[Federal Register Volume 70, Number 41 (Thursday, March 3, 2005)]
[Notices]
[Pages 10356-10357]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-4056]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

Bureau of Industry and Security

[03-BIS-13]


Action Affecting Export Privileges; Chemical Industries 
Consolidated B.V. In the Matter of: Chemical Industries Consolidated 
b.v., Westboschlaan, 151A, 2265 EN Leidschendam, The Netherlands, 
Respondent; Order Relating to Chemical Industries Consolidated B.V.

    The Bureau of Industry and Security, U.S. Department of Commerce 
(``BIS'') having initiated an administrative proceeding against 
Chemical Industries Consolidated b.v. (``CIC''), 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. 2401-
2420 (2000)) (``Act''),\2\ by issuing a charging letter to CIC that 
alleged that CIC committed three violations of the Regulations. 
Specifically, the charges are:
---------------------------------------------------------------------------

    \1\ The charged violations occurred in 2002 and 2003. The 
Regulations governing the violations at issue are found in the 2002 
and 2003 versions of the Code of Federal Regulations (15 CFR parts 
730-774 (2002-2003)). The 2004 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 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.
---------------------------------------------------------------------------

    1. One Violation of 15 CFR 764.2(c)--Solicitation of the Unlicensed 
Export of Items to Iran: From on or about July 15, 2002, to on or about 
January 28, 2003, CIC solicited the export of gas processor parts, 
items subject both to the Regulations (EAR99 \3\) and the Iranian 
Transactions Regulations of the Treasury Department's Office of Foreign 
Assets Control (``OFAC'') and located in the United States, to Iran 
through the Netherlands without the authorization from OFAC required by 
section 746.7 of the Regulations.
---------------------------------------------------------------------------

    \3\ The term ``EAR99'' refers to items subject to the 
Regulations that are not listed on the Commerce Control List. See 15 
CFR 734.3(c).
---------------------------------------------------------------------------

    2. One Violation of 15 CFR 764.2(e)--Acting with Knowledge of a 
Violation: In connection with the solicitation referenced in paragraph 
1 above, CIC ordered the above-described items with knowledge that a 
violation of the Regulations was intended to occur in connection with 
the items.
    3. One Violation of 15 CFR 764.2(h)--Attempting To Evade the 
Provisions of the Regulations: In connection with the solicitation 
referenced in paragraph 1 above, CIC took action with the intent to 
evade the Regulations by urging the purported exporter to ship the 
items in question to the Netherlands from the United States, with the 
understanding that CIC would subsequently ship the items to Iran (a 
destination requiring an export license for these items).
    Whereas, BIS and CIC have 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
    Whereas, I have approved of the terms of such Settlement Agreement; 
It is therefore ordered:
    First, that for a period of five years from the date of entry of 
this Order, Chemical Industries Consolidated b.v., 151A, 2265 EN 
Leidschendam, The Netherlands, its successors or assigns, and when 
acting for or on behalf of CIC, 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 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 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.
    Third, 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 CIC 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.
    Fourth, that this Order does not prohibit any export, reexport, or 
other transaction subject to the Regulations

[[Page 10357]]

where the only items involved that are subject to the Regulations are 
the foreign-produced direct product of U.S.-origin technology.
    Fifth, that a copy of this Order shall be delivered to the United 
States Coast Guard ALJ Docketing Center, 40 Gay Street, Baltimore, 
Maryland 21202-4022, notifying that office that this case is withdrawn 
from adjudication, as provided by section 766.18 of the Regulations.
    Sixth, that the charging letter, the Settlement Agreement, and this 
Order shall be made available to the public and record of the case as 
described in section 766.22 of the Regulations.
    Seventh, that this Order shall be served on the Denied Person and 
on BIS, and shall be published in the Federal Register.
    This Order, which constitutes the final agency action in this 
matter, is effective immediately.

    Entered this 24th day of February, 2005.
Wendy L. Wysong,
Acting Assistant Secretary of Commerce for Export Enforcement.
[FR Doc. 05-4056 Filed 3-2-05; 8:45 am]
BILLING CODE 3510-DT-M