[Federal Register Volume 60, Number 23 (Friday, February 3, 1995)]
[Notices]
[Pages 6696-6697]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-2635]
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DEPARTMENT OF COMMERCE
Bureau of Export Administration
Action Affecting Export Privileges; Teledyne Wah Chang, a
Division of Teledyne Industries, Inc.
In the matter of: Teledyne Wah Chang, a division of Teledyne
Industries, Inc., 1600 N.E. Old Salem Road, P.O. Box 460, Albany,
Oregon 97321-6990, Respondent.
Order
The Office of Export Enforcement, Bureau of Export Administration,
United States Department of Commerce (Department), having notified
Teledyne Wah Chang, a division of Teledyne Industries, Inc.
(hereinafter referred to as Teledyne Wah Chang), of its intention to
initiate an administrative proceeding against it pursuant to Section
13(c) of the Export Administration Act of 1979, as amended (50 U.S.C.A.
app. Secs. 2401-2420 (1991, Supp. 1993, and Pub. L. No. 103-277, July
5, 1994)) (the Act),\1\ and Part 788 of the Export Administration
Regulations (currently codified at 15 CFR Parts 768-799 (1994)) (the
Regulations), based on allegations that Teledyne Wah Chang violated
Sections 787.3(b), 787.a(a), 787.5(a)(1), and 787.6 of the Regulations
in that:
\1\The Act expired on August 20, 1994. Executive Order No. 12924
(59 Fed. Reg. 43437, August 23, 1994) continued the Regulations in
effect under the International Emergency Economic Power Act (50
U.S.C.A. Secs. 1701-1706 (1991)).
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(1) on or before October 5, 1989, Teledyne Wah Chang engaged in two
separate conspiracies to export zirconium sponge and/or compacts from
the United States contrary to the terms of validated export licenses
issued by the Department;
(2) in carrying out those conspiracies, on six separate occasions,
Teledyne Wah Chang, as a co-conspirator, made false or misleading
statements of material fact to the Department on validated export
license applications;
(3) in carrying out those conspiracies, on four separate occasions,
Teledyne Wah Chang, as a co-conspirator, exported goods from the United
States with reason to know that a violation of the Act or any
regulation, order, or license issued under the Act would occur in
connection with each such export; and
(4) in carrying out those conspiracies, on four separate occasions,
Teledyne Wah Chang, as a co-conspirator, made false or misleading
statements of material fact on Shipper's Export Declarations that were
filed with the U.S. Customs Service;
The Department and Teledyne Wah Chang having entered into a Consent
Agreement whereby the Department and Teledyne Wah Chang have agreed to
settle this matter in accordance with the terms and conditions set
forth therein and the terms of the Consent Agreement having been
approved by me;
It is therefore ordered,
First, that a civil penalty of $2,000,000 is assessed against
Teledyne Wah Chang, all of which shall be paid to the Department within
30 days from the date of entry of this Order. Payment shall be made in
the manner specified in the attached instructions.
Second, Teledyne Wah Chang, a division of Teledyne Industries,
Inc., 1600 N.E. Old Salem Road, P.O. Box 460, Albany, Oregon 97321-
6990, and all its successors, assigns, and officers, representatives,
agents, and employees when acting on behalf of the company shall, for a
period of three years beginning on March 1, 1995, 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 United 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 Teledyne Wah Chang by affiliation, ownership,
control, or position of responsibility in the conduct of grade 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 [[Page 6697]] 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.
D. As authorized by Section 788.17(b) of the Regulations, the
denial period shall be suspended for a period of two years and nine
months beginning on June 1, 1995, and shall thereafter be waived,
provided that, during the period of suspension, Teledyne Wah Chang
commits no violation of the Act or any regulation, order or license
issued thereunder. During the period between June 1, 1995 and March 1,
1996, Teledyne Wah Chang's authority to use general license G-NSG is
suspended. Teledyne Wah Chang is eligible to apply for individual
validated export licenses for any export that would ordinarily be
eligible for export under general license G-NSG during the period that
its authority to use general license G-NSG is suspended. Further, for
the last two years of the denial period, Teledyne Wah Chang shall
report periodically to the Office of Export Enforcement, Bureau of
Export Administration, United States Department of Commerce (OEE), all
exports made by Teledyne Wah Chang under the authority of general
license G-NSG during the previous three months. The first such report
shall be provided to OEE on July 1, 1996 and shall cover any exports by
Teledyne Wah Chang under the authority of general license G-NSG between
March 1, 1996 and May 30, 1996. Subsequent reports shall be made to OEE
every three months thereafter. Each report shall include the following
information: the date of each general license G-NSG shipment made
during that quarter; the country of ultimate destination; the name and
address of the ultimate consignee; and a description of the
commodities, the quantity, and the value of the commodities included in
each shipment.
Third, the timely payment of the civil penalty set forth above is
hereby made a condition to the granting, restoration, or continuing
validity of any export license, permission, or privilege granted, or to
be granted, to Teledyne Wah Chang. Accordingly, if Teledyne Wah Chang
should fail to pay in a timely manner the civil penalty set forth
above, the undersigned will enter an Order denying all of Teledyne Wah
Chang's export privileges for a period of one year from the date of
entry of this Order.
Fourth, that the proposed Charging Letter, the Consent Agreement
and this Order shall be made available to the public. Copies of this
Order shall be served on Teledyne Wah Chang and published in the
Federal Register.
This Order, which constitutes the final agency action in this
matter, is effective immediately.
Entered this 26th day of January, 1995.
John Despres,
Assistant Secretary for Export Enforcement.
[FR Doc. 95-2635 Filed 2-2-95; 8:45 am]
BILLING CODE 3510-DT-M
