Addition of Entities to the Entity List

AGENCY:

Bureau of Industry and Security, Department of Commerce.

ACTION:

Final rule.

SUMMARY:

In this rule, the Bureau of Industry and Security (BIS) amends the Export Administration Regulations (EAR) by adding 49 entities under 52 entries to the Entity List. These entries are under the destinations of the People's Republic of China (China) (42), Estonia (1), Finland (1), Germany (1), India (3), Turkey (2), United Arab Emirates (1), and the United Kingdom (1). Some entities may have multiple entries, accounting for the difference in the total number of entities and entries. These 49 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.

DATES:

This rule is effective on October 6, 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 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.

Entity List Decisions

Additions to the Entity List

The ERC determined to add the following 49 entities to the Entity List: ACE Electronics (HK) Co., Limited; Alliance Electro Tech Co., Limited; Alpha Trading Investments Limited; Asia Link Shanghai Int'l Logistics Co., Ltd.; Benico Limited; Check IC Solution Limited; Chengdu Jingxin Technology Co. Ltd.; E-Chips Solution Co. Ltd.; Farteco Limited; Glite Electronic Technology Co., Limited; Global Broker Solutions Limited; Grants Promotion Service Limited; Guangdong Munpower Electronic Commerce Co. Ltd.; Huayuanshitong Technology Co. Ltd.; IMAXChip; Insight Electronics; Kingford PCB Electronics Co., Ltd.; Kobi International Company; Most Technology Limited; New Wally Target International Trade Co., Limited; Nuopuxun Electronic Technology Co., Limited; Onstar Electronics Co. Ltd.; Robotronix Semiconductors Limited; Rui En Koo Technology Co. Ltd; Shaanxi Yingsaeir Electronic Technology Co. Ltd.; Shanghai IP3 Information Technology Co. Ltd.; Shenzhen One World International Logistics Co., Limited; Shvabe Opto-Electronics Co. LTD.; Suntop Semiconductor Co., LTD.; Tordan Industry Limited; TYT Electronics Co. Ltd.; UCreate Electronics Group; Wargos Industry Limited; Win Key Limited; Xin Quan Electronics Hong Kong Co. Limited; ZeYuan Technology Limited; Zhejiang Foso Electronics Technology Co. Ltd.; Zixis Limited; and Zone Chips Electronics Hong Kong Co. Limited under the destination of China; C & I Semiconductor Co. Ltd. under the destinations of China and India; China Shengshi International Trade Ltd. under the destinations of China and the United Kingdom; PT Technology Asia Limited under the destinations of China and Finland; Elmec Trade OU under the destination of Estonia; Interquest GmbH under the destination of Germany; Abhar Technologies and Services Private Limited; and Innovio Ventures under the destination of India; LL Chip Elektrik Elektronic Paz; and Scitech Tasimacilik Ticaret Limited under the destination of Turkey; and Hulm al Sahra Elect Devices TR under the destination of the United Arab Emirates.

These entities are added to the Entity List for providing support to Russia's military and/or defense industrial base. Specifically, these entities supplied Russian consignees connected to the Russian defense sector with U.S.-origin integrated circuits after March 1, 2023. These integrated circuits are classified under Harmonized Tariff System (HTS)-6 codes 854231, 854232, 854233, and/or 854239. These HTS–6 codes are identified under supplement no. 4 to part 746 (Russian and Belarusian Industry Sector Sanctions Pursuant to § 746.5(a)(1)(ii)). All U.S.-origin items classified under these HTS–6 codes have been controlled for export and reexport and transfer within Russia since September 15, 2022. Such U.S.-origin items require a license under § 746.5(a)(1)(ii) of the EAR when destined to Russia or Belarus.

Therefore, the documented shipments by these entities to Russia of such U.S.-origin items are contrary to U.S. national security and foreign policy interests under § 744.11(b) of the EAR. All entities added by this rule have a license requirement for all items subject to the EAR, and a license review policy of denial.

For the reasons described above, this final rule adds 49 entities under the following 52 entries, including aliases where appropriate, to the Entity List:

China

• Ace Electronics (HK) Co., Limited;
• Alliance Electro Tech Co., Limited;
• Alpha Trading Investments Limited;
• Asialink Shanghai Int'l Logistics Co., Ltd.;
• Benico Limited;
• C & I Semiconductor Co., Ltd.;
• Check IC Solution Limited;
• Chengdu Jingxin Technology Co. Ltd.;
• China Shengshi International Trade Ltd.;
• E-Chips Solution Co. Ltd.;
• Farteco Limited;
• Glite Electronic Technology Co., Limited;
• Global Broker Solutions Limited;
• Grants Promotion Service Limited;
• Guangdong Munpower Electronic Commerce Co. Ltd.;
• Huayuanshitong Technology Co. Ltd.;
• IMAXChip;
• Insight Electronics;
• Kingford PCB Electronics Co., Ltd.;
• Kobi International Company;
• Most Technology Limited;
• New Wally Target International Trade Co., Limited;
• Nuopuxun Electronic Technology Co., Limited;
• Onstar Electronics Co. Ltd.;
• PT Technology Asia Limited;
• Robotronix Semiconductors Limited;
• Rui En Koo Technology Co. Ltd;
• Shaanxi Yingsaeir Electronic Technology Co. Ltd.;
• Shanghai IP3 Information Technology Co. Ltd.;
• Shenzhen One World International Logistics Co., Limited;
• Shvabe Opto-Electronics Co. LTD.;
• Suntop Semiconductor Co., LTD.;
• Tordan Industry Limited;
• TYT Electronics Co. Ltd.;
• UCreate Electronics Group;
• Wargos Industry Limited;
• Win Key Limited;
• Xin Quan Electronics Hong Kong Co., Limited;
• ZeYuan Technology Limited;
• Zhejiang Foso Electronics Technology Co. Ltd.;

• Zixis Limited; and

• Zone Chips Electronics Hong Kong Co., Limited.

Estonia

• Elmec Trade OU.

Finland

• PT Technology Asia Limited.

Germany

• Interquest GmbH.

India

• Abhar Technologies and Services Private Limited;

• C & I Semiconductor Co., Ltd.; and

• Innovio Ventures.

Turkey

• LL Chip Elektrik Elektronic Paz; and

• Scitech Tasimacilik Ticaret Limited.

UAE

• Hulm al Sahra Elect Devices TR.

United Kingdom

• China Shengshi International Trade Ltd.

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 6, 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 November 6, 2023. Any such items not actually exported, reexported or transferred (in-country) before midnight, on October 6, 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 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.

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 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 by:

a. Under CHINA, PEOPLE'S REPUBLIC OF, adding in alphabetical order, entries for “Ace Electronics (HK) Co., Limited;” “Alliance Electro Tech Co., Limited;” “Alpha Trading Investments Limited;” “Asialink Shanghai Int'l Logistics Co., Ltd.;” “Benico Limited;” “C & I Semiconductor Co., Ltd.;” “Check IC Solution Limited;” “Chengdu Jingxin Technology Co. Ltd.;” “China Shengshi International Trade Ltd.;” “E-Chips Solution Co. Ltd.;” “Farteco Limited;” “Glite Electronic Technology Co., Limited;” “Global Broker Solutions Limited;” “Grants Promotion Service Limited;” “Guangdong Munpower Electronic Commerce Co. Ltd.;” “Huayuanshitong Technology Co. Ltd.;” “IMAXChip;” “Insight Electronics;” “Kingford PCB Electronics Co., Ltd.;” “Kobi International Company;” “Most Technology Limited;” “New Wally Target International Trade Co., Limited;” “Nuopuxun Electronic Technology Co., Limited;” “Onstar Electronics Co. Ltd.;” “PT Technology Asia Limited;” “Robotronix Semiconductors Limited;” “Rui En Koo Technology Co. Ltd;” “Shaanxi Yingsaeir Electronic Technology Co. Ltd.;” “Shanghai IP3 Information Technology Co. Ltd.;” “Shenzhen One World International Logistics Co., Limited;” “Shvabe Opto-Electronics Co. LTD.;” “Suntop Semiconductor Co., LTD.;” “Tordan Industry Limited;” “TYT Electronics Co. Ltd.;” “UCreate Electronics Group;” “Wargos Industry Limited;” “Win Key Limited;” “Xin Quan Electronics Hong Kong Co., Limited;” “ZeYuan Technology Limited;” “Zhejiang Foso Electronics Technology Co. Ltd.;” “Zixis Limited;” and “Zone Chips Electronics Hong Kong Co., Limited.”

b. Under ESTONIA, adding, in alphabetical order, an entry for “Elmec Trade OU.”

c. Under FINLAND, adding, in alphabetical order, an entry for “PT Technology Asia Limited.”

d. Under GERMANY, adding, in alphabetical order, an entry for “Interquest GmbH.”

e. Under INDIA, adding, in alphabetical order, entries for “Abhar Technologies and Services Private Limited;” “C & I Semiconductor Co., Ltd.;” and “Innovio Ventures.”

f. Under TURKEY, adding, in alphabetical order, entries for “LL Chip Elektrik Elektronic Paz” and “Scitech Tasimacilik Ticaret Limited.”

g. Under UNITED ARAB EMIRATES, adding, in alphabetical order, an entry for “Hulm al Sahra Elect Devices TR.”

h. Under UNITED KINGDOM, adding, in alphabetical order, an entry for “China Shengshi International Trade Ltd.”

The additions read as follows:

Supplement No. 4 to Part 744—Entity List