[Federal Register Volume 70, Number 16 (Wednesday, January 26, 2005)]
[Notices]
[Pages 3673-3674]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-1362]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security


Action Affecting Export Privileges; Vladimir Alexanyan; In the 
Matter of: Vladimir Alexanyan, 934 Mercedes Avenue, Los Altos, CA 
94022, Respondent; Order Relating to Vladimir Alexanyan

    The Bureau of Industry and Security, United States Department of 
Commerce (``BIS'') has notified Vladimir Alexanyan (``Alexanyan'') of 
its intention to initiate an administrative proceeding against 
Alexanyan pursuant to Section 766.3 of the Export Administration 
Regulations (currently codified at 15 CFR parts 730-774 (2004)) 
(``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\ by issuing a proposed charging letter to Alexanyan that 
alleged that Alexanyan, as President of Valtex International 
Corporation (``Valtex''), in his individual capacity, committed eight 
violations of the Regulations. Specifically, the charges are:
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    \1\ The charged violations occurred in 2002. The Regulations 
governing the violations at issue are found in the 2002 version of 
the Code of Federal Regulations (15 CFR parts 730-774 (2002)). The 
2004 Regulations set forth 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 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 6, 2004 (69 FR 48763 (August 10, 2004)), has 
continued the Regulations in effect under the IEEPA.
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    1. 15 CFR 764.2(c)--Attempted Export of Germanium Coated Polymide 
Film to the People's Republic of China Without the Required Department 
of Commerce License: On or about October 28, 2002, Alexanyan attempted 
to violate the Regulations by attempting to export Germanium coated 
polymide film (``film''), an item subject to the Regulations (ECCN 
1A003),\3\ from the United States to the People's Republic of China 
without obtaining the Department of Commerce license required by 
Section 742.4 of the Regulations.
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    \3\ The term ``ECCN'' refers to an Export Control Classification 
Number. See Supp. 1 to 15 CFR 774.
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    2. 15 CFR 764.2(e)--Buying an Item With Knowledge a Violation of 
the Regulations Would Occur: On or about September 12, 2002, Alexanyan 
bought the film referenced in Paragraph One with knowledge that a 
violation of the Regulations would occur. Specifically, Alexanyan 
bought the film from a U.S. manufacturer when Alexanyan knew that he 
would attempt to export the film to the People's Republic of China 
without obtaining the required Department of Commerce license.
    3. 15 CFR 764.2(c)--Attempted False Statement on a Shipper's Export 
Declaration Concerning Authority to Export: On or about October 28, 
200, in connection with the attempted export referenced in Paragraph 
One, Alexanyan attempted a violation of the Regulations by attempting 
to file or cause to be filed a Shipper's Export Declaration with the 
United States Government that stated the film qualified for export from 
the United States as G-DEST.\4\ This statement was false because, as 
described in Paragraph One, a Department of Commerce license was 
required to export this item to the People's Republic of China.
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    \4\ The term ``G-DEST'' was a term used in pre-1997 regulations 
and was a provision authorizing exports of items that appeared on 
the Commerce Control List but that did not require a validated 
license. See 15 CFR 771.3 (1996).
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    4. 15 CFR 764.2(e)--Knowingly Attempting to Make a False Statement 
on a Shipper's Export Declaration: On or about October 28, 2002, in 
connection with the transaction referenced in Paragraph One, Alexanyan 
engaged in conduct prohibited by the Regulations by attempting to 
export the film with knowledge that a violation of the Regulations 
would occur. Specifically, Alexanyan completed a Shipper's Export 
Declaration and attempted to file it with the United States Government 
that falsely stated the film qualified for export from the United 
States as G-DEST. At all times relevant hereto, Alexanyan knew that a 
Department of Commerce license was required to export the film to the 
People's Republic of China.
    5. 15 CFR 764.2(c)--Attempted False Statement on a Shipper's Export 
Declaration Concerning Identity of Ultimate Consignee: On or about 
October 28, 2002, in connection with the attempted export referenced in 
Paragraph One, Alexanyan attempted to file or cause to be filed a 
Shipper's Export Declaration with the United States Government that 
falsely stated the true identity of the ultimate consignee. 
Specifically, Alexanyan attempted to file a Shipper's Export 
Declaration that stated the ultimate consignee was the China Great Wall 
Industry Corporation in the People's Republic of China. This statement 
was false because the actual ultimate consignee in the transaction was 
the Chinese Academy of Space and Technology in the People's Republic of 
China.
    6. 15 CFR 764.2(e)--Knowingly Attempting to Make a False Statement 
on a Shipper's Export Declaration: On or about October 28, 2002, in 
connection with the attempted export referenced in Paragraph One, 
Alexanyan engaged in conduct prohibited by the Regulations by 
attempting to export the film with knowledge that a violation of the 
Regulations would occur. Specifically, Alexanyan completed a Shipper's 
Export Declaration and attempted to file it with the United States 
Government that falsely stated the identity of the ultimate consignee 
for the transaction as described in Paragraph Five. At all times 
relevant hereto, Alexanyan knew that the ultimate consignee for the 
film was the Chinese Academy of Space and Technology, not the China 
Great Wall Industry Corporation.
    7. 15 CFR 764.2(c)--Attempting to File a Shipper's Export 
Declaration that Failed to Provide Required Information: On or about 
October 28, 2002, in connection with the attempted export referenced in 
Paragraph One, Alexanyan attempted to file or cause to be filed a 
Shipper's Export Declaration with the United States Government that 
failed to show the ECCN as required by Part 758 of the Regulations.
    8. 15 CFR 764.2(g)--False Statement to an Office of Export 
Enforcement Special Agent in the Course of an Investigation: On or 
about November 13, 2002, in connection with an ongoing BIS, Office of 
Export Enforcement (``OEE'') investigation concerning the transaction 
referenced in Paragraph One, Alexanyan made a false statement to OEE 
investigators. Specifically, in a

[[Page 3674]]

sworn statement to OEE investigators, Alexanyan stated the attempted 
export of the film to the People's Republic of China without the 
required U.S. Department of Commerce license was a mistake due to a 
mis-communication between himself and another employee at Valtex. This 
statement was false because Alexanyan knew or had reason to know that a 
license was required from the U.S. Department of Commerce to export the 
film to the People's Republic of China and that no license had been or 
would be obtained.
    Whereas, BIS and Alexanyan having entered into a Settlement 
Agreement pursuant to Section766.18(a) of the Regulations whereby they 
agreed to settle this matter in accordance with the terms and 
conditions set forth herein, and the terms of the Settlement Agreement 
having been approved by me;
    It is therefore ordered: First, that a civil penalty of $88,000 is 
assessed against Alexanyan which shall be paid to the U.S. Department 
of Commerce within 30 days from the date on which Alexanyan enters a 
plea of guilty to related criminal charges at a Rule 11 hearing in the 
United States District Court for the District of Minnesota. Payment 
shall be made by wire transfer as 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, 
Alexanyan 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 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 Alexanyan. Accordingly, if 
Alexanyan should fail to pay the civil penalty in a timely manner, the 
undersigned may enter an Order denying all of Alexanyan's export 
privileges for a period of one year from the date of entry of this 
Order.
    Fourth, that for a period of five years from the date of this 
Order, Vladimir Alexanyan, 934 Mercedes Avenue, Los Altos, California 
94022 (``Alexanyan''), his successors or assigns, and, when acting for 
or on behalf of Alexanyan, 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'') that is subject to the Regulations and that is exported or to 
be exported from the United States to the People's Republic of China, 
or in any other activity subject to the Regulations that involves the 
People's Republic of China, including, but not limited to:
    A. Applying for, obtaining, or using any license, License 
Exception, or export control document that involves exports to the 
People's Republic of China;
    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 the 
People's Republic of China, or in any other activity subject to the 
Regulations that involves the People's Republic of China; or
    C. Benefitting in any way from any transaction involving any item 
exported or to be exported from the United States to the People's 
Republic of China that is subject to the Regulations, or in any other 
activity subject to the Regulations that involves the People's Republic 
of China.
    Fifth, that no person may, directly or indirectly, do any of the 
actions described below with respect to an item that is subject to the 
Regulations and that has been, will be, or is intended to be exported 
or reexported to the People's Republic of China:
    A. Export or reexport to or on behalf of the denied person any item 
subject to the Regulations from the United States to the People's 
Republic of China;
    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 the People's Republic of China, 
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 the 
People's Republic of China;
    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 
the People's Republic of China; 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 
the People's Republic of China 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 the 
People's Republic of China. For purposes of this paragraph, servicing 
means installation, maintenance, repair, modification or testing.
    Sixth, 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 Alexanyan 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.
    Seventh, that this Order shall be served on the Denied Person and 
on BIS, and shall be published in the Federal Register.
    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 13th day of January 2005.
Wendy L. Wysong,
Acting Assistant Secretary of Commerce for Export Enforcement.
[FR Doc. 05-1362 Filed 1-25-05; 8:45 am]
BILLING CODE 3510-DT-M