Federal Register - June 1, 2021
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Source: Federal Register
Federal Register / Vol. 86, No. 103 / Tuesday, June 1, 2021 / Rules and Regulations
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entities will be listed on the Entity List under the destinations of Pakistan and the United Arab Emirates UAE. This rule also revises two existing entries and corrects one existing entry on the Entity List under the destination of China and removes one entity from and revises one existing entry on the Military End-User MEU List under the destination of China. Lastly, this rule removes one entity under the destination of Pakistan.
The removals from the Entity List and MEU List are made in connection with requests for removal that BIS received pursuant to the EAR and a review of information provided in those requests.
DATES: This rule is effective June 1, 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 4825991, Fax: 202 482
3911, Email: ERC@bis.doc.gov.
SUPPLEMENTARY INFORMATION:
Background The Entity List supplement no. 4 to part 744 of the EAR identifies entities for which there is reasonable cause to believe, based on specific and articulable facts, that the entities have been involved, are involved, or 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 EAR
15 CFR parts 730774 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 MEU List supplement no. 7 to part 744 of the EAR identifies entities that have been determined by the EndUser Review Committee ERC to be military end users pursuant to 744.21
of the EAR. That section imposes additional license requirements on, and limits the availability of most license exceptions for, exports, reexports, and transfers in-country to listed entities on the MEU List, as specified in supplement no. 7 to part 744 and 744.21 of the EAR. Entities are listed
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on the MEU List under the destinations of Burma, China, Russia, or Venezuela.
The license review policy for each listed entity is identified in the introductory text of supplement no. 7 to part 744 and in 744.21b and e of the EAR. The MEU List includes introductory text, which specifies the scope of the license requirements, limitations on the use of EAR license exceptions, and the license review policy that applies to each listed entity. These requirements are also reflected in 744.21 but, for ease of reference, these requirements are also included in the introductory text of the supplement.
The 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 and the MEU List. The ERC makes all decisions to add an entry to the Entity List and MEU List by majority vote and all decisions to remove or modify an entry by unanimous vote.
Entity List Decisions A. Additions to the Entity List Under 744.11b Criteria for revising the Entity List of the EAR, entities for which there is reasonable cause to believe, based on specific and articulable facts, that the entities 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 entities, may be added to the Entity List. Paragraphs b1 through 5 of 744.11 provide an illustrative list of activities that could be considered contrary to the national security or foreign policy interests of the United States.
This rule implements the decision of the ERC to add eight entities to the Entity List. These eight entities will be listed on the Entity List under the destinations of Pakistan and the UAE.
The ERC made the decision to add these eight entities described below under the standard set forth in 744.11b of the EAR.
The ERC determined that the eight subject entities are engaging in or enabling activities contrary to U.S.
national security and foreign policy interests, as follows:
The ECR determined that eight entities are involved in proliferation to unsafeguarded nuclear activities that are contrary to the national security and/or foreign policy of the United States. Six of these entities are located in Pakistan:
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Hassan Scientific Corporation; Mecatech Private Limited; Middle East Automation & Controls Services; Mirza and Co.; Techno-Commercial; and TELEC Electronics & Machinery Pvt Ltd. Two of these entities are located in UAE: Delta Engineering Concern FZE;
and Future Trends International, FZE
LLC.
Pursuant to 744.11b of the EAR, the ERC determined that the conduct of the above-described eight entities raises sufficient concerns that prior review, via the imposition of a license requirement for exports, reexports, or transfers incountry of all items subject to the EAR
involving these eight entities and the possible issuance of license denials or the possible imposition of license conditions on shipments to this entity, will enhance BISs ability to prevent violations of the EAR or otherwise protect U.S. national security or foreign policy interests.
For the eight entities added to the Entity List in this final rule described under this section, Section A, Additions to the Entity List, BIS imposes a license requirement that applies to all items subject to the EAR. In addition, no license exceptions are available for exports, reexports, or transfers incountry to the person being added to the Entity List in this rule. BIS imposes a license review policy of a presumption of denial for these eight entities.
For the reasons described above, this final rule adds the following eight entities to the Entity List:
Pakistan Hassan Scientific Corporation;
Mecatech Private Limited;
Middle East Automation & Controls Services;
Mirza and Co;
Techno-Commercial; and TELEC Electronics & Machinery Pvt Ltd.
UAE
Delta Engineering Concern FZE;
and Future Trends International, FZE
LLC.
B. Revisions to the Entity List This final rule revises two existing entries, two under the destination China, as follows.
This rule implements a revision to one existing entry for DJI, first added to the Entity List under the destination of China on December 22, 2020 85 FR
83420, December 22, 2020. The ERC
determined to modify the existing entry under China for DJI by revising the License Requirement column to exclude EAR99-designated technology for the
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