BIS Amends Entity List for Certain China, U.K., Iran, and UAE Companies, Etc.

(The ERC conducts an annual review to determine if any entities on the Entity List should be removed or modified. This is BIS’ third rule to amend the Export Administration Regulations to implement additional changes to the Entity List on the basis of the ERC review. BIS notes that an additional rule will be published later in 2011, if needed, to implement the results of the annual review for entities listed located in Pakistan and Syria.

See ITT’s Online Archives or 06/28/10 news, 10062824, for BP summary of the first final rule, which added 24 persons to the Entity List and removed one Hong Kong entity.

See ITT’s Online Archives or 12/17/10 news, 10121718, for BP summary of the second final rule, which amended the Entity List for certain China and Russia entities.)

Two Entities Removed from Entity List

BIS’ final rule removes (i) one U.K. entity based on a request for removal and (ii) one UAE entity based on the ERC annual review:

United Kingdom

Ad Hoc Marine Designs Ltd., 38 Buckland Gardens, Ryde Isle of Wight PO 33 3AG, United Kingdom.”

UAE

Sayed-Ali Hosseini, 201 Latifah Building, Al Maktoum St., Dubai, U.A.E.”

The removal of these two entities from the Entity List eliminates the existing license requirements in Supplement No. 4 to 15 CFR Part 744 for exports, reexports and transfers (incountry) to these two entities. However, the removal of these two entities from the Entity List does not relieve persons of other obligations under 15 CFR Part 744 or under other parts of the EAR. Neither the removal of an entity from the Entity List nor the removal of Entity List-based license requirements relieves persons of their obligations under General Prohibition 5 in 15 CFR 736.2(b)(5) which provides that, ‘‘you may not, without a license, knowingly export or reexport any item subject to the EAR to an end-user or end-use that is prohibited by 15 CFR Part 744 of the EAR.’’ Nor do these removals relieve persons of their obligation to apply for export, reexport or in-country transfer licenses required by other provisions of the EAR. BIS strongly urges the use of Supplement No. 3 to 15 CFR Part 732, “BIS’s ‘Know Your Customer’ Guidance and Red Flags,’’ when persons are involved in transactions that are subject to the EAR.

Additional Addresses, Aliases or Name Clarifications for Iran and UAE Entities

On the basis of decisions made by the ERC during the annual review, BIS’ final rule amends four entries (one Iranian entity and three U.A.E. entities) currently on the Entity List by adding additional addresses or aliases, or by clarifying the names for the entities listed, as follows:

Iran

• NBC Navegan Bar Co. Ltd., a.k.a., NBC Navegan Bar International Transport Co. Ltd., #135 Khorramshahr Ave., Tehran 15338-64163, and 101, Kohrramshahr Ave., Tehran 15338-64163.

United Arab Emirates

• Advanced Technology General Trading Company, a.k.a, Advanced Technologies Emirates FZ-LLC, Office #124 1st Floor, Building #3, Dell Building, Sheikh Zayed Road, Dubai Internet City, Dubai, U.A.E. (See alternate address under Kuwait);
• Abubakr Abuelazm, Dubai, U.A.E., 500100 (See alternate address under Kuwait); and
• Farrokh Nia Yaghmaei, a.k.a, Farokh Nia Yaghmaei, Flat 401- Bin Yas Center -- Al Maktum Road, P.O. Box 42340, Dubai, U.A.E.; and Shops 3- 4, Sharafia Ahmed Ali Building, al-Nakheel, Deira, Dubai, U.A.E.

Correction for China Entity

BIS’ final rule makes a technical correction to its December 17, 2010 amendments to the Entity List for Chinese entity “Chinese Academy of Engineering Physics.”

(In the December 17, 2010 final rule, BIS amended the Entity List for this entity to add additional aliases. However, BIS states that the 18th alias was listed as “University of Electronic Science and Technology of China, 901 Institute, (No. 4, 2nd Section, North Jianshe Road, Chengdu, 610054)”, but should have been listed as two separate aliases as follows:

1. the “University of Electronic Science and Technology of China, (No. 4, 2nd Section, North Jianshe Road, Chengdu, 610054)” and
2. the “901 Institute.”

This final rule corrects the entry by listing the aliases as separate aliases for the Chinese Academy of Engineering Physics.

A BIS license is required for the export, reexport or transfer (in-country) of any item subject to the EAR to the persons described above, including any transaction in which this listed entity will act as purchaser, intermediate consignee, ultimate consignee, or enduser of the items. This listing of these entities also prohibits the use of license exceptions (see 15 CFR Part 740 for exports, reexports and transfers (incountry) of items subject to the EAR involving this entity.

CFR Legal Authority Updated for 15 CFR Parts 730 and 744

The final rule also updated the Code of Federal Regulations (CFR) legal authority citations for 15 CFR Parts 730 (General Information) and 744 (Control Policy: End-User and End-Use based).

Savings Clause

Shipments of items removed from eligibility for a License Exception or export or reexport without a license (NLR) as a result of this regulatory action that were on dock for loading, on lighter, laden aboard an exporting or reexporting carrier, or en route aboard a carrier to a port of export or reexport, on April 18, 2011, pursuant to actual orders for export or reexport to a foreign destination, may proceed to that destination under the previous eligibility for a License Exception or export or reexport without a license (NLR) so long as they are exported or reexported before May 3, 2011. Any such items not actually exported or reexported before midnight, on May 3, 2011 require a license in accordance with the EAR.

BIS contact -- Karen Nies-Vogel (202) 482-5991

(Final rule D/N 110222154-1181-01, FR Pub 04/18/11)