[Federal Register Volume 67, Number 30 (Wednesday, February 13, 2002)]
[Notices]
[Pages 6677-6678]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-3453]


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DEPARTMENT OF COMMERCE

Bureau of Export Administration


Action Affecting Export Privileges; Federal Parts International, 
Inc.; Order

    In the Matter of: Federal Parts International, Inc., 5455 
Peachtree Industrial Blvd., Norcross, Georgia 30092, Respondent.

    The Bureau of Export Administration, United States Department of 
Commerce (BXA), having initiated an administrative proceeding against 
Federal Parts International, Inc. (hereinafter referred to as Federal 
Parts) pursuant to section 13(c) of the Export Administration Act of 
1979, as amended (50 U.S.C. app. secs. 2401-2420 (1994 & Supp. V. 1999) 
(The ``Act'') \1\ and the Export Administration Regulations (currently 
codified at 15 CFR parts 730-774 (20012) (the ``Regulations''),\2\ 
based on allegations that, on two separate occasions, between on or 
about January 30, 1996 and on or about February 14, 1996, Federal Parts 
exported U.S.-origin auto parts from the United States to Iran in 
violation of Sec. 787.6 of the former regulations; that, in connection 
with the January 30, 1996 shipment, Federal Parts violated the 
provisions of Sec. 787.5(a) of the former regulations by making a false 
or misleading statement of material fact directly or indirectly to a 
United States government agency in connection with the preparation, 
submission, issuance or use or an export control document; that, on two 
separate occasions, on or about March 27, 1996 and on or about April 2, 
1996, Federal Parts attempted to export from the United States to Iran 
U.S.-origin auto parts in violation of Secs. 787.3(a) and 787.4(a) of 
the former regulations; and that on or about April 2, 1996, Federal 
Parts violated the provisions of Sec. 785.5(a) of the former 
regulations by making false or misleading statements of material fact 
either directly to BXA or indirectly through any other person for the 
purpose of or in connection with the preparation, submission, issuance, 
use or maintenance or an export control document;
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    \1\ From August 21, 1994 through November 12, 2000, the Act was 
in lapse. During that period, the President, through Executive Order 
12924, which had been extended by successive Presidential Notices, 
the last of which was August 3, 2000 (3 CFR, 2000 Comp. 397 (2001)), 
continued the regulations then in effect under the International 
Emergency Economic Powers Act (50 U.S.C. 1701-1706 (1994 & Supp. IV 
1999)) (IEEPA). On November 13, 2000, the Act was reauthorized and 
it remained in effect through August 20, 2001. Since August 21, 
2001, the Act has been in lapse and the President, through Executive 
Order 13222 of August 17, 2001 (66 FR 44025 (August 22, 2001)), has 
continued the regulations in effect under IEEPA.
    \2\ The alleged violations occurred in 1996. The Regulations 
governing the violations at issue are found in the 1996 version of 
the Code of Federal Regulations (15 CFR parts 768-799 (1996)). Those 
regulations define the violations that BXA alleges occurred 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 this 
matter.
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    BXA and Federal Parts having entered into a Settlement Agreement 
pursuant to Sec. 766.18(b) of the regulations whereby they agreed to 
settle this matter in accordance with the terms and conditions set 
forth therein, and the terms of the Settlement Agreement having been 
approved by me:
    It is therefore ordered:
    First, that a civil penalty of $50,000 is assessed against Federal 
Parts. Federal Parts shall pay $10,000 of the civil penalty to the U.S. 
Department of Commerce within 30 days from the date of entry of this 
Order. Payment of the remaining $40,000 shall be made in four equal, 
monthly installments of $10,000 beginning on the first day of the 
second month after the date of entry of this Order. Payment shall be 
made in the manner specified in the attached instructions.
    Second, that, pursuant to the Debt Collection Act of 1982, as 
amended (31 U.S.C. 3701-3720E (1983 and Supp. V 1999)), the civil 
penalty owed under this Order accrues interest as more fully described 
in the attached Notice, and, if payment is not made by the due date 
specified herein, Federal Parts will be assessed, in addition to 
interest, a penalty charge and an administrative charge, as more fully 
described in the attached Notice.
    Third, Federal Parts International, Inc., 5455 Peachtree Industrial 
Blvd., Norcross, Georgia 30092, (``the denied person'') and, when 
acting in behalf of it, all of its successors or assigns, officers, 
representatives, agents and employees, may not, for a period of 10 
years from the date of this Order, participate, directly or indirectly, 
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 EAR, or in 
any other activity subject to the regulations, including, but not 
limited to:

[[Page 6678]]

    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. Benefitting 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.
    Fourth, 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 Untied 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 other subject to 
the EAR 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 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.
    Fifth, that after notice and opportunity for comment as provided in 
Sec. 766.23 of the regulations, any person, firm, corporation, or 
business organization related to Federal Parts 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.
    Sixth, 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.
    Seventh, that a copy of this Order shall be delivered to the United 
States Coast Guard ALJ Docketing Center, 40 Gay Street, Baltimore, 
Maryland 21202-4022, notifying that office that this case is withdrawn 
from adjudication, as provided by Sec. 766.18(b) of the regulations.
    Eighth, that the Charging Letter, the Settlement Agreement, and 
this Order shall be made available to the public.
    This Order, which constitutes the final agency action in this 
matter, is effective immediately.

    Entered this 5th day of February, 2002.
Michael J. Garcia.
Assistant Secretary for Export Enforcement.
[FR Doc. 02-3453 Filed 2-12-02; 8:45 am]
BILLING CODE 3510-DT-M