Addition of Entities, Revision of an Entry, and Removal of Entries on the Entity List

SUPPLEMENTARY INFORMATION:

Background

The Entity List (supplement no. 4 to part 744 of the EAR (15 CFR parts 730-774)) 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, pursuant to § 744.11(b). The EAR impose additional license requirements on, and limit the availability of, most license exceptions for exports, reexports, and transfers (in-country) when a listed entity is a party to the transaction. 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, if applicable, is described in the relevant Federal Register document that added the entity to the Entity List. BIS places entities on the Entity List pursuant to parts 744 (Control Policy: End-User and End-Use Based) and 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 makes all decisions to remove or modify an entry by unanimous vote.

The Export Control Reform Act (ECRA) (codified, as amended, at 50 U.S.C. 4801-4852) provides the legal basis for BIS's principal authorities and serves as the authority under which BIS issues this rule. Section 1753(a) of ECRA (50 U.S.C. 4812) authorizes the regulation of “(1) the export, reexport, and in-country transfer of items subject to the jurisdiction of the United States, whether by United States persons or by foreign persons.” Section 1754(a) of ECRA (50 U.S.C. 4813) authorizes, inter alia, establishing and maintaining a list of foreign persons and end-uses that are determined to be a threat to the national security and foreign policy of the United States pursuant to the policy set forth in Section 1752(2)(A) of ECRA, and restricting exports, reexports, and in-country transfers of any controlled items to any foreign person or end-use so listed. The changes being made in this final rule are needed for the regulation of exports, reexports, and transfers (in-country) of items subject to U.S. jurisdiction to foreign persons that have been determined to be involved in activities that are contrary to the national security and foreign policy interests of the United States.

Entity List Decisions

Additions to the Entity List

The ERC determined to add Beijing Moreget Creative Technology Co., Ltd., under the destination of China, to the Entity List. This entity is being added for acquiring and attempting to acquire U.S.-origin items related to aviation simulation technology in support of China's military modernization. In addition, the ERC determined to add Shenzhen Dragonfly Supply Chain Co., Ltd. (Shenzhen Dragonfly) and Small Leopard Electronics Co., Limited (Small Leopard), under the destination of China, to the Entity List. Small Leopard Electronics was party to a transaction with an end user now understood to be a supplier of goods to an Iranian procurement network. Small Leopard, along with the closely connected company Shenzhen Dragonfly, is being added because Small Leopard repeatedly engaged in dilatory and evasive conduct in providing information to the U.S. Department of Commerce during end-use checks, including after being added to the Unverified List. These activities are contrary to U.S. national security and foreign policy interests under § 744.11 of the EAR.

The ERC also determined to add Detail Technology (HK) Limited, L-Tong Electronic Technology Company, and Shenzhen Jiachuang Weiye Technology Company, Ltd., all under the destination of China, to the Entity List. These additions are being made on the basis of actions and activities that are contrary to the national security and foreign policy interests of the United States. Specifically, these companies have procured and/or attempted to procure U.S-origin items for Iran's weapons of mass destruction (WMD) and unmanned aerial vehicle (UAV) programs. This activity is contrary to the national security and foreign policy interests of the United States under § 744.11 of the EAR.

The ERC determined to add Ansar Mahmood, Combine Communications, Engineering Aura, Haris M. Fazal, Mansoor Ahmed Malik, Rehman Feroze, Technologic Enterprises, United Institute of Technical Professional Education, and Usman Feroze, all under the destination of Pakistan, to the Entity List. These entities are added pursuant to § 744.11 of the EAR for engaging in activities contrary to the national security and foreign policy interests of the United States. Specifically, these entities are acting as front companies and procurement agents for Advanced Engineering Research Organization (AERO), a Pakistan-based company first added to the BIS Entity List in 2014 (79 FR 56003, September 18, 2014). Since 2010, AERO has utilized intermediaries and front companies to procure U.S.-origin items by disguising the end uses and end users of the items from U.S. exporters, thereby circumventing BIS licensing requirements. These end users include Pakistan's Air Weapons Complex, a Pakistani government entity on the Entity List since 2016 (81 FR 90714, December 15, 2016), responsible for Pakistan's cruise missile and strategic UAV programs. This activity is contrary to the national security and foreign policy interests of the United States under § 744.11 of the EAR.

In addition, the ERC determined to add Asia Pacific Trade Hub, Innovative Equipment (Private) Limited, Konsult Tek (Pvt) Ltd, Marriala Consultants, Metal Paint Products (Pvt) Ltd, Rockside Enterprise, and Zaheer & Sons, all under the destination of Pakistan, to the Entity List. These additions are being made for their contributions to Pakistan's ballistic missile program. This activity is contrary to the national security and foreign policy interests of the United States under § 744.11 of the EAR.

The ERC determined to add Steel Design LLC to the Entity List under the destination of Egypt, and Ahmed Abdellatif, Ayman Elgindy, and Steel Design FZE, under the destination of the UAE for acquiring and attempting to acquire U.S.-origin items, in particular civil aircraft parts, on behalf of a Russian buyer and attempting to evade the sanctions and export controls imposed following Russia's invasion of Ukraine in February 2022. These activities are contrary to U.S. national security and foreign policy interests under § 744.11(b) of the EAR.

For these 26 entities, a license is required for all items subject to the EAR. License applications will be reviewed under a presumption of denial. This final rule adds the following 26 entities to the Entity List and includes, where appropriate, aliases:

China

• Beijing Moreget Creative Technology Co., Ltd.;
• Detail Technology (НК) Limited;
• L-Tong Electronic Technology Company;
• Shenzhen Dragonfly Supply Chain Co., Ltd.;
• Shenzhen Jiachuang Weiye Technology Company, Ltd.;and
• Small Leopard Electronics Co., Limited

Egypt

• Steel Design LLC

Pakistan

• Ansar Mahmood;
• Asia Pacific Trade Hub;
• Combine Communications;
• Engineering Aura;
• Haris M. Fazal;
• Mansoor Ahmed Malik;
• Metal Paint Products (Pvt) Ltd;
• Innovative Equipment (Private) Limited;
• Konsult Tek (Pvt) Ltd;
• Marriala Consultants;
• Rehman Feroze;
• Rockside Enterprise;
• Technologic Enterprises;
• United Institute of Technical Professional Education;
• Usman Feroze;and
• Zaheer & Sons

United Arab Emirates

• Ahmed Abdellatif
• Ayman Elgindy;and
• Steel Design FZE

Modification of One Existing Entry on the Entity List

This final rule implements the decision of the ERC to modify one existing entry on the Entity List, the entry for Chengdu Poyotencon Technology, a Chinese entity, by adding one address for a total of two addresses.

Removal of Two Entries on the Entity List

The ERC determined to remove Sandvine Incorporated from the Entity List, under the destinations of Canada, India, Japan, Malaysia, Sweden, and the UAE, based on the information BIS received pursuant to § 744.16 of the EAR and the review the ERC conducted in accordance with procedures described in supplement no. 5 to part 744 of the EAR. The ERC also determined to remove Hefei Bitland Information Technology Co. Ltd., under the destination of China, from the Entity List, based on information BIS received pursuant to § 744.16 of the EAR and the review the ERC conducted in accordance with procedures described in supplement no. 5 to part 744 of the EAR.

Savings Clause

For the changes being made in this final rule, shipments of items removed from eligibility for a License Exception or export, reexport, or transfer (in-country) without a license (NLR) as a result of this regulatory action that were en route aboard a carrier to a port of export, reexport, or transfer (in-country), on October 23, 2024, pursuant to actual orders for export, reexport, or transfer (in-country) to or within a foreign destination, may proceed to that destination under the previous eligibility for a License Exception or export, reexport, or transfer (in-country) without a license (NLR) before November 22, 2024. Any such items not actually exported, reexported or transferred (in-country) before midnight, on November 22, 2024, require a license in accordance with this final rule.

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 rule. In particular, Section 1753 of ECRA (50 U.S.C. 4812) authorizes the regulation of exports, reexports, and transfers (in-country) of items subject to U.S. jurisdiction. Further, Section 1754(a)(1)-(16) of ECRA (50 U.S.C. 4813(a)(1)-(16)) authorizes, inter alia, establishing and maintaining a list of foreign persons and end-uses that are determined to be a threat to the national security and foreign policy of the United States pursuant to the policy set forth in Section 1752(2)(A), and restricting exports, reexports, and in-country transfers of any controlled items to any foreign person or end-use so listed; apprising the public of changes in policy, regulations, and procedures; and any other action necessary to carry out ECRA that is not otherwise prohibited by law. Pursuant to Section 1762(a) of ECRA (50 U.S.C. 4821(a)), these changes can be imposed in a final rule without prior notice and comment.

Rulemaking Requirements

1. 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, or will 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 (PRA) (44 U.S.C. 3501 et seq.), unless that collection of information displays a currently valid Office of Management and Budget (OMB) Control Number. This regulation involves an information collection approved by OMB under control number 0694-0088, Simplified Network Application Processing System. BIS does not anticipate a change to the burden hours associated with this collection as a result of this rule. Information regarding the collection, including all supporting materials, can be accessed at: https://www.reginfo.gov/public/do/PRAMain.

3. This rule does not contain policies with federalism implications as that term is defined in Executive Order 13132.

4. Pursuant to Section 1762 of the Export Control Reform Act of 2018, this action is exempt from the Administrative Procedure Act (5 U.S.C. 553) requirements for notice of proposed rulemaking, opportunity for public participation, and delay in effective date.

5. 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.

Accordingly, part 744 of the Export Administration Regulations (15 CFR parts 730-774) is amended as follows:

1. The authority citation for part 744 is revised 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 November 8, 2022, 87 FR 68015, 3 CFR, 2022 Comp., p. 563; Notice of September 18, 2024, 89 FR 77011 (September 20, 2024).

2. Supplement no. 4 is amended by:

a. Under CANADA, removing the entry for “Sandvine Incorporated;”

b. Under CHINA, PEOPLE'S REPUBLIC OF,

i. Adding an entry in alphabetical order for “Beijing Moreget Creative Technology Co., Ltd.;”

ii. Revising the entry for “Chengdu Poyotencon Technology;”

iii. Adding, in alphabetical order, an entry for “Detail Technology (HK) Limited;”

iv. Removing the entry for “Hefei Bitland Information Technology Co. Ltd.;” and

v. Adding entries, in alphabetical order for “L-Tong Electronic Technology Company;” “Shenzhen Dragonfly Supply Chain Co., Ltd.;” “Shenzhen Jiachuang Weiye Technology Company, Ltd.;” and “ Small Leopard Electronics Co., Limited;”

c. Under EGYPT, adding an entry in alphabetical order for “Steel Design LLC;”

d. Under INDIA, removing the entry for “Sandvine Incorporated;”

e. Under JAPAN, removing the entry for “Sandvine Incorporated;”

f. Under MALAYSIA, removing the entry for “Sandvine Incorporated;”

g. Under PAKISTAN, adding entries in alphabetical order for “Ansar Mahmood;” Asia Pacific Trade Hub;” “Combine Communications;” “Engineering Aura;” “Haris M. Fazal;” “Mansoor Ahmed Malik;” “Metal Paint Products (Pvt) Ltd;” “Innovative Equipment (Private) Limited;” “Konsult Tek (Pvt) Ltd;” “Marriala Consultants;” “Rehman Feroze;” “Rockside Enterprise;” “Technologic Enterprises;” “United Institute of Technical Professional Education;” “Usman Feroze;” and “Zaheer & Sons;”

h. Under SWEDEN, removing the entry for “Sandvine Incorporated;” and

i. Under UNITED ARAB EMIRATES,

i. Adding entries in alphabetical order for “Ahmed Abdellatif;” “Ayman Elgindy;”

ii. Removing the entry for “Sandvine Incorporated;” and

iii. Adding in alphabetical order, an entry for “Steel Design FZE.”

The revision and additions read as follows:

Supplement No. 4 to Part 744—Entity List