[Federal Register Volume 62, Number 108 (Thursday, June 5, 1997)]
[Notices]
[Pages 30841-30842]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-14636]


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DEPARTMENT OF COMMERCE

Export Administration


Karl Cording; Decision and Order

    In the Matter of: Karl Cording, with Addresses at Anzstrasse 8, 
Windhoek, Namibia, A. Rosenthal (PTY) Ltd., P.O. Box 97, 292 
Independence Avenue, Windhoek, Namibia, A. Rosenthal (PTY) Ltd., 
P.O. Box 3721, 13 Loop Street, Cape Town, South Africa, and A. 
Rosenthal (PTY) Ltd., P.O. Box 44198, 65 7th Street, Denmyr 
Building, 2104 Linden, South Africa, Respondent.

Decision and Order

    On November 27, 1995, the Office of Export Enforcement, Bureau of 
Export Administration, United States Department of Commerce 
(hereinafter ``BXA''), issued a charging letter initiating an 
administrative proceeding against Karl Cording. The charging letter 
alleged that Cording committed seven violations of the Export 
Administration Regulations (61 FR 12734-13041, March 25, 1996, to be 
codified at 15 CFR parts 730-774) (hereinafter the ``Regulations''),\1\ 
issued pursuant to the Export Administration Act of 1979, as amended 
(50 U.S.C.A. app. 2401-2420 (1991 & Supp. 1997)) (hereinafter the 
``Act'').\2\
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    \1\ The violations at issue occurred between mid-1990 and early 
1992. The Regulations governing those violations are found in the 
1990, 1991, and 1992 versions of the Code of Federal Regulations (15 
CFR parts 768-799 (1990, 1991, and 1992)) and are referred to 
hereinafter as the former Regulations. Since that time, the 
Regulations have been reorganized and restructed; the restructured 
Regulations, to be codified at 15 CFR Parts730-774, establish the 
procedures that apply to the matters set forth in this Decision and 
Order.
    \2\ The Act expired on August 20, 1994. 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 FR 42527, August 15, 1996), continued the Regulations in effect 
under International Emergency Economic Powers Act (currently 
codified at 50 U.S.C.A. 1701-1706 (1991 & Supp. 1997)).
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    Specifically, the charging letter alleged that, between mid-1990 
and early 1992, Cording conspired with James L. Stephens, president and 
co-owner of Weisser's Sporting Goods, National City, California, and 
Ian Ace, manager of A. Rosenthal, Cape Town, South Africa, to export 
and, on two separate occasions, actually exported U.S.-origin shotguns, 
with barrel lengths 18 inches and over, to Namibia and South Africa, 
without applying for and obtaining from the Department the validated 
export licenses Cording knew or had reason to know were required under 
the Act and Regulations. In addition, BXA alleged that, in furtherance 
of the conspiracy, and in connection with each of those exports, 
Cording made false or misleading representations of material fact to a 
U.S. Government agency in connection with the preparation, submission, 
or use of export control documents. BXA alleged that, in so doing, 
Cording committed one violation of section 787.3(b), two violations of 
section 787.4(a), two violations of section 787.5(a), and two 
violations of section 787.6 of the former Regulations, for a total of 
seven violations of the former Regulations.
    The charging letter was served on Cording during December 1995. 
Cording failed to answer the charging letter. Thus, on April 18, 1997, 
pursuant to section 766.7 of the Regulations, BXA moved that the 
Administrative Law Judge find the facts to be as alleged in the 
charging letter and render a Recommended Decision and Order.
    Following BXA's motion, on May 1, 1997, Chief Administrative Law 
Judge Joseph A. Ingolio issued a Recommended Decision and Order in 
which he found the facts to be as alleged in the charging letter, and 
concluded that those facts constituted violations of the Act and 
Regulations, as BXA alleged. The Administrative Law Judge also 
concurred with BXA's recommendation that the appropriate penalty to be 
imposed for those violations is a denial, for a period of 20 years, of 
all of Cording's export privileges. As provided by section 766.22(a) of 
the Regulations, the Recommended Decision and Order has been referred 
to me for final action.
    Based on my review of the entire record, I affirm the findings of 
fact and conclusions of law in the Recommended Decision and Order of 
the Administrative Law Judge.
    Accordingly, it is therefore Ordered, First, that for a period of 
20 years from the date of this Order, Karl Cording, with an address at 
Anzstrasse 8, Windhoek, Namibia; with an address c/o A. Rosenthal (PTY) 
Ltd., P.O. Box 97, 292 Independence Avenue, Windhoek, Namibia; with an 
address c/o A. Rosenthal (PTY) Ltd., P.O. Box 3721, 13 Loop Street, 
Cape Town, South Africa; and with an address c/o A. Rosenthal (PTY) 
Ltd., P.O. Box 44198, 65 7th Street, Denmyr Building, 2104 Linden, 
South Africa, may not, directly or indirectly, participate in any way 
in any transaction involving any commodity, software or technology 
(hereinafter collectively referred to an ``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 the denied person any item 
subject to the Regulations;
    B. Take any action that facilitates the acquisition or attempted 
acquisition by a 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 a denied person acquires or 
attempts to acquire such ownership, possession or control;

[[Page 30842]]

    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 has been or will be exported from the United States 
and that is owned, possessed or controlled by a denied person, or 
service any item, of whatever origin, that is owned, possessed or 
controlled by a 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.
    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 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.
    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 the foreign-produced 
direct product of U.S.-origin technology.
    Fifth, that a copy of this Order shall be served on Cording and 
BXA, and shall be published in the Federal Register.
    This Decision and Order, which constitutes final agency action in 
this matter, is effective immediately.

    Dated: May 29, 1997.
William A. Reinsch,
Under Secretary for Export Administration.
[FR Doc. 97-14636 Filed 6-4-97; 8:45 am]
BILLING CODE 3510-DT-M