[Federal Register Volume 60, Number 137 (Tuesday, July 18, 1995)]
[Notices]
[Pages 36774-36775]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-17575]



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DEPARTMENT OF COMMERCE

Bureau of Export Administration


Hubert Maassen, Individually and Doing Business as HM-EDV With an 
address at: Hirmerweg 4, D800 Munich, Federal Republic of Germany 
Respondents; Decision and Order

[Docket Nos. 3105-01; 3105-02]
    On June 27, 1995, the Administrative Law Judge (ALJ) entered his 
Recommended Decision and Default Order in the above-referenced matter. 
The Recommended Decision and Default Order, a copy of which is attached 
hereto and made 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 Respondents on three separate occasions 
violated Sec. 787.6 of the Export Administration Regulations (EAR) by 
reexporting from the Federal Republic of Germany through Austria to 
Hungary U.S.-origin computer equipment without obtaining the required 
reexport authorization from the Department of Commerce. The ALJ further 
found that the Respondents violated Sec. 787.5(a) of the EAR by 
indirectly making a false or misleading representation concerning the 
ultimate destination of U.S.-computer equipment in connection with the 
preparation, submission, or use of an export license application.
    The ALJ found that the appropriate penalty for the violations 
should be that the Respondents and all successors, assignees, officers, 
representatives, agents and employees be denied for a period of twenty 
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 Default Order of the Administrative Law Judge.
    This constitutes final agency action in this matter.

    Dated: July 12, 1995.
William A. Reinsch,
Under Secretary for Export Administration.

Recommended Decision and Default Order

    On May 4, 1993, the Office of Export Enforcement, Bureau of Export 
Administration, United States Department of Commerce (Department), 
issued a charging letter initiating administrative proceedings against 
Hubert Maassen, individually and doing business as HM-EDV (collectively 
referred to hereinafter as Maassen). The charging letter alleged that 
Maassen committed four violations of the Export Administration 
Regulations (currently codified at 15 CFR parts 768-799 (1995)) (the 
Regulations),\1\ issued pursuant to the Export Administration Act of 
1979, as amended (currently codified at 50 U.S.C.A. app. 
Sec. Sec. 2401-2420 (1991, Supp. 1993, and Pub. L. No. 103-277, July 5, 
1994) (the Act).\2\

    \1\ The alleged violations occurred during 1988 and 1989. The 
Regulations governing the violations at issue are found in the 1988 
version of the Code of Federal Regulations, codified at 15 CFR Parts 
368-399 (1988), and the 1989 version of the Code of Federal 
Regulations, codified at 15 CFR Parts 768-799 (1989). Effective 
October 1, 1988, the Regulations were redesignated as 15 CFR Parts 
768-799 (53 FR 37751, September 28, 1988). The redesignation merely 
changed the first number of each part from ``3'' to ``7.''
    \2\ The Act expired on August 20, 1994. Executive Order 12924 
(59 Fed. Reg. 43437, August 23, 1994) continued the Regulations in 
effect under the International Emergency Economic Powers Act (50 
U.S.C.A. Sec. Sec. 1701-1706 (1991)).
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    Specifically, the charging letter alleged that Maassen, on three 
separate occasions, reexported from the then-Federal Republic of 
Germany through Austria to Hungary U.S.-origin computer equipment, 
without obtaining from the Department the reexport authorization 
required by Sec. 774.1 of the Regulations. The charging letter further 
alleged that Maassen indirectly made a false or misleading 
representation concerning the ultimate destination of U.S.-origin 
computer equipment, a material fact, in connection with the 
preparation, submission, or use of an export license application, an 
export control document. Accordingly, the Department alleged that 
Maassen committed three violations of Sec. 787.6 and one violation of 
Sec. 787.5(a) of the Regulations.
    On May 26, 1995, in light of the fact that Maassen had not answered 
the 

[[Page 36775]]
charging letter in accordance with the requirements of Sec. 787.7 of 
the Regulations, I ordered the Department to file a default submission, 
together with supporting evidence for the allegations made, by June 26, 
1995.
    On the basis of the Department's submission and all of the 
supporting evidence presented, I have determined that Maassen violated 
Sec. 787.6 and 787.5(a) of the Regulations by reexporting from the FRG 
through Austria to Hungary U.S.-origin computer equipment without 
obtaining from the Department the reexport authorization required by 
Sec. 774.1 of the Regulations, and by indirectly making a false or 
misleading representation concerning the ultimate destination of U.S.-
origin computer equipment, a material fact, in connection with the 
preparation, submission, or use of an export license application, an 
export control document, as the Department alleges.
    For those violations, the Department urges as a sanction that 
Maassen's export privileges be denied for 20 years. I concur in the 
Department's recommendation.
    Accordingly, it is therefore ordered, First, that all outstanding 
individual validated licenses in which Hubert Maassen, individually and 
doing business as HM-EDV, 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 Maassen's 
privileges of participating, in any manner or capacity, in any special 
licensing procedure, including, but not limited to, distribution 
licenses, are hereby revoked.
    Second, Hubert Maassen, individually and doing business as HM-EDV, 
with an address at Hirmerweg 4, D8000 Munich, Federal Republic of 
Germany (collectively referred to hereinafter as Maassen), and all 
successors, assigns, officers, representatives, agents, and employees, 
shall, for a period of 20 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 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 
Sec. 788.3(c) of the Regulations, any person, firm, corporation, or 
business organization related to Maassen 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 Sec. 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 of 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 Maassen 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. 
Sec. 2412(c)(1)) and the Regulations (15 CFR Sec. 788.23).

    Dated: June 27, 1995.
Edward J. Kuhlmann,
Administrative Law Judge.

    To be considered in the 30 day statutory review process which is 
mandated by Section 13(c) of the Act, submissions must be received in 
the Office of the Under Secretary for Export Administration, U.S. 
Department of Commerce, 14th & Constitution Ave., N.W., Room 3898B, 
Washington, D.C., 20230, within 12 days. Replies to the other party's 
submission are to be made within the following 8 days. 15 C.F.R. 
Sec. 788.23(b), 50 Fed. Reg. 53134 (1985). Pursuant to Section 13(c)(3) 
of the Act, the order of the final order of the Under Secretary may be 
appealed to the U.S. Court of Appeals for the District of Columbia 
within 15 days of its issuance.

[FR Doc. 95-17575 Filed 7-17-95; 8:45 am]
BILLING CODE 3510-DT-M