[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