98-29269. Action Affecting Export Privileges; Thane-Coat, Inc.  

  • [Federal Register Volume 63, Number 211 (Monday, November 2, 1998)]
    [Notices]
    [Pages 58707-58709]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 98-29269]
    
    
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    DEPARTMENT OF COMMERCE
    
    Bureau of Export Administration
    
    
    Action Affecting Export Privileges; Thane-Coat, Inc.
    
        In the Matters of: Thane-Coat, Inc., 12725 Royal Drive, 
    Stafford, Texas 77477, Jerry Vernon Ford, President, Thane-Coat, 
    Inc. 12725 Royal Drive, Stafford, Texas 77477 and with an address at 
    7707 Augustine Drive, Houston, Texas 77036, and Preston John 
    Engebretson, Vice-President, Thane-Coat, Inc., 12725 Royal Drive, 
    Stafford, Texas 77477 and with an address at 8903 Bonhomme Road, 
    Houston, Texas 77074, Respondents
    
    [[Page 58708]]
    
    Decision and Order on Renewal of Temporary Denial Order
    
        On April 29, 1998, I issued a Decision and Order on Renewal of 
    Temporary Denial Order (hereinafter ``Order'' or ``TDO''), renewing for 
    180 days, in a ``non-standard'' format, a May 5, 1997 Order naming, 
    inter alia, Thane-Coat, Inc.; Jerry Vernon Ford, president, Thane-Coat, 
    Inc.; and Preston John Engebretson, vice-president, Thane-Coat, Inc. 
    (hereinafter referred to collectively as the ``Respondents''), as 
    persons temporarily denied all U.S. export privileges. 63 FR 25817-
    25189 (May 11, 1998).\1\ The Order will expire on October 26, 1998.
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        \1\ The May 5, 1997 Order also named Thane-Coat, International, 
    Ltd. and Export Materials, Inc. as persons temporarily denied all 
    U.S. export privileges. I am issuing a separate Decision and Order 
    today renewing the TDO against Thane-Coat, International, Ltd. 
    (under its legal name of TIC Ltd.) and Export Materials in a 
    ``standard'' format.
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        On October 6, 1998, pursuant to Section 766.24 of the Export 
    Administration Regulations (currently codified at 15 C.F.R. Parts 730-
    774 (1998)) (hereinafter the ``Regulations''), issued pursuant to the 
    Export Administration Act of 1979, as amended (50 U.S.C.A. app. 
    Secs. 2401-2420 (1991 & Supp. 1998)) (hereinafter the ``Act''),\2\ the 
    Office of Export Enforcement, Bureau of Export Administration, United 
    States Department of Commerce (hereinafter ``BXA''), requested that I 
    renew the Order against Thane-Coat, Inc., Jerry Vernon Ford, and 
    Preston John Engebretson for 180 days in a non-standard format, 
    consistent with the terms agreed to by and between the parties in April 
    1998.
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        \2\ The Act expired on August 20, 1994. Executive Order 12924 (3 
    C.F.R., 1994 Comp. 917 (1995)), extended by Presidential Notices of 
    August 15, 1995 (3 C.F.R., 1995 Comp. 501 (1996)), August 14, 1996 
    (3 C.F.R., 1996 Comp. 298 (1997)), August 13, 1997 (3 C.F.R., 1997 
    Comp. 306 (1998)), and August 13, 1998 (63 Fed. Reg. 44121, August 
    17, 1998), continued the Regulations in effect under the 
    International Emergency Economic Powers Act (currently codified at 
    50 U.S.C.A. Secs. 1701-1706 (1991 & Supp. 1998)).
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        In its request, BXA stated that, as a result of an ongoing 
    investigation, it had reason to believe that, during the period from 
    approximately June 1994 through approximately July 1996, Thane-Coat, 
    Inc., through Ford and Engebretson, and using its affiliated companies, 
    TIC Ltd. and Export Materials, Inc., made approximately 100 shipments 
    of U.S.-origin pipe coating materials, machines, and parts to the Dong 
    Ah Consortium in Benghazi, Libya. These items were for use in coating 
    the internal surface of prestressed concrete cylinder pipe for the 
    Government of Libya's Great Man-Made River Project.\3\ Moreover, BXA's 
    investigation gave it reason to believe that the Respondents and the 
    affiliated companies employed a scheme to export U.S.-origin products 
    from the United States, through the United Kingdom, to Libya, a country 
    subject to a comprehensive economic sanctions program, without the 
    authorizations required under U.S. law, including the Regulations. The 
    approximate value of the 100 shipments at issue was $35 million. In 
    addition, the Respondents and the affiliated companies undertook 
    several significant and affirmative actions in connection with the 
    solicitation of business on another phase of the Great Man-Made River 
    Project.
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        \3\ BXA understands that the ultimate goal of this project is to 
    bring fresh water from wells drilled in southeast and southwest 
    Libya through prestressed concrete cylinder pipe to the coastal 
    cities of Libya. This multibillion dollar, multiphase engineering 
    endeavor is being performed by the Dong Ah Construction Company of 
    Seoul, South Korea.
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        BXA has stated that it believes that the matters under 
    investigation and the information obtained to date in that 
    investigation support renewal of the TDO issued against the 
    Respondents.\4\ In that regard, in April, 1998 BXA and the Respondents 
    reached an agreement, whereby BXA sought a renewal of the TDO in a 
    ``non-standard'' format, denying all of the Respondents' U.S. export 
    privileges to the United Kingdom, The Bahamas, Libya, Cuba, Iraq, North 
    Korea, Iran, and any other country or countries that may be made 
    subject in the future to a general trade embargo by proper legal 
    authority. In return, the Respondents agreed that, among other 
    conditions, at least 14 days in advance of any export that any of the 
    Respondents intends to make of any item from the United States to any 
    destination world-wide, the Respondents will provide to BXA's Dallas 
    Field Office (i) notice of the intended export, (ii) copies of all 
    documents reasonably related to the subject transaction, including, but 
    not limited to, the commercial invoice and bill of lading, and (iii) 
    the opportunity, during the 14-day notice period, to inspect physically 
    the item at issue to ensure that the intended shipment is in compliance 
    with the Export Administration Act, the Export Administration 
    Regulations, or any order issued thereunder. BXA has sought renewal of 
    the TDO in a ``non-standard'' format; respondents have advised me that 
    they do not object to renewal of the TDO in the ``non-standard'' 
    format.
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        \4\ On October 6, 1998, BXA requested that I renew the April 29, 
    1998 TDO against TIC Ltd. and Export Materials.
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        Based on BXA's showing, I find that it is appropriate to renew the 
    order temporarily denying the export privileges of Thane-Coat, Inc., 
    Jerry Vernon Ford, Preston John Engebretson in a ``non-standard'' 
    format, incorporating the terms agreed to by and between the parties in 
    April 1998. I find that such renewal is necessary in the public 
    interest to prevent an imminent violation of the Regulations and to 
    give notice to companies in the United States and abroad to cease 
    dealing with these persons in any commodity, software, or technology 
    subject to the Regulations and exported or to be exported to the United 
    Kingdom, the Bahamas, Libya, Cuba, Iraq, North Korea, Iran, and any 
    other country or countries that may be made subject to the future to a 
    general trade embargo by proper legal authority, or in any other 
    activity subject to the Regulations with respect to these specific 
    countries. Moreover, I find such renewal is in the public interest in 
    order to reduce the substantial likelihood that Thane-Coat, Inc., Ford 
    and Engebretson will engage in activities which are in violation of the 
    Regulations.
        Accordingly, it is therefore ordered:
        First, that Thane-Coat, Inc., and all of its successors or assigns, 
    officers, representatives, agents, and employees when acting on its 
    behalf, Jerry Vernon Ford, and all of his successors, or assigns, 
    representatives, agents and employees when acting on his behalf, and 
    Preston John Engebretson, and all of his successors, or assigns, 
    representatives, agents, and employees when acting on his behalf (all 
    of the foregoing parties hereinafter collectively referred to as the 
    ``denied persons''), may not, directly or indirectly, participate in 
    any way in any transaction involving any commodity, software or 
    technology (hereinafter collectively referred to as ``item'') subject 
    to the Export Administration Regulations (hereinafter the 
    ``Regulations'') and exported or to be exported from the United States 
    to the United Kingdom, The Bahamas, Libya, Cuba, Iraq, North Korea, or 
    Iran, to any other country or countries that may be made subject in the 
    future to a general trade embargo pursuant to proper legal authority 
    (hereinafter the ``Covered Countries''), or in any other activity 
    subject to the Regulations with respect to the Covered Countries, 
    including, but not limited to:
        A. Applying for, obtaining, or using any license, License 
    Exception, or export control document;
        B. Carrying on negotiations concerning, or ordering, buying,
    
    [[Page 58709]]
    
    receiving, using, selling, delivering, storing, disposing of, 
    forwarding, transporting, financing, or otherwise servicing in any way, 
    any transaction involving any item that is subject to the Regulations 
    and that is exported or to be exported from the United States to any of 
    the Covered Countries, or in any other activity subject to the 
    Regulations; or
        C. Benefiting in any way from any transaction involving any item 
    exported or to be exported from the United States to any of the Covered 
    Countries that is subject to the Regulations, or in any other activity 
    subject to the Regulations.
        Second, that no person may, directly or indirectly, do any of the 
    following:
        A. Export or reexport to or on behalf of any of the denied persons 
    any item subject to the Regulations to any of the Covered Countries;
        B. Take any action that facilitates the acquisition, or attempted 
    acquisition by any of the denied persons of the ownership, possession, 
    or control of any item subject to the Regulations that has been or will 
    be exported from the United States to any of the Covered Countries, 
    including financing or other support activities related to a 
    transaction whereby any of the denied persons acquires or attempts to 
    acquire such ownership, possession or control;
        C. Take any action to acquire from or to facilitate the acquisition 
    or attempted acquisition from any of the denied persons of any item 
    subject to the Regulations that has been exported from the United 
    States to any of the Covered Countries;
        D. Obtain from any of the denied persons in the United States any 
    item subject to the Regulations with knowledge or reason to know that 
    the item will be, or is intended to be, exported from the United States 
    to any of the Covered Countries; or
        E. Engage in any transaction to service any item subject to the 
    Regulations that has been or will be exported from the United States to 
    any of the Covered Countries, and which is owned, possessed or 
    controlled by any of the denied persons, or service any item, of 
    whatever origin, that is owned, possessed or controlled by any of the 
    denied persons if such service involves the use of any item subject to 
    the Regulations that has been or will be exported from the United 
    States to any of the Covered Countries. For purposes of this paragraph, 
    servicing means installation, maintenance, repair, modification or 
    testing.
        Third, that, at least 14 days in advance of any export that any of 
    the denied persons intends to make of any item from the United States 
    to any destination world-wide, the denied person will provide to BXA's 
    Dallas Field Office (i) notice of the intended export, (ii) copies of 
    all documents reasonably related to the subject transaction, including, 
    but not limited to, the commercial invoice and bill of lading, and 
    (iii) the opportunity, during the 14-day notice period, to inspect 
    physically the item at issue to ensure that the intended shipment is in 
    compliance with the Export Administration Act, the Export 
    Administration Regulations, or any order issued thereunder.
        Fourth, that, after notice and opportunity for comment, as provided 
    in Section 766.23 of the Regulations, any person, firm, corporation, or 
    business organization related to any of the denied persons by 
    affiliation, ownership, control, or position of responsibility in the 
    conduct of trade or related services, may also be made subject to the 
    provisions of this Order.
        Fifth, that this Order does not prohibit any export, reexport, or 
    other transaction subject to the Regulations where the only items 
    involved that are subject to the Regulations are the foreign-produced 
    direct product of U.S.-origin technology.
        Sixth, that, in accordance with the provisions of Section 766.24(e) 
    of the Regulations, Thane-Coat, Ford, or Engebretson may, at any time, 
    appeal this Order by filing a full written statement in support of the 
    appeal with the Office of the Administrative Law Judge, U.S. Coast 
    Guard ALJ Docketing Center, 40 South Gay Street, Baltimore, Maryland 
    21202-4022.
        Seventh, that this Order is effective immediately and shall remain 
    in effect for 180 days.
        Eighth, that, in accordance with the provisions of Section 
    766.24(d) of the Regulations, BXA may seek renewal of this Order by 
    filing a written request not later than 20 days before the expiration 
    date. Any respondent may oppose a request to renew this Order by filing 
    a written submission with the Assistant Secretary for Export 
    Enforcement, which must be received not later than seven days before 
    the expiration date of the Order.
        A copy of this Order shall be served on each Respondent and shall 
    be published in the Federal Register.
    
        Entered this 23rd day of October, 1998.
    F. Amanda DeBusk,
    Assistant Secretary for Export Enforcement.
    [FR Doc. 98-29269 Filed 10-30-98; 8:45 am]
    BILLING CODE 3510-DT-M
    
    
    

Document Information

Published:
11/02/1998
Department:
Export Administration Bureau
Entry Type:
Notice
Document Number:
98-29269
Pages:
58707-58709 (3 pages)
PDF File:
98-29269.pdf