Document ID: BIS-2012-0046-0001
Agency: bis
Document Type: Rule
Title: Addition of Certain Persons to the Entity List
Posted Date: 2012-11-29T05:00Z

[Federal Register Volume 77, Number 230 (Thursday, November 29, 2012)]
[Rules and Regulations]
[Pages 71097-71099]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-28919]

[[Page 71097]]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 744

[Docket No. 121009527-2527-01]
RIN 0694-AF80

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 two persons to the Entity List and revising one existing 
entry. 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 one destination. The 
two entries added to the Entity List consist of two entries in 
Pakistan. This rule is also revising one existing entry in the U.A.E. 
to clarify the scope of the entry by providing an additional alias and 
alternate address for this listed person.
    The Entity List notifies the public that certain exports, 
reexports, and transfers (in-country) of items subject to the EAR to 
entities identified on the Entity List require licenses from the Bureau 
of Industry and Security (BIS) and that in most instances license 
exceptions are unavailable for such transactions. BIS usually applies a 
license review policy of denial because it considers such entities to 
present significant risks of diversion to weapons of mass destruction 
(WMD) programs, terrorism, or other activities that are contrary to 
U.S. national security or foreign policy interests. By publicly listing 
such entities, BIS seeks to assist legitimate exporters, reexporters 
and transferors, and other parties participating in transactions that 
are subject to the EAR by providing them with information to detect and 
avoid high risk transactions with those entities, which in most cases 
means any transaction that involves items that are subject to the EAR.

DATES: Effective Date: This rule is effective November 29, 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) 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, including terrorism and export control violations involving 
abuse of human rights. 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) 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 two persons to 
the Entity List 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 two entries 
added to the Entity List consist of two entries in Pakistan.
    The ERC reviewed Sec.  744.11(b) (Criteria for revising the Entity 
List) in making the determination to add these two persons 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 and those 
acting on behalf of such persons may be added to the Entity List 
pursuant to Sec.  744.11. Paragraphs (b)(1)-(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.
    The two persons being added under Pakistan, Mohammad Azam and Azam 
Electronics, are believed to have been involved in activities described 
under paragraphs (b)(1) and (b)(2) of Sec.  744.11. Mohammad Azam owns 
and directs Azam Electronics in Chaman, Pakistan. There are entities 
operating in Chaman, Pakistan, that support violent extremist 
organizations that use Improvised Explosive Devices (IEDs) in Pakistan 
and Afghanistan to further their terrorist-related objectives. 
Electronic components sourced from Azam Electronics are used as 
triggering devices in IEDs that are being used in Afghanistan and 
Pakistan.
    For the two persons added to the Entity List and the one modified 
entry described below, the ERC specified a license requirement for all 
items subject to the EAR, and established 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 two persons to the Entity List:

Pakistan

(1) Azam Electronics, a.k.a., the following two aliases:
    --Mohammad Azam Electronics, and
    --Akram Dish TV Satellite Center, Chaman, Killa, Abdullah District, 
Baluchistan Province, Pakistan; and
(2) Mohammad Azam, a.k.a:
    --Mohammad Akram, Chaman, Killa, Abdullah District, Baluchistan 
Province, Pakistan.

Modification to the Entity List

    On the basis of a decision made by the ERC, in addition to the two 
Pakistani additions described above, this rule amends one entry 
currently on the Entity List under the U.A.E. The amendments provide 
one additional alias and one alternate address for this listed person, 
as follows:

[[Page 71098]]

United Arab Emirates

(1) Infotec, a.k.a., the following two aliases:
    --Info Tech, and
    --I. Tec Trading FZE, P.O Box 10559, Ras Al Khaimah, U.A.E.; and 
Ras Al Khaimah Free Trade Zone (RAKFTZ), U.A.E.

Revision of Authority Citation for Part 744

    On November 14, 1994, by Executive Order 12938, the President 
declared a national emergency with respect to the unusual and 
extraordinary threat to the national security, foreign policy, and 
economy of the United States posed by the proliferation of nuclear, 
biological, and chemical weapons (weapons of mass destruction) and the 
means of delivering such weapons. The authority for authority for parts 
730, 734, 736, 742, 744 and 745 of the Export Administration 
Regulations (15 CFR parts 730-774) rests in part on that executive 
order and the annual notices continuing the international emergency 
declared therein. This rule revises the authority citations paragraph 
to part 744 of the EAR (15 CFR part 730) to include citations to the 
President's Notice of November 1, 2012--Continuation of the National 
Emergency With Respect to Weapons of Mass Destruction (77 FR 66513, 
November 5, 2012), which is the most recent such annual notice.

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 November 29, 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 15, 
2012, 77 FR 49699 (August 16, 2012), 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.

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 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 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. 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 January 19, 2012, 77 FR 3067 
(January 20, 2012) Notice of August 15, 2012, 77 FR 49699 (August 
16, 2012); Notice of September 11, 2012, 77 FR 56519 (September, 12, 
2012); Notice of November 1, 2012, 77 FR 66513 (November 5, 2012).

0
2. Supplement No. 4 to part 744 is amended:
0
a. By adding under Pakistan, in alphabetical order, two Pakistani 
entities; and

[[Page 71099]]

0
b. By revising under the United Arab Emirates, the Emirati entity, 
Infotec, a.k.a., Info Tech, Ras Al Khaimah Free Trade Zone (RAKFTZ), 
U.A.E.
    The additions and revisions read as follows:

Supplement No. 4 to Part 744--Entity List

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                                                               License         License review   Federal Register
       Country                      Entity                   requirement           policy            citation
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
PAKISTAN
 
                                                  * * * * * * *
                      Azam Electronics, a.k.a., the       For all items      Presumption of     77 FR [INSERT FR
                       following two aliases:              subject to the     denial.            PAGE NUMBER]
                      --Mohammad Azam Electronics, and     EAR. (See Sec.                        11/30/12.
                      --Akram Dish TV Satellite Center,    744.11 of the
                      Chaman, Killa, Abdullah District,    EAR)
                       Baluchistan Province, Pakistan
 
                                                  * * * * * * *
                      Mohammad Azam, a.k.a,               For all items      Presumption of     77 FR [INSERT FR
                      --Mohammad Akram,                    subject to the     denial.            PAGE NUMBER]
                      Chaman, Killa, Abdullah District,    EAR. (See Sec.                        11/30/12.
                       Baluchistan Province, Pakistan      744.11 of the
                                                           EAR)
 
                                                  * * * * * * *
UNITED ARAB EMIRATES
 
                                                  * * * * * * *
                      Infotec, a.k.a., the following two  For all items      Presumption of     76 FR 78146, 12/
                       aliases:                            subject to the     denial.            16/11.
                      --Info Tech, and                     EAR. (See Sec.                       77 FR [INSERT FR
                      --I. Tec Trading FZE,                744.11 of the                         PAGE NUMBER]
                      P.O. Box 10559, Ras Al Khaimah,      EAR)                                  11/30/12.
                       U.A.E.; and Ras Al Khaimah Free
                       Trade Zone (RAKFTZ), U.A.E.
 
                                                  * * * * * * *
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    Dated: November 26, 2012.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2012-28919 Filed 11-28-12; 8:45 am]
BILLING CODE 3510-33-P