Evolutions In Business • www.eib.com • (978) 256-0438 Fax: (978) 250-4529 • P.O. Box 4008, Chelmsford, MA 01824

April 1, 2017 – Volume 9, Issue 7

EIB World Trade Headlines

NEWSLETTERNOTES*SinglePortalLIcense*StateDepartmentSlated…*FloridaFirmFined…*Kent,Washington*CyberAttackers$3MillionReward*YemenRaidonAlQaeda…* StateDepartmentdarkensthebriefingroomagainamidsearchfornewspokesperson*UnitedStatesandLaosHold…* DEPARTMENTOFCOMMERCEBureauofIndustryandSecurity

SINGLE PORTAL FOR LICENSES:

Single Trade Application and Reporting System (STARS)

• STARS Home • New To Exporting • Department of Commerce • Department of State • Department of Treasury

The Single Trade Application and Reporting System (STARS) directs users whose export requires a license to the export licensing systems of the Department of Commerce, Bureau of Industry and Security; the Department of State, Directorate Defense Trade Controls; and the Department of Treasury, Office of Foreign Assets Control. This single portal was created in support of the President’s Export Control Reform (ECR) Initiative.

New to exporting?

Select appropriate agency for more information see link:

https://build.export.gov/main/ecr/eg_main_100285

2

State Department Slated for Budget Cuts

Trump’sbudget,setforreleaseThursday,proposesthebroadestcutstofederalprogramssincejustafterWorldWarIIPresidentTrump’sfirstbudgetproposessharpincreasesinmilitaryspendinganddramaticreductionsacrossmuchoftherestofthegovernment.Ifthespendingbillforfiscalyear2018isapprovedbyCongress,someagencieswouldbehithard,withreductionsofmorethan20percentattheAgriculture,LaborandStatedepartments.WithintheEnvironmentalProtectionAgencyalone,50programsand3,200positionswouldbeeliminated.Thepresident’sbudgetalsoproposeseliminatingfuturefederalsupportfortheNationalEndowmentoftheArts,theNationalEndowmentfortheHumanitiesandtheCorporationforPublicBroadcasting.Thesheersizeofthebudgetcutswouldlikelyleadtocutbacksinthefederalnon-militaryworkforce,somethingWhiteHouseofficialssaidwasoneoftheirgoals.“Youcan’tdraintheswampandleaveallthepeopleinit,”WhiteHouseOfficeofManagementandBudgetDirectorMickMulvaneytoldreporters.

Florida Firm Fined $27 Million for Export Violations

WASHINGTON,DC–TheU.S.DepartmentofCommerce’sBureauofIndustryandSecuritytodayannouncedthatithasreacheda$27millioncivilsettlementwithAccessUSAShipping,LLC(“AccessUSA”),ofSarasota,Florida,tosettleallegationsthatitcommittedviolationsoftheExportAdministrationRegulations(EAR).AccessUSAsettled129countsofevasion,17countsofexportingorattemptingtoexportcrimecontrolitemswithouttherequiredlicense,and4countsofexportingorattemptingtoexporttoasanctionedentityontheBISEntityListwithouttherequiredlicense.$17milliondollarsofthepenaltywassuspendedforatwo-yearprobationaryperiod.Theyillegallyshippedriflescopes,nightvisionlenses,weaponsparts,andEAR99items.“IamveryproudoftheworkthatourBureauofIndustrySecuritycontinuestodoindefenseofourlawsandournationalsecurity,”saidSecretaryRoss.“I’vesaiditbefore–thegamesareover,andtheworkoftheseagentswillbemoreimportantthaneveraswebringnewenergytotheenforcementofourtradelaws.”

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AccessUSA,aFlorida-basedmailandpackageforwardingcompany,providedforeigncustomerswithaUSphysicaladdressanda“suite”–designatedspaceatitswarehousefacilities–foritemspurchasedfromUnitedStatesmerchantsthatwereultimatelyintendedforexport.Customerscouldhavesuchitems,whichincludedriflescopes,nightvisionlenses,weaponsparts,andEAR99items,deliveredtoAccessUSA’sFloridafacilitieswhileconcealingfromthosemerchantsthefactthattheitemsweredestinedforexport,thusavoidingthenecessaryscrutiny.ItemdescriptionswerealteredandmerchantinvoicesremovedinordertoavoiddetectionbytheU.S.Governmentandlawenforcement.AccessUSAthereafterexportedthoseitemswithoutregardforitsexportcontrolandcomplianceobligations,includingitsrecordkeepingobligations,andwithoutregardforthelawfulnessoftheshipment,theaccuracyoftheinformationconveyedtocustomsandlawenforcementauthorities,ortheneedtofirstobtainalicensewhereonewasnecessary.AccessUSAroutinelyundervalued,misrepresented,andevadedregulatoryrequirementsforitemsintendedforexportusingmultipledifferentschemes.“BISimposedasubstantialpenaltyinthiscaseafterAccessUSA’seffortstocircumventU.S.exportregulations,”saidRobertLuzzi,SpecialAgentinChargeofCommerce’sOfficeofExportEnforcementMiamiFieldOffice.“Wewillcontinuetoworkwithourlawenforcementpartnerstoidentify,deter,andpreventanysuspectedviolations.”TheOfficeofExportEnforcementinvestigatedthiscasealongwithHomelandSecurityInvestigationsandtheU.S.Attorney’sOfficefortheMiddleDistrictofFlorida.AccessUSAenteredintoanon-prosecutionagreementwiththeU.S.Attorney’sofficecoveringthesameconduct.

Kent, Washington InKent,Washington,policehaveissuedawarningtoalldogowners.Theyareencouragingpeoplenottopickupanytennisballstheyfindlyingaround.Thiscanbeextremelychallengingforadogowneriftheylettheiranimalofftheleash.CBSNewsreportedthatindividualsenjoymakingtheirownfireworksathomealthoughtheresultcanbeamissinglimborinstantdeath.Nevertheless,peopleacrossWashingtonstateareputtingfireworksintotennisballsorpipes.Ifthe“fireworks”don’texplodeasplanned,theyusuallyleavethetennisballonthegroundlikealandminewaitingtoripsomeone’slegoff.Thesedudsbecomeactive“tennisballbombs”

3

Cyber Attackers $3 Million Reward

Fourindividuals—twoRussianFederalSecurityService(FSB)officersandtwocriminalhackers—havebeenchargedbyafederalgrandjuryintheNorthernDistrictofCaliforniainconnectionwithoneofthelargestcyberintrusionsinU.S.history,whichcompromisedtheinformationofatleast500millionYahooaccounts.OneofthecriminalhackerswasarrestedyesterdaybyCanadianauthorities.ThetwoFSBofficersandthesecondhacker,lastknowntohavebeeninRussia,arecurrentlyfugitiveswantedbytheFBI.TheindictmentswereannouncedtodaybyU.S.DepartmentofJusticeActingAssistantAttorneyGeneralMaryMcCord,FBIExecutiveAssistantDirectorPaulAbbate,andNorthernDistrictofCaliforniaU.S.AttorneyBrianStretchduringapressconferenceinWashington,D.C.TheFSBisanintelligenceandlawenforcementagencyoftheRussianFederation,andit’sbelievedthatthetwoFSBofficersworkinanFSBunitthatservesastheFBI’spointofcontactinMoscowoncybercrimematters.AccordingtoMcCord,“TheinvolvementanddirectionofFSBofficerswithlawenforcementresponsibilitiesmakethisconductthatmuchmoreegregious—therearenofreepassesforforeignstate-sponsoredcriminalbehavior.”Accordingtotheindictment,fromaboutApril2014uptoatleastDecember2016,FSBofficersDmitryDokuchaevandIgorSushchindirectedthiscyberintrusionconspiracy—whichinvolvedmaliciousfilesandsoftwaretoolsbeingdownloadedontoYahoo’snetwork—thatresultedinthecompromiseofthatnetworkandthetheftofsubscriberinformationfromatleast500millionaccounts.ThisstoleninformationwasthenusedtoobtainunauthorizedaccesstothecontentsofaccountsatYahoo,Google,andotherwebmailproviders.TheindictmentsaysthatDokuchaevandSushchinpaid,directed,andprotectedtwoknowncriminalhackerswhotookpartinthescheme—AlexseyBelan,aRussiannationalandresident,andKarimBaratov,borninKazakhstanandanaturalizedCanadiancitizenandresident.Belan,whohasbeenindictedtwiceintheU.S.inthepastforcyber-relatedcrimes,iscurrentlyontheFBI’sCyber’sMostWantedlistandisthesubjectofaRedNoticeforInterpolnations,whichincludesRussia.Theinformationstolenfromthe500millionuseraccountscamefromYahoo’sproprietaryuserdatabase,whichcontainedinformationsuchasusers’names,recoverye-mailaddresses,phonenumbers,andcertaininformationneededtomanuallycreateaccountauthenticationwebbrowsercookies.

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Whatweretheallegedperpetratorsafter?Inpart,theyusedaccesstoYahoo’snetworkstoidentifyandaccessaccountsofpossibleinteresttotheFSB,includingthoseofRussianjournalists,U.S.andRussiangovernmentofficials,andemployeesofU.S.,Russian,andotherproviderswhosenetworkstheconspiratorssoughttoexploit.Additionalvictimaccountsbelongedtoprivatesectoremployeesoffinancial,transportation,andothertypesofcompanies.However,theco-conspiratorswerenotaboveusingtheinformationtheystoleforpersonalfinancialgain.Forexample,BelanallegedlysearchedYahoousercommunicationsforcreditcardandgiftcardaccountnumbers.Healsoleveragedthecontactlistsobtainedfromatleast30millionYahooaccountstoperpetratehisownspamscheme.Computerintrusions,bytheirverynature,areinternationalinscope,sotheyrequireaninternationalefforttounmasktheworldwidehackingnetworksresponsibleforthem.Andthiscasewasnodifferent.AbbateexpressedtheBureau’sgratitudetoourinternationalpartnersfortheirassistanceandsupportleadinguptothesecriminalchargestoday—specificallymentioningtheRoyalCanadianMountedPolice,theTorontoPoliceService,andtheUnitedKingdom’sMI5.Anotherimportantaspectofthiscaseinvolvedthevictimcompanies—includingYahooandGoogle—comingforwardandworkingwithlawenforcement.Thiscollaborationultimatelyresultedincounteringthemaliciousactivitiesofstateactorsandbringingcriminalstojustice.ItalsoillustratesthattheFBIcansuccessfullyworkthesekindsofinvestigationswithvictimcompanieswhilerespectingthevariousconcernsandconsiderationsbusinessesmighthaveabouttheimpactofgoingpublic.“Thisisahighlycomplicatedinvestigationofaverycomplexthreat,”saidAbbate.“Itunderscoresthevalueofearly,proactiveengagementandcooperationbetweentheprivatesectorandthegovernment.”AmongtheFBI’smajorinvestigativeprioritiesaretoprotecttheU.S.againstforeignintelligenceoperationsandespionageandtoprotecttheU.S.againstcyber-basedattacksandhigh-technologycrimes.Thiscaseinvolvedboth.Anditdoesn’tmattertouswhethertheperpetratorsofsuchcrimesarerun-of-the-millcriminalsorsophisticatedforeignstatesandtheiragents.Withthehelpofourpartnershereand/orabroad,wewillidentifythoseresponsibleandholdthemaccountablefortheiractions.

4

Yemen Raid on Al Qaeda Led to Laptop Ban

IntelSourcesfearterroristcanmakebombsassmallascomputerbatteries,provokingthebanoncarry-onelectronicsatsensitiveforeignairports.

State Department darkens the briefing room again amid search for new

spokesperson

Lessthanthreeweeksafterresuming,theStateDepartmenthasonceagainstoppedholdingpressbriefingswhiletheagencysearchesforanewspokesperson.Foratleasttwoweeks,officialsattheStateDepartmentwillnotholdapublicbriefing,accordingtoofficialswiththedepartment.Afterthat,itisunclearifbriefingswillresumeimmediatelyandwhatformtheywilltake.Inthemeantime,theStateDepartmenthavebeenbriefingreportersonbackgroundonly,whichmeansofficialscannotbequotedbynameinanynewsstories.Thebriefings,traditionallyteleviseddaily,havebeenafixturesincetheEisenhoweradministration,andarewatchedcloselyinWashington,D.C.,andaroundtheworldforguidanceontheUnitedStates'foreignpolicyandreactiontoworldevents.TheStateDepartmentdidnotholdbriefingsforitsfirstsixandahalfweeksafterTrumptookoffice.Onceitdid,thedepartmenteschewedtraditionandheldonlyfoureachweek,twooncameraandtwooverthephone.MarkToner,acareerforeignserviceofficerwhooftenbriefedreportersundertheObamaadministration,stayedonasactingspokespersonwhenTrumptookoffice.Butnow,Toneristransitioningtoanewassignment,withnoannouncedreplacement.FoxNewsanchorHeatherNauertwasintalkstocomeonboardandwasbeingvetted,asourcetoldABCNewsearlierthismonth.AStateDepartmentofficialwouldonlyconfirmthisweekthatanewspokespersonisintheprocessofbeingvettedandapproved.

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AlexHoward,deputydirectoroftransparencyadvocatetheSunlightFoundation,expressedconcernaboutthelackofbriefings,callingit“anunfortunatecontinuationofwhatwe’veseenfromtheverytopofthisadministration.”“Thisisagreatbriefingthathasadifferentqualityanddepththananyyou’llseeingovernment....ItcontainstheU.S.positiononforeignpolicyissuesthatspantheworld,”hesaid,pointingoutthatembassiestaketheircuesfromthemandthatforeigngovernmentswatchforchangesinAmerica’sposition.“ThesearenotjustKabukisessions.”MichaelAbramowitz,presidentoftheindependentwatchdoggroupFreedomHouse,agreed.“Inmanyways,withthepossibleexceptionoftheWhiteHousespokesperson,theStateDepartmentspokespersonisperhapsthemostimportantintheentireU.S.governmentbecausetheStateDepartmentspokespersonisbasicallysendingoutwhatU.S.foreignpolicyistothewholeworld,”hesaid.ButAbramowitznotedthatitdoestakesometimetotrainanewspokesperson.“[Thesebriefings]areverycomplicated,andit’seasytomakemistakes,”headded.Nooneisyetundergoingtrainingfortherole,StateDepartmentofficialssaid.WhoeverisbehindthepodiumwillbespeakingonbehalfofSecretaryofStateRexTillerson,whohasavoidedthepressandexpressedhisdesiretostayoutofthespotlight,drawingabarrageofcriticismcitingtheimportanceofpublicdiplomacyandadvocatingfortransparencyandpressaccess.SincehewassworninonFeb.1,Tillersonhassofaronlygrantedoneinterview,withareporterfromtheconservativesiteIndependentJournalReviewwhowasalsotheonlyjournalistallowedtotravelwiththesecretaryonhistriptoAsiaearlierthismonth.Onotherpasttrips,theStateDepartmenthaslimitedthenumberofreportersonthesecretary’splanetojustapoolreporter--ajournalistthereonbehalfofallnewsorganizationswhosharestheirreporting.AccordingtoHoward,limitingpressaccesstoTillersonandtheStateDepartmentthreatensAmerica’sabilitytoinfluenceothercountriesontheworldstage.“TillersonisstillactinglikeacorporateCEO....Bynothavingpresswithhim,bynothavingbriefings,orreallyembracingtherolethemediaplays,you’reactuallydiminishingtheimpactofAmericansoftpoweraroundtheworld,”hesaid.

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Ifthetrendcontinues,thereisreasontobeconcerned,saidAbramowitz.“ThesecretarywillfindthatnotonlyisithisresponsibilitytoexplainU.S.policytotheAmericanpublicandthepresscorpsdirectly,butit’salsoinhisinterest,”hesaid.“Alotofthegreatsecretariesofstateofthelast25yearsspoketothepressallthetime,”Abramowitzadded,referencingJamesBakerandHenryKissingerinparticular.“It’spartofthejob.”TillersondefendedhimselfinhisinterviewwithIJR,arguingthathebelievesitisbettertocometothepressoncethedepartmenthasfullyformulatedpolicy.Whenhehassomethingtoshare,hesaid,hewill.WhenTonerwaspressedlastThursdayaboutpressaccess,hisfirstresponsewastocitethebriefingitselfasasignoftheadministration'scommitment."Thisisaforumwherewecantalkaboutforeignpolicy.Ihavetoansweryourquestions,Ihavetodefendourpolicydecisionsacrossabroadspectrumofissues,andthatis,Ithink,atestamenttoourcommitmenttoafreepress,"hesaid.

United States and Laos Hold Inaugural Meeting Under the U.S.-Laos Trade

and Investment Framework Agreement (TIFA)

VIENTIANE,LAOS--TheUnitedStatesandLaostodayheldtheirfirstmeetingundertheU.S.-LaosTradeandInvestmentFrameworkAgreement(TIFA)JointTradeandInvestmentCommittee.TheUnitedStatesemphasizedtheTrumpAdministration’scommitmenttoexpandingtieswithcountriesintheAsia-Pacificregion,andtheUnitedStatesandLaosaffirmedtheirinterestingrowingbilateraltradeandinvestmentbetweenthem,committingtocontinueworkonoutstandingbilateralissues.Themeeting,chairedbyAssistantU.S.TradeRepresentativeBarbaraWeiselandIndustryandCommerceDeputyMinisterSomchithInthamith,included,forLaos,officialsfromtheMinistriesofIndustryandCommerce,ForeignAffairs,ScienceandTechnology,PostandTelecommunications,LaborandSocialWelfare,andAgricultureandForestryand,fortheUnitedStates,officialsfromtheOfficeoftheU.S.TradeRepresentative,theU.S.DepartmentofState,andtheU.S.DepartmentofAgriculture.TheUnitedStatesandLaosdiscussedtheimportanceofexpeditiouslyaddressingkeybilateralissues,includingdigitaltrade,agricultureandsanitaryandphytosanitarystandards,intellectualproperty,autos,investment,goodgovernance,labor,andillegalloggingandwildlifetrafficking.

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TheUnitedStatesandLaosreviewedLaos’simplementationofitsWTOaccessioncommitmentsandtheWTOtradefacilitationagreement,aswellasLaos’sparticipationintheWTOInformationTechnologyAgreement.TheyalsodiscussedtheupcomingU.S.-ASEANTIFAmeetingonMarch30andopportunitiestoadvanceU.S.-ASEANties.BackgroundTheUnitedStatesandLaossignedaTIFAinFebruary2016.Two-waygoodstradebetweentheUnitedStatesandLaosgrewoverfive-foldinthepast10yearsto$86million,withU.S.exportsupmorethan25percentinthelastyear.Two-wayagriculturaltradegrew19-foldinthesameperiodto$6million.

DEPARTMENT OF COMMERCE Bureau of Industry and Security

15CFRPart744[DocketNo.170109042–7255–01]RIN0694–AH30RemovalofCertainPersonsFromtheEntityList;AdditionofaPersontotheEntityList;andEARConformingChangeAGENCY:BureauofIndustryandSecurity,Commerce.ACTION:Finalrule.SUMMARY:ThisruleamendstheExportAdministrationRegulations(EAR)byremovingtwopersonslistedunderthedestinationofChinafromtheEntityList.ThetworemovalsaretheresultofarequestforremovalreceivedbyBISpursuanttothesectionoftheEARusedforrequestingremovalormodificationofanEntityListentryandareviewofinformationprovidedintheremovalrequestinaccordancewiththeprocedureforrequestingremovalormodificationofanEntityListentity.InlightoftherecentsettlementofadministrativeandcriminalenforcementactionsagainstZTECorporationandZTEKangxun,theEnd-UserReviewCommittee(ERC)hasdeterminedthatthesetwopersonsbeingremovedhaveperformedtheirundertakingstotheU.S.GovernmentinatimelymannerandhaveotherwisecooperatedwiththeU.S.Governmentinresolvingthematterwhichledtothetwoentities’listing.ThisfinalrulealsoaddsonepersontotheEntityList.ThispersonwhoisaddedtotheEntityListhasbeendeterminedbytheU.S.GovernmenttobeactingcontrarytothenationalsecurityorforeignpolicyinterestsoftheUnitedStates.ThispersonwillbelistedontheEntityListunderthedestinationofChina.Lastly,thisfinalrulemakesaconformingchangetotheEARasaresultoftheremovalofthesetwopersonsfromtheEntityList.

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Background:

TheEntityList(SupplementNo.4topart744)identifiesentitiesandotherpersonsreasonablybelievedtobeinvolved,ortoposeasignificantriskofbeingorbecominginvolved,inactivitiescontrarytothenationalsecurityorforeignpolicyinterestsoftheUnitedStates.TheEARimposesadditionallicenserequirementson,andlimitstheavailabilityofmostlicenseexceptionsfor,exports,reexports,andtransfers(in-country)tothoselisted.The‘‘licensereviewpolicy’’foreachlistedentityorotherpersonisidentifiedintheLicenseReviewPolicycolumnontheEntityListandtheimpactontheavailabilityoflicenseexceptionsisdescribedintheFederalRegisternoticeaddingentitiesorotherpersonstotheEntityList.BISplacesentitiesandotherpersonsontheEntityListpursuanttosectionsofpart744(ControlPolicy:End-UserandEnd-UseBased)andpart746(EmbargoesandOtherSpecialControls)oftheEAR.

TheEnd-UserReviewCommittee(ERC),composedofrepresentativesoftheDepartmentsofCommerce(Chair),State,Defense,Energyand,whereappropriate,theTreasury,makesalldecisionsregardingadditionsto,removalsfrom,orothermodificationstotheEntityList.TheERCmakesalldecisionstoaddanentrytotheEntityListbymajorityvoteandalldecisionstoremoveormodifyanentrybyunanimousvote.

ERCEntityListDecisions

RemovalsFromtheEntityList

ThisruleimplementsadecisionoftheERCtoremovethefollowingtwoentriesfromtheEntityList:ZhongxingTelecommunicationsEquipment(ZTE)CorporationandZTEKangxunTelecommunicationsLtd.ThesetwoentitieswereaddedtotheEntityListonMarch8,2016(see81FR12006).

TheU.S.GovernmentrecentlyreachedanagreementwithZTECorporationandZTEKangxunforthesettlementofadministrativechargesandentryofaguiltypleainacriminalcaseagainstthecompanies.OnMarch7,2017,SecretaryofCommerceWilburL.Ross,Jr.,issuedastatementregardingthesettlementandguiltyplea,whichresultedinaverysubstantialmonetarypenalty,intrusiveindependentmonitoring,andadditionalsuspendedpenaltiesthatwillbeimposedifZTEfailstomeetitsobligationsorfurtherviolatesU.S.exportcontrols.

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Inlightofthesettlement,theERChasdeterminedthatZTECorporationandZTEKangxunhaveperformedtheirundertakingstotheU.S.GovernmentinatimelymannerandhaveotherwisecooperatedwiththeU.S.Governmentinresolvingthematterwhichledtothetwoentities’listing.Therefore,theERChasdecidedtoremovethesetwoentitiesfromtheEntityList.

ThisfinalruleimplementsthedecisiontoremovethefollowingtwoentitieslocatedinChinafromtheEntityList

Country:

CHINA,PEOPLE’SREPUBLICOF

Entity:

ShiLirong,YuanzhongGardenTowerA,Room26A,Futian,Shenzhen,China;andXinghaiMingcheng,2ndFloor,Shenzhen,China.

LicenseRequirement:

ForallitemssubjecttotheEAR.(See§744.11oftheEAR).

LicenseReviewPolicy:

Presumptionofdenial.

FederalRegistercitation:

82FR[INSERTFRPAGENUMBER];March29,2017.

15CFRPart744

[DocketNo.170103009–7300–02]

RIN0694–AH28

RemovalofCertainPersonsFromtheEntityList

AGENCY:BureauofIndustryandSecurity,Commerce.

ACTION:Finalrule.

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EIB World Trade H

eadlines Evolutions In Business • w

ww

.eib.com • (978) 256-0438 • P.O

. Box 4008, Chelmsford, M

A 01824

SUMMARY:ThisruleamendstheExportAdministrationRegulations(EAR)byremovingsevenpersonsundertenentriesfromtheEntityList.ThisruleremovesfourpersonslistedunderthedestinationofGermany,onepersonlistedunderthedestinationofHongKong,onepersonlistedunderthedestinationofIndia,onepersonlistedunderthedestinationofSingapore,onepersonlistedunderthedestinationofSwitzerland,andtwopersonsunderthedestinationoftheUnitedArabEmiratesfromtheEntityList.ThethreeadditionalentriesarebeingremovedtoaccountfortwopersonslistedundermorethanonedestinationontheEntityList.AllsevenoftheremovalsaretheresultofrequestsforremovalreceivedbyBISpursuanttothesectionoftheEARusedforrequestingremovalormodificationofanEntityListentityandareviewofinformationprovidedintheremovalrequestsinaccordancewiththeprocedureforrequestingremovalormodificationofanEntityListentity.Background:TheEntityList(SupplementNo.4topart744)identifiesentitiesandotherpersonsreasonablybelievedtobeinvolved,ortoposeasignificantriskofbeingorbecominginvolved,inactivitiescontrarytothenationalsecurityorforeignpolicyinterestsoftheUnitedStates.TheEARimposesadditionallicenserequirementson,andlimitstheavailabilityofmostlicenseexceptionsfor,exports,reexports,andtransfers(in-country)tothoselisted.The‘‘licensereviewpolicy’’foreachlistedentityorotherpersonisidentifiedintheLicenseReviewPolicycolumnontheEntityListandtheimpactontheavailabilityoflicenseexceptionsisdescribedintheFederalRegisternoticeaddingentitiesorotherpersonstotheEntityList.BISplacesentitiesandotherpersonsontheEntityListpursuanttosectionsofpart744(ControlPolicy:End-UserandEnd-UseBased)andpart746(EmbargoesandOtherSpecialControls)oftheEAR.TheERC,composedofrepresentativesoftheDepartmentsofCommerce(Chair),State,Defense,Energyand,whereappropriate,theTreasury,makesalldecisionsregardingadditionsto,removalsfrom,orothermodificationstotheEntityList.TheERCmakesalldecisionstoaddanentrytotheEntityListbymajorityvoteandalldecisionstoremoveormodifyanentrybyunanimousvote.

ERCEntityListDecisionsRemovalFromtheEntityListThisruleimplementsadecisionoftheERCtoremovethefollowingtenentriesfromtheEntityListonthebasisofremovalrequestsreceivedbyBIS:IndustrioGmbH,MartinHess,PeterDuenker,andWilhelm‘‘Bill’’Holler,alllocatedinGermany;FrankGenin,locatedinHongKongandtheU.A.E.(whichaccountsfortwooftheentriesthisfinalruleremoves);BeaumontTradingAG,locatedinIndia,Switzerland,andtheU.A.E.(whichaccountsforthreeoftheentriesthisfinalruleremoves);andAmandaSng,locatedinSingapore.ThesesevenpersonsundertenentrieswereaddedtotheEntityListonMarch21,2016(see81FR14958).TheERCdecidedtoremovethesesevenpersonsundertenentriesbasedoninformationreceivedbyBISpursuantto§744.16oftheEARWebNotice:TheDirectorateofDefenseTradeControls(DDTC)iscurrentlyintheprocessofmodernizingitsITsystems.Duringthistimeperiod,weanticipatetheremaybedelaysinresponsetimesandtimetoresolveITrelatedincidentsandrequests.Weapologizeforanyinconvenience,andappreciateyourpatiencewhileweworktoimproveDDTCservices.Ifyouneedassistance,pleasecontacttheDDTCServiceDeskat(202)663-2838,oremailatDtradeHelpDesk@state.gov(06.28.16)

NOTE:InaccordancewithTitle17U.S.C.Section107,thismaterialisdistributedwithoutprofitorpaymentfornon-profitnewsreportingandeducationalpurposesonly.

Reproductionforprivateuseorgainissubjecttooriginalcopyrightrestrictions.

“Change is inevitable. Progress is optional.”

– Tony Robbins