[Federal Register Volume 64, Number 144 (Wednesday, July 28, 1999)]
[Notices]
[Pages 40816-40817]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-19250]


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DEPARTMENT OF COMMERCE

Bureau of Export Administration
[Docket Number 99-BXA-01]


Action Affecting Export Privileges; Fawzi Mustapha Assi; Decision 
and Order

    In the Matter of: Fawzi Mustapha Assi, 7706 Middlepoint Street, 
Dearborn, Michigan 48126, Respondent.

    On January 7, 1999, 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 Fawzi Mustapha Assi (hereinafter 
``Assi''). The charging letter alleged that Assi committed three 
violations of the Export Administration Regulations (currently codified 
at 15 CFR Parts 730-774 (1999)) (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. 1999)) (hereinafter the 
``Act'').\1\
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    \1\ The Act expired 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 (3 CFR, 1998 Comp. 294 (1999)), 
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. 1999)).
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    Specifically, the charging letter alleged that, on or about July 
13, 1998, Assi attempted to export from the United States to Lebanon a 
thermal imaging camera without the export license that he knew or had 
reason to know was required by Sections 742.4 and 742.6 of the 
Regulations. BXA alleged that, by attempting to violate the Act, the 
Regulations, or any order, license, or authorization issued thereunder, 
Assi violated Section 764.2(c) of the Regulations. BXA also alleged 
that, by selling, transferring, or forwarding commodities exported or 
to be exported from the United States with knowledge or reason to know 
that a violation of the Act, the Regulations, or any order, license, or 
authorization issued thereunder occurred, was about to occur, or was 
intended to occur with respect to the transaction, Assi violated 
Section 764.2(e) of the Regulations.
    Finally, BXA also alleged that, in connection with the attempted 
export described above, Assi failed to file with the U.S. Customs 
Service, at the time of the attempted export, the Shipper's Export 
Declaration (SED), an export control document as defined in Part 772 of 
the Regulations, required by Section 758.1(e) of the Regulations. BXA 
alleged that, by failing to file the SED, Assi concealed material facts 
from a United States agency for the purpose of or in connection with 
effecting an export from the United States, and, in so doing, violated 
Section 764.2(g) of the Regulations.
    Thus, BXA alleged that Assi committed one violation of Section 
764.2(c), one violation of Section 764.2(e), and one violation of 
Section 764.2(g), for a total of three violations of the Regulations.
    BXA presented evidence that the charging letter was served on Assi 
in accordance with Section 766.3 of the Regulations but that he failed 
to answer it, as required by 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 in 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 
Section 764.2(c), one violation of Section 764.2(e), and one violation 
of Section 764.2(g), for a total of three violations of the Regulations 
by Assi, 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 20 years, of all of Assi'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,

[[Page 40817]]

    First, that, for a period of 20 years from the date of this Order, 
Fawzi Mustapha Assi, 7706 Middlepoint Street, Dearborn, Michigan 48126, 
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 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 facilities 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 Assi 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: July 12, 1999.
William A. Reinsch,
Under Secretary for Export Administration.
[FR Doc. 99-19250 Filed 7-27-99; 8:45 am]
BILLING CODE 3510-DT-M