[Federal Register Volume 66, Number 71 (Thursday, April 12, 2001)]
[Notices]
[Pages 18898-18899]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-9079]


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DEPARTMENT OF COMMERCE

Bureau of Export Administration


Action Affecting Export Privileges; George K. Cheng

In the Matter of: George K. Cheng currently incarcerated at: Inmate 
Registration No: 489-40--053, Allenwood Low FCI, White Deer, 
Pennsylvania 17887, and with an address at: 9 Judith Drive, 
Greenlawn, New York 11550.

Order Denying Export Privileges

    On February 23, 1999, George K. Cheng (Cheng) was convicted in the 
United States District Court for the District of Oregon of violating 
section 38 of the Arm Export Control Act (22 U.S.C.A. section 2778 
(1990 & Supp. 2000)) (the AECA). Specifically, Cheng was convicted of 
knowingly and willfully exporting from the United States to the 
People's Republic of China items which were designated as defense 
articles on the United States Munitions List, without first obtaining 
the required licenses or written approval from the Department of State, 
Office of Defense Trade Controls.
    Section 11(h) of the Export Administration Act 1979, as amended 
(currently codified at 50 U.S.C.A. app. sections 2401-2420 (1991 & 
Supp. 200) and Public Law 106-508) (the Act) \1\ provides that, at the 
discretion of the Secretary of Commerce,\2\ no person

[[Page 18899]]

convicted of violating the AECA, or certain other provisions of the 
United States Code, shall be eligible to apply for or use any export 
license issued pursuant to, or provided by, the Act or the Export 
Administration Regulations (currently codified at 15 C.F.R. parts 730-
774 (2000), as amended (65 FR 14862, March 20, 2000)) (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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    \1\ The Act expired on August 20, 1994. Executive Order 12924 (3 
C.F.R., 1994 Comp. 917 (1995)), which had been extended by 
successive Presidential Notice, the most recent being that of August 
3, 2000 (65 Federal Register 48347, August 8, 2000), continued the 
Regulations in effect under the International Emergency Economic 
Powers Act (50 U.S.C.A. sections 1701-1706 (1991 & Supp. 2000)) 
until November 13, 2000 when the Act was reauthorized see Public Law 
106-508.
    \2\ Pursuant to appropriate delegations of authority that are 
reflected in the Regulations, 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 the AECA, 
the Director, Office of Exporter Services, in consultation with the 
Director, Office of Export Enforcement, shall determine whether to deny 
that person's export privileges for a period of up to 10 years from the 
date of conviction and shall also determine whether to revoke any 
license previously issued to such a person.
    Having received notice of Cheng's conviction for violating the 
AECA, and after providing notice and an opportunity for Cheng to make a 
written submission to the Bureau of Export Administration before 
issuing an Order denying his export privileges, as provided in Section 
766.25 of the Regulations, I, following consultations with the 
Director, Office of Export Enforcement, have decided to deny Cheng's 
export privileges for a period of 10 years from the date of his 
conviction. The 10-year period ends on February 23, 2009. I have also 
decided to revoke all licenses issued pursuant to the Act in which 
Cheng had an interest at the time of his conviction.
    Accordingly, it is hereby

Ordered

    I. Until February 23, 2009, George K. Cheng, currently incarcerated 
at: Inmate Registration No: 489-40-053, Allenwood Low FCI, White Deer, 
Pennsylvania 17887, and with an address at: 9 Judith Drive, Greenlawn, 
New York 11550, 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 or to 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 which 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 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 Cheng 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, 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.
    VI. In accordance with Part 756 of the Regulations, Cheng may file 
an appeal from this Order with the Under Secretary for Export 
Administration. The appeal must be filed within 45 days from the date 
of this Order and must comply with the provisions of Part 756 of the 
Regulations.
    VII. A copy of this Order shall be delivered to Cheng. This Order 
shall be published in the Federal Register.

    Dated: April 2, 2001.
Eileen M. Albanese,
Director, Office of Exporter Services.
[FR Doc. 01-9079 Filed 4-11-01; 8:45 am]
BILLING CODE 3510-DT-U