[Federal Register Volume 64, Number 144 (Wednesday, July 28, 1999)]
[Notices]
[Pages 40821-40822]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-19249]


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DEPARTMENT OF COMMERCE

Bureau of Export Administration
[Docket No. 98-BXA-08]


Action Affecting Export Privileges; Nancy Ann Harvey; Decision 
and Order

    In the Matter of: Nancy Ann Harvey, 4542 Indian Earth Court NE, 
Salem, Oregon 97305, Respondent.

    On August 3, 1998, the Office of Export Enforcement, Bureau of 
Export Administration, United States Department of Commerce (BXA), 
issued a charging letter initiating an administrative proceeding 
against Nancy Ann Harvey (formerly known as Nancy Ann Mahler (nee 
Reamer)) (Harvey). The charging letter alleged that Harvey committed 
three violations of the Export Administration Regulations (currently 
codified at 15 CFR Parts 730-774 (1999) (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. 1999)) (the Act).\2\
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    \1\ The violations at issue occurred in 1993. The Regulations 
governing those violations are found in the 1993 version of the Code 
of Federal Regulations (15 CFR Parts 768-799 (1993)) and are 
referred to hereinafter as the former Regulations. Since that time, 
the Regulations have been reorganized and restructured; the 
restructured Regulations establish the procedures that apply to his 
matter.
    \2\ The Act expired on August 20, 1994. Executive Order 12924 (3 
CFR 1994 Comp. 917 (1995)), extended by Presidential Notice 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 (CFR, 1998 Comp. 294 (1999)), continued 
the Regulations in effect under the International Emergency Economic 
Powers Act (50 U.S.C.A. Secs. 1701-1706 (1991 & Supp.1999)).
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    Specifically, the charging letter alleged that, on or about August 
4, 1993, Harvey exported U.S.-origin shotguns (with barrel lengths of 
18 inches and over) and shotgun shells to the Republic of South Africa, 
concealing them in a 40 foot container and representing on a bill of 
lading that the items in the container were ``used household goods and 
personal effect,'' without obtaining from BXA the validated export 
license Harvey knew or had reasons to know was required by Section 
772.1(b) of he former Regulations. BXA alleged that, by exporting U.S.-
origin commodities to any person or to any destination in violation or 
contrary to the provisions of the Act or any regulation, order or

[[Page 40822]]

license issued thereunder, Harvey violated Section 787.6 of the former 
Regulations. BXA also alleged that, by selling, transferring, or 
forwarding commodities export or to be exported from the United States 
with knowledge of reason to know that a violation of the Act, or any 
regulation, order or license issued thereunder occurred, was about to 
occur, or was intended to occur with respect to the shipment, Harvey 
violated Section 787.4(a) of the former Regulations.
    Further, the charging letter alleged that, in connection with the 
August 4, 1993 transaction, Harvey represented on a bill of lading, an 
export control document as defined in Section 770.2 of the former 
Regulations, that the container that she was shipping to the Republic 
of South Africa held ``used household goods and personal effects.'' In 
fact, the container also held shotguns (with barrel lengths of 18 
inches and over) and shotgun shells that she had concealed among the 
household items. BXA alleged that, by making false or misleading 
representations of material fact directly or indirectly to a United 
States government agency in connection with the preparation, submitted 
or use of an export control document, Harvey violated Section 787.5(a) 
of the former Regulations.
    BXA presented evidence that Harvey received the charging letter but 
failed to answer 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 he facts to be 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 constituted three violations of 
the former Regulations by Harvey, as BXA alleged. The ALJ also agreed 
with BXA's recommendation that the appropriate penalty to be imposed 
for those violations is a denial, for a period of three years, of all 
of Harvey'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, Nancy Ann Harvey, 4542 Indian Earth Court NE, Salem, Oregon, 
97305, 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 subjects 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 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 uses 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 provision 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 Harvey and on BXA, and 
shall be published in the Federal Register.
    This Order, which constitutes the final agency action in this 
matter, is effectively immediately.

    Dated: July 12, 1999.
William A. Reinsch,
Under Secretary for Export Administration.
[FR Doc. 99-19249 Filed 7-27-99; 8:45 am]
BILLING CODE 3510-DT-M