[Federal Register Volume 61, Number 203 (Friday, October 18, 1996)]
[Notices]
[Pages 54418-54419]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-26739]


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DEPARTMENT OF COMMERCE

Bureau of Export Administration


Action Affecting Export Privileges; Rodco International, Inc.

    In the Matter of: Rodco International, Inc., 1300 Patricia Drive 
#1403, San Antonio, Texas 78213, Respondent.

Order

    The Office of Export Enforcement, Bureau of Export Administration, 
United States Department of Commerce (BXA), having notified Rodco 
International, Inc. (Rodco) 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. 2401-
2420 (1991 & Supp. 1996)) (the Act),\1\ and the Export Administration 
Regulations (currently codified at 15 C.F.R. Parts 768-799 (1996), as 
amended (61 FR 12714 (March 25, 1996)) (the Regulations),\2\ based on 
allegations that, between on or about June 12, 1992 and on or about 
December 3, 1993, Rodco exported U.S.-origin chemicals from the United 
States to Mexico on 11 separate occasions without obtaining the 
validated licenses required by Section 772.1(b) of the Regulations; and
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    \1\ The Act expired on August 20, 1994. Executive Order 12924 (3 
C.F.R., 1994 Comp. 917 (1995)), extended by Presidential Notice of 
August 15, 1995 (60 FR 42767, August 17, 1995), and extended again 
on August 14, 1996 (61 FR 42527, August 15, 1996), continued the 
Regulations in effect under the International Emergency Economic 
Powers Act (50 U.S.C.A. 1701-1706 (1991 & Supp. 1996)).
    \2\ The March 25, 1996 Federal Register publication 
redesignated, but did not republish, the existing Regulations as 15 
C.F.R. Parts 768A-799A. In addition, the March 25 Federal Register 
publication restructured and reorganized the Regulations, 
designating them as an interim rule at 15 C.F.R. Parts 730-774, 
effective April 24, 1996.
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    BXA and Rodco having entered into a Settlement Agreement pursuant 
to Section 766.18(a) of the Regulations whereby they agreed to settle 
this matter in accordance with the terms and conditions set forth 
therein, and the terms of the Settlement Agreement having been approved 
by me;
    It Is Therefore Ordered
    First, that a civil penalty of $110,000 is assessed against Rodco, 
which shall be suspended in its entirely for a period of one year from 
the date of entry of this Order. Payment shall thereafter be waived, 
provided that, during the period of suspension, Rodco has committed no 
violation of the Act, or any regulation, order, or license issued 
thereunder.
    Second, that for a period of two years from the date of this Order, 
Rodco International, Inc., 1300 Patricia Drive, #1403, San Antonio, 
Texas 78213, and all of its successors or assigns, and all of its 
officers, representatives, agents, and employees when acting for or on 
behalf of Rodco, 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 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,\3\ License 
Exception, or export control document;
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    \3\ For purposes of this Order, ``license'' includes any general 
license established in 15 C.F.R. 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.
    Third, that no person may, directly or indirectly, do any of the 
following:
    A. Export or reexport to or on behalf of the denied person any item 
subject to the Regulations;
    B. Take any action that facilitates the acquisition or attempted 
acquisition by the denied person of the ownership, possession, or 
control of any item subject to the Regulations that has been or will be 
exported from the United States, including financing or other support 
activities related to a transaction whereby the 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 the denied person of any item subject to 
the Regulations that has been exported from the United States;
    D. Obtain from the denied person 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; or
    E. Engage in any transaction to service any item subject to the 
Regulations that

[[Page 54419]]

has been or will be exported from the United States and that is owned, 
possessed or controlled by the denied person, or service any item, of 
whatever origin, that is owned, possessed or controlled by the denied 
person 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.
    Fourth, that, after notice and opportunity for comment as provided 
in Sec. 766.23 of the Regulations, any person, firm, corporation, or 
business organization related to the denied person 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.
    Fifth, that this Order does not prohibit any export, reexport, or 
other 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.
    Sixth, that the proposed Charging Letter, the Settlement Agreement, 
and this Order shall be made available to the public. A copy of this 
Order shall be published in the Federal Register.
    This Order, which constitutes the final agency action in this 
matter, is effective immediately.

    Entered this 9th day of October 1996.
Frank W. Deliberti,
Acting Assistant Secretary for Export Enforcement.
[FR Doc. 96-26739 Filed 10-17-96; 8:45 am]
BILLING CODE 3510-DT-M