SUMMARY: In this rule, the Bureau of Industry and Security (BIS) amends the Export Administration Regulations (EAR) by adding 123 entities under 131 entries to the Entity List. These entries are listed on the Entity List under the destinations of Canada (1), the People’s Republic of China (China) (42), the Crimea Region of Ukraine (1), Cyprus
(1), Iran (11), Kazakhstan (1), Kyrgyzstan (1), Russia (63), Turkey (8), Ukraine (1), and the United Arab Emirates (UAE) (1). Three entities are added to the Entity List under two destinations and two entities are added to the Entity List under three destinations, which accounts for the difference in the totals. 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.

DATES: This rule is effective August 27, 2024.

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].

SUPPLEMENTARY INFORMATION:

Background

The Entity List (supplement no. 4 to part 744 of the EAR (15 CFR parts 730 through 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 eleven entities under the destination of Iran to the Entity List for actions contrary to the national security or foreign policy interests of the United States: Arvin Fan Avar Vira Company; BuyBest Electronic; Digi Ghate; Fidar System Pooyan; General Electronic; IC Kala; Iran Compo Co.; Javan Electronic Company; SkyTech  Electronic; Tehran Pishro Trading Co.; and Zagros Electronic. BuyBest Electronic is also being listed under the destinations of China and Turkey, and Tehran Pishro Trading Co. is also listed under the destinations of China and the United Arab Emirates. These eleven entities under fifteen entries are connected to the supply of, or attempts to  supply, U.S.-origin items to Iran, some of which are Tier 1 items on the Common High Priority List of items needed by Russia’s military to sustain its brutal attack on Ukraine. (See https://www.bis.doc.gov/index.php/all-articles/13-policy-guidance/country-guidance/2172-russia-export-controls-list-of-common-high-priority-items.) This activity is  contrary to U.S. national security and foreign policy interests under § 744.11 of the EAR. These entities are added with a license requirement for all items subject to the EAR and a license review policy of presumption of denial.

[...]