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 Megatek TI Solutions, under the destination of Canada, and MAK Logistics; Megatek Ltd.; Wellgo International Industrial Limited; and Yield Bright Industrial Limited, all under the destination of China to the Entity List. These entities are added for providing U.S.-origin electronics and other items to Russian industry and military-related parties without the required BIS licenses. 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.

The ERC determined to add eight entities to the Entity List: Incomp Limited, under the destination of China; All Global Trading Elektronik Dis Ticaret Ltd Sti, under the destinations of Kazakhstan, Kyrgyzstan, and Turkey; Aktsionernoe Obshchestvo Radiotekhkomplekt, Izumrud AO, and Severny Reid AO, under the destination of Russia; and ASR Trans Lojistik Ve Dis Tic Ltd Sti, BRK Uluslararasi Nakliyat Tic. Ltd. Sti, and Turkik Union Dijital Teknoloji Donusum Ofisi, under the destination of Turkey. These entities are connected to transshipment networks involved in sending sensitive U.S.-origin technology to Russia. This activity is contrary to U.S. national security and foreign policy interests under § 744.11 of the EAR. The ERC has determined that these entities qualify as Russian Procurement Entities under § 734.9(g) of the EAR and are receiving a footnote 3 designation due to their significant risk of involvement in the supply or diversion of items subject to the EAR to procurement networks for Russia’s defense industry or intelligence services. A footnote 3 designation subjects these entities to the Russia/Belarus-Military End User and Procurement Foreign Direct Product (FDP) rule, detailed in § 734.9(g). These entities are added with a license requirement for all items subject to the EAR. They are added with a license review policy of denial.

The End User Review Committee determined to add two addresses, Address 09 and Address 10, under the destination of China and one address, Address 01, under the destination of Turkey to the Entity List. These addresses are associated with significant transshipment of sensitive goods to Russia. BIS has verified that these addresses are associated with a significant number of entities whose activities risk violating the EAR. These risks include associations with parties on the Entity List or the Unverified List at the listed addresses. 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 that are subject to the EAR on the Commerce Control List and supplement no. 7 of part 746 of the EAR. License applications will be reviewed with a license review policy of presumption of denial.

The ERC determined to add the following 34 entities to the Entity List: 3-K Electronics Limited; AllChips Limited; Chipgoo Electronics Limited; Cinty Int’l (HK) Industry Co., Limited; Cloudmax Tech Co., Limited; DGT Technology (HK) Co., Limited; Eastech Electronics Limited; Furuida Heilongjiang Supply Chain Management Co., Ltd.; Grun Group Co., Limited; Hongkong Inkson Technology Limited; Hong Kong Haiheng Electronics Co. Ltd.; Hong Kong Qisu Electronic Technology Co. Ltd.; Hong Kong Yayang Trading Ltd.; Hytera Communications Limited; ICsole Technology Limited; Kvantek Limited; Lett Tronic Group Limited; LL Electronic Limited; Mei Xin Electronic (HK) Co., Limited; Midas Lighting Limited; Minhoo Logistics Limited; O-Nice Trading Co. Limited; Piraclinos Limited; RYX Electronic (HK) Limited; Shenzhen Bailiansheng Electronic Science and Technology Co., Ltd; Shenzhen BZ Space Technology Co., Ltd.; Shenzhen Dongpengshang Electronics Co., Ltd.; Shenzhen SCH Technology Co., Ltd.; Siliborn Technology Limited; Superchip Limited; Tengxuxing Electronic Technology HK Limited; and Yusha Group Co. Ltd. under the destination of China; Merlion Trade Worldwide Ltd. under the destination of Cyprus; and Confienza Pazarlama Ve Ticaret Anonim Sirketi under the destination of Turkey. These entities are added for continuing to procure or attempting to procure items in support of Russia’s military and/or defense industrial base. Specifically, these 34 entities have supplied U.S.-origin and U.S.-branded components on behalf of Russian entities that have been sanctioned since Russia’s full-scale invasion of Ukraine or are otherwise linked to the Russian defense industrial base. This activity is contrary to U.S. national security and foreign policy interests under § 744.11 of the EAR. The ERC has determined that these entities qualify as Russian Procurement Entities under § 734.9(g) of the EAR and are receiving a footnote 3 designation due to their significant risk of involvement in the supply or diversion of items subject to the EAR to procurement networks for Russia’s defense industry or intelligence services. A footnote 3 designation subjects these entities to the Russia/Belarus-Military End User and Procurement Foreign Direct Product (FDP) rule, as detailed in § 734.9(g) of the EAR. These entities are added with a license requirement for all items subject to the EAR. They are added with a license review policy of denial.

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.

The ERC determined to add the following 48 entities under the destination of Russia to the Entity List: Complex Unmanned Solutions Center LTD; Federal Government Budget Institution State Institute for Experimental Military Medicine; Federal State Enterprise Aleksinsky Chemical Plant; Federal State Enterprise Kamenksy Combine; Federal State Enterprise Perm Powder Plant; Joint Stock Company 75 Arsenal; Joint Stock Company 419 Aircraft Repair Plant; Joint Stock Company Astrophysika National Centre of Laser Systems and Complexes; Joint Stock Company Aviation Reducers and Transmissions—Perm Motors; Joint Stock Company Central Design Bureau of Apparatus Engineering; Joint Stock Company Class; Joint Stock Company Dubnenskiy Machine-Building Plant named after N. P. Fedorova; Joint Stock Company Eirburg; Joint Stock Company Electroavtomatika; Joint Stock Company Gazprom Space Systems; Joint Stock Company Helicopter Service Company; Joint Stock Company Institute of Applied Physics; Joint Stock Company Jupiter Plant; Joint Stock Company Kumertau Aviation Production Enterprise; Joint Stock Company M.V. Frunze Arsenal Design Bureau; Joint Stock Company National Helicopter Construction Center named after M.L. Mil and N.I. Kamov; Joint Stock Company ODK-Klimov; Joint Stock Company Polimer; Joint Stock Company Progress Arsenyev Aviation Company; Joint Stock Company Radioavionika; Joint Stock Company Research Production Association Kurganpribor; Joint Stock Company Scientific-Technical Center for Electronic Warfare; Joint Stock Company Strommashina Shield; Joint Stock Company Verkhneturinsky Machine Building Plant; Joint Stock Company VNIIR-Progress; Joint Stock Company Volsk Mechanical Plant; Joint Stock Company Zavod Korpusov; Limited Liability Company Eliars; Limited Liability Company Hotu Tent; Limited Liability Company K.ARMA; Limited Liability Company Laggar Pro; Limited Liability Company Lipetsk Mechanical Plant; Limited Liability Company Moscow Arms Company; Limited Liability Company NPK Aerokon; Limited Liability Company Plaz; Limited Liability Company Research and Production Company Makrooptika; Limited Liability Company Special Design and Technology Bureau Plastic; Limited Liability Company Zavod Spetsagregat; Open Joint Stock Company Aero Engine Scientific and Technical Company Soyuz; Open Joint Stock Company Balashikhinskiy Liteyno Mekhanicheskiy Zavod; Open Joint Stock Company Machine Building Plant Arsenal; Public Joint Stock Company Taganrog Aviation Scientific-Technical Complex named after G.M. Beriev; and Public Joint Stock Company UEC-Ufa Engine Industrial Association. The ERC also determined to add Joint Stock Company Design Bureau of Navigation Systems under the destinations of Russia and Ukraine, and, under the destinations of the Crimea Region of Ukraine and Russia, Joint Stock Company Special Research Bureau of Moscow Power Engineering Institute. BIS, under § 744.8 of the EAR, imposes license requirements for certain entities on the U.S. Department of the Treasury, Office of Foreign Assets Control’s List of Specially Designated Nationals and Blocked Persons (SDN List). These entities have been designated pursuant to E.O. 14024. As such, they are already subject to a license requirement for all items subject to the EAR, pursuant to § 744.8(a)(1)(i)(C). However, these additions to the Entity List are being made because the ERC has determined that they are Russian or Belarusian `military end users’ pursuant to § 744.21. The ERC has determined that these entities are involved in the development, design, production, or maintenance of weapons systems or other items used by the Russian military. A footnote 3 designation subjects these entities to the Russia/Belarus-Military End User and Procurement FDP rule, as detailed in § 734.9(g) of the EAR. Entities subject to § 744.8’s license requirements are not subject to the Russia/Belarus-Military End User and Procurement FDP rule, so these entities are being added specifically pursuant to § 744.21. These 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.

The ERC determined to add six entities, all under the destination of Russia, to the Entity List: OOO Alabuga Development; JSC SEZ PPT Alabuga; OOO GEA; LLC Drake; LLC Alabuga Machinery; and LLC Alabuga Exim. Since February 24, 2022, BIS has implemented a series of stringent export controls that restrict Russia’s access to the technologies and other items that it needs to sustain its illegal war in Ukraine. As a result of these enhanced export controls, Russia has sought assistance from Iran to develop and construct an unmanned aerial vehicle (UAV) production facility in its “Alabuga Special Economic Zone.” This facility is intended to produce thousands of Shahed-136 drones in support of Russia’s war effort against Ukraine. These additions are being made because these entities are tied to, have supplied, or have partnered with Russia’s unmanned aerial vehicle (UAV) program, the Alabuga Special Economic Zone, and/or Russia’s military-industrial complex. This activity is contrary to U.S. national security and foreign policy interests under § 744.11 and these entities qualify as military end users under § 744.21 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. A footnote 3 designation subjects these entities to the Russia/Belarus-Military End User and Procurement FDP rule, detailed in § 734.9(g). 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 as EAR99, which will be reviewed on a case-by-case basis.

The ERC determined to add four entities: Limited Liability Company Analytical Manufactory; Limited Liability Company Eluent Laboratories; Limited Liability Company Medstandart; and Limited Liability Company Rusmedtorg, under the destination of Russia, and one entity, Biopharmist Medikal Urunler Dis Ticaret LTD STI, under the destination of Turkey, to the Entity List. On June 12, 2024, these entities were designated by the U.S. Department of Treasury’s Office of Foreign Assets Control under Executive Order 14024. BIS imposes a license requirement under § 744.8 of the EAR for the export, reexport, and transfer (in-country) of all items subject to the EAR when a person, who is a party to a transaction, is designated on the SDN List with a specified identifier. These additions are being made because the ERC has determined that these entities are Russian or Belarusian `military end users’ pursuant to § 744.21 of the EAR. A footnote 3 designation subjects these entities to the Russia/Belarus-Military End User and Procurement FDP rule, detailed in § 734.9(g). These 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.

The End User Review Committee determined to add one address, Address 11, under the destination of China to the Entity List. This address is associated with significant transshipment of sensitive goods to Russia. BIS has verified that this address is associated with a significant number of entities whose activities risk violating the EAR. These risks include associations with parties on the U.S. Department of the Treasury’s Specially Designated Nationals (SDN) List or parties that have been subject to end use checks that were deemed unverified. 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 supplement no. 7 of part 746 of the EAR and subject to 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 123 entities under 131 entries to the Entity List and includes, where appropriate, aliases:

Canada

• Megatek TI Solutions.

China

• 3-K Electronics Limited,
• Address 09,
• Address 10,
• Address 11,
• AllChips Limited,
• BuyBest Electronic,
• Chipgoo Electronics Limited,
• Cinty Int’l (HK) Industry Co., Limited,
• Cloudmax Tech Co., Limited,
• DGT Technology (HK) Co., Limited,
• Eastech Electronics Limited,
• Furuida Heilongjiang Supply Chain Management Co., Ltd.,
• Grun Group Co., Limited,
• Hong Kong Haiheng Electronics Co. Ltd.,
• Hong Kong Qisu Electronic Technology Co. Ltd.,
• Hong Kong Yayang Trading Ltd.,
• Hongkong Inkson Technology Limited,
• Hytera Communications Limited,
• ICsole Technology Limited,
• Incomp Limited,
• Kvantek Limited,
• Lett Tronic Group Limited,
• LL Electronic Limited,
• MAK Logistics,
• Megatek Ltd.,
• Mei Xin Electronic (HK) Co., Limited,
• Midas Lighting Limited,
• Minhoo Logistics Limited,
• O-Nice Trading Co. Limited,
• Piraclinos Limited,
• RYX Electronic (HK) Limited,
• Shenzhen Bailiansheng Electronic Science and Technology Co., Ltd,
• Shenzhen BZ Space Technology Co., Ltd.,
• Shenzhen Dongpengshang Electronics Co., Ltd.,
• Shenzhen SCH Technology Co., Ltd.,
• Siliborn Technology Limited,
• Superchip Limited,

• Tehran Pishro Trading Co.,
• Tengxuxing Electronic Technology HK Limited,
• Wellgo International Industrial Limited,
• Yield Bright Industrial Limited,and
• Yusha Group Co. Ltd.