Document ID: BIS-2021-0027-0001
Agency: bis
Document Type: Rule
Title: Addition of Certain Entities to the Entity List
Posted Date: 2021-06-24T04:00Z

[Federal Register Volume 86, Number 119 (Thursday, June 24, 2021)]
[Rules and Regulations]
[Pages 33119-33122]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-13395]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 744

[Docket No. 210617-0134]
RIN 0694-AI56

Addition of Certain Entities to the Entity List

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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SUMMARY: This final rule amends the Export Administration Regulations 
(EAR) by adding five entities to the Entity List. These five entities 
have been determined by the United States Government to be acting 
contrary to the foreign policy interests of the United States and will 
be listed on the Entity List under the destination of the People's 
Republic of China (China).

DATE: This rule is effective June 24, 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, 
Email: ERC@bis.doc.gov.

SUPPLEMENTARY INFORMATION:

Background

    The Entity List (supplement no. 4 to part 744 of the EAR) 
identifies entities reasonably believed to be involved in, or to 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 Export Administration Regulations (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 
document 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 
makes 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 five entities 
to the Entity List. The five entities are being added based on Sec.  
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 five entities are located in China.
    The ERC reviewed and applied Sec.  744.11(b) (Criteria for revising 
the Entity List) in making the determination to add these five entities 
to the Entity List. Under that paragraph, persons for whom there is 
reasonable cause to believe, based on specific and articulable facts, 
that they 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, 
along with those acting on behalf of such persons, may be added to the 
Entity List. Paragraphs (b)(1) through (b)(5) of Sec.  744.11 provide 
an illustrative list of activities that could be contrary to the 
national security or foreign policy interests of the United States.
    For each of the five entities described below, the ERC made the 
requisite determination under the standard set forth in Sec.  
744.11(b). Specifically, the ERC determined that the subject entities 
are engaging in or enabling activities contrary to U.S. foreign policy 
interests. These entities have been implicated in human rights 
violations and abuses in the implementation of China's campaign of 
repression, mass arbitrary detention, forced labor and high-technology 
surveillance against Uyghurs, Kazakhs, and other members of Muslim 
minority groups in the Xinjiang Uyghur Autonomous Region. Specifically, 
the ERC determined that Xinjiang GCL New Energy Material Technology, 
Co. Ltd; Xinjiang Daqo New Energy, Co. Ltd; Xinjiang East Hope 
Nonferrous Metals Co. Ltd.; Hoshine Silicon Industry (Shanshan) Co., 
Ltd.; and Xinjiang Production and Construction Corps are engaging in 
activities contrary to the foreign policy interests of the United 
States through participating in the practice of, accepting, or 
utilizing forced labor.

[[Page 33120]]

    Pursuant to Sec.  744.11(b) of the EAR, the ERC has determined that 
the conduct of these five entities raises sufficient concern that prior 
review of exports, reexports or transfers (in-country) of all items 
subject to the EAR involving these entities, and the possible 
imposition of license conditions or license denials on shipments to 
these entities, will enhance BIS's ability to prevent items subject to 
the EAR from being used in activities contrary to the foreign policy 
interests of the United States.
    For the five entities identified above that are being added to the 
Entity List, BIS imposes a license requirement for all items subject to 
the EAR and a license review policy of case-by-case review for Export 
Control Classification Numbers (ECCNs) 1A004.c, 1A004.d, 1A995, 
1A999.a, 1D003, 2A983, 2D983, and 2E983. A policy of case-by-case 
review also applies to items designated as EAR99 that are described in 
the Note to ECCN 1A995, specifically, items for protection against 
chemical or biological agents that are consumer goods, packaged for 
retail sale or personal use, or medical products. Additionally, in 
light of the current global pandemic, BIS has adopted a policy of case-
by-case review for items subject to the EAR that are necessary to 
detect, identify and treat infectious disease. BIS has adopted a 
license review policy of presumption of denial for all other items 
subject to the EAR. In addition, no license exceptions are available 
for exports, reexports, or transfers (in-country) to the entities being 
added to the Entity List in this rule. The acronym ``a.k.a.'' or `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.
    This final rule adds the following five entities to the Entity 
List:

People's Republic of China

     Hoshine Silicon Industry (Shanshan) Co., Ltd.;
     Xinjiang Daqo New Energy, Co. Ltd;
     Xinjiang East Hope Nonferrous Metals Co. Ltd.;
     Xinjiang GCL New Energy Material Technology, Co. Ltd; and
     Xinjiang Production and Construction Corps.

Savings Clause

    Shipments of items removed from eligibility for a License Exception 
or for 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, reexport, or transfer (in-country) on June 24, 2021, pursuant 
to actual orders for export, reexport, or transfer (in-country) 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).

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. 
Sections 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

    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.
    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 
29.6 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.
    This rule does not contain policies with federalism implications as 
that term is defined in Executive Order 13132.
    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.
    Because a notice of proposed rulemaking and an opportunity for 
public comment are not required 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 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 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 ``Hoshine 
Silicon Industry (Shanshan) Co., Ltd.'', ``Xinjiang Daqo New Energy, 
Co. Ltd'', ``Xinjiang East Hope Nonferrous Metals Co. Ltd.'', 
``Xinjiang GCL New Energy Material Technology, Co. Ltd'', and 
``Xinjiang Production and Construction Corps''.
    The additions read as follows:

Supplement No. 4 to Part 744--Entity List

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[[Page 33121]]

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                                                                             License  review    Federal Register
        Country                     Entity             License requirement        policy            citation
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
CHINA, PEOPLE'S                                                * * * * * *
 REPUBLIC OF.
                         Hoshine Silicon Industry      For all items        Case-by-case       86 FR [INSERT FR
                          (Shanshan) Co., Ltd.,         subject to the       review for ECCNs   PAGE NUMBER] 6/
                          a.k.a., the following one     EAR. (See Sec.       1A004.c,           24/2021.
                          alias:                        744.11 of the        1A004.d, 1A995,
                         --Hesheng Silicon Industry     EAR).                1A999.a, 1D003,
                          (Shanshan) Co., Ltd.                               2A983, 2D983,
                          Xinjiang East: West of                             and 2E983, and
                          Kekeya Road, Stone                                 for EAR99 items
                          Industrial Park, Shanshan                          described in the
                          County, Turpan City,                               Note to ECCN
                          Xinjiang (Hesheng                                  1A995; case-by-
                          Industrial Park), China.                           case review for
                                                                             items necessary
                                                                             to detect,
                                                                             identify and
                                                                             treat infectious
                                                                             disease; and
                                                                             presumption of
                                                                             denial for all
                                                                             other items
                                                                             subject to the
                                                                             EAR.
                                                               * * * * * *
                         Xinjiang Daqo New Energy,     For all items        Case-by-case       86 FR [INSERT FR
                          Co. Ltd., a.k.a., the         subject to the       review for ECCNs   PAGE NUMBER] 6/
                          following three aliases:      EAR. (See Sec.       1A004.c,           24/2021.
                         --Xinjiang Great New Energy    744.11 of the        1A004.d, 1A995,
                          Co., Ltd.;                    EAR).                1A999.a, 1D003,
                         --Xinjiang Daxin Energy Co.,                        2A983, 2D983,
                          Ltd.; and                                          and 2E983, and
                         --Xinjiang Daqin Energy Co.,                        for EAR99 items
                          Ltd.                                               described in the
                         Shihezi Development Zone                            Note to ECCN
                          Chemical New Material                              1A995; case-by-
                          Industrial Park; and No.                           case review for
                          16, Weiliu Road, New                               items necessary
                          Chemical Material                                  to detect,
                          Industrial Park, Shihezi                           identify and
                          Economic Development Zone,                         treat infectious
                          Xinjiang China.                                    disease; and
                                                                             presumption of
                                                                             denial for all
                                                                             other items
                                                                             subject to the
                                                                             EAR.
                         Xinjiang East Hope            For all items        Case-by-case       86 FR [INSERT FR
                          Nonferrous Metals Co. Ltd.,   subject to the       review for ECCNs   PAGE NUMBER] 6/
                          a.k.a., the following one     EAR. (See Sec.       1A004.c,           24/2021.
                          alias:                        744.11 of the        1A004.d, 1A995,
                         --Xinjiang Nonferrous.         EAR).                1A999.a, 1D003,
                         Wucaiwan Industrial Park,                           2A983, 2D983,
                          Zhundong Economic and                              and 2E983, and
                          Technological Development                          for EAR99 items
                          Zone, Changji Prefecture,                          described in the
                          Xinjiang (Cainan                                   Note to ECCN
                          Community); and Jimsar                             1A995; case-by-
                          County, Changji Hui                                case review for
                          Autonomous Prefecture,                             items necessary
                          Xinjiang Uygur Autonomous                          to detect,
                          Region, Wucaiwan Coal,                             identify and
                          Electricity and Coal                               treat infectious
                          Chemical Base, China.                              disease; and
                                                                             presumption of
                                                                             denial for all
                                                                             other items
                                                                             subject to the
                                                                             EAR.
                         Xinjiang GCL New Energy       For all items        Case-by-case       86 FR [INSERT FR
                          Material Technology, Co.      subject to the       review for ECCNs   PAGE NUMBER] 6/
                          Ltd., a.k.a., the following   EAR. (See Sec.       1A004.c,           24/2021.
                          one alias:                    744.11 of the        1A004.d, 1A995,
                         --Xinjiang GCL New Energy      EAR).                1A999.a, 1D003,
                          Materials Technology Co.,                          2A983, 2D983,
                          Ltd.                                               and 2E983, and
                         East Section of Hengsi Road,                        for EAR99 items
                          Quanbei Industrial Zone,                           described in the
                          Hongsha, Zhundong Economic                         Note to ECCN
                          and Technological                                  1A995; case-by-
                          Development Zone, Changji                          case review for
                          Prefecture, Xinjiang                               items necessary
                          (Jijihu Community); and                            to detect,
                          East Part, the 4th                                 identify and
                          Horizontal Road, North                             treat infectious
                          Hongshaquan Industrial                             disease; and
                          park, Zhundong Economic and                        presumption of
                          Technological Development                          denial for all
                          Zone, Changji, Xinjiang,                           other items
                          China.                                             subject to the
                                                                             EAR.
                                                               * * * * * *
                         Xinjiang Production and       For all items        Case-by-case       86 FR [INSERT FR
                          Construction Corps (XPCC),    subject to the       review for ECCNs   PAGE NUMBER] 6/
                          a.k.a., the following three   EAR. (See Sec.       1A004.c,           24/2021.
                          aliases:                      744.11 of the        1A004.d, 1A995,
                         --XPCC;                        EAR).                1A999.a, 1D003,
                         --Xinjiang Corps; and                               2A983, 2D983,
                         --Bingtuan.                                         and 2E983, and
                         Urumqi, Xinjiang Uyghur                             for EAR99 items
                          Autonomous Region, China.                          described in the
                                                                             Note to ECCN
                                                                             1A995; case-by-
                                                                             case review for
                                                                             items necessary
                                                                             to detect,
                                                                             identify and
                                                                             treat infectious
                                                                             disease; and
                                                                             presumption of
                                                                             denial for all
                                                                             other items
                                                                             subject to the
                                                                             EAR.

[[Page 33122]]

 
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Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 2021-13395 Filed 6-23-21; 8:45 am]
BILLING CODE 3510-33-P