[Federal Register Volume 64, Number 82 (Thursday, April 29, 1999)]
[Notices]
[Pages 23049-23051]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-10739]
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DEPARTMENT OF COMMERCE
Bureau of Export Administration
Action Affecting Export Privileges; Export Materials, Inc. and
TIC Ltd.
In the matters of: Export Materials, Inc., 3727 Greenbrier
Drive, No. 108, Stafford, Texas 77477; and TIC Ltd., Suite C, Regent
Centre, Explorers Way, P.O. Box F-40775, Freeport, The Bahamas,
Respondents.
Decision and Order on Renewal of Temporary Denial Order
On October 23, 1998, I issued a Decision and Order on Renewal of
Temporary Denial Order (hereinafter ``Order'' or ``TDO''), renewing for
180 days a May 5, 1997 Order naming, inter alia, Export Materials, Inc.
and Thane-Coat International Ltd. (hereinafter collectively referred to
as the ``Respondents''), as persons temporarily denied all U.S. export
privileges. 63 FR 58706-58707 (November 2, 1998).\1\ The Order will
expire on April 21, 1999.
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\1\ The May 5, 1997 Order also named Thane-Coat, Inc.; Jerry
Vernon Ford, president, Thane-Coat, Inc.; and Preston John
Engebretson, vice-president, Thane-Coat, 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, Ford, and Engebretson in a ``non-standard'' format.
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On April 1, 1999, pursuant to Section 766.24 of the Export
Administration Regulations (15 CFR 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 TIC
Ltd.\3\ and
[[Page 23050]]
Export Materials, Inc. for an additional 180 days.
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\2\ The Act explored 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)), and August 13, 1998 (63 FR 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)).
\3\ In its initial request for the issuance of a TDO and its
October, 1997 and April, 1998 renewal requests, BXA identified this
company as Thane-Coat International, Ltd. The company is
incorporated in the Bahamas as TIC Ltd.
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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.\4\ Moreover, BXA's
investigation gave it reason to believe that the Respondents and the
affiliated parties 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 parties 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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\4\ BXA understands that the ultimate goal of this project is to
bring fresh water from wells drilled in southwest 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.\5\ BXA believes that a temporary denial order is necessary
to give notice to companies in the United States and abroad that they
should cease dealing with TIC Ltd. and Export Materials, Inc. in
export-related transactions involving U.S.-origin goods.
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\5\ On April 1, 1999, BXA requested that I renew the October 23,
1998 TDO against Thane-Coat, Inc., Jerry Vernon Ford, and Preston
John Engebretson in a ``non-standard'' format.
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Based on BXA's showing, I find that it is appropriate to renew the
order temporarily denying all U.S. export privileges of TIC Ltd. and
Export Materials, Inc. 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
exported or to be exported from the United States and subject to the
Export Administration Regulations, or in any other activity subject to
the Regulations. Moreover, I find such renewal is in the public
interest in order to reduce the substantial likelihood that TIC Ltd.
and Export Materials, Inc. will engage in activities which are in
violation of the Regulations.
Accordingly, it is therefore ordered:
First, that TIC Ltd., Suite C, Regent Centre, Explorers Way, P.O.
Box F-40775, Freeport, the Bahamas, and all of its successors or
assigns, officers, representatives, agents, and employees when acting
on its behalf, and Export Materials, Inc., 3727 Greenbriar Drive, No.
108, Stafford, Texas 77477, and all of its successors or assigns,
officers, representatives, agents, and employees when acting on its
behalf (hereinafter referred to collectively 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'') 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 any denied person any item
subject to the Regulations;
B. Take any action that facilitates the acquisition, or attempted
acquisition, by any 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 any 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 any denied person of any item
subject to the Regulations that has been exported from the United
States;
D. Obtain from any 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 which is owned, possessed or controlled by any denied person, or
service any item, of whatever origin, that is owned, possessed or
controlled by any 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 Section 766.23 of the Regulations, any person, firm, corporation, or
business organization related to any denied person by affiliation,
ownership, control, or position of responsibility in the conduct of
trade of related services, may also be made subject to the provisions
of the 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, in accordance with the provisions of Section 766.24(e)
of the Regulations, TIC Ltd. or Export Materials, Inc. 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.
Sixth, that this Order is effective immediately and shall remain in
effect for 180 days.
Seventh, 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 that 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
[[Page 23051]]
A copy of this Order shall be served on each Respondent and this
Order shall be published in the Federal Register.
Entered this 20th day of April 1999.
F. Amanda DeBusk,
Assistant Secretary for Export Enforcement.
[FR Doc. 99-10739 Filed 4-28-99; 8:45 am]
BILLING CODE 3510-DT-M
