[Federal Register Volume 60, Number 180 (Monday, September 18, 1995)]
[Notices]
[Pages 48098-48099]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-23059]



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DEPARTMENT OF COMMERCE
Bureau of Export Administration
[Docket No. 2101-01]


In the Matter of: Francesco Grazi, Chez Pietro Grazi, V 
Cantonale, 6532 Castione, Ticino, Switzerland, Respondent; Final 
Decision and Order

    On August 22, 1995, the Administrative Law Judge (ALJ) entered his 
Recommended Decision and Order in the above-referenced matter. The 
Recommended Decision and Order, a copy of which is attached hereto and 
made a part hereof, has been referred to me for final action. The 
Respondent failed to respond to the charges in this matter. After 
describing the facts of the case and his findings based on those facts, 
the ALJ found that the Respondent, Francesco Grazi, on two separate 
occasions violated Section 787.2 of the Export Administration 
Regulations (EAR). The Respondent caused, aided, abetted, counselled, 
or induced a third party to reexport U.S.-origin commodities from 
Switzerland to Bulgaria, without obtaining the reexport authorization 
required by Section 774.1 of the EAR.
    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 fifteen 
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 Order of the Administrative Law Judge.
    This constitutes final agency action in this matter.

    Dated: September 4, 1995.
William A. Reinsch,
Under Secretary for Export Administration.
Recommended

    On January 14, 1992, the Office of Export Enforcement, Bureau of 
Export Administration, U.S. Department of Commerce (Department), issued 
a Charging Letter alleging that Francesco Grazi (Grazi) committed two 
violations of Section 787.2 of the Export Administration Regulations 
(currently codified at 15 C.F.R. Parts 768-799 (1995)) (the 
Regulations), issued pursuant to 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\ As established in the 
Status Report the Department filed in this matter on May 1, 1992, the 
Charging Letter was served on Grazi on or about April 21, 1992. Grazi 
has not answered or otherwise responded to the allegations set forth in 
the Charging Letter. On June 19, 1995, I issued an Order directing that 
the Department make its submission pursuant to Section 788.8 of the 
Regulations by August 18, 1995. In accordance with that Order, the 
Department made the submission required by Section 788.8 of the 
Regulations on August 18, 1995.

    \1\ The Act expired on August 20, 1994. Executive Order 12924 
(59 FR 43437, August 23, 1994) continued the Regulations in effect 
under the International Emergency Economic Powers Act (50 U.S.C. 
Secs. 1701-1706 (1991)).
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Background

    The January 14, 1992 Charging Letter alleges that, on two separate 
occasions, on or about January 14, 1987 and on or about May 8, 1987, 
Grazi caused, aided, abetted, counseled, or induced a third party to 
reexport U.S.-origin commodities from Switzerland to Bulgaria without 
first obtaining the reexport authorization required by Section 774.1 of 
the Regulations. Schedule A to the Charging Letter, which was attached 
thereto and incorporated by reference therein, identified the 
approximate date of reexport from Switzerland, the commodity involved, 
the Samata S.A. (Samata) Purchase Order number, the Air Waybill number 
for the export from the United States, and the Fincosid \2\ Order 
Number.

    \2\ At the time of the alleged violations, Grazi was the 
president of Fincosid SA, a Swiss company. A Charging Letter was 
also issued against Fincosid. On April 2, 1992, in responding to the 
Administrative Law Judge's March 4, 1992 Order, the Department 
advised the Administrative Law Judge that it had learned that 
Fincosid no longer exists and, therefore, withdrew the Charging 
Letter issued to Fincosid.
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Finding

    On the basis of the Department's submission and all of the 
supporting evidence presented, I have determined that Grazi committed 
the violations alleged in the Charging Letter issued against him on 
January 14, 1992.
    For those violations, the Department urges as a sanction that 
Grazi's export privileges be denied for 15 years. In light of the 
nature of the violations, I concur in the Department's recommendation.
    Accordingly, it is therefore ordered,
    First, that all outstanding individual validated licenses in which 
Grazi 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 Grazi'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, that Francesco Grazi, Chez Pietro Grazi, V Cantonale, 6532 
Castione, Ticino, Switzerland, and all of 

[[Page 48099]]
his successors, assigns, officers, representatives, agents, and 
employees, shall, for a period of 15 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 Section 
788.3(c) of the Regulations, any person, firm, corporation, or business 
organization related to the respondent 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 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 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 Grazi and the 
Department in accordance with section 778.16(b)(2) of the Regulations.
    Fourth, that this Order, is 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).

    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 
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.

    Dated: August 22, 1995.
Edward J. Kuhlmann,
Administrative Law Judge.
FR Doc. 95-23059 Filed 9-15-95; 8:45 am]
BILLING CODE 3510-DT-M