[Federal Register Volume 64, Number 61 (Wednesday, March 31, 1999)]
[Notices]
[Pages 15342-15343]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-7879]
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DEPARTMENT OF COMMERCE
Bureau of Export Administration
Order Denying Permission To Apply For or Use Export Licenses;
Action Affecting Export Privileges; A.V.S. Armoured Vehicles' Systems,
Inc., Now Known as S.P.O. Spare Parts Logistics, Inc.
In the matter of: A.V.S. ARMOURED VEHICLES' SYSTEMS, INC., now
known as S.P.L. SPARE PARTS LOGISTICS, INC. 1117 Old Country Road,
Plainview, New York 11803.
On April 10, 1995, following a plea of guilty to one count of an
information, A.V.S. Armoured Vehicles' Systems, Inc.\1\ was convicted
in the United States District Court for the Eastern District of New
York of violating Section 38 of the Arms Export Control Act (22
U.S.C.A.
[[Page 15343]]
Sec. 2778 (1990 & Supp. 1998)) (the AECA). A.V.S. Armoured Vehicles'
Systems, Inc. was convicted of knowingly and willfully making an untrue
statement of a material fact on an export control document to the U.S.
Department of State, Office of Defense Trade Control. Specifically,
A.V.S. Armoured Vehicles' Systems, Inc. stated that the foreign end-
user of replacement parts for the ``Hawk'' anti-aircraft missile system
was the Government of Israel, when the actual end-use was not the
Government of Israel.
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\1\ On September 27, 1993, A.V.S. Armoured Vehicles' Systems,
Inc. filed with the State of Delaware, Secretary of State, Division
of Corporations, a Certificate of Amendment of the Certificate of
Incorporation to change A.V.S. Armoured Vehicles' Systems, Inc's
name to S.P.L. Spare Parts Logistics, Inc.
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Section 11(h) of the Export Administration Act of 1979, as amended
(50 U.S.C.A. app. Secs. 2401-2420 (1991 & Supp. 1998)) (the Act,\2\
provides that, at the discretion of the Secretary of Commerce,\3\ no
person convicted of violating Section 38 of the AECA, 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 Regulations
(currently codified at 15 C.F.R. Parts 730-774 (1998)), (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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\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., Comp. 501 (1996)), August 14, 1996 (3
C.F.R., 1996 Comp. 298 (1997)), August 13, 1997 (3 C.F.R., 1997
Comp. 306 (1998)), and August 13, 1998 (63 FR 44121, August 17,
1998), continued the Export Administration Regulations in effect
under the International Emergency Economic Powers Act (50 U.S.C.A.
Secs. 1701-1706 (1991 & Supp. 1998)).
\3\ 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 Section 38
of the AECA, 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 A.V.S. Armoured Vehicles' Systems, Inc.'s
conviction for violating Section 38 of the AECA, and following
consultations with the Director, Office of Export Enforcement, I have
decided to deny A.V.S. Armoured Vehicles' Systems, Inc., now known as
S.P.P. Spare Parts Logistics, Inc., 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 five years
from the date of its conviction. The five-year period ends on April 10,
2000. I have also decided to revoke all licenses issued pursuant to the
Act in which A.V.S. Armoured Vehicles' Systems, Inc., now known as
S.P.L. Spare Parts Logistics, Inc., had an interest at the time of its
conviction.
Accordingly, it is hereby
Ordered
I. Until April 10, 2000, A.V.S. Armoured Vehicles' Systems, Inc.,
now known as S.P.L. Spare Parts Logistics, Inc., 1117 Old Country Road,
Plainview, New York 11803, 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.
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 facilities that 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;
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 which is owned; possessed of controlled by the denied person, or
service any item, of whatever origin, that is owned, possessed or
controlled by the denied person is 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 A.V.S. Armoured Vehicles's Systems,
Inc., now known as S.P.L. Spare Parts Logistics, Inc., 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, 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.
V. This Order is effective immediately and shall remain in effect
until April 10, 2000.
VI. A copy of this Order shall be delivered to A.V.S. Armoured
Vehicles' Systems, Inc., now known as S.P.L. Spare Parts Logistics,
Inc. This Order shall be published in the Federal Register.
Dated: March 23, 1999.
Eileen M. Albanese,
Director, Office of Exporter Services.
[FR Doc. 99-7879 Filed 3-30-99; 8:45 am]
BILLING CODE 3510-DT-M