[Federal Register Volume 62, Number 108 (Thursday, June 5, 1997)]
[Notices]
[Pages 30842-30843]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-14648]


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DEPARTMENT OF COMMERCE

Export Administration


Pan Asia Exim Enterprises PTE Limited; Decision and Order

    In the Matter of: Pan Asia Exim Enterprises PTE Limited, 108 
Tagore Lane, Singapore 2678, Respondent.

    On March 5, 1996, 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 Pan Asia Exim Enterprises PTE Limited 
(hereinafter ``Pan Asia''). The charging letter alleged that Pan Asia 
committed one violation 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 violation at issue occurred in 1993. The Regulations 
governing the violation are found in the 1993 version of the Code of 
Federal Regulations (15 CFR parts 768-799 (1993)) and are referred 
to hereinafter as the former Regulations. Since that time, the 
Regulations have been reorganized and restructured; the restructured 
Regulations, to be codified at 15 CFR parts 730-774, 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 the International Emergency Economic Powers Act (50 U.S.C.A. 
Secs. 1701-1706 (1996 & Supp. 1997)).
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    Specifically, the charging letter alleged that, on or about April 
22, 1993, Pan Asia reexported U.S.-origin spare parts for small 4HP to 
12HP engines from Singapore to Vietnam without obtaining from BXA the 
reexport authorization required by section 774.1(a) of the former 
Regulations. BXA alleged that, by reexporting commodities to any person 
or destination in violation of or contrary to the terms of the Act, or 
any regulation, order, or license issued thereunder, Pan Asia committed 
one violation of Section 787.6 of the former Regulations.
    The charging letter was served on Pan Asia on March 15, 1996. Pan 
Asia failed to answer the charging letter within 30 days of service of 
the charging letter, as required by section 788.7 of the former 
Regulations. Thus, pursuant to section 766.7 of the Regulations, BXA 
moved that the Administrative Law Judge (hereinafter the ``ALJ'') find 
the facts to be as alleged in the charging letter and render a 
Recommended Decision and Order.
    Following BXA's motion, the ALJ 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 constitute a violation of the 
former Regulations by Pan Asia, as BXA alleged. The ALJ also agreed 
with BXA's recommendation that the appropriate penalty to be imposed 
for that violation is a denial, for a period of two years, of all of 
Pan Asia's export privileges. As provided by section 766.22 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 ALJ.
    Accordingly, it is therefore Ordered,
    First, That, for a period of two years from the date of this Order, 
Pan Asia Exim Enterprises PTE Limited, 108 Tagore Lane, Singapore 2678, 
and all its successors, assignees, officers, representatives, agents 
and employees, whenever acting within the scope of their employment 
with Pan Asia, 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 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

[[Page 30843]]

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 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.
    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 this order shall be served on Pan Asia and on BXA, and 
shall be published in the Federal Register.
    This Order, which constitutes the final agency action in this 
matter, is effective immediately.

    Dated: May 29, 1997.
William A. Reinsch,
Under Secretary for Export Administration.
[FR Doc. 97-14648 Filed 6-4-97; 8:45 am]
BILLING CODE 3510-DT-M