77 FR 75 pgs. 23114-23116 - Addition of Certain Persons on the Entity List: Addition of Persons Acting Contrary to the National Security or Foreign Policy Interests of the United States
Type: RULEVolume: 77Number: 75Pages: 23114 - 23116
Docket number: [Docket No. 111027661-1743-01]
FR document: [FR Doc. 2012-9374 Filed 4-17-12; 8:45 am]
Agency: Commerce Department
Sub Agency: Bureau of Industry and Security
Official PDF Version: PDF Version
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Part 744
[Docket No. 111027661-1743-01]
RIN 0694-AF43
Addition of Certain Persons on the Entity List: Addition of Persons Acting Contrary to the National Security or Foreign Policy Interests of the United States
AGENCY:
Bureau of Industry and Security, Commerce.
ACTION:
Final rule.
SUMMARY:
This rule amends the Export Administration Regulations (EAR) by adding three persons to the Entity List. The persons who are added to the Entity List 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 persons will be listed on the Entity List under the following two destinations: Canada and Jordan.
The Entity List provides notice to the public that certain exports, reexports, and transfers (in-country) to entities identified on the Entity List require a license from the Bureau of Industry and Security and that availability of license exceptions in such transactions is limited.
DATES:
Effective Date: This rule is effective April 18, 2012.
FOR FURTHER INFORMATION CONTACT:
Karen Nies-Vogel, Chair, End-User Review Committee, Office of the Assistant Secretary, Export Administration, Bureau of Industry and Security, Department of Commerce, Phone: (202) 482-5991, Fax: (202) 482- 3911, Email: ERC@bis.doc.gov.
SUPPLEMENTARY INFORMATION:
Background
The Entity List (Supplement No. 4 to Part 744) provides notice to the public that certain exports, reexports, and transfers (in-country) to entities identified on the Entity List require a license from the Bureau of Industry and Security (BIS) and that the availability of license exceptions in such transactions is limited. Entities are placed on the Entity List on the basis of certain sections of part 744 (Control Policy: End-User and End-Use Based) of the EAR.
The ERC, composed of representatives of the Departments of Commerce (Chair), State, Defense, Energy and, when 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 all decisions to remove or modify an entry by unanimous vote.
ERC Entity List Decisions
Additions to the Entity List
This rule implements the decision of the ERC to add three persons to the Entity List on the basis of Section 744.11 (License requirements that apply to entities acting contrary to the national security or foreign policy interests of the United States) of the EAR. The three entries added to the Entity List consist of two persons in Canada and one person in Jordan.
The ERC reviewed Section 744.11(b) (Criteria for revising the Entity List) in making the determination to add these persons to the Entity List. Under that paragraph, persons for which there is reasonable cause to believe, based on specific and articulable facts, that the persons 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 persons may be added to the Entity List pursuant to Section 744.11. Paragraphs (b)(1)-(b)(5) of Section 744.11 include an illustrative list of activities that could be contrary to the national security or foreign policy interests of the United States. The three persons are believed to have been involved in activities described under paragraphs (b)(1) and (b)(5) of Section 744.11.
The three persons in Canada and Jordan being added to the Entity List under this rule have been determined by the ERC to be involved in activities that could be contrary to the national security or foreign policy interests of the United States. Examples of the specific activities these persons have been involved with that are contrary to the national security or foreign policy interests of the United States pursuant to Section 744.11 include the violation of the license requirements imposed for exports and reexports to Syria as specified in Section 746.9 (formerly General Order No. 2 of Supplement No. 1 to part 736 of the EAR), and violation of the embargo against Iran as specified in the Iran Transactions Regulations (31 CFR Part 560). Both Syria and Iran have been designated by the Secretary of State as countries that have repeatedly provided support for acts of international terrorism. The three persons that are being added to the Entity List are knowingly and willfully engaging in the transshipment of U.S.-origin equipment subject to the EAR, without the required Department of Commerce or Department of the Treasury, Office of Foreign Assets Control (OFAC) export licenses, for use in Syria and Iran.
For the three persons added to the Entity List, the ERC specifies a license requirement for all items subject to the EAR and establishes a license application review policy of a presumption of denial. The license requirement applies to any transaction in which items are to be exported, reexported, or transferred (in-country) to such persons or in which such persons act as purchaser, intermediate consignee, ultimate consignee, or end-user. In addition, no license exceptions are available for exports, reexports, or transfers (in-country) to those persons being added to the Entity List.
This final rule adds the following three persons under three entries to the Entity List:
Canada
(1) Abou El-Khir Al Joundi, a.k.a., the following six aliases:
-Abou El Kheir Joundi;
-Abou Elkhir Al Joundi;
-Abou Joundi Et Kheir;
-Al Joundi;
-Al Jundi; and
-Elkheir Aljoundi Abou.
2706Carre Denise Pelletier, Montreal, Quebec, H4R 2T5 Canada; and
(2) Canada Lab Instruments, a.k.a., the following alias:
-SCO North America.
5995Gouin Ouest, #212, Montreal, Quebec, H4J 2P8 Canada.
Jordan
(1) Masound Est. for Medical and Scientific Supplies, 74 First Floor, Tla'a Al Ali Khali Al Salim Street, Amman, Jordon 11118.
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 en route aboard a carrier to a port of export or reexport, on April 18, 2012, 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).
Although the Export Administration Act expired on August 20, 2001, the President, through Executive Order 13222 of August 17, 2001, 3 CFR, 2001 Comp., p. 783 (2002), as extended by the Notice of August 12, 2011, 76 FR 50661 (August 16, 2011), has continued the Export Administration Regulations in effect under the International Emergency Economic Powers Act.
Rulemaking Requirements
1. Executive Orders 13563 and 12866 direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). Executive Order 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. 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 nor 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 the OMB under control numbers 0694-0088, "Multi-Purpose Application," which carries a burden hour estimate of 43.8 minutes for a manual or electronic submission. Total burden hours associated with the PRA and OMB control number 0694-0088 are not expected to increase as a result of this rule. You may send comments regarding the collection of information associated with this rule, including suggestions for reducing the burden, to Jasmeet K. Seehra, Office of Management and Budget (OMB), by email to Jasmeet_K._Seehra@omb.eop.gov, or by fax to (202) 395-7285.
3. This rule does not contain policies with Federalism implications as that term is defined in Executive Order 13132.
4. The provisions of the Administrative Procedure Act (5 U.S.C. 553) requiring notice of proposed rulemaking, the opportunity for public comment and a delay in effective date are inapplicable because this regulation involves a military or foreign affairs function of the United States. ( See 5 U.S.C. 553(a)(1)). BIS implements this rule to protect U.S. national security or foreign policy interests by preventing items from being exported, reexported, or transferred (in country) to the persons being added to the Entity List. If this rule were delayed to allow for notice and comment and a delay in effective date, then entities being added to the Entity List by this action would continue to be able to receive items without a license and to conduct activities contrary to the national security or foreign policy interests of the United States. In addition, because these parties may receive notice of the U.S. Government's intention to place these entities on the Entity List once a final rule was published it would create an incentive for these persons to either accelerate receiving items subject to the EAR to conduct activities that are contrary to the national security or foreign policy interests of the United States and/or to take steps to set up additional aliases, change addresses and take other steps to try to limit the impact of the listing on the Entity List once a final rule was published. Further, no other law requires that a notice of proposed rulemaking and an opportunity for public comment be given for this rule. 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.
List of Subject 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-[AMENDED]
1. The authority citation for 15 CFR part 744 continues to read as follows:
Authority:
50 U.S.C. app. 2401 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. 12947, 60 FR 5079, 3 CFR, 1995 Comp., p. 356; 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 August 12, 2011, 76 FR 50661 (August 16, 2011); Notice of September 21, 2011, 76 FR 59001 (September, 22, 2011); Notice of November 9, 2011, 76 FR 70319 (November 10, 2011); Notice of January 19, 2012, 77 FR 3067 (January 20, 2012).
2. Supplement No. 4 to part 744 is amended:
(a) By adding under Canada, in alphabetical order, two Canadian entities; and
(b) By adding, in alphabetical order, the destination of Jordan under the Country column and one Jordanian entity.
The additions read as follows:
| Country | Entity | License requirement | License review policy | Federal Register citation |
|---|---|---|---|---|
| ******* | ||||
| CANADA | Abou El-Khir Al Joundi, a.k.a., the following six aliases: | For all items subject to the EAR. (See § 744.11 of the EAR) | Presumption of denial | 77 FR [INSERT FR PAGE NUMBER] 4/18/12. |
| -Abou El Kheir Joundi; | ||||
| -Abou Elkhir Al Joundi; | ||||
| -Abou Joundi Et Kheir; | ||||
| -Al Joundi; | ||||
| -Al Jundi; and | ||||
| -Elkheir Aljoundi Abou. | ||||
| 2706 Carre Denise Pelletier, Montreal, Quebec, H4R 2T5 Canada | ||||
| ******* | ||||
| Canada Lab Instruments, a.k.a., the following alias: SCO North America | For all items subject to the EAR. (See § 744.11 of the EAR) | Presumption of denial | 77 FR [INSERT FR PAGE NUMBER] 4/18/12. | |
| 5995 Gouin Ouest, #212, Montreal, Quebec, H4J 2P8 Canada | ||||
| ******* | ||||
| JORDAN | Masound Est. for Medical and Scientific Supplies,74 First Floor, Tla'a Al Ali Khali Al Salim Street, Amman, Jordon 11118 | For all items subject to the EAR. (See § 744.11 of the EAR) | Presumption of denial | 77 FR [INSERT FR PAGE NUMBER] 4/18/12. |
| ******* |
Dated: April 12, 2012.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2012-9374 Filed 4-17-12; 8:45 am]
BILLING CODE 3510-33-P