[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