[Federal Register Volume 67, Number 33 (Tuesday, February 19, 2002)]
[Notices]
[Pages 7349-7350]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-3857]


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DEPARTMENT OF COMMERCE

Bureau of Export Administration


Action Affecting Export Privileges; BS&B Process Systems, Inc.

    In the matter of: BS&B Process Systems, Inc., 2727 Allen 
Parkway, Houston, Texas 77019, Respondent.

Order

    The Office of Export Enforcement, Bureau of Export Administration, 
United States Department of Commerce (BXA), having notified BS&B 
Process Systems, Inc. of its intention to initiate an administrative 
proceeding against 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. Secs. 2401-2420 (1994 & Supp. V 1999)) (the 
Act),\2\ based on allegations that, on or about April 15, 1996, on or 
about May 5, 1997, and on or about February 5, 1998, BS&B Process 
Systems, Inc. exported oil production equipment from the United States 
to Iran, through the United Kingdom, without obtaining the 
authorization it knew or had reason to know was required, thereby 
committing violations of Sections 787.4 and 787.6 of the former 
Regulations and violations of Sections 764.2(a) and 764.2(e) of the 
Regulations, and that, in connection with the export to Iran on or 
about May 5, 1997, BS&B Process Systems, Inc. prepared a Shipper's 
Export Declaration stating that the ultimate destination of the export 
was the United Kingdom, when in fact the ultimate designation was Iran, 
thereby making a false or misleading representation directly or 
indirectly to a U.S. Government agency in connection with the 
preparation of an export control document in violation of Section 
764.2(g) of the Regulations, and that, in connection with the export to 
Iran on or about February 5, 1998, BS&B Process Systems, Inc. failed to 
prepare the required Shipper's Export Declaration, thereby violating 
Section 764.2(g) 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-779A. In addition, 
the March 25, 1996, issue of the Federal Register reorganized and 
restructured the Regulations, designating 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. 1701-1706 (1994 & Supp. V 
1999)) (IEEPA). On November 13, 2000, the Act was reauthorized by 
Pub. L. Nos 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 BS&B Process Systems, Inc. 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 a civil penalty of $86,000 is assessed against BS&B 
Process Systems, Inc., of which $30,000 shall be paid to BXA within 30 
days from the date of entry of this Order, $30,000 shall be paid to BXA 
within one year of the date of entry of this Order, and the remaining 
$26,000 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. 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, BS&B Process Systems, Inc., 2727 Allen Parkway, Houston, 
Texas 77019, may not participate, directly or indirectly, in any ways 
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:

[[Page 7350]]

    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.
    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 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 BS&B Process Systems, Inc. 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 denial period set forth above shall be suspended in 
its entirety for a period of three years from the date of entry of this 
Order, and shall thereafter be waived, provided that, during the period 
of suspension, BS&B Process Systems, Inc. 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. 02-3857 Filed 2-15-02; 8:45 am]
BILLING CODE 3510-DT-M