[Federal Register Volume 67, Number 209 (Tuesday, October 29, 2002)]
[Notices]
[Pages 65942-65943]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-27427]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security


Action Affecting Export Privileges; Pars Company, Inc.; Order 
Denying Export Privileges

    On September 4, 2001, a U.S. District Court in the Eastern District 
of North

[[Page 65943]]

Carolina convicted Pars Company, Inc. of violating the International 
Emergency Economic Powers Act (50 U.S.C. 1701-1706 (1994 & Supp. V 
1999)) (``IEEPA''). Specifically, the Court found that Pars Company, 
Inc. exported and attempted to export goods and technology to a person 
in a third country with knowledge that the goods and technology were 
intended to be supplied to Iran.
    Section 11(h) of the Export Administration Act of 1979, as amended 
(currently codified at 50 U.S.C. app 2401-2420 (1994 & Supp. V 1999)) 
(``Act'')\1\ provides that, at the discretion of the Secretary of 
Commerce,\2\ no person convicted of violating any of a number of 
federal criminal statutes including the IEEPA 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 CFR parts 730-774 (2002)) (``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\ 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 issued on 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 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, 201 (3 CFR, 2001 comp. 
783 (2002)), as extended by the Notice of August 14, 2002 (67 FR 
53721, August 16, 2002), has continued the Regulations in effect 
under IEEPA.
    \2\ Pursuant to appropriate delegations of authority that are 
reflected in the Regulations, the Director, Office of the 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 IEEPA, 
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 Par Company, Inc.'s conviction for 
violating the IEEPA, and after providing notice and an opportunity for 
Pars Company, Inc. to make a written submission to the Bureau of 
Industry and Security 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 Pars Company, Inc.'s export 
privileges for a period of nine years from the date of its conviction. 
The nine-year period ends on September 4, 2010. I have also decided to 
revoke all licenses issued pursuant to the Act in which Pars Company, 
Inc. had an interest at the time of its conviction.
    Accordingly, it is hereby ordered:
    I. Until September 4, 2010, Pars Company, Inc., 200 Mainstail 
Drive, Cary, North Carolina 27511, (``the denied person'') and, when 
acting in behalf of it, all of its successors or assigns, officers, 
representatives, agent and employees, 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. 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.
    II. 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;
    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 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.
    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 Pars Company, 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.
    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.
    V. This Order is effective immediately and shall remain in effect 
until September 4, 2010.
    VI. In accordance with Part 765 of the Regulations, Pars Company, 
Inc. may file an appeal from this Order with the Under Secretary for 
Industry and Security. 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 Pars Company, Inc. 
This Order shall be published in the Federal Register.

    Dated: October 21, 2002.
Eileen M. Albanese,
Director, Office of Exporter Services.
[FR Doc. 02-27427 Filed 10-29-02; 8:45 am]
BILLING CODE 3510-DT-M