Additions to Entity List: Russian Entities

DEPARTMENT OF COMMERCE

Bureau of Export Administration

15 CFR Part 744

[Docket No. 970428099-8185-06]

RIN 0694-AB60

Additions to Entity List: Russian Entities

AGENCY: Bureau of Export Administration, Commerce.

ACTION: Final rule.

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SUMMARY: The Export Administration Regulations (EAR) provide that the

Bureau of Export Administration (BXA) may inform exporters,

individually or through amendment to the EAR, that a license is

required for exports or reexports to certain entities. The EAR contains

a list of such entities. This rule adds to the entity list certain

Russian entities under investigation by the Russian government for

suspected export control violations involving weapons of mass

destruction and missile technology. Exports or reexports of all items

subject to the EAR to these newly added entities now require a license,

and applications will be reviewed with a presumption of denial.

EFFECTIVE DATE: This rule is effective July 29, 1998.

FOR FURTHER INFORMATION CONTACT:

Eileen M. Albanese, Office of Exporter Services, Bureau of Export

Administration, Telephone: (202) 482-0436.

SUPPLEMENTARY INFORMATION:

Background

General Prohibition Five (Sec. 736.2(b)(5) of the EAR) prohibits

exports and reexports to certain end-users or end-uses (described in

part 744 of the EAR) without a license. In the form of Supplement No. 4

to part 744, BXA maintains an ``Entity List'' to provide notice

informing the public of certain entities subject to such licensing

requirements. This rule adds certain entities in Russia to this list.

This rule further adds a new Sec. 744.10 describing license

requirements and review standards for exports and reexports to such

entities.

Although the Export Administration Act (EAA) expired on August 20,

1994, the President invoked the International Emergency Economic Powers

Act and continued in effect, to the extent permitted by law, the

provisions of the EAA and the EAR in Executive Order 12924 of August

19, 1994, continued by Presidential notices of August 15, 1995, August

14, 1996, and August 15, 1997.

Rulemaking Requirements

1. This final rule has been determined to be not significant for

the purposes of Executive Order 12866.

2. Notwithstanding any other provision of law, no person is

required to respond to nor be subject to a penalty for failure to

comply with a collection of information subject to the requirements of

the Paperwork Reduction Act unless that collection of information

displays a current valid OMB Control Number. This rule involves a

collection of information requirements subject to the Paperwork

Reduction Act of 1980 (44 U.S.C. 3501 et seq.). This collection has

been approved by the Office of Management and Budget under control

number 0694-0088.

3. This rule does not contain policies with Federalism implications

sufficient to warrant preparation of a Federalism assessment under

Executive Order 12612.

[[Page 40364]]

4. The provisions of the Administrative Procedure Act requiring

notice of proposed rulemaking, the opportunity for public

participation, and a delay in effective date, are inapplicable because

this regulation involves a military or foreign affairs function of the

United States (see 5 U.S.C. 553(a)(1)). Further, no other law requires

that a notice of proposed rulemaking and an opportunity for public

comment be given for this rule. 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 inapplicable.

Therefore, this regulation is issued in final form. Although there

is no formal comment period, public comments on this regulation are

welcome on a continuing basis. Comments should be submitted to Sharron

Cook, Office of Exporter Services, Bureau of Export Administration,

Department of Commerce, PO Box 273, Washington, DC 20044.

List of Subjects in 15 CFR Part 744

Exports, Foreign trade, Reporting and recordkeeping requirements.

Accordingly, part 744 of the Export Administration Regulations (15

CFR parts 730-744) is amended, as follows:

PART 744--[AMENDED]

1. The authority citation for 15 CFR part 744 continues to read as

follows:

Authority: 50 U.S.C. app. 2401 et seq., 1701 et seq.; 22 U.S.C.

3201 et seq.; 42 U.S.C. 2139a; 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. 12924, 59 FR 43437, 3 CFR, 1994 Comp., p. 917; E.O. 12938, 59

FR 59099, 3 CFR, 1994 Comp., p. 950; Notice of August 15, 1995 (60

FR 42767, August 17, 1995); and Notice of August 14, 1996 (61 FR

42527); and August 13, 1997 (62 FR 43629, August 15, 1997).

2. Part 744 is amended by adding a new Sec. 744.10 to read as

follows:

Sec. 744.10 Restrictions on certain entities in Russia.

(a) General prohibition. Certain entities in Russia, under

investigation by the Russian government for suspected export control

violations involving weapons of mass destruction and missile

technology, are included in Supplement No. 4 of this part 744 (Entity

List). (See also Sec. 744.1(c) of the EAR.) Exporters are hereby

informed that these entities are ineligible to receive any items

subject to he EAR without a license.

(b) Exceptions. No License Exceptions apply to the prohibition

described in paragraph (a) of this section.

(c) License review standards. Applications to export or reexport

items subject to the EAR to these entities will be reviewed with a

presumption of denial.

3. Supplement No. 4 to part 744 is amended by adding, in

alphabetical order, the following entities:

Supplement No. 4 to part 744--Entity List

* * * * *

Baltic State Technical University, 1/21, 1-ya Krasnoarmeiskaya

UI., 198005 St. Petersburg, Russia, for all items subject to the EAR

(see Sec. 744.10 of the EAR)

* * * * *

Europalace 2000, Moscow, Russia, for all items subject to the

EAR (see Sec. 744.10 of the EAR)

Glavkosmos, 9 Krasnoproletarskaya st., 103030 Moscow, Russia,

for all items subject to the EAR (see Sec. 744.10 of the EAR)

Garfit (aka State Scientific Research Institute of Graphite or

NIIGRAFIT), 2 Ulitsa Elektrodnaya, 111524 Moscow, Russia, for all

items subject to the EAR (see Sec. 744.10 of the EAR)

* * * * *

INOR Scientific Center, Moscow, Russia, for all items subject to

the EAR (see Sec. 744.10 of the EAR)

* * * * *

MOSO Company, Moscow, Russia, for all items subject to the EAR

(see Sec. 744.10 of the EAR)

* * * * *

Polyus Scientific Production Association, 3 Ulitsa Vvedenskogo,

117342 Moscow, Russia, for all items subject to the EAR (see

Sec. 744.10 of the EAR)

* * * * *

Dated: July 23, 1998.

R. Roger Majak,

Assistant Secretary for Export Administration.

[FR Doc. 98-20272 Filed 7-28-98; 8:45 am]

BILLING CODE 3510-33-M