BIS ZTE Federal Register Notice and Related Documents

8/19/2019 BIS ZTE Federal Register Notice and Related Documents

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12004 Federal Register / Vol. 81, No. 45 / Tuesday, March 8, 2016/ Rules and Regulations

Paragraph 6005 Class E Airspace AreasExtending Upward From 700 Feet or MoreAbove the Surface of the Earth.

* * * * *

ANM OR E5 Salem, OR [Modified]

Salem, McNary Field, OR(Lat. 44°54′34″ N., long. 123°00′09″ W.)

That airspace extending upward from 700

feet above the surface within a 6.2-mileradius of McNary Field from the 164° bearingfrom the airport clockwise to the 315°

bearing, and that airspace within a 6.7-mileradius of McNary Field from the 315° bearingfrom the airport clockwise to the 074°

bearing, and that airspace within a 8.2-mileradius of McNary Field from the 074° bearingfrom the airport clockwise to the 164° bearingof the airport.

Issued in Seattle, Washington, on February26, 2016.

Tracey Johnson,

Manager, Operations Support Group, WesternService Center.

[FR Doc. 2016–05060 Filed 3–7–16; 8:45 am]

BILLING CODE 4910–13–P

DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 744

[Docket No. 160106014–6014–01]

RIN 0694–AG82

Additions to the Entity List

AGENCY: Bureau of Industry andSecurity, Commerce.

ACTION: Final rule.

SUMMARY: This rule amends the ExportAdministration Regulations (EAR) byadding four entities to the Entity List.The U.S. Government has determinedthat the four entities are acting contraryto the national security or foreign policyinterests of the United States. The fourentities will be listed on the Entity Listunder the destinations of People’sRepublic of China (China) and Iran.

DATES: This rule is effective March 8,2016.

FOR FURTHER INFORMATION CONTACT:Chair, End-User Review Committee,Office of the Assistant Secretary, ExportAdministration, Bureau of Industry andSecurity, Department of Commerce,Phone: (202) 482–5991, Fax: (202) 482–3911, Email: [email protected].

SUPPLEMENTARY INFORMATION:

Background

The Entity List (Supplement No. 4 toPart 744) identifies entities and otherpersons reasonably believed to beinvolved, or to pose a significant risk of

being or becoming involved, inactivities contrary to the nationalsecurity or foreign policy interests of theUnited States. The EAR imposesadditional licensing requirements on,and limits the availability of mostlicense exceptions for, exports,reexports, and transfers (in-country) tothose listed. The ‘‘license review

policy’’ for each listed entity or otherperson is identified in the LicenseReview Policy column on the Entity Listand the impact on the availability oflicense exceptions is described in theFederal Register notice adding entitiesor other persons to the Entity List. BISplaces entities and other persons on theEntity List pursuant to sections of part744 (Control Policy: End-User and End-Use Based) and part 746 (Embargoes andOther Special Controls) of the EAR.

The ERC, composed of representativesof the Departments of Commerce(Chair), State, Defense, Energy, and,

where appropriate, the Treasury,determines all additions to, removalsfrom, and other modifications to theEntity List. The ERC makes decisions toadd an entry to the Entity List bymajority vote and decisions to removeor modify an entry by unanimous vote.

ERC Entity List Decisions

Additions to the Entity List

This rule implements the decision ofthe ERC to add four entities—three inChina and one in Iran—to the Entity Listunder the authority of § 744.11 (Licenserequirements that apply to entities

acting contrary to the national securityor foreign policy interests of the UnitedStates) of the EAR.

The ERC reviewed §744.11(b)(Criteria for revising the Entity List) inmaking the determination to list thesefour entities. Under that paragraph,entities and other persons for whichthere is reasonable cause to believe,

based on specific and articulable facts,have been involved, are involved, orpose a significant risk of being or

becoming involved in, activities that arecontrary to the national security orforeign policy interests of the United

States, and those acting on behalf ofsuch persons, may be added to theEntity List. Paragraphs (b)(1) through (5)of § 744.11 set out an illustrative list ofactivities that could be contrary to thenational security or foreign policyinterests of the United States.

Pursuant to §744.11 of the EAR, theERC determined that ZhongxingTelecommunications EquipmentCorporation (‘‘ZTE Corporation’’),located at ZTE Plaza, Keji Road South,Hi-Tech Industrial Park, NenshanDistrict, Shenzhen, China, be added to

the Entity List under the destination ofChina for actions contrary to thenational security and foreign policyinterests of the United States.Specifically, the ZTE Corporationdocument ‘‘Report RegardingComprehensive Reorganization andStandardization of the Company ExportControl Related Matters’’ (available at

http://www.bis.doc.gov ) indicates thatZTE Corporation has reexportedcontrolled items to sanctioned countriescontrary to United States law. The ZTECorporation document ‘‘Proposal forImport and Export Control RiskAvoidance’’ (available at http:// www.bis.doc.gov ) describes how ZTECorporation also planned and organizeda scheme to establish, control, and usea series of ‘‘detached’’ (i.e., shell)companies to illicitly reexportcontrolled items to Iran in violation ofU.S. export control laws.

Pursuant to §744.11 of the EAR, the

ERC determined that three entitieslocated in China and one in Iran should be added to the Entity List for actionscontrary to the national security orforeign policy interests of the UnitedStates. Specifically, the following threeentities (in addition to ZTE Corporation)were identified in the schemedeveloped by ZTE Corporation toreexport controlled items to Irancontrary to United States law, asdetailed in the ZTE Corporationdocument ‘‘Proposal for Import andExport Control Risk Avoidance,’’referenced above and available on the

BIS Web site:(a) ZTE Kangxun Telecommunications Ltd.is named in the ZTE Corporation document‘‘Proposal for Import and Export Control RiskAvoidance.’’ This entity was designated byZTE Corporation to purchase controlleditems and provide them to a Chineseintermediary trading company for reexport toIran.

(b) Beijing 8-Star, identified as ‘‘8S’’ isdescribed in the ZTE Corporation document‘‘Proposal for Import and Export Control RiskAvoidance.’’ This entity was designated byZTE Corporation to sign contracts withIranian clients, make purchases of controlleditems, and reexport the items from China toIran.

(c) ZTE Parsian is identified as ‘‘ZTE YL’’in the ZTE Corporation document ‘‘Proposalfor Import and Export Control RiskAvoidance.’’ This entity was designated byZTE Corporation to facilitate the illicitreexport scheme by providing contractedengineering services to ZTE client(s) in Iranreceiving the controlled items.

Pursuant to §744.11(b)(5) of the EAR,the ERC determined that the conduct ofthese four entities raises sufficientconcern that the prior review of exports,reexports, and transfers (in-country) ofitems subject to the EAR involving these

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entities, and the possible imposition oflicense conditions or license denials onshipments to the entities, will enhanceBIS’s ability to prevent violations of theEAR.

For the four entities this rule adds tothe Entity List on the basis of §744.11,the ERC specified a license requirementfor all items subject to the EAR and a

license review policy of presumption ofdenial. The license requirements applyto any transaction in which itemssubject to the EAR are proposed forexport, reexport, or transfer (in-country)to any of the four listed entities or anyother transaction in which such entitiesact as purchaser, intermediateconsignee, ultimate consignee, or enduser of items subject to the EAR. Inaddition, no license exceptions areavailable for exports, reexports, ortransfers (in-country) of items subject tothe EAR to the entities being added tothe Entity List in this rule.

This final rule adds the following fourentities to the Entity List:

China

(1) Beijing 8-Star International Co.,Unit 601, 6th Floor, Tower 1, ProsperCenter, No. 5, Guanghua Road,Chaoyang District, Beijing, China;

(2) Zhongxing TelecommunicationsEquipment (ZTE) Corporation, ZTEPlaza, Keji Road South, Hi-TechIndustrial Park, Nanshan District,Shenzen, China; and

(3) ZTE KangxunTelecommunications Ltd., 2/3 Floor,Suite A, Zte Communication Mansion

Keji (S) Road, Hi-New Shenzhen,518057 China.

Iran

(1) ZTE Parsian, No. 100, Africa Ave.,Mirdamad Entersection, Tehran, Iran.

Savings Clause

Shipments of items removed fromeligibility for a License Exception orexport or reexport without a license(NLR) as a result of this regulatoryaction that were en route aboard acarrier to a port of export or reexport, onMarch 8, 2016, pursuant to actual orders

for export or reexport to a foreigndestination, may proceed to thatdestination under the previouseligibility for a License Exception orexport or reexport without a license(NLR).

Export Administration Act

Although the Export AdministrationAct expired on August 20, 2001, thePresident, through Executive Order13222 of August 17, 2001, 3 CFR, 2001Comp., p. 783 (2002), as amended byExecutive Order 13637 of March 8,

2013, 78 FR 16129 (March 13, 2013) andas extended by the Notice of August 7,2015, 80 FR 48233 (August 11, 2015),has continued the ExportAdministration Regulations in effectunder the International EmergencyEconomic Powers Act. BIS continues tocarry out the provisions of the ExportAdministration Act, as appropriate and

to the extent permitted by law, pursuantto Executive Order 13222, as amended

by Executive Order 13637.

Rulemaking Requirements

1. Executive Orders 13563 and 12866direct agencies to assess all costs and

benefits of available regulatoryalternatives and, if regulation isnecessary, to select regulatoryapproaches that maximize net benefits(including potential economic,environmental, public health and safetyeffects, distributive impacts, andequity). Executive Order 13563emphasizes the importance ofquantifying both costs and benefits, ofreducing costs, of harmonizing rules,and of promoting flexibility. This rulehas been determined to be notsignificant for purposes of ExecutiveOrder 12866.

2. Notwithstanding any otherprovision of law, no person is requiredto respond to nor be subject to a penaltyfor failure to comply with a collectionof information, subject to therequirements of the PaperworkReduction Act of 1995 (44 U.S.C. 3501et seq.) (PRA), unless that collection ofinformation displays a currently valid

Office of Management and Budget(OMB) Control Number. This regulationinvolves collections previouslyapproved by OMB under controlnumber 0694–0088, Simplified NetworkApplication Processing System, whichincludes, among other things, licenseapplications and carries a burdenestimate of 43.8 minutes for a manual orelectronic submission. Total burdenhours associated with the PRA andOMB control number 0694–0088 are notexpected to increase as a result of thisrule. You may send comments regardingthe collection of information associated

with this rule, including suggestions forreducing the burden, to Jasmeet K.Seehra, Office of Management andBudget (OMB), by email to Jasmeet _K. [email protected], or by fax to (202)395–7285.

3. This rule does not contain policieswith Federalism implications as thatterm is defined in Executive Order13132.

4. For the four entities added to theEntity List in this final rule, theprovisions of the AdministrativeProcedure Act (5 U.S.C. 553) requiring

notice of proposed rulemaking, theopportunity for public comment, and adelay in effective date are inapplicable

because this regulation involves amilitary or foreign affairs function of theUnited States. (See 5 U.S.C. 553(a)(1)).BIS implements this rule to protect U.S.national security or foreign policyinterests by preventing items from being

exported, reexported, or transferred (in-country) to the entities being added tothe Entity List. If this rule were delayedto allow for notice and comment and adelay in effective date, then entities

being added to the Entity List by thisaction would continue to be able toreceive items without a license and toconduct activities contrary to thenational security or foreign policyinterests of the United States. Inaddition, because these parties mayreceive notice of the U.S. Government’sintention to place this entity on theEntity List if a proposed rule is

published, doing so would create anincentive for these entities to eitheraccelerate receiving items subject to theEAR to conduct activities that arecontrary to the national security orforeign policy interests of the UnitedStates, or to take steps to set upadditional aliases, change addresses,and other measures to try to limit theimpact of the listing on the Entity Listonce a final rule was published. Further,no other law requires that a notice ofproposed rulemaking and anopportunity for public comment begiven for this rule. Because a notice of

proposed rulemaking and anopportunity for public comment are notrequired to be given for this rule by 5U.S.C. 553, or by any other law, theanalytical requirements of theRegulatory Flexibility Act, 5 U.S.C. 601et seq., are not applicable. Accordingly,no regulatory flexibility analysis isrequired and none has been prepared.

List of Subject in 15 CFR Part 744

Exports, Reporting and recordkeepingrequirements, Terrorism.

Accordingly, part 744 of the ExportAdministration Regulations (15 CFRparts 730–774) is amended as follows:

PART 744—[AMENDED]

■ 1. The authority citation for 15 CFRpart 744 continues to read as follows:

Authority: 50 U.S.C. 4601 et seq.; 50U.S.C. 1701 et seq.; 22 U.S.C. 3201 et seq.;42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22U.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, 59FR 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


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12006 Federal Register / Vol. 81, No. 45 / Tuesday, March 8, 2016/ Rules and Regulations

Comp., p. 228; E.O. 13099, 63 FR 45167, 3CFR, 1998 Comp., p. 208; E.O. 13222, 66 FR44025, 3 CFR, 2001 Comp., p. 783; E.O.13224, 66 FR 49079, 3 CFR, 2001 Comp., p.786; Notice of August 7, 2015, 80 FR 48233(August 11, 2015); Notice of September 18,2015, 80 FR 57281 (September 22, 2015);Notice of November 12, 2015, 80 FR 70667

(November 13, 2015); Notice of January 20,2016, 81 FR 3937 (January 22, 2016).

■ 2. Supplement No. 4 to part 744 isamended:■ a. By adding under China, inalphabetical order, three Chineseentities; and

■ b. By adding under Iran, inalphabetical order, one Iranian entity.

The additions read as follows:

Supplement No. 4 to Part 744—EntityList

* * * * *

Country Entity License requirement License review policy Federal Register citation

* * * * * * *CHINA, PEO-

PLE’S* * * * *

REPUBLICOF.

Beijing 8 Star International Co., Unit601, 6th Floor, Tower 1, ProsperCenter, No. 5, Guanghua Road,Chaoyang District, Beijing, China

For all items subject tothe EAR. (See §744.11of the EAR)

Presumption of denial ...... 81 FR [INSERT FR PAGENUMBER], 3/8/16.

* * * * *Zhongxing Telecommunications Equip-

ment (ZTE) Corporation, ZTE Plaza,Keji Road South, Hi-Tech IndustrialPark, Nanshan District, Shenzen,China

For all items subject tothe EAR. (See §744.11of the EAR)


ZTE Kangxun TelecommunicationsLtd., 2/3 Floor, Suite A, Zte Commu-

nication Mansion Keji (S) Road, Hi-New Shenzhen, 518057 China

For all items subject tothe EAR. (See §744.11

of the EAR)


* * * * *

* * * * * * *

IRAN ................. * * * * *ZTE Parsian, No. 100, Africa Ave.,

Mirdamad Entersection, Tehran, IranFor all items subject to

the EAR. (See §744.11of the EAR)


* * * * * * *

Dated: March 3, 2016.

Kevin J. Wolf,

Assistant Secretary for ExportAdministration.

[FR Doc. 2016–05104 Filed 3–7–16; 8:45 am]

BILLING CODE 3510–33–P

DEPARTMENT OF ENERGY

Federal Energy RegulatoryCommission

18 CFR Part 11

[Docket No. RM11–6–000]

Annual Update to Fee Schedule for the

Use of Government Lands byHydropower Licensees; Correction

AGENCY: Federal Energy RegulatoryCommission.

ACTION: Correcting amendment.

SUMMARY: This document containscorrections to the final rule (RM11–6–000) which published in the FederalRegister on Wednesday, February 24,2016 (81 FR 9090). The Final Ruleprovided the annual update to the feeschedule in Appendix A to Part 11,

which lists per-acre rental fees bycounty (or other geographic area) for use

of government lands by hydropowerlicensees and updated Appendix A toPart 11 with the fee schedule of per-acrerental fees by county (or othergeographic area) from October 1, 2015,through September 30, 2016 (Fiscal Year2016).

DATES: Effective March 8, 2016, and isapplicable beginning February 24, 2016.

FOR FURTHER INFORMATION CONTACT:Norman Richardson, FinancialManagement Division, Office of theExecutive Director, Federal EnergyRegulatory Commission, 888 First Street

NE., Washington, DC 20426, (202) 502–6219, [email protected].

SUPPLEMENTARY INFORMATION: OnFebruary 18, 2016, the Commissionissued an Annual Update to FeeSchedule for the Use of GovernmentLands for Hydropower Licensees in theabove-captioned proceeding. Pursuantto Annual Charges for the Use ofGovernment Lands, Order No. 774, 78FR 5256 (January 25, 2013), FERC Stats.& Regs. ¶ 31,341 (2013) this documentcorrects the per-acre values for the State

of Nevada, as reflected in the caption below.

List of Subjects in 18 CFR Part 11

Public lands.

Accordingly, 18 CFR part 11 iscorrected by making the followingcorrecting amendment:

PART 11—[AMENDED]

■ 1. The authority citation for part 11continues to read as follows:

Authority: 16 U.S.C. 792–828c; 42 U.S.C.7101–7352.

■ 2. Appendix A to Part 11 is amended by revising the entries under ‘‘Nevada’’

to read as follows:Appendix A to Part 11—Fee Schedulefor FY 2016

State County Fee/acre/yr

* * * * *Nevada Carson City ........ $51.65

Churchill ............. 18.72Clark ................... 43.21Douglas .............. 22.21Elko .................... 3.81Esmeralda .......... 13.79


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