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Why general motors (gm) stock is a compelling investment case.

If you are looking for the best ideas for your portfolio you may want to consider some of Greenlight Capital's top stock picks. Greenlight Capital, an investment management firm, is bullish on General Motors Co (NYSE: GM ) stock. In its Q4 2019 investor letter – you can download a copy here – the firm discussed its investment thesis on General Motors Co (NYSE: GM ) stock. General Motors Co (NYSE: GM ) is the world’s largest vehicle manufacturing company. The stock is down 28.2% since the Greenlight Capital's pitch in January 2020, which suggests the investment firm was wrong in its decision. On a year-to-date basis, General Motors Co (NYSE: GM ) stock has fallen by 32.1%.

On January 21, 2020, Greenlight Capital had released its Q4 2019 Investor Letter. Greenlight Capital said that General Motors Co (NYSE: GM ) stock is poised to grow in 2020. This isn't the first time Greenlight Capital talked about General Motors Co (NYSE: GM ) favorably either. The investment firm has been a long time General Motors Co (NYSE: GM ) bull. In 2018, we shared Greenlight Capital's bullish General Motors Co (NYSE: GM ) thesis in this article .

In 2019, the Greenlight Capital Fund recorded a return of 13.8% as compared to 31.5% of the S&P 500 Index.

Let’s take a look at comments made by Greenlight Capital about General Motors Co (NYSE: GM ) in the letter.

"We have owned GM for a number of years and our investment has underperformed the market (our return to date has been 10.6%, annualized). Every year the shares seemed cheap on an earnings basis, but cash flow ultimately came up short for one reason or another. An unprofitable region or two was sold or restructured, investments were made in new technologies, plants and product lines required capital investment, GM Financial required capital to grow, and pension plans were funded. All of these steps have led to a stronger company that can better face future economic and business challenges. However, the net result of so many cash needs is that while earnings have been good, cash flow has lagged. Management recognizes this disconnect, and in early 2019, the company emphasized that cash flow must better match earnings. As we looked at the company’s forecast, we saw no more regions requiring expensive restructuring, and the above-normal capital and strategic investments appeared to be paid for. As such, we believed that by late 2019 the cash flow would again be significant enough to allow GM to recommence its share repurchase program. We half-asked and half-joked, what would cause cash to come up short in 2019? We couldn’t think of anything. And then a six-week-long strike hit that caused GM to miss its earnings forecast and come up woefully short on free cash flow – again. And yet, we believe 2020 is the year where it all finally comes together for GM. The fullsize pickup truck and SUV platforms have been fully updated. Channel inventory is low and dealers need to rebuild supply that was reduced during the strike. The restructuring is complete. China sales appear likely to stabilize and ultimately recover. GM Financial is performing well and is over-capitalized and poised to start distributing 100% of earnings. While consensus estimates are for $6.36 per share in earnings in 2020, we believe earnings could surpass $7.00 in 2020 and finally – yes, finally – cash flow should also approach that level. As such, GM should begin repurchasing shares at a healthy clip, providing a tailwind for future EPS growth. Not included in any of this is GM Cruise, which is still targeting a commercial launch of autonomous vehicles. We doubt the market has any optimism about GM Cruise, despite a $19 billion valuation in a May 2019 investment round. The recognition of GM Cruise as a source of material value is an additional way for investors to re-rate GM shares."

In Q1 2020, the number of bullish hedge fund positions on General Motors Co (NYSE: GM ) stock decreased by about 29% from the previous quarter ( see the chart here ), so a number of other hedge fund managers don't seem to agree with GM's growth potential. Our calculations showed that General Motors Co (NYSE: GM ) isn't ranked among the 30 most popular stocks among hedge funds .

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds' poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

At Insider Monkey we scour multiple sources to uncover the next great investment idea. There is a lot of volatility in the markets and this presents amazing investment opportunities from time to time. For example, this trader claims to deliver juiced up returns with one trade a week, so we are checking out his highest conviction idea . A second trader claims to score lucrative profits by utilizing a "weekend trading strategy", so we look into his strategy's picks . We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. We recently recommended several stocks partly inspired by legendary Bill Miller's investor letter . Our best call in 2020 was shorting the market when the S&P 500 was trading at 3150 in February after realizing the coronavirus pandemic’s significance before most investors. You can subscribe to our free enewsletter below to receive our stories in your inbox:

Disclosure: None. This article is originally published at Insider Monkey .

Writing a Credible Investment Thesis

Only a third of acquiring executives actually write down the reasons for doing a deal.

By David Harding and Sam Rovit

November 15, 2004

Every deal your company proposes to do—big or small, strategic or tactical—should start with a clear statement how that particular deal would create value for your company. We call this the investment thesis. The investment thesis is no more or less than a definitive statement, based on a clear understanding of how money is made in your business, that outlines how adding this particular business to your portfolio will make your company more valuable. Many of the best acquirers write out their investment theses in black and white. Joe Trustey, managing partner of private equity and venture capital firm Summit Partners, describes the tool in one short sentence: "It tells me why I would want to own this business."

Perhaps you're rolling your eyes and saying to yourself, "Well, of course our company uses an investment thesis!" But unless you're in the private equity business—which in our experience is more disciplined in crafting investment theses than are corporate buyers—the odds aren't with you. For example, our survey of 250 senior executives across all industries revealed that only 29% of acquiring executives started out with an investment thesis (defined in that survey as a "sound reason for buying a company") that stood the test of time. More than 40% had no investment thesis whatsoever (!). Of those who did, fully half discovered within three years of closing the deal that their thesis was wrong.

Studies conducted by other firms support the conclusion that most companies are terrifyingly unclear about why they spend their shareholders' capital on acquisitions. A 2002 Accenture study, for example, found that 83% of executives surveyed admitted they were unable to distinguish between the value levers of M&A deals. In Booz Allen Hamilton's 1999 review of thirty-four frequent acquirers, which focused chiefly on integration, unsuccessful acquirers admitted that they fished in uncharted waters. They ranked "learning about new (and potentially related) business areas" as a top reason for making an acquisition. (Surely companies should know whether a business area is related to their core before they decide to buy into it!) Successful acquirers, by contrast, were more likely to cite "leading or responding to industry restructuring" as a reason for making an acquisition, suggesting that these companies had at least thought through the strategic implications of their moves.

Not that tipping one's hat to strategy is a cure-all. In our work with companies that are thinking about doing a deal, we often hear that the acquisition is intended for "strategic" reasons. That's simply not good enough. A credible investment thesis should describe a concrete benefit, rather than a vaguely stated strategic value.

A credible investment thesis should describe a concrete benefit, rather than a vaguely stated strategic value. This point needs underscoring. Justifying a deal as being "strategic" ex post facto is, in most cases, an invitation to inferior returns. Given how frequently we have heard weak "strategic" justifications after a deal has closed, it's worth passing along a warning from Craig Tall, vice chair of corporate development and strategic planning at Washington Mutual. In recent years, Tall's bank has made acquisitions a key part of a stunningly successful growth record. "When I see an expensive deal," Tall told us, "and they say it was a 'strategic' deal, it's a code for me that somebody paid too much."

And although sometimes the best offense is a good defense, this axiom does not really stand in for a valid investment thesis. On more than a few occasions, we have been witness to deals that were initiated because an investment banker uttered the Eight Magic Words: If you don't buy it, your competitors will.

Well, so be it. If a potential acquisition is not compelling to you on its own merits, let it go. Let your competitors put their good money down, and prove that their investment theses are strong.

Let's look at a case in point: [Clear Channel Communications' leaders Lowry, Mark and Randall] Mayses' decision to move from radios into outdoor advertising (billboards, to most of us). Based on our conversations with Randall Mays, we summarize their investment thesis for buying into the billboard business as follows:

Clear Channel's expansion into outdoor advertising leverages the company's core competencies in two ways: First, the local market sales force that is already in place to sell radio ads can now sell outdoor ads to many of the same buyers, and Clear Channel is uniquely positioned to sell both local and national advertisements. Second, similar to the radio industry twenty years ago, the outdoor advertising industry is fragmented and undercapitalized. Clear Channel has the capital needed to "roll up" a significant fraction of this industry, as well as the cash flow and management systems needed to reduce operating expenses across a consolidated business.

Note that in Clear Channel's investment thesis (at least as we've stated it), the benefits would be derived from three sources:

Leveraging an existing sales force more extensively
Using the balance sheet to roll up and fund an undercapitalized business
Applying operating skills learned in the radio trade

Note also the emphasis on tangible and quantifiable results, which can be easily communicated and tested. All stakeholders, including investors, employees, debtors and vendors, should understand why a deal will make their company stronger. Does the investment thesis make sense only to those who know the company best? If so, that's probably a bad sign. Is senior management arguing that a deal's inherent genius is too complex to be understood by all stakeholders, or simply asserting that the deal is "strategic"? These, too, are probably bad signs.

Most of the best acquirers we've studied try to get the thesis down on paper as soon as possible. Getting it down in black and white—wrapping specific words around the ideas—allows them to circulate the thesis internally and to generate reactions early and often.

The perils of the "transformational" deal. Some readers may be wondering whether there isn't a less tangible, but equally credible, rationale for an investment thesis: the transformational deal. Such transactions, which became popular in the exuberant '90s, aim to turn companies (and sometimes even whole industries) on their head and "transform" them. In effect, they change a company's basis of competition through a dramatic redeployment of assets.

The roster of companies that have favored transformational deals includes Vivendi Universal, AOL Time Warner (which changed its name back to Time Warner in October 2003), Enron, Williams, and others. Perhaps that list alone is enough to turn our readers off the concept of the transformational deal. (We admit it: We keep wanting to put that word transformational in quotes.) But let's dig a little deeper.

Sometimes what looks like a successful transformational deal is really a case of mistaken identity. In search of effective transformations, people sometimes cite the examples of DuPont—which after World War I used M&A to transform itself from a maker of explosives into a broad-based leader in the chemicals industry—and General Motors, which, through the consolidation of several car companies, transformed the auto industry. But when you actually dissect the moves of such industry winners, you find that they worked their way down the same learning curve as the best-practice companies in our global study. GM never attempted the transformational deal; instead, it rolled up smaller car companies until it had the scale to take on a Ford—and win. DuPont was similarly patient; it broadened its product scope into a range of chemistry-based industries, acquisition by acquisition.

In a more recent example, Rexam PLC has transformed itself from a broad-based conglomerate into a global leader in packaging by actively managing its portfolio and growing its core business. Beginning in the late '90s, Rexam shed diverse businesses in cyclical industries and grew scale in cans. First it acquired Europe's largest beverage—can manufacturer, Sweden's PLM, in 1999. Then it bought U.S.-based packager American National Can in 2000, making itself the largest beverage-can maker in the world. In other words, Rexam acquired with a clear investment thesis in mind: to grow scale in can making or broaden geographic scope. The collective impact of these many small steps was transformation. 14

But what of the literal transformational deal? You saw the preceding list of companies. Our advice is unequivocal: Stay out of this high-stakes game. Recent efforts to transform companies via the megadeal have failed or faltered. The glamour is blinding, which only makes the route more treacherous and the destination less clear. If you go this route, you are very likely to destroy value for your shareholders.

By definition, the transformational deal can't have a clear investment thesis, and evidence from the movement of stock prices immediately following deal announcements suggests that the market prefers deals that have a clear investment thesis. In "Deals That Create Value," for example, McKinsey scrutinized stock price movements before and after 231 corporate transactions over a five-year period. The study concluded that the market prefers "expansionist" deals, in which a company "seeks to boost its market share by consolidating, by moving into new geographic regions, or by adding new distribution channels for existing products and services."

On average, McKinsey reported, deals of the "expansionist" variety earned a stock market premium in the days following their announcement. By contrast, "transformative" deals—whereby companies threw themselves bodily into a new line of business—destroyed an average of 5.3% of market value immediately after the deal's announcement. Translating these findings into our own terminology:

Expansionist deals are more likely to have a clear investment thesis, while "transformative" deals often have no credible rationale.
The market is likely to reward the former and punish the latter.
The dilution/accretion debate. One more side discussion that comes to bear on the investment thesis: Deal making is often driven by what we'll call the dilution/accretion debate. We will argue that this debate must be taken into account as you develop your investment thesis, but your thesis making should not be driven by this debate.

Sometimes what looks like a successful transformational deal is really a case of mistaken identity. Simply put, a deal is dilutive if it causes the acquiring company to have lower earnings per share (EPS) than it had before the transaction. As they teach in Finance 101, this happens when the asset return on the purchased business is less than the cost of the debt or equity (e.g., through the issuance of new shares) needed to pay for the deal. Dilution can also occur when an asset is sold, because the earnings power of the business being sold is greater than the return on the alternative use of the proceeds (e.g., paying down debt, redeeming shares or buying something else). An accretive deal, of course, has the opposite outcomes.

But that's only the first of two shoes that may drop. The second shoe is, How will Wall Street respond? Will investors punish the company (or reward it) for its dilutive ways?

Aware of this two-shoes-dropping phenomenon, many CEOs and CFOs use the litmus test of earnings accretion/dilution as the first hurdle that should be put in front of every proposed deal. One of these skilled acquirers is Citigroup's [former] CFO Todd Thomson, who told us:

It's an incredibly powerful discipline to put in place a rule of thumb that deals have to be accretive within some [specific] period of time. At Citigroup, my rule of thumb is it has to be accretive within the first twelve months, in terms of EPS, and it has to reach our capital rate of return, which is over 20% return within three to four years. And it has to make sense both financially and strategically, which means it has to have at least as fast a growth rate as we expect from our businesses in general, which is 10 to 15% a year.

Now, not all of our deals meet that hurdle. But if I set that up to begin with, then if [a deal is] not going to meet that hurdle, people know they better make a heck of a compelling argument about why it doesn't have to be accretive in year one, or why it may take year four or five or six to be able to hit that return level.

Unfortunately, dilution is a problem that has to be wrestled with on a regular basis. As Mike Bertasso, the head of H. J. Heinz's Asia-Pacific businesses, told us, "If a business is accretive, it is probably low-growth and cheap for a reason. If it is dilutive, it's probably high-growth and attractive, and we can't afford it." Even if you can't afford them, steering clear of dilutive deals seems sensible enough, on the face of it. Why would a company's leaders ever knowingly take steps that would decrease their EPS?

The answer, of course, is to invest for the future. As part of the research leading up to this book, Bain looked at a hundred deals that involved EPS accretion and dilution. All the deals were large enough and public enough to have had an effect on the buyer's stock price. The result was surprising: First-year accretion and dilution did not matter to shareholders. In other words, there was no statistical correlation between future stock performance and whether the company did an accretive or dilutive deal. If anything, the dilutive deals slightly outperformed. Why? Because dilutive deals are almost always involved in buying higher-growth assets, and therefore by their nature pass Thomson's test of a "heck of a compelling argument."

As a rule, investors like to see their companies investing in growth. We believe that investors in the stock market do, in fact, look past reported EPS numbers in an effort to understand how the investment thesis will improve the business they already own. If the investment thesis holds up to this kind of scrutiny, then some short-term dilution is probably acceptable.

Reprinted with permission of Harvard Business School Press. Mastering the Merger: Four Critical Decisions That Make or Break the Deal , by David Harding and Sam Rovit. Copyright 2004 Bain & Company; All Rights Reserved.

David Harding (HBS MBA '84) is a director in Bain & Company's Boston office and is an expert in corporate strategy and organizational effectiveness.

Sam Rovit (HBS MBA '89) is a director in the Chicago office and leader of Bain & Company's Global Mergers and Acquisitions Practice.

10. Joe Trustey, telephone interview by David Harding, Bain & Company. Boston: 13 May 2003. Subsequent comments by Trustey are also from this interview.

11. Accenture, "Accenture Survey Shows Executives Are Cautiously Optimistic Regarding Future Mergers and Acquisitions," Accenture Press Release, 30 May 2002.

12. John R. Harbison, Albert J. Viscio, and Amy T. Asin, "Making Acquisitions Work: Capturing Value After the Deal," Booz Allen & Hamilton Series of View-points on Alliances, 1999.

13. Craig Tall, telephone interview by Catherine Lemire, Bain & Company. Toronto: 1 October 2002.

14. Rolf Börjesson, interview by Tom Shannon, Bain & Company. London: 2001.

15. Hans Bieshaar, Jeremy Knight, and Alexander van Wassenaer, "Deals That Create Value," McKinsey Quarterly 1 (2001).

16. Todd Thomson, speaking on "Strategic M&A in an Opportunistic Environment." (Presentation at Bain & Company's Getting Back to Offense conference, New York City, 20 June 2002.)

17. Mike Bertasso, correspondence with David Harding, 15 December 2003.

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General Motors Stock Pitch Presentation

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The presentation that I am submitting is a stock pitch that is going over my analysis of General Motors. The main goal of the presentation is to analyze the given company and its industry and then develop an investment thesis that provides a buy/sell recommendation.

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Writing a Credible Investment Thesis

by David Harding and Sam Rovit

Every deal your company proposes to do—big or small, strategic or tactical—should start with a clear statement how that particular deal would create value for your company. We call this the investment thesis . The investment thesis is no more or less than a definitive statement, based on a clear understanding of how money is made in your business, that outlines how adding this particular business to your portfolio will make your company more valuable. Many of the best acquirers write out their investment theses in black and white. Joe Trustey, managing partner of private equity and venture capital firm Summit Partners, describes the tool in one short sentence: "It tells me why I would want to own this business." 10

Perhaps you're rolling your eyes and saying to yourself, "Well, of course our company uses an investment thesis!" But unless you're in the private equity business—which in our experience is more disciplined in crafting investment theses than are corporate buyers—the odds aren't with you. For example, our survey of 250 senior executives across all industries revealed that only 29 percent of acquiring executives started out with an investment thesis (defined in that survey as a "sound reason for buying a company") that stood the test of time. More than 40 percent had no investment thesis whatsoever (!). Of those who did, fully half discovered within three years of closing the deal that their thesis was wrong.

Studies conducted by other firms support the conclusion that most companies are terrifyingly unclear about why they spend their shareholders' capital on acquisitions. A 2002 Accenture study, for example, found that 83 percent of executives surveyed admitted they were unable to distinguish between the value levers of M&A deals. 11 In Booz Allen Hamilton's 1999 review of thirty-four frequent acquirers, which focused chiefly on integration, unsuccessful acquirers admitted that they fished in uncharted waters. 12 They ranked "learning about new (and potentially related) business areas" as a top reason for making an acquisition. (Surely companies should know whether a business area is related to their core before they decide to buy into it!) Successful acquirers, by contrast, were more likely to cite "leading or responding to industry restructuring" as a reason for making an acquisition, suggesting that these companies had at least thought through the strategic implications of their moves.

A credible investment thesis should describe a concrete benefit, rather than a vaguely stated strategic value.

This point needs underscoring. Justifying a deal as being "strategic" ex post facto is, in most cases, an invitation to inferior returns. Given how frequently we have heard weak "strategic" justifications after a deal has closed, it's worth passing along a warning from Craig Tall, vice chair of corporate development and strategic planning at Washington Mutual. In recent years, Tall's bank has made acquisitions a key part of a stunningly successful growth record. "When I see an expensive deal," Tall told us, "and they say it was a 'strategic' deal, it's a code for me that somebody paid too much." 13

Well, so be it. If a potential acquisition is not compelling to you on its own merits, let it go. Let your competitors put their good money down, and prove that their investment theses are strong.

Let's look at a case in point: [Clear Channel Communications' leaders Lowry, Mark, and Randall] Mayses' decision to move from radios into outdoor advertising (billboards, to most of us). Based on our conversations with Randall Mays, we summarize their investment thesis for buying into the billboard business as follows:

Clear Channel's expansion into outdoor advertising leverages the company's core competencies in two ways: First, the local market sales force that is already in place to sell radio ads can now sell outdoor ads to many of the same buyers, and Clear Channel is uniquely positioned to sell both local and national advertisements. Second, similar to the radio industry twenty years ago, the outdoor advertising industry is fragmented and undercapitalized. Clear Channel has the capital needed to "roll up" a significant fraction of this industry, as well as the cash flow and management systems needed to reduce operating expenses across a consolidated business.

Note that in Clear Channel's investment thesis (at least as we've stated it), the benefits would be derived from three sources:

Leveraging an existing sales force more extensively
Using the balance sheet to roll up and fund an undercapitalized business
Applying operating skills learned in the radio trade

Note also the emphasis on tangible and quantifiable results, which can be easily communicated and tested. All stakeholders, including investors, employees, debtors, and vendors, should understand why a deal will make their company stronger. Does the investment thesis make sense only to those who know the company best? If so, that's probably a bad sign. Is senior management arguing that a deal's inherent genius is too complex to be understood by all stakeholders, or simply asserting that the deal is "strategic"? These, too, are probably bad signs.

The perils of the "transformational" deal . Some readers may be wondering whether there isn't a less tangible, but equally credible, rationale for an investment thesis: the transformational deal. Such transactions, which became popular in the exuberant '90s, aim to turn companies (and sometimes even whole industries) on their head and "transform" them. In effect, they change a company's basis of competition through a dramatic redeployment of assets.

In a more recent example, Rexam PLC has transformed itself from a broad-based conglomerate into a global leader in packaging by actively managing its portfolio and growing its core business. Beginning in the late '90s, Rexam shed diverse businesses in cyclical industries and grew scale in cans. First it acquired Europe's largest beverage-can manufacturer, Sweden's PLM, in 1999. Then it bought U.S.–based packager American National Can in 2000, making itself the largest beverage-can maker in the world. In other words, Rexam acquired with a clear investment thesis in mind: to grow scale in can making or broaden geographic scope. The collective impact of these many small steps was transformation. 14

By definition, the transformational deal can't have a clear investment thesis, and evidence from the movement of stock prices immediately following deal announcements suggests that the market prefers deals that have a clear investment thesis. In "Deals That Create Value," for example, McKinsey scrutinized stock price movements before and after 231 corporate transactions over a five-year period. 15 The study concluded that the market prefers "expansionist" deals, in which a company "seeks to boost its market share by consolidating, by moving into new geographic regions, or by adding new distribution channels for existing products and services."

On average, McKinsey reported, deals of the "expansionist" variety earned a stock market premium in the days following their announcement. By contrast, "transformative" deals—whereby companies threw themselves bodily into a new line of business—destroyed an average of 5.3 percent of market value immediately after the deal's announcement. Translating these findings into our own terminology:

Expansionist deals are more likely to have a clear investment thesis, while "transformative" deals often have no credible rationale.
The market is likely to reward the former and punish the latter.

The dilution/accretion debate . One more side discussion that comes to bear on the investment thesis: Deal making is often driven by what we'll call the dilution/accretion debate . We will argue that this debate must be taken into account as you develop your investment thesis, but your thesis making should not be driven by this debate.

Sometimes what looks like a successful transformational deal is really a case of mistaken identity.

Simply put, a deal is dilutive if it causes the acquiring company to have lower earnings per share (EPS) than it had before the transaction. As they teach in Finance 101, this happens when the asset return on the purchased business is less than the cost of the debt or equity (e.g., through the issuance of new shares) needed to pay for the deal. Dilution can also occur when an asset is sold, because the earnings power of the business being sold is greater than the return on the alternative use of the proceeds (e.g., paying down debt, redeeming shares, or buying something else). An accretive deal, of course, has the opposite outcomes.

But that's only the first of two shoes that may drop. The second shoe is, How will Wall Street respond? Will investors punish the company (or reward it) for its dilutive ways?

It's an incredibly powerful discipline to put in place a rule of thumb that deals have to be accretive within some [specific] period of time. At Citigroup, my rule of thumb is it has to be accretive within the first twelve months, in terms of EPS, and it has to reach our capital rate of return, which is over 20 percent return within three to four years. And it has to make sense both financially and strategically, which means it has to have at least as fast a growth rate as we expect from our businesses in general, which is 10 to 15 percent a year. Now, not all of our deals meet that hurdle. But if I set that up to begin with, then if [a deal is] not going to meet that hurdle, people know they better make a heck of a compelling argument about why it doesn't have to be accretive in year one, or why it may take year four or five or six to be able to hit that return level. 16

Unfortunately, dilution is a problem that has to be wrestled with on a regular basis. As Mike Bertasso, the head of H. J. Heinz's Asia-Pacific businesses, told us, "If a business is accretive, it is probably low-growth and cheap for a reason. If it is dilutive, it's probably high-growth and attractive, and we can't afford it." 17 Even if you can't afford them, steering clear of dilutive deals seems sensible enough, on the face of it. Why would a company's leaders ever knowingly take steps that would decrease their EPS?

[ Buy this book ]

David Harding (HBS MBA '84) is a director in Bain & Company's Boston office and is an expert in corporate strategy and organizational effectiveness.

Sam Rovit (HBS MBA '89) is a director in the Chicago office and leader of Bain & Company's Global Mergers and Acquisitions Practice.

10. Joe Trustey, telephone interview by David Harding, Bain & Company. Boston: 13 May 2003. Subsequent comments by Trustey are also from this interview.

11. Accenture, "Accenture Survey Shows Executives Are Cautiously Optimistic Regarding Future Mergers and Acquisitions," Accenture Press Release, 30 May 2002.

12. John R. Harbison, Albert J. Viscio, and Amy T. Asin, "Making Acquisitions Work: Capturing Value After the Deal," Booz Allen & Hamilton Series of View-points on Alliances, 1999.

13. Craig Tall, telephone interview by Catherine Lemire, Bain & Company. Toronto: 1 October 2002.

14. Rolf BÃ¶rjesson, interview by Tom Shannon, Bain & Company. London: 2001.

15. Hans Bieshaar, Jeremy Knight, and Alexander van Wassenaer, "Deals That Create Value," McKinsey Quarterly 1 (2001).

16. Todd Thomson, speaking on "Strategic M&A in an Opportunistic Environment." (Presentation at Bain & Company's Getting Back to Offense conference, New York City, 20 June 2002.)

17. Mike Bertasso, correspondence with David Harding, 15 December 2003.

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An analysis of General Motors’ information systems and their usage for the firm’s wider strategic objectives

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Causes of Insolvencies in Large Businesses. A Case Study of General Motors

Master's thesis, 2012, makboolbhai masi (author).

1.0 Chapter 1 - Introduction 1.1 Study Background 1.2 Rationale 1.3 Aims and Objectives 1.4 Organisational profile:

2.0 Chapter 2 - Literature review 2.1 Introduction 2.2.1 Impact of economic and financial crisis on large organisations 2.2.2 Capitalism and market economy 2.2.3 Strategic management 2.2.4 Financial management 2.2.5 Bankruptcy and Insolvency 2.2.6 Closure and divestment 2.3 Conclusion (summary of the literature review)

3.0 Chapter 3 - Methodology 3.1 Introduction 3.2 Research philosophy 3.3 Data Collection 3.4 Research design 3.5 Study Limitations and conclusion

4.0 Chapter 4 - Findings and Analysis 4.1 Introduction 4.2 Presentation of Data and Analyses 4.3 Comparison between General Motors and Toyota 4.4 Trend analysis 4.5 Questionnaires 4.6 Discussion of results

5.0 Chapter 5: Integrative Analysis and Discussion

6.0 Chapter 6: Conclusion

7.0 References

8.0 Bibliography

9.0 Appendix

This dissertation is dedi cated to my beloved parents, Ibrahimbhai and Halimben. Without their emotional support and love it was not p ossible for me to s tudy and re search this valuable prospect of my life. I also remember my maternal uncle Kifaytullah, unfortunately he is not with us in this world and left his remembrance behind. He actually had dreamed for me to study in London for my MBA.

Acknowledgements

This could not be possible without support of my colleagues and family. I would like to express thanks to my lecturers who taught me this subject and guided in the research and writing of this report. I am also grateful to my family especially my wife who provided me with great support during my entire project.

I would also like to m ention the name of my lecturer, Mr. Na zimudeen Saleem whose assistance encouraged me to complete this project successfully. With his assistance I was able to write my dissertation. I also express my sincere gratitude to my participants who responded with their best views and spent ti me for survey. I also express my thanks to m y brother Aslam, Akil and friend Rafaqat who helped me in distribution and collection of my survey.

I would also like to mention that all th e work of this report is solely my own work and in cases where I have taken assistance from other sources of data, it is appropriately referenced in my report.

Finally, I want to show my special gratitude to my children Mohammad and Fahim for instructing me to use some features o f Microsoft word and excel, which were unknown to me.

This report has intentionally been written for those large organisations, which run at risk of failure. World one of the biggest car and truck manufacturing company, General Motors has been chosen as a case study. The reason behind selection of GM as a ca se study is its 100 years of long history, business operations in 158 countries across the w orld and filing for bankruptcy petition in year 2009 in an around th e time of financial crisis of US. Therefore, financial data fo r three consecutive years of GM before its applicat ion of chapter 11 bankruptcy petition have been analysed and compared with its global competitor Toyota for comprehensive judgement. Another investigation is made by analysing the various currencies and important commodity trends against US dollar. This is done to know, how fluctuation in exchange rate of various currencies influence the performance of multinationals. Finally for generalisation, a survey has been carried out on the bases of various literature reviews, financial ratios and currency trend analysis.

In addition to previous re searches, which were limited to only financial ratios, this research has been ex panded beyond financial and included external factors such as economic, capitalism and currency fluctuations.

An insight of various disciplines, which ha ve always been n eglected has taken as an empirical and found the diverse conclusion. Whole research prospers through four different segments; from various literature reviews, to financial ratio analysis, examinations of various currencies and commodities and finally questionnaire survey.

Subsequent to research an imperative outcome has been realized. This exploration suggests that for survival of large businesses knowledge of economic is cruc ial besides financial planning and management. Therefore, large organisation should keep self-regulation to exploit available cre dit facility and do not exceeds its debts beyond certain agreed limits. While taking strategic decision, it is crucial to analyse base currency and its long term trends. Finally, multinationals should always implement innovation practices for their existence.

1.0 Chapter 1 - Introduction

1.1 study background.

Currently world is being challenged by various economic factors. US struggles to come up from the world l argest bankruptcy incidents happened in 2008-09 recession. And European countries are tackling with euro zone debt crisis. According to Giles ( FT, 2011) Europ ean crisis will be worse than that was in 2008-09.

It has been argued that economic crisis is a natural phenomenon which takes place on certain period and it is part of the capitalist systems. According to Gamble (1989) capitalism as world system has suffered twenty such general crisis of over production since 1825. They have become progressively more s evere, because the scales of produ ction and degree o f interdependence have grown during every period of expansion (p.7). Consequently, various recessions take place at certain times and th ey left their shockin g effects thereafter. Researchers do investigations from those incidents and come up with new models thereafter.

In 2008, the recession has exposed various corporate weaknesses. During this financial crisis lot of companies were risked by the government. Amongst them world’s fifth largest chapterll bankruptcy filing came out from the world’s dominant car and truck manufacturing company General Motors, which had 100 years of long history. At the time of GM’s bankruptcy filing its assets remained only $82.3billion while liability reached at $172.8billion, which was more than double of its assets.

Despite numerous researches have been carried out in this area, there are still companies going bankrupt. Just last year Dexia has to be rescued by Franco-Belgium government and later on 31 st, October, 2011 MF Global Holdings filed its petition for protection under

Chapter 11 bankruptcy in the US. This in cident became the 8th largest bankruptcy in US history (Edwards, City A.M., 2011).

The mystery is still puzzling because some companies are survived in recession while some have been collapsed. It is obvious that, businesses have their challenges and they go through various stages: growing, maturity and declining. These stages are varied in length of time for organisations. Business survival depends upon the interna l and ex ternal factors of organisation. Some orga nisation fails before reaching their m aturity while some survives even in its declining stage.

However, it is argued that organisations face major challenges in their declining stage. Large organisations acquire expertises while growing and to compete with their rivals on the bases of their capabilities and core te chnologies. Organisations generally have to implement changes at every stage for their sustenance. But at saturation or ganisations are being challenged by lower percentage growth. Thus it needs to implement major chan ges to immerge from complexity of uncertainty either by choice of innovation or reorganisation. Some organisations adopt innovations in their products/services or operations and choose to diversify to maintain the percentage growth. However Innovation and diversification require huge investments. So me organisations go for second option; reorganisation. But reorganisation brings shaking effect of redundancy. Those organisations which do not involve in any change and stick to their old strategy will go towards their demise.

However there is a debate amongst the researchers regarding causes of failure. Some give blame to exter nal environmental factors while others to in ternal factors. In this report researcher will try to solve this mystery with exploring number of issues and accomplished to offer his decision. Finally, the paramount probable causes of insolvencies in large businesses will be recommended.

1.2 Rationale

Justification of this study:

This study is imperative in current scenario because incidents of corpor ate collapses still continue and myth is still puzzling despite technological development and advancement in information communication technology (ICT). Various questions provoke in the mind of researcher regarding frequent insolvency incidents of multinationals, hence he seeks to find answers through this research project. Therefore, researcher is projected to analyze this complexity with strategic, financial, and economic point of view.

Reason behind selection of General Motors as a case study is its bankruptcy petition after 100 years of its succ essful history. GM has its business operations in 158 countries and manufacturing units in 3 1 countries across the world. The questions crop up in the mind of researcher: why expertise, capability and knowledge of General Motors remained inefficient to manage the adverse situation.

Research problems:

It has been argued that every organisation has to taste of its own demise, sooner or later. The question is how far an organisation can survive. Is there any technique available to extend life cycle of organisation.

According to Alan Gre enspan, large financial institutions should be deliberately broken up: “If they’re too big to fail, because they’re too big”. He believed that “Failure is an integral part, a necessary part of a market system,” (Bloomberg, 2009). While, Vestergaard (2009) believes failure due to too big phenomenon has been replaced by too reliance of finan cial institution. He says if more counter-cyclical mode of international financial regulation is introduced in the nea r future, it may reduce large-scale financial institution collapses, but it will hardly eliminate any and all need for future government bail outs.

Above two different views indicate that to reduce the failure of large institutions either it should be broken up bec ause author believes that it is easy to manage individual rather than whole organisation while other view blemish to too much inter-depend ency of Financial institutions and sug gest that it should be regularised and controlle d to minimi se such incidents.

Thus, Researcher wants to identif y the limi tations of capitalist s ystems, nature of contemporary economic structure and their func tional character to scrutinize the causes of failure for large organisations. Researcher realizes that business man agement for large organisation should neither be limited in few disciplines nor be ignored to consider changing environmental factors.

This study is sought to determine following problems:

1) Why management of General Motors would remain unsuccessful to access adverse economic environment of 2008-09 financial crises? 2) Why the capabilities, expertise and lon g experience of this big organisation would remain inefficient? 3) Which factors management should being observed which may influence the performance of company?

According to researcher, this research is important because, sudden failures of large companies surge catastrophe in the society, in the nation and around the globe. In addition the failures of large companies generate huge unemployment, loss of investors’ equity; affect country’s GDP, economy and much more.

Significance or Importance:

The case of GM aroused interest to the stake holders as well as others, because sequence of filing bankruptcy petitions by corporate is still continue. Researcher is also interested to investigate the reasons behind corporate failure as a part of his study of MBA and his personnel curiosity to know the truth.

This research is imperative for researcher and large businesses because this research will be helpful to those large bu sinesses which are at their declining stage or run at risk of failure. This research will also be usef ul for decision making for large businesses. Researcher believes that the outco mes of this re search will be utilised to identif y the risk for organisations and offer solutions accordingly.

Researcher has selected following instruments for this study.

1.3 Aims and Objectives

The purpose of th e study is to find a solution of insolvency incidents happening in contemporary globalised and c apitalist world. Constantly changing environment produces newest principles which need to be identified by synthesising various literature, theories and researches related to subject. Therefore, this research is intended to come up with a model to give advance warning sign if a company runs at risk of failure. The whole exercised is also intended to find out the big mistakes of regarding corporate failure so businesses can b e cautious to avoid such exercises. In short, researcher is aimed to draw a conclusion for various causes of insolvencies in large businesses.

To achieve the purpose following path of objectives will be carried out;

1) To critically analyse the key factors challenging the survival of organisation 2) To assess organisational effectiveness & survival using financial ratios 3) Examine effect of USD (exchange) fluctuation on performance of multinationals

1.4 Organisational profile

General Motors Corporation was established by William Billy Durant in 1908 in USA. It’s headquarter is in Detroit, USA. General Motors is also known as GM , which is among the biggest manufacturer of the world automobile in dustry. GM produces cars and trucks in 31 countries and operates its business in 158 countries around the world. GM owns various brands like Buick, Opel, Chevrolet, GMC, Holden, Vauxhall, Hummer etc. GM h as discontinued number of brands, sold few and focuses mainly on Chevrolet, Buick, Cadillac and GMC. It has played dominant role in world automobile market share and remained no.1 for eight decades in auto-vehicle production. According to OICA 2010 GM has achi eved no.2 rank in automobile vehicle produ ction after Toyota with 10.9% market share and 8,476,192 units of productions. GM employs more than 202,000 employees (General Motors website, GM.com).

According to GM press release on 12 J anuary 2012, it has achieve d its previous rank of world no.1 vehicle prod ucer by selling 9,025,942 vehicles in 2011 b y increasing its sale to 7.6%. The major sales went up in its Chevrolet division (Green Car Congress, 2012).

It is renowned that General Motors Corporation has filed for its bankruptcy petition on 1st June 2009 for its American unit. New General Motors Company has been allowed to carry its operation by bankruptcy court on 10th July 2009. New GM has been immer ged with major shares of US treasury, Canadian government and UAW retiree medical benefit trust (General Motors website, GM.com).

In bankruptcy petition for reorganisation GM’s liability ($172.8billion) was exceeded double than its assets ($82.3billion).

GM produces 61 t ypes of vehicles such as Sedans, Sport/C onvertible, Coup,

Hatchback/Wagons, Crossovers, SUVs, Pick-up trucks, Vans and Hybrid & Electric with seating capacity ranging from 2 to 8+ and Cargo 5 to 41 cu ft. It produces with 100 to 400+ horse power and towing 3000 to 20,000 lbs (General Motors website, GM.com).

Past performance:

According to annu al report 2007, GM g lobal market share for its veh icle sales in North America was 48.2%, 23.8% in Europe, 15.3% in Asia Pacific and 13.2% in Latin America, Africa and Middle East. It means more than half of its business wa s in rest of the wo rld except North America. Annual report of 2007 suggests that GM has d one its automotive business of $178 billion in year 2007, which is only $7 billion better than 2006, while total revenue generated was $181 billion. This is ve ry low as compare to $206 bill ion in year 2006. The report states that the adjusted earnin g of automotive section excluding special items are $533 million in 2007. Report exerts that they made huge improvement of $900million in 2007 co mpared to 2006 in di fficult economic situation where commodity prices were booming and consumers were losing their confidence. Report presumes the effect of this trend on their future. GM incurred net loss of $38,732million in 2007 as comp are to profit $1978million made in 2006 (GM, annual report, 2007:5-7).

According to annual report 2010, company has retained its no.1 position for six consecutive years in BRIC nations. Besides its leading market share in North America in 2010, GM has captured 12.8% market share in China in last decade and increased its 60% sales volume year over year with gaining 0.6 point market shar e in India. GM has attained its one of the top position with 19% market share in Brazil and 15.6% in Canada (GM Annual Report 2010).

Future strategy of General Motors:

According to annual report (GM, 2007: 47 -61) future strategy of GM was to achieve sustainable profitability and g rowth with maintaining liquidity. This report stressed on growth of the market and expansion of its products by implementing innovation in the products. It is stated that GM’s future strategy in US is to offer 17 models in the US market and introduce 25 new models with ethanol en abled flex fuel cars and trucks ar ound the world. In between 2007 and 2010 th ey are planning to introduce 16 new hybrid vehicles. Report exerts the willingness of boost in cas h flow for positive business. The re port has forecasted solid growth in 2008 which will be driven by their global operation in the world except North America. GM also planned to reduce structural cost in Am erica by $ 5 billion by 2011. GM forecasts that by 2017 they will achieve the target of more than half market participation of total industrial sales and so they plan for major role in this growth.

In annual report 2010 the mission of compa ny is clearly asserted with realisation of past mistakes. New GM is intended to max imize its resources and talent with limiting its brands from eight to four for its North American port folio. They realised the drawback of over capacity and hence wished for elimination of overcapacity in manufacturing operations. The strategy of new GM is to invest for high quality product through dropping sales incentives (GM annual report 2010:6).

Risk factors and Management:

It is important to mak e strategy in exposure to volatility of currency exchange value, commodity prices and intere st rates for multinationals. New and Old b oth GM have risk management policy. Both entered in foreig n currency exchange, interest rate, commodity forward contracts and options in exposure to fluctuation in prices of currencies, commodities and interest rates. However both did not enter into derivative transac tions. Regarding commodity risk old and new GM h ave different strategy. Old GM entered into swaps an d options while new GM entered into commodity options. Old GM had and new GM has Risk Management Committee to assess the risk regarding market shift through sensitivity analysis model (Annual report 2007:77, 2010:109).

2.0 Chapter 2 - Literature review

2.1 introduction.

Researcher is intended to refine his research questions and objectives to generate various ideas about different reasons of organisational failures. Hence, in this chapter, researcher will critically review various literatures to identify different theories and ideas. Then, broad investigation will be car ried out in accordan ce to find re search possibility to identify what have been overlooked in previous researches and what have been already done. This will help researcher to avoid repeating task and motivate researcher to identify what researcher really wants. Finally it will be helpful to discover ex plicit recommendations for further research (Saunders et al 2009:61).

This, Literature review is important for researcher to re cognize lacking in theories and previous researches as well as it will be helpful to identify the gap between theory and practice.

Rousseau (2006) has drawn an attention on r esearch-practice gap. She found that the managers and organisation practices on the base s of evidence rather than research made in that field. She ex tols the virtue of evidence based management, which derives principles from research outcomes and transform them into practices that solve org anisational problems. Her argument is that research finding do not appear to have transferred well to the workplace. She argues that managers and organisation depends on their ex perience rather than systematic knowledge gained by research. (Saunders et al. 2009:7)

Similar thing might be happened with selected organisation (GM) to discuss the f ailure of strategy. General Motors has enjoyed dominant role in automotive industr y, from last century. The incident of bankruptcy petition filing via Chapter 11 on June 8, 2009 was unexpected for stakeholders of GM and re st of the business commun ity. This incident suggests that GM might not be acknowledged the contemporary latest research and relied in its practices based on previous experience.

Whilst this research is on fa ilure of business this literature review will offer a number of insights into various th eories relating to the basic principle of businesses, fundamental theories and concepts. This literature review has been specifically carried out particularly for established and large corporate, which fear crisis and its implications.

In following liter ature reviews the impact of economic and financial crisis on large organisations has been discussed to identif y the risk for large organisations. Then, profit economy has been discussed to understand th e role of profit in failure of businesses. Literature on capitalism has been conversed to identify the characteristics and limitations of capitalism to identify the strategic choices for corporate. Other literature on strategy and finance are discussed to understand the mistakes related to strategic and financial decision making.

2.2.1 Impact of economic and financial crisis on large organisations

Saleem (2011) in his book raises the question, about large organisations, which have their high debt-equity ratios in ex cess of national debt ratios. He write s ‘whether these organisations can survive and continue to exist in the long run’? He further argues ‘can we afford to let them fail? While they enjoy such dominance in the wo rld economy, because when they fail, the tricking effects and the consequences are not just in one nation but many’. In his wr iting, it appears that the g lobal system is desig ned such a wa y that large organisations are running without proper contro l of g overnment or in other word these organisations have such influence on global system where no regulation be applicable to them. In this run the y incur high debt ratio sometime this ratio ex ceeds to national debts. These debts create shortage of finance, ultimately results in failure (p. 11).

Author sees problems in institutional and organisational issues of global business and politics and the consequences of advance technology rather than economic cycle (p.20).

Vestergaard (2009) states that ‘inter dependence in the international financial system is today so profound that the previous too big to fa il doctrine has in effect been replaced with a too interdependent to fail doctrine. The past decade has witnessed a de facto institutionalization of government bail-outs of financial institutions. In his view if more counter-cyclical mode of international financial regulation is introduced in the near future, it may reduce large-scale financial institution collapses. Further he argues that it will hardl y eliminate any and all needs for future government bail outs’ (p.246-247).

From Vestergaard writing it appears that financial regulation will work as buffer but will not provide permanent solution for future government bail outs.

Saleem (2011) sees the root cause of problems in accumulation of surpluses b y transnational corporations. He explains, ‘besides secure to shareholders interest, transnational corporations accumulate enormous surpluses’ and ‘such giant corporations find it difficult to spend or invest the money that they accumulate due to the prolonging economic crisis.’ He argues that ‘some organisation give away dividend to its shareholders, while some diversified into banks and financial institution s and sold their surpl uses as cre dit, other face the problems of saturation in terms of company growth’. He argues that this credit becomes as a popular commodity of capitalist economy. Author argues that one of the maj or pillars of economy is capital but today it comes as a credit instead of real money to aid investment (p. 11).

Thus, in the name of free market we have overused of this credit. Every country in the word is became debtor nation with an overall debt of over $25 trillions. Some Ve teran countries enjoys a debt ra tios of over 70% and even 100% and poor nations or newcomers are not allowed by market system if they exceed the limits (Saleem, 2011:11), which creates economics imbalance in the market and disturbs the economic cycle (p.11).

Therefore, Alan Greenspan (2009) suggests that the financial institutions should be broke up because it is difficult to grip on large organisations due to their complexity and it will be easy to manage smaller. His argument is on his strong belief of ‘failure is integral part o f market system’.

In interpretation of the recent crisis, Meeusen (2011) believes that excess of liquidity and low interest rate brought changes in stock market and house hold sector. (p.108). Thus, author’s view indicates that too much liquidity and low interest rate may results in bust.

But according to Mattick (1981) Crisis is an outcome of capitalist development system and acts as a regulator for the capital accumulation process. Thus he b elieves that corporate should keep being observed crisis c ycle how it asserted and how it has been ex plained in economic theory (p.4).

While explaining the reasons of B ritish crisis, Hodgson (1981) identifies the following causes of the British crisis: 1.Policy mistakes of government and civil servants; 2. Excessive taxation; 3. Excessive government spending; 4. High degree of penetration by multinational firms; 5. A decline in corporate profits; 6. Insufficient investment; 7. The streng th and resistance of the trade unions (p.142).

Hodgson (1981) writes that the inescapable conclusion is that the capital has been transferred because of unfavourable conditions for production and profit within the British economy.

From, above literature r eview it is summaris ed that performance of large businesses and national economy have strong inter-relations and both influence e ach other. Accumulated surpluses by large businesses endanger the national economy and in return national economy tries to influence the global economy.

Regarding economic crisis authors make following arguments,

Mattick writes this crisis takes a position outsi de the field of economic a nd create crisis all over the world for years (p.40). He argues that even this crisis asserted economically through social relations of production it cannot be considered purely economic (Mattick 1981:p.76).

According to Saleem (2011) the variables that determine the laws of economics changing fast and there are many more to identified now on a dail y basis. And he writes ‘trans- national corporations are so powerful than the nations or states in global market, which have revenue and GDP and market capitalisation much more than almost tw o-third of all the nation states in the world. Some of organisation are so bi g in generating their r evenue, like Ge neral electric corporations, had a market value of over $340 billion US and the Microsoft corporation nearing $3 billion US in August 2004 (WSJ market data group). He states the total value of market capitalisation of just the 15 largest corporations listed in the market data group of the wa ll street Journal in August 31, 2004, was over $3 trilli on US. He further writes the sales of the largest 200 corporation in year 2000 exceeded the total GDP of 182 countries of the world except the largest nine’ (p. 10).

In a view of Mattick (1981) in capitalist system, crisis cannot be ignored because it is the part of market system as it is the characteristic of capitalist system.

Thus, it is summarised that economi c crisis is a product of accumul ation of capit al and manipulations of credit facilities by transnational organisations. Thus, it is confirmed that the root cause of current economic crisis is associated with accumulations of capitals, increased freedom to ex ploit the global market and m anipulations of cre dit system by large organisations.

2.2.2 Capitalism and market economy

Mattick (1981) explains that according to classical theory accumulation of capital have certain limits, whereby it manifests itself in declining of profit (p.15). According to Recardo (1962) the rate of profit is the driving force of production in capitalist system but same time this basic principle is en dangered with increasing production and thereb y accumulation of capital (Mattick 1981:P.254).

Mattick (1981) in his book explains reasons for profit fall; first, due to incr easing competition and rents. And second, due to increa sing wage. He argues that there should be balance between marginal productivity and wages of labour. If marginal productivity increased beyond the wages of labour, the demand of labour is increas ed. But if wages of labour exceed than ma rginal productivity, the demand of labour d ecreased. Marginal productivity is the wage paid to the labour at the time. In conclusion, he writes ‘all production is only for the sake of consumption’ (p. 15).

Thus, it indicates that the profit decreases with increase of competition as well as increase in wages and re nts. Simultaneously it suggests that there should be proper balance b etween marginal productivity and wages given to labour. Author sees in broad perspective in view of crisis, he thinks that the buying power of people should be maintain by giving proper wages to labour, because labours ultimately forms the society, where products have to consume. His finding suggests that if wages will not be given according to productivity, the buying power of people will be re duced and products produced will not be consumed in the market. This once again will effect to the producer.

He argues that increased profit accumulates the capital. And the search of profit serve the society because profit is g enerated by people therefore it need to impro vement in living condition of communit y. This pursue s the rule of economics; suppl y and demand. This exchange is considered as general competition, which regulates the economic framework and enhance the social development (Mattick 1981:p.23).

The self equilibrium principle of classical theory is confronted with intractable reality. Where the accumulation process does not go easily but passes through intermittent path. According to Ricardo market economy is balanced by law of self equilibrium process and every supply gets it equivalent demand. Increased production disturbs the market equilibrium temporary and balanced with pric e fall, but there w ould be no over production or over suppl y in the market. Because every product is produced for the consumption and therefore it will find it s demand. In short according to Ricardo there is no over production and no crisis but there is interruption of partial disequilibrium (Mattick 1981:p.25-26).

Thus, it is summarised that there is no economic crisis in classical theory given by Ricardo.

Mattick argues that Profit is the difference between market prices and cost prices and. The value of business or firm is estimated b y its future profit ra ther than actually earned. Therefore firm’s so called capital value is differed from its actual value. As a result firm incurs its borr owing or determine it c redit worthiness accordingly. Competitions force to increase production and expansion of business, therefore estimated future profitability will be distressed and firm will be endangered until it has enough money to be borrowed. Therefore the value of an organisation is estimated b y its expected future profit rather than it actually earns. If major deviation will realised between exaggerated capital value and actual profit of firm, then it will lead to liquidation (Mattick 1981:p.36)

Thus prosperity and growth of firm uproar until productivity and profit i ncrease. This leads to increase in its cr edit until the contraction of profits. B ut meanwhile, if there is rise in interest rate or inflation the loan capital become scarce, which causes to sink in profit either due to rising in labour wag es or de creasing productivity. This is the additional re asons of dropping profitability resulting from production itself, due to excited character of the boom (Mattick 1981:37)

Therefore it is summarised that if overall production is increased beyond capacity of market consumption, it will bring dreadful impact on producers. Thus it seeks a ppropriate balance between production and consumption. And it is somehow beyond the power of organisations.

Capitalist system:

To analyse the business success and failure it is vital to have knowledge of capitalist system, its basic principles and its limitations.

According to Younkins (2002) the survival an d flourishing of busines s as an institutio n depends upon concepts and moral values that provide the foundation upon which c apitalist society is constructed. He further writes Capitalism is hasted on freedom of choice, it allows for morality and character development- a key aspect of human flourishing. In addition, by permitting free market transactions, capitalism allows commerce to develop business in a free society not onl y requires, but also rewa rds, virtuous behaviour b y participants in the market (p.1).

While, Westra (2010) argues; ‘after all, Marx’s very notion of successive historical modes of production captures the fact that, as a historically constituted social order, capitalism comes into being at a given level of development of human material wants an productive techniques and, like other modes o f economics, passes from history as its abilit y to manage human material reproductive affairs is exhausted. What this volume demonstrates is the fact that the historical limitations of capitalism have already been reached’ (p.4).

The defining of capital in its most fundamental incarnation and expounding on its constant; and an analysis of the world historic transfigurations of capitalism which establish how through significantly different type of accumulation capital is nevertheles s able to continue reproductive human economic life - it is possible to demonstrate con clusively that current world economic tendencies euphemised as g lobalisation constitute a mov ement away from capitalism (Westra 2010:6).

Finally, Westra (2010) concludes the economic force created by multinationals are so powerful that governments seem to act as me re mediator of globalisation, where global market has created a borderless world (p.98).

According to Gamble (1989) capitalism as world s ystem has suffered twenty such general crisis of over production since 1825. They have become progressively more severe, because the scales of production and degree of interdependence have grown during every period of expansion (p.7).

Coates et al (1986) write that, as a world system, capitalism necessarily develops in a combined but uneven way, and is subject to process of capital accumulation (and geographical relocation) which move r esources away from some e conomies and towards others; such that industri al production is someth ing which has to be capt ured and retained, and can be so onl y by the provision of suit able kind of social, economic and political environments.

From above analysis it appears that political power becomes ineffective to control the overproduction of multinationals and to provide healthy business environment.

2.2.3 Strategic management

Today’s environment is becoming more and more competitive, due to advancement of technology and globalisation. In this globalised world companies are facing challenges from internal factors due to increased completion, organised labour unions, financial problems and continuous change in external factors such as political, economical, social and technological.

To cope with this threat, leadership and management of companies should keep long-term, flexible, proactive and visionary strategic approach.

According to Johnson et al. (2008 ) strategy is long-term path of an organisation to sustain competitive advantage in changing environment according to market demand and stakeholder expectations (p.3).

According to this definition, three factors interplay; external environment, internal resources and organisation objectives. In this process operation management involves to org anise internal resources to meet external environment to achieve organisation mission. Success for organisation depends upon the abilit y of operation management, because it is the important part of organisation strategy.

It is considered that strategy involves three levels in organisation; corporate level, business level and functional level.

There are four diffe rent characteristics of strategy; long term, flexible, proactive and visionary. In view of Chandler (1962) strategy is long term planning of organisation on the base of organisation mission. He argues that it involves strong coordination of organisation mission, aim and organisational structure.

The strategy of General Motors befor e bankruptcy can be identified b y its annual re port (2007). In this report it appears that GM is g iven more priority to improve its business in North America. GM also emphases on achieving global competitiveness, positioning for profitability and long-term growth while maintaining liquidity. To bring back to profitability of General Motors North America, this annual report suggests that they are working towards return to pro fitability and increase in posit ive cash flow by various action targeting improving product and innovating marketing strategy. They also p lan to g ive more importance on quality reduction of cost and solve the issue of h ealth care. (GM, annual report: 2007).

While Lamb (1984) argues that strategic planning requires pro-activeness of controlling and evaluation of business in accordance with market challenges and competitions, therefore it requires amendments on regular bases either quarterly or yearly. His approach is flexible and suggests implementation of new strategy by replacing old one to meet ongoing economic, political, social, financial and technological challenges.

The assessment of GM s trategy can be done by analysing its financial data. The successful outcomes of strategy can be realised, when better financial returns would gain according to company’s mission and goal.

According to Selznick (1957) organisational strategy should be matched its internal factors with external environmental conditions.

There are various factors which may influence on the or ganisation. They are known as external factors, which are identified b y macro analysis and interna l factors which ar e identified by five forces framework. External environment factors are known as PESTEL. PESTEL is known for political, economical, social, technological, environmental and legal. (Thomas, S. 2007:pp9-21)

According to Johnsons et al. (2008) many of them are interlinked and it is vital to investigate the key drivers to change. It is necessary to evaluate the current and future trend of external factors and its implication on org anisation. These environmental factors cannot be changed by the organisation but on the contrary organisation must adopt the path according to external environment for its existence (p.55-56).

It is observed that General Motors was facing challenges of external environment in US such as weak economic environment, higher gas prices, big alteration in housing policy, and continuously decreasing purchasing power of consumers. In this report they say that they are dedicated to build their future with keep continuing necessary actions, at the same time, they will take action regarding difficult U.S. market conditions” (Annual report 2007 p.11).

Johnson et al. (2008) argue that strategy need involvement of people f or decision and its implementation. They further state th at strategic management is likely to appl y at any complex situation in org anisation. They believe strategic management is not limited to operation (p. 11).

Johnson et al. (2008) write strate gic management involves at three different levels of organisation; to understand strategic position, selection of strategic choices and managing strategy in action (p.12).

While thinking about strategic choices it is crucial to identify the opportunity and threats for the organisation from the environmental analysis. SWOT can be utilised for organisation’s strategic formulation. SWOT analysis involves the ex ploration of str ength, weakness, opportunity and threat for organisation (Johnsons et al. 1980:p.81).

According to Ansoff (1965) strategic management can be utilise d for up-coming opportunities and challenges of organisation. He developed ‘gap reducing action’ technique by which we can analyse where organisations are currently and where it should like to be. This is also called gap analysis technique.

To attain best performance in ever changing environment management of organisation should shape the organisation strategically by planning and implementing firm’s asset for its establishment and development. It involves well-known economic principal for strategic management decision to allocate the firm’s resources (Teece 1998:3). Thus, the notion that a firm can choose from a finite set of strategies implies that firm’s resources and capabilities are not completely fungible and generalizable, certainly in the short run , if not the long run (p.4).

He further argues that organisation should be held its resource based approach not to compete the new entry or increase in p rices but to provide good quality products with better performance to the customers. Thus, organisation needs to invest in superior system and set a structure accordingly for profitability. (Teece,1998:201).

While explaining importance of econo mic in strategic management Teece (1998) writes; economic knowledge is embedded with strat egic management especially in research program. This is required to understand the performance of organisation or its products and operation systems. Economic knowledge is also useful to anal yse experience curve, the changing characteristic of economic, determination of profit and the changing climate within business schools. To ex amine current organisation position and foresee future prospect it is vital to combine s trategic management with knowledge of economic. It seems necessity to alliance of economic a nd strategic management to succ eed practical and intellectual challenges that will shape future dev elopment. Therefore it necessitates the acknowledgement of micro economic theory of organisation as well as market in the mind of business managers.

According to Rutherford (1995) ‘Economic theory defines an industry as a group of firms producing the same principal product’ while, Porter (1980 ) argues that ‘a group of firms producing products that are close substitutes for each other’ (p.5).

Johnsons et al. (1998) believe that to understand t he attractiveness of industry or competitive forces in sector from strategic perspective is imperative and on it dep ends the success or failure of organisation.

Porter’s essential message is that where the five forces in the industry are high, then industry are not attractive to compete in: the threat of entry into an industry; the threats of substitutes to the industry’s products or services; the power of suppliers into the industry; and the extent of rivalry between competitors (Johnson et al. 1998:p.61)

To understand the failure of an organisation, study of strategic drift in organisation is helpful to understand why organisation runs out of stream, the reasons and consequences. (Johnsons et al. 2008: p.179).

According to Miller et al (1980) there is a propensity for strategies to develop on the basis of what the organisation has done in the past - especially if that has been successful (p.591614).

Thus, large organisation which h as long experience makes incremental changes on its cultural influences. At certain time th e gap between amount of change between environmental change and organisational change widens.

According to D anny Miller pursuing strategy on its past succ ess with rigidity will upset businesses and this happens in the cases of most successful companies. He further states that these companies may drift in this way. Miller (1990) has called this t endency as Icarus Paradox, where businesses become captured by the formula that has delivered that success.

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Title: Causes of Insolvencies in Large Businesses. A Case Study of General Motors

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Why General Motors (GM) Stock is a Compelling Investment Case

Published on july 8, 2020 at 11:50 am by alex smith in hedge fund investor letters , news.

If you are looking for the best ideas for your portfolio you may want to consider some of Greenlight Capital’s top stock picks. Greenlight Capital, an investment management firm, is bullish on General Motors Co (NYSE: GM ) stock. In its Q4 2019 investor letter – you can download a copy here – the firm discussed its investment thesis on General Motors Co (NYSE: GM ) stock. General Motors Co (NYSE: GM ) is the world’s largest vehicle manufacturing company. The stock is down 28.2% since the Greenlight Capital’s pitch in January 2020, which suggests the investment firm was wrong in its decision. On a year-to-date basis, General Motors Co (NYSE: GM ) stock has fallen by 32.1%.

On January 21, 2020, Greenlight Capital had released its Q4 2019 Investor Letter. Greenlight Capital said that General Motors Co (NYSE: GM ) stock is poised to grow in 2020. This isn’t the first time Greenlight Capital talked about General Motors Co (NYSE: GM ) favorably either. The investment firm has been a long time General Motors Co (NYSE: GM ) bull. In 2018, we shared Greenlight Capital’s bullish General Motors Co (NYSE: GM ) thesis in this article .

In 2019, the Greenlight Capital Fund recorded a return of 13.8% as compared to 31.5% of the S&P 500 Index.

Let’s take a look at comments made by Greenlight Capital about General Motors Co (NYSE: GM ) in the letter.

“We have owned GM for a number of years and our investment has underperformed the market (our return to date has been 10.6%, annualized). Every year the shares seemed cheap on an earnings basis, but cash flow ultimately came up short for one reason or another. An unprofitable region or two was sold or restructured, investments were made in new technologies, plants and product lines required capital investment, GM Financial required capital to grow, and pension plans were funded. All of these steps have led to a stronger company that can better face future economic and business challenges. However, the net result of so many cash needs is that while earnings have been good, cash flow has lagged. Management recognizes this disconnect, and in early 2019, the company emphasized that cash flow must better match earnings. As we looked at the company’s forecast, we saw no more regions requiring expensive restructuring, and the above-normal capital and strategic investments appeared to be paid for. As such, we believed that by late 2019 the cash flow would again be significant enough to allow GM to recommence its share repurchase program. We half-asked and half-joked, what would cause cash to come up short in 2019? We couldn’t think of anything. And then a six-week-long strike hit that caused GM to miss its earnings forecast and come up woefully short on free cash flow – again. And yet, we believe 2020 is the year where it all finally comes together for GM. The fullsize pickup truck and SUV platforms have been fully updated. Channel inventory is low and dealers need to rebuild supply that was reduced during the strike. The restructuring is complete. China sales appear likely to stabilize and ultimately recover. GM Financial is performing well and is over-capitalized and poised to start distributing 100% of earnings. While consensus estimates are for $6.36 per share in earnings in 2020, we believe earnings could surpass $7.00 in 2020 and finally – yes, finally – cash flow should also approach that level. As such, GM should begin repurchasing shares at a healthy clip, providing a tailwind for future EPS growth. Not included in any of this is GM Cruise, which is still targeting a commercial launch of autonomous vehicles. We doubt the market has any optimism about GM Cruise, despite a $19 billion valuation in a May 2019 investment round. The recognition of GM Cruise as a source of material value is an additional way for investors to re-rate GM shares.”

In Q1 2020, the number of bullish hedge fund positions on General Motors Co (NYSE: GM ) stock decreased by about 29% from the previous quarter ( see the chart here ), so a number of other hedge fund managers don’t seem to agree with GM’s growth potential. Our calculations showed that General Motors Co (NYSE: GM ) isn’t ranked among the 30 most popular stocks among hedge funds .

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

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Disclosure: None. This article is originally published at Insider Monkey .

NYSE:GM Yahoo Finance Daily Newsletter

AI Fire Sale: Insider Monkey’s #1 AI Stock Pick Is On A Steep Discount

Published on may 1, 2024 at by inan dogan, phd.

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General Motors: Cruise Is The Differentiator, Not EVs

Despite more clarity, question marks continue to remain over the ability of General Motors' ability to execute its EV strategy in the short-term.
In the meantime, the company's robotaxi division Cruise continues to quietly grow behind the scenes.
The market is focusing too much on GM's EV strategy when in reality, Cruise is likely to be the company's true differentiator.
From a valuation standpoint, the stock appears to be undervalued.

Self-driving Chevrolet Bolt by Cruise Automation undergoing testing in San Francisco. The vehicle is equipped with numerous Velodyne LiDAR sensors

Investment Thesis

General Motors' ( NYSE: GM ) recent quarterly performance highlighted how the semiconductor issue continues to be a concern. However, the re-affirmation of the FY22 guidance implies that the company's management believes that they would be able to overcome this issue and that the company's pricing power will still exist. In this article, I analyze the company's prospects further down the road and argue why investors should be more excited about the company's robotaxi division Cruise than the company's EV strategy.

GM's EV Strategy Looks Unconvincing In The Near-Term

After the first quarter, there were more questions than answers with respect to GM's EV strategy. This was addressed, to some extent, by CEO Mary Barra during the analyst call held post the release of Q2 earnings . More specifically, she announced that GM would be able to undertake seven-day operations at the company's first Ultium plant in just a matter of weeks. The company then plans to add 20% to the plant's capacity every quarter and is expected to reach the full 35 GWpH capacity by the fourth quarter of FY23.

Ms. Barra also announced that the company is on track to open the second Ultium plant in Tennessee by next year, that the initial work is underway for its third plant in Michigan, and that the company is looking for potential destinations for its fourth Ultium plant. Once all four plants are fully functional, the company's projected total battery capacity would be 160 GW.

In addition to updating investors on the status of the Ultium plants, Ms. Barra also announced three binding agreements with the suppliers of the raw materials that are required to manufacture the batteries. The first agreement was with LG Chem, who have signed to supply GM with approximately 1 million tons of cathode material between now and 2030. The second agreement was with POSCO Chemical who have agreed to supply GM with CAM, which are critical components of a battery consisting of lithium and nickel, from their Korean operations from 2023 to 2025. Finally, the company also signed with Livent to secure significant quantities of Lithium. If these agreements are executed, then according to Ms. Barra, GM has enough battery raw materials to support their goal of 1 million units in annual capacity in North America in 2025.

It is indeed heartening to see that GM's CEO provided investors with some key information related to its EV strategy this time around, especially since, post the release of Q1 earnings, she dodged the question regarding the specific quantities that were secured, at the time, to achieve the company's goal of 400,000 EVs over the course of 2022 and 2023. However, given the ongoing semiconductor issues, there are still question marks over whether this goal will be achieved. Moreover, GM has, till date, delivered 7,674 EVs, with 457 delivered in Q1 and 7,217 EVs delivered in Q2 . Assuming that the company doubles EV production in Q3 and Q4, thanks to its first Ultium plant starting its operations, this would imply total EV deliveries of 50,000 for 2022. This means that the company will have to somehow manage the ongoing semiconductor issues and deliver another 350,000 in 2023 to meet this goal. Even if the company does manufacture 400,000 EV units by the end of 2023, the question is whether the company can deliver them or whether they are going to sit at the factory waiting for the chips? This is where my skepticism lies.

Furthermore, for the entirety of 2021, GM delivered 2.2 million vehicles in the United States. In 2022, as of the end of Q2, the company has delivered 1.1 million vehicles in the United States. EVs accounted for 0.7% of the total deliveries. Assuming the company maintains the same sequential growth rate this year, it's on track to deliver 2.5 million vehicles. And given my earlier assumption, 50,000 EVs would be 2% of that figure.

Assuming that things do improve in 2023, in my best-case scenario, GM delivers 3.75 million vehicles, representing an increase of 50%. If it delivers the said 350,000 EVs, that would be nearly 10% of the total sales. Given that as things stand, the Silverado EV is coming in only by Q2 of next year and the Blazer and Equinox are coming on sale only by Q3/Q4 of next year, I am not sure how the company is going to achieve a 5x jump in the proportion of EV sales relative to total sales.

GM Cruise: The Catalyst That Deserves More Credit

In my opinion, there is one segment of the company that is not being fully appreciated by the market due to its obsession with the EV strategy: GM's Robotaxi service Cruise. Cruise entered commercial operations in June of this year and is currently in talks with regulators to increase the hours of operation and service as well as testing the Cruise Origin, its autonomous vehicle designed for driver-less operations. Although the division continues to burn money, it has started charging for the rides albeit on a small scale.

I am actually more excited about Cruise than GM's EV strategy even though we are still a while away from the robotaxi division becoming GM's cash cow. The global robotaxi market, according to marketsandmarkets.com , is expected to reach 1.45 million units by 2030, growing at a CAGR of 136.8%. Based on current evidence, GM does seem to have a plan in place to scale the business quickly and as long as this plan is rightly executed, investors shouldn't bother with the cash burn.

Cruise is the goldmine that GM has in its hands, especially if it capitalizes on the first-mover advantage and pulls ahead of the likes of Tesla ( TSLA ) and Ford ( F ). It is this aspect, the first-mover advantage, which I believe that the market is yet to digest when it comes to GM.

Forward P/E Multiple Approach

Projected Forward P/E multiple	6.23x
Projected EPS in the next 12 months	$7.51

GM expects diluted EPS of between $5.76 and $6.76 for FY22. The company has earned $3.23 till date, which represents a 35% decline YoY. In my most conservative scenario, I assume that the company earns only $5.76 for FY22 given the current macro headwinds. I then assume that the expected ramp-up in EV deliveries does become a reality to some extent and as a result, the company earns, in the first six months of FY23, what it earned in the first six months of FY21, which is $4.98 per share. That would give an NTM diluted EPS of $7.51. I assume GM's forward P/E to be the same as the median forward P/E of the industry, 6.23x, which yields a price target of $47.00. This represents an upside of a little over 30% to Friday's closing price.

Concluding Thoughts

As a long-term play, I continue to like GM. I think its EV strategy is well-laid out and the likes of Silverado EV and Equinox together with the Cadillac LYRIQ should help the company to establish itself as a top EV player. However, in the near-term, question marks still remain over the company's ability to execute and achieve its EV goals. For me, GM's robotaxi division Cruise is the actual goldmine and is a segment that remains underappreciated by the market. In an era where everyone is playing to win the EV race, the focus will be on differentiation. The first mover advantage gained when it comes to robotaxis is what I think will set GM apart from its rivals in the long-run. That is of course, if it is rightly executed.

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of GM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Supplementary information:, i. background, a. export controls implemented against russia and belarus, b. overview of this final rule, ii. amendments to the ear, a. additional export control measures against russia and belarus, b. consolidation of russia and belarus sanctions into a single section, c. additions to the entity list and changes to the entity list structure, d. confirmation of the standard used in connection with actions involving the availability of license exceptions and clarification of the scope of a commodity subject to the russian and belarusian industry sanctions, savings clause, export control reform act of 2018, rulemaking requirements, list of subjects, 15 cfr part 734, 15 cfr part 740, 15 cfr part 744, 15 cfr parts 746 and 774, part 734—scope of the ear, supplement no. 2 to part 734—guidelines for de minimis rules, part 740—license exceptions, part 744—control policy: end-user and end-use based, supplement no. 4 to part 744—entity list, supplement no. 5 to part 744—procedures for end-user review committee entity list and `military end user' (meu) list decisions, part 746—embargoes and other special controls, supplement no. 2 to part 746—russian and belarusian industry sector sanction list pursuant to § 746.8(a)(4), supplement no. 3 to part 746—countries excluded from certain license requirements of §§ 746.6, 746.7, and 746.8, supplement no. 4 to part 746—russian and belarusian industry sector sanctions pursuant to § 746.8(a)(5), supplement no. 5 to part 746—‘luxury goods’ sanctions for russia and belarus pursuant to § 746.8(a)(7), supplement no. 6 to part 746—russian and belarusian industry sector sanctions pursuant to § 746.8(a)(6), supplement no. 7 to part 746—items that require a license under § 746.6 when destined to the temporarily occupied crimea region of ukraine, under § 746.7 when destined to iran, and under § 746.8 when destined to russia or belarus, part 774—the commerce control list, supplement no. 1 to part 774—the commerce control list, license requirements, list based license exceptions (see part 740 for a description of all license exceptions), list of items controlled, enhanced content - submit public comment.

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Bureau of Industry and Security, Department of Commerce.

Final rule.

In this final rule, the Bureau of Industry and Security (BIS) makes changes to the Russia and Belarus sanctions under the Export Administration Regulations (EAR). This final rule imposes additional export control measures against Russia and Belarus by expanding the scope of items identified under two EAR supplements that are subject to the EAR's Russian and Belarusian industry sector sanctions; imposing a “software” license requirement for certain EAR99-designated “software” when destined to or within Russia or Belarus; and narrowing the scope of commodities and software that may be authorized for export, reexport, or transfer (in-country) to or within Russia or Belarus under License Exception Consumer Communications Devices (CCD). To promote clarity and facilitate compliance, this final rule also consolidates the EAR's Russian and Belarus sanctions into a single section, while maintaining the existing related regulatory supplements identifying items that are subject to certain of those sanctions. This final rule also amends the EAR by adding five entities and eight addresses to the Entity List and making changes to the Entity List structure. These entries are listed on the Entity List under the destinations of the People's Republic of China (China) and Russia and have been determined by the U.S. Government to be acting contrary to the national security or foreign policy interests of the United States. Lastly, this final rule makes two additional revisions to the EAR: one to confirm the criteria used when revising, suspending, or revoking EAR license exceptions and one revision to clarify the control status of fasteners for purposes of the EAR's Russian and Belarusian industry sector sanctions.

This rule is effective on June 12, 2024, except for amendatory instruction 14, which is effective September 16, 2024.

For general questions on this final rule, contact Collmann Griffin, Senior Policy Advisor, International Policy Office, Bureau of Industry and Security, Department of Commerce, Phone: 202-482-1430, Email: [email protected] . For questions on the Entity List changes in this final rule, contact 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: [email protected] . For emails, include “Russia and Belarus, June 2024 export control measures” in the subject line.

In response to Russia's February 2022 full-scale invasion of Ukraine, BIS imposed extensive sanctions on Russia under the EAR as part of the final rule, “Implementation of Sanctions Against Russia Under the Export Administration Regulations (EAR)” (“Russia Sanctions Rule”) ( 87 FR 12226 , March 3, 2022). To address Belarus's complicity in the invasion, BIS imposed similar sanctions on Belarus under the EAR in a final rule, “Implementation of Sanctions Against Belarus” (“Belarus Sanctions Rule”) ( 87 FR 13048 , March 6, 2022). During the last two years, BIS has published a number of additional final rules strengthening the export controls on Russia and Belarus, including measures undertaken in coordination with U.S. allies and partners.

In this final rule, BIS makes changes to the Russia and Belarus sanctions under the EAR along with certain changes that are not specific to those two countries. Certain of these changes (see section II.A) are designed to better protect U.S. national security and foreign policy interests by expanding the scope of the current sanctions. Others (see sections II.B and C) will promote clarity and facilitate compliance. The four sets of changes this final rule makes are described in section II as follows:

A. Additional export control measures against Russia and Belarus;

B. Consolidation of Russia and Belarus sanctions into a single section;

C. Additions to the Entity List and changes to the Entity List structure; and

D. Confirmation of the standard used in connection with actions involving the availability of license exceptions and clarification of the scope of a commodity subject to the Russian and Belarusian industry sanctions.

This final rule imposes additional export control measures against Russia and Belarus by expanding the scope of items that are subject to the Russian and Belarusian industry sector sanctions under supplement nos. 4 and 6 to part 746 (see section II.A.1 and II.A.2); imposing a “software” license requirement for certain EAR99-designated “software” when destined for Russia or Belarus; and narrowing the scope of commodities and software that may be authorized for export, reexport, or transfer (in-country) to or within Russia and Belarus under License Exception CCD.

1. Expansion of Russian and Belarusian industry sector sanctions by adding items to supplement no. 4 to part 746 consistent with the objective to undermine Russia's and Belarus's industrial bases and their ability to continue to support Russia's military aggression in Ukraine.

This rule expands the list of items set forth in supplement no. 4 to part 746 (Russian and Belarusian Industry Sector Sanctions Pursuant to § 746.5(a)(1)(ii)) (this final rule relocates the restrictions of § 746.5(a)(1)(ii) to § 746.8(a)(5)), as detailed below in section II.B.2. Specifically, this rule adds 522 additional Harmonized Tariff Schedule (HTS)-6 Code entries to supplement no. 4; consequently, these items will now require a license for export to, reexport to, or transfer (in-country) within Russia or Belarus under § 746.8(a)(5). Restrictions on these industrial items are intended to further undermine the Russian and Belarusian industrial bases and their ability to continue to support Russia's military aggression in Ukraine. The complete list of 522 new HTS-6 Codes this rule adds to supplement no. 4 are identified in amendatory instruction 18.

Through the addition of these HTS codes, BIS intends to further limit Russia's access to items of potential military significance and expand the economic impact of controls that will deny Russia additional resources it needs to continue waging war.

Items controlled through amendments made by this rule were identified based on a review of public and non-public information regarding which items Start Printed Page 51645 Russia seeks to further its war against Ukraine, an evaluation of areas in which U.S. trade has continued to provide an economic benefit to Russia, and an assessment of how the United States could further degrade Russia's war effort. With these new controls, BIS also further minimizes opportunities for the circumvention of U.S. export controls on Russia and Belarus through misclassification of the HTS-6 code. Supplement no. 4 to part 746 will now cover, with the addition of these 522 HTS-6 codes, items subject to the EAR classified under all HTS codes in 18 additional chapters of HTS codes. Making these additions will minimize situations where persons could seek to circumvent export license requirements by changing the classification of an item that requires a license to the classification of an item in a similar HTS code that does not require a license. BIS estimates these changes to supplement no. 4 to part 746 will result in an additional five license applications submitted to BIS annually.

2. Expansion of Russian and Belarusian industry sector sanctions by adding items to supplement no. 6 to part 746 consistent with the objective to undermine Russia's and Belarus's industrial bases and their ability to continue to support Russia's military aggression in Ukraine.

In supplement no. 6 to part 746 (Russian and Belarusian Industry Sector Sanctions Pursuant to § 746.5(a)(1)(iii)) (this final rule relocates the restrictions of § 746.5(a)(1)(iii) to § 746.8(a)(6)), this final rule adds a new paragraph (h) to control certain riot control agents that are isomers of CS (o-Chlorobenzylidenemalononitrile or o-Chlorobenzalmalononitrile) (CAS 2698-41-1); CN (Phenylacyl chloride or w-Chloroacetophenone) (CAS 532-27-4); or Oleoresin Capsicum (CAS 8023-77-6). Specifically, paragraphs (h)(1) through (10) describe these riot control agents that will be controlled under the EAR's Russian and Belarusian industry sector sanctions. These chemicals meet the definition of riot control agents under Article II (paragraph 7) of the Chemical Weapons Convention (CWC). These expanded controls will supplement the existing Commerce Control List (CCL) controls under ECCNs 1A984 and 1C607; in particular, they will address Russia's use of riot control agents as a method of warfare against Ukrainian forces in violation of the CWC. See May 1, 2024 State Department Fact Sheet announcing the imposition of sanctions on Russia under the Chemical and Biological Weapons Control and Warfare Elimination Act of 1991, available at https://www.state.gov/imposing-new-measures-on-russia-for-its-full-scale-war-and-use-of-chemical-weapons-against-ukraine-2/ . BIS estimates these changes to supplement no. 6 to part 746 will result in one additional license application submitted to BIS annually.

3. Imposing a license requirement for certain EAR99-designated “software” when destined to or within Russia or Belarus.

Prior to this final rule, apart from certain software described in paragraph (g)(9) in supplement no. 6 to part 746, the Russian and Belarusian industry sector sanctions (in prior § 746.5(a)(1)(iii)) did not extend to software and the license requirements under § 746.8(a)(1) did not extend to EAR99-designated software. This final rule strengthens the Russian and Belarusian export control measures by adding a new paragraph (a)(8) ( EAR99-designated software ) to § 746.8. These changes to paragraph (a)(8) described under amendment 14 will go into effect on September 16, 2024. New paragraph (a)(8)(i) specifies that a license is required to export, reexport, or transfer (in-country) to or within Russia or Belarus any EAR99-designated software described in paragraph (a)(8)(ii). New paragraph (a)(8)(ii) will apply to the following types of EAR99-designated “software:” Enterprise resource planning (ERP); customer relationship management (CRM); business intelligence (BI); supply chain management (SCM); enterprise data warehouse (EDW); computerized maintenance management system (CMMS); project management software, product lifecycle management (PLM); building information modelling (BIM); computer aided design (CAD); computer-aided manufacturing (CAM); and engineering to order (ETO). New paragraph (a)(8)(ii) includes a sentence to specify that the license requirement also includes software updates of software identified in paragraph (a)(8)(ii), which will enhance the effectiveness of this control because of the need for regular software updates to ensure proper software functionality. BIS also has added a new paragraph (a)(12)(iv) in § 746.8 to exclude entities exclusively operating in the medical or agricultural sectors from this software license requirement. These changes to paragraph (a)(12)(iv) also described under amendment 14 will go into effect on September 16, 2024. BIS estimates these changes to § 746.8(a)(8), which take into account the new exclusion added under § 746.8(a)(12)(iv), will result in an additional 5 license applications submitted to BIS annually.

4. Narrowing the scope of eligible commodities and software under License Exception CCD for Russia and Belarus.

In § 740.19 (Consumer Communications Devices (CCD)), this final rule revises paragraph (b) (Eligible commodities and software) to limit the scope of eligible commodities and software that may be authorized for export, reexport, or transfer (in-country) under this section to and within Russia and Belarus. This final rule does so by revising the paragraph (b) introductory text to specify that the commodities and software described in revised paragraphs (b)(1) through (8) are eligible for export, reexport, and transfer (in-country) to or within Russia and Belarus, as well as to or within Cuba, and by adding a sentence to the end of the paragraph (b) introductory text to specify that commodities and software described in paragraphs (b)(9) through (18) are eligible for export, reexport, or transfer (in-country) under this section to or within Cuba only. This final rule also revises paragraphs (b)(1) through (17) accordingly, so that all the commodities and software that are eligible for Russia, Belarus, and Cuba are described under paragraphs (b)(1) through (8) and those that are eligible for Cuba only are in paragraphs (b)(9) through (18).

The redesignation of these paragraphs will make it easier for exporters, reexporters, and transferors to identify the commodities and software that may be eligible for License Exception CCD for export, reexport, or transfer (in-country) to or within each of these three countries. This final rule does not otherwise revise the scope of eligible items in paragraphs (b)(1) through (17), with the exception of paragraph (b)(15) (batteries, chargers, carrying cases and accessories for the equipment described in paragraphs (b)(1) through (5) of this section that are designated EAR99). Specifically, this final rule separates the contents of this paragraph into two paragraphs by adding paragraph (b)(6) to describe batteries, chargers, carrying cases, and accessories for the equipment described in paragraphs (b)(1) through (5) of this section that are designated EAR99, and adding a separate paragraph (b)(18) to describe batteries, chargers, carrying cases, and accessories for the equipment described in paragraphs (b)(8) through (17) of this section that are designated EAR99. BIS estimates these changes to § 740.19 will result in an additional 10 license applications submitted to BIS annually.

To further assist exporters and other parties in understanding the changes to Start Printed Page 51646 § 740.19(b)(1) through (17), BIS includes a cross walk in Table 1 below:

Table 1—Cross Walk for § 740.19( b )(1) Through (17) Redesignations

Original paragraph (b) designationParagraph (b) redesignation in this final ruleEligible for Russia, Belarus, and CubaEligible only for Cuba(b)(1)No changeX(b)(2)(b)(9)X(b)(3)(b)(10)X.(b)(4)(b)(3)X(b)(5)(b)(4)X(b)(6)(b)(11)X.(b)(7)(b)(12)X.(b)(8)(b)(5)X(b)(9)(b)(2)X(b)(10)(b)(13)X.(b)(11)(b)(7)X(b)(12)(b)(14)X.(b)(13)(b)(15)X.(b)(14)(b)(16)X.(b)(15)(b)(18) and (b)(6)Yes, for (b)(6)Yes, for (b)(18).(b)(16)(b)(8)X(b)(17)(b)(17)X.N/A(b)(18) (Newly added paragraph, but substance was formerly in (b)(15))X.

1. Consolidation. The embargoes, sanctions, and special controls implemented under the EAR are contained in part 746 of the EAR. For countries such as Cuba, North Korea, and Syria, there is a single section under part 746 that imposes embargo or country-specific sanctions. With respect to the export control measures against Russia and Belarus, BIS took a different approach, with certain controls added to new part 746 sections after the initial February 2014 Russian invasion of the Crimea region of Ukraine and various export control measures added to those existing part 746 sections, along with expansive measures imposed under new part 746 sections, as well as, in response to the February 2022 full-scale invasion of Ukraine and continuing Russian aggression against Ukraine. Prior to this final rule, license requirements for exports, reexports, and transfers (in-country) to or within Russia and Belarus added in or after February 2022 were primarily found in three sections in part 746 of the EAR: §§ 746.5 (for a variety of industrial goods), 746.8 (mostly for items on the Commerce Control List and items caught by the Russia and Belarusian-related foreign direct product rules), and 746.10 (for `luxury goods'). In this final rule, all of these license requirements are being consolidated into a revised and expanded § 746.8. Specifically, license requirements from former § 746.8 are now found in paragraphs (a)(1) through (3) of § 746.8; license requirements from former § 746.5 are now found in paragraphs (a)(4) through (6) of § 746.8; and license requirements from former § 746.10 are now found in paragraph (a)(7) of § 746.8.

BIS has undertaken this consolidation in light of the increasingly wide-ranging and complex nature of the export control measures against Russia and Belarus. A single section under § 746.8 that specifies the EAR's Russia and Belarus restrictions should enhance clarity and facilitate compliance. However, in the interest of maintaining certain aspects of the current regulatory structure governing these restrictions, the applicable supplements identifying items continue to be in force, namely, the Russian and Belarusian industry sector sanctions under supplement nos. 2, 4, and 6 to part 746, and the `Luxury Goods' sanctions under supplement no. 5 to part 746. Nor has BIS made any changes to supplement nos. 3 and 7 to part 746, supplements that relate to other Russia and Belarus restrictions.

To implement this consolidation, this final rule removes and reserves §§ 746.5 (Russian and Belarusian industry sector sanctions) and 746.10 (`Luxury goods' sanctions against Russia and Belarus and Russian and Belarusian oligarchs and malign actors). The contents and related restrictions in those two EAR sections will now be located in the consolidated § 746.8, which with this final rule will become the primary part 746 section implementing export controls on Russia and Belarus.

For now, as noted above, the EAR will continue to maintain three supplements for industrial goods (supplement nos. 2, 4, and 6 to part 746) and one supplement for `luxury goods' (supplement no. 5 to part 746). However, because controls on `luxury goods' destined for certain Russian and Belarusian oligarchs and malign actors worldwide were removed from § 746.10 and added to § 744.8 of the EAR on March 21, 2024 (see 89 FR 20115 , Mar. 21, 2024) as part of a broader action consolidating various end-user controls, the license requirements for `luxury goods' now are effectively the same destination-based controls that apply to license requirements for items covered under other HTS-6 codes described in the three industrial goods lists set forth in supplement nos. 2, 4, and 6 to part 746, respectively. In future amendments to the EAR, BIS may consider consolidating these three lists, but has decided to keep them separate for now. To assist with compliance, BIS is also posting a list of all HTS codes set forth in supplement nos. 2, 4, and 5 to part 746 in downloadable XML format, available at https://www.bis.gov/russia-belarus_export_controls_resources#downloadable-compliance-resources .

In addition to consolidating various Russia and Belarus export, reexport, and transfer (in-country) licensing requirements in § 746.8, this final rule adds the applicable exclusions that were formerly set forth in §§ 746.5, 746.8 and 746.10 to paragraph (a)(12) of § 746.8 of the EAR. These exclusions include ones that apply for certain deemed exports or reexports, certain transactions involving mass market encryption commodities Start Printed Page 51647 and software destined to U.S. companies, and transactions from the Global Export Control Coalition (GECC) members described in supplement no. 3 to part 746 of the EAR. Specifically, the exclusion for deemed exports and reexports has been added to paragraph (a)(12)(i), the exclusion for mass market encryption commodities and software has been added to paragraph (a)(12)(ii), and the exclusion for members of the GECC has been added to paragraph (a)(12)(iii). The introductory text of paragraph (a) of § 746.8 will now reference paragraph (a)(12) containing these three sets of exclusions. This consolidation and reformatting of these requirements is intended to improve consistency and clarity, the objectives also met by the broader consolidation of the related licensing requirements.

Prior to this final rule, §§ 746.5, 746.8, and 746.10 of the EAR each contained instructional text that established an order of review among these three sections to clarify how to review each section in conjunction with the CCL and other sections of the EAR. Such review was necessary because a single HTS-6 code may cover both items that are classified under Export Control Classification Numbers (ECCN) on the CCL and items designated EAR99, and there may consequently be overlapping export controls that apply to an item in that HTS-6 code depending on how such item is classified. In this final rule, this order of review instructional text is being moved to the paragraph (a) introductory text in revised § 746.8, which will consolidate the licensing requirements previously set forth in three separate part 746 sections. This final rule also consolidates the three applicable licensing policies under the revised § 746.8(b) and consolidates the license exception availability contents previously found in §§ 746.5, 746.8, and 746.10 under the revised § 746.8(c). BIS estimates these conforming changes described in section II.B.1 will not result in any additional license applications submitted to BIS annually.

2. Conforming changes relating to the consolidation of the Russia and Belarus sanctions into a single part 746 section.

This final rule makes conforming changes to various provisions of the EAR to reflect the fact that the substantive contents formerly set forth in §§ 746.5 and 746.10 ( e.g., licensing requirements and related license application review policies) are being consolidated with the requirements under § 746.8. Because §§ 746.5 and 746.10 are referenced in other EAR provisions, this final rule revises those EAR provisions (as described in section II.B.2). BIS estimates these conforming changes described in section II.B.2 will not result in any additional license applications submitted to BIS annually.

In supplement no. 2 to part 734—Guidelines for De Minimis Rules, this final rule revises the third sentence of paragraph (a)(1) to make a conforming change to remove the references to §§ 746.8(a)(5) and 746.10(a)(3) and add in its place a reference to § 746.8(b)(3)(ii).

In supplement no. 4 to part 744—Entity List, this final rule revises 85 existing entries, consisting of one entry under Cyprus, 83 entries under Russia, and one entry under Switzerland that reference § 746.5, and updates the reference to § 746.8.

In part 746, this final rule revises supplement nos. 2, 3, 4, and 6 to part 746 that reference §§ 746.5 or 746.10 and updates the reference to § 746.8.

In supplement no. 1 to part 774, this final rule amends eight ECCNs: 0A998, 1C992, 3A229, 3A231, 3A232, 6A991, 8A992, and 8D999 by removing the reference to § 746.5 and adding in its place references to § 746.8. In addition to the license requirements that are applicable under the Russian and Belarusian industry sector sanctions, all exports, reexports, and transfers (in-country) to or within Russia and Belarus also require a license under § 746.8(a)(1) because these items are classified under ECCNs. Lastly, this rule revises the Related Controls paragraph under ECCN 1C992 to make minor clarifications to the text for clarity.

1. 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. 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.

2. Additions to the Entity List and changes to the Entity List structure.

i. Additions to the Entity List.

The ERC determined to add Advantage Trading Co. Limited, Duling Technology (HK) Limited, and FY International Trading, all under the destination of China, to the Entity List. These companies have procured components, including U.S.-origin components, that are used to develop and produce Shahed-series UAV's, which have been used by Russia in Ukraine. This activity is contrary to U.S. national security and foreign policy interests under §§ 744.11 and 744.21 of the EAR. These entities will receive a footnote 3 designation because the ERC has determined that they are Russian or Belarusian `military end users' in accordance with § 744.21. A footnote 3 designation subjects these entities to the Russia/Belarus-Military End User Foreign Direct Product (FDP) rule, detailed under § 734.9(g). These entities are added with a license requirement for all items subject to the EAR. License applications will be reviewed under a policy of denial for all items subject to the EAR, other than applications for food and medicine designated as EAR99, which will be reviewed on a case-by-case basis.

The ERC determined to add Shenzhen Daotong Intelligent Aviation Technology Co., Ltd., under the destination of China, to the Entity List. This entity is involved in the shipment of controlled items to Russia since Russia's invasion of Ukraine in February 2022 as well as acquiring and attempting to acquire U.S.-origin items, applicable to unmanned aerial vehicles, to be used by Chinese military entities. These activities are contrary to the national security and foreign policy interests of the United States under § 744.11 of the EAR. Licenses will be required for all items subject to the EAR. License applications will be reviewed with a license review policy of presumption of denial.

The ERC determined to add eight addresses under the destination of China to the Entity List. These addresses Start Printed Page 51648 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 on the Commerce Control List and supplement no. 7 of section 746 of the EAR and subject to the EAR. License applications will be reviewed with a license review policy of presumption of denial.

The ERC determined to add LLC Volgogradpromproyekt, under the destination of Russia, to the Entity List. This addition is being made because the ERC has determined that LLC Volgogradpromproyekt has been involved with, contributes to, and supports the Russian military and defense sectors and companies that have been added to the BIS Entity List and the Treasury Department's List of Specially Designated Nationals and Blocked Persons. Specifically, LLC Volgogradpromproyekt have sold a variety of chemicals for use in the activities of these Russian military and defense sectors and companies. This activity is contrary to the national security and foreign policy interests of the United States under § 744.11 and 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. A Footnote 3 designation subjects this entity to the Russia/Belarus-Military End User Foreign Direct Product (FDP) rule, detailed in § 734.9(g). 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.

BIS estimates these additions to the Entity List will not result in any additional license applications submitted to BIS annually.

For the reasons described above, this final rule adds the following five entities and eight addresses under thirteen entries to the Entity List and includes, where appropriate, aliases:

Address 01;
Address 02;
Address 03;
Address 04;
Address 05;
Address 06;
Address 07;
Address 08;
Advantage Trading Company Limited;
Duling Technology (HK) Limited;
FY International Trading Company; and
Shenzhen Daotong Intelligent Aviation Technology Co., Ltd.
LLC Volgogradpromproyekt.

ii. Entity List Structural Changes.

International transshipment through shell companies presents an export control compliance problem that cannot always be addressed effectively through conventional Entity List additions. Shell companies can easily be dissolved and reformed to evade sanctions and export controls because they lack non-cash assets, employees, fixed addresses, business reputations, or other features that would incentivize the pursuit of longevity. Shell companies rely on service providers to enable them, with addresses that can be listed on corporate paperwork, mailboxes where they can receive shipments, temporary office space, or accounting and other services necessary to engage in trade activity.

When BIS lists shell companies on the Entity List, it is often at the address of these service providers, though BIS has traditionally avoided listing the service providers by name because that name will not appear on export control paperwork and may remain unknown to the seller of items subject to the EAR. Nonetheless, some of these addresses present a high diversion risk for controlled items and appear multiple times on the Entity List or Unverified List under different company names.

While BIS has said that involvement of a company co-located with a listed entity presents a red flag in export transactions, there are some situations where a more definite license requirement is warranted for addresses that are repeatedly used by companies engaged in activity contrary to U.S. national security or foreign policy interests. This rule is intended to address those situations by enabling BIS to publish high diversion risk addresses on the Entity List, thus triggering a license requirement for all entities who use that address. The goal of this rule is to more effectively combat unlawful diversion and to incentivize a stronger awareness of export compliance among the corporate service provider industries that facilitate trade through shell companies.

To facilitate adding the addresses detailed above, BIS is revising § 744.16, which describes, among other things, the license requirements, license exceptions, and license review policy for entities added to the Entity List. This rule adds paragraph (f) to § 744.16. Under paragraph (f) ( Addresses with High Diversion Risk ), BIS may identify by address an entity (or multiple entities) on the Entity List that presents a high risk of diversion without an associated entity name. As with other entries on the Entity List, these entries will detail the license requirements, license review policies, and restrictions on the use of license exceptions; however, the entry will apply to all entities using that address, other than entities with their own separate entry at that same address, in which case the more specific entry will apply. Prior to this rule, the license requirement applied to the entity listed by name on the Entity List. BIS will include as much identifying information as possible for any such address listed on the Entity List under this policy. As a conforming change, BIS is adding reference to addresses of persons or changing references from entities to entries in the introductory text in supplements 4 and 5 to part 744.

For ease of compliance and administrative purposes, the entries that consist of an address only will be titled “Address #,” where # represents a number in a sequence of address entries. This pattern will apply to each destination for which there is an address-only entry.

Beyond entries that consist of an address only, given the risk of diversion from multiple listed entities using the same address, when a party to a transaction uses the same address as ( e.g., is co-located with) a listed entity, the address is a red flag and the exporter, reexporter, and transferor must undertake sufficient due diligence to verify that the entity co-located with the listed entity is not, in fact, the listed entity and is not acting on behalf of the listed entity. This is similar to red flag guidance BIS has issued on listed entities.

The final rule also makes additional changes to §§ 744.11 and 744.16 where needed to reflect the addition of paragraph (f) under § 744.11. These changes broaden the sentences that use the phrase “entities listed on the Entity List” to reflect that these provisions also apply to addresses that present a high diversion risk listed on the Entity List.

BIS estimates these changes described in section II.C will not result in any additional license application submitted to BIS annually. Start Printed Page 51649

This final rule makes revisions to two existing provisions of the EAR. First, this final rule specifies the standard used by BIS when revising, suspending, or revoking the use of EAR license exceptions, which applies to all license exceptions, destinations, and users of such license exceptions. By making this standard explicit, BIS provides transparency to exporters, reexporters, and transferors that may seek to utilize license exceptions in various destinations. In the section below, BIS provides some examples in the Russia context and in contexts involving other destinations in which BIS either has (or may) exercise this authority to revise, suspend, or revoke the use of license exceptions to protect U.S. national security or foreign policy interests. Second, this final rule makes a clarification regarding the control status of fasteners as it relates to the Russian and Belarusian industry sector sanctions. BIS estimates these changes described in section II.D will not result in any additional license application submitted to BIS annually.

1. Specifying the standard that governs when revising, suspending, or revoking EAR license exceptions.

BIS is responsible for protecting U.S. national security and foreign policy interests under the EAR. EAR license exceptions (part 740) are authorizations to engage in activity that otherwise requires a license and play an important role in the EAR control structure. In § 740.2 (Restrictions on all License Exceptions), this final rule revises paragraph (b) to specify the standard under which BIS may revise, suspend, or revoke a license exception, in whole or in part, without notice. Specifically, this final rule adds text to confirm (and render explicit) the fact that BIS may make such revisions, suspensions, or revocations to protect U.S. national security or foreign policy interests, consistent with the policy considerations in Section 1752 of the Export Control Reform Act of 2018 ( 50 U.S.C. 4811 ). In order to protect U.S. national security and foreign policy interests, BIS has broad authority to make revisions, suspensions, or revocations that apply to specific entities (including natural persons) or take action that affects all transactions involving a particular destination. For example, BIS may revoke a license exception for a particular foreign airline that changes its ownership structure to circumvent the national security and foreign policy objectives underlying the restrictions on the use of License Exception AVS for temporary sojourns to Russia in § 746.8 of the EAR. As another example, BIS may revoke license exception availability for a company under investigation for fraudulent use of license exceptions on export control documents to avoid scrutiny of its shipments. BIS may also revoke multiple license exceptions for transactions involving particular countries, as it did in June 2020 for Hong Kong after new security measures were imposed that undermined Hong Kong's autonomy ( 85 FR 45998 , July 31, 2020), or as it did for Burma in March 2021 in response to that country's military coup ( 86 FR 13173 , March 8, 2021).

2. Clarification that the exclusion for fasteners for the “parts,” “components,” “accessories,” and “attachments” does not apply to fasteners that are specified under one of the HTS-6 codes specified in the respective supplements.

In supplement nos. 2, 4, 5, and 7, this final rule adds a sentence to clarify the scope of the exclusion for fasteners ( e.g., screw, bolt, nut, nut plate, stud, insert, clip, rivet, pin) in the three supplements. Fasteners are identified in an exclusion from the scope of this control, but a clarification is needed because certain fasteners will now be described under HTS-6 Codes under supplement no. 4 with the additions made in this final rule and some of the HTS-Codes in supplement nos. 2, 4, 5, and 7 also identify certain fasteners, and are therefore included within the scope of the controls. This final rule clarifies the scope of the exclusion by adding a new third sentence to each of these three supplements to specify that the exclusion of fasteners from this control does not apply to fasteners that are designated under an HTS Code that is specified in that supplement. This final rule also adds the word `generally' before the term fasteners in each of the three supplements to clarify that the exclusion for fasteners has limits. This final rule also adds the word `and' before the term `washers' to clarify that in all cases a washer, spacer, insulator, grommet, bushing, spring, wire, or solder is excluded from the scope of these three supplements regardless of the HTS Code or HTS description.

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 June 12, 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), provided the export, reexport, or transfer (in-country) is completed no later than on July 12, 2024.

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) (codified, as amended, at 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.

1. BIS has examined the impact of this rule as required by Executive Orders 12866, 13563, and 14094, which direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits ( e.g., potential economic, environmental, public, health, and safety effects, distributive impacts, and equity). Pursuant to E.O. 12866 , as amended, this final rule has not been determined to be a “significant regulatory action.”

2. Notwithstanding any other provision of law, no person is required to respond to, nor shall any person 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 rule involves the following OMB-approved collections of information subject to the PRA:

0694-0088, “Simple Network Application Process and Multipurpose Application Form,” which carries a burden hour estimate of 29.4 minutes for a manual or electronic submission;
0694-0096 “Five Year Records Retention Period,” which carries a burden hour estimate of less than 1 minute; and
0607-0152 “Automated Export System (AES) Program,” which carries a burden hour estimate of 3 minutes per electronic submission. Start Printed Page 51650

BIS estimates that these new controls on Russia and Belarus under the EAR will result in an increase of twenty-one license applications submitted annually to BIS. However, the additional burden falls within the existing estimates currently associated with these control numbers. Additional information regarding these collections of information—including all background materials—can be found at https://www.reginfo.gov/public/do/PRAMain by using the search function to enter either the title of the collection or the OMB Control Number.

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

4. Pursuant to section 1762 of ECRA ( 50 U.S.C. 4821 ), this action is exempt from the Administrative Procedure Act (APA) ( 5 U.S.C. 553 ) requirements for notice of proposed rulemaking, opportunity for public participation, and delay in effective date. While section 1762 of ECRA provides sufficient authority for such an exemption, this action is also independently exempt from these APA requirements because it involves a military or foreign affairs function of the United States ( 5 U.S.C. 553(a)(1) ).

5. Because neither the Administrative Procedure Act nor any other law requires that notice of proposed rulemaking and an opportunity for public comment be given for this rule, the analytical requirements of the Regulatory Flexibility Act ( 5 U.S.C. 601 et seq. ) are not applicable. Accordingly, no Final Regulatory Flexibility Analysis is required and none has been prepared.

Administrative practice and procedure
Inventions and patents
Science and technology
Reporting and recordkeeping requirements

For the reasons stated in the preamble, parts 734, 740, 744, 746, and 774 of the Export Administration Regulations ( 15 CFR parts 730 through 774 ) are amended as follows:

1. The authority citation for part 734 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.; E.O. 12938 , 59 FR 59099 , 3 CFR , 1994 Comp., p. 950; E.O. 13020 , 61 FR 54079 , 3 CFR , 1996 Comp., p. 219; E.O. 13026 , 61 FR 58767 , 3 CFR , 1996 Comp., p. 228; E.O. 13222 , 66 FR 44025 , 3 CFR , 2001 Comp., p. 783; E.O. 13637 , 78 FR 16129 , 3 CFR , 2014 Comp., p. 223; Notice of November 1, 2023, 88 FR 75475 (November 3, 2023).

2. Supplement no. 2 to part 734 is amended by revising the third sentence of paragraph (a)(1) to read as follows:

(1) * * * For purposes of identifying U.S.-origin controlled content, you should consult the Commerce Country Chart in supplement no. 1 to part 738 of the EAR and controls described in part 746 of the EAR (excluding U.S.-origin content that meets the criteria in § 746.7(a)(1)(v) or § 746.8(a)(12)(iii)(B)). * * *

3. The authority citation for part 740 continues 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. 7201 et seq.; E.O. 13026 , 61 FR 58767 , 3 CFR , 1996 Comp., p. 228; E.O. 13222 , 66 FR 44025 , 3 CFR , 2001 Comp., p. 783.

4. Section 740.2 is amended by revising paragraph (b) to read as follows:

(b) All License Exceptions are subject to revision, suspension, or revocation, in whole or in part, without notice to protect U.S. national security or foreign policy interests. BIS may stop a shipment or an export, reexport, or (in-country) transaction at any stage of its progress, e.g., in order to prevent an unauthorized export, reexport, or transfer (in-country). If a shipment is already en route, BIS may order the return or unloading of the shipment at any port of call.

5. Section 740.19 is amended by revising paragraph (b) to read as follows:

(b) Eligible commodities and software. Commodities and software in paragraphs (b)(1) through (8) of this section are eligible for export, reexport, or transfer (in-country) under this section to and within Cuba, Russia, and Belarus. Commodities and software in paragraphs (b)(9) through (18) of this section are eligible for export, reexport, or transfer (in-country) to Cuba only.

(1) Consumer computers, tablets, and peripherals including microphones, speakers, and headphones designated EAR99 or classified under Export Control Classification Numbers (ECCN) 5A992.c or 4A994.b;

(2) Mobile phones, including cellular and satellite telephones, personal digital assistants, and subscriber information module (SIM) cards, accessories for such devices and similar devices classified under ECCNs 5A992.c or 5A991 or designated EAR99; drivers and connectivity software for such hardware designated EAR99 or classified under ECCN 5D992.c;

(3) Monitors classified under ECCN 5A992.c or designated EAR99;

(4) Printers, including multifunctional printers, classified under ECCN 5A992.c or designated EAR99;

(5) Keyboards, mice, and similar devices designated EAR99;

(6) Batteries, chargers, carrying cases, and accessories for the equipment described in paragraphs (b)(1) through (5) of this section that are designated EAR99;

(7) Consumer “information security” equipment, “software” (except “encryption source code”), such as firewalls, virtual private network clients, antivirus, user authentication, password managers, identification verification, and peripherals classified under ECCNs 5A992.c or 5D992.c or designated EAR99;

(8) Consumer “software” (except “encryption source code”) classified under ECCNs 4D994, 5D991, or 5D992.c or designated EAR99 to be used for equipment described in paragraphs (b)(1) through (16) of this section;

(9) Consumer disk drives and solid-state storage equipment classified under ECCN 5A992 or designated EAR99;

(10) Graphics accelerators and graphics coprocessors designated EAR99;

(11) Modems, network interface cards, routers, switches, and WiFi access points, designated EAR99 or classified under ECCNs 5A992.c or 5A991; drivers, communications, and connectivity software for such hardware designated EAR99 or classified under ECCN 5D992.c;

(12) Network access controllers and communications channel controllers classified under ECCN 5A991.b.4, 5A992.c, or designated EAR99;

(13) Memory devices classified under ECCN 5A992.c or designated EAR99; Start Printed Page 51651

(14) Digital cameras (including webcams) and memory cards classified under ECCN 5A992 or designated EAR99;

(15) Television and radio receivers, set top boxes, video decoders, and antennas, classified under ECCNs 5A991, 5A992, or designated EAR99;

(16) Recording devices classified under ECCN 5A992 or designated EAR99;

(17) Commodities described under 3A991.p or 4A994.l; and

(18) Batteries, chargers, carrying cases, and accessories for the equipment described in paragraphs (b)(8) through (17) of this section that are designated EAR99.

Note 1 to paragraph (b):

In this paragraph, the term “consumer” refers to items that are:

1. Generally available to the public by being sold, without restriction, from stock at retail selling points by means of any of the following:

a. Over-the-counter transactions;

b. Mail order transactions;

c. Electronic transactions; or

d. Telephone call transactions; and

2. Designed for installation by the user without further substantial support by the supplier.

6. 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 September 7, 2023, 88 FR 62439 (September 11, 2023); Notice of November 1, 2023, 88 FR 75475 (November 3, 2023).

7. Amend § 744.11 by revising the section introductory text, paragraphs (a) introductory text, (b) introductory text, (b)(4)(i), and (c), to read as follows:

BIS may impose foreign policy export, re-export, and transfer (in-country) license requirements, limitations on availability of license exceptions, and set license application review policy based on the criteria in this section. Such requirements, limitations and policy are in addition to those set forth elsewhere in the EAR. License requirements, limitations on use of license exceptions, and license application review policies will be imposed under this section by adding an entity or an address that presents a high diversion risk ( see § 744.16(f) of this part) to the Entity List (supplement no. 4 to this part) with a reference to this section and by stating on the Entity List the license requirements and license application review policies that apply to that entity or address, or by informing an exporter, re-exporter, or transferor pursuant to paragraph (c) of this section that a specific entity or address is subject to a license requirement, limitations on use of license exceptions and license application review policies as specified in a specific notice provided to an exporter, re-exporter, or transferor. BIS may remove an entity from the Entity List if it is no longer engaged in the activities described in paragraph (b) of this section and is unlikely to engage in such activities in the future, or if it is no longer at significant risk of acting contrary to the national security or foreign policy interests of the United States as described therein. BIS may remove an address that presents a high diversion risk from the Entity List if the address is determined to no longer be a high diversion risk, for example if measures are undertaken to educate companies operating at those addresses on export compliance, or to effectively screen clients for diversion risk. BIS may modify the license exception limitations and license application review policies that apply to a particular entity or address that presents a high diversion risk to implement the policies of this section. BIS will implement the provisions of this section in accordance with the decisions of the End-User Review Committee or, if appropriate in a particular case, in accordance with the decisions of the body to which the End-User Review Committee decision is escalated. The End-User Review Committee will follow the procedures set forth in supplement no. 5 to this part.

(a) License requirement, availability of license exceptions, and license application review policy. A license is required, to the extent specified on the Entity List, to export, reexport, or transfer (in-country) any item subject to the EAR when an entity that is listed on the Entity List, or any entity using an address identified on the Entity List as presenting a high risk of diversion to activities of concern, is a party to the transaction as described in § 748.5(c) through (f) of the EAR unless otherwise authorized or excluded in this section. License exceptions may not be used unless authorized in the Entity List entry for the entity that is party to the transaction or for an address that presents a high diversion risk that is used by a party to the transaction. Applications for licenses required by this section will be evaluated as stated in the relevant Entity List entry, in addition to any other applicable review policy stated elsewhere in the EAR.

(b) Criteria for revising the Entity List. Entities for which there is reasonable cause to believe, based on specific and articulable facts, that the entity or party to the transaction that is operating at an address that presents a high diversion risk has been involved, is involved, or poses a significant risk of being or becoming involved in activities that are contrary to the national security or foreign policy interests of the United States and those acting on behalf of such entities or conducting operations at an address that presents a high diversion risk may be added to the Entity List pursuant to this section. An entity or address that presents a high diversion risk may pose a significant risk through certain circumstances that may be outside of its own control or in the case of addresses with high diversion risk, outside the control of certain parties to the transaction operating at such address that presents a high diversion risk. Such circumstances that may place an entity or address that presents a high diversion risk include situations involving a sustained lack of cooperation by a host government authority, for example, by preventing an end-use check from being conducted, that effectively prevents BIS from determining compliance with the EAR. This section may not be used to place any U.S. person, as defined in § 772.1 of the EAR, on the Entity List. Paragraphs (b)(1) through (5) of this section provide an illustrative list of activities that could be or represent a significant risk of being contrary to the national security or foreign policy interests of the United States, including the foreign policy interest of the protection of human rights throughout the world.

(i) The entity or persons that own or control an address that presents a high diversion risk precluding access to; refusing to provide information about; or providing false or misleading information about parties to the transaction or the item to be checked. Start Printed Page 51652 The conduct in this example includes: expressly refusing to permit a check; providing false or misleading information; or engaging in dilatory or evasive conduct that effectively prevents the check from occurring or makes the check inaccurate or useless. A nexus between the conduct of the party or address that presents a high diversion risk to be listed and the failure to produce a complete, accurate and useful check is required, even though an express refusal by the party to be listed is not required; or

(c) Additional prohibition on persons informed by BIS. BIS may inform persons, either individually by specific notice or through amendment to the EAR, that a license is required for:

(1) A specific export, reexport, or transfer (in-country) because there is an unacceptable risk that the export, reexport, or transfer (in-country) is intended to circumvent the license requirement imposed on an entity or address that presents a high diversion risk listed in supplement no. 4 to this part; or

(2) The export, reexport, or transfer (in-country) of specified items to a certain party because there is an unacceptable risk that the party is acting as an agent, front, or shell company for an entity listed in supplement no. 4 to this part, or is otherwise assisting that listed entity in circumventing the license requirement set forth in that entity's entry in supplement no. 4 to this part; or

(3) The export, reexport, or transfer (in-country) of specified items to a certain party or address that presents a high diversion risk because there is reasonable cause to believe, based on specific and articulable facts, that the entity has been involved, is involved, or poses a significant risk of being or becoming involved in activities that are contrary to the national security or foreign policy interests of the United States, including the foreign policy interest of the protection of human rights throughout the world, and those acting on behalf of such entity or that an address that presents a high diversion risk of being used to divert items subject to the EAR to end-uses or end-users inconsistent with U.S. foreign policy or national security interests. Specific notice will be given only by, or at the direction of, the Principal Deputy Assistant Secretary for Strategic Trade and Technology Security or the Deputy Assistant Secretary for Strategic Trade. When such notice is provided orally, it will be followed by written notice within two working days signed by the Principal Deputy Assistant Secretary for Strategic Trade and Technology Security or the Principal Deputy Assistant Secretary's or Deputy Assistant Secretary's designee. The specific notice will include the license requirement, limitations on use of license exceptions, and license application review policy with which that exporter, re-exporter, or transferor must comply pursuant to this paragraph (c)(3). The ERC may add such entities or addresses that present a high diversion risk to the Entity List in supplement no. 4 to this part.

7. Section 744.16 is amended by:

a. Revising the introductory text;

b. Revising paragraphs (a), (b), (c)(1), (e) introductory text; and

c. Adding paragraph (f).

The addition and revisions read as follows:

The Entity List (supplement no. 4 to this part) identifies persons or addresses of persons reasonably believed to be involved, or to pose a significant risk of being or becoming involved, in activities contrary to the national security or foreign policy interests of the United States. The entries are added to the Entity List pursuant to sections of part 744 (Control Policy: End-User and End-Use Based) and part 746 (Embargoes and Other Special Controls) of the EAR.

(a) License requirements. In addition to the license requirements for items specified on the CCL, you may not, without a license from BIS, export, reexport, or transfer (in-country) any items included in the License Requirement column of an entry on the Entity List (supplement no. 4 to this part) when an entity associated with that entry or when any entity using an address of high diversion risk associated with that entry is a party to a transaction as described in § 748.5(c) through (f) of the EAR. The specific license requirement for each listed entity or address with high diversion risk is identified in the license requirement column on the Entity List in supplement no. 4 to this part. A license is not required for the release of certain “technology” or “software” when such a release is for a “standards-related activity,” as described in §§ 744.11(a)(1) and 772.1 of the EAR.

(b) License exceptions. No license exceptions are available for exports, reexports or transfers (in-country) to listed entities or addresses that present a high diversion risk of specified items, except license exceptions for items listed in § 740.2(a)(5) of the EAR destined to listed Indian or Pakistani entities to ensure the safety of civil aviation and safe operation of commercial passenger aircraft, and in the case of entities added to the Entity List pursuant to § 744.20, to the extent specified on the Entity List.

(1) General review policy. The license review policy for each listed entity or address that presents a high diversion risk is identified in the License Review Policy column on the Entity List.

(e) Removal or modification requests. Any entity listed on the Entity List or the owner or operator of any address that presents a high diversion risk listed on the Entity List may request that its listing be removed or modified. All such requests, including reasons therefor, must be in writing and sent to: Chair, End-User Review Committee, Bureau of Industry and Security, U.S. Department of Commerce, 14th Street and Pennsylvania Avenue NW, Room 3886, Washington, DC 20230.

(f) Addresses that present a high diversion risk. In limited circumstances, such as when multiple entities on the Entity List use the same address, or the name of an entity at a particular address is unknown to BIS, BIS may determine that such an address presents a high risk of diversion and publish the address on the Entity List without an associated entity name. These entries will apply license requirements, license review policies, and restrictions on the use of license exceptions for all entities using that address. When submitting a license application, the applicant should name the specific entity on the application. In the license application field for additional information, the applicant should state that the address is on the Entity List.

9. Amend supplement no. 4 to part 744 by:

b. Under CHINA, PEOPLE'S REPUBLIC OF by adding, in alphabetical order, entries for “Address 01”; “Address 02”; Address 03”; “Address 04”; “Address 05”; “Address 06”; “Address 07”; “Address 08”; “Advantage Trading Company Limited”; “Duling Technology (HK) Limited”; and “FY International Trading Company”; and “Shenzhen Daotong Intelligent Aviation Technology Co., Ltd.”;

c. Under CYPRUS, revising the entry for “Rosneft Trade Limited”;

d. Under RUSSIA, by:

i. Revising the entries for “Achim Development, OOO”; “CJSC Start Printed Page 51653 VANKORNEFT”; “Daltransgaz, OAO”; “Druzhba, AO”; “Gaz-Oil, OOO”; “Gazprom Dobycha Irkutsk, OOO”; “Gazprom Dobycha Krasnodar, OOO”; “Gazprom Dobycha Kuznetsk, OOO”; “Gazprom Dobycha Nadym, OOO”; “Gazprom Dobycha Noyabrsk, OOO”; “Gazprom Dobycha Urengoi, OOO”; “Gazprom Dobycha Yamburg, OOO”; “Gazprom Energo, OOO”; “Gazprom Flot, OOO”; “Gazprom Gaznadzor, OOO”; “Gazprom Gazobezopasnost, OOO”; “Gazprom Geologorazvedka, OOO”; “Gazprom Inform, OOO”; “Gazprom Invest, OOO”; “Gazprom Kapital, OOO”; “Gazprom Komplektatsiya, OOO”; “Gazprom Mezhregiongaz, OOO”; “Gazprom Neft”; “Gazprom, OAO”; “Gazprom Pererabotka, OOO”; “Gazprom Personal, OOO”; “Gazprom Promgaz, AO”; “Gazprom Russkaya, OOO”; “Gazprom Sotsinvest, OOO”; “Gazprom Svyaz, OOO”; “Gazprom Svyaz, OOO”; “Gazprom Telekom, OOO”; “Gazprom Transgaz Kazan, OOO”; “Gazprom Transgaz Krasnodar, OOO”; “Gazprom Transgaz Makhachkala, OOO”; “Gazprom Transgaz Nizhni Novgorod, OOO”; “Gazprom Transgaz Samara, OOO”; “Gazprom Transgaz Sankt-Peterburg, OOO”; “Gazprom Transgaz Saratov”; “Gazprom Transgaz Stavropol, OOO”; “Gazprom Transgaz Surgut, OOO”; “Gazprom Transgaz Tomsk, OOO”; “Gazprom Transgaz Ufa, OOO”; “Gazprom Transgaz Ukhta, OOO”; “Gazprom Transgaz Volgograd, OOO”; “Gazprom Transgaz Yugorsk, OOO”; “Gazprom Tsentrremont, OOO”; “Gazprom Vniigaz, OOO”; “Kaliningradnefteprodukt OOO”; “Kamchatgazprom, OAO”; “Kinef OOO”; “Kirishiavtoservis OOO”; “Krasnoyarskgazprom, PAO”; “Lazurnaya OOO”; and “Lengiproneftekhim OOO”;

ii. Adding, in alphabetical order, entry for “LLC Volgogradpromproyekt”;

iii. Revising the entries for “Lukoil, OAO”; “Media-Invest OOO”; “Neft-Aktiv LLC”; “Niigazekonomika, OOO”; “Novgorodnefteprodukt OOO”; “OJSC Achinsk Refinery”; “OJSC Angarsk Petrochemical Company”; “OJSC Kuybyshev Refinery”; “OJSC Novokuybyshev Refinery”; “OJSC Orenburgneft”; “OJSC RN Holding”; “OJSC Samotlorneftegaz”; “OJSC Syzran Refinery”; “PJSC Verkhnechonskneftegaz”; “Pskovnefteprodukt OOO”; “RN-Komsomolsky Refinery LLC”; “RN-Yuganskneftegaz LLC”; “Rosneft”; “SNGB AO”; “SO Tvernefteprodukt OOO”; “Sovkhoz Chervishevski PAO”; “Strakhovove Obshchestvo Surgutneftegaz OOO”; “Surgutmebel OOO”; “Surgutneftegas”; “Vostokgazprom, OAO”; “Yamalgazinvest, ZAO”; and “Yuzhno-Kirinskoye Field, in the Sea of Okhotsk”; and

e. Under SWITZERLAND, revising the entry for “Rosneft Trading S.A.”.

The revisions read as follows:

This supplement lists certain entities or addresses subject to license requirements for specified items under parts 744 and 746 of the EAR. License requirements for these entities include exports, reexports, and transfers (in-country) unless otherwise stated. A license is required, to the extent specified on the Entity List, to export, reexport, or transfer (in-country) any item subject to the EAR when an entity or a party to the transaction is operating at an address that is listed on the Entity List under an address entry is a party to the transaction as described in § 748.5(c) through (f) of the EAR. See § 744.11 for licensing requirements in the context of a “standards-related activity.” This list is revised and updated on a periodic basis in this supplement by adding new or amended notifications and deleting notifications no longer in effect.

Country	Entity	License requirement	License review policy	citation

* * * * * * *
CHINA, PEOPLE'S REPUBLIC OF	* * * * * *
	Address 01, Unit D, 16/F One Capital Place, 18 Luard Rd, Wan Chai, Hong Kong.	For items on the CCL and listed in supplement no. 7 to part 746 of the EAR	Presumption of denial	89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	Address 02, Unit 04, 7/F Bright Way Tower, No. 33 Mong Kok Road, Kowloon, Hong Kong.	For items on the CCL and listed in supplement no. 7 to part 746 of the EAR	Presumption of denial	89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	Address 03, Room 19C Lockhart Centre 301-307, Lockhart Rd. Wan Chai, Hong Kong.	For items on the CCL and listed in supplement no. 7 to part 746 of the EAR	Presumption of denial	89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	Address 04, Room 803, Chevalier House 45-51, Chatham Road South, Tsim Sha Tsui, Hong Kong.	For items on the CCL and listed in supplement no. 7 to part 746 of the EAR	Presumption of denial	89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	Address 05, Flat/RM 2309, 23/F, Ho King Commercial Centre, 2-16 Fa Yuen Street, Mong Kok, Kowloon, Hong Kong.	For items on the CCL and listed in supplement no. 7 to part 746 of the EAR	Presumption of denial	89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	Address 06, Office 4, 16/F Ho King Commercial Centre, 2-16 Fayuen Street, Hong Kong.	For items on the CCL and listed in supplement no. 7 to part 746 of the EAR	Presumption of denial	89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	Address 07, Room 1318-19, 13F, Hollywood Plaza, 610 Nathan Road, Mong Kok, Kowloon, Hong Kong.	For items on the CCL and listed in supplement no. 7 to part 746 of the EAR	Presumption of denial	89 FR [INSERT FR PAGE NUMBER AND June 18, 2024]
	Address 08, Room 1318-20, 13F, Hollywood Plaza, 610 Nathan Road, Mong Kok Kowloon, Hong Kong.	For items on the CCL and listed in supplement no. 7 to part 746 of the EAR	Presumption of denial	89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	Advantage Trading Company Limited a.k.a., the following one alias:—Jin Ying Trading Co., Ltd. No. 6 Kin Tai Street, Shop 185 G/F, Hand Wai Industrial Centre, Tuen Mun, New Territories, Hong Kong.	For all items subject to the EAR. (See §§ 744.8(b), 744.11, 734.9(g), 746.8(a)(3), and 744.21(b) of the EAR)	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. See §§ 746.8(b) and 744.21(e)	89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
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	* * * * * *
	Duling Technology (HK) Limited, 2-16 Fayuen Street, Room 4, 16th Floor, Ho King Commercial Centre, Mongkok, Kowloon, Hong Kong.	For all items subject to the EAR (See §§ 744.8(b), 744.11, 734.9(g), 746.8(a)(3), and 744.21(b) of the EAR)	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. See §§ 746.8(b) and 744.21(e)	89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	* * * * * *
	FY International Trading Company, a.k.a., the following one alias:—FYIT. Cac Kitt Building, Room 21B7, Shenzhen Guangdong China; No. 48 Street, Office No. 6, 12th Floor, Wealth Commercial Centre, Kowloon, Hong Kong; 707 to 713 Nathan Road, Flat Room B, 26th Floor, Silvercorp International Tower, Mong Kok, Kowloon, Hong Kong; 426 Shanghai Street, Flat 2002C, 20F, Multifield Commercial Centre, Mongkok, Kowloon, Hong Kong; No. 16 Shing Yip Street, Workshop 603F, Block A, East Sun Industrial Centre, Kowloon, Hong Kong; Flat F 10 Floor Hung Cheong Industrial Centre Phase I 12Tsing Yeung, Tuen Mun, N.T. Hong Kong.	For all items subject to the EAR (See §§ 744.8(b), 744.11, 734.9(g), 746.8(a)(3), and 744.21(b) of the EAR)	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. See §§ 746.8(b) and 744.21(e)	89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	* * * * * *
	Shenzhen Daotong Intelligent Aviation Technology Co., Ltd., a.k.a., the following two aliases: —Autel Robotics; —Daotong Intelligence.	For all items subject to the EAR. (See § 744.11 of the EAR)	Presumption of denial	89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	6th Floor, No. 1, Chuangxiangdi, Yanxiang Intelligent Valley, No. 11 Gaoxin West Road, Guangming New District, Shenzhen, China; Building C1 & B1, Nanshan Zhiyuan, No.1001, Xueyuan Avenue, Xili Street, Nanshan District, Shenzhen, China; Unit 701-702, 7/F, Grandtech Center, 8 On Ping Street, Shatin, N.T., Hong Kong; Unit 06, Floor 4, 501, 7th Floor, No. 8 Xibinhe Road, Yongdingmen, Dongcheng District, Beijing, China; Room 405, No. 5, Jixiang 3rd Road, Yixin Community, Pingdi Street, Longgang District, Shenzhen, China; No. 11303, Unit 1, Building 3, Moore Center, northwest corner of Keji 6th Road, Fenghui South Road, High-tech Zone, Xi'an City, Shaanxi Province, China; No. 701 on the east side and 701 on the west side of the electronics factory in Building 3, Yanxiang Technology Industrial Park, Gaoxin Road, Dongzhou Community, Guangming Street, Guangming District, Shenzhen, China.
	* * * * * *
CYPRUS	* * * * * *
	Rosneft Trade Limited, f.k.a., TNK Trade Limited. Elenion Building 5 Themistokli Dervi, 2nd floor, Lefkosia, Nicosia 1066, Cyprus.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/2/15. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	* * * * * *
RUSSIA	* * * * * *
	Achim Development, OOO, a.k.a., the following two aliases: —Achim Development; —Obshchestvo S Ogranichennoi Otvetstvennostyu `Achim Development'. d.7 ul.Promyshlennaya, Novy Urengoi, Yamalo-Nenetski a.o. 629306, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	preview citation details, 9/7/16. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	* * * * * *
	CJSC VANKORNEFT, a.k.a., the following two aliases: —Vankorneft; —ZAO Vankorneft. Dobrovolcheskoy Brigady St., 15, Krasnoyarsk Territory 660077, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	preview citation details, 9/2/15. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	* * * * * *
	Daltransgaz, OAO, a.k.a., the following two aliases: —Daltransgaz; —Otkrytoe Aktsionernoe Obshchestvo `Daltransgaz'. d. 1 ul.Solnechnaya S. Ilinka, Khabarovski Raion Khabarovski krai 680509, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4)5 of the EAR	See § 746.8(b)(2) of the EAR	preview citation details, 9/7/16. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	* * * * * *
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	Druzhba, AO, a.k.a., the following two aliases: —Aktsionernoe Obshchestvo `Druzhba'; —Druzhba. Rogozinino, Moscow 143397, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/7/16. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	* * * * * *
	Gaz-Oil, OOO (f.k.a., Zakrytoe Aktsionernoe Obshchestvo Gaz Oil), a.k.a., the following two aliases: —Gaz-Oil; —Obshchestvo S Ogranichennoi Otvetstvennostyu `Gaz-Oil'. d.10 B ul.Nametkina, Moscow 117420, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/7/16. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	* * * * * *
	Gazprom Dobycha Irkutsk, OOO (f.k.a., Otkrytoe Aktsionernoe Obshchestvo Irkutskgazprom), a.k.a., the following two aliases: —Gazprom Dobycha Irkutsk; —Obshchestvo S Ogranichennoi Otvetstvennostyu `Gazprom Dobycha Irkutsk'. d.14 ul.Nizhnyaya Naberezhnaya, Irkutsk, Irkutskaya obl 664011, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/7/16. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	Gazprom Dobycha Krasnodar, OOO, a.k.a., the following two aliases: —Gazprom Dobycha Krasnodar; —Obshchestvo S Ogranichennoi Otvetstvennostyu `Gazprom Dobycha Krasnodar'. d.53 ul.Shosse Neftyanikov, Krasnodar, Krasnodarski krai 350051, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/7/16. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	Gazprom Dobycha Kuznetsk, OOO, a.k.a., the following two aliases: —Gazprom Dobycha Kuznetsk; —Obshchestvo S Ogranichennoi Otvetstvennostyu `Gazprom Dobycha Kuznetsk'. d.4 prospekt Oktyabrski, Kemerovo, Kemerovskaya obl 650066, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/7/16. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	Gazprom Dobycha Nadym, OOO, a.k.a., the following two aliases: —Gazprom Dobycha Nadym; —Obshchestvo S Ogranichennoi Otvetstvennostyu `Gazprom Dobycha Nadym'. d.1 ul.Zvereva, Nadym, Yamalo-Nenetski a.o. 629730, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/7/16. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	Gazprom Dobycha Noyabrsk, OOO, a.k.a., the following two aliases: —Gazprom Dobycha Noyabrsk; —Obshchestvo S Ogranichennoi Otvetstvennostyu `Gazprom Dobycha Noyabrsk'. d.20 ul. Respubliki, Noyabrsk, Yamalo-Nenetski a.o. 629802, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/7/16. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	Gazprom Dobycha Urengoi, OOO, a.k.a., the following two aliases: —Gazprom Dobycha Urengoy; —Obshchestvo S Ogranichennoi Otvetstvennostyu `Gazprom Dobycha Urengoi'. d.8 ul.Zheleznodorozhnaya, Novy Urengoi, Yamalo-Nenetski a.o. 629307, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/7/16. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	Gazprom Dobycha Yamburg, OOO, a.k.a., the following two aliases: —Gazprom Dobycha Yamburg; —Obshchestvo S Ogranichennoi Otvetstvennostyu `Gazprom Dobycha Yamburg'. d.9 ul. Geologorazvedchikov, Novy Urengoi, Yamalo-Nenetski a.o 629306, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/7/16. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	Gazprom Energo, OOO, a.k.a., the following two aliases: —Gazprom Energo; —Obshchestvo S Ogranichennoi Otvetstvennostyu `Gazprom Energo'. 8 Korp. 1 ul.Stroitelei, Moscow 117939, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/7/16. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	Gazprom Flot, OOO (f.k.a., Obshchestvo S Ogranichennoi Otvetstvennostyu Gazflot), a.k.a., the following two aliases: —Gazprom Flot; —Obshchestvo S Ogranichennoi Otvetstvennostyu `Gazprom Flot'. d. 12 A ul.Nametkina, Moscow 117420, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/7/16. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	Gazprom Gaznadzor, OOO, a.k.a., the following two aliases: —Gazprom Gaznadzor; —Obshchestvo S Ogranichennoi Otvetstvennostyu `Gazprom Gaznadzor'. 41 str. 1 prospekt Vernadskogo, Moscow 119415, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/7/16. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	Gazprom Gazobezopasnost, OOO, a.k.a., the following two aliases: —Gazprom Gazobezopasnost; —Obshchestvo S Ogranichennoi Otvetstvennostyu `Gazprom Gazobezopasnost'. d. 8 korp. 1 ul.Stroitelei, Moscow 119311, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/7/16. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
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	Gazprom Geologorazvedka, OOO (f.k.a., Obshchestvo S Ogranichennoi Otvetstvennostyu Gazprom Dobycha Krasnoyarsk), a.k.a., the following two aliases: —Gazprom Geologorazvedka; —Obshchestvo S Ogranichennoi Otvetstvennostyu `Gazprom Geologorazvedka'. d.70 ul.Gertsena, Tyumen, Tyumenskaya obl. 625000, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/7/16. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	Gazprom Inform, OOO (f.k.a., Zakrytoe Aktsionernoe Obshchestvo Informgazinvest), a.k.a., the following two aliases: —Gazprom Inform; —Obshchestvo S Ogranichennoi Otvetstvennostyu `Gazprom Inform'. d. 13 str. 3 ul.Bolshaya Cheremushkinskaya, Moscow 117447, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/7/16. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	Gazprom Invest, OOO, a.k.a., the following two aliases: —Gazprom Invest; —Obshchestvo S Ogranichennoi Otvetstvennostyu `Gazprom Invest'. d. 6 litera D ul.Startovaya, St. Petersburg 196210, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/7/16. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	Gazprom Kapital, OOO (f.k.a., Obshchestvo S Ogranichennoi Otvetstvennostyu Kap Infin), a.k.a., the following two aliases: —Gazprom Kapital; —Obshchestvo S Ogranichennoi Otvetstvennostyu `Gazprom Kapital'. Sosenskoe Pos, Pos. Gazoprovod, D. 101 Korp. 9, Moscow 142770, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/7/16. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	Gazprom Komplektatsiya, OOO, a.k.a., the following two aliases: —Gazprom Komplektatsiya; —Obshchestvo S Ogranichennoi Otvetstvennostyu `Gazprom Komplektatsiya'. 8 Korp. 1 ul.Stroitelei, Moscow 119991, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/7/16. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	Gazprom Mezhregiongaz, OOO, a.k.a., the following two aliases: —Gazprom Mezhregiongaz; —Obshchestvo S Ogranichennoi Otvetstvennostyu `Gazprom Mezhregiongaz'. d. Dom 24 korp. Liter A nab.Admirala Lazareva, St. Petersburg 197110, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/7/16. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	Gazprom Neft (a.k.a. Gazprom Neft OAO; a.k.a. JSC Gazprom Neft; a.k.a. Open Joint-Stock Company Gazprom Neft; f.k.a. Sibirskaya Neftyanaya Kompaniya OAO) Address: Let. A. Galernaya, 5, ul, St. Petersburg 190000, Russia Alt Address: Ul. Pochtamtskaya, 3-5, St. Petersburg 190000, Russia Alt Address: 3-5 Pochtamtskaya St., St. Petersburg 190000, Russia Alt Address: 125 A. Profsoyuznaya Street, Moscow 117647, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/17/14. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	* * * * * *
	Gazprom, OAO (a.k.a. Open Joint Stock Company Gazprom; a.k.a. OAO Gazprom; a.k.a. Gazprom) Address: 16 Nametkina St., Moscow, Russia GSP-7, 117997, Russia Alt Address: 16 Nametkina ul., Moscow 117991, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/17/14. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	Gazprom Pererabotka, OOO, a.k.a., the following two aliases: —Gazprom Pererabotka; —Obshchestvo S Ogranichennoi Otvetstvennostyu `Gazprom Pererabotka'. d.16 ul.Ostrovskogo, Surgut, Khanty-Mansiski Avtonomny okrug—Yugra a.o. 628417, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/7/16. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	Gazprom Personal, OOO, a.k.a., the following two aliases: —Gazprom Personal; —Obshchestvo S Ogranichennoi Otvetstvennostyu `Gazprom Personal'. 16, Gsp-7 ul.Nametkina, Moscow 117997, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/7/16. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	Gazprom Promgaz, AO (f.k.a., Otkrytoe Aktsionernoe Obshchestvo Gazprom Promgaz), a.k.a., the following two aliases: —Aktsionernoe Obshchestvo `Gazprom Promgaz' —Gazprom Promgaz. d. 6 ul.Nametkina, Moscow 117420, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/7/16. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
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	Gazprom Russkaya, OOO (f.k.a., Obshchestvo S Ogranichennoi Otvetstvennostyu Kovyktneftegaz), a.k.a., the following two aliases: —Gazprom Russkaya; —Obshchestvo S Ogranichennoi Otvetstvennostyu `Gazprom Russkaya'. 3 korp.2 ul.Varshavskaya, St. Petersburg 196128, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/7/16. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	Gazprom Sotsinvest, OOO (f.k.a., Gazprominvestarena OOO), a.k.a., the following two aliases: —Gazprom Sotsinvest; —Obshchestvo S Ogranichennoi Otvetstvennostyu `Gazprom Sotsinvest'. d. 20 litera A nab.Aptekarskaya, St. Petersburg 197022, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/7/16. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	Gazprom Svyaz, OOO, a.k.a., the following two aliases: —Gazprom Svyaz; —Obshchestvo S Ogranichennoi Otvetstvennostyu `Gazprom Svyaz'. d.16 ul.Nametkina, Moscow 117997, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/7/16. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	Gazprom Telekom, OOO (f.k.a., Zakrytoe Aktsionernoe Obshchestvo Gaztelekom), a.k.a., the following two aliases: —Gazprom Telecom; —Obshchestvo S Ogranichennoi Otvetstvennostyu `Gazprom Telekom'. d. 62 str. 2 shosse Starokaluzhskoe, Moscow 117630, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/7/16. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	Gazprom Transgaz Kazan, OOO, a.k.a., the following two aliases: —Gazprom Transgaz Kazan; —Obshchestvo S Ogranichennoi Otvetstvennostyu `Gazprom Transgaz Kazan'. d.41 ul.Adelya Kutuya, Kazan, Tatarstan resp 420073, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/7/16. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	Gazprom Transgaz Krasnodar, OOO, a.k.a., the following two aliases: —Gazprom Transgaz Krasnodar; —Obshchestvo S Ogranichennoi Otvetstvennostyu `Gazprom Transgaz Krasnodar'. d.36 ul.Im Dzerzhinskogo, Krasnodar, Krasnodarski krai 350051, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/7/16. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	Gazprom Transgaz Makhachkala, OOO (f.k.a., Obshchestvo S Ogranichennoi Otvetstvennostyu Gazprom Transgaz Makhachkala), a.k.a., the following two aliases: —Gazprom Transgaz Makhachkala; —Obshchestvo S Ogranichennoi Otvetstvennostyu `Gazprom Transgaz Makhachkala'.ul.O.Bulacha, Makhachkala, Dagestan resp. 367030, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/7/16. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	Gazprom Transgaz Nizhni Novgorod, OOO, a.k.a., the following two aliases: —Gazprom Transgaz Nizhny Novgorod; —Obshchestvo S Ogranichennoi Otvetstvennostyu `Gazprom Transgaz Nizhni Novgorod'. d.11 ul.Zvezdinka, Nizhni Novgorod, Nizhegorodskaya obl. 603950, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/7/16. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	Gazprom Transgaz Samara, OOO, a.k.a., the following two aliases: —Gazprom Transgaz Samara; —Obshchestvo S Ogranichennoi Otvetstvennostyu `Gazprom Transgaz Samara'. d. 106 A str. 1 ul.Novo-Sadovaya, Samara, Samarskaya obl. 443068, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/7/16. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	Gazprom Transgaz Sankt-Peterburg, OOO, a.k.a., the following two aliases: —Gazprom Transgaz Saint Petersburg; —Obshchestvo S Ogranichennoi Otvetstvennostyu `Gazprom Transgaz Sankt-Peterburg'. 3 korp.2 ul.Varshavskaya, St. Petersburg 196128, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/7/16. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	Gazprom Transgaz Saratov, OOO, a.k.a., the following two aliases: —Gazprom Transgaz Saratov; —Obshchestvo S Ogranichennoi Otvetstvennostyu `Gazprom Transgaz Saratov'. d.118 A prospekt Im 50 Let Oktyabrya, Saratov, Saratovskaya obl. 410052, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/7/16. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	Gazprom Transgaz Stavropol, OOO, a.k.a., the following two aliases: —Gazprom Transgaz Stavropol; —Obshchestvo S Ogranichennoi Otvetstvennostyu `Gazprom Transgaz Stavropol'. d.6 prospekt Oktyabrskoi Revolyutsii, Stavropol, Stavropolski krai 355000, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/7/16. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
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	Gazprom Transgaz Surgut, OOO, a.k.a., the following two aliases: —Gazprom Transgaz Surgut; —Obshchestvo S Ogranichennoi Otvetstvennostyu `Gazprom Transgaz Surgut'. d.1 ul.Universitetskaya, Surgut, Khanty-Mansiski Avtonomny okrug—Yugra a.o. 628406, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/7/16. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	Gazprom Transgaz Tomsk, OOO, a.k.a., the following two aliases: —Gazprom Transgaz Tomsk; —Obshchestvo S Ogranichennoi Otvetstvennostyu `Gazprom Transgaz Tomsk'. d.9 prospekt Frunze, Tomsk, Tomskaya obl. 634029, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/7/16. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	Gazprom Transgaz Ufa, OOO (f.k.a., Obshchestvo S Ogranichennoi Otvetstvennostyu Bashtransgaz Otkrytogo Aktsionernogo Obshchestva Gazprom), a.k.a., the following two aliases: —Gazprom Transgaz Ufa; —Obshchestvo S Ogranichennoi Otvetstvennostyu `Gazprom Transgaz Ufa'. 59 ul.Rikharda Zorge, Ufa, Bashkortostan resp. 450054, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/7/16. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	Gazprom Transgaz Ukhta, OOO, a.k.a., the following two aliases: —Gazprom Transgaz Ukhta; —Obshchestvo S Ogranichennoi Otvetstvennostyu `Gazprom Transgaz Ukhta'. d.39/2 prospekt Lenina, Ukhta, Komi resp 169312, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/7/16. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	Gazprom Transgaz Volgograd, OOO, a.k.a., the following two aliases: —Gazprom Transgaz Volgograd; —Obshchestvo S Ogranichennoi Otvetstvennostyu `Gazprom Transgaz Volgograd'. 58 ul.Raboche-Krestyanskaya, Volgograd, Volgogradskaya obl. 400074, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/7/16. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	Gazprom Transgaz Yugorsk, OOO (f.k.a., Obshchestvo S Ogranichennoi Otvetstvennostyu Tyumentransgaz), a.k.a., the following two aliases: —Gazprom Transgaz Yugorsk; —Obshchestvo S Ogranichennoi Otvetstvennostyu `Gazprom Transgaz Yugorsk'. d.15 ul.Mira, Yugorsk, Khanty-Mansiski Avtonomny okrug, Yugra a.o. 628260, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/7/16. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	Gazprom Tsentrremont, OOO, a.k.a., the following two aliases: —Gazprom Tsentrremont; —Obshchestvo S Ogranichennoi Otvetstvennostyu `Gazprom Tsentrremont'. d.1 ul.Moskovskaya, Shchelkovo, Moskovskaya obl 141112, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/7/16. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	Gazprom Vniigaz, OOO, a.k.a., the following two aliases: —Gazprom Vniigaz; —Obshchestvo S Ogranichennoi Otvetstvennostyu `Nauchno-Issledovatelski Institut Prirodnykh Gazov I Gazovykh Tekhnologi—Gazprom Vniigaz'. P Razvilka, Leninski Raion, Moskovskaya obl. 142717, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/7/16. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	* * * * * *
	Kaliningradnefteprodukt OOO, a.k.a., the following three aliases: —Kaliningradnefteprodukt LLC; —Limited Liability Company Kaliningradnefteproduct; and —LLC Kaliningradnefteproduct 22-b Komsomolskaya Ulitsa, Central District, Kaliningrad, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	Presumption of denial	, 2/16/18. , 3/22/18. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	* * * * * *
	Kamchatgazprom, OAO, a.k.a., the following two aliases: —Kamchatgazprom; —Otkrytoe Aktsionernoe Obshchestvo 'Kamchatgazprom'. d.19 ul.Pogranichnaya, Petropavlovsk-Kamchatski, Kamchatski krai 683032, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/7/16. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	* * * * * *
	Kinef OOO, a.k.a., the following three aliases: —Kinef, LLC; —Limited Liability Company Production Association Kirishinefteorgsintez; —LLC Kinef. d. 1 Shosse Entuziastov, Kirishi, Leningradskaya Oblast 187110, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	Presumption of denial	, 2/16/18. , 3/22/18. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
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	Kirishiavtoservis OOO, a.k.a., the following two aliases: —Limited Liability Company Kirishiavtoservis; —LLC Kirishiavtoservis. lit A, 12 Smolenskaya Ulitsa, St. Petersburg 196084.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	Presumption of denial	, 2/16/18. , 3/22/18. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	* * * * * *
	Krasnoyarskgazprom, PAO, a.k.a., the following two aliases: —Krasnoyarskgazprom; —Publichnoe Aktsionernoe Obshchestvo 'Krasnoyarskgazprom. d.1 pl.Akademika Kurchatova, Moscow 123182, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/7/16. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	* * * * * *
	Lazurnaya, OOO, a.k.a., the following two aliases: —Obshchestvo S Ogranichennoi Otvetstvennostyu 'Lazurnaya'; —“Lazurnaya”. d.103 prospekt Kurortny, Sochi, Krasnodarski krai 354024, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/7/16. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	Lengiproneftekhim OOO, a.k.a., the following three aliases: —Institut Po Proektirovaniyu Predpriyaty Neftepererabatyvayuschey I Neftekhimicheskoy Promyshlennosti, Limited Liability Company; —Limited Liability Company Oil Refining and Petrochemical Facilities Design Institute; —LLC Lengiproneftekhim. d. 94, Obvodnogo Kanala, nab, St. Petersburg 196084, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	Presumption of denial	, 2/16/18. , 3/22/18. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	* * * * * *
	LLC Volgogradpromproyekt, a.k.a. the following five aliases: —Obshchestvo S Ogranichennoi Otvetstvennostyu “Volgogradpromproekt”; —OOO Volgogradpromproyekt; —OOO Volgogradpromproekt; —OOO VPP; —VPP. 47 Promyslovaya Street, Volgograd, Volgograd Region, 400057, Russia.	For all items subject to the EAR. (See §§ 734.9(g), 746.8(a)(3), and 744.2l(b) of the EAR)	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. See §§ 746.8(b) and 744.21(e)	89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	Lukoil, OAO (a.k.a. Lukoil; a.k.a. Lukoil Oil Company; a.k.a. Neftyanaya Kompaniya Lukoil OOO; a.k.a. NK Lukoil OAO) Address: 11 Sretenski boulevard, Moscow 101000, Russia	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/17/14. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	* * * * * *
	Media-Invest OOO, a.k.a., the following two aliases: —Limited Liability Company Media-Invest; —LLC Media-Invest. 17 Bld 1 Zubovsky Blvd, Moscow 119847, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	Presumption of denial	, 2/16/18. , 3/22/18. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	* * * * * *
	Neft-Aktiv LLC, a.k.a., the following two aliases: —OOO Neft —Aktiv; —RN-Aktiv OOO. Ulica Kaluzhskaya M., d., 15, str. 28, Moscow 119071, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/2/15. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
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	Niigazekonomika, OOO, a.k.a., the following two aliases: —Niigazeconomika; —Obshchestvo S Ogranichennoi Otvetstvennostyu 'Nauchnoissledovatelski Institut Ekonomiki I Organizatsii Upravleniya V Gazovoipromyshlennosti'. d. 20 korp. 8 ul. Staraya Basmannaya, Moscow 107066, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/7/16. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	* * * * * *
	Novgorodnefteprodukt OOO, a.k.a., the following three aliases: —Limited Liability Company Novgorodnefteproduct; —LLC Novgorodnefteproduct; —Novgorodnefteprodukt LLC. d. 20 Germana Ulitsa, Veliky Novgorod, Novgorodskaya Oblast 173002, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	Presumption of denial	, 2/16/18. , 3/22/18. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
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	OJSC Achinsk Refinery, a.k.a., the following two aliases: —Achinsk Refinery; —OAO Achinsk Oil Refinery VNK. Achinsk Refinery industrial area, Bolsheuluisky district, Krasnoyarsk territory 662110, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/2/15. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	OJSC Angarsk Petrochemical Company, a.k.a., the following one alias: —Angarsk Refinery. Angarsk, Irkutsk region 665830, Russia; 6 ul. K. Marksa, Angarsk 665830, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/2/15. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	OJSC Kuybyshev Refinery, a.k.a., the following two aliases: —Kuibyshev Refinery; —OJSC Kuibyshev Refinery. 25 Groznenskaya st., Samara 443004, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/2/15. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	OJSC Novokuybyshev Refinery, a.k.a., the following one alias: —Novokuibyshevsk Refinery. Novokuibyshevsk, Samara region 446207, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/2/15. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	OJSC Orenburgneft, a.k.a., the following two aliases: —OAO JSC Orenburgneft; —Orenburgneft. Magistralnaya St., 2, Buzuluk, the Orenburg Region 461040, Russia; st. Magistralynaya 2, Buzuluk 461040, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/2/15. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
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	OJSC RN Holding, a.k.a., the following one alias: —RN Holding OAO. 60 Oktyabrskaya ul., Uvat 626170, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/2/15. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	OJSC Samotlorneftegaz, a.k.a., the following two aliases: —Samotlorneftegaz; —Samotlorneftegaz JSC. Lenina St. 4, the Tyumen Region, Khanty-Mansiysk, Autonomous District, Nizhnevartovsk 628606, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/2/15. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	* * * * * *
	OJSC Syzran Refinery, a.k.a., the following two aliases: —Open Joint-Stock Oil and Gas Company Syzran; —Syzran Refinery. 1 Astrakhanskaya st., Syzran, Samara region 446009, Russia; Moskvorechje street 105, Building 8, Moscow 115523, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/2/15. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
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	PJSC Verkhnechonskneftegaz, a.k.a., the following two aliases: —OJSC Verkhnechonskneftegaz; —Verkhnechonskneftegaz. Baikalskaya St., 295 B, Irkutsk 664050, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/2/15. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
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	Pskovnefteprodukt OOO, a.k.a., the following two aliases: —Limited Liability Company Marketing Association Pskovnefteproduct; —LLC Pskovnefteproduct. 4 Oktyabrsky Prospekt, Pskov 180000, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	Presumption of denial	, 2/16/18. , 3/22/18. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
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	RN-Komsomolsky Refinery LLC, a.k.a., the following three aliases: —Komsomolsk Refinery; —LLC RN-Komsomolsk Refinery; —RN-Komsomolski NPZ OOO. 115 Leningradskaya st., Komsomolsk-on-Amur, Khabarovsk region 681007, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/2/15. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	RN-Yuganskneftegaz LLC, a.k.a., the following two aliases: —RN-Yuganskneftegaz OOO; —Yuganskneftegaz. Lenina St., 26, Nefteyugansk, Tyumen Region, 628309, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/2/15. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
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	Rosneft (a.k.a. Open Joint-Stock Company Rosneft Oil Company; a.k.a. OAO Rosneft Oil Company; a.k.a. Oil Company Rosneft; a.k.a. OJSC Rosneft Oil Company; a.k.a. Rosneft Oil Company) Address: 26/1, Sofiyskaya Embankment, 117997, Moscow, Russia	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/17/14. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
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	SNGB AO, a.k.a., the following three aliases: —Closed Joint Stock Company Surgutneftegasbank (ZAO SNGB); —Joint Stock Company Surgutneftegasbank; —JSC BANK SNGB. 19 Kukuyvitskogo Street, Surgut 628400, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	Presumption of denial	, 2/16/18. , 3/22/18. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
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	SO Tvernefteprodukt OOO, a.k.a., the following two aliases: —Limited Liability Company Marketing Association Tvernefteproduct; —LLC MA Tvernefteproduct. 6 Novotorzhskaya Ulitsa, Tver, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR.	Presumption of denial	, 2/16/18. , 3/22/18. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
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	Sovkhoz Chervishevski PAO, a.k.a., the following three aliases: —OJSC Sovkhoz Chervishevsky; —Open Joint Stock Company Sovkhoz Chervishevsky; —Sovkhoz Chervishevsky, JSC. d. 81 Sovetskaya Ulitsa, S. Chervichevsky, Tyumensky Rayon, Tyumensky Oblast 625519, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	Presumption of denial	, 2/16/18. , 3/22/18. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
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	Strakhovove Obshchestvo Surgutneftegaz OOO, a.k.a., the following three aliases: —Insurance Company Surgutneftegas, LLC; —Limited Liability Company Insurance Company Surgutneftegas; —LLC Insurance Company Surgutneftegas. 9/1 Lermontova Ulitsa, Surgut 628418, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	Presumption of denial	, 2/16/18. , 3/22/18. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
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	Surgutmebel OOO, a.k.a., the following four aliases: —Limited Liability Company Syrgutmebel; —LLC Surgutmebel; —LLC Syrgutmebel; and —Surgutmebel, LLC. Vostochnaya Industrial 1 Territory 2, Poselok Barsovo, Surgutsky District, Yugra, Khanty-Mansiysky Autonomos Okrug, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	Presumption of denial	, 2/16/18. , 3/22/18. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	Surgutneftegas (a.k.a. Open Joint Stock Company Surgutneftegas; a.k.a. Otkrytoe Aktsionernoe Obshchestvo Surgutneftegaz; a.k.a. Surgutneftegas OAO; a.k.a. Surgutneftegas OJSC; a.k.a. Surgutneftegaz OAO) Address: ul. Grigoriya Kukuyevitskogo, 1, bld. 1, Khanty-Mansiysky Autonomous Okrug—Yugra, the city of Surgut, Tyumenskaya Oblast 628415, Russia Alt Address: korp. 1 1 Grigoriya Kukuevitskogo ul., Surgut, Tyumenskaya oblast 628404, Russia. Alt Address: Street Kukuevitskogo 1, Surgut, Tyumen Region 628415, Russia	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/17/14. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	* * * * * *
	Vostokgazprom, OAO, a.k.a., the following two aliases: —Otkrytoe Aktsionernoe Obshchestvo 'Vostokgazprom'; —Vostokgazprom. d.73 ul.Bolshaya Podgornaya, Tomsk, Tomskaya obl. 634009, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/7/16. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
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	Yamalgazinvest, ZAO, a.k.a., the following two aliases: —Yamalgazinvest; —Zakrytoe Aktsionernoe Obshchestvo 'Yamalgazinvest'. d. 41 korp. 1 prospekt Vernadskogo, Moscow 117415, Russia.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/7/16. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
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	Yuzhno-Kirinskoye Field, in the Sea of Okhotsk.	For all items subject to the EAR. (See § 746.8(a)(4) of the EAR)	Presumption of denial	, 8/7/15. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	* * * * * *
SWITZERLAND	* * * * * *
	Rosneft Trading S.A., 2, Rue Place du Lac, 1204, Geneva, Switzerland.	For all items subject to the EAR when used in projects specified in § 746.8(a)(4) of the EAR	See § 746.8(b)(2) of the EAR	, 9/2/15. 89 FR [INSERT FR PAGE NUMBER AND June 18, 2024].
	* * * * * *

10. Supplement no. 5 is amended by revising the second paragraph to read as follows:

When determining to add an entry or modify an existing entry, to the Entity List or MEU List, the ERC will also specify the section or sections of the EAR that provide the basis for that determination. All additions and modifications to the MEU List are done pursuant to § 744.21(b). The license requirements, the license application review policy, or the availability of license exceptions for entities or address entries on the MEU List are specified in § 744.21 under paragraphs (b) to €. In addition, for the Entity List, if the section or sections that form the basis for an addition or modification do not specify the license requirements, the license application review policy, or the availability of license exceptions, the ERC will specify the license requirements, the license application review policy and which license exceptions (if any) will be available for shipments to that entry.

11. The authority citation for 15 CFR part 746 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. 287c ; Sec 1503, Pub. L. 108-11 , 117 Stat. 559; 22 U.S.C. 2151 note ; 22 U.S.C. 6004 ; 22 U.S.C. 7201 et seq.; 22 U.S.C. 7210 ; E.O. 12854 , 58 FR 36587 , 3 CFR , 1993 Comp., p. 614; E.O. 12918 , 59 FR 28205 , 3 CFR , 1994 Comp., p. 899; E.O. 13222 , 66 FR 44025 , 3 CFR , 2001 Comp., p. 783; E.O. 13338 , 69 FR 26751 , 3 CFR , 2004 Comp., p 168; Presidential Determination 2003-23, 68 FR 26459 , 3 CFR , 2004 Comp., p. 320; Presidential Determination 2007-7, 72 FR 1899 , 3 CFR , 2006 Comp., p. 325; Notice of May 8, 2024, 89 FR 40355 (May 9, 2024).

12. Remove and reserve § 746.5.

13. Section 746.8 is revised to read as follows:

(a) License requirements. Except as described in the exclusions in paragraph (a)(12), and in addition to license requirements specified on the Commerce Control List (CCL) in supplement no. 1 to part 774 of the EAR and in other provisions of the EAR, including part 744 and other sections of part 746, a license is required as specified under paragraphs (a)(1) through (7). These license requirements follow an order of review, which provides guidance on the relationship between the different license requirements and which ones take precedence for certain items. For purposes of paragraphs (a)(5) through (7) of this section, a license is not required for any item that is listed in supplement nos. 4, 5 or 6 to this part that is also classified under an Export Control Classification Number (ECCN) on the Commerce Control List (CCL) in supplement no. 1 to part 774 of the EAR. See paragraph (a)(1) of this section and part 742 for license requirements for exports, reexports, and transfers to or within Russia or Belarus for items classified in ECCNs, as well as part 744 for end-use and end-user controls that may apply to your transaction. Paragraphs (a)(1) and (2) of this section, are also used for determining license requirements for exports, reexports, and transfers to or within Russia or Belarus of any item that is listed in supplement nos. 4, 5, or 6 to this part and is classified in an ECCN on the CCL in supplement no. 1 to part 774 of the EAR. License requirements in paragraph (a)(4) that apply to exports, reexports, and transfers (in-country) involved in certain end-uses should be reviewed only after license requirements in paragraphs (a)(1) through (a)(3) and (a)(5) through (a)(7) are reviewed.

(1) Items classified in any ECCN on the CCL. A license is required to export, reexport, or transfer (in-country) to or within Russia or Belarus any item subject to the EAR and specified in any Export Control Classification Number (ECCN) on the CCL.

(2) Russia/Belarus/Temporarily occupied Crimea region of Ukraine foreign “direct product” (FDP) rule. A license is required to reexport, export from abroad, or transfer (in-country) to any destination any foreign-produced item subject to the EAR under the Russia/Belarus/Temporarily occupied Crimea region of Ukraine under the FDP rule described in § 734.9(f) of the EAR.

(3) Russia/Belarus-Military End User FDP rule. A license is required to reexport, export from abroad, or transfer (in-country) to or within any destination any foreign-produced item subject to the EAR under § 734.9(g) of the EAR.

Note 1 to paragraph (a)(3).

A `military end user' for purposes of this paragraph is any entity listed on the Entity List in supplement no. 4 to part 744 of the EAR with a Footnote 3 designation.

(4) Oil and Gas. (i) Certain exploration or production of oil or gas. A license is required to export, reexport, or transfer (in-country) any item subject to the EAR listed in supplement no. 2 to this part and items specified in ECCNs 0A998, 1C992, 3A229, 3A231, 3A232, 6A991, 8A992, and 8D999 when you “know” that the item will be used directly or indirectly in exploration for, or production of, oil or gas in Russian deepwater (greater than 500 feet) or Arctic offshore locations or shale formations in Russia or Belarus, or are unable to determine whether the item will be used in such projects. Such items include, but are not limited to, drilling rigs, parts for horizontal drilling, drilling and completion equipment, subsea processing equipment, Arctic-capable marine equipment, wireline and down hole motors and equipment, drill pipe and casing, software for hydraulic fracturing, high pressure pumps, seismic acquisition equipment, remotely operated vehicles, compressors, expanders, valves, and risers.

(ii) Additional prohibition on those informed by BIS. BIS may inform persons, either individually by specific notice or through amendment to the EAR, that a license is required for a specific export, reexport, or transfer (in-country) or for the export, reexport, or transfer (in-country) of specified items to a certain end-user or end-use, because there is an unacceptable risk of use in, or diversion to, the activities specified in this section in Russia or Belarus. Specific notice is to be given only by, or at the direction of, the Principal Deputy Assistant Secretary for Strategic Trade and Technology Security or the Deputy Assistant Secretary for Strategic Trade. When such notice is provided orally, it will be followed by a written notice within two working days signed by either the Principal Deputy Assistant Secretary for Strategic Trade and Technology Security or the Deputy Assistant Secretary for Strategic Trade. However, the absence of any such notification does not excuse persons from compliance with the license requirements of this section.

(5) Industrial Goods. A license is required to export, reexport, or transfer (in-country) any item subject to the EAR listed in supplement no. 4 to this part to or within Russia or Belarus.

(6) Itemized Items. A license is required to export, reexport, or transfer (in-country) any item subject to the EAR listed in supplement no. 6 to this part to or within Russia or Belarus.

(7) `Luxury goods.' A license is required to export, reexport, or transfer (in-country) any item subject to the EAR listed in supplement no. 5 to this part to or within Russia or Belarus.

Note 2 to paragraph (a)(7):

For purposes of paragraph (a)(7) of this section, a `luxury Start Printed Page 51663 good' means any item that is identified in supplement no. 5 to this part.

(8) through (11) [RESERVED]

(12) Exclusions from license requirements and scope of U.S.-origin controlled content. Paragraphs (a)(12)(i), (ii), and (iii)(A) of this section exclude certain exports, reexports, and transfers (in-country) from the scope of the license requirements of this section. Paragraph (a)(12)(iii)(B) excludes certain items from the scope of U.S.-origin content for purposes of de minimis calculations from certain destinations.

(i) Deemed exports and deemed reexports. The license requirements in paragraph (a) do not apply to deemed exports or reexports. However, the exclusion for deemed exports and deemed reexports is limited to the license requirements specified only in this section of the EAR. Any deemed export or deemed reexport to a Russian or Belarusian national must be made in accordance with all other applicable EAR license requirements, such as CCL-based license requirements. For example, the release of NS1 controlled technology to a Russian or Belarusian national in the United States or in a third country would require a CCL-based deemed export or deemed reexport license (as applicable). Consequently, authorization (in the form of a deemed export or deemed reexport license, or license exception eligibility) would be required under the EAR notwithstanding the exclusion in this paragraph (b).

(ii) Mass market encryption commodities and software. Commodities specified under ECCN 5A991, and commodities and software classified under ECCNs 5A992.c or 5D992.c that have been `classified in accordance with § 740.17,' do not require a license to or within Russia or Belarus for the following civil end-users:

(A) Wholly owned U.S. subsidiaries, branches, or sales offices;

(B) Joint ventures between two or more U.S. companies, including the wholly owned subsidiaries, branches, or sales offices of such joint ventures;

(C) Joint ventures between U.S. companies and companies headquartered in countries from Country Group A:5 and A:6 in supplement no. 1 to part 740 of the EAR, including the wholly owned subsidiaries, branches, or sales offices of such joint ventures;

(D) Wholly owned subsidiaries, branches, or sales offices of companies headquartered in countries from Country Group A:5 and A:6 in supplement no. 1 to part 740; or

(E) Joint ventures between two or more companies headquartered in Country Group A:5 and A:6 in supplement no. 1 to part 740, including the wholly owned subsidiaries, branches, or sales offices of such joint ventures.

(iii) Global Export Control Coalition (GECC). The countries listed in supplement no. 3 to this part have committed to implementing substantially similar export controls on Russia, Belarus, and the temporarily occupied Crimea region of Ukraine under their domestic laws. Therefore, exports or reexports from the countries listed in supplement no. 3 to this part or transfers (in-country) within the countries listed in this supplement are not subject to the following license requirements in paragraph (a) of this section unless a limit to the exclusion is described in the Scope column in supplement no. 3 to this part:

(A) Foreign direct product rules. The license requirement described in paragraphs (a)(2) and (3) of this section;

(B) De minimis. For purposes of determining U.S.-origin controlled content under supplement no. 2 to part 734 of the EAR, when making a de minimis calculation for reexports and exports from abroad to Russia or Belarus, the license requirements in paragraphs (a)(1) and (a)(4) through (7) of this section are not used to determine controlled U.S.-origin content in a foreign-made item, provided the criteria of paragraphs (a)(12)(B)( 1 ) and ( 2 ) of this section are met:

( 1 ) The U.S.-origin content is described in an Anti-Terrorism (AT)-only ECCN or is designated EAR99. For purposes of this paragraph, AT-only items mean any ECCN that only specifies either only AT in the reason for control paragraph of the ECCN or is classified under ECCN 9A991; and

( 2 ) The foreign made item will be reexported or exported from abroad from a destination described in supplement no. 3 to this part.

(b) Licensing policy. (1) License applications required under paragraph (a)(3) of this section will be reviewed under a policy of denial in all cases.

(2) Applications for the export, reexport, or transfer (in-country) of any item pursuant to paragraph (a)(4) of this section that require a license for Russia or Belarus will be reviewed under a policy of denial when for use directly or indirectly for exploration or production from deepwater (greater than 500 feet), Arctic offshore, or shale projects in Russia or Belarus that have the potential to produce oil or gas.

(3) Applications for the export, reexport, or transfer (in-country) of any item pursuant to paragraphs (a)(1), (2), and (5) through (7) of this section will be reviewed under a policy of denial. However, the following types of license applications submitted pursuant to paragraphs (a)(1), (2), and (5) through (7) of this section will be reviewed on a case-by-case basis to determine whether the transaction in question would benefit the Russian or Belarusian government or defense sector:

(i) Applications for export, reexport, or transfer (in-country) of items that may be necessary for health and safety reasons, including the safety of flight, maritime safety, and civil nuclear safety;

(ii) Applications for the disposition of items by companies not headquartered in Country Group D:1, D:5, E:1, or E:2 in supplement no. 1 to part 740 that are winding down or closing all operations in Russia or Belarus;

(iii) Applications for items that meet humanitarian needs, including applications for items that are predominantly agricultural or medical in nature;

(iv) Applications for government-to-government activities or to support government space cooperation;

(v) Replacement licenses for exports and reexports to and transfers within Russia and Belarus of items described in HTS-6 Codes or items described in supplement no. 6 to part 746 that were added to the EAR and made subject to license requirements after the validation date of the BIS license.

(vi) Applications for items destined to:

(B) Foreign subsidiaries, branches, or sales offices of U.S. companies that are joint ventures with other U.S. companies;

(C) Joint ventures of U.S. companies with companies headquartered in countries from Country Group A:5 and A:6 in supplement no. 1 to part 740 of the EAR;

(D) The wholly owned subsidiaries, branches, or sales offices of companies headquartered in countries from Country Group A:5 and A:6 in supplement no. 1 to part 740; or

(E) Joint ventures of companies headquartered in Country Groups A:5 and A:6 with other companies headquartered in Country Groups A:5 and A:6; and

(vii) Applications for companies headquartered in Country Groups A:5 and A:6 to support civil telecommunications infrastructure.

Note 3 to paragraph (b):

See also § 750.7(c)(1)(xi) of the EAR for the divesture of items within Russia or Belarus or the transfer of items within Russia or Belarus for Start Printed Page 51664 the purpose of reexporting such items from Russia or Belarus. For purposes of § 750.7(c)(1)(xi), divesture means the action or process of selling off subsidiary business interests or investments involving items subject to the EAR.

(c) License exceptions. Consistent with § 740.2(b), BIS may revise, suspend, or revoke License Exception availability under this section consistent with U.S. national security and foreign policy interests, including on a case-by-case basis, to prevent Russian or Belarusian persons from circumventing the restrictions in this section.

(1) No license exceptions may overcome the license requirements in paragraph (a)(3) of this section, except as specified in the entry for a Footnote 3 entity on the Entity List in supplement no. 4 to part 744 of the EAR.

(2) No license exceptions may overcome the license requirements in paragraphs (a)(1), (2), and (4) through (7) of this section except the following:

(i) License Exception TMP for items for use by the news media as set forth in § 740.9(a)(9) of the EAR may overcome the license requirements in paragraphs (a)(1), (2), (7) of this section.

(ii) License Exception GOV (§ 740.11(b) of the EAR) may overcome the license requirements in paragraphs (a)(1), (2), and (4) through (7) of this section.

(iii) License Exception TSU for software updates for civil end-users that are wholly-owned U.S. subsidiaries, branches, or sales offices; foreign subsidiaries, branches, or sales offices of U.S. companies that are joint ventures with other U.S. companies; joint ventures of U.S. companies with companies headquartered in countries from Country Group A:5 and A:6 in supplement no. 1 to part 740 of the EAR countries; the wholly-owned subsidiaries, branches, or sales offices of companies headquartered in countries from Country Group A:5 and A:6 in supplement no. 1 to part 740; or joint ventures of companies headquartered in Country Group A:5 and A:6 with other companies headquartered in Country Groups A:5 and A:6 (§ 740.13(c) of the EAR) may overcome the license requirements in paragraphs (a)(1), (2), and (7) of this section.

(iv) License Exception BAG, excluding firearms and ammunition (§ 740.14, excluding paragraph (e), of the EAR) may overcome the license requirements in paragraphs (a)(1) and (2) of this section.

(v) License Exception AVS, excluding any aircraft registered in, owned or controlled by, or under charter or lease by Russia or Belarus or a national of Russia or Belarus (§ 740.15(a) and (b) of the EAR) may overcome the license requirements in paragraphs (a)(1) and (2) of this section.

(vi) License Exception encryption commodities, software, and technology (ENC) for civil end-users that are wholly-owned U.S. subsidiaries, branches, or sales offices; foreign subsidiaries, branches, or sales offices of U.S. companies that are joint ventures with other U.S. companies; joint ventures of U.S. companies with companies headquartered in countries from Country Group A:5 and A:6 in supplement no. 1 to part 740 of the EAR countries; the wholly-owned subsidiaries, branches, or sales offices of companies headquartered in countries from Country Group A:5 and A:6 in supplement no. 1 to part 740; or joint ventures of companies headquartered in Country Group A:5 and A:6 with other companies headquartered in Country Groups A:5 and A:6 (§§ 740.13(c) and 740.17 of the EAR) may overcome the license requirements is paragraphs (a)(1) and (2) of this section.

(vii) License Exception CCD (§ 740.19 of the EAR) may overcome the license requirements in paragraphs (a)(1), (2), and (4) through (7) of this section.

(viii) License Exception MED (§ 740.23 of the EAR) may overcome the license requirements in paragraphs (a)(5) through (7) of this section.

(d) License Applications. License applications submitted to BIS under this section may include the phrase “§ 746.8” and identify the paragraph (a) license requirement(s) from this section that are applicable. You should include a description such as “paragraph (a)(1) or any of the other paragraph (a) paragraphs that may be applicable to a license application” in Block 9 (Special Purpose) of your license application as described in supplement no. 1 to part 748 of the EAR.

14. Effective September 16, 2024, amend § 746.8 by:

a. In paragraph (a) introductory text first and last sentences;

b. Adding paragraph (a)(8);

c. Revising paragraph (a)(12)(ii) introductory text;

d. Adding paragraph (a)(12)(iv);

e. Revising paragraph (b)(3) introductory text; and

f. Revising paragraph (c)(1).

(8) EAR99 designated software. (i) A license is required to export, reexport, or transfer (in-country) to or within Russia or Belarus any “software” subject to the EAR and described in paragraph (a)(8)(ii) of this section.

(ii) The following types of software subject to the EAR are in the scope of paragraph (a)(8): Enterprise resource planning (ERP); customer relationship management (CRM); business intelligence (BI); supply chain management (SCM); enterprise data warehouse (EDW); computerized maintenance management system (CMMS); project management software, product lifecycle management (PLM); building information modelling (BIM); computer aided design (CAD); computer-aided manufacturing (CAM); and engineering to order (ETO). The scope of paragraph (a)(8) also includes software updates of software identified in this paragraph that are subject to the EAR and designated as EAR99.

(ii) Mass market encryption commodities and software, and software designated EAR99. Commodities specified under ECCN 5A991, and commodities and software classified under ECCNs 5A992.c or 5D992.c that have been `classified in accordance with § 740.17,' as well as software designated EAR99 and identified in paragraph (a)(8)(ii) of this section do not require a license to export, reexport, or transfer (in-country) to or within Russia or Belarus for the following civil end-users:

(iv) Software designated EAR99. Software that is subject to the EAR and designated EAR99 is excluded from the license requirement in paragraph (a)(8) when destined to entities engaged exclusively in the agriculture or medical industries.

(3) Applications for the export, reexport, or transfer (in-country) of any item pursuant to paragraphs (a)(1), (2), Start Printed Page 51665 and (a)(5) through (8) of this section will be reviewed under a policy of denial. However, the following types of license applications submitted pursuant to paragraphs (a)(1), (2), and (4) through (8) will be reviewed on a case-by-case basis to determine whether the transaction in question would benefit the Russian or Belarusian government or defense sector:

15. Remove and reserve § 746.10.

16. Supplement no. 2 to part 746 is amended by revising the heading, paragraph (a) and first sentence of paragraph (b) to read as follows:

(a) The source for the Harmonized Tariff Schedule (HTS)-6 codes and descriptions in this list comes from the United States International Trade Commission (USITC's) Harmonized Tariff Schedule of the United States (2023). The items described in supplement no. 2 to part 746 include any modified or designed “components,” “parts,” “accessories,” and “attachments” therefor regardless of the HTS Code or HTS Description of the “components,” “parts,” “accessories,” and “attachments,” apart from any “part” or minor “component” that is a fastener ( e.g., screw, bolt, nut, nut plate, stud, insert, clip, rivet, pin), washer, spacer, insulator, grommet, bushing, spring, wire, or solder. The exclusion of fasteners from this control does not apply to fasteners that are designated under an HTS Code under this supplement. Although generally fasteners ( e.g., screws, bolts, nuts, nut plates, studs, inserts, clips, rivets, pins), and washers, spacers, insulator, grommets, bushings, springs, wires, and solders are excluded from the scope of this supplement, certain part 744 license requirements for Russia and Belarus extend to all items “subject to the EAR,” and would therefore not exclude these items from the license requirements under that part ( e.g., § 744.21 of the EAR and the Entity List license requirements, which in most cases extend to all items “subject to the EAR”). This supplement includes two columns consisting of the HTS Codes and HTS Descriptions to assist exporters, reexporters, and transferors in identifying the products in this supplement. For information on HTS codes in general, you may contact a local import specialist at U.S. Customs and Border Protection at the nearest port. HTS-6 codes 730424, 731100, 761300, 841350, 841360, 841382, 841392, 842139, 843049, 843139, 843143, 847989, and 870520 are listed in both this supplement and supplement no. 4 to this part, so exporters, reexporters, and transferors must comply with the license requirements under both § 746.8(a)(4) and (5) as applicable.

(b) The items identified in the HTS-6 Code column of this supplement are subject to the license requirement under § 746.8(a)(4). The other column—HTS Description—is intended to assist exporters with their Automated Export System (AES) filing responsibilities. * * *

17. Supplement no. 3 to part 746 is amended by revising the first sentence of the introductory text to read as follows:

Countries listed in this supplement have committed to implementing substantially similar export controls on Russia and Belarus under their domestic laws and are consequently excluded from certain requirements in §§ 746.6 and 746.8 of the EAR, as described in §§ 746.6(a)(4) and 746.8(a)(12)(iii). * * *

18. Supplement no. 4 to part 746 is amended by:

a. Revising the heading, paragraphs (a) and (b); and

b. Adding in numerical order the following entries to the table: “250200,” “250300,” “250410,” “250490,” “250510,” “250590,” “250610,” “250620,” “250700,” “251110,” “251120,” “251310,” “251320,” “251400,” “251611,” “251612,” “251620,” “251690,” “251710,” “251720,” “251730,” “251741,” “251749,” “251810,” “251990,” “252020,” “252310,” “252321,” “252329,” “252330,” “252390,” “252410,” “252490,” “252800,” “252910,” “252921,” “252922,” “252930,” “253010,” “253090,” “260111,” “260112,” “260120,” “260200,” “260300,” “260400,” “260500,” “260600,” “260700,” “260800,” “260900,” “261000,” “261100,” “261220,” “261310,” “261390,” “261400,” “261510,” “261590,” “261610,” “261690,” “261710,” “261790,” “261800,” “261900,” “262011,” “262019,” “262021,” “262029,” “262030,” “262040,” “262060,” “262091,” “262099,” “262110,” “262190,” “270500,” “270600,” “270710,” “270740,” “270750,” “270791,” “270799,” “270810,” “270900,” “271012,” “271020,” “271091,” “271099,” “271111,” “271112,” “271113,” “271114,” “271119,” “271121,” “271129,” “271220,” “271311,” “271312,” “271320,” “271390,” “271410,” “271490,” “720110,” “720120,” “720150,” “720211,” “720219,” “720221,” “720229,” “720230,” “720241,” “720249,” “720250,” “720260,” “720270,” “720280,” “720291,” “720293,” “720299,” “720310,” “720390,” “720410,” “720421,” “720429,” “720430,” “720441,” “720449,” “720450,” “720510,” “720521,” “720529,” “720610,” “720690,” “721410,” “721420,” “721430,” “721491,” “721499,” “721510,” “721590,” “721710,” “721720,” “721730,” “721790,” “722100,” “722211,” “722219,” “722220,” “722240,” “722300,” “722710,” “722720,” “722790,” “722920,” “730110,” “730210,” “730230,” “730240,” “730290,” “730300,” “730431,” “730439,” “730441,” “730449,” “730451,” “730459,” “730490,” “730531,” “730590,” “730621,” “730629,” “730630,” “730640,” “730661,” “730669,” “730690,” “730711,” “730719,” “730721,” “730723,” “730729,” “730791,” “730792,” “730793,” “730799,” “731210,” “731290,” “731300,” “731414,” “731419,” “731420,” “731431,” “731439,” “731441,” “731442,” “731449,” “731450,” “731511,” “731512,” “731519,” “731520,” “731581,” “731582,” “731589,” “731590,” “731600,” “731700,” “731811,” “731812,” “731813,” “731814,” “731815,” “731816,” “731819,” “731821,” “731822,” “731823,” “731829,” “731940,” “731990,” “732010,” “732090,” “732111,” “732112,” “732119,” “732181,” “732182,” “732189,” “732190,” “732211,” “732219,” “732310,” “732391,” “732392,” “732393,” “732394,” “732399,” “732410,” “732421,” “732490,” “732510,” “732591,” “732599,” “732611,” “732619,” “732620,” “740100,” “740200,” “740311,” “740312,” “740313,” “740319,” “740321,” “740322,” “740329,” “740400,” “740500,” “740610,” “740620,” “741011,” “741012,” “741021,” “741022,” “741110,” “741121,” “741122,” “741210,” “741220,” “741300,” “741510,” “741529,” “741533,” “741539,” “741810,” “741820,” “741920,” “741980,” “750110,” “750120,” “750210,” “750220,” “750300,” “750400,” “760110,” “760120,” “760200,” “760310,” “760320,” “760410,” “760421,” “760429,” “760611,” “760612,” “760691,” “760711,” “760719,” “760810,” Start Printed Page 51666 “760820,” “760900,” “761410,” “761490,” “761510,” “761520,” “761691,” “761699,” “780110,” “780191,” “780199,” “780200,” “780600,” “790111,” “790112,” “790120,” “790200,” “790310,” “790390,” “790400,” “790700,” “800200,” “810194,” “810196,” “810197,” “810199,” “810320,” “810330,” “810391,” “810399,” “810411,” “810419,” “810420,” “810430,” “810490,” “810520,” “810530,” “810610,” “810690,” “810820,” “810830,” “810890,” “811010,” “811020,” “811090,” “811100,” “811212,” “811213,” “811219,” “811221,” “811222,” “811229,” “811231,” “811239,” “811251,” “811252,” “811259,” “811261,” “811269,” “811292,” “811299,” “811300,” “820110,” “820130,” “820140,” “820150,” “820160,” “820190,” “820210,” “820231,” “820239,” “820240,” “820291,” “820299,” “820310,” “820320,” “820330,” “820340,” “820412,” “820420,” “820510,” “820520,” “820530,” “820540,” “820551,” “820560,” “820570,” “820590,” “820600,” “820720,” “820730,” “820740,” “820750,” “820770,” “820780,” “820900,” “821000,” “821110,” “821191,” “821192,” “821193,” “821194,” “821195,” “821210,” “821220,” “821290,” “821300,” “821410,” “821420,” “821490,” “821510,” “821520,” “821591,” “821599,” “830110,” “830130,” “830140,” “830150,” “830160,” “830210,” “830220,” “830241,” “830242,” “830249,” “830250,” “830260,” “830300,” “830400,” “830510,” “830520,” “830590,” “830610,” “830630,” “830810,” “830820,” “830890,” “831000,” “831110,” “831120,” “831130,” “831190,” “860120,” “860310,” “860390,” “860500,” “860711,” “860712,” “860719,” “860721,” “860729,” “860730,” “860791,” “860799,” “860800,” “860900,” “870110,” “870129,” “870191,” “870192,” “870193,” “870194,” “870195,” “870210,” “870220,” “870230,” “870240,” “870290,” “870790,” “870810,” “870821,” “870822,” “870829,” “870830,” “870840,” “870850,” “870870,” “870880,” “870891,” “870892,” “870893,” “870894,” “870895,” “870919,” “871000,” “871110,” “871200,” “871491,” “871492,” “871493,” “871494,” “871495,” “871496,” “871499,” “871610,” “871631,” “871640,” “871680,” “890120,” “890130,” “890190,” “890200,” “890400,” “890510,” “890610,” “890690,” “890710,” “890790,” “890800,” “930200,” “930310,” “930320,” “930330,” “930390,” “930400,” “930510,” “930520,” “930599,” “930621,” “930629,” “930630,” “930690,” “930700,” “960350,” and “960390.”

The revisions and additions read as follows:

(a) The source for the Harmonized Tariff Schedule (HTS)-6 codes and descriptions in this list is the United States International Trade Commission (USITC)'s Harmonized Tariff Schedule of the United States (2023). The items described in supplement no. 4 to part 746 include any modified or designed “components,” “parts,” “accessories,” and “attachments” therefor regardless of the HTS Code or HTS Description of the “components,” “parts,” “accessories,” and “attachments,” apart from any “part” or minor “component” that is a fastener ( e.g., screw, bolt, nut, nut plate, stud, insert, clip, rivet, pin), washer, spacer, insulator, grommet, bushing, spring, wire, or solder. The exclusion of fasteners from this control does not apply to fasteners that are designated under an HTS Code under this supplement. Although generally fasteners ( e.g., screws, bolts, nuts, nut plates, studs, inserts, clips, rivets, pins), and washers, spacers, insulators, grommets, bushings, springs, wires, and solders are excluded from the scope of this supplement, certain part 744 license requirements for Russia and Belarus apply to all items “subject to the EAR,” and would therefore not exclude these items from the license requirements under that part ( e.g., § 744.21 and the Entity List license requirements, which in most cases apply to all items “subject to the EAR.”). This supplement includes two columns consisting of the HTS Codes and HTS Descriptions to assist exporters, reexporters, and transferors in identifying the products in this supplement. For information on HTS codes in general, you may contact a local import specialist at U.S. Customs and Border Protection at the nearest port. HTS-6 codes 730424, 731100, 761300, 841350, 841360, 841382, 841392, 842139, 843049, 843139, 843143, 847989, and 870520 are listed in both this supplement and supplement no. 2 to this part, so exporters, reexporters, and transferors must comply with the license requirements under both § 746.8(a)(4) and (5) as applicable. HTS-6 Codes 590500, 840710, 840721, 840729, 840731, 840732, 840733, 840734, 840790, 840810, 840820, 840890, 840910, 840991, 840999, 841111, 841112, 841121, 841122, 841181, 841182, 841191, 841199, 841229, 841290, 841451, 841459, 841460, 841510, 841810, 841821, 841829, 841830, 841840, 841981, 842211, 842310, 842860, 843139, 844312, 844331, 844332, 844339, 845011, 845012, 845019, 845121, 845210, 847010, 847021, 847029, 847030, 847130, 847141, 847149, 847150, 847160, 847170, 847180, 847190, 847290, 847960, 848310, 848320, 848330, 848340, 848350, 848360, 848390, 850811, 850819, 850860, 850980, 851110, 851120, 851130, 851140, 851150, 851180, 851190, 851220, 851230, 851240, 851631, 851650, 851660, 851671, 851672, 851679, 851711, 851713, 851718, 851761, 851762, 851769, 851920, 851930, 851981, 851989, 852110, 852190, 852691, 852712, 852713, 852719, 852721, 852729, 852791, 852792, 852799, 852871, 852872, 852910, 853110, 854370, 854430, 870310, 870321, 870322, 870323, 870324, 870331, 870332, 870333, 870340, 870350, 870360, 870370, 870380, 870390, and 902000 are listed in both this supplement and supplement no. 5 to this part, so exporters, reexporters, and transferors must comply with the license requirements under both §§ 746.8(a)(5) and (7) as applicable.

(b) The items identified in the HTS-6 Code column of this supplement are subject to the license requirement under § 746.8(a)(5). The other column—HTS Description—is intended to assist exporters with their AES filing responsibilities. The license requirements extend to HTS Codes at the 8 and 10 digit level (HTS-8 and HTS-10 codes, respectively) when such longer HTS Codes begin with the HTS-6 Codes as their first 6 numbers. When a description mentions parts related to one or more numerical headings, this means parts related to any HS codes that begin with the digits in the range specified. For example, `headings 8524 to 8528' means any HS code, HTS code, or Schedule B which has 8524, 8525, 8526, 8527, or 8528 as the first four digits.

HTS-6 code	HTS description
250200	UNROASTED IRON PYRITES.
250300	SULFUR OF ALL KINDS, OTHER THAN SUBLIMED SULFUR, PRECIPITATED SULFUR AND COLLOIDAL SULFUR.
250410	NATURAL GRAPHITE, IN POWDER OR IN FLAKES.
250490	NATURAL GRAPHITE, EXCEPT POWDER OR FLAKES.
250510	SILICA SANDS AND QUARTZ SANDS, NATURAL.
250590	SANDS, NATURAL, EXCEPT METAL BEARING OR SILICA OR QUARTZ SANDS.
250610	QUARTZ (OTHER THAN NATURAL SANDS).
250620	QUARTZITE.
250700	KAOLIN AND OTHER KAOLINIC CLAYS, WHETHER OR NOT CALCINED.

Start Printed Page 51667
* * * * * * *
251110	NATURAL BARIUM SULFATE (BARYTES).
251120	NATURAL BARIUM CARBONATE (WITHERITE).

* * * * * * *
251310	PUMICE STONE.
251320	EMERY, NATURAL CORUNDUM, NATURAL GARNET AND OTHER NATURAL ABRASIVES.
251400	SLATE, WHETHER OR NOT ROUGHLY TRIMMED OR MERELY CUT, BY SAWING ETC. INTO BLOCKS OR SLABS OF RECTANGULAR OR SQUARE SHAPE.

* * * * * * *
251611	GRANITE, CRUDE OR ROUGHLY TRIMMED.
251612	GRANITE, MERELY CUT INTO BLOCKS OR SLABS OF RECTANGULAR OR SQUARE SHAPE.
251620	SANDSTONE.
251690	BASALT, PORPHYRY AND OTHER MONUMENTAL OR BUILDING STONE, NESOI, WHETHER OR NOT TRIMMED OR MERELY CUT INTO BLOCKS ETC. OF RECTANGULAR OR SQUARE SHAPE.
251710	PEBBLES, GRAVEL, BROKEN OR CRUSHED STONES FOR CONCRETE AGGREGATES, FOR ROAD METALLING OR BALLAST, SHINGLE AND FLINT, WHETHER OR NOT HEAT TREATED.
251720	MACADAM OF SLAG, DROSS OR SIMILAR INDUSTRIAL WASTE, WHETHER OR NOT INCORPORATING PEBBLES, GRAVEL, BROKEN OR CRUSHED STONES, CITED IN SUBHEADING 251710.
251730	TARRED MACADAM.
251741	MARBLE GRANULES, CHIPPINGS AND POWDER.
251749	GRANULES, CHIPPINGS AND POWDER OF MONUMENTAL OR BUILDING STONES (CALCAREOUS NESOI, ALABASTER, GRANITE, PORPHYRY, BASALT, SANDSTONE ETC.), NESOI.
251810	DOLOMITE NOT CALCINED.

* * * * * * *
251990	FUSED MAGNESIA; DEAD-BURNED (SINTERED) MAGNESIA; OTHER MAGNESIUM OXIDE NESOI, WHETHER OR NOT PURE.

* * * * * * *
252020	PLASTERS CONSISTING OF CALCINED GYPSUM OR CALCIUM SULFATE.

* * * * * * *
252310	CEMENT CLINKERS.
252321	WHITE PORTLAND CEMENT, WHETHER OR NOT ARTIFICIALLY COLORED.
252329	PORTLAND CEMENT, EXCEPT WHITE PORTLAND CEMENT.
252330	ALUMINOUS CEMENT.
252390	HYDRAULIC CEMENTS, NESOI.
252410	CROCIDOLITE ASBESTOS.
252490	ASBESTOS, EXCLUDING CROCIDOLITE.

* * * * * * *
252800	NATURAL BORATES & CONCENTRATES THEREOF, NOT INCLUDING BORATES SEPARATED FROM NATURAL BRINE; NATURAL BORIC ACID CONTAINING LT=85% H3BO3 CALC ON DRY WGT.
252910	FELDSPAR.
252921	FLUORSPAR, CONTAINING BY WEIGHT 97% OR LESS OF CALCIUM FLUORIDE.
252922	FLUORSPAR, CONTAINING BY WEIGHT MORE THAN 97% OF CALCIUM FLUORIDE.
252930	LEUCITE; NEPHELINE AND NEPHELINE SYENITE.
253010	VERMICULITE, PERLITE AND CHLORITES, UNEXPANDED.

* * * * * * *
253090	MINERAL SUBSTANCES, NESOI.
260111	IRON ORE CONCENTRATES (OTHER THAN ROASTED IRON PYRITES) AND NON-AGGLOMERATED IRON ORES.
260112	AGGLOMERATED IRON ORES.
260120	ROASTED IRON PYRITES.
260200	MANGANESE ORES AND CONCENTRATES, INCLUDING FERRUGINOUS MANGANESE ORES AND CONCENTRATES WITH A MANGANESE CONTENT OF 20% OR MORE, BASED ON DRY WEIGHT.
260300	COPPER ORES AND CONCENTRATES.
260400	NICKEL ORES AND CONCENTRATES.
260500	COBALT ORES AND CONCENTRATES.
260600	ALUMINUM ORES AND CONCENTRATES.
260700	LEAD ORES AND CONCENTRATES.
260800	ZINC ORES AND CONCENTRATES.
260900	TIN ORES AND CONCENTRATES.
261000	CHROMIUM ORES AND CONCENTRATES.
261100	TUNGSTEN ORES AND CONCENTRATES.
261220	THORIUM ORES AND CONCENTRATES.
261310	MOLYBDENUM ORES AND CONCENTRATES, ROASTED.
261390	MOLYBDENUM ORES AND CONCENTRATES, NOT ROASTED.
261400	TITANIUM ORES AND CONCENTRATES.
261510	ZIRCONIUM ORES AND CONCENTRATES.
261590	NIOBIUM, TANTALUM AND VANADIUM ORES AND CONCENTRATES.
261610	SILVER ORES AND CONCENTRATES.
Start Printed Page 51668
261690	PRECIOUS METAL ORES AND CONCENTRATES, OTHER THAN SILVER.
261710	ANTIMONY ORES AND CONCENTRATES.
261790	ORES AND CONCENTRATES, NESOI.
261800	GRANULATED SLAG (SLAG SAND) FROM IRON OR STEEL MANUFACTURE.
261900	SLAG, DROSS (OTHER THAN GRANULATED SLAG), SCALINGS AND OTHER WASTE FROM THE MANUFACTURE OF IRON OR STEEL.
262011	HARD ZINC SPELTER.
262019	ASH AND RESIDUE (OTHER THAN FROM THE MANUFACTURE OF IRON OR STEEL) CONTAINING MAINLY ZINC, OTHER THAN HARD ZINC SPELTER.
262021	ASHES AND RESIDUES OF LEADED GASOLINE SLUDGES AND LEADED ANTI-KNOCK COMPOUND SLUDGES.
262029	ASH AND RESIDUES CONTAINING MAINLY LEAD, NESOI.
262030	ASH AND RESIDUES NESOI, CONTAINING MAINLY COPPER.
262040	ASH AND RESIDUES NESOI, CONTAINING MAINLY ALUMINUM.
262060	ASH & RESIDUES CONTAINING ARSENIC, MERCURY, THALLIUM OR THEIR MIXTURES, USED FOR EXTRACTION OF THOSE METALS.
262091	ASH & RESIDUES OF ANTIMONY, BERYLLIUM, CADMIUM, CHROMIUM OR THEIR MIXTURES, NESOI.
262099	ASH AND RESIDUES NESOI, CONTAINING METALS OR METALLIC COMPOUNDS NESOI.
262110	ASH AND RESIDUES FROM THE INCINERATION OF MUNICIPAL WASTE.
262190	ASH AND SLAG, INCLUDING SEAWEED ASH (KELP), NESOI.

* * * * * * *
270500	COAL GAS, WATER GAS, PRODUCER GAS AND SIMILAR GASES, EXCEPT PETROLEUM GASES AND OTHER GASEOUS HYDROCARBONS.
270600	MINERAL TARS, INCLUDING RECONSTITUTED TARS.
270710	BENZENE.

* * * * * * *
270740	NAPHTHALENE.
270750	AROMATIC HYDROCARBONS NESOI, OF WHICH 65% OR MORE BY VOLUME (INCLUDING LOSSES) DISTILLS AT 250 DEGREES CENTIGRADE BY THE ASTM D 86 METHOD.
270791	CREOSOTE OILS.
270799	OILS AND PRODUCTS OF THE DISTILLATION OF HIGH TEMPERATURE COAL TAR, NESOI; SIMILAR PRODUCTS WHICH HAVE A PREDOMINATE (WT.) AROMATIC CONSTITUENT, NESOI.
270810	PITCH FROM COAL AND OTHER MINERAL TARS.

* * * * * * *
270900	PETROLEUM OILS AND OILS FROM BITUMINOUS MINERALS, CRUDE.
271012	LIGHT OILS AND PREPARATIONS CONTAINING GT=70% BY WEIGHT PETROLEUM OILS OR OILS FROM BITUMINOUS MINERALS, NOT CONTAINING BIODIESEL, NOT WASTE OILS.

* * * * * * *
271020	PETROLEUM OILS AND PREPARATIONS CONTAINING BIODIESEL, CONTAINING BY WEIGHT GT=70% PETROLEUM OILS OR OILS OF BITUMINOUS MINERALS, OTHER THAN WASTE OILS.
271091	WASTE OILS CONTAINING POLYCHLORINATED BIPHENYLS (PBC), POLYCHLORINATED TERPHENYLS (PCT) OR POLYBROMINATED BIPHENYLS (PBB).
271099	WASTE OILS, NESOI.
271111	NATURAL GAS, LIQUEFIED.
271112	PROPANE, LIQUEFIED.
271113	BUTANES, LIQUEFIED.
271114	ETHYLENE, PROPYLENE, BUTYLENE AND BUTADIENE, LIQUEFIED.
271119	PETROLEUM GASES AND OTHER GASEOUS HYDROCARBONS, LIQUEFIED, NESOI.
271121	NATURAL GAS, GASEOUS.
271129	PETROLEUM GASES AND OTHER GASEOUS HYDROCARBONS IN A GASEOUS STATE, NESOI (OTHER THAN NATURAL GAS).

* * * * * * *
271220	PARAFFIN WAX CONTAINING BY WEIGHT LESS THAN 0.75% OIL.

* * * * * * *
271311	PETROLEUM COKE, NOT CALCINED.
271312	PETROLEUM COKE, CALCINED.
271320	PETROLEUM BITUMEN.
271390	RESIDUES OF PETROLEUM OILS OR OF OILS OBTAINED FROM BITUMINOUS MINERALS, NESOI.
271410	BITUMINOUS OR OIL SHALE AND TAR SANDS.
271490	BITUMEN AND ASPHALT, NATURAL; ASPHALTITES AND ASPHALTIC ROCKS.

* * * * * * *
720110	NONALLOY PIG IRON CONTAINING 0.5% (WT.) OR LESS PHOSPHORUS, IN PRIMARY FORMS.
720120	NONALLOY PIG IRON CONTAINING MORE THAN 0.5% (WT.) PHOSPHORUS, IN PRIMARY FORMS.
720150	ALLOY PIG IRON; SPIEGELEISEN, IN PRIMARY FORMS.
720211	FERROMANGANESE, CONTAINING MORE THAN 2% (WT.) CARBON.
720219	FERROMANGANESE, CONTAINING 2% (WT.) OR LESS CARBON.
720221	FERROSILICON, CONTAINING MORE THAN 55% (WT.) SILICON.
720229	FERROSILICON, CONTAINING 55% (WT.) OR LESS SILICON.
Start Printed Page 51669
720230	FERROSILICON MANGANESE.
720241	FERROCHROMIUM, CONTAINING MORE THAN 4% (WT.) CARBON.
720249	FERROCHROMIUM, CONTAINING 4% (WT.) OR LESS CARBON.
720250	FERROSILICON CHROMIUM.
720260	FERRONICKEL.
720270	FERROMOLYBDENUM.
720280	FERROTUNGSTEN AND FERROSILICON TUNGSTEN.
720291	FERROTITANIUM AND FERROSILICON TITANIUM.

* * * * * * *
720293	FERRONIOBIUM.
720299	FERROALLOYS, NESOI.
720310	FERROUS PRODUCTS OBTAINED BY DIRECT REDUCTION OF IRON ORE.
720390	SPONGY FERROUS PRODUCTS NESOI, IN LUMPS, PELLETS OR SIMILAR FORMS; IRON WITH MINIMUM PURITY OF 99.94% (WT.), IN LUMPS, PELLETS OR SIMILAR FORMS.
720410	CAST IRON WASTE AND SCRAP.
720421	STAINLESS STEEL WASTE AND SCRAP.
720429	ALLOY STEEL WASTE AND SCRAP, OTHER THAN STAINLESS.
720430	TINNED IRON OR STEEL WASTE AND SCRAP.
720441	FERROUS WASTE AND SCRAP NESOI, TURNINGS, SHAVINGS, CHIPS, MILLING WASTE, SAWDUST, FILINGS, TRIMMINGS AND STAMPINGS, WHETHER OR NOT IN BUNDLES.
720449	FERROUS WASTE AND SCRAP, NESOI.
720450	REMELTING SCRAP INGOTS OF IRON OR STEEL.
720510	IRON OR STEEL GRANULES.
720521	ALLOY STEEL POWDERS.
720529	IRON OR NONALLOY STEEL POWDERS.
720610	IRON AND NONALLOY STEEL INGOTS.
720690	IRON AND NONALLOY STEEL IN PRIMARY FORMS, OTHER THAN INGOTS.

* * * * * * *
721410	BARS AND RODS OF IRON OR NONALLOY STEEL, FORGED.
721420	BARS AND RODS OF IRON OR NONALLOY STEEL, HOT-WORKED NESOI, CONCRETE REINFORCING.
721430	BARS AND RODS OF FREE-CUTTING NONALLOY STEEL, HOT-WORKED NESOI.
721491	BARS AND RODS OF IRON OR NONALLOY STEEL, NOT FURTHER WORKED THAN HOT-ROLLED, HOT-DRAWN OR HOT-EXTRUDED BUT INCL TWISTED, RECTANGULAR CROSS SECTN, NESOI.
721499	BARS AND RODS OF IRON OR NONALLOY STEEL, NOT FURTHER WORKED THAN HOT-ROLLED, HOT-DRAWN OR HOT-EXTRUDED, BUT INCLUDING TWISTED AFTER ROLLING, N.E.S.O.I.
721510	BARS AND RODS OF FREE-CUTTING NONALLOY STEEL, COLD-FORMED OR COLD-FINISHED.

* * * * * * *
721590	BARS AND RODS OF IRON OR NONALLOY STEEL, NESOI.

* * * * * * *
721710	WIRE OF IRON OR NONALLLOY STEEL, NOT PLATED OR COATED, WHETHER OR NOT POLISHED.
721720	WIRE OF IRON OR NONALLOY STEEL, PLATED OR COATED WITH ZINC.
721730	WIRE OF IRON OR NONALLOY STEEL, PLATED OR COATED WITH BASE METAL OTHER THAN ZINC.
721790	WIRE OF IRON OR NONALLOY STEEL LESS THAN 0.25 PERCENT CARBON, NESOI.

* * * * * * *
722100	BARS AND RODS OF STAINLESS STEEL, HOT-ROLLED, IN IRREGULARLY WOUND COILS.
722211	OTHER BARS AND RODS OF STAINLESS STEEL, HOT-ROLLED, CIRCULAR CROSS-SECTION.
722219	OTHER BARS AND RODS OF STAINLESS STEEL, HOT-ROLLED, OTHER THAN CIRCULAR CROSS-SECTION.
722220	BARS AND RODS OF STAINLESS STEEL, COLD-FORMED OR COLD-FINISHED.

* * * * * * *
722240	ANGLES, SHAPES AND SECTIONS OF STAINLESS STEEL.
722300	WIRE OF STAINLESS STEEL.

* * * * * * *
722710	BARS AND RODS OF HIGH-SPEED STEEL, HOT-ROLLED, IN IRREGULARLY WOUND COILS.
722720	BARS AND RODS OF SILICO-MANGANESE STEEL, HOT-ROLLED, IN IRREGULARLY WOUND COILS.
722790	BARS AND RODS OF ALLOY STEEL (OTHER THAN STAINLESS), HOT-ROLLED, IN IRREGULARLY WOUND COILS, NESOI.

* * * * * * *
722920	WIRE OF SILICO-MANGANESE STEEL.

* * * * * * *
730110	SHEET PILING OF IRON OR STEEL, WHETHER OR NOT DRILLED, PUNCHED OR MADE FROM ASSEMBLED ELEMENTS.

* * * * * * *
730210	RAILWAY OR TRAMWAY RAILS OF IRON OR STEEL.
Start Printed Page 51670
730230	RAILWAY OR TRAMWAY TRACK SWITCH BLADES, CROSSING FROGS, POINT RODS AND OTHER CROSSING PIECES OF IRON OR STEEL.
730240	RAILWAY OR TRAMWAY TRACK FISH-PLATES AND SOLE PLATES OF IRON OR STEEL.
730290	RAILWAY OR TRAMWAY TRACK CONSTRUCTION MATERIAL OF IRON OR STEEL NESOI.
730300	TUBES, PIPES AND HOLLOW PROFILES OF CAST IRON.

* * * * * * *
730431	TUBES, PIPES AND HOLLOW PROFILES, SEAMLESS NESOI, OF CIRCULAR CROSS SECTION OF IRON OR NONALLOY STEEL, COLD-DRAWN OR COLD-ROLLED.
730439	TUBES, PIPES AND HOLLOW PROFILES, SEAMLESS NESOI, OF CIRCULAR CROSS SECTION OF IRON OR NONALLOY STEEL, NOT COLD-DRAWN OR COLD-ROLLED.
730441	TUBES, PIPES AND HOLLOW PROFILES, SEAMLESS NESOI, OF CIRCULAR CROSS SECTION OF STAINLESS STEEL, COLD-DRAWN OR COLD-ROLLED.
730449	TUBES, PIPES AND HOLLOW PROFILES, SEAMLESS NESOI, OF CIRCULAR CROSS SECTION OF STAINLESS STEEL, NOT COLD-DRAWN OR COLD-ROLLED.
730451	TUBES, PIPES AND HOLLOW PROFILES, SEAMLESS NESOI, OF CIRCULAR CROSS SECTION OF ALLOY STEEL (OTHER THAN STAINLESS), COLD-DRAWN OR COLD-ROLLED.
730459	TUBES, PIPES AND HOLLOW PROFILES, SEAMLESS NESOI, OF CIRCULAR CROSS SECTION OF ALLOY STEEL (OTHER THAN STAINLESS), NOT COLD-DRAWN OR COLD-ROLLED.
730490	TUBES, PIPES AND HOLLOW PROFILES, SEAMLESS NESOI, OF IRON (OTHER THAN CAST IRON) OR STEEL.
730531	PIPES AND TUBES NESOI, EXTERNAL DIAMETER OVER 406.4 MM (16 IN.), OF IRON OR STEEL, LONGITUDINALLY WELDED.

* * * * * * *
730590	PIPES AND TUBES NESOI, EXTERNAL DIAMETER OVER 406.4 MM (16 IN.), OF IRON OR STEEL, RIVETED OR SIMILARLY CLOSED NESOI.
730621	CASING OR TUBING FOR OIL OR GAS DRILLING, WELDED OF STAINLESS STEEL, NESOI.
730629	CASING OR TUBING FOR OIL OR GAS DRILLING, OF IRON OR STEEL, NESOI.
730630	PIPES, TUBES AND HOLLOW PROFILES NESOI, WELDED, OF CIRCULAR CROSS SECTION, OF IRON OR NONALLOY STEEL.
730640	PIPES, TUBES AND HOLLOW PROFILES NESOI, WELDED, OF CIRCULAR CROSS SECTION, OF STAINLESS STEEL.

* * * * * * *
730661	TUBES, PIPES AND HOLLOW PROFILES, OF IRON OR STEEL, WELDED, OF A SQUARE OR RECTANGULAR CROSS-SECTION, NESOI.
730669	TUBES, PIPES AND HOLLOW PROFILES, OF IRON OR STEEL, WELDED, OF NON-CIRCULAR CROSS-SECTION, NESOI.
730690	PIPES, TUBES AND HOLLOW PROFILES NESOI, OF IRON OR STEEL, RIVETED OR SIMILARLY CLOSED.
730711	PIPE OR TUBE FITTINGS, CAST, OF NONMALLEABLE IRON.
730719	PIPE OR TUBE FITTINGS, CAST, OF IRON NESOI OR STEEL.
730721	PIPE OR TUBE FITTINGS, NESOI, STAINLESS STEEL FLANGES.

* * * * * * *
730723	PIPE OR TUBE FITTINGS, NESOI, STAINLESS STEEL BUTT WELDING FITTINGS.
730729	PIPE OR TUBE FITTINGS, NESOI, STAINLESS STEEL FITTINGS NESOI.
730791	PIPE OR TUBE FITTINGS, NESOI, IRON OR NONSTAINLESS STEEL FLANGES.
730792	PIPE OR TUBE FITTINGS, NESOI, IRON OR NONSTAINLESS STEEL THREADED ELBOWS, BENDS AND SLEEVES.
730793	PIPE OR TUBE FITTINGS, NESOI, IRON OR NONSTAINLESS STEEL BUTT WELDING FITTINGS.
730799	PIPE OR TUBE FITTINGS, NESOI, IRON OR NONSTAINLESS STEEL FITTINGS NESOI.

* * * * * * *
731210	STRANDED WIRE, ROPES AND CABLES, NOT ELECTRICALLY INSULATED, OF IRON OR STEEL.
731290	PLAITED BANDS, SLINGS AND THE LIKE (OTHER THAN STRANDED WIRE, ROPES OR CABLES), NOT ELECTRICALLY INSULATED, OF IRON OR STEEL.
731300	BARBED WIRE, TWISTED HOOP OR SINGLE FLAT WIRE, BARBED OR NOT, AND LOOSELY TWISTED DOUBLE WIRE, OF A KIND USED FOR FENCING, OF IRON OR STEEL.

* * * * * * *
731414	OTHER PRODUCTS OF WOVEN STAINLESS STEEL CLOTH.
731419	WOVEN PRODUCTS OF IRON OR STEEL, NESOI.
731420	GRILL, NETTING AND FENCING OF IRON OR STEEL WIRE, WELDED AT THE INTERSECTION, MAXIMUM CROSS-SECTION OF 3 MM OR MORE AND MESH SIZE OF 100 CM2 OR MORE.
731431	OTHER GRILL, NETTING AND FENCING WELDED AT THE INTERSECTION OF GALVANIZED STEEL.
731439	OTHER GRILL, NETTING AND FENCING WELDED AT THE INTERSECTION OF IRON OR STEEL OTHER THAN GALVANIZED STEEL.
731441	GRILL, NETTING AND FENCING OF IRON OR STEEL WIRE NESOI, PLATED OR COATED WITH ZINC.
731442	GRILL, NETTING AND FENCING OF IRON OR STEEL WIRE NESOI, COATED WITH PLASTICS.
731449	GRILL, NETTING AND FENCING OF IRON OR STEEL WIRE NESOI.
731450	EXPANDED METAL OF IRON OR STEEL.
731511	ROLLER CHAIN OF IRON OR STEEL.
731512	ARTICULATED LINK CHAIN OTHER THAN ROLLER CHAIN, OF IRON OR STEEL.
731519	PARTS OF ARTICULATED LINK CHAIN OF IRON OR STEEL.
731520	SKID CHAIN OF IRON OR STEEL.
731581	STUD LINK CHAIN OF IRON OR STEEL.
Start Printed Page 51671
731582	CHAIN NESOI, WELDED LINK OF IRON OR STEEL.
731589	CHAIN OF IRON OR STEEL, NESOI.
731590	PARTS OF CHAIN NESOI, OF IRON OR STEEL.
731600	ANCHORS, GRAPNELS AND PARTS THEREOF, OF IRON OR STEEL.
731700	NAILS, TACKS, DRAWING PINS, STAPLES (OTHER THAN IN STRIPS), AND SIMILAR ARTICLES, OF IRON OR STEEL, EXCLUDING SUCH ARTICLES WITH HEADS OF COPPER.
731811	COACH SCREWS, THREADED, OF IRON OR STEEL.
731812	WOOD SCREWS OTHER THAN COACH SCREWS, THREADED, OF IRON OR STEEL.
731813	SCREW HOOKS AND SCREW RINGS, THREADED, OF IRON OR STEEL.
731814	SELF-TAPPING SCREWS, THREADED, OF IRON OR STEEL.
731815	THREADED SCREWS AND BOLTS NESOI, WITH OR WITHOUT THEIR NUTS OR WASHERS, OF IRON OR STEEL.
731816	NUTS, THREADED, OF IRON OR STEEL.
731819	THREADED ARTICLES OF IRON OR STEEL NESOI.
731821	SPRING WASHERS AND OTHER LOCK WASHERS, OF IRON OR STEEL.
731822	WASHERS, OTHER THAN LOCK WASHERS, OF IRON OR STEEL.
731823	RIVETS OF IRON OR STEEL.

* * * * * * *
731829	NONTHREADED ARTICLES (FASTENERS) NESOI, OF IRON OR STEEL.
731940	SAFETY PINS AND OTHER PINS OF IRON OR STEEL.
731990	KNITTING NEEDLES, BODKINS, CROCHET HOOKS, EMBROIDERY STILETTOS AND SIMILAR ARTICLES FOR USE IN THE HAND, OF IRON OR STEEL, NESOI.
732010	LEAF SPRINGS AND LEAVES THEREFOR, OF IRON OR STEEL.

* * * * * * *
732090	SPRINGS NESOI, OF IRON OR STEEL.
732111	COOKING APPLIANCES AND PLATE WARMERS, FOR GAS FUEL OR FOR BOTH GAS AND OTHER FUELS, OF IRON OR STEEL.
732112	COOKING APPLIANCES AND PLATE WARMERS FOR LIQUID FUEL, OF IRON OR STEEL.
732119	COOKING APPLIANCES AND PLATE WARMERS, NONELECTRIC, OF IRON OR STEEL, NESOI.
732181	NONELECTRIC DOMESTIC APPLIANCES NESOI, FOR GAS FUEL OR BOTH GAS AND OTHER FUELS, OF IRON OR STEEL.
732182	NONELECTRIC DOMESTIC APPLIANCES NESOI, FOR LIQUID FUEL, OF IRON OR STEEL.
732189	NONELECTRIC DOMESTIC APPLIANCES, OF IRON OR STEEL, NESOI.
732190	PARTS OF NONELECTRIC DOMESTIC COOKING APPLIANCES AND PLATE WARMERS AND SIMILAR NONELECTRIC DOMESTIC APPLIANCES, OF IRON OR STEEL.
732211	RADIATORS FOR CENTRAL HEATING AND PARTS THEREOF, OF CAST IRON.
732219	RADIATORS FOR CENTRAL HEATING AND PARTS THEREOF, OF IRON OR STEEL, EXCEPT CAST IRON.

* * * * * * *
732310	IRON OR STEEL WOOL; POT SCOURERS AND SCOURING OR POLISHING PADS, GLOVES AND THE LIKE, OF IRON OR STEEL.
732391	TABLE, KITCHEN OR OTHER HOUSEHOLD ARTICLES AND PARTS THEREOF, OF CAST IRON, NOT ENAMELED.
732392	TABLE, KITCHEN OR OTHER HOUSEHOLD ARTICLES AND PARTS THEREOF, OF CAST IRON, ENAMELED.
732393	TABLE, KITCHEN OR OTHER HOUSEHOLD ARTICLES AND PARTS THEREOF, OF STAINLESS STEEL.
732394	TABLE, KITCHEN OR OTHER HOUSEHOLD ARTICLES AND PARTS THEREOF, OF IRON (NOT CAST) AND STEEL (NOT STAINLESS), ENAMELED.
732399	TABLE, KITCHEN OR OTHER HOUSEHOLD ARTICLES AND PARTS THEREOF, OF IRON (NOT CAST) AND STEEL (NOT STAINLESS), NOT ENAMELED.
732410	SINKS AND WASH BASINS OF STAINLESS STEEL.
732421	BATHS OF CAST IRON, WHETHER OR NOT ENAMELED.

* * * * * * *
732490	SANITARY WARE AND PARTS THEREOF NESOI, OF IRON OR STEEL (OTHER THAN STAINLESS STEEL SINKS OR WASH BASINS AND BATHS OF IRON OR STEEL).
732510	ARTICLES NESOI, OF NONMALLEABLE CAST IRON.
732591	GRINDING BALLS AND SIMILAR ARTICLES FOR MILLS, CAST, OF IRON OR STEEL, OTHER THAN NONMALLEABLE CAST IRON.
732599	CAST ARTICLES NESOI, OF IRON OR STEEL.
732611	GRINDING BALLS AND SIMILAR ARTICLES FOR MILLS, FORGED OR STAMPED, BUT NOT FURTHER WORKED, OF IRON OR STEEL.
732619	ARTICLES NESOI, FORGED OR STAMPED, BUT NOT FURTHER WORKED, OF IRON OR STEEL.
732620	ARTICLES OF IRON OR STEEL WIRE, NESOI.
740100	COPPER MATTES; CEMENT COPPER (PRECIPITATED COPPER).
740200	UNREFINED COPPER; COPPER ANODES FOR ELECTROLYTIC REFINING.
740311	REFINED COPPER CATHODES AND SECTIONS OF CATHODES.
740312	REFINED COPPER WIRE BARS, UNWROUGHT.
740313	REFINED COPPER BILLETS, UNWROUGHT.
740319	REFINED COPPER, UNWROUGHT, NESOI.
740321	COPPER-ZINC BASE ALLOYS (BRASS), UNWROUGHT.
740322	COPPER-TIN BASE ALLOYS (BRONZE), UNWROUGHT.
740329	COPPER ALLOYS, UNWROUGHT, NESOI.
740400	COPPER WASTE AND SCRAP.
740500	MASTER ALLOYS OF COPPER.
Start Printed Page 51672
740610	COPPER POWDERS OF NON-LAMELLAR STRUCTURE.
740620	COPPER POWDERS OF LAMELLAR STRUCTURE; FLAKES.

* * * * * * *
741011	COPPER FOIL, NOT BACKED, OF REFINED COPPER, NOT OVER 0.15 MM THICK.
741012	COPPER ALLOY FOIL, NOT BACKED, NOT OVER 0.15 MM THICK.
741021	COPPER FOIL, BACKED, OF REFINED COPPER, NOT OVER 0.15 MM THICK.
741022	COPPER FOIL, BACKED, OF COPPER ALLOYS, NOT OVER 0.15 MM THICK.
741110	TUBES AND PIPES OF REFINED COPPER.
741121	TUBES AND PIPES OF COPPER-ZINC BASE ALLOYS (BRASS).
741122	TUBES AND PIPES OF COPPER-NICKEL BASE ALLOYS (CUPRO-NICKEL) OR COPPER-NICKEL-ZINC BASE ALLOYS (NICKEL-SILVER).

* * * * * * *
741210	TUBE OR PIPE FITTINGS OF REFINED COPPER.
741220	TUBE OR PIPE FITTINGS OF COPPER ALLOYS.
741300	STRANDED WIRE, CABLES, PLAITED BANDS AND SIMILAR ARTICLES, OF COPPER, NOT ELECTRICALLY INSULATED.
741510	NAILS, TACKS, DRAWING PINS, STAPLES (OTHER THAN IN STRIPS) AND SIMILAR ARTICLES OF COPPER OR OF IRON OR STEEL WITH HEADS OF COPPER.

* * * * * * *
741529	RIVETS, COTTERS, COTTER PINS AND SIMILAR ARTICLES OF COPPER (NOT THREADED), NESOI.
741533	THREADED SCREWS, BOLTS, AND NUTS OF COPPER OR IRON OR STEEL WITH HEADS OF COPPER.
741539	THREADED FASTENERS NESOI, OF COPPER.
741810	COPPER TABLE, KITCHEN OR OTHER HOUSEHOLD ARTICLES AND PARTS THEREOF; POT SCOURERS OR POLISHING PADS, GLOVES AND THE LIKE, OF COPPER.
741820	SANITARY WARE AND PARTS THEREOF, OF COPPER.
741920	ARTICLES OF COPPER, NESOI, CAST, MOLDED, STAMPED OR FORGED, BUT NOT FURTHER WORKED.
741980	ARTICLES OF COPPER, NESOI.
750110	NICKEL MATTES.
750120	NICKEL OXIDE SINTERS AND OTHER INTERMEDIATE PRODUCTS OF NICKEL METALLURGY.
750210	NICKEL, NOT ALLOYED, UNWROUGHT.
750220	NICKLE ALLOYS, UNWROUGHT.
750300	NICKEL WASTE AND SCRAP.
750400	NICKLE POWDERS AND FLAKES.

* * * * * * *
760110	ALUMINUM, NOT ALLOYED, UNWROUGHT.
760120	ALUMINUM ALLOYS, UNWROUGHT.
760200	ALUMINUM WASTE AND SCRAP.
760310	ALUMINUM POWDERS OF NONLAMELLAR STRUCTURE.
760320	ALUMINUM POWDERS OF LAMELLAR STRUCTURE; FLAKES.
760410	ALUMINUM BARS, RODS AND PROFILES, NOT ALLOYED.
760421	ALUMINUM ALLOY HOLLOW PROFILES.
760429	ALUMINUM ALLOY BARS, RODS AND PROFILES, OTHER THAN HOLLOW PROFILES.

* * * * * * *
760611	ALUMINUM NONALLOYED RECTANGULAR (INCLUDING SQUARE) PLATES, SHEETS AND STRIP, OVER 0.2 MM THICK.
760612	ALUMINUM ALLOY RECTANGULAR (INCLUDING SQUARE) PLATES, SHEETS AND STRIP, OVER 0.2 MM THICK.
760691	ALUMINUM NONALLOYED PLATES, SHEETS OR STRIP, OVER 0.2 MM THICK, NESOI (OTHER THAN RECTANGULAR OR SQUARE SHAPES).

* * * * * * *
760711	ALUMINUM FOIL, NOT OVER 0.2 MM THICK, NOT BACKED, ROLLED BUT NOT FURTHER WORKED.
760719	ALUMINUM FOIL, NOT OVER 0.2 MM THICK, NOT BACKED, NESOI.

* * * * * * *
760810	ALUMINUM TUBES AND PIPES, NOT ALLOYED.
760820	ALUMINUM ALLOY TUBES AND PIPES.
760900	ALUMINUM TUBE OR PIPE FITTINGS (INCLUDING COUPLINGS, ELBOWS, AND SLEEVES).

* * * * * * *
761410	STRANDED WIRE, CABLES, PLAITED BANDS AND SIMILAR ARTICLES OF ALUMINUM, NOT ELECTRICALLY INSULATED, WITH A STEEL CORE.
761490	STRANDED WIRE, CABLES, PLAITED BANDS AND SIMILAR ARTICLES OF ALUMINUM, NOT ELECTRICALLY INSULATED, NESOI.
761510	ALUMINUM TABLE, KITCHEN OR OTHER HOUSEHOLD ARTICLES AND PARTS THEREOF; POT SCOURERS, SCOURING OR POLISHING PADS, GLOVES AND THE LIKE, OF ALUMINUM ETC.
761520	ALUMINUM SANITARY WARE AND PARTS THEREOF.

* * * * * * *
761691	CLOTH, GRILL, NETTING AND FENCING OF ALUMINUM WIRE.
Start Printed Page 51673
761699	ARTICLES OF ALUMINUM, N.E.S.O.I.
780110	REFINED LEAD, UNWROUGHT.
780191	LEAD, OTHER THAN REFINED, CONTAINING ANTIMONY BY WEIGHT AS THE PRINCIPAL OTHER ELEMENT, UNWROUGHT.
780199	LEAD, OTHER THAN REFINED, NESOI, UNWROUGHT.
780200	LEAD WASTE AND SCRAP.

* * * * * * *
780600	ARTICLES OF LEAD, NESOI.
790111	ZINC, NOT ALLOYED, CONTAINING 99.9% OR MORE BY WEIGHT OF ZINC, UNWROUGHT.
790112	ZINC, NOT ALLOYED, CONTAINING UNDER 99.99% ZINC BY WEIGHT. UNWROUGHT.
790120	ZINC ALLOYS, UNWROUGHT.
790200	ZINC WASTE AND SCRAP.
790310	ZINC DUST.
790390	ZINC POWDERS AND FLAKES.
790400	ZINC BARS, RODS, PROFILES AND WIRE.

* * * * * * *
790700	ARTICLES OF ZINC, N.E.S.O.I.

* * * * * * *
800200	TIN WASTE AND SCRAP.

* * * * * * *
810194	TUNGSTEN, UNWROUGHT, INCLUDING BARS AND RODS OBTAINED SIMPLY BY SINTERING.
810196	TUNGSTEN WIRE.
810197	TUNGSTEN WASTE AND SCRAP.
810199	TUNGSTEN, WROUGHT, NESOI.

* * * * * * *
810320	UNWROUGHT TANTALUM, INCLUDING BARS AND RODS OBTAINED SIMPLY BY SINTERING; POWDERS.
810330	TANTALUM WASTE AND SCRAP.
810391	TANTALUM AND ARTICLES THEREOF, NESOI.
810399	TANTALUM AND ARTICLES THEREOF, NESOI.
810411	MAGNESIUM, CONTAINING 99.8% OR MORE MAGNESIUM BY WEIGHT, UNWROUGHT.
810419	MAGNESIUM, CONTAINING UNDER 99.8% MAGNESIUM BY WEIGHT, UNWROUGHT.
810420	MAGNESIUM WASTE AND SCRAP.
810430	MAGNESIUM RASPINGS, TURNINGS AND GRANULES, GRADED ACCORDING TO SIZE; MAGNESIUM POWDERS.
810490	MAGNESIUM AND ARTICLES THEREOF, NESOI.
810520	COBALT MATTES AND OTHER INTERMEDIATE PRODUCTS OF COBALT METALLURGY; COBALT, UNWROUGHT; COBALT POWDERS.
810530	COBALT WASTE AND SCRAP.

* * * * * * *
810610	BISMUTH AND ARTICLES THEREOF, INCLUDING WASTE AND SCRAP.
810690	BISMUTH AND ARTICLES THEREOF, INCLUDING WASTE AND SCRAP.
810820	UNWROUGHT TITANIUM; POWDERS.
810830	TITANIUM WASTE AND SCRAP.
810890	TITANIUM AND ARTICLES THEREOF, NESOI.

* * * * * * *
811010	UNWROUGHT ANTIMONY; POWDERS.
811020	ANTIMONY WASTE AND SCRAP.
811090	ANTIMONY AND ARTICLES THEREOF, NESOI.
811100	MANGANESE AND ARTICLES THEREOF, INCLUDING WASTE AND SCRAP.
811212	UNWROUGHT BERYLLIUM; BERYLLIUM POWDERS, NESOI.
811213	BERYLLIUM WASTE AND SCRAP.
811219	BERYLLIUM AND ARTICLES THEREOF, NESOI.
811221	UNWROUGHT CHROMIUM; POWDERS.
811222	CHROMIUM WASTE AND SCRAP.
811229	CHROMIUM AND ARTICLES THEREOF, NESOI.
811231	GALLIUM, HAFNIUM, INDIUM, NIOBIUM (COLUMBIUM), RHENIUM & ARTICLES OF THESE METALS, INCLUDING WASTE & SCRAP.
811239	GALLIUM, HAFNIUM, INDIUM, NIOBIUM (COLUMBIUM), RHENIUM AND THALLIUM AND ARTICLES THEREOF, NESOI.

* * * * * * *
811251	UNWROUGHT THALLIUM; POWDERS.
811252	THALLIUM WASTE AND SCRAP.
811259	THALLIUM AND ARTICLES THEREOF, NESOI.
811261	UNWROUGHT CADMIUM; WASTE AND SCRAP.
811269	UNWROUGHT CADMIUM; POWDERS.
811292	GALLIUM, HAFNIUM, INDIUM, NIOBIUM (COLUMBIUM), RHENIUM & ARTICLES OF THESE METALS, INCLUDING WASTE & SCRAP.
811299	GALLIUM, HAFNIUM, INDIUM, NIOBIUM (COLUMBIUM), RHENIUM AND THALLIUM AND ARTICLES THEREOF, NESOI.
Start Printed Page 51674
811300	CERMETS AND ARTICLES THEREOF, INCLUDING WASTE AND SCRAP.
820110	SPADES AND SHOVELS AND PARTS THEREOF, OF BASE METAL.
820130	MATTOCKS, PICKS, HOES AND RAKES, AND PARTS THEREOF OF BASE METAL.
820140	AXES, BILL HOOKS AND SIMILAR HEWING TOOLS, AND PARTS THEREOF, OF BASE METAL.
820150	ONE-HANDED SECATEURS AND SIMILAR ONE-HANDED PRUNERS AND SHEARS (INCLUDING POULTRY SHEARS), AND PARTS THEREOF, OF BASE METAL.
820160	HEDGE SHEARS, TWO-HANDED PRUNING SHEARS AND SIMILAR TWO-HANDED SHEARS, AND PARTS THEREOF, OF BASE METAL.
820190	HANDTOOLS NESOI, OF A KIND USED IN AGRICULTURE, HORTICULTURE OR FORESTRY, AND PARTS THEREOF, OF BASE METAL.
820210	HANDSAWS AND PARTS THEREOF (EXCEPT BLADES) OF BASE METAL.

* * * * * * *
820231	CIRCULAR SAW BLADES OF BASE METAL, WITH WORKING PART OF STEEL, AND PARTS THEREOF.
820239	CIRCULAR SAW BLADES OF BASE METAL WITH WORKING PART OF MATERIAL OTHER THAN STEEL, AND PARTS.
820240	CHAIN SAW BLADES (LENGTHS OR CUT TO SIZE), AND PARTS THEREOF, OF BASE METAL.
820291	STRAIGHT SAW BLADES FOR WORKING METAL, OF BASE METAL.
820299	SAW BLADES NESOI, AND PARTS OF SAW BLADES NESOI, OF BASE METAL.
820310	FILES, RASPS AND SIMILAR TOOLS, OF BASE METAL.
820320	PLIERS (INCLUDING CUTTING PLIERS), PINCERS, TWEEZERS, AND SIMILAR TOOLS, AND PARTS THEREOF, OF BASE METAL.
820330	METAL CUTTING SHEARS AND SIMILAR TOOLS, AND PARTS THEREOF, OF BASE METAL.
820340	PIPE CUTTERS, BOLT CUTTERS, PERFORATING PUNCHES AND SIMILAR TOOLS, AND PARTS THEREOF, OF BASE METAL.

* * * * * * *
820412	SPANNERS AND WRENCHES, HAND-OPERATED, ADJUSTABLE, AND PARTS THEREOF, OF BASE METAL.
820420	SOCKET WRENCHES WITH OR WITHOUT HANDLES, DRIVES AND EXTENSIONS, AND PARTS THEREOF, OF BASE METAL.
820510	DRILLING, THREADING OR TAPPING TOOLS, AND PARTS THEREOF, OF BASE METAL.
820520	HAMMERS AND SLEDGE HAMMERS AND PARTS THEREOF, OF BASE METAL.
820530	PLANES, CHISELS, GOUGES AND SIMILAR CUTTING TOOLS FOR WOOD WORKING, AND PARTS THEREOF, OF BASE METAL.
820540	SCREWDRIVERS, AND PARTS THEREOF, OF BASE METAL.
820551	HOUSEHOLD HANDTOOLS NESOI, AND PARTS THEREOF, OF BASE METAL.

* * * * * * *
820560	BLOW TORCHES AND SIMILAR SELF-CONTAINED TORCHES, AND PARTS THEREOF, OF BASE METAL.
820570	VISES, CLAMPS AND THE LIKE, AND PARTS THEREOF, OF BASE METAL.
820590	HANDTOOLS, INCLUDING SETS OF ARTICLES OF TWO OR MORE SUBHEADINGS OF 8205, NESOI.
820600	TOOLS OF TWO OR MORE OF THE HEADINGS 8202 TO 8205 (SAWS, FILES, PLIERS, WRENCHES ETC. AND HANDTOOLS ETC. NESOI) PUT UP IN SETS FOR RETAIL SALE.
820720	DIES FOR DRAWING OR EXTRUDING METAL, AND PARTS THEREOF, OF BASE METAL.
820730	TOOLS FOR PRESSING, STAMPING OR PUNCHING, AND PARTS THEREOF, OF BASE METAL.
820740	TOOLS FOR TAPPING OR THREADING, AND PARTS THEREOF, OF BASE METAL.
820750	TOOLS FOR DRILLING, OTHER THAN ROCK DRILLING, AND PARTS THEREOF, OF BASE METAL.

* * * * * * *
820770	TOOLS FOR MILLING, AND PARTS THEREOF, OF BASE METAL.
820780	TOOLS FOR TURNING, OF BASE METAL.

* * * * * * *
820900	PLATES, STICKS, TIPS AND THE LIKE FOR TOOLS, UNMOUNTED, OF CERMETS.
821000	HAND-OPERATED MECHANICAL APPLIANCES, WEIGHING NOT OVER 10 KG, FOR PREPARING, CONDITIONING OR SERVING FOOD OR DRINK, AND BASE METAL PARTS THEREOF.
821110	SETS OF ASSORTED KNIVES AND BLADES, OTHER THAN KNIVES FOR MACHINES OR MECHANICAL APPLIANCES AND BLADES THEREFOR OF HEADING 8208.
821191	TABLE KNIVES HAVING FIXED BLADES, AND PARTS THEREOF, OF BASE METAL.
821192	KNIVES, OTHER THAN TABLE KNIVES, HAVING FIXED BLADES, AND PARTS THEREOF, OF BASE METAL.
821193	KNIVES HAVING OTHER THAN FIXED BLADES, AND PARTS THEREOF (EXCEPT BLADES), OF BASE METAL.
821194	BLADES FOR KNIVES, NESOI.
821195	HANDLES OF BASE METAL FOR KNIVES WITH CUTTING BLADES, OTHER THAN THOSE OF 8208.
821210	RAZORS.
821220	SAFETY RAZOR BLADES, INCLUDING BLADE BLANKS IN STRIPS.
821290	PARTS FOR RAZORS NESOI, OF BASE METAL.
821300	SCISSORS, TAILORS' SHEARS AND SIMILAR SHEARS, AND BLADES AND OTHER BASE METAL PARTS THEREOF.
821410	PAPER KNIVES, LETTER OPENERS, ERASING KNIVES, PENCIL SHARPENERS (NONMECHANICAL), BLADES, AND PARTS THEREOF, OF BASE METAL.
821420	MANICURE OR PEDICURE SETS AND INSTRUMENTS (INCLUDING NAIL FILES) AND BASE METAL PARTS THEREOF.
821490	ARTICLES OF CUTLERY NESOI, AND PARTS THEREOF, OF BASE METAL.
821510	SETS OF ASSORTED KITCHENWARE OR TABLEWARE OF BASE METAL, CONTAINING AT LEAST ONE ARTICLE PLATED WITH PRECIOUS METAL.
821520	SETS OF ASSORTED KITCHENWARE OR TABLEWARE OF BASE METAL, CONTAINING NO ARTICLES PLATED WITH PRECIOUS METAL.
Start Printed Page 51675
821591	SPOONS, FORKS, LADLES, CAKE-SERVERS, SUGAR TONGS AND LIKE KITCHEN OR TABLEWARE OF BASE METAL (NO SETS), AND PARTS THEREOF, PLATED WITH PRECIOUS METAL.
821599	SPOONS, FORKS, LADLES, CAKE-SERVERS, SUGAR TONGS AND LIKE KITCHEN OR TABLEWARE OF UNPLATED BASE METAL (NO SETS), AND PARTS THEREOF, NESOI.
830110	PADLOCKS OF BASE METAL.

* * * * * * *
830130	LOCKS OF A KIND USED FOR FURNITURE, OF BASE METAL.
830140	LOCKS (KEY, COMBINATION OR ELECTRICALLY OPERATED), EXCEPT FOR MOTOR VEHICLES OR FURNITURE, OF BASE METAL.
830150	CLASPS AND FRAMES WITH CLASPS, INCORPORATING LOCKS, OF BASE METAL.
830160	PARTS OF LOCKS, OF BASE METAL.

* * * * * * *
830210	HINGES, AND PARTS THEREOF, OF BASE METAL.
830220	CASTORS, AND PARTS THEREOF, OF BASE METAL.

* * * * * * *
830241	MOUNTINGS, FITTINGS AND SIMILAR ARTICLES NESOI (EXCEPT HINGES AND CASTORS), AND PARTS THEREOF, SUITABLE FOR BUILDINGS, OF BASE METAL.
830242	MOUNTINGS, FITTINGS AND SIMILAR ARTICLES NESOI (EXCEPT HINGES AND CASTORS), AND PARTS THEREOF, SUITABLE FOR FURNITURE, OF BASE METAL.
830249	MOUNTINGS, FITTINGS AND SIMILAR ARTICLES, AND PARTS THEREOF, NESOI, OF BASE METAL.
830250	HAT-RACKS, HAT PEGS, BRACKETS AND SIMILAR FIXTURES, AND PARTS THEREOF, OF BASE METAL.
830260	AUTOMATIC DOOR CLOSURES, AND PARTS THEREOF, OF BASE METAL.
830300	ARMORED OR REINFORCED SAFES, STRONG-BOXES, DOORS AND SAFE DEPOSIT LOCKERS FOR STRONG-ROOMS, CASH OR DEED BOXES ETC., AND PARTS THEREOF, OF BASE METAL.
830400	DESK-TOP FILING OR CARD-INDEX CABINETS, PAPER TRAYS, PAPER RESTS, PEN TRAYS AND SIMILAR DESK ETC. ITEMS (NO FURNITURE) AND THEIR PARTS, OF BASE METAL.
830510	FITTINGS FOR LOOSELEAF BINDERS OR FILES, OF BASE METAL.
830520	STAPLES IN STRIPS, OF BASE METAL.
830590	LETTER CLIPS, LETTER CORNERS, PAPER CLIPS, INDEXING TAGS AND SIMILAR OFFICE ARTICLES, AND PARTS THEREOF, OF BASE METAL.
830610	BELLS, GONGS AND THE LIKE, AND PARTS THEREOF, OF BASE METAL.
830630	PHOTOGRAPH, PICTURE OR SIMILAR FRAMES AND MIRRORS, AND PARTS THEREOF, OF BASE METAL.

* * * * * * *
830810	HOOKS, EYES AND EYELETS, OF BASE METAL.
830820	TUBULAR OR BIFURCATED RIVETS, OF BASE METAL.
830890	CLASPS, FRAMES WITH CLASPS, BUCKLES, BUCKLE CLASPS, AND PARTS THEREOF, NESOI, OF BASE METAL.

* * * * * * *
831000	SIGN PLATES, NAME PLATES, ADDRESS PLATES AND SIMILAR PLATES, NUMBERS, LETTERS AND OTHER SYMBOLS (NOT ILLUMINATED), AND PARTS THEREOF, OF BASE METAL.
831110	COATED ELECTRODES OF BASE METAL, FOR ELECTRIC ARC-WELDING.
831120	CORED WIRE OF BASE METAL, FOR ELECTRIC ARC-WELDING.
831130	COATED RODS AND CORED WIRE, OF BASE METAL, FOR SOLDERING, BRAZING OR WELDING BY FLAME.
831190	TUBES, PLATES ETC. OF BASE METAL OR METAL CARBIDES WITH FLUX MATERIAL FOR WELDING ETC.; WIRE AND RODS OF AGGLOMERATED BASE METAL POWDER; PARTS THEREOF.

* * * * * * *
860120	RAIL LOCOMOTIVES POWERED BY ELECTRIC ACCUMULATORS (BATTERIES).

* * * * * * *
860310	SELF-PROPELLED RAILWAY OR TRAMWAY COACHES, VANS AND TRUCKS (EXCEPT RAILWAY OR TRAMWAY MAINTENANCE OR SERVICE VEHICLES), POWERED EXTERNALLY, ELECTRIC.
860390	SELF-PROPELLED RAILWAY OR TRAMWAY COACHES, VANS AND TRUCKS (EXCEPT RAILWAY OR TRAMWAY MAINTENANCE OR SERVICE VEHICLES), NESOI.

* * * * * * *
860500	RAILWAY OR TRAMWAY PASSENGER COACHES, LUGGAGE VANS, POST OFFICE COACHES AND OTHER SPECIAL PURPOSE RAIL OR TRAMWAY COACHES, NOT SELF-PROPELLED, NESOI.

* * * * * * *
860711	TRUCK ASSEMBLIES FOR SELF-PROPELLED RAILWAY OR TRAMWAY LOCOMOTIVES OR ROLLING STOCK.
860712	TRUCK ASSEMBLIES, NESOI, FOR RAILWAY OR TRAMWAY ROLLING STOCK.
860719	TRUCK AXLES AND WHEELS AND PARTS THEREOF, INCLUDING PARTS OF TRUCK ASSEMBLIES, FOR RAILWAY OR TRAMWAY VEHICLES.
860721	AIRBRAKES AND PARTS THEREOF, FOR RAILWAY OR TRAMWAY VEHICLES.
860729	BRAKES (EXCEPT AIRBRAKES) AND PARTS THEREOF, FOR RAILWAY OR TRAMWAY VEHICLES.
860730	HOOKS AND OTHER COUPLING DEVICES, BUFFERS AND PARTS THEREOF, FOR RAILWAY OR TRAMWAY VEHICLES.
860791	PARTS OF RAILWAY OR TRAMWAY LOCOMOTIVES, NESOI.
860799	PARTS OF RAILWAY OR TRAMWAY VEHICLES, OTHER THAN LOCOMOTIVES, NESOI.
Start Printed Page 51676
860800	RAIL TRACK FIXTURES; MECHANICAL SIGNALING, SAFETY OR TRAFFIC CONTROL EQUIPMENT FOR RAIL, ROAD, WATERWAY, PARKING, AIRFIELD ETC. AREAS; PARTS THEREOF.
860900	CONTAINERS (INCLUDING CONTAINERS FOR THE TRANSPORT OF FLUIDS) SPECIALLY DESIGNED AND EQUIPPED FOR CARRIAGE BY ONE OR MORE MODES OF TRANSPORT.
870110	TRACTORS, PEDESTRIAN CONTROLLED TYPE (OTHER THAN TRACTORS OF THE TYPE USED ON RAILWAY STATION PLATFORMS).

* * * * * * *
870129	ROAD TRACTORS FOR SEMI-TRAILERS.

* * * * * * *
870191	TRACTORS (OTHER THAN TRACTORS OF HEADING 8709), NOT EXCEEDING 18KW.
870192	TRACTORS (OTHER THAN TRACTORS OF HEADING 8709), EXCEEDING 18 KW BUT NOT EXCEEDING 37 KW.
870193	TRACTORS (OTHER THAN TRACTORS OF HEADING 8709), EXCEEDING 37 KW BUT NOT EXCEEDING 75 KW.
870194	TRACTORS (OTHER THAN TRACTORS OF HEADING 8709), EXCEEDING 75 KW BUT NOT EXCEEDING 130 KW.
870195	TRACTORS (OTHER THAN TRACTORS OF HEADING 8709) EXCEEDING 130 KW.
870210	MOTOR VEHICLES FOR THE TRANSPORT OF TEN OR MORE PERSONS, WITH A COMPRESSION-IGNITION INTERNAL COMBUSTION PISTON ENGINE (DIESEL OR SEMI-DIESEL).
870220	MOTOR VEHICLES FOR TRANSPORT OF 10 OR MORE WITH BOTH COMPRESSION-IGNITION INTERNAL COMBUST PISTON ENG (DIESEL OR SEMI-DIESEL) AND ELECTRIC MOTOR.
870230	MOTOR VEHICLES FOR TRANSPORT OF 10 OR MORE WITH BOTH SPARK-IGNITION RECIPROCATING PISTON AND ELECTRIC MOTOR.
870240	MOTOR VEHICLES FOR TRANSPORT OF 10 OR MORE WITH ONLY ELECTRIC MOTOR FOR PROPULSION.
870290	MOTOR VEHICLES FOR THE TRANSPORT OF TEN OR MORE PERSONS, NESOI.

* * * * * * *
870790	BODIES (INCLUDING CABS) FOR ROAD TRACTORS FOR SEMI-TRAILERS, MOTOR VEHICLES FOR PUBLIC-TRANSPORT OF PASSENGERS, GOODS TRANSPORT AND SPECIAL PURPOSE.
870810	BUMPERS AND PARTS THEREOF FOR MOTOR VEHICLES.
870821	SAFETY SEAT BELTS FOR MOTOR VEHICLES.
870822	LAMINATED SAFETY GLASS, OF SIZE AND SHAPE SUITABLE FOR INCORPORATION IN VEHICLES, AIRCRAFT, SPACECRAFT OR VESSELS.
870829	PARTS AND ACCESSORIES OF BODIES (INCLUDING CABS) FOR MOTOR VEHICLES, NESOI.
870830	BRAKES AND SERVO-BRAKES; PARTS THEREOF.
870840	GEAR BOXES FOR MOTOR VEHICLES.
870850	DRIVE AXLES WITH DIFFERENTIAL FOR MOTOR VEHICLES.
870870	ROAD WHEELS AND PARTS AND ACCESSORIES THEREOF FOR MOTOR VEHICLES.
870880	SUSPENSION SHOCK ABSORBERS FOR MOTOR VEHICLES.
870891	RADIATORS FOR MOTOR VEHICLES.
870892	MUFFLERS AND EXHAUST PIPES FOR MOTOR VEHICLES.
870893	CLUTCHES AND PARTS THEREOF FOR MOTOR VEHICLES.
870894	STEERING WHEELS, STEERING COLUMNS AND STEERING BOXES FOR MOTOR VEHICLES.
870895	SAFETY AIRBAGS WITH INFLATOR SYSTEM; PARTS THEREOF.

* * * * * * *
870919	WORKS TRUCKS (NOT LIFTING OR HANDLING) USED IN FACTORIES ETC. AND TRACTORS USED ON RAILWAY STATION PLATFORMS, NOT ELECTRICAL.

* * * * * * *
871000	TANKS AND OTHER ARMORED FIGHTING VEHICLES, MOTORIZED, WHETHER OR NOT FITTED WITH WEAPONS, AND PARTS OF SUCH VEHICLES.
871110	MOTORCYCLES AND CYCLES WITH AN AUXILIARY MOTOR, WITH RECIPROCATING INTERNAL COMBUSTION PISTON ENGINE, CYLINDER CAPACITY NOT OVER 50 CC.
871200	BICYCLES AND OTHER CYCLES (INCLUDING DELIVERY TRICYCLES), NOT MOTORIZED.
871491	FRAMES AND FORKS, AND PARTS THEREOF FOR BICYCLES AND OTHER CYCLES NESOI.
871492	WHEEL RIMS AND SPOKES FOR BICYCLES AND OTHER CYCLES NESOI.
871493	HUBS (OTHER THAN COASTER BRAKING HUBS AND HUB BRAKES) AND FREE-WHEEL SPROCKET-WHEELS FOR BICYCLES AND OTHER CYCLES NESOI.
871494	BRAKES, INCLUDING COASTER BRAKING HUBS AND HUB BRAKES AND PARTS THERE OF, FOR BICYCLES AND OTHER CYCLES NESOI.
871495	SADDLES FOR BICYCLES AND OTHER CYCLES NESOI.
871496	PEDALS AND CRANK-GEAR, AND PARTS THEREOF FOR BICYCLES AND OTHER CYCLES NESOI.
871499	PARTS AND ACCESSORIES NESOI, FOR BICYCLES AND OTHER CYCLES NESOI.
871610	TRAILERS AND SEMI-TRAILERS FOR HOUSING OR CAMPING.

* * * * * * *
871631	TANKER TRAILERS AND TANKER SEMI-TRAILERS.

* * * * * * *
871640	TRAILERS AND SEMI-TRAILERS, NESOI.
871680	VEHICLES (OTHER THAN TRAILERS AND SEMI-TRAILERS), NOT MECHANICALLY PROPELLED, NESOI.

* * * * * * *
890120	TANKERS FOR THE TRANSPORT OF GOODS.
Start Printed Page 51677
890130	REFRIGERATED VESSELS, OTHER THAN TANKERS.
890190	VESSELS NESOI, FOR THE TRANSPORT OF GOODS, AND OTHER VESSELS NESOI, FOR THE TRANSPORT OF BOTH PERSONS AND GOODS.
890200	FISHING VESSELS; FACTORY SHIPS AND OTHER VESSELS FOR PROCESSING OR PRESERVING FISHERY PRODUCTS.

* * * * * * *
890400	TUGS AND PUSHER CRAFT VESSELS.
890510	DREDGERS (VESSELS).
890610	WARSHIPS (INCLUDING SUBMARINES, TROOPSHIPS ETC.).
890690	VESSELS (OTHER THAN WARSHIPS) INCLUDING LIFEBOATS, OTHER THAN ROW BOATS, NESOI.
890710	INFLATABLE RAFTS.
890790	FLOATING STRUCTURES (FOR EXAMPLE, TANKS, COFFERDAMS, LANDING-STAGES, BUOYS AND BEACONS), EXCEPT INFLATABLE RAFTS.
890800	VESSELS AND FLOATING STRUCTURES FOR BREAKING UP (SCRAPPING).

* * * * * * *
930200	REVOLVERS AND PISTOLS, DESIGNED TO FIRE LIVE AMMUNITION.
930310	MUZZLE-LOADING FIREARMS.
930320	SPORTING, HUNTING OR TARGET-SHOOTING SHOTGUNS, INCLUDING COMBINATION SHOTGUN-RIFLES, EXCEPT MUZZLE-LOADING FIREARMS.
930330	SPORTING, HUNTING OR TARGET-SHOOTING RIFLES, EXCEPT MUZZLE-LOADING FIREARMS AND COMBINATION SHOTGUN-RIFLES.
930390	DEVICES DESIGNED TO PROJECT ONLY SIGNAL FLARES; PISTOLS AND REVOLVERS FOR FIRING BLANK AMMUNITION; CAPTIVE-BOLT HUMANE KILLERS; LINE-THROWING GUNS.
930400	ARMS NESOI (INCLUDING SPRING, AIR OR GAS GUNS AND PISTOLS, BUT EXCLUDING SWORDS, BAYONETS AND SIMILAR ARMS).
930510	PARTS AND ACCESSORIES OF REVOLVERS OR PISTOLS.
930520	PARTS AND ACCESSORIES OF SHOTGUNS OR RIFLES OF HEADING 9303.
930599	PARTS AND ACCESSORIES OF ARTICLES OF HEADINGS 9303 TO 9304, NESOI.
930621	SHOTGUN CARTRIDGES.
930629	AIR GUN PELLETS AND PARTS OF SHOTGUN CARTRIDGES.
930630	CARTRIDGES AND PARTS THEREOF, NESOI.
930690	BOMBS, GRENADES, TORPEDOES, MINES, MISSILES AND SIMILAR MUNITIONS OF WAR AND PARTS THEREOF; OTHER AMMUNITION AND PROJECTILES AND PARTS THEREOF, NESOI.
930700	SWORDS, CUTLASSES, BAYONETS, LANCES AND SIMILAR ARMS AND PARTS THEREOF AND SCABBARDS AND SHEATHS THEREFOR.

* * * * * * *
960350	BRUSHES NESOI, CONSTITUTING PARTS OF MACHINES, APPLIANCES OR VEHICLES.
960390	HAND-OPERATED MECHANICAL (NOT MOTORIZED) FLOOR SWEEPERS, MOPS AND FEATHER DUSTERS; PREPARED KNOTS AND TUFTS FOR BROOM OR BRUSH MAKING, NESOI.

19. Supplement no. 5 to part 746 is amended by revising the heading, paragraph (a), and first sentence of paragraph (b) to read as follows:

(a) The source for the Harmonized Tariff Schedule (HTS)-6 codes and descriptions in this list is the United States International Trade Commission (USITC)'s Harmonized Tariff Schedule of the United States (2023). The items described in supplement no. 5 to part 746 include any modified or designed “components,” “parts,” “accessories,” and “attachments” therefor regardless of the HTS Code or HTS Description of the “components,” “parts,” “accessories,” and “attachments,” apart from any “part” or minor “component” that is a fastener ( e.g., screw, bolt, nut, nut plate, stud, insert, clip, rivet, pin), washer, spacer, insulator, grommet, bushing, spring, wire, or solder. The exclusion of fasteners from this control does not apply to fasteners that are designated under an HTS Code under this supplement. Although generally fasteners ( e.g., screws, bolts, nuts, nut plates, studs, inserts, clips, rivets, pins), and washers, spacers, insulators, grommets, bushings, springs, wires, and solder are excluded from the scope of this supplement, see part 744 of the EAR for license requirements for Russia and Belarus that apply to all items “subject to the EAR,” e.g., § 744.21 and the Entity List license requirements, which in most cases extend to all items “subject to the EAR.” This supplement includes two columns consisting of the HTS Code and HTS Description and Per Unit Wholesale Price in the U.S. if applicable to assist exporters, reexporters, and transferors in identifying the products in this supplement. For information on HTS codes in general, you may contact a local import specialist at U.S. Customs and Border Protection at the nearest port. HTS-6 Codes 590500, 840710, 840721, 840729, 840731, 840732, 840733, 840734, 840790, 840810, 840820, 840890, 840910, 840991, 840999, 841111, 841112, 841121, 841122, 841181, 841182, 841191, 841199, 841229, 841290, 841451, 841459, 841460, 841510, 841810, 841821, 841829, 841830, 841840, 841981, 842211, 842310, 842860, 843139, 844312, 844331, 844332, 844339, 845011, 845012, 845019, 845121, 845210, 847010, 847021, 847029, 847030, 847130, 847141, 847149, 847150, 847160, 847170, 847180, 847190, 847290, 847960, 848310, 848320, 848330, 848340, 848350, 848360, 848390, 850811, 850819, 850860, 850980, 851110, 851120, 851130, 851140, 851150, 851180, 851190, 851220, 851230, 851240, 851631, 851650, 851660, 851671, 851672, 851679, 851711, 851713, 851718, 851761, 851762, 851769, 851920, 851930, 851981, 851989, 852110, 852190, 852691, 852712, 852713, 852719, 852721, 852729, 852791, 852792, 852799, 852871, 852872, 852910, 853110, 854370, 854430, 870310, 870321, 870322, 870323, 870324, 870331, 870332, 870333, 870340, 870350, 870360, 870370, 870380, 870390, and 902000 are listed in both this supplement and supplement no. 4 to this part, so exporters, reexporters, and transferors must comply with the license requirements under both §§ 746.8(a)(5) and (7) as applicable.

(b) The items identified in the HTS-6 Code column of this supplement are subject to the license requirement under § 746.8(a)(7). * * *

20. Supplement no. 6 to part 746 is amended by:

a. Revising the heading; and

b. Adding paragraph (h), to read as follows:

(h) Riot Control Agents which are isomers of CS (o-Chlorobenzylidenemalononitrile or o-Chlorobenzalmalononitrile) (CAS 2698-41-1); CN (Phenylacyl chloride or w-Chloroacetophenone) (CAS 532-27-4); or Oleoresin Capsicum (CAS 8023-77-6) as follows:

(1) 8-Methyl-N-vanillyl-trans-6-nonenamide (Capsaicin) (CAS 404-86-4);

(2) 8-Methyl-N-vanillylnonamide (Dihydrocapsaicin) (CAS 19408-84-5);

(3) N-Vanillylnonamide (Pseudocapsaicin, PAVA) (CAS 2444-46-4);

(4) N-Vanillyl-9-methyldec-7-(E)-enamide (Homocapsaicin) (CAS 58493-48-4);

(5) N-Vanillyl-9-methyldecanamide (Homodihydrocapsaicin) (CAS 20279-06-5);

(6) N-Vanillyl-7-methyloctanamide (Nordihydrocapsaicin) (CAS 28789-35-7);

(7) 2′-chloroacetophenone (CAS 2142-68-9);

(8) 3′-chloroacetophenone (CAS 99-02-5);

(9) α-chlorobenzylidenemalononitrile (CAS 18270-61-6); and

(10) Cis-4-acetylaminodicyclohexylmethane (CAS 37794-87-9).

21. Supplement no. 7 to part 746 is amended by revising paragraph (a) to read as follows:

22. The authority citation for part 774 continues 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.; 10 U.S.C. 8720 ; 10 U.S.C. 8730(e) ; 22 U.S.C. 287c , 22 U.S.C. 3201 et seq.; 22 U.S.C. 6004 ; 42 U.S.C. 2139a ; 15 U.S.C. 1824 ; 50 U.S.C. 4305 ; 22 U.S.C. 7201 et seq.; 22 U.S.C. 7210 ; E.O. 13026 , 61 FR 58767 , 3 CFR , 1996 Comp., p. 228; E.O. 13222 , 66 FR 44025 , 3 CFR , 2001 Comp., p. 783.

23. Supplement no. 1 to part 774 is amended by revising ECCNs 0A998, 1C992, 3A229, 3A231, 3A232, 6A991, 8A992, and 8D999 to read as follows:

0A998 Oil and gas exploration equipment, software, and data, as follows (see List of Items Controlled).

Reason for Control: Foreign policy

Russian industry sector sanction applies to entire entrySee § 746.8 for specific license requirements and license review policy.

Related Controls: N/A

Related Definitions: N/A

a. Oil and gas exploration data, e.g., seismic analysis data.

b. Hydraulic fracturing items, as follows:

b.1. Hydraulic fracturing design and analysis software and data.

b.2. Hydraulic fracturing ‘proppant,’ ‘fracking fluid,’ and chemical additives therefor.

Technical Note:

A ‘proppant’ is a solid material, typically treated sand or man-made ceramic materials, designed to keep an induced hydraulic fracture open, during or following a fracturing treatment. It is added to a ‘fracking fluid’ which may vary in composition depending on the type of fracturing used, and can be gel, foam or slickwater-based.

b.3. High pressure pumps.

1C992 Commercial charges and devices containing energetic materials, n.e.s. and nitrogen trifluoride in a gaseous state (see List of Items Controlled).

Reason for Control: AT, RS, foreign policy

AT applies to entire entryAT Column 1.RS applies to entire entryA license is required for items controlled by this entry for export or reexport to Iraq and transfer within Iraq for regional stability reasons. The Commerce Country Chart is not designed to determine RS license requirements for this entry. See §§ 742.6 and 746.3 of the EAR for additional information.Russian industry sector sanctions apply to entire entrySee § 746.8 for specific license requirements and license review policy.

Related Controls: (1) Commercial charges and devices “subject to the EAR,” contain energetic materials described on the USML that exceed the quantities noted or that are not covered by this entry are controlled under ECCN 1C608. (2) Nitrogen trifluoride when not in a gaseous state is controlled under ECCN 1C608.

Related Definitions: (1) Items controlled by this entry ECCN 1C992 are those materials not controlled by ECCN 1C608 and not “subject to the ITAR.” (2) For purposes of this entry, the term “controlled materials” means controlled energetic materials (see ECCNs 1C011, 1C111, 1C239, and 1C608; see also 22 CFR 121.1 , Category V). (3) The individual energetic materials described on the USML, even when compounded with other materials, remain “subject to the ITAR” when not incorporated into explosive devices or charges. (4) Commercial prefabricated slurries and emulsions containing greater than 35% of energetic materials described on the USML are “subject to the ITAR.” (5) For purposes of this entry, the mass of aluminum powder, potassium perchlorate, and any of the substances listed in the note to the USML (see 22 CFR 121.12 ) (such as Start Printed Page 51679 ammonium pictrate, black powder, etc.) contained in commercial explosive devices and in the charges are omitted when determining the total mass of controlled material.

a. Shaped charges “specially designed” for oil well operations, utilizing one charge functioning along a single axis, that upon detonation produce a hole, and

a.1. Contain any formulation of controlled materials;

a.2. Have only a uniform shaped conical liner with an included angle of 90 degrees or less;

a.3. Contain more than 0.010 kg but less than or equal to 0.090 kg of controlled materials; and

a.4. Have a diameter not exceeding 4.5 inches;

b. Shaped charges “specially designed” for oil well operations containing less than or equal to 0.010 kg of controlled materials;

c. Detonation cord or shock tubes containing less than or equal to 0.064 kg per meter (300 grains per foot) of controlled materials;

d. Cartridge power devices, that contain less than or equal to 0.70 kg of controlled materials in the deflagration material;

e. Detonators (electric or nonelectric) and assemblies thereof, that contain less than or equal to 0.01 kg of controlled materials;

f. Igniters, that contain less than or equal to 0.01 kg of controlled materials;

g. Oil well cartridges, that contain less than or equal to 0.015 kg of controlled energetic materials;

h. Commercial cast or pressed boosters containing less than or equal to 1.0 kg of controlled materials;

i. Commercial prefabricated slurries and emulsions containing less than or equal to 10.0 kg and less than or equal to thirty-five percent by weight of materials described on the USML;

j. Cutters and severing tools containing less than or equal to 3.5 kg of controlled materials;

k. Pyrotechnic devices when designed exclusively for commercial purposes ( e.g., theatrical stages, motion picture special effects, and fireworks displays) and containing less than or equal to 3.0 kg of controlled materials; or

l. Other commercial explosive devices and charges not controlled by 1C992.a through .k containing less than or equal to 1.0 kg of controlled materials.

1C992.l includes automotive safety devices; extinguishing systems; cartridges for riveting guns; explosive charges for agricultural, oil and gas operations, sporting goods, commercial mining, or public works purposes; and delay tubes used in the assembly of commercial explosive devices.

m. Nitrogen trifluoride (NF 3 ) in a gaseous state.

3A229 Firing sets and equivalent high-current pulse generators for detonators controlled by 3A232 (see List of Items Controlled).

Reason for Control: NP, AT, foreign policy

NP applies to entire entryNP Column 1.AT applies to entire entryAT Column 1.Russian industry sector sanctions apply to entire entrySee § 746.8 for specific license requirements and license review policy.

Related Controls: (1) See ECCNs 3E001 and 1E001 (“development” and “production”) and 3E201 and 1E201 (“use”) for technology for items controlled under this entry. (2) See 1A007.a for explosive detonator firing sets designed to drive explosive detonators controlled by 1A007.b. (3) High explosives and related equipment for military use are “subject to the ITAR” (see 22 CFR parts 120 through 130 ).

ECCN Controls: (1) Optically driven firing sets include both those employing laser initiation and laser charging. (2) Explosively driven firing sets include booth explosive ferroelectric and explosive ferromagnetic firing set types. (3) 3A229.b includes xenon flash-lamp drivers.

a. Detonator firing sets (initiation systems, firesets), including electronically-charged, explosively-driven and optically-driven firing sets designed to drive multiple controlled detonators controlled by 3A232;

b. Modular electrical pulse generators (pulsers) having all of the following characteristics:

b.1. Designed for portable, mobile, or ruggedized use;

b.2. Capable of delivering their energy in less than 15 µs into loads of less than 40 Ω (ohms);

b.3. Having an output greater than 100 A;

b.4. No dimension greater than 30 cm;

b.5. Weight less than 30 kg; and

b.6. Specified for use over an extended temperature range 223 K (−50 °C) to 373 K (100 °C) or specified as suitable for aerospace applications.

c. Micro-firing units having all of the following characteristics:

c.1. No dimension greater than 35 mm;

c.2. Voltage rating of equal to or greater than 1 kV; and

c.3. Capacitance of equal to or greater than 100 nF.

3A231 Neutron generator systems, including tubes, having both of the characteristics described in this ECCN (see List of Items Controlled).

Related Controls: See ECCNs 3E001 (“development” and “production”) and 3E201 (“use”) for technology for items controlled under this entry.

a. Designed for operation without an external vacuum system; and

b. Utilizing electrostatic acceleration to induce:

b.1. A tritium-deuterium nuclear reaction; or

b.2. A deuterium-deuterium nuclear reaction and capable of an output of 3 × 10 9 neutrons/s or greater.

3A232 Detonators and multipoint initiation systems, as follows (see List of Items Controlled).

Related Controls: (1) See ECCNs 0A604 and 1A007 for electrically driven explosive detonators. (2) See ECCNs 3E001 (“development” and “production”) and 3E201 (“use”) for technology for items controlled under this entry. (3) High explosives and related equipment for military use are “subject to the ITAR” (see 22 CFR parts 120 through 130 ).

ECCN Controls: This entry does not control detonators using only primary explosives, such as lead azide.

a. [Reserved]

b. Arrangements using single or multiple detonators designed to nearly simultaneously Start Printed Page 51680 initiate an explosive surface over an area greater than 5,000 mm 2 from a single firing signal with an initiation timing spread over the surface of less than 2.5 µs.

The word initiator is sometimes used in place of the word detonator.

6A991 Marine or terrestrial acoustic equipment, n.e.s., capable of detecting or locating underwater objects or features or positioning surface vessels or underwater vehicles; and “specially designed” “parts” and “components,” n.e.s.

Reason for Control: AT, foreign policy

AT applies to entire entryAT Column 2.Russian industry sector sanctions apply to entire entrySee § 746.8 for specific license requirements and license review policy.

Items: The list of items controlled is contained in the ECCN heading.

8A992 Vessels, marine systems or equipment, not controlled by 8A001 or 8A002, and “specially designed” “parts” and “components” therefor, and marine boilers and “parts,” “components,” “accessories,” and “attachments” therefor (see List of Items Controlled).

Reason for Control: AT, Foreign policy

Control(s) AT applies to entire entryAT Column 1.Russian industry sector sanctions apply to entire entrySee § 746.8 for specific license requirements and license review policy.

Related Controls: 1. See also 8A002. 2. Marine gas turbine engines are not controlled in paragraph .g of this entry. See ECCN 9A619 for possible controls on marine gas turbine engines specially designed for a military use. See ECCN 9A002 for possible controls on marine gas turbine engines not specially designed for a military use. Marine gas turbine engines subject to the EAR that are not controlled in ECCNs 9A002 or 9A619 are designated EAR99.

a. Underwater vision systems, as follows:

a.1. Television systems (comprising camera, lights, monitoring and signal transmission equipment) having a limiting resolution when measured in air of more than 500 lines and “specially designed” or modified for remote operation with a submersible vehicle; or

a.2. Underwater television cameras having a limiting resolution when measured in air of more than 700 lines;

Limiting resolution in television is a measure of horizontal resolution usually expressed in terms of the maximum number of lines per picture height discriminated on a test chart, using IEEE Standard 208/1960 or any equivalent standard.

b. Photographic still cameras “specially designed” or modified for underwater use, having a film format of 35 mm or larger, and having autofocusing or remote focusing “specially designed” for underwater use;

c. Stroboscopic light systems, “specially designed” or modified for underwater use, capable of a light output energy of more than 300 J per flash;

d. Other underwater camera equipment, n.e.s.;

e. Other submersible systems, n.e.s.;

f. Vessels, n.e.s., including inflatable boats, and “specially designed” “parts” and “components” therefor, n.e.s.;

g. Marine engines (both inboard and outboard) and submarine engines, n.e.s.; and “specially designed” “parts” and “components” therefor, n.e.s.;

h. Other self-contained underwater breathing apparatus (scuba gear) and related equipment, n.e.s.;

i. Life jackets, inflation cartridges, compasses, wetsuits, masks, fins, weight belts, and dive computers;

j. Underwater lights and propulsion equipment;

k. Air compressors and filtration systems “specially designed” for filling air cylinders.

l. Marine boilers designed to have any of the following characteristics:

l.1. Heat release rate (at maximum rating) equal to or in excess of 190,000 BTU per hour per cubic foot of furnace volume; or

l.2. Ratio of steam generated in pounds per hour (at maximum rating) to the dry weight of the boiler in pounds equal to or in excess of 0.83.

m. Major “components,” “accessories,” and “attachments” for marine boilers described in 8A992.l.

8D999 “Software” “specially designed” for the operation of unmanned submersible vehicles used in the oil and gas industry.

Control(s) Russian industry sector sanctions apply to entire entrySee § 746.8 for specific license requirements and license review policy.

Thea D. Rozman Kendler,

Assistant Secretary for Export Administration.

[ FR Doc. 2024-13148 Filed 6-12-24; 10:30 am]

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Financial Analysis on Toyota and General Motors (500 Words)
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PDF Fundamental Valuation of The General Motors Company
3.1 General Motors Company (GM) GM is a publically traded company listed on the New York Stock Exchange under the ticker symbol GM, with a current market capitalization of $29.69B as of March 31st 2020 (GM, 2020a). The company traces its roots back to 1908 and was founded by William C. Durant in Michigan.
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Investment thesis General Motors Company's ( NYSE: GM ) auto sales continue to look promising to us, with a strong recovery in U.S. sales offsetting slower sales recovery to pre-covid levels in ...
Fundamental valuation of the General Motors Company
The purpose of this thesis is to conduct an in depth fundamental valuation of The General Motors Company in order to provide an equity value and share price as of March 31st 2020. We hope to highlight the potential value to be had in an investment of GM, yet also showcase how the Covid-19 pandemic has caused havoc not only within the company, but
Why General Motors (GM) Stock is a Compelling Investment Case
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The investment thesis is no more or less than a definitive statement, based on a clear understanding of how money is made in your business, that outlines how adding this particular business to your portfolio will make your company more valuable. Many of the best acquirers write out their investment theses in black and white.
General Motors Stock Pitch Presentation
General Motors Stock Pitch Presentation. The presentation that I am submitting is a stock pitch that is going over my analysis of General Motors. The main goal of the presentation is to analyze the given company and its industry and then develop an investment thesis that provides a buy/sell recommendation.
Investment Thesis
Investment Thesis - Pen to Paper. john garrett. April 13, 2017. ... to always recommend to my students that they take a yellow pad like this and if they're buying a hundred shares of General Motors at 30 and General Motors has whatever it has out, 600 million shares or a little less, that they say, 'I'm going to buy the General Motors ...
PDF Comparing and Analyzing Financial Statements to Make an Investment Decision
1.1 Purpose of Thesis Making an Investment is a very big decision one takes, and nobody enjoys losing value of their investments. They rather wish to add value to their existing assets. According to Frank (1990:5-6) investment is the current commitment of one's asset assigned for a time period to make a growth. Meanwhile a bad investment
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(PDF) An analysis of General Motors' information systems and their
Critics say that GM has failed to fully leverage the $50 billion of technological investment in recent decades, pointing to Toyota‟s return on investment for the period 1983-2005 was 4.5%, against GM‟s 1.6% as evidence of the latter‟s poor performance (Vaghefi et al, 2007). 2.5 The vital role of strategic partnerships:The scale of ...
Causes of Insolvencies in Large Businesses. A Case Study of General Motors
A Case Study of General Motors - Business economics - Master's Thesis 2012 - ebook 34.99 € - GRIN. search menu. Menu. Skip to content. ... Master's Thesis, 2012 104 Pages. M M Makboolbhai Masi (Author) eBook for only US$ 36.99 ... However Innovation and diversification require huge investments. So me organisations go for second option ...
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PDF Strategic and Operational Overview
Deliver Strategic and Financial Value to General Motors 3 Captive Value Proposition Operations cover ~90% of GM's worldwide sales. 7 million retail contracts outstanding . Offering auto finance products to . ... • Commitment to investment grade rating; diversified funding plan with unsecured debt mix ~50%
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PDF Strategic and Operational Overview
Deliver Strategic and Financial Value to General Motors. Captive Value Proposition. Operations cover ~90%. of GM's worldwide sales >6.5 million: retail contracts outstanding : Offering auto finance products to . 14,000: dealers worldwide: ... Commitment to investment grade rating; diversified
Analysts revamp GM stock price targets after union deal, buyback
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Missouri
Learn more about General Motors in Missouri, and our employees, facilities, dealers, suppliers, investments, operations and more. General Motors in Missouri. GM Wentzville has proudly been a part of Missouri for over 40 years - since 1983. Missouri Featured Facilities. Missouri Stories
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(Solved)
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Causes of Insolvencies in Large Businesses. A Case Study of General Motors

1.0 Chapter 1 - Introduction

1.2 Rationale

1.3 Aims and Objectives

1.4 Organisational profile

2.0 Chapter 2 - Literature review

2.2.1 Impact of economic and financial crisis on large organisations

2.2.2 Capitalism and market economy

2.2.3 Strategic management

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