[Federal Register Volume 62, Number 119 (Friday, June 20, 1997)]
[Notices]
[Pages 33586-33587]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-16154]


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DEPARTMENT OF COMMERCE

Bureau of Export Administration


McNeil International, 10 Eglinton Circle, Edinburgh, Scotland 
EH12 5DE; Order Denying Permission to Apply For or Use Export Licenses

    On August 22, 1996, McNeil International was convicted in the 
United States District Court for the District of Massachusetts of 
violating the International Emergency Economic Powers Act (50 U.S.C.A. Secs.  
1701-1706 (1991 & Supp. 1997)) (IEEPA). McNeil International was 
convicted of knowingly and willfully exporting, reexporting, diverting, 
and transshipping computers and related equipment to Libya, in 
violation of the embargo against Libya.
    Section 11(h) of the Export Administration Act of 1979, as amended 
(50 U.S.C.A. app. Secs.  2401-2420 (1991 & Supp. 1997)) (the Act),\1\ 
provides that, at the discretion of the Secretary of Commerce,\2\ no 
person convicted of violating IEEPA, or certain other provisions of the 
United States Code, shall be eligible to apply for or use any license, 
including any License Exception, issued pursuant to, or provided by, 
the Act or the Export Administration Regulation (61 FR 12734-13041, 
March 25, 1996, to be codified at 15 CFR Parts 730-774) (the 
Regulations), for a period of up to 10 years from the date of the 
conviction. In addition, any license issued pursuant to the Act in 
which such a person had any interest at the time of conviction may be 
revoked.
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    \1\ 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 Export Administration 
Regulations in effect under IEEPA.
    \2\ Pursuant to appropriate delegations of authority, the 
Director, Office of Exporter Services, in consultation with the 
Director, Office of Export Enforcement, exercises the authority 
granted to the Secretary by Section 11(h) of the Act.
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    Pursuant to Sections 766.25 and 750.8(a) of the Regulations, upon 
notification that a person has been convicted of violating IEEPA, the 
Director, Office of Exporter Services, in consultation with the 
Director, Office of Export Enforcement, shall determine whether to deny 
that person permission to apply for or use any license, including any 
License Exception, issued pursuant to, or provided by, the Act and the 
Regulations, and shall also determine whether to revoke any license 
previously issued to such a person.
    Having received notice of McNeil International's conviction for 
violating IEEPA and following consultations with the Acting Director, 
Office of Export Enforcement, I have decided to deny McNeil 
International permission to apply for or use any license, including any 
License Exception, issued pursuant to, or provided by, the Act and the 
Regulations, for a period of 10 years from the date of this conviction. 
The 10-year period ends on August 22, 2006. I have also decided to 
revoke all licenses issued pursuant to the Act in which McNeil 
International had an interest at the time of its conviction.
    Accordingly, it is hereby

Ordered

    I. Until August 22, 2006, McNeil International, 10 Eglinton Circle, 
Edinburgh, Scotland EH12 5DE, may not, directly or indirectly, 
participate in any way, in any transaction involving any commodity, 
software or technology (hereinafter collectively referred to as

[[Page 33587]]

``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.
    II. 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. Obtained 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 which 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.
    III. After notice and opportunity for comment as provided in 
Section 766.23 of the Regulations, any person, firm, corporation, or 
business organization related to McNeil International by affiliation, 
ownership, control, or position of responsibility in the conduct of 
trade or related services may also be subject to the provisions of this 
Order.
    IV. 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-producted direct 
product of U.S.-origin technology.
    V. This Order is effective immediately and shall remain in effect 
until August 22, 2006.
    VI. A copy of this Order shall be delivered to McNeil 
International. This Order shall be published in the Federal Register.

    Dated: June 10, 1997.
Eileen M. Albanese,
Director, Office of Exporter Services.
[FR Doc. 97-16154 Filed 6-19-97; 8:45 am]
BILLING CODE 3510-DT-M