Document ID: BIS-2015-0018-0001
Agency: bis
Document Type: Rule
Title: Addition of Certain Persons to the Entity List
Posted Date: 2015-04-23T04:00Z

[Federal Register Volume 80, Number 78 (Thursday, April 23, 2015)]
[Rules and Regulations]
[Pages 22638-22642]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-09442]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 744

[Docket No. 150318286-5286-01]
RIN 0694-AG58

Addition of Certain Persons to the Entity List

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 eight persons under nine entries to the Entity List. The 
eight 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 eight persons will 
be listed on the Entity List under the destinations of China, Iran, 
Taiwan, and Turkey. There are nine entries for the eight persons 
because one person is listed in two locations, resulting in an 
additional entry. Specifically, the additional entry covers one person 
that will be listed on the Entity List under the destination of Iran 
and Turkey.

DATE: Effective Date: This rule is effective April 23, 2015.

FOR FURTHER INFORMATION CONTACT: Chair, End-User Review Committee,

[[Page 22639]]

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 EAR) notifies 
the public about entities that have engaged in activities that could 
result in an increased risk of the diversion of exported, reexported or 
transferred (in-country) items to weapons of mass destruction (WMD) 
programs. Since its initial publication, grounds for inclusion on the 
Entity List have expanded to include activities sanctioned by the State 
Department and activities contrary to U.S. national security or foreign 
policy interests. Certain exports, reexports, and transfers (in-
country) to entities identified on the Entity List require licenses 
from BIS and are usually subject to a policy of denial. The 
availability of license exceptions in such transactions is very 
limited. The license review policy for each entity is identified in the 
license review policy column on the Entity List and the availability of 
license exceptions is noted in the Federal Register notices adding 
persons to the Entity List. BIS places entities on the Entity List 
based on certain sections of 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

    This rule implements the decision of the ERC to add eight persons 
under nine entries to the Entity List. These eight persons are being 
added on the basis of 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 nine entries added to 
the Entity List consist of one entry in China, four entries in Iran, 
two entries in Taiwan, and two entries in Turkey.
    The ERC reviewed Sec.  744.11(b) (Criteria for revising the Entity 
List) in making the determination to add these eight persons to the 
Entity List. Under that paragraph, persons for whom there is reasonable 
cause to believe, based on specific and articulable facts, 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. Paragraphs 
(b)(1) through (b)(5) of Sec.  744.11 include an illustrative list of 
activities that could be contrary to the national security or foreign 
policy interests of the United States.
    Pursuant to Sec.  744.11 of the EAR, the ERC determined that 
Shandong Sheenrun Optics & Electronics Co., Ltd. be added to the Entity 
List under the destination of China for actions contrary to the 
national security or foreign policy interests of the United States. 
Specifically, in April 2014, Shandong Sheenrun Optics & Electronics 
Co., Ltd. and related parties were indicted in the U.S. District Court 
for the District of Columbia for transshipping U.S.-origin items to 
Iran through China from 2009 through 2012 in violation of the Office of 
Foreign Assets Control's Iranian Transactions and Sanctions Regulations 
(ITSR) and the EAR.
    In addition, the ERC determined the following seven persons being 
added to the Entity List under the destinations of Iran, Taiwan, and 
Turkey have been involved in activities contrary to the national 
security and foreign policy interests of the United States, and meet 
the criteria listed in Sec.  744.11(b). Specifically, Faratel Company, 
Arash Servatian, Elaheh Siahpoush, Hosoda Taiwan Limited, Arthur Shyu, 
Golsad Istanbul Trading (a.k.a. Golsad Import-Export), and Abbas 
Goldoozan have been involved in actions that could enhance the military 
capability of or the ability to support terrorism of governments that 
have been designated by the Secretary of State as having repeatedly 
provided support for acts of international terrorism. The seven persons 
described in this paragraph being added to the Entity List were 
identified during a U.S. Government investigation of a network of 
companies and individuals involved in the procurement and delivery of 
items subject to the EAR and the ITSR to Iran, in violation of the EAR 
and the ITSR. These persons undertook procurement and delivery 
activities, activities to conceal the procurement and delivery 
activities, activities to circumvent the EAR and the ITSR license 
requirements, and/or activities to facilitate the procurement of export 
restricted items for Iranian military-related and other governmental-
related end uses.
    Pursuant to Sec.  744.11(b)(5) of the EAR, the ERC determined that 
the conduct of these eight persons raises sufficient concern that prior 
review of exports, reexports, or transfers (in-country) of items 
subject to the EAR involving these persons, and the possible imposition 
of license conditions or license denials on shipments to the persons, 
will enhance BIS's ability to prevent violations of the EAR.
    For the eight persons added to the Entity List, the ERC specified a 
license requirement for all items subject to the EAR and a license 
review policy of presumption of denial. The license requirements apply 
to any transaction in which items are to be exported, reexported, or 
transferred (in-country) to any of the 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 the persons being added to the 
Entity List in this rule.
    This final rule adds the following eight persons under nine entries 
to the Entity List:
China
    (1) Shandong Sheenrun Optics & Electronics Co., Ltd., a.k.a., the 
following two aliases:

--China Sheenrun Optics and Electronics Co. Ltd.; and
--Jinan Sheenrun Electronics Company Ltd.

Room A312, Tower F1 Qilu Software Park, Hi-tech Zone, Jinan, China 
250101.
Iran
    (1) Abbas Goldoozan, No. 86 Negin Tower, Farmaniyeh St., 1937944633 
Tehran, Iran (See also alternate address under Turkey);
    (2) Arash Servatian, 12 Kandovan Alley Enghelab Ave., Opp. Villa 
(Ostad Nejatollahi) 1131834914 Tehran, Iran;
    (3) Elaheh Siahpoush, 12 Kandovan Alley Enghelab Ave., Opp. Villa 
(Ostad Nejatollahi) 1131834914 Tehran, Iran; and
    (4) Faratel Company, 12 Kandovan Alley Enghelab Ave., Opp. Villa 
(Ostad Nejatollahi) 1131834914 Tehran, Iran.
Taiwan
    (1) Arthur Shyu, 3F-1 No. 52, SEC 2, Chung Shan N. Road, Taipei 104 
Taiwan; and
    (2) Hosoda Taiwan Limited, 3F-1 No. 52, SEC 2, Chung Shan N. Road, 
Taipei 104 Taiwan.

[[Page 22640]]

Turkey
    (1) Abbas Goldoozan, Kimya IC VE Dis Ticaret Ltd., 2nd Floor, No. 
2, Istanbul, Turkey; and Yesil Tulumba A, Istanbul, Turkey 34134 (See 
also alternate address under Iran); and
    (2) Golsad Istanbul Trading, a.k.a., the following one alias:

--Golsad Import-Export.

Kimya IC VE Dis Ticaret Ltd., 2nd Floor, No. 2, Istanbul, Turkey; and 
Yesil Tulumba A, Istanbul, Turkey 34134.

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 23, 2015, 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).

Export Administration Act

    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 amended by Executive Order 13637 of March 
8, 2013, 78 FR 16129 (March 13, 2013) and as extended by the Notice of 
August 7, 2014, 79 FR 46959 (August 11, 2014), has continued the Export 
Administration Regulations in effect under the International Emergency 
Economic Powers Act. BIS continues to carry out the provisions of the 
Export Administration Act, as appropriate and to the extent permitted 
by law, pursuant to Executive Order 13222 as amended by Executive Order 
13637.

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 OMB under control number 0694-0088, 
Simplified Network Application Processing System, which includes, among 
other things, license applications and carries a burden 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. For the eight persons added under nine entries to the Entity 
List in this final rule, 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 if a proposed rule is 
published, doing so 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, or to take steps to set up additional 
aliases, change addresses, and other measures 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 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 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 7, 2014, 79 FR 46959 
(August 11, 2014); Notice of September 17, 2014, 79 FR 56475 
(September 19, 2014); Notice of November 7, 2014, 79 FR 67035 
(November 12, 2014); Notice of January 21, 2015, 80 FR 3461 (January 
22, 2015).

0
2. Supplement No. 4 to part 744 is amended:
0
a. By adding under China, in alphabetical order, one Chinese entity;
0
b. By adding under Iran, in alphabetical order, four Iranian entities;
0
c. By adding under Taiwan, in alphabetical order, two Taiwanese 
entities; and
0
d. By adding under Turkey, in alphabetical order, two Turkish entities.
    The additions read as follows:

Supplement No. 4 to Part 744--Entity List

[[Page 22641]]

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                                                                              License review    Federal Register
        Country                     Entity             License requirement        policy            citation
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
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CHINA, PEOPLE'S                                                * * * * * *
 REPUBLIC OF.
                         Shandong Sheenrun Optics &    For all items        Presumption of     80 FR [INSERT FR
                          Electronics Co., Ltd.,        subject to the       denial..           PAGE NUMBER]
                          a.k.a., the following two     EAR. (See Sec.                          April 23, 2015.
                          aliases:                      744.11 of the
                         --China Sheenrun Optics and    EAR).
                          Electronics Co. Ltd.; and
                         --Jinan Sheenrun Electronics
                          Company Ltd.
                         Room A312, Tower F1 Qilu
                          Software Park, Hi-tech
                          Zone, Jinan, China 250101.
                                                               * * * * * *
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
IRAN...................                                        * * * * * *
                         Abbas Goldoozan, No. 86       For all items        Presumption of     80 FR [INSERT FR
                          Negin Tower, Farmaniyeh       subject to the       denial..           PAGE NUMBER]
                          St., 1937944633 Tehran,       EAR. (See Sec.                          April 23, 2015.
                          Iran (See also alternate      744.11 of the
                          address under Turkey).        EAR).
                                                               * * * * * *
                         Arash Servatian, 12 Kandovan  For all items        Presumption of     80 FR [INSERT FR
                          Alley Enghelab Ave., Opp.     subject to the       denial..           PAGE NUMBER]
                          Villa (Ostad Nejatollahi)     EAR. (See Sec.                          April 23, 2015.
                          1131834914 Tehran, Iran.      744.11 of the
                                                        EAR).
                                                               * * * * * *
                         Elaheh Siahpoush, 12          For all items        Presumption of     80 FR [INSERT FR
                          Kandovan Alley Enghelab       subject to the       denial..           PAGE NUMBER]
                          Ave., Opp. Villa (Ostad       EAR. (See Sec.                          April 23, 2015.
                          Nejatollahi) 1131834914       744.11 of the
                          Tehran, Iran.                 EAR).
                                                               * * * * * *
                         Faratel Company, 12 Kandovan  For all items        Presumption of     80 FR [INSERT FR
                          Alley Enghelab Ave., Opp.     subject to the       denial..           PAGE NUMBER]
                          Villa (Ostad Nejatollahi)     EAR. (See Sec.                          April 23, 2015.
                          1131834914 Tehran, Iran.      744.11 of the
                                                        EAR).
                                                               * * * * * *
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
TAIWAN.................  Arthur Shyu, 3F-1 No. 52,     For all items        Presumption of     80 FR [INSERT FR
                          SEC 2, Chung Shan N. Road,    subject to the       denial..           PAGE NUMBER]
                          Taipei 104 Taiwan.            EAR. (See Sec.                          April 23, 2015.
                                                        744.11 of the
                                                        EAR).
                         Hosoda Taiwan Limited, 3F-1   For all items        Presumption of     80 FR [INSERT FR
                          No. 52, SEC 2, Chung Shan     subject to the       denial..           PAGE NUMBER]
                          N. Road, Taipei 104 Taiwan.   EAR. (See Sec.                          April 23, 2015.
                                                        744.11 of the
                                                        EAR).
                                                               * * * * * *
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
TURKEY.................                                        * * * * * *
                         Abbas Goldoozan, Kimya IC VE  For all items        Presumption of     80 FR [INSERT FR
                          Dis Ticaret Ltd., 2nd         subject to the       denial..           PAGE NUMBER]
                          Floor, No. 2, Istanbul,       EAR. (See Sec.                          April 23, 2015.
                          Turkey;                       744.11 of the
                         and                            EAR).
                         Yesil Tulumba A, Istanbul,
                          Turkey 34134 (See also
                          alternate address under
                          Iran).
                                                               * * * * * *
                         Golsad Istanbul Trading,      For all items        Presumption of     80 FR [INSERT FR
                          a.k.a., the following one     subject to the       denial..           PAGE NUMBER]
                          alias:                        EAR. (See Sec.                          April 23, 2015.
                         --Golsad Import-Export.        744.11 of the
                                                        EAR).

[[Page 22642]]

 
                         Kimya IC VE Dis Ticaret
                          Ltd., 2nd Floor, No. 2,
                          Istanbul, Turkey;
                         and
                         Yesil Tulumba A, Istanbul,
                          Turkey 34134.
                                                               * * * * * *
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
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    Dated: April 17, 2015.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2015-09442 Filed 4-22-15; 8:45 am]
 BILLING CODE 3510-33-P