[Federal Register Volume 61, Number 143 (Wednesday, July 24, 1996)]
[Notices]
[Pages 38436-38437]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-18797]


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DEPARTMENT OF COMMERCE
Export Administration Bureau
[Docket Nos. AB3-95; AB2-95]


In the Matters of: Serfilco, Ltd. and Jack H. Berg, Respondents; 
Order Amending June 10, 1996 Order

    On June 10, 1996, I issued a Final Decision and Order (hereinafter, 
the ``Final Decision'') affirming the findings of the Administrative 
Law Judge (hereinafter, ``ALJ''), that Serfilco, Ltd. and the company's 
president, Jack H. Berg, each committed violations of the antiboycott 
provisions of the Export Administration Regulations (15 CFR 768-799 
(1996), as amended (61 FR 12714, March 25, 1996)) \1\ (hereinafter, the 
``Regulations''). In that Final Decision, I, inter alia, affirmed the 
ALJ's denial, for one year, of each Respondent's export privileges to 
Bahrain, Iraq, Kuwait, Lebanon, Libya, Oman, Qatar, Saudi Arabia, 
Syria, the United Arab Emirates, and the Republic of Yemen.
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    \1\ The March 25, 1996 Federal Register publication redesignated 
the existing Regulations as 15 CFR Parts 768A-799A. In addition, the 
March 25, 1996 Federal Register publication restructured and 
reorganized the Regulations, designating them as an interim rule at 
15 CFR Parts 730-774, effective April 24, 1996.
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    The Final Decision did not fully set forth the scope and breath of 
the denial of export privileges imposed on the Respondents. Pursuant to 
a motion filed by the Department requesting that I amend the Final 
Decision to include a recitation of the specific terms and conditions 
of the denials, I am issuing this Order which will clarify the manner 
in which the denials are to operate. The terms and conditions imposed 
by this Order are based on the Supplement No. 1 of Section 764 of the 
Regulations. Accordingly, the June 10, 1996 Final Decision is amended 
by adding the following after the last sentence of Section V of the 
decision:

Terms and Conditions of the Export Denials

    First, that until June 10, 1997, Serfilco, Ltd., 1777 Shermer Road, 
Northbrook, Illinois, 60062-5360, and Jack H. Berg, with an address at 
Serfilco, Ltd., 1777 Shermer Road, Northbrook, Illinois 60062-5360, 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 to Bahrain, Iraq, Kuwait, Lebanon, Libya, Oman, 
Qatar, Saudi Arabia, Syria, the United Arab Emirates, or the Republic 
of Yemen, 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,\2\ License 
Exception, or export control document;
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    \2\ For purposes of this Order, ``license'' includes any general 
license established in 15 CFR Parts 768A-799A.
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    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 States 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 or to be exported from the United States that is subject to 
the Regulations, or in any other activity subject to the Regulations.
    Second, that no person may, directly or indirectly, do any of the 
following:
    A. Export or reexport to or on behalf of either of the denied 
persons any item subject to the Regulations from the United States to 
Bahrain, Iraq, Kuwait, Lebanon, Libya, Oman, Qatar, Saudi Arabia, 
Syria, the United Arab Emirates, or the Republic of Yemen;
    B. Take any action that facilitates the acquisition or attempted 
acquisition by either of 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 to Bahrain, Iraq, 
Kuwait, Lebanon, Libya, Oman, Qatar, Saudi Arabia, Syria, the United 
Arab Emirates, or the Republic of Yemen, including financing or other 
support activities related to a transaction whereby a denied person 
acquires or attempts to acquire such ownership, possession, or control;
    C. Take any action to acquire from or to facilitate the acquisition 
or attempted acquisition from either of the denied persons of any item 
subject to the Regulations that has been exported from the United 
States to Bahrain, Iraq, Kuwait, Lebanon, Libya, Oman, Qatar, Saudi 
Arabia, Syria, the United Arab Emirates, or the Republic of Yemen;
    D. Obtain from either of 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 to Bahrain, Iraq, Kuwait, Lebanon, Libya, Oman, Qatar, Saudi 
Arabia, Syria, the United Arab Emirates, or the Republic of Yemen; 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 to 
Bahrain, Iraq, Kuwait, Lebanon, Libya, Oman, Qatar, Saudi Arabia, 
Syria, the United Arab Emirates, or the Republic of Yemen, and which is 
owned, possessed or controlled by a denied person, or service any item, 
of whatever origin, that is owned, possessed or controlled by either of 
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.
    Third, that, after notice and opportunity for comment as provided 
in Sec. 766.23 of the Regulation, any person, firm, corporation, or 
business organization related to either of the denied persons by 
affiliation, ownership, control, or position of responsibility in the 
conduct of trade or related services may also be made subject to the 
provisions of this Order.
    Fourth, that this Order does not prohibit any export, reexport, or 
other

[[Page 38437]]

transaction 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.
    Fifth, that a copy of this Order shall be served on the Department, 
Serfilco, Ltd., and Jack H. Berg, and published in the Federal 
Register.

    Entered this 17th day of July, 1996.
William A. Reinsch,
Under Secretary for Export Administration.
[FR Doc. 96-18797 Filed 7-23-96; 8:45 am]
BILLING CODE 3510-DT-M