[Federal Register Volume 67, Number 222 (Monday, November 18, 2002)]
[Notices]
[Pages 69505-69506]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-29192]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

[Case No. 02-BXA-07]


Action Affecting Export Privileges; Oerlikon Schweisstechnik AG

Order

    The Bureau of Industry and Security, United States Department of 
Commerce (``BIS''), has notified Oerlikon Schweisstechnik AG (also 
known in Switzerland as Oerlikon-Welding Ltd.) (``Oerlikon''), of its 
intention to initiate an administrative proceeding against it pursuant 
to Section 13(c) of the Export Administration Act of 1979, as amended 
(50 U.S.C. app. 2401-2420 (1994 & Supp. V 1999)) (``Act''),\1\ and the 
Export Administration Regulations (currently codified at 15 CFR parts 
730-774 (2002)) (``Regulations''),\2\ based on allegations in a 
charging letter issued to Oerlikon that alleged that Oerlikon committed 
three violations of the Regulations. Specifically, the charges are that 
Oerlikon violated Sections 764.2(c), 764.2(d), and 764.2(e) of the 
Regulations by soliciting the export of cellulose from the U.S. to Iran 
and conspiring to export cellulose from the U.S. to Iran without the 
required authorization from the Office of Foreign Assets Control, 
Department of the Treasury, as required by the Regulations, and taking 
an action that Oerlikon knew to be a violation of the Regulations.
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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, 2001 (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\ The Regulations are currently codified in the Code of 
Federal Regulations at 15 CFR parts 730-774 (2002). The violations 
charged occurred in 2000. The Regulations governing the violations 
are codified at 15 CFR parts 730-774 (2000). They are substantially 
the same as the 2002 version of the Regulations which govern the 
procedural aspects of this case.
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    BIS and Oerlikon having entered into a Settlement Agreement 
pursuant to Section 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, for a period of one year from the date of this Order, 
Oerlikon Schweisstechnik AG (also known in Switzerland as Oerlikon-
Welding Ltd.), Neumbrunnerstrasse 50, CH-8050 Zurich, Switzerland, 
shall be denied its U.S. export privileges as described herein 
(hereinafter the ``denial period''). Oerlikon, and all of its 
successors, assigns, officers, representatives, agents, and employees, 
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 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 EAR, or in any other activity 
subject to the EAR; 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 EAR, or in any other activity subject to the EAR.
    Second, that no person may, directly or indirectly, do any of the 
following:
    A. Export or reexport to or on behalf of a person subject to this 
order any item subject to the EAR;
    B. Take any action that facilitates the acquisition or attempted 
acquisition by a person subject to this order of the ownership, 
possession, or control of any item subject to the EAR that has been or 
will be exported from the United States, including financing or other 
support activities related to a transaction whereby a person subject to 
this order 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 a person subject to this order of any 
item subject to the EAR that has been exported from the United States;
    D. Obtain from a person subject to this order in the United States 
any items subject to the EAR 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 EAR 
that has

[[Page 69506]]

been or will be exported from the United States and which is owned, 
possessed or controlled by a person subject to this order, or service 
any item, or whatever origin, that is owned, possessed or controlled by 
a person subject to this order if such service involves the use of any 
item subject to the EAR that has been or will be exported from the 
United States. For purposes of this paragraph, servicing means 
installation, maintenance, repair, modification or testing.
    Third, that after notice and opportunity for comment as provided in 
section 766.23 of the EAR, any other person, firm, corporation, or 
business organization related to the denied person by affiliation, 
ownership, control, or position of responsibility in the conduct of 
trade or related services may also be made subject to the provisions of 
this order.
    Fourth, that this order does not prohibit any export, reexport, or 
other transaction subject to the EAR where the only items involved that 
are subject to the EAR are the foreign-produced direct product of U.S.-
orgin technology.
    Fifth, that, as authorized by Section 766.18(c) of the Regulations, 
the final six months of the denial period set forth above shall be 
suspended for one year from the date of entry of this Order, and shall 
thereafter be waived, provided that, during the period of suspension, 
Oerlikon has not committed a violation of the Act or any regulation, 
order or license issued thereunder.
    Sixth, that a civil penalty of $33,000 is assessed against Oerlikon 
which shall be paid to the U.S. Department of Commerce within thirty 
days from the date of entry of this Order. Payment shall be made in the 
manner specified in the attached instructions.
    Seventh, that, pursuant to the Debt Collection Act of 1982, as 
amended (31 U.S.C. 3701-3720E (1993 and Supp. 2000)), the civil penalty 
owned 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, Oerlikon will be assessed, in addition to the full amount of 
the civil penalty and interest, a penalty charge and an administrative 
charge, as more fully described in the attached Notice.
    Eighth, that the timely payment of the civil penalty set forth 
above is hereby made a condition to the granting, restoration, or 
continuing validity of any export license, license exception, 
permission, or privilege granted, or to be granted, to Oerlikon. 
Accordingly, if Oerlikon should fail to pay the civil penalty in a 
timely manner, the undersigned may enter an Order denying all of 
Oerlikon's export privileges for a period of one year from the date of 
entry of this Order.
    Ninth, that the charging letter, the Settlement Agreement, and this 
Order shall be made available to the public.
    Tenth, 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 case number 02-BXA-07 
naming Oerlikon as a respondent is withdrawn from adjudication, as 
provided by Section 766.18(b) of the Regulations.
    This Order, which constitutes the final agency action in this 
matter, is effective immediately.

    Entered this 12th day of November 2002.
Michael J. Garcia,
Assistant Secretary of Commerce for Export Enforcement.
[FR Doc. 02-29192 Filed 11-15-02; 8:45 am]
BILLING CODE 3510-DT-M