SUMMARY: In this rule, the Bureau of Industry and Security (BIS) amends the Export Administration Regulations (EAR) by adding seven entities to the Entity List. These seven entities, listed under the destination of Iran, have been determined by the U.S. Government to be acting contrary to the national security or foreign policy interests of the United States for contributing to Russia's military and defense industrial base. They are being added to the Entity List with application of the Russia/Belarus-Military End User Foreign Direct Product rule.
DATES: This rule is effective on January 31, 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: [email protected].
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
A. Additions to the Entity List
The ERC determined to add the following seven entities to the Entity List under the destination of Iran based on § 744.11 for activity contrary to U.S. national security and foreign policy interests under §§ 744.11 and 744.21 of the EAR: Design and Manufacturing of Aircraft Engines, Islamic Revolutionary Guard Corps Aerospace Force, Islamic Revolutionary Guard Corps Research and Self-Sufficiency Jihad Organization, Oje Parvaz Mado Nafar Company, Paravar Pars Company, Qods Aviation Industry, and Shahed Aviation Industries. These entities are designated by the Departments of State and/or the Treasury pursuant to Executive Order 13382 and other sanctions programs. They are also currently subject to restrictions set forth in part 744 of the EAR, such as those in §§ 744.8, 744.12, and 744.14. With this rule, these entities are added to the Entity List for contributing to Russia's military and defense industrial base through the production of Iranian unmanned aerial vehicles (UAVs), which are being transferred to Russia for use in Ukraine. This activity is contrary to U.S. national security and foreign policy interests under § 744.11(b) and these entities qualify as `military end-users' under § 744.21(g) of the EAR. These entities will receive a footnote 3 designation because the ERC has determined that they are Russian or Belarusian `military end users' in accordance with § 744.21. A footnote 3 designation subjects these entities to the Russia/Belarus-Military End User Foreign Direct Product (FDP) rule, detailed in § 734.9(g) of the EAR. These seven entities are added to the Entity List with a license requirement for all items subject to the EAR. BIS will review license applications for items for these entities under a policy of denial apart from food and medicine designated as EAR99, which will be reviewed on a case-by-case basis. No license exceptions are available for exports, reexports, or transfers (in-country) to these entities.
For the reasons described above, this final rule adds the following seven entities to the Entity List and includes, where appropriate, aliases:
- Design and Manufacturing of Aircraft Engines (DAMA);
- Islamic Revolutionary Guard Corps Aerospace Force;
- Islamic Revolutionary Guard Corps Research and Self-Sufficiency Jihad Organization;
- Oje Parvaz Mado Nafar Company;
- Paravar Pars Company;
- Qods Aviation Industry; and
- Shahed Aviation Industries.