Document ID: BIS-2011-0026-0001
Agency: bis
Document Type: Rule
Title: 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
Posted Date: 2011-07-25T04:00Z

[Federal Register Volume 76, Number 142 (Monday, July 25, 2011)]
[Rules and Regulations]
[Pages 44259-44262]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-18718]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 744

[Docket No. 110502273-1368-01]

RIN 0694-AF21

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 six persons to the Entity List (Supplement No. 4 to Part 744) 

on the basis of section 744.11 of the EAR. 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 under the following two 

destinations on the Entity List: Hong Kong and Lebanon.

    The Entity List provides notice to the public that certain exports, 

reexports, and transfers (in-country) to parties identified on the 

Entity List require a license from the Bureau of Industry and Security 

(BIS) and that availability of license exceptions in such transactions 

is limited.

DATES: Effective Date: This rule is effective July 25, 2011.

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, E-mail: 

ERC@bis.doc.gov.

SUPPLEMENTARY INFORMATION: 

Background

    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 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 End-User Review Committee (ERC), composed of representatives of 

the Departments of Commerce (Chair), State, Defense, Energy and, when 

appropriate,Treasury, makes all decisions regarding additions to, 

removals from, or other changes 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

    This rule implements the decision of the ERC to add six 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 six 

entries added to the Entity List consist of two persons in Hong Kong 

and four persons in Lebanon.

    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

[[Page 44260]]

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) include an illustrative list of activities 

that could be contrary to the national security or foreign policy 

interests of the United States.

    Pursuant to 15 CFR 744.11(b)(2) and 15 CFR 744.11(b)(5), the 

persons are being added to the Entity List based on evidence that they 

have engaged in actions that could enhance the military capability of 

Iran, a country designated by the U.S. Secretary of State as having 

repeatedly provided support for acts of international terrorism. These 

persons are also added because their overall conduct poses a risk of 

ongoing EAR violations. The six companies are added based on evidence 

that they purchased electronic components from U.S. firms and then 

resold the components to companies in Iran without the required U.S. 

export license. The same components were later found in Iraq in 

unexploded improvised explosive devices.

Additions to the Entity List

    This rule adds six persons to the Entity List on the basis of 

section 744.11 of the EAR. For all of the six 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. Specifically, this rule adds the following six persons 

to the Entity List:

Hong Kong

    (1) Biznest, LTD, Room 927 9/F Far East Consortium Building, 121 

Des Voeux Road C, Central District, Hong Kong; and

    (2) Yeraz, LTD, Room 927 9/F Far East Consortium Building, 121 Des 

Voeux Road C, Central District, Hong Kong.

Lebanon

    (1) Micro Power Engineering Group, a.k.a MPEG, Anwar Street, Abou 

Karam Building, 1st Floor, Jdeidet El Metn, Beirut, Lebanon;

    (2) Narinco Micro Sarl, Dedeyan Center, Dora Boulevard Street, 

Bauchrieh Metn, Lebanon;

    (3) Serop Elmayan and Sons Lebanon, Ground Floor, Aramouni 

Building, Property Number 1731, Fleuve Street, Mar Mekhael Sector, 

Beirut, Lebanon; and

    (4) Serpico Offshore Sarl, Ground Floor, Aramouni Building, 

Property Number 1731, Fleuve Street, Mar Mekhael Sector, Beirut, 

Lebanon.

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 on dock for loading, on lighter, laden 

aboard an exporting or reexporting carrier, or en route aboard a 

carrier to a port of export or reexport, on July 25, 2011, 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) so long 

as they are exported or reexported before August 9, 2011. Any such 

items not actually exported or reexported before midnight, on August 9, 

2011, require a license in accordance with the EAR.

    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, 

2010, 75 FR 50681 (August 16, 2010), 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 Paperwork Reduction Act and Office of 

Management and Budget control number 0694-0088 are expected to increase 

slightly 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 e-mail 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

[[Page 44261]]

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.

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. 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, 2010, 75 FR 50681 

(August 16, 2010); Notice of November 4, 2010, 75 FR 68673 (November 

8, 2010): Notice of January 13, 2011, 76 FR 3009, January 18, 2011.

0

2. Supplement No. 4 to part 744 is amended:

0

a. By adding under Hong Kong, in alphabetical order, two Hong Kong 

entities; and

0

b. By adding under, Lebanon, in alphabetical order, four Lebanese 

entities.

    The additions 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

----------------------------------------------------------------------------------------------------------------

 

                                                  * * * * * * *

HONG KONG

 

                                                  * * * * * * *

                              Biznest, LTD, Room   For all items        Presumption of       76 FR [INSERT FR

                               927 9/F Far East     subject to the       denial.              PAGE NUMBER], 7/25/

                               Consortium           EAR. (See Sec.                            11.

                               Building, 121 Des    744.11 of the EAR).

                               Voeux Road C,

                               Central District,

                               Hong Kong.

 

                                                  * * * * * * *

                              Yeraz, LTD, Room     For all items        Presumption of       76 FR [INSERT FR

                               927 9/F Far East     subject to the       denial.              PAGE NUMBER], 7/25/

                               Consortium           EAR. (See Sec.                            11.

                               Building, 121 Des    744.11 of the EAR).

                               Voeux Road C,

                               Central District,

                               Hong Kong.

 

                                                  * * * * * * *

LEBANON

 

                                                  * * * * * * *

                              Micro Power          For all items        Presumption of       76 FR [INSERT FR

                               Engineering Group,   subject to the       denial.              PAGE NUMBER], 7/25/

                               a.k.a., MPEG,        EAR. (See Sec.                            11.

                               Anwar Street, Abou   744.11 of the EAR).

                               Karam Building,

                               1st Floor, Jdeidet

                               El Metn, Beirut,

                               Lebanon.

 

                                                  * * * * * * *

                              Narinco Micro Sarl,  For all items        Presumption of       76 FR [INSERT FR

                               Dedeyan Center,      subject to the       denial.              PAGE NUMBER], 7/25/

                               Dora Boulevard       EAR. (See Sec.                            11.

                               Street, Bauchrieh    744.11 of the EAR).

                               Metn. Lebanon.

                              Serop Elmayan and    For all items        Presumption of       76 FR [INSERT FR

                               Sons Lebanon,        subject to the       denial.              PAGE NUMBER], 7/25/

                               Ground Floor,        EAR. (See Sec.                            11.

                               Aramouni Building,   744.11 of the EAR).

                               Property Number

                               1731, Fleuve

                               Street, Mar

                               Mekhael Sector,

                               Beirut, Lebanon.

                              Serpico Offshore     For all items        Presumption of       76 FR [INSERT FR

                               Sarl, Ground         subject to the       denial.              PAGE NUMBER], 7/25/

                               Floor, Aramouni      EAR. (See Sec.                            11.

                               Building, Property   744.11 of the EAR).

                               Number 1731 Fleuve

                               Street, Mar

                               Mekhael Sector,

                               Beirut, Lebanon.

 

                                                  * * * * * * *

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[[Page 44262]]

    Dated: July 20, 2011.

Kevin J. Wolf,

Assistant Secretary for Export Administration.

[FR Doc. 2011-18718 Filed 7-22-11; 8:45 am]

BILLING CODE 3510-33-P