[Federal Register Volume 63, Number 40 (Monday, March 2, 1998)]
[Notices]
[Pages 10188-10189]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-5261]


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DEPARTMENT OF COMMERCE

Export Administration


Essam Alkadi; Export Privileges

    In the matter of: Essam Alkadi (also known as Essam Al-Kadi), 
P.O. Box 201, Damman 31411, Saudi Arabia; Respondent.

Decision and Order

    On May 16, 1997, 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 Essam Alkadi, also known as Essam Al-Kadi 
(hereinafter collectively referred to as (``Alkadi''). The charging 
letter alleged that Alkadi committed one violation of the Export 
Administration Regulations (currently codified at 15 C.F.R. Parts 730-
774 (1997)) (hereinafter the ``Regulations''),\1\ issued pursuant to 
the Export Administration Act of 1979, as amended (50 U.S.C.A. app. 
Secs. 2401-2420 (1991 & Supp. 1997)) (hereinafter the ``Act'').\2\ 
Specifically, the charging letter alleged that, on or about December 
17, 1993, Alkadi attempted to export a U.S.-origin shotgun from the 
United States to Saudi Arabia without obtaining from BXA the validated 
export license required by Section 772.1(b) of the former Regulations, 
in violation of Section 787.3(b) of the former Regulations.
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    \1\ The alleged violation occurred in 1993. The Regulations 
governing the violation at issue are found in the 1993 version of 
the Code of Federal Regulations (15 C.F.R. Parts 768-799 (1993)). 
Those Regulations define the violation that BXA alleges occurred, 
and are referred to hereinafter as the former Regulations. Since 
that time, the Regulations have been reorganized and restructured; 
the restructure Regulations, establish the procedures that apply to 
the matters set forth in this decisions and order.
    \2\ The Act expired on August 20, 1994. Executive Order 12924 (3 
C.F.R., 1994 Comp. 917 (1995)), extended by Presidential Notices of 
August 15, 1995 (3 C.F.R., 1995 Comp. 501 (1996)), August 14, 1996 
(3 C.F.R., 1996 Comp. 298 (1997)), and August 13, 1997 (62 Fed. Reg. 
43629, August 15, 1997), continued the Regulations in effect under 
the International Emergency Economic Powers Act (50 U.S.C.A. 
Secs. 1701-1706 (1991 & Supp. 1997)).
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    BXA presented evidence that it received a signed return receipt on 
August 19, 1997 indicating that the charging letter had been delivered. 
Because the receipt was returned from Saudi Arabia undated, however, 
BXA does not know the exact date of service. Under these circumstances, 
BXA designated August 19, 1997, the day BXA received the return 
receipt, as the date of service. Alkadi has failed to file an answer to 
the charging letter, as required by Section 766.7 of the Regulations, 
and is therefore in default. 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 one violation of the 
former Regulations by Alkadi, 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 three years, of all of 
Alkadi'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 three years from the date of this 
Order, Essam Alkadi, also known as Essam Al-Kadi, P.O. Box 201 Dammam 
31411, Saudi Arabia, 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

[[Page 10189]]

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 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 Alkadi 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: February 20, 1998.
William A. Reinsch,
Under Secretary for Export Administration.
[FR Doc. 98-5261 Filed 2-27-98; 8:45 am]
BILLING CODE 3510-DT-M