[Federal Register Volume 67, Number 238 (Wednesday, December 11, 2002)]
[Notices]
[Pages 76159-76160]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-31169]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

[Docket No. 01-BXA-21]


Action Affecting Export Privileges; Alexander Zisman

    In the Matter of: Alexander Zisman, 2 Flotskaya, 81, 
Moscow, Russia, 125565, Respondent.


[[Page 76160]]



Order

    The Bureau of Industry and Security, United States Department of 
Commerce (``BIS''), having initiated an administrative proceeding 
against Alexander Zisman, 2 Flotskaya, 81, Moscow, Russia, 
125565 (``Zisman''), pursuant to section 13(c) of the Export 
Administration Act of 1979, as amended (50 U.S.C. app. Sections 2401-
2420 (2000)) (``ACT''),\1\ and the Export Administration Regulations 
(currently codified at 15 CFR parts 730-774 (2002)) 
(``Regulations''),\2\ based on allegations that Zisman violated 
sections 764.2(b) and 764.2(e) of the Regulations; specifically, that 
Zisman arranged for the transportation of computers from Germany to the 
Netherlands, and from the Netherlands to the Russian Federal Nuclear 
Center, Russian Research Institute of Experimental Physics (Arzamas-
16), Russia, without obtaining the necessary license for the shipment 
and that Zisman knew or had reason to know that no such license was 
obtained; and
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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 in effect under the International 
Emergency Economic Powers Act (50 U.S.C. 1701-1706 (2000)) 
(``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 governing the violations at issue are found 
in the 1996 and 1997 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'')), and 15 CFR parts 
768-799 (1997)). The March 25, 1996 Federal Register publication 
redesignated, but did not republish, the then-existing Regulations 
as 15 CFR parts 768A-799A. As an interim measure that was part of 
the transition to newly restructured and reorganized Regulations, 
the March 25, 1996 Federal Register publication also restructured 
and reorganized 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 
BIS alleges occurred. The Regulations establish the procedures that 
apply to this matter.
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    BIS and Zisman 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 a civil penalty of $20,000 is assessed against Zisman, 
which shall be paid to the U.S. Department of Commerce within 30 days 
from 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 (2000)), 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, 
Zisman shall 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.
    Third, that for a period of five years from the date of this Order, 
Zisman, his successors or assigns, and when acting for or on behalf of 
Zisman, his officers, representatives, agents or employees (``denied 
person'') 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 or 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 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 
section 766.23 of the Regulations, any person, firm, corporation, or 
business organization related to Zisman 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 section 766.18 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 4th day of December, 2002.
Lisa A. Prager,
Acting Assistant Secretary of Commerce for Export Enforcement.
[FR Doc. 02-31169 Filed 12-10-02; 8:45 am]
BILLING CODE 3510-DT-M