[Federal Register Volume 64, Number 87 (Thursday, May 6, 1999)]
[Notices]
[Pages 24320-24321]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-11416]
[[Page 24320]]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
Bureau of Export Administration
Action Affecting Export Privileges; William F. McNeil and
American Protection Corporation; Order Denying Permission to Related
Persons To Apply for or Use Export Licenses
William F. McNeil, 5 Woodland Road,
Pittsfield, Massachusetts 01201, and American Protection
Corporation, 5 Woodland Road, Pittsfield,
Massachusetts 01201, and with a mailing address at P.O. Box 4227,
Pittsfield, Massachusetts 01202-4227
On November 3, 1997, the Director, Office of Exporter Services
Bureau of Export Administration, U.S. Department of Commerce, issued an
Order denying William F. McNeil's (McNeil) export privileges until
August 8, 2001 (62 FR 61269, November 17, 1997). The Order was based on
McNeil August 8, 1996 conviction for violating the International
Emergency Economic Powers Act (currently codified at 50 U.S.C.A. 1701-
1706 (1991 & Supp. 1998)) (IEEPA), and was issued pursuant to Section
11(h) of the Export Administration Act of 1979, as amended (currently
codified at 50 U.S.C.A. app. 2401-2490 (1991 & Supp. 1998)) (the Act),
\1\ and Sections 766.25 and 750.8(a) of the Export Administration
Regulations (15 CFR parts 730-774) (1998)) (the Regulations). Section
11(h)(2) of the Act provides that any person related, through
affiliation, ownership, control, or position of responsibility, to a
person who has been denied export privileges as a result of a
conviction for violating IEEPA, may, at the discretion of the Secretary
of Commerce,\2\ be denied export privileges as well.
---------------------------------------------------------------------------
\1\ 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)) and August 13, 1998 (63 FR 44121, August 17, 1998),
continued the Export Administration Regulations in effect under
IEEPA.
\2\ Pursuant to appropriate delegations of authority, the
Director, Office of Exporter Services, in consultation with the
Director, Office of Export Enforcement, exercises the authority
granted to the Secretary by Section 11(h) of the Act.
---------------------------------------------------------------------------
On March 31, 1998, American Protection Corporation was notified,
pursuant to Section 766.23 of the Regulations, that the Bureau of
Export Administration, U.S. Department of Commerce, has reason to
believe that it is related to William McNeil through ownership,
control, position of responsibility, affiliation, or other connection
in the conduct of trade or business, and that the order issued against
McNeil should, in order to prevent evasion, also be made applicable to
American Protection Corporation.
American Protection Corporation responded to BXA's notice on April
6, 1998 by letter signed by McNeil. McNeil stated in the letter that he
is the sole owner and only permanent employee of American Protection
Corporation. McNeil also stated that American Protection Corporation
has not exported any goods since the denial order against him was
issued on November 3, 1997, and that it will not export any goods until
the denial order is lifted. This unsupported statement by McNeil is not
sufficient, however, to ensure that American Protection Corporation
will not be used to evade the order denying McNeil's export privileges.
McNeil still is sole owner of American Protection Corporation, and
absent a related person order, he could easily use American Protection
Corporation to export to his benefit, thereby evading the terms of the
order against him.
Therefore, I hereby find that American Protection Corporation is
related to William F. McNeil, a person denied all U.S. export
privileges until August 8, 2001, through ownership, control, position
of responsibility, affiliation, or other connection in the conduct of
trade or business, and that, in order to prevent evasion, the denial
order against McNeil issued on November 3, 1997, should also be made
applicable to American Protection Corporation.
Accordingly, the Order of November 3, 1997, denying McNeil
permission to apply for or use any export license, including any
License Exception, is hereby amended to read as follows:
It is ordered:
I. Until August 8, 2001, William F. McNeil, #5 Woodland Road,
Pittsfield, Massachusetts 01201, and American Protection Corporation,
#5 Woodland Road, Pittsfield, Massachusetts 01201, and with a mailing
address at P.O. Box 4227, Pittsfield, Massachusetts 01202-4227, 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 Stats 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 to be exported from the United States that is subject to the
Regulations, or in any other activity subject to the Regulations.
II. No person may, directly or indirectly, do any of the following:
A. Export or reexport to or on behalf of the denied persons any
item subject to the Regulations;
B. Take any action that facilitates the acquisition or attempted
acquisition by 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, including financing or other support
activities related to transaction whereby the denied persons acquire or
attempt 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 persons of any item subject to
the Regulations that has been exported from the United States;
D. Obtain from 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; 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 persons, or
service any item, of whatever origin, that is owned, possessed or
controlled by 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. For purposes of this paragraph, servicing means
installation, maintenance, repair, modification or testing.
III. After notice and opportunity for comment as provided in
Section 766.23 of the Regulations, any person, firm, corporation, or
business organization related to McNeil or to American Protection
Corporation 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.
IV. This Order does not prohibit any export, reexport, or other
transaction
[[Page 24321]]
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.
V. This Order is effective immediately and shall remain in effect
until August 8, 2001.
VI. A copy of this Order shall be delivered to McNeil and to
American Protection Corporation. This Order shall be published in the
Federal Register.
Dated: April 27, 1999.
Eileen M. Albanese,
Director, Office of Exporter Services.
[FR Doc. 99-11416 Filed 5-5-99; 8:45 am]
BILLING CODE 3510-DT-M
