[Federal Register Volume 64, Number 236 (Thursday, December 9, 1999)]
[Notices]
[Pages 68994-68995]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-31957]
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DEPARTMENT OF AGRICULTURE
DEPARTMENT OF COMMERCE
Bureau of Export Administration
In the Matter of: Macosia International, 2004 Baltimore Street,
Laredo, Texas 78041, Respondent
Decision and Order
On August 14, 1998, the Office of Export Enforcement, Bureau of
Export Administration, United States Department of Commerce
(hereinafter ``BXA''), issued a charging letter initiating an
administrative proceeding against Macosia International (hereinafter
``Macosia''). The charging letter alleged that Macosia committed four
violations of the Export Administration Regulations (currently codified
at 15 CFR parts 730-774 (1999)) (the Regulations),\1\ issued pursuant
to the Export Administration Act of 1979, as amended (50 U.S.C.A. app.
secs. 2401-2420 (1991 & Supp. 1999)) (the Act).\2\
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\1\ The alleged violations occurred in 1993 and 1994. The
Regulations governing the violations at issue are found in the 1993
and 1994 versions of the Code of Federal Regulations (15 CFR parts
768-799 (1993 and 1994)). Those Regulations define the violations
that BXA alleges occurred and are referred to hereinafter as the
former Regulations. Since that time, the Regulations have been
reorganized and restructured; the restructured Regulations establish
the procedures that apply to the matters set forth herein.
\2\ The Act expired on August 20, 1994. Executive Order 12924 (3
CFR, 1994 Comp. 917 (1995)), extended by Presidential Notices of
August 15, 1995 (3 CFR, 1995 Comp. 501 (1996)), August 14, 1996 (3
CFR, 1996 Comp. 298 (1997)), August 13, 1997 (3 CFR, 1997 Comp. 306
(1998)), August 13, 1998 (3 CFR, 1998 Comp. 294 (1999)) and August
10, 1999 (64 FR 44101, August 13, 1999), continued the Regulations
in effect under the International Emergency Economic Powers Act (50
U.S.C.A. 1701-1706 (1991 & Supp. 1999)).
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Specifically, the charging letter alleged that, on four separate
occasions between on or about August 17, 1993 and on or about August
18, 1994, Macosia exported handcuffs and leg irons from the United
States to Mexico without obtaining the validated export license
required by Sec. 772.1(b) of the former Regulations. BXA alleged that,
by exporting handcuffs and leg irons to any person or destination or
for any use in violation of or contrary to the terms of the Act, or any
regulation, order, or license issued thereunder, Macosia violated
Section 787.6 of the former Regulations in connection with each of the
exports, for a total of four violations.
Macosia failed to answer or otherwise respond to the charging
letter. Accordingly, pursuant to the default procedures set forth in
Sec. 766.7 of the regulations, BXA moved that the Administrative Law
Judge (hereinafter the ``ALJ'') find the facts to be as alleged in the
charging letter and render a Recommended Decision and Order.
Following BXA's motion, the ALJ issued a Recommended Decision and
Order in which he found that service of the charging letter was made on
Macosia on September 10, 1998 and that, because it filed no answer to
the charging letter, Macosia was in default. The ALJ also found the
facts to be as alleged in the charging letter, and concluded that those
facts establish that Macosia committed four violations of the former
Regulations, as BXA alleged. The ALJ also agreed with BXA's
recommendation that the appropriate penalty to be imposed for the
violations is a denial, for a period of seven years, of all of
Macosia's export privileges. As provided by Sec. 766.22 of the
regulations, the Recommended Decision and Order has been referred to me
for final action.
Based on my review of the entire record, I affirm the findings of
fact and conclusions of law in the Recommended Decision and Order of
the ALJ.
Accordingly, it is therefore ordered, First, that, for a period of
seven years from the date of this Order, Macosia International, 2004
Baltimore Street, Laredo, Texas 78041, and all of its successors or
assignees, officers, representatives, agents, and employees when acting
for or on behalf of Macosia International may not, directly or
indirectly, participate in any way in any transaction involving any
commodity, software or technology (hereinafter collectively referred to
as ``item'') exported or to be exported from the United States that is
subject to the Regulations, or in any other activity subject to the
Regulations, 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,
receiving, using, selling, delivering, storing, disposing of,
forwarding, transporting, financing, or otherwise servicing in any way,
any transaction involving any item exported or to be exported from the
United States that is subject to the Regulations, 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 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 the denied person any item
subject to the Regulations;
B. Take any action that facilitates the acquisition or attempted
acquisition or attempted acquisition by the denied person of the
ownership, possession, or control of any item subject to the
Regulations that has been or will be exported from the United States,
including financing or other support activities related to a
transaction whereby the denied person 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 the denied person of any item subject to
the Regulations that has been exported from the United States;
D. Obtain from the denied person 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; 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
and that is owned, possessed or controlled by the denied person, or
service any item, of whatever origin, that is owned, possessed or
controlled by the denied person if such service involves the use of any
item subject to the Regulations that has been or will be exported from
the United States. For purposes of this paragraph, servicing means
installation, maintenance, repair, modification or testing.
Third, that, after notice and opportunity for comment as provided
in Sec. 766.23 of the regulations, any person, firm, corporation, or
business organization related to the denied person 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.
Fourth, 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.
Fifth, that this Order shall be served on Macosia International and
on BXA, and shall be published in the Federal Register.
This Order, which constitutes the final agency action in this
matter, is effective immediately.
[[Page 68995]]
Dated: November 29, 1999.
William A. Reinsch,
Under Secretary for Export Administration.
[FR Doc. 99-31957 Filed 12-8-99 8:45 am]
BILLING CODE 3510-DT-M
