[Federal Register Volume 62, Number 93 (Wednesday, May 14, 1997)]
[Notices]
[Pages 26471-26472]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-12573]


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DEPARTMENT OF COMMERCE

Bureau of Export Administration


Action Affecting Export Privileges; Thane-Coat, Inc., Jerry 
Vernon Ford, Preston John Engebretson, Export Materials, Inc. and 
Thane-Coat International, Ltd

    In the matters of: Thane-Coat, Inc., 12725 Royal Drive, 
Stafford, Texas 77477; Jerry Vernon Ford, President, Thane-Coat, 
Inc., 12725 Royal Drive, Stafford, Texas 77477, and with an address 
at 7707 Augustine Drive, Houston, Texas 77036; Preston John 
Engebretson, Vice-President, Thane-Coat, Inc., 12725 Royal Drive, 
Stafford, Texas 77477, and with an address at 8903 Bonhomme Road, 
Houston, Texas 77074; Export Materials, Inc., 3727 Greenbriar Drive, 
No. 108, Stafford, Texas 77477, and Thane-Coat International, Ltd., 
Suite C, Regent Centre, Explorers Way, P.O. Box F-40775, Freeport, 
The Bahamas, Respondents.

Order Temporarily Denying Export Privileges

    The Office of Export Enforcement, Bureau of Export Administration, 
United States Department of Commerce (hereinafter ``BXA''), pursuant to 
the provisions of Section 766.24 of the Export Administration 
Regulations (61 Federal Regulation 12734-13041, March 25, 1996, to be 
codified at 15 CFR Parts 730-774) (hereinafter the ``Regulations''), 
issued pursuant to the Export Administration Act of 1979, as amended 
(50 U.S.C.A. app. Sec. Sec. 2401-2420 (1991 & Supp. 1997) (hereinafter 
the ``Act''),\1\ has asked the Acting Assistant Secretary for Export 
Enforcement to issue an order temporarily denying all United States 
export privileges to Thane-Coat, Inc.; Jerry Vernon Ford, president, 
Thane-Coat, Inc.; Preston John Engebretson, vice-president, Thane-Coat, 
Inc.; Export Materials, Inc.; and Thane-Coat International, Ltd. 
(hereinafter collectively referred to as ``respondents'').
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    \1\ The Act expired on August 20, 1997. Executive Order 12924 (3 
CFR 1994 Comp. 917 (1995)), extended by Presidential Notices of 
August 15, 1995 (3 CFR, 1995 Comp. 501 (1996)) and August 14, 1996 
(61 Federal Regulations 42527, August 15, 1996), continued the 
Regulations in effect under the International Emergency Economic 
Powers Act (currently codified at 50 U.S.C.A. Sec. Sec. 1701-1706 
(1991 & Supp. 1997)).
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    In its request, BXA states that, as a result of an ongoing 
investigation, it has reason to believe that, during the period from 
approximately June 1994 through approximately July 1996, Thane-Coat, 
Inc., through Ford and Engebretson, and using its affiliated companies, 
Thane-Coat International, Ltd. and Export Materials, Inc., made 
approximately 100 shipments of U.S.-origin pipe coating materials, 
machines, and part to the Dong Ah Consortium in Benghazi, Libya. These 
items were for use in coating the internal surface of prestressed 
concrete cylinder pipe for the Government of Libya's Great Man-Made 
River Project. BXA's investigation gives it reason to believe that the 
respondents employed a scheme to export U.S.-origin products from the 
United States, through the United Kingdom or Italy, to Libya, a country 
subject to a comprehensive economic sanctions program, without the 
authorizations required under U.S. law and regulations, including the 
Regulations.
    In light of these events, BXA believes that the violations 
respondents are suspected of having committed were significant, 
deliberate and covert and are likely to occur again unless a temporary 
denial order naming respondents is issued. In addition, BXA believes 
that a temporary denial order is necessary to give notice to companies 
in the United States and abroad that they should cease dealing with 
respondents in export-related transactions involving U.S.-origin goods.
    Based on the showing made by BXA, I find that an order temporarily 
denying the export privileges of each respondent is necessary in the 
public interest to prevent an imminent violation of the Act and the 
Regulations and to give notice to companies in the United States and 
abroad to cease dealing with respondents in items subject to the Act 
and the Regulations, in order to reduce the substantial likelihood that 
respondents will continue to engage in activities that are in violation 
of the Act and the Regulations. This order is issued on an ex parte 
basis without a hearing, based on BXA's showing that expedited action 
is required.
    Accordingly, it is therefore ordered: First, that Thane-Coat, Inc. 
12725 Royal Drive, Stafford, Texas 77477, and all of its successors or 
assigns, and officers, representatives, agents, and employees when 
acting on its behalf; Jerry Vernon Ford, president, Thane-Coat, Inc., 
12725 Royal Drive, Stafford, Texas 77477, and with an address at 7707 
Augustine Drive, Houston, Texas 77036; Preston John Engebretson, vice-
president, Thane-Coat, Inc. 12725 Royal Drive, Stafford, Texas 77477, 
and with an address at 8903 Bonhomme Road, Houston, Texas 77074; Export 
Materials, Inc., 3727 Greenbriar Drive, No. 108, Stafford, Texas 77477, 
and all of its successors or assigns, and officers, representatives, 
agents, and employees when acting on its behalf; and Thane-Coat 
International, Ltd., Suite C, Regent Centre, Exployers Way, P.O. Box F-
40775, Freeport, The Banamas, and all of its successors or assigns, and 
officers, representatives, agents, and employees when acting on its 
behalf, 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, License 
Exception, or export control document;
    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 any of the denied persons 
any item subject to the Regulations;
    B. Take any action that facilitates the acquisition or attempted 
acquisition by any of the denied persons of the

[[Page 26472]]

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 any of the denied persons 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 any of the denied persons of any item 
subject to the Regulations that has been exported from the United 
States;
    D. Obtain from any 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; 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 
and which is owned, possessed or controlled by any of the denied 
persons, or service any item, of whatever origin, that is owned, 
possessed or controlled by any 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 Section 766.23 of the Regulations, any person, firm, corporation, or 
business organization related to any 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 transaction subject to the Regulations where the only items 
involved that are subject to the Regulations are foreign-produced 
direct product of U.S.-origin technology.
    Fifth, that, in accordance with the provisions of Section 766.24(e) 
of the Regulations, any respondent may, at any time, appeal this Order 
by filing with the Office of the Administrative Law Judge, U.S. Coast 
Guard ALJ Docketing Center, 40 South Gay Street, Baltimore, Maryland 
21202-4022, a full written statement in support of the appeal.
    Sixth, that this Order is effective immediately and shall remain in 
effect for 180 days.
    Seventh, that, in accordance with the provisions of Section 
766.24(d) of the Regulations, BXA may seek renewal of this Order by 
filing a written request not later than 20 days before the expiration 
date. Any respondent may oppose a request to renew this Order by filing 
a written submission with the Assistant Secretary for Export 
Enforcement, which must be received not later than seven days before 
the expiration date of this Order.
    A copy of this Order shall be served on each respondent. This Order 
shall be published in the Federal Register.

    Dated: May 5, 1997.
Frank Deliberti,
Acting Assistant Secretary for Export Enforcement.
[FR Doc. 97-12573 Filed 5-13-97; 8:45 am]
BILLING CODE 3510-DT-M