[Federal Register Volume 68, Number 245 (Monday, December 22, 2003)]
[Notices]
[Pages 71060-71061]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-31411]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security


Action Affecting Export Privileges; In the Matter of: ABO (USA) 
INC., 2653 NW 20th Street, Miami, FL 33142, Respondent

Order

    The Bureau of Industry and Security, United States Department of 
Commerce (``BIS'') having notified ABO (USA) Inc. (``ABO'') of its 
intention to initiate an administrative proceeding against ABO pursuant 
to Sec.  766.3 of the Export Administration Regulations (currently 
codified at 15 CFR parts 730-774 (2003)) (``Regulations''), and section 
13(c) of the Export Administration Act of 1979, as amended (50 U.S.C. 
app. sections 2401-2420 (2000)) (``Act,''),\1\ based on the proposed 
charging letter issued to ABO that alleged ABO committed two 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 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. 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)), 
which has been extended by successive Presidential Notices, the most 
recent being that of August 7, 2003 (68 FR 47833, August 11, 2003)), 
has continued the Regulations in effect under IEEPA.
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    1. One Violation of 15 CFR 764.2(d)--Conspiracy--Conspiracy to 
Export Night Vision Scopes to Japan without the Required Licenses: 
Beginning in 1995 and continuing into 1997, ABO

[[Page 71061]]

conspired and acted in concert with others, known and unknown, to 
violate the former regulations and Regulations. The goal of the 
conspiracy was to evade Department of Commerce export licensing 
requirements relating to night vision scopes and to export night vision 
scopes from the United States to Japan without the required Department 
of Commerce licenses. To accomplish the conspiracy, the conspirators, 
including ABO, took actions in furtherance of the conspiracy, including 
falsifying invoices and shipping documents and disassembling the night 
vision scopes before exporting them from the United States to Japan to 
avoid detection by U.S. authorities, including the Department of 
Commerce.
    2. One Violation of 15 CFR 764.2(a)--Engaging in Prohibited 
Conduct--Export of Night Vision Scopes Without the Required Licenses. 
On or about February 28, 1997, ABO exported or caused to be exported 
items subject to the Regulations, specifically night vision scopes, 
models Night Ranger 150 and Night Ranger 250; from the United States to 
Japan without the required Department of Commerce license. An export 
license was required for the export of the Night Vision scopes, which 
were classified under ECCN 6A002.c on the Commerce Control List, from 
the United States to Japan by Sec.  742.6 of the regulations.
    BIS and ABO 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 a civil penalty of $20,000 is assessed against ABO, 
which shall be paid to the U.S. Department of Commerce within 30 days 
from the date of the 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 (21 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, 
ABO 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.
    Third, that for a period of two years from the date of this Order, 
ABO (USA) Inc., 2653 NW 20th Street, Miami, FL 33142, its successors or 
assigns, and when acting for or on behalf of ABO, its 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 to any destination other than Canada, 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 relating to any destination other 
than Canada;
    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 to any destination other than Canada, 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 to any destination 
other than Canada, 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 other than to Canada, 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 to any destination other than Canada, 
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 to any 
destination other than Canada;
    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 to 
any destination other than Canada; 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 
any destination other than Canada, 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 to any 
destination other than Canada. For purposes of this paragraph, 
servicing means installation, maintenance, repair, modification or 
testing.
    Fifth, that after notice and opportunity for comment as provided in 
Sec.  766.23 of the Regulations, any person, firm, corporation, or 
business organization related to ABO 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, as authorized by Sec.  766.18(c) of the regulations, 
the $20,000 civil penalty set forth above shall be suspended in its 
entirety for one year fro the date of this Order, and shall thereafter 
be waived, provided that during the period of suspension, ABO has 
committed no violation of the Act or any regulation, order or license 
issued thereunder.
    Eighth, 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 15th day of December 2003.
Julie L. Myers,
Assistant Secretary of Commerce for Export Enforcement.
[FR Doc. 03-31411 Filed 12-19-03; 8:45 am]
BILLING CODE 3510-DT-M