[Federal Register Volume 68, Number 230 (Monday, December 1, 2003)]
[Notices]
[Pages 67148-67149]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-29782]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

[Docket No. 02-BIS-11]


Action Affecting Export Privileges; Ahwaz Steel Commercial & 
Technical Service Gmbh

    In the Matter of: Ahwaz Steel Commercial & Technical Service 
Gmbh, Tersteegenstr. 10, 40474 Dusseldorf, Germany, Respondent.

Order

    The Bureau of Industry and Security, United States Department of 
Commerce (``BIS''), having initiated an administrative proceeding 
against Ahwaz Steel Commercial & Technical Service Gmbh (``ASCOTEC)'' 
pursuant to section 13(c) of the Export Administration Act of 1979, as 
amended (50 U.S.C. app. 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 charging letter 
issued to ASCOTEC that alleged that ASCOTEC committed eight violations 
of the Regulations, specifically that ASCOTEC committed violations of 
the Regulations by causing the export of items from the United States 
to Iran without the required authorization from the Office of Foreign 
Assets Control, Department of the Treasury, as required by the 
Regulations on eight occasions; 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 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 
(2000)) (IEEPA). On November 13, 2000, the Act was reauthorized and 
it remained in effect through August 20, 2001. The Act expired on 
August 20, 2001. Executive Order 13222 of August 17, 2001 (3 CFR 
2001 Comp., p. 783 (2002)), which has been extended by successive 
Presidential Notices, the most recent being that of August 7, 2003 
(68 FR 47833, August 11, 2003), continues 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 violations 
charged occurred from 1999 to 2002. The Regulations governing the 
violations are codified at 15 CFR, parts 730-774 (1999-2002). They 
are substantially the same as the 2003 version of the Regulations 
which govern the procedural aspects of this case.
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    BIS and ASCOTEC 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 five years from the date of this Order 
(hereinafter the ``Denial Period''), Ahwaz Steel Commercial & Technical 
Service Gmbh, Terteegenstr. 10,40474 Dusseldorf, Germany, shall be 
denied its U.S. export privileges as described herein. ASCOTEC, 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 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.
    Second, that, during the Denial Period, 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 Regulations;
    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 Regulations 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 Regulations that has been exported from the United 
States;
    D. Obtain from a person subject to this Order 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 a person subject to this 
Order, or service any item, of 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 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.
    Third, that after notice opportunity for comment as provided in 
Sec.  766.23 of the Regulations, any other person, firm, corporation, 
or business organization

[[Page 67149]]

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 Republicans where the only items 
involved that are subject to the Regulations are the foreign-produced 
direct product of U.S.-origin technology.
    Fifth, that, as authorized by Sec.  766.18(c) of the Regulations, 
the final three years of the denial period set forth above shall be 
suspended for five years from the date of entry of this Order, and 
shall thereafter be waived, provided that, during the period of 
suspension, ASCOTEC has not committed a violation of the Act or any 
regulation, license, or order, including this Order, issued thereunder.
    Sixth, that a civil penalty of $50,000 is assessed against ASCOTEC 
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 (1983 and Supp. 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, ASCOTEC 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 ASCOTEC.
    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 
Honorable Edwin M. Bladen, Administrative Law Judge, United States 
Coast Guard, 915 Second Avenue, Room 3448, Jackson Federal Building, 
Seattle, Washington 98174; and to the United States Coast Guard ALJ 
Docketing Center, 40 Gay Street, Baltimore, Maryland 21202-4022, 
providing notification that case number 02-BIS-11 naming ASCOTEC as a 
respondent is withdrawn from adjudication, as provided by Sec.  
766.18(b) of the Regulations.
    This Order, which constitutes the final agency action in this 
matter, is effective immediately.

    Entered this 17th day of November, 2003.
Julie L. Myers,
Assistant Secretary of Commerce for Export Enforcement.

Instructions for Payment of Civil Penalty

    1. The civil penalty check should be made payable to: U.S. 
Department of Commerce.
    2. The check should be mailed to U.S. Department of Commerce, 
Bureau of Industry and Security, Export Enforcement Team, Room H-6877, 
14th Street and Constitution Avenue, NW., Washington, DC 20230, Attn: 
Sharon Gardner.

Notice

    The Order to which this Notice is attached describes the reasons 
for the assessment of the civil monetary penalty. It also specifies the 
amount owed and the date by which payment of the civil penalty is due 
and payable.
    Under the Debt Collection Act of 1982, as amended (31 U.S.C. 3701-
3702E(2000)), and the Federal Claims Collection Standards (31 CFR part 
900-904 (2003)), interest accrues on any and all civil monetary 
penalties owed and unpaid under the Order, from the date of the Order 
until paid in full. The rate of interest assessed respondent is the 
rate of the current value of funds to the U.S. Treasury on the date 
that the Order was entered. However, interest is waived on any portion 
paid within 30 days of the date of the Order. See 31 U.S.C. 3717 and 31 
CFR 901.0.
    The civil monetary penalty will be delinquent if not paid by the 
due date specified in the Order. If the penalty becomes delinquent, 
interest will continue to accrue on the balance remaining due and 
unpaid, and respondent will also be assessed both an administrative 
charge to cover the cost of processing and handling the delinquent 
claim and a penalty charge of six percent per years. However, although 
the penalty charge will be computed from the date that the civil 
penalty becomes delinquent, it will be assessed only on sums due and 
unpaid for over 90 days after that date. See 31 U.S.C. 3717 and 31 CFR 
901.9.
    The foregoing constitutes the initial written notice and demand to 
respondent in accordance with 901.2(b) of the Federal Claims Collection 
Standards (31 CFR 901.2(b)).

[FR Doc. 03-29782 Filed 11-28-03; 8:45 am]
BILLING CODE 3510-DT-M