[Federal Register Volume 61, Number 32 (Thursday, February 15, 1996)]
[Notices]
[Pages 5980-5981]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-3342]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
[Docket No. 5108-01]
Leif Kare Johansen, Constitutionsvei 21, 4085 Hundvaag, Norway;
Respondent; Decision and Order
On January 26, 1996, the Administrative Law Judge (ALJ) entered his
Recommended Decision and Order in the above-referenced matter. The
Recommended Decision and Order, a copy of which is attached hereto and
made a part hereof, has been referred to me for final action. After
describing the facts of the case and his findings based on those facts,
the ALJ found that the Respondent had violated Section 787.4(a) of the
Export Administration Regulations by transporting and selling a U.S.-
origin model XL020+ computer to a consignee in Poland with knowledge or
reason to know that a violation of the Export Administration Act, or
its regulations, has occurred, is about to occur, or is intended to
occur. The ALJ also found that the Respondent violated Section 787.6 of
the Export Administration Regulations by reexporting U.S.-origin
computer equipment to a consignee in Poland in violation of the Export
Administration Act and its regulations.
The ALJ found that the appropriate penalty for the violations
should be that all outstanding individual validated licenses in which
the Respondent appears or participates and the respondent's ability to
participate in any special licensing procedure be revoked, and that the
Respondent and all representatives, agents and employees be denied for
a period of ten years from this date all privileges of participating,
directly or indirectly, in any manner or capacity, in any transaction
in the United States or abroad involving commodities or technical data
exported or to be exported from the United States and subject to the
Export Administration Regulations.
Based on my review of the entire record, I affirm the Recommended
Decision and Order of the Administrative Law Judge. I do note that, on
page two, line six of the Recommended Decision and Order, the
Administrative Law Judge indicates that a copy of the Charging Letter
was mailed to the Respondent on ``July 11, 1995.'' My review of the
record clearly indicates that the Charging Letter was in fact mailed to
the Respondent on July 11, 1994. Therefore, the Recommended Decision
and Order will be modified to reflect that the Charging Letter was
mailed to Leif Kare Johansen on July 11, 1994.
This constitutes final agency action in this matter.
Dated: February 8, 1996.
William A. Reinsch,
Under Secretary for Export Administration.
Recommended Decision and Order
On July 11, 1994, the Office of Export Enforcement, Bureau of
Export Administration, U.S. Department of Commerce (the Department),
issued a Charging Letter initiating an administrative proceeding
against Lief Kare Johansen. The Charging Letter alleged that Leif Kare
Johansen committed two violations of the Export Administration
Regulations (the Regulations or the EAR),\1\ issued pursuant to the
Export Administration Act of 1979, as amended (the Act or the EAA).\2\
\1\ The alleged violations occurred in 1989. The Regulations
governing the violations at issue are found in the 1989 version of
the Code of Federal Regulations, codified at 15 CFR Parts 768-799
(1989). The Export Administration Regulations are currently codified
at 15 CFR Parts 768-799 (1995).
\2\ The EAA is currently codified at 50 U.S.C.A. app.
Secs. 2401-2420 (1991 & Supp. 1995). The Act expired on August 20,
1994. Executive Order 12924 (59 FR 43437, August 23, 1994), extended
by Presidential Notice on August 15, 1995 (60 FR 42767, August 17,
1995), continued the Regulations in effect under the International
Emergency Economic Powers Act (50 U.S.C.A. Secs. 1701-1706 (1991)).
---------------------------------------------------------------------------
The Charging Letter alleged that, on or about July 12, 1989, Leif
Kare Johansen reexported U.S.-origin computer equipment from Norway,
via Denmark, to Poland without obtaining the reexport authorization he
knew or had reason to know was required by Section 774.1 of the
Regulations, in violation of Sections 787.4(a) and 787.6 of the
Regulations.
A copy of the Charging Letter was filed with me, and the Charging
Letter mailed to Leif Kare Johansen, on July 11, 1995. However, the
documents mailed to Leif Kare Johansen were returned to the Department
by the postal service without being delivered.
On April 19, 1995, I issued an Order requiring the Department to
file a proposed default order in this case. On May 17, 1995, I granted
the Department's May 15, 1995 Motion to Vacate Order, which explained
that service on Leif Kare Johansen had not yet been accomplished. By
its May 15, 1995 Motion, the Department also pledged to notify me when
service was properly completed.
The Department has notified me that, on August 8, 1995, the
Charging Letter was finally served on Leif Kare Johansen, and that Leif
Kare Johansen has not answered the Charging Letter within 30 days after
service as required by Section 788.7(a) of the Regulations. The
Department has also filed supporting evidence for a default judgment
against Leif Kare Johansen.
On the basis of the Department's submission and all of the
supporting evidence presented, I have determined that Leif Kare
Johansen violated Section 787.4(a) of the Regulations by transporting
and selling a U.S.-origin model XL020+ computer to a consignee in
Poland, with knowledge or reason to know that a violation of the Act,
or any regulation, order or license issued under the Act has occurred,
is about to occur, or is intended to occur with respect to the
transaction. I have also determined that by reexporting U.S.-origin
computer equipment to a consignee in Poland in violation of or contrary
to the terms of the Act, or any regulation, order or license issued
under the Act, Leif Kare Johansen violated Section 787.6 of the
Regulations.
For these violations, the Department urged as a sanction that
Johansen's export privileges be denied for 10 years. In light of the
nature of the violations, I concur in the Department's recommendation.
Accordingly, it is therefore ordered,
First, that all outstanding individual validated licenses in which
Leif Kare Johansen appears or participates, in any manner or capacity,
are hereby revoked and shall be returned forthwith to the Office of
Exporter Services for cancellation. Further, all of Johansen's
privileges of participating, in any manner or capacity, in any special
licensing procedure, including, but not limited to, distribution
licenses, are hereby revoked.
[[Page 5981]]
Second, Leif Kare Johansen, with an address at Constitutionsvei 21,
4085 Hundvaag, Norway (hereinafter referred to as Johansen), and all
his representatives, agents, and employees, shall, for a period of 10
years from the date of final agency action, be denied all privileges of
participating, directly or indirectly, in any manner or capacity, in
any transaction in the United States or abroad involving any commodity
or technical data exported or to be exported from the United States,
and subject to the Regulations.
A. Without limiting the generality of the foregoing, participation,
either in the United States or abroad, shall include participation,
directly or indirectly, in any manner or capacity: (i) As a party or as
a representative of a party to any export license application submitted
to the Department; (ii) in preparing or filing with the Department any
export license application or request for reexport authorization, or
any document to be submitted therewith; (iii) in obtaining from the
Department or using any validated or general export license, reexport
authorization, or other export control document; (iv) in carrying on
negotiations with respect to, or in receiving, ordering, buying,
selling, delivering, storing, using, or disposing of, in whole or in
part, any commodities or technical data exported or to be exported from
the Untied States and subject to the Regulations; and (v) in financing,
forwarding, transporting, or other servicing of such commodities or
technical data.
B. After notice and opportunity for comment as provided in Section
788.3(c) of the Regulations, any person, firm, corporation, or business
organization related to Johansen by affiliation, ownership, control, or
position of responsibility in the conduct of trade or related services
may also be subject to the provisions of this Order.
C. As provided by Section 787.12(a) of the Regulations, without
prior disclosure of the facts to and specific authorization of the
Office of Exporter Services, in consultation with the Office of Export
Enforcement, no person may directly or indirectly, in any manner or
capacity: (i) Apply for, obtain, or use any license, Shipper's Export
Declaration, bill of lading, or other export control document relating
to an export or reexport of commodities or technical data by, to, or
for another person then subject to an order revoking or denying his
export privileges or then excluded from practice before the Bureau of
Export Administration; or (ii) order, buy, receive, use, sell, deliver,
store, dispose of, forward, transport, finance, or otherwise service or
participate: (a) In any transaction which may involve any commodity or
technical data exported or to be exported from the United States; (b)
in any reexport thereof; or (c) in any other transaction which is
subject to the Export Administration Regulations, if the person denied
export privileges may obtain any benefit or have any interest in,
directly or indirectly, any of these transactions.
Third, that a copy of this Order shall be served on Johansen and on
the Department.
Fourth, that this Order, as affirmed or modified, shall become
effective upon entry of the final action by the Under Secretary for
Export Administration, in accordance with the Act (50 U.S.C.A. app.
2412(c)(1)) and the Regulations (15 CFR 788.23).
Dated: January 26, 1996.
Edward J. Kuhlmann,
Administrative Law Judge.
[FR Doc. 96-3342 Filed 2-14-96; 8:45 am]
BILLING CODE 3510-DT-M
