Additions to the Entity List

Additions to the Entity List

SUPPLEMENTARY INFORMATION:

Background

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 imposes 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.

Entity List license requirements and other Entity List restrictions also apply to any foreign entity that is owned, directly or indirectly, individually or in aggregate, 50 percent or more by one or more listed entities. Exclusions to this rule will be identified by specifying in the relevant entry on the Entity List that the 50 percent ownership rule does not apply to any foreign affiliate owned by a particular listed entity or that a specific foreign affiliate is excluded. For any foreign entity that is owned, directly or indirectly, individually or in aggregate, 50 percent or more by one or more listed entities with different Entity List license requirements, the most restrictive of those Entity List license requirements apply to that foreign entity. If an exporter, reexporter, or transferor cannot determine the ownership percentage of a foreign entity that is an entity owned by one or more listed entities, they must resolve the Red Flag or obtain a license from BIS prior to proceeding with the export, reexport, or transfer (in-country), unless a license exception is available (see Red Flag 29 in supplement no. 3 to part 732). 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 Goodview Global, under the destination of China, to the Entity List. This entity is part of an illicit procurement network that supplies components, including UAV components, to front companies of the Islamic Revolutionary Guard Corps' Qods Force (IRGC-QF). In 2007, the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) sanctioned the IRGC-QF pursuant to E.O. 13224, Designating Cartels and Other Organizations as Foreign Terrorist Organizations and Specially Designated Global Terrorists, for providing material support to the Taliban and other terrorist organizations. The illicit procurement of UAV and other component parts and the supplying of those parts to IRGC-QF-affiliated companies is contrary to the national security and foreign policy interests of the United States under § 744.11 of the EAR. This entity is added with a license requirement for all items subject to the EAR, and licenses will be reviewed under a presumption of denial.

The ERC determined to add Atadoruk Havacilik Savunma Sanayi Ticaret Limited Sirketi; Business Metal Sanayi Ve Dis Ticaret Limited Sirketi; DBC Makina Sanayi ve Ticaret A.S.; Ercetin Is Makinalari Yedek Parcalari Insaat Ve Dis Ticaret Limited Sirketi; PMR Teknik Makine Ticaret Limited Sirketi; UMS Ankara Kalibrasyon Mühendislik Müusavirlik Mümessillik Sanayi Ve Ticaret Limited Sirketi; and Yant Insaat Gida Turizm Sanayi Dis Ticaret Limited Sirketi, under the destination of Turkey, to the Entity List. These additions are being made based on information indicating that these companies divert U.S.-origin items to Iran, including to parties on the BIS Entity List and on OFAC's Specially Designated Nationals (SDN) List. Iran has been subject to comprehensive sanctions and export controls by the United States for decades and, pursuant to § 746.7 of the EAR, most items on the Commerce Control List, and certain EAR99 items, require a license or other authorization from BIS for export, reexport, or in-country transfer to or within Iran. The diversion of U.S.-origin items in contravention of these controls is contrary to U.S. national security and foreign policy interests under § 744.11 of the EAR. A license is required for all items subject to the EAR. License applications will be reviewed under a presumption of denial.

The ERC determined to add TGB Aviation, under the destination of Turkey, to the Entity List. This entity is associated with the transshipment of U.S.-origin aircraft components into Iran. This transshipment network is connected to Iran Aircraft Manufacturing Industries (HESA), an entity designated by the OFAC as an SDN. This activity is contrary to the national security and foreign policy interests of the United States under § 744.11 of the EAR. These entities will be added with a license requirement for all items subject to the EAR and licenses will be reviewed under a presumption of denial.

The ERC determined to add Sisdoz Aritma Ve Pompa Teknolojileri Sanayi Ticaret Anonim Sirketi, under the destination of Turkey, and Royal Impact Trading L.L.C., under the destination of the UAE, to the Entity List. These additions are being made because these entities have diverted U.S.-origin items to Iran, including items classified under Export Control Classification Number (ECCN) 2B350. Iran has been subject to comprehensive sanctions and export controls by the United States for decades, including pursuant to § 746.7 of the EAR. Most items on the Commerce Control List, and certain EAR99 items, require a license or other authorization from BIS for export, reexport, or in-country transfer to or within Iran. Diversion of U.S.-origin items in contravention of these controls is contrary to U.S. national security and foreign policy interests under § 744.11 of the EAR. A license is required for all items subject to the EAR, and license applications will be reviewed under a presumption of denial.

The ERC determined to add Arrow China Electronics Trading Co., Ltd.; Arrow Electronics (Hong Kong) Co., Ltd.; Beijing Kevins Technology Development Co., Ltd.; Beijing Plenary Technology Co., Ltd.; Beijing Rageflight Technology Co., Ltd.; Gansu Shuili Hoisting Equipment Co., Ltd.; Jinan Xin Yin Bo Electronic Equipment Co. Ltd.; Schmidt & Co., (HK) Ltd.; Shangdong Xin Yin Bo IOT Technology Co. Ltd.; and Shanghai Sisheng Power Control Technology Co., Ltd., under the destination of China, to the Entity List. Since 2017, nations located in the Gulf and Middle East regions have recovered numerous weaponized unmanned aircraft systems (UAS) operated by Iranian proxies, including Houthi militants. Exploitation of the recovered UAS debris identified multiple U.S.-origin electronic components. The addition of these ten entities is based on information indicating that these entities facilitated the purchase of some of these electronic components. These activities are contrary to the national security and foreign policy interests of the United States. These entities are added with a license requirement for all items subject to the EAR and license applications will be reviewed under a presumption of denial.

The ERC determined to add five entities to the Entity List under the destination of China: Easy Fly Intelligent Technology Co., Ltd; Feng Bao Trading Hong Kong Ltd; Feng Bao Electronic Information Technology (Shanghai) Co., Ltd; Shanghai Bitconn Electronics Co., Ltd.; and Shanghai Langqing Electronic Technology Co. These additions are being made based on information indicating that around October 7, 2023, Israel Defense Forces recovered numerous weaponized unmanned aircraft vehicles (UAVs) operated by Iranian proxies, including Hamas militants. Exploitation of the recovered UAV debris identified multiple U.S.-origin electronic components. Information indicates that these entities facilitated the purchase and procurement of some of these electronic components. The procurement of U.S.-origin electronic components for Iranian proxies is contrary to U.S. national security and foreign policy interests under § 744.11 of the EAR. A license is required for all items subject to the EAR. License applications will be reviewed under a presumption of denial.

The ERC determined to add three addresses, all under the destination of China, to the Entity List. These addresses are denoted as Address 16, 17, and 18. These addresses are associated with the procurement network of Emily Liu, an individual previously designated by OFAC for having provided and/or attempted to provide support for Iran's Shiraz Electronics Industries (SEI). OFAC designated SEI as an SDN for being owned or controlled by Iran's Ministry of Defense and Armed Forces Logistics (MODAFL). These activities are contrary to U.S. national security and foreign policy interests under § 744.11 of the EAR. Licenses will be required for all entities at these addresses for all items on the Commerce Control List and EAR99 items listed in supplement no. 7 to part 746 of the EAR. License applications will be reviewed with a license review policy of presumption of denial.

For the reasons described above, this final rule adds the following 26 entities and 3 addresses to the Entity List and includes, where appropriate, aliases:

China

• Address 16,
• Address 17,
• Address 18,
• Arrow China Electronics Trading Co., Ltd.,
• Arrow Electronics (Hong Kong) Co., Ltd.,
• Beijing Kevins Technology Development Co., Ltd.,
• Beijing Plenary Technology Co., Ltd.,
• Beijing Rageflight Technology Co., Ltd.,
• Easy Fly Intelligent Technology Co., Ltd,
• Feng Bao Electronic Information Technology (Shanghai) Co., Ltd.,
• Feng Bao Trading Hong Kong Ltd,
• Gansu Shuili Hoisting Equipment Co., Ltd.,
• Goodview Global,
• Jinan Xin Yin Bo Electronic Equipment Co., Ltd.,
• Schmidt & Co., (HK) Ltd.,
• Shandong Xin Yin Bo IOT Technology Co., Ltd.,
• Shanghai Bitconn Electronics Co., Ltd.,

• Shanghai Langqing Electronic Technology Co., and

• Shanghai Sisheng Power Control Technology Co., Ltd.

Turkey

• Atadoruk Havacilik Savunma Sanayi Ticaret Limited Sirketi,
• Business Metal Sanayi Ve Dis Ticaret Limited Sirketi,
• DBC Makina Sanayi ve Ticaret A.S.,
• Ercetin Is Makinalari Yedek Parcalari Insaat Ve Dis Ticaret Limited Sirketi,
• PMR Teknik Makine Ticaret Limited Sirketi,
• Sisdoz Aritma Ve Pompa Teknolojileri Sanayi Ticaret Anonim Sirketi,
• TGB Aviation,

• UMS Ankara Kalibrasyon Mühendislik Müşavirlik Mümessillik Sanayi Ve Ticaret, Limited Sirketi, and

• Yant Insaat Gida Turizm Sanayi Dis Ticaret Limited Sirketi.

United Arab Emirates

• Royal Impact Trading L.L.C.

Savings Clause

Shipments of items removed from eligibility for a License Exception or export, reexport, or transfer (in-country) without a license (NLR) as a result of this regulatory action that were en route aboard a carrier to a port of export, reexport, or transfer (in-country), on October 8, 2025, pursuant to actual orders for export, reexport, or transfer (in-country) to or within a foreign destination, may proceed to that destination under the previous eligibility for a License Exception or export, reexport, or transfer (in-country) without a license (NLR), provided the export, reexport, or transfer (in-country) is completed no later than on November 7, 2025.

Export Control Reform Act of 2018

On August 13, 2018, the President signed into law the John S. McCain National Defense Authorization Act for Fiscal Year 2019, which included the Export Control Reform Act of 2018 (ECRA) (50 U.S.C. 4801-4852). ECRA provides the legal basis for BIS's principal authorities and serves as the authority under which BIS issues this rule. In particular, Section 1753 of ECRA (50 U.S.C. 4812) authorizes the regulation of exports, reexports, and transfers (in-country) of items subject to U.S. jurisdiction. Further, Section 1754(a)(1)-(16) of ECRA (50 U.S.C. 4813(a)(1)-(16)) authorizes, inter alia, establishing and maintaining a list of foreign persons and end-uses that are determined to be a threat to the national security and foreign policy of the United States pursuant to the policy set forth in Section 1752(2)(A), and restricting exports, reexports, and in-country transfers of any controlled items to any foreign person or end-use so listed; apprising the public of changes in policy, regulations, and procedures; and any other action necessary to carry out ECRA that is not otherwise prohibited by law. Pursuant to Section 1762(a) of ECRA (50 U.S.C. 4821(a)), these changes can be imposed in a final rule without prior notice and comment.

Rulemaking Requirements

1. This rule has been determined to be not significant for purposes of Executive Order 12866. This final rule is exempt from E.O. 14192 because it is being issued with respect to a national security function of the United States.

2. Notwithstanding any other provision of law, no person is required to respond to or 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 an information collection approved by OMB under control number 0694-0088, Simplified Network Application Processing System. BIS does not anticipate a change to the burden hours associated with this collection as a result of this rule. Information regarding the collection, including all supporting materials, can be accessed at https://www.reginfo.gov/public/do/PRAMain.

3. This rule does not contain policies with federalism implications as that term is defined in Executive Order 13132.

4. Pursuant to section 1762 of the Export Control Reform Act of 2018, this action is exempt from the Administrative Procedure Act (5 U.S.C. 553) requirements for notice of proposed rulemaking, opportunity for public participation, and delay in effective date. 5. 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. Accordingly, no regulatory flexibility analysis is required, and none has been prepared.

Accordingly, part 744 of the Export Administration Regulations (15 CFR parts 730-774) is amended as follows:

PART 744-CONTROL POLICY: END-USER AND END-USE BASED