[Federal Register Volume 68, Number 222 (Tuesday, November 18, 2003)]
[Notices]
[Pages 65032-65033]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-28795]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security


Action Affecting Export Privileges; Ralph Michel

    In the Matter of: Ralph Michel, Vice President, Omega 
Engineering, Inc., One Omega Drive, Stamford, Connecticut 06907, 
Respondent.

Order

    The Bureau of Industry and Security, United States Department of 
Commerce (``BIS''), having notified Ralph Michel of its intention to 
initiate an administrative proceeding against him pursuant to Section 
13(c) of the Export Administration Act of 1979, as amended (50 U.S.C. 
app. Sec. Sec.  2401-2420 (2000)) (``Act''),\1\ and the Export 
Administration Regulations (currently codified at 15 CFR parts 730-774 
(2003)) (``Regulations''),\2\ based on allegations in a proposed 
charging letter issued to Ralph Michael that alleged that Ralph Michel 
committed six violations of the Regulations. Specifically, the charges 
are:
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    \1\ From August 21, 1994 through November 12, 2000, the Act was 
in lapse. During the 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 7, 2003 (68 FR 47833, August 11, 2003)), 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 (2003). The current 
version of the Regulations govern the procedural aspects of this 
case. The charged violations occurred in 1997. The Regulations 
governing the charged violations are found in the 1997 version of 
the Code of Federal Regulations (15 CFR parts 730-774 (1997)).
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    1. Four Violations of Sec.  764.2(a): Prohibited Conduct: Ralph 
Michel made or caused to be made a series of exports of laboratory 
equipment, including shipments on or about June 25, 1997, July 3, 1997, 
July 11, 1997, and July 16, 1997, that were routed from Omega 
Engineering, Inc. (Omega) in the United States to Pakistan via Newport 
Electronics GmbH (Newport) in Germany. This laboratory equipment 
included load cells, load bolts, strain gauges and related parts. By 
that means, Ralph Michel conducted or caused to be conducted the same 
export transaction for which the Department of Commerce had denied 
authorization in response to an export license application previously 
submitted by Omega. On or about April 9, 1997, the Department of 
Commerce denied export license application Z097230, which Omega had 
submitted for the export of certain laboratory equipment from the 
United States to Pakistan. Omega appealed this denial pursuant to 
Section 756.2 of the Regulations. On or about May 5, 1997, the Under 
Secretary of Commerce for Export Administration sustained the denial of 
the license application. In making or causing to be made the shipments 
on the dates specified above, Ralph Michel engaged in conduct 
prohibited by or contrary to the denial of export license application 
Z097230 and the Under Secretary's upholding of that denial, thereby 
committing four violations of Section 764.2(a) of the Regulations.
    2. One Violation of 15 CFR 764.2(e): Acting With Acknowledge of a 
Violation: In making or causing to be made the above-described exports, 
Ralph Michel acted with knowledge that such exports were prohibited by 
or contrary to the Department of Commerce's denial of Omega's export 
license application and the Under Secretary's sustaining of that 
denial, as described above. By selling and transferring the items 
described above with knowledge that such violation was about to occur 
and was intended to occur in connection with the items, Ralph Michel 
violated Section 764.2(e) of the Regulations.
    3. One Violation of 15 CFR 764.2(b): Causing False Statement 
Violations: On or above June 25, July 3, July 11, and July 16, 1997, 
and in connection with each of the shipments described above, Omega, 
through an employee, submitted or caused to be submitted a Shipper's 
Export Declaration (SED). Ralph Michel knew that items ultimately 
destined for Pakistan were included in such shipments to Newport in 
Germany, and then were to be shipped from Germany to Pakistan. Each 
such SED falsely identified Newport as the ultimate consignee and 
Germany as the country of ultimate destination. It also stated that the 
export qualified for export pursuant to ``NLR'' (no license required), 
when in fact a license was required for this export, as the Department 
of Commerce had previously advised Omega. Ralph Michel knew of the 
applicable license requirement and of the actual ultimate destination 
and ultimate consignee, but

[[Page 65033]]

caused, induced, and permitted the submission of the SED's containing 
these false statements. By so doing, Ralph Michel violated Section 
764.2(b) of the Regulations.
    BIS and Ralph Michel having entered into a Settlement Agreement 
pursuant to Section 766.18(a) 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 five years from the date of this Order, 
Ralph Michel, and when acting for or on behalf of him, his 
representatives, agents, assigns or employees (``Denied Persons'') may 
not, directly or indirectly, participate in any way in any transaction 
involving any commodity, software, or technology (hereinafter 
collectively referred to as ``item'') that is subject to the 
Regulations and that is exported or to be exported from the Untied 
States to Pakistan, or in any other activity subject to the Regulations 
that involves Pakistan, including, but not limited to:
    A. Applying for, obtaining, or using any license, License 
Exception, or export control document that involves export to Pakistan;
    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 that is subject to the Regulations 
and that is exported or to be exported from the United States to 
Pakistan, or in any other activity subject to the Regulations that 
involves Pakistan; or
    C. Benefitting in any way from any transaction involving any item 
exported or to be exported from the United States to Pakistan that is 
subject to the Regulations, or in any other activity subject to the 
Regulations that involves Pakistan.
    Second, that no person may, directly or indirectly, do any of the 
following:
    A. Export or reexport to or on behalf of a Denied Person any item 
subject to the Regulations to Pakistan;
    B. Take any action that facilitates the acquisition or attempted 
acquisition by a 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 to Pakistan, including financing or 
other support activities related to a transaction whereby a 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 a Denied Person of any item subject to 
the Regulations that has been exported from the United States to 
Pakistan;
    D. Obtain from a 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 to 
Pakistan; 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 to 
Pakistan and that is owned, possessed or controlled by a Denied Person, 
or service any item, of whatever origin, that is owned, possessed or 
controlled by a 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 to Pakistan. 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 Regulations, any person, firm, cooperation, or 
business organization related to Ralph Michel 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.
    Fourth, 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.
    Fifth, 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 12th day of November 2003.
Julie L. Myers,
Assistant Secretary of Commerce for Export Enforcement.
[FR Doc. 03-28795 Filed 11-17-03; 8:45 am]
BILLING CODE 3510-DT-M