[Federal Register Volume 67, Number 33 (Tuesday, February 19, 2002)]
[Notices]
[Pages 7348-7349]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-3856]


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DEPARTMENT OF COMMERCE

Bureau of Export Administration


Action Affecting Export Privileges; Black, Sivalls & Bryson (UK) 
Ltd.

    In the Matter of: Black, Sivalls & Bryson (UK) Ltd., Centre 
House, 68 Sheen Lane, London SW14 8LP, United Kingdom, Respondent.

Order

    The Office of Export Enforcement, Bureau of Export Administration, 
United States Department of Commerce (hereinafter BXA), having notified 
Black, Sivalls & Bryson (UK) Ltd. of its intention to initiate an 
administrative proceeding against it pursuant to Part 766 of the Export 
Administration Regulations (currently codified at 15 CFR parts 730-774 
(2001)) (the Regulations),\1\ issued pursuant to the Export 
Administration Act of 1979, as amended (50 U.S.C. app. Secs. 2401-2420 
(1994 & Supp. V 1999)) (the Act),\2\ based on allegations that on three 
separate occasions, on or about April 15, 1996, on or about May 5, 
1997, and on or about February 5, 1998, Black, Sivalls & Bryson (UK) 
Ltd. received oil production equipment in the United Kingdom that it 
knew or had reason to know its affiliated company in the United States, 
BS&B Process systems, Inc., had exported from the United States without 
the required authorization, and forwarded the items to Iran, thereby 
violating Section 787.4 of the former Regulations and Section 764.2(e) 
of the Regulations; and
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    \1\ The alleged violations occurred in 1996, 1997 and 1998. The 
Regulations governing the violations at issue are found in the 1996, 
1997 and 1998 versions of the Code of Federal Regulations (15 CFR 
parts 768-799 (1996), as amended (61 FR 12714, March 25, 1996) 
(hereinafter the ``former Regulations''), 15 CFR parts 730-774 
(1997)), and 15 CFR parts 730-774 (1998)). The March 25, 1996, issue 
of the Federal Register redesignated, but did not republish, the 
then-existing Regulations as 15 CFR Parts 768A-799A. In addition, 
the March 25, 1996, issue of the Federal Register reorganized and 
restructured the Regulations, redesignating them as an interim rule 
at 15 CFR parts 730-774, effective April 24, 1996. The former 
Regulations and the Regulations define the various violations that 
BXA alleges occurred. The Regulations establish the procedures that 
apply to this matter.
    \2\ 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 in effect under the International 
Emergency Economic Powers Act (50 U.S.C. Secs. 1701-1706 (1994 & 
Supp. V 1999)) (IEEPA). On November 13, 2000, the Act was 
reauthorized by Pub. L. No. 106-508 and 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.
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    BXA and Black, Sivalls & Bryson (UK) Ltd. having entered into a 
Settlement Agreement pursuant to Section 766.18(a) of the Regulations 
whereby they agree 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 Black, Sivalls & Bryson (UK) Ltd. shall be assessed a 
civil penalty in the amount of $32,000, of which $11,000 shall be paid 
to BXA within 30 days from the date of entry of this Order, $11,000 
shall be paid to BXA within one year of the date of entry of this 
Order, and the remaining $10,000 shall be paid to BXA within two years 
of 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.A. Secs. 3701-3720E (1983 and Supp. 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, respondent will be assessed, in addition to interest, 
a penalty charge and an administrative charge, as more fully described 
in the attached Notice.
    Third, that, for a period of three years from the date of entry of 
this Order, Black, Sivalls & Bryson (UK), Ltd., Centre House, 68 Sheen 
Lane, London SW14 8LP, United Kingdom, may not 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 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 if, 
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 United States, including financing or other support 
activities related to a transaction whereby the denied person

[[Page 7349]]

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.
    Fifth, 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 Black, Sivalls & Bryson (UK) Ltd. 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, as authorized by Section 766.18(c) of the 
Regulations, the last two years of the denial period set forth above 
shall be suspended for a period of two years beginning one year from 
the date of entry of the appropriate Order and shall thereafter be 
waived, provided that Black, Sivalls & Bryson (UK) Ltd. has committed 
no violation of the Act, or any regulation, order, or license issued 
thereunder, including failure to make timely payments of the civil 
penalty set forth above.
    Eighth, that the proposed 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 4th day of February, 2002.
Michael J. Garcia,
Assistant Secretary for Export Enforcement.
[FR Doc. 02-3856 Filed 2-15-02; 8:45 am]
BILLING CODE 3510-DT-M