T-MOTOR (Jiangxi Xintuo Enterprise Co. Ltd.) added to Bureau of Industry and Security, Department of Commerce … – sUAS News

Its not an unxpected move, there have been mumblings about a T-Motor ban for at least 12 months.

Bad news for large multirotor and SLT drivers in America as there motors are the mainstay of big machine power. I have several T-Motor systems here.

There must be many hundreds of units yet to be sold but things are about to get more expensive for inferior products in America.

In this rule, the Bureau of Industry and Security (BIS) amends the Export Administration Regulations (EAR) by adding 11 entries to the Entity List, under the destinations of the Peoples Republic of China (China) (6), the Russian Federation (Russia) (3), and the United Arab Emirates (UAE) (2). 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. This rule also modifies one existing entity on the Entity List under the destination of China.

This rule is effective April 11, 2024.

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: ERC@bis.doc.gov.

Background

The Entity List

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) of the EAR. 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. 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

Additions to the Entity List

The ERC determined to add Khalaj Trading LLC and Mahdi Khalaj Amirhosseini, both under the destination of the UAE to the Entity List for engaging in the export and attempted export of items on the Commerce Control List (Supplement 1 to part 774 of the EAR) from the United States to Iran through the UAE, in apparent violation of the Iranian Transactions and Sanctions Regulations (ITSR) (see 31 CFR part 560) and the EAR. These activities are contrary to the national security and foreign policy interests of the United States under § 744.11 of the EAR.

The ERC determined to add LINKZOL (Beijing) Technology Co., Ltd. and Xi’an Like Innovative Information Technology Co., Ltd., both under the destination of China, to the Entity List for acquiring and attempting to acquire U.S.-origin items in support of China’s military modernization efforts, including in support of Military-Intelligence End Users. The ERC also determined to add Beijing Anwise Technology Co., Ltd. and SITONHOLY (Tianjin) Co., Ltd., both under the destination of China, to the Entity List for acquiring and attempting to acquire U.S.-origin items in support of China’s military modernization efforts. These activities are contrary to U.S. national security and foreign policy interests under § 744.11 of the EAR.

The ERC determined to add Jiangxi Xintuo Enterprise Co. Ltd., under the destination of China, to the Entity List for supporting Russia’s military through the procurement, development, and proliferation of Russian unmanned aerial vehicles (UAVs). This activity is contrary to the national security and foreign policy interests of the United States under § 744.11. In addition, this entity qualifies as a military end user under § 744.21(g) of the EAR. This entity is receiving a footnote 3 designation because the ERC has determined that it is a Russian or Belarusian `military end user’ pursuant to §  744.21 of the EAR. A footnote 3 designation subjects this entity to the Russia/Belarus-Military End User Foreign Direct Product (FDP) rule, detailed in §  734.9(g) of the EAR. The entity is added with a license requirement for all items subject to the EAR and a license review policy of denial for all items subject to the EAR apart from food and medicine designated as EAR99, which will be reviewed on a case-by-case basis.

The ERC determined to add to the Entity List Aerosila JSC SPE, Delta-Aero LLC, and JSC ODK-Star, under the destination of Russia, and Shenzhen Jiasibo Technology Co., Ltd., under the destination of China, for working as a part of a network to procure aerospace components, including dual-use components for UAV applications, for the Iran Aircraft Manufacturing Industrial Company (HESA) in Iran. These components are used to develop and produce Shahed-series UAVs which have been used by Iran to attack oil tankers in the Middle East and by Russia in Ukraine. This activity is contrary to the national security and foreign policy interests of the United States under § 744.11 and these entities qualify as military end users under § 744.21(g) of the EAR. These entities are receiving a footnote 3 designation because the ERC has determined that they are Russian or Belarusian `military end users’ pursuant to §  744.21 and are subject to the Russia/Belarus-Military End User Foreign Direct Product (FDP) rule, detailed in §  734.9(g) of the EAR. The entities are added with a license requirement for all items subject to the EAR and a license review policy of denial for all items subject to the EAR apart from food and medicine designated as EAR99, which will be reviewed on a case-by-case basis.

For the reasons described above, this final rule adds the following 11 entities, including aliases where appropriate, to the Entity List:

China

• Beijing Anwise Technology Co., Ltd.;
• Jiangxi Xintuo Enterprise Co., Ltd.;
• LINKZOL (Beijing) Technology Co., Ltd.;
• Shenzhen Jiasibo Technology Co., Ltd.;

• SITONHOLY (Tianjin) Co., Ltd.; and

• Xi’an Like Innovative Information Technology Co., Ltd.

Russia

• Delta-Aero LLC; and

United Arab Emirates

• Khalaj Trading LLC; and

• Mahdi Khalaj Amirhosseini.

Modifications to the Entity List

This final rule implements the decision of the ERC to modify one existing entry on the Entity List under the destination of China. Specifically, the ERC determined to add one alias to the entry for Shanghai Biren Intelligent Technology Co., Ltd., for a total of three aliases.

Savings Clause

For the changes being made in this final rule, 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 April 11, 2024, 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) before May 13, 2024. Any such items not actually exported, reexported or transferred (in-country) before midnight, on May 13, 2024, require a license in accordance with this final rule.

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.

Rulemaking Requirements

1. 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 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.

• Exports
• Reporting and recordkeeping requirements
• Terrorism

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

1. The authority citation for part 744 is revised to read as follows:

Authority: 50 U.S.C. 4801-4852; 50 U.S.C. 4601 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. 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 November 8, 2022, 87 FR 68015, 3 CFR, 2022 Comp., p. 563; Notice of September 7, 2023, 88 FR 62439 (September 11, 2023).

2. Supplement no. 4 is amended by:

a. Under CHINA, PEOPLE’S REPUBLIC OF,

i. Adding, in alphabetical order, entries for “Beijing Anwise Technology Co., Ltd.;” “Jiangxi Xintuo Enterprise Co., Ltd.;” “LINKZOL (Beijing) Technology Co., Ltd.;” and

ii. Revising the entry for “Shanghai Biren Intelligent Technology Co., Ltd.;” and

iii. Adding, in alphabetical order, entries for “Shenzhen Jiasibo Technology Co., Ltd.;” “SITONHOLY (Tianjin) Co., Ltd.;” and “Xi’an Like Innovative Information Technology Co., Ltd.;” and

b. Under RUSSIA, adding entries in alphabetical order for “Aerosila JSC SPE;” “Delta-Aero LLC;” and “JSC ODK-Star;” and

c. Under UNITED ARAB EMIRATES, adding entries in alphabetical order for “Khalaj Trading LLC;” and “Mahdi Khalaj Amirhosseini.”

The revision and additions read as follows:

Supplement No. 4 to Part 744—Entity List

* * * * *

Thea D. Rozman Kendler,

Assistant Secretary for Export Administration.

[FR Doc. 2024-07760 Filed 4-10-24; 8:45 am]

BILLING CODE 3510-33-P

Published Document