[Federal Register Volume 64, Number 82 (Thursday, April 29, 1999)]
[Notices]
[Pages 23049-23051]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-10739]


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DEPARTMENT OF COMMERCE

Bureau of Export Administration


Action Affecting Export Privileges; Export Materials, Inc. and 
TIC Ltd.

    In the matters of: Export Materials, Inc., 3727 Greenbrier 
Drive, No. 108, Stafford, Texas 77477; and TIC Ltd., Suite C, Regent 
Centre, Explorers Way, P.O. Box F-40775, Freeport, The Bahamas, 
Respondents.

Decision and Order on Renewal of Temporary Denial Order

    On October 23, 1998, I issued a Decision and Order on Renewal of 
Temporary Denial Order (hereinafter ``Order'' or ``TDO''), renewing for 
180 days a May 5, 1997 Order naming, inter alia, Export Materials, Inc. 
and Thane-Coat International Ltd. (hereinafter collectively referred to 
as the ``Respondents''), as persons temporarily denied all U.S. export 
privileges. 63 FR 58706-58707 (November 2, 1998).\1\ The Order will 
expire on April 21, 1999.
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    \1\ The May 5, 1997 Order also named Thane-Coat, Inc.; Jerry 
Vernon Ford, president, Thane-Coat, Inc.; and Preston John 
Engebretson, vice-president, Thane-Coat, Inc., as persons 
temporarily denied all U.S. export privileges. I am issuing a 
separate Decision and Order today renewing the TDO against Thane-
Coat, Ford, and Engebretson in a ``non-standard'' format.
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    On April 1, 1999, pursuant to Section 766.24 of the Export 
Administration Regulations (15 CFR Parts 730-774 (1998)) (hereinafter 
the ``Regulations''), issued pursuant to the Export Administration Act 
of 1979, as amended (50 U.S.C.A. app. Secs. 2401-2420 (1991 & Supp. 
1998)) (hereinafter the ``Act''),\2\ the Office of Export Enforcement, 
Bureau of Export Administration, United States Department of Commerce 
(hereinafter ``BXA''), requested that I renew the Order against TIC 
Ltd.\3\ and

[[Page 23050]]

Export Materials, Inc. for an additional 180 days.
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    \2\ The Act explored 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)), August 14, 1996 (3 
CFR, 1996 Comp. 298 (1997)), August 13, 1997 (3 CFR, 1997 Comp. 306 
(1998)), and August 13, 1998 (63 FR 44121, August 17, 1998, 
continued the Regulations in effect under the International 
Emergency Economic Powers Act (currently codified at 50 U.S.C.A 
Secs. 1701-1706 (1991 & Supp. 1998)).
    \3\ In its initial request for the issuance of a TDO and its 
October, 1997 and April, 1998 renewal requests, BXA identified this 
company as Thane-Coat International, Ltd. The company is 
incorporated in the Bahamas as TIC Ltd.
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    In its request, BXA stated that, as a result of an ongoing 
investigation, it had reason to believe that, during the period from 
approximately June 1994 through approximately July 1996, Thane-Coat, 
Inc., through Ford and Engebretson, and using its affiliated companies, 
TIC Ltd. and Export Materials, Inc., made approximately 100 shipments 
of U.S.-origin pipe coating materials, machines, and parts to the Dong 
Ah Consortium in Benghazi, Libya. These items were for use in coating 
the internal surface of prestressed concrete cylinder pipe for the 
Government of Libya's Great Man-Made River Project.\4\ Moreover, BXA's 
investigation gave it reason to believe that the Respondents and the 
affiliated parties employed a scheme to export U.S.-origin products 
from the United States, through the United Kingdom, to Libya, a country 
subject to a comprehensive economic sanctions program, without the 
authorizations required under U.S. law, including the Regulations. The 
approximate value of the 100 shipments at issue was $35 million. In 
addition, the Respondents and the affiliated parties undertook several 
significant and affirmative actions in connection with the solicitation 
of business on another phase of the Great Man-Made River Project.
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    \4\ BXA understands that the ultimate goal of this project is to 
bring fresh water from wells drilled in southwest and southwest 
Libya through prestressed concrete cylinder pipe to the coastal 
cities of Libya. This multibillion dollar, multiphase engineering 
endeavor is being performed by the Dong Ah Construction Company of 
Seoul, South Korea.
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    BXA has stated that it believes that the matters under 
investigation and the information obtained to date in that 
investigation support renewal of the TDO issued against the 
Respondents.\5\ BXA believes that a temporary denial order is necessary 
to give notice to companies in the United States and abroad that they 
should cease dealing with TIC Ltd. and Export Materials, Inc. in 
export-related transactions involving U.S.-origin goods.
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    \5\ On April 1, 1999, BXA requested that I renew the October 23, 
1998 TDO against Thane-Coat, Inc., Jerry Vernon Ford, and Preston 
John Engebretson in a ``non-standard'' format.
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    Based on BXA's showing, I find that it is appropriate to renew the 
order temporarily denying all U.S. export privileges of TIC Ltd. and 
Export Materials, Inc. I find that such renewal is necessary in the 
public interest to prevent an imminent violation of the Regulations and 
to give notice to companies in the United States and abroad to cease 
dealing with these persons in any commodity, software, or technology 
exported or to be exported from the United States and subject to the 
Export Administration Regulations, or in any other activity subject to 
the Regulations. Moreover, I find such renewal is in the public 
interest in order to reduce the substantial likelihood that TIC Ltd. 
and Export Materials, Inc. will engage in activities which are in 
violation of the Regulations.
    Accordingly, it is therefore ordered:
    First, that TIC Ltd., Suite C, Regent Centre, Explorers Way, P.O. 
Box F-40775, Freeport, the Bahamas, and all of its successors or 
assigns, officers, representatives, agents, and employees when acting 
on its behalf, and Export Materials, Inc., 3727 Greenbriar Drive, No. 
108, Stafford, Texas 77477, and all of its successors or assigns, 
officers, representatives, agents, and employees when acting on its 
behalf (hereinafter referred to collectively as the ``denied 
persons''), 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 any denied person any item 
subject to the Regulations;
    B. Take any action that facilitates the acquisition, or attempted 
acquisition, by any 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 any 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 any denied person of any item 
subject to the Regulations that has been exported from the United 
States;
    D. Obtain from any 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 any denied person, or 
service any item, of whatever origin, that is owned, possessed or 
controlled by any 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 any denied person by affiliation, 
ownership, control, or position of responsibility in the conduct of 
trade of related services, may also be made subject to the provisions 
of the 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, in accordance with the provisions of Section 766.24(e) 
of the Regulations, TIC Ltd. or Export Materials, Inc. may, at any 
time, appeal this Order by filing a full written statement in support 
of the appeal with the Office of the Administrative Law Judge, U.S. 
Coast Guard ALJ Docketing Center, 40 South Gay Street, Baltimore, 
Maryland 21202-4022.
    Sixth, that this Order is effective immediately and shall remain in 
effect for 180 days.
    Seventh, that, in accordance with the provisions of Section 
766.24(d) of the Regulations, BXA may seek renewal of this Order by 
filing a written request not later that 20 days before the expiration 
date. Any respondent may oppose a request to renew this Order by filing 
a written submission with the Assistant Secretary for Export 
Enforcement, which must be received not later than seven days before 
the expiration date of the Order

[[Page 23051]]

    A copy of this Order shall be served on each Respondent and this 
Order shall be published in the Federal Register.

    Entered this 20th day of April 1999.
F. Amanda DeBusk,
Assistant Secretary for Export Enforcement.
[FR Doc. 99-10739 Filed 4-28-99; 8:45 am]
BILLING CODE 3510-DT-M