[Federal Register Volume 69, Number 92 (Wednesday, May 12, 2004)]
[Notices]
[Pages 26359-26360]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-10766]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

Docket No. 01-BXA-18


Action Affecting Export Privileges; Charlie Kuan

    In the Matter of: Charlie Kuan, 2541 Robin Court, Union City, 
California 94587, Respondent

Order

    The Bureau of Industry and Security, United States Department of 
commerce (``BIS'') having initiated an administrative proceeding 
against Charlie Kuan, the former President of Suntek Microwave Inc., 
(``Kuan'') pursuant to Section 766.3 of the Export Administration 
Regulations (currently codified at 15 CFR parts 730-774 (2003)) 
(``Regulations''),\1\ and section 13(c) of the Export Administration 
Act of 1979, as amended (50 U.S.C. app. Sec. Sec.  2401-2420 (2000;)) 
(``Act''),\2\ based on the charging letter issued to Kuan that alleged 
that Kuan committed 17 violations of the regulations. Specifically, the 
charges are:
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    \1\ The regulations governing the violations at issue are found 
in the 1996, 1997, 1998, 1999 and 2000 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, 1998, 1999 and 2000)). The March 25, 
1996 Federal Register publication redesignated, but did not 
republish, the then-existing Regulations as 15 CFR part 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 2003 Regulations establish 
the procedures that apply to this matter.
    \2\ 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, 2003 (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.
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    1. One violation of 15 CFR 787A.2--Aiding and Abetting an 
Unlicensed Export: On or about December 1, 1996, Kuan aided and abetted 
the unlicensed export of detector log video amplifiers, items subject 
to the former Regulations and classified under ECCN 3A001.b.4.a, by 
authorizing the procurement of the detector log video amplifiers by 
Silicon Valley Scientific Instruments Corporation (SVSIC) from Suntek 
Microwave, Inc. (Suntek) who then exported them to the People's 
Republic of China (PRC) without a validated license as required by 
Section 771A.1 of the former Regulations.
    2. One violation of 15 CFR 764.2(e)--Transfer of Controlled 
Commodity Knowing That It Will be Exported Without a License: On or 
about January 27, 1997, Kuan authorized the procurement of detector log 
video amplifiers, items subject to the Regulations and classified under 
ECCN 3A001.b.4.a, by SVSIC from Suntek knowing or having reason to know 
that SVSIC would export them to the PRC without a license as required 
by Sections 742A.4 and 742.5 of the Regulations.
    3. Nine Violations of 15 CFR 764.2(b)--Aiding and Abetting an 
Unlicensed Export: From on or about November 1996 through on or about 
April 2000, Kuan arranged for the entrance of citizens of the PRC, not 
citizens or permanent resident aliens of the United States, into the 
United States, knowing or having reason to know that Suntek then would 
release the U.S.-origin technology classified under ECCN 3E001 to them 
without the licenses required under Sections 742.4 and 742.5 of the 
Regulations.
    4. One Violation of 15 CFR 764.2(a)--False Statements on License 
Application: On or about July 25, 1997, Suntek filed an application for 
a license with BIS to export detector log video amplifiers to the PRC. 
On the application, Suntek stated that the purchaser, intermediate 
consignee, ultimate consignee, and end-user were China Electronic 
Science & Technical University when, in fact, China Electronic Science 
& Technical University was not the purchaser, intermediate consignee, 
ultimate consignee, or end-user. Kuan certified on the license 
application that all information contained therein was true and correct 
when, in fact, Kuan knew or had reason to know that the information 
contained therein was false.
    5. Five Violations of 15 CFR 764.2(e)--Exporting Without Licenses: 
On or about February 4, 1998, February 26, 1998, April 28, 1998, May 7, 
1998, and June 8, 1998, Kuan authorized the sales and exports of 
detector log video amplifiers, items subject to the Regulations and 
classified under ECCN 3A001.b.4.a, by Suntek from the United States to 
the PRC. At the time Kuan authorized the exports, Kuan knew or had 
reason to know that no licenses were obtained for the exports as 
required under Sections 742.4 and 742.5 of the Regulations.
    BIS and Kuan 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 $187,000 is assessed against Kuan, 
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, 
Kuan 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, for a period 20 years from the date of entry of the Order, 
Charlie Kuan, 2541 Robin Court, Union City, California 94587, when 
acting for or on behalf of Kuan, his assigns, representatives, agents, 
or employees (``Denied Person'') 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

[[Page 26360]]

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 a 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 
the 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 Section 766.18(c) of the 
Regulations, the civil penalty set forth above shall be suspended in 
its entirety for one year from the date of this Order, and shall 
thereafter be waived, provided that during the period of suspension, 
Kuan has committed no violation of the Act or any regulation, order or 
license issued thereunder.
    Eighth, that the charging letter, the Settlement Agreement, and 
this Order, in addition to the record of the case, shall be made 
available to the public.
    This Order, which constitutes the final agency action in this 
matter, is effective immediately.

    Entered this 6th day of May 2004.
Julie L. Myers,
Assistant Secretary of Commerce for Export Enforcement.
[FR Doc. 04-10766 Filed 5-11-04; 8:45 am]
BILLING CODE 3510-DT-M