2012-9374 Filed 4-17-12; 8:45 am]
BILLING CODE 3510-33-P