Document ID: BIS-2023-0031-0001
Agency: bis
Document Type: Rule
Title: Revisions to the Unverified List
Posted Date: 2023-08-22T04:00Z

[Federal Register Volume 88, Number 161 (Tuesday, August 22, 2023)]
[Rules and Regulations]
[Pages 57002-57004]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-18125]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 744

[Docket No. 230810-0191]
RIN 0694-AJ33

Revisions to the Unverified List

AGENCY: Bureau of Industry and Security, Department of Commerce.

ACTION: Final rule.

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SUMMARY: The Bureau of Industry and Security (BIS) is amending the 
Export Administration Regulations (EAR) by removing a total of 35 
persons from the Unverified List (UVL), including 27 under the 
destination of China, one under the destination of Indonesia, two under 
the destination of Pakistan, one under the destination of Singapore, 
one under the destination of Turkey, and one under the destination of 
the United Arab Emirates because BIS was able to verify their bona 
fides; two persons, under the destination of Russia, are also removed 
from the UVL after they were added to the Entity List.

DATES: This rule is effective August 22, 2023.

FOR FURTHER INFORMATION CONTACT: For questions on the Unverified List 
revisions, contact Linda Minsker, Director, Office of Enforcement 
Analysis, Phone: (202) 482-4255, Email: [email protected].

SUPPLEMENTARY INFORMATION:

Background

Unverified List Changes

    The UVL, found in supplement no. 6 to part 744 of the EAR (15 CFR 
parts 730-774), contains the names and addresses of foreign persons who 
are or have been parties to a transaction, as described in Sec.  748.5 
of the EAR, involving the export, reexport, or transfer (in-country) of 
items subject to the EAR. These foreign persons are added to the UVL 
because BIS or federal officials acting on BIS's behalf were unable to 
verify their bona fides (i.e., legitimacy and reliability relating to 
the end use and end user of items subject to the EAR) through the 
completion of an end-use check. Sometimes these checks, such as a pre-
license check (PLC) or a post-shipment verification (PSV), cannot be 
completed satisfactorily for reasons outside the U.S. Government's 
control.
    There are any number of reasons why these checks cannot be 
completed to the satisfaction of the U.S. Government. The reasons 
include, but are not limited to: (1) reasons unrelated to the 
cooperation of the foreign party subject to the end-use check (for 
example, BIS sometimes initiates end-use checks but is unable to 
complete them because the foreign party cannot be found at the address 
indicated on the associated export documents and BIS cannot contact the 
party by telephone or email); (2) reasons related to a lack of 
cooperation by the host government that fails to schedule and 
facilitate the completion of an end-use check, for example by host 
government agencies' lack of responses to requests to conduct end-use 
checks, actions preventing the scheduling of such checks, or refusals 
to schedule checks in a timely manner; or (3) when, during the

[[Page 57003]]

end-use check, a recipient of items subject to the EAR is unable to 
produce the items that are the subject of the end-use check for visual 
inspection or provide sufficient documentation or other evidence to 
confirm the disposition of the items.
    BIS's inability to confirm the bona fides of foreign persons 
subject to end-use checks for the reasons described above raises 
concerns about the suitability of such persons as participants in 
future exports, reexports, or transfers (in-country) of items subject 
to the EAR; this also indicates a risk that such items may be diverted 
to prohibited end uses and/or end users. Under such circumstances, 
there may not be sufficient information to add the foreign person at 
issue to the Entity List under Sec.  744.11 of the EAR. Therefore, BIS 
may add the foreign person to the UVL.
    As provided in Sec.  740.2(a)(17) of the EAR, the use of license 
exceptions for exports, reexports, and transfers (in-country) involving 
a party or parties to the transaction who are listed on the UVL is 
suspended. Additionally, under Sec.  744.15(b) of the EAR, there is a 
requirement for exporters, re-exporters, and transferors to obtain (and 
maintain a record of) a UVL statement from a party or parties to the 
transaction who are listed on the UVL before proceeding with exports, 
reexports, and transfers (in-country) to such persons, when the 
exports, reexports, and transfers (in-country) are not subject to a 
license requirement. Finally, pursuant to Sec.  758.1(b)(8), Electronic 
Export Information (EEI) must be filed in the Automated Export System 
(AES) for all exports of tangible items subject to the EAR where any 
party to the transaction, as described in Sec.  748.5(d) through (f), 
is listed on the UVL.
    Requests for the removal of a UVL entry must be made in accordance 
with Sec.  744.15(d) of the EAR. Decisions regarding the removal or 
modification of UVL entry will be made by the Deputy Assistant 
Secretary for Export Enforcement, based on a demonstration by the 
listed person of their bona fides.

Removals From the UVL

    This final rule removes 33 persons from the UVL after BIS was able 
to verify their bona fides. This rule removes the following 27 persons 
under the destination of China: ``Beijing PowerMac Company;'' ``Beijing 
SWT Science;'' ``Beijing Zhonghehangxun Technology;'' ``Chongqing 
Xinyuhang Technology Co., Ltd.;'' ``Dandong Center for Food Control;'' 
``DK Laser Company Ltd.;'' ``Guangdong Guanghua Sci-Tech Co.;'' 
``Guangzhou GRG Metrology & Test (Beijing) Co., Ltd.;'' ``Gucheng Xian 
Fengxin Titanium Alloy;'' ``Hunan University;'' ``Jialin Precision 
Optics (Shanghai) Co., Ltd.;'' ``Jinan Bodor CNC Machine Co., Ltd.;'' 
``Lishui Zhengyang Electric Power Construction;'' ``Luoyang Weimi 
Optics;'' ``Nanchang University;'' ``Nanjing Gova Technology Co. 
Ltd.;'' ``Qingdao Sci-Tech Innovation Quality Testing Co. Ltd.;'' 
``Shuang Xiang (Fujian) Electronics;'' ``Sino Superconductor 
Technology;'' ``Suzhou Chaowei Jingna Optoelectric Co.;'' ``Suzhou Sen-
Chuan Machinery Technology Co., Ltd.;'' ``Tianjin Optical Valley 
Technology Co., Ltd.;'' ``TRI Microsystems;'' ``Wuxi Hengling 
Technology Co., Ltd.;'' ``Yunnan FS Optics Co., Ltd.;'' ``Yunnan Tianhe 
Optoelectronic Co., Ltd.;'' and ``Zhuzhou CRRC Special Equipment 
Technology Co.'' This rule also removes ``PT Smart Cakrawala Aviation'' 
under the destination of Indonesia, ``Seven Star Company'' and ``T.M.A. 
International'' under the destination of Pakistan, ``Smart Cakrawala 
Aviation'' under the destination of Singapore, ``Odak Kimya'' under the 
destination of Turkey, and ``Recaz Star General Trading LLC'' under the 
destination of the United Arab Emirates. BIS is removing these 33 
persons pursuant to Sec.  744.15(c)(2) of the EAR.
    On June 6, 2022, in the final rule ``Additions of Entities to the 
Entity List'' (87 FR 34154), BIS added ``OAO Radiofizika'' and 
``Voentelecom JSC'' under the destination of Russia to the Entity List. 
Therefore, as a conforming change, this final rule also removes 
``Radiofizika OAO'' and ``JSC Voentelecom'', under the destination of 
Russia, from the Unverified List.

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. 4801-
4852. ECRA provides the legal basis for BIS's principal authorities and 
serves as the authority under which BIS issues this final rule.

Rulemaking Requirements

Executive Order 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, distribute 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 final rule is not a ``significant regulatory action'' 
under Executive Order 12866.
    This rule does not contain policies with federalism implications as 
that term is defined under Executive Order 13132.

Paperwork Reduction Act Requirements

    Notwithstanding any other provision of law, no person is required 
to respond to, nor is 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 the following control 
numbers: 0694-0088 (Simplified Network Application Processing System--
Redesign (SNAP-R) and the Multipurpose Export License Application), 
0694-0122 (Licensing Responsibilities and Enforcement), and 0694-0137 
(License Exceptions and Exclusions). The restoration of license 
exceptions for listed persons on the Unverified List will result in 
decreased license applications being submitted to BIS by exporters. The 
total burden hours associated with the Paperwork Reduction Act are not 
expected to change.

Administrative Procedure Act and Regulatory Flexibility Act 
Requirements

    Pursuant to section 4821 of ECRA, this action is exempt from the 
Administrative Procedure Act (5 U.S.C. 553) requirements for notice of 
proposed rulemaking and opportunity for public participation.
    Further, no other law requires notice of proposed rulemaking or 
opportunity for public comment for this final rule. Because a notice of 
proposed rulemaking and an opportunity for public comment are not 
required under the Administrative Procedure Act 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

[[Page 57004]]

parts 730 through 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 19, 2022, 87 FR 57569 (September 21, 2022); Notice of 
November 8, 2022, 87 FR 68015 (November 10, 2022).

Supplement No. 6 to Part 744 [Amended]

0
2. Supplement no. 6 to part 744 is amended:
0
a. Under CHINA, PEOPLE'S REPUBLIC OF by removing the entries for 
``Beijing PowerMac Company;'' ``Beijing SWT Science;'' ``Beijing 
Zhonghehangxun Technology;'' ``Chongqing Xinyuhang Technology Co., 
Ltd.;'' ``Dandong Center for Food Control;'' ``DK Laser Company Ltd.;'' 
``Guangdong Guanghua Sci-Tech Co.;'' ``Guangzhou GRG Metrology & Test 
(Beijing) Co., Ltd.;'' ``Gucheng Xian Fengxin Titanium Alloy;'' ``Hunan 
University;'' ``Jialin Precision Optics (Shanghai) Co., Ltd.;'' ``Jinan 
Bodor CNC Machine Co., Ltd.;'' ``Lishui Zhengyang Electric Power 
Construction;'' ``Luoyang Weimi Optics;'' ``Nanchang University;'' 
``Nanjing Gova Technology Co., Ltd.;'' ``Qingdao Sci-Tech Innovation 
Quality Testing Co., Ltd.;'' ``Shuang Xiang (Fujian) Electronics;'' 
``Sino Superconductor Technology;'' ``Suzhou Chaowei Jingna 
Optoelectric Co.;'' ``Suzhou Sen-Chuan Machinery Technology Co., 
Ltd.;'' ``Tianjin Optical Valley Technology Co., Ltd.;'' ``TRI 
Microsystems;'' ``Wuxi Hengling Technology Co., Ltd.;'' ``Yunnan FS 
Optics Co., Ltd.;'' ``Yunnan Tianhe Optoelectronic Co., Ltd.;'' and 
``Zhuzhou CRRC Special Equipment Technology Co.;''
0
b. By removing the country listing for INDONESIA and the entry for ``PT 
Smart Cakrawala Aviation'' under the listing;
0
c. Under PAKISTAN by removing the entries for ``T.M.A. International'' 
and ``Seven Star Company;''
0
d. Under RUSSIA by removing the entries for and ``JSC Voentelecom'' and 
``Radiofizika OAO;''
0
e. Under SINGAPORE by removing the entry for ``Smart Cakrawala 
Aviation;''
0
f. Under TURKEY by removing the entry for ``Odak Kimya;'' and
0
g. Under the UNITED ARAB EMIRATES by removing the entry for ``Recaz 
Star General Trading LLC.''

Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 2023-18125 Filed 8-21-23; 8:45 am]
BILLING CODE 3510-33-P