Additions of Entities to the Entity List and Removal of Entity From the Entity List

AGENCY:

Bureau of Industry and Security, Department of Commerce.

ACTION:

Final rule.

SUMMARY:

The Department of Commerce is amending the Export Administration Regulations (EAR) by adding 43 entities under 50 entries to the Entity List. These entities 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 entries are listed on the Entity List under the destinations of China (31), Kenya (1), Laos (1), Malaysia (1), Pakistan (4), Singapore (1), South Africa (3), Thailand (1), the United Arab Emirates (5), and the United Kingdom (2). This rule also removes one entity from the Entity List under the destination of Latvia.

DATES:

This rule is effective June 12, 2023.

FOR FURTHER INFORMATION CONTACT:

Chair, End-User Review Committee, Office of the Assistant Secretary for Export Administration, Bureau of Industry and Security, Department of Commerce, Phone: (202) 482–5991, Email: ERC@bis.doc.gov.

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 is described in the relevant Federal Register document that added the entity to the Entity List. The Bureau of Industry and Security (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 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.

Additions to the Entity List

The ERC determined to add the following entities to the Entity List: Under the destination of China, Aviation Industry Corporation of China International Simulation Technology Service Co., Ltd.; Beijing China Aviation Technology Co., Ltd.; Chengdu Poyotencon Technology; China Taly Aviation Technologies Corporation; Chinese Flight Test Establishment; and Enhance International Trade Limited; under the destinations of China, Kenya, Laos, and the United Arab Emirates, Frontier Services Group Limited; under the destinations of China and South Africa, the Test Flying Academy of South Africa; under the destinations of Malaysia, Singapore, Thailand, and the United Kingdom, International Aerospace Asia; under the destination of South Africa, AVIC International Flight Training Academy; and Pearl Coral 1173CC; under the destination of the United Arab Emirates, TFASA Group FZCO; TFASA Group Training; TFASA Services FZCO; and TFASA Training Limited; and under the destination of the United Kingdom, TFASA Group Limited. These entities are added for providing training to Chinese military pilots using Western and NATO sources. This activity is contrary to U.S. national security and foreign policy interests under § 744.11 of the EAR. Licenses are required for all items subject to the EAR. License applications will be reviewed under a presumption of denial.

The ERC determined to add Aviation Industry Corporation of China 612 Institute; Beijing Iwintall Technology Co. Ltd.; Beijing Transemic Technology Co., Ltd.; Beijing Transemic Information Technology Co., Ltd.; China Aviation Development Harbin Bearing Co., Ltd.; Luoyang Institute of Science and Technology, Opturn Co., Ltd.; and Pera Global to the Entity List for acquiring and attempting to acquire U.S.-origin items in support of China's military modernization. This activity is contrary to U.S. national security and foreign policy interests under § 744.11 of the EAR. These entities have demonstrable ties to activities of concern, including hypersonic weapons development, design and manufacture of air-to-air missiles, hypersonic flight modeling, and weapon lifecycle management using Western software. Licenses are required for all items subject the EAR. License applications will be reviewed under a presumption of denial.

Pursuant to § 744.11 of the EAR, the ERC determined to add Belt Consulting Co., Ltd.; New Faith Enterprise Investment Limited; Shanghai Breeze Technology Co., Ltd.; Shanghai Breeze Technology Jiangsu Co, Ltd.; Shanghai Shark Sprite Technology Co., Ltd.; and United Vision Limited, all under the destination of China, to the Entity List. This addition is based on their engaging in or enabling activities contrary to U.S. national security and foreign policy interests. Specifically, these entities have been implicated in a conspiracy to violate U.S. export laws and regulations, including a scheme to supply the Chinese People's Liberation Army—Navy with U.S. military grade vessels and equipment. This activity is contrary to U.S. national security and foreign policy interests under § 744.11 of the EAR. Licenses are required for all items subject the EAR. License applications will be reviewed under a presumption of denial.

The ERC determined to add Shanghai Supercomputing Technology Co., Ltd. to the Entity List for acquiring and attempting to acquire U.S.-origin items in support of China's military modernization. This entity has supported the operation of supercomputers located in the PRC, specifically by offering cloud-based supercomputing capabilities to support hypersonics research. This activity is contrary to U.S. national security and foreign policy interests under § 744.11 of the EAR. Licenses are required for all items subject to the EAR, which will be reviewed under a presumption of denial. This entity is also given a footnote 4 designation, which means that “items subject to the EAR” for the purpose of these license requirements include foreign-produced items that are subject to the EAR pursuant to § 734.9(e)(2) of the EAR.

The ERC determined to add Beijing Ryan Wende Science and Technology Co., Ltd. (Beijing Ryan) and Xinjiang Kehua Hechang Biological Science and Technology Co., Ltd. (Xinjiang Kehua) to the Entity List, all under the destination of China, for procuring and supplying items subject to the EAR that enable the Chinese government to carry out human rights abuses against individuals in China. Specifically, Beijing Ryan procures and distributes items subject to the EAR, including mobile phone inspection software, fingerprint analysis technology, biostatistics software, and DNA testing items to Public Security Bureaus (PSBs) throughout China. Xinjiang Kehua procures and distributes biotechnology items subject to the EAR to the Xinjiang Production and Construction Corps (XPCC), an entity designated on the Entity List and on the Office of Foreign Assets Control's List of Specially Designated Nationals and Blocked Persons, and to PSBs in Xinjiang. The distribution of these items to XPCC and the PSBs enables China to carry out human rights abuses against individuals in China, including as part of its campaign of repression against Uyghur Muslims and members of other minority groups in Xinjiang. This activity is contrary to U.S. national security and foreign policy interests under § 744.11 of the EAR. Licenses are required for all items subject the EAR. License applications will be reviewed under a presumption of denial.

The ERC determined to add Akhtar and Sons Private Limited to the Entity List under the destination of Pakistan. This addition is based on its contributions to Pakistan's ballistic missile program. A license is required for all items subject to the EAR. License applications will be reviewed under the policy set out in § 744.3(d).

The ERC determined to add Affiliates International, under the destination of Pakistan, and Changzhou Utek Composite Co., Ltd., under the destination of China, to the Entity List. This addition is based on their contributions to Pakistan's ballistic missile program. A license is required for all items subject to the EAR. License applications will be reviewed under the policy set out in § 744.3(d).

The ERC determined to add Beijing Luo Luo Technology Development Co., Ltd.; General Technology Limited; Tiger Force Electronics Limited; and Universal Enterprise Limited to the Entity List, all under the destination of China. This addition is based on their contributions to Pakistan's ballistic missile program. A license is required for all items subject to the EAR. License applications will be reviewed under the policy set out in §§ 744.2(d) and 744.3(d).

The ERC determined to add Qianpu Technology Co., Ltd., under the destination of China, and Quantum Logix (Private) Limited and Imminent Engineering Co., Ltd., both under the destination of Pakistan, to the Entity List. This addition is based on information that these entities significantly contribute to Pakistan's advanced conventional weapons and strategic weapons capabilities, contrary to U.S. national security and foreign policy interests under § 744.11 of the EAR. Licenses are required for all items subject the EAR. License applications will be reviewed under a presumption of denial.

For the reasons described above, this final rule adds the following 43 entities under 50 entries to the Entity List and includes, where appropriate, aliases:

China

• Aviation Industry Corporation of China 612 Institute,
• Aviation International Corporation of China International Simulation Technology Service Co., Ltd.,
• Beijing China Aviation Technology Co., Ltd.,
• Beijing Iwintall Technology Co. Ltd.,
• Beijing Luo Luo Technology Development Co., Ltd.,
• Beijing Ryan Wende Science and Technology Co., Ltd.,
• Beijing Transemic Information Technology Ltd.,
• Beijing Transemic Technology Ltd.,
• Belt Consulting Co., Ltd.,
• Changzhou Utek Composite Co., Ltd.,
• Chengdu Poyotencon Technology,
• China Taly Aviation Technologies Corporation,
• Chinese Flight Test Establishment,
• Enhance International Trade Limited,
• Frontier Services Group Limited,
• General Technology Limited,
• Luoyang Institute of Science and Technology,
• New Faith Enterprise Investment Limited,
• Opturn Co., Ltd.,
• Pera Global
• Qianpu Technology Co., Ltd.,
• Shanghai Aerospace Science and Technology Development Co., Ltd.
• Shanghai Breeze Technology Co., Ltd.,
• Shanghai Breeze Technology Jiangsu Co., Ltd.,
• Shanghai Shark Sprite Technology Co., Ltd.,
• Shanghai Supercomputing Technology Co., Ltd.,
• The Test Flying Academy of South Africa,
• Tiger Force Electronics Limited,
• United Vision Limited,

• Universal Enterprise Limited, and

• Xinjiang Kehua Hechang Biological Science and Technology Co., Ltd.

Kenya

• Frontier Services Group Limited.

Laos

• Frontier Services Group Limited.

Malaysia

• International Aerospace Asia.

Pakistan

• Affiliates International,
• Akhtar and Sons Private Limited,

• Imminent Engineering Co., Ltd., and

• Quantum Logix (Private) Limited.

Singapore

• International Aerospace Asia.

South Africa

• AVIC International Flight Training Academy,

• Pearl Coral 1173 CC, and

• The Test Flying Academy of South Africa.

Thailand

• International Aerospace Asia.

United Arab Emirates

• Frontier Services Group Limited,
• TFASA Group FZCO,
• TFASA Group Training,

• TFASA Services FZCO, and

• TFASA Training Limited.

United Kingdom

• International Aerospace Asia, and

• TFASA Group Limited.

Removal From the Entity List

The ERC determined to remove Fiber Optic Solutions from the Entity List. This is based on information that BIS received pursuant to § 744.16(e) of the EAR and the review that the ERC conducted in accordance with procedures described in supplement no. 5 to part 744 of the EAR. Prior to removal from the Entity List by this rule, Fiber Optic Solutions was listed under Latvia.

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 June 12, 2023, 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 July 12, 2023. Any such items not actually exported, reexported, or transferred (in-country) before midnight, on July 12, 2023, 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.

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 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 OMB under control number 0694–0088, Simplified Network Application Processing System, which includes, among other things, license applications and commodity classifications, and carries a burden estimate of 29.4 minutes for a manual or electronic submission for a total burden estimate of 33,133 hours. Total burden hours associated with the PRA and OMB control number 0694–0088 are not expected to increase as a result of this rule.

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.

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—CONTROL POLICY: END-USER AND END-USE BASED

1. The authority citation for 15 CFR part 744 is 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).

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

a. Under CHINA, PEOPLE'S REPUBLIC OF, by adding, in alphabetical order, entries for “Aviation Industry Corporation of China 612 Institute;” “Aviation International Corporation of China International Simulation Technology Service Co., Ltd.;” “Beijing China Aviation Technology Co., Ltd.;” “Beijing Iwintall Technology Co. Ltd.;” “Beijing Luo Luo Technology Development Co., Limited;” “Beijing Ryan Wende Science and Technology Co., Ltd.;” “Beijing Transemic Information Technology Ltd.;” “Beijing Transemic Technology Ltd.;” “Belt Consulting Co., Limited;” “Changzhou Utek Composite Co., Limited;” “Chengdu Poyotencon Technology;” “China Taly Aviation Technologies Corporation;” “Chinese Flight Test Establishment;” “Enhance International Trade Limited;” “Frontier Services Group Limited;” “General Technology Limited;” “Luoyang Institute of Science and Technology;” “New Faith Enterprise Investment Limited;” “Opturn Co., Ltd.;” “Pera Global;” “Qianpu Technology Co., Ltd.;” “Shanghai Aerospace Science and Technology Development Co., Ltd.;” “Shanghai Breeze Technology Co., Ltd.;” “Shanghai Breeze Technology Jiangsu Co., Ltd.;” “Shanghai Shark Sprite Technology Co., Ltd.;” “Shanghai Supercomputing Technology Co., Ltd.;” “The Test Flying Academy of South Africa;” “Tiger Force Electronics Limited;” “United Vision Limited;” “Universal Enterprise Limited;” and “Xinjiang Kehua Hechang Biological Science and Technology Co., Ltd.;”

b. By adding in alphabetical order a heading for KENYA and under KENYA, by adding, in alphabetical order, an entry for “Frontier Services Group Limited;”

c. Under LATVIA, by removing the entry for “Fiber Optic Solutions;”

d. By adding in alphabetical order a heading for LAOS and under LAOS, by adding, in alphabetical order, an entry for “Frontier Services Group Limited;”

e. Under MALAYSIA, by adding, in alphabetical order, an entry for “International Aerospace Asia;”

f. Under PAKISTAN, by adding in alphabetical order, entries for “Affiliates International;” “Akhtar and Sons Private Limited;” “Imminent Engineering Co., Ltd.;” and “Quantum Logix (Private) Limited”; and

g. Under SINGAPORE, by adding, in alphabetical order, an entry for “International Aerospace Asia;”

h. Under SOUTH AFRICA, by adding, in alphabetical order, entries for “AVIC International Flight Training Academy;” “Pearl Coral 1173 CC;” and “The Test Flying Academy of South Africa;”

i. Under THAILAND, by adding, in alphabetical order, an entry for “International Aerospace Asia;”

j. Under UNITED ARAB EMIRATES, by adding, in alphabetical order, entries for “Frontier Services Group Limited;” “TFASA Group FZCO;” “TFASA Group Training;” “TFASA Services FZCO;” and “TFASA Training Limited;” and

k. Under United Kingdom, by adding, in alphabetical order, entries for “International Aerospace Asia;” and “TFASA Group Limited.”

The additions read as follows:

Supplement No. 4 to Part 744—Entity List