[Federal Register Volume 60, Number 153 (Wednesday, August 9, 1995)]
[Notices]
[Pages 40565-40566]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-19686]



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DEPARTMENT OF COMMERCE
Bureau of Export Administration
[Docket No. 5118-01]


Realtek Semi-Conductor Co. Ltd., 6F, No. 4 Fu-Shon Street, 
Taipei, Taiwan, Respondent; Decision and Order of Default

    On July 12, 1995, the Administrative Law Judge (ALJ) issued a 
Recommended Decision and Default Order in the above-captioned matter. 
The Recommended Decision and Default Order, a copy of which is attached 
hereto and made a 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 Realtek Semi-Conductor Co. Ltd. 
committed one violation of section 787.2 of the Regulations (EAR) by 
causing, aiding, or abetting the export in 1990 of U.S.-origin Trident 
TVGA 8800 and TVGA 8900 graphic chip technology from the United States 
to Taiwan without the written letter of assurance required by Section 
779.4 of the Regulations.
    The ALJ found that the appropriate penalty for the violations 
should be that the Respondent and all successors, assignees, officers, 
representatives, agents and employees be denied for a period of five 
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.


[[Page 40566]]

    Dated: August 3, 1995.
William A. Reinsch,
Under Secretary for Export Administration.

Recommended Decision and Default Order

    On March 31, 1995, the Office of Export Enforcement, Bureau of 
Export Administration, United States Department of Commerce 
(hereinafter, the ``Department''), issued a charging letter initiating 
an administrative proceeding against Realtek Semi-Conductor Co. Ltd. 
(hereinafter, ``Realtek''), a Taiwanese entity. The charging letter 
alleged that Realtek committed one violation of the Export 
Administration Regulations (currently codified at 15 C.F.R. Parts 768-
799 (1995)) (hereinafter, the ``Regulations''),\1\ issued pursuant to 
the Export Administration Act of 1979, as amended (currently codified 
at 50 U.S.C.A. app. Secs. 2401-2420 (1991, Supp. 1993, and Pub. L. No. 
103-277, July 5, 1994)) (hereinafter, the ``Act'').\2\

    \1\ The alleged violation occurred during 1990. The Regulations 
governing the violation are found in the 1990 version of the Code of 
Federal Regulations, codified at 15 C.F.R. Parts 768-799 (1990).
    \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. Secs. 1701-1706 (1991)).
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    Specifically, the charging letter alleged that, on or about April 
1, 1990, Realtek caused, aided, or abetted the export from the United 
States to Taiwan of U.S.-origin Trident TVGA 8800 and TVGA 8900 
technology without the written letter of assurance required by Section 
779.4 of the Regulations. Accordingly, the Department alleged that 
Realtek committed one violation of Section 787.2 of the Regulations.
    The charging letter was served on Realtek on April 12, 1995. 
Realtek failed to file an answer within 30 days after service pursuant 
to Section 788.7(a) of the Regulations. On June 5, 1995, I ordered the 
Department to file a proposed order together with any evidence in 
support of the allegation in the charging letter.
    On the basis of the Department's submission and all of the 
supporting evidence presented, I have determined that Realtek violated 
Section 787.2 of the Regulations by causing, aiding, or abetting the 
export from the United States to Taiwan of U.S.-origin Trident TVGA 
8800 and TVGA 8900 technology without the written letter of assurance 
required by Section 779.4 of the Regulations.
    The Department urges as a sanction that Realtek's export privileges 
be denied for a period of five years. I concur in the Department's 
recommendation.
    Accordingly, it is therefore ordered,
    First, that all outstanding individual validated licenses in which 
Realtek 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 Realtek'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, Realtek, with an address at 6F, No. 4 Fu-Shon Street, 
Taipei, Taiwan, and all successors, assigns, officers, representatives, 
agents, and employees, shall, for a period of five 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 of 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 Realtex 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 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 Exporter 
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 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 Realtek 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 788.23).

    Dated: July 12, 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 Avenue NW., 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 CFR 
788.23(b), 50 FR 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. 95-19686 Filed 8-8-95; 8:45 am]
BILLING CODE 3510-DT-M