[Federal Register Volume 70, Number 243 (Tuesday, December 20, 2005)]
[Notices]
[Pages 75447-75448]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-24234]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security


Action Affecting Export Privileges; Zhan Gao, Technology Business 
Services, University Laboratories, Allways, Inc., Donghua Xue

    In the Matter of Zhan Gao, 12731 Mill Heights, Herndon, VA 
20171; Respondent: and Technology Business Services, 12731 Mill 
Heights, Herndon, VA 20171; University Laboratories, 12731 Mill 
Heights, Herndon, VA 20171; Allways, Inc., 12731 Mill Heights, 
Herndon, VA 20171; Donghua Xue, 12731 Mill Heights, Herndon, VA 
20171; Related Persons

Order Denying Export Privileges

A. Denial of Export Privileges of Zhan Gao

    On March 5, 2004, in the U.S. District Court in the Eastern 
District of Virginia, Zhan Gao (``Gao'') was convicted of two felonies, 
including one violation of the International Emergency Economic Powers 
Act (50 U.S.C. 1701-1706 (2000)) (``IEEPA'') and one violation of the 
Internal Revenue Code (26 U.S.C. 7206 (2000)). As to the IEEPA count, 
Gao was found guilty of knowingly and willfully having exported and 
caused to be exported from the United States to the People's Republic 
of China, 80 microprocessors, which were Commerce Control List items, 
without obtaining the required license from the Department of Commerce. 
These items were controlled for national security reasons for export to 
China and valued at approximately $500,000. Gao was sentenced to seven 
months in prison.
    Section 11(h) of the Export Administration Act of 1979, as amended 
(currently codified at 50 U.S.C. app. Sec. Sec.  2491-2420 (2000)) 
(``Act'') \1\ and Section 766.25 of the Export Administration 
Regulations \2\ (``Regulations'') provide, in pertinent part, that 
``[t]he Director of Exporter Services, in consultation with the 
Director of the Office of Export Enforcement, may deny export 
privileges of any person who has been convicted of a violation of * * * 
IEEPA,'' for a period not to exceed 10 years from the date of 
conviction. 15 CFR 766.25(a) and (d). In addition, Section 750.8 of the 
Regulations states that BIS's Office of Exporter Services may revoke 
any BIS licenses previously issued in which the person had an interest 
in at the time of her conviction.
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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 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 2, 2005 (70 FR 45273, August 5, 2005), has 
continued the Regulations in effect under the IEEPA.
    \2\ The Regulations are currently codified at 15 CFR parts 730-
774 (2005).
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    I have received notice of Gao's conviction for violating the IEEPA, 
and have provided notice and an opportunity for Gao to make a written 
submission to the Bureau of Industry and Security as provided in 
Section 766.25 of the Regulations. Having

[[Page 75448]]

received no submission from Gao, I, following consultations with the 
Export Enforcement, including the Director, Office of Export 
Enforcement, have decided to deny Gao's export privileges under the 
Regulations for a period of 10 years from the date of Gao's conviction.

B. Denial of Export Privileges of Related Persons

    In addition, pursuant to Sections 766.25(h) and 766.23 of the 
Regulations, the Director, Office of Exporter Services, in consultation 
with the Director, Office of Export Enforcement, may take action to 
name persons related to the Respondent by ownership, control, position 
of responsibility, affiliation, or other connection in the conduct of 
trade or business in order to prevent evasion of the Order. On March 
18, 2005, I gave notice to Technology Business Services, University 
Laboratories, Allways, Inc. and Donghua Xue, Gao's husband, notifying 
them that their export privileges under the Regulations could be denied 
for up to 10 years as BIS believed these entities were related to Gao 
and including them in the Gao Order was necessary to prevent evasion. 
The basis for considering the addition of these entities was the fact 
that Gao had used these entities to conduct the illegal business that 
was subject of the criminal conviction and all are operated out of her 
home in Virginia.
    Donghue Xue responded to the notification and did not raise any 
objections to naming the above referenced related persons. I have 
therefore decided to name Technology Business Services, University 
Laboratories, Allways, Inc. and Donghua Xue as related persons to Zhan 
Gao, thereby denying their export privileges as well.
    I have also decided to revoke all licenses issued pursuant to the 
Act or Regulations in which Gao and Technology Business Services, 
University Laboratories, Allways, Inc. and Donghua Xue had an interest 
at the time of Gao's conviction. The 10-year denial period ends on 
March 5, 2014.
    Accordingly, it is hereby

Ordered

    I. Until March 5, 2014, Zhan Gao, 12731 Mill Heights, Herndon, VA 
20171, and when acting for or on her behalf, her employees, agents or 
representatives, (``the Denied Person'') and the following persons 
related to the Denied Person as defined by Section 766.23 of the 
Regulations, Technology Business Services, University Laboratories, 
Allways, Inc. and Donghua Xue, all at 12731 Mill Heights, Herndon, 
Virginia 20171, and when acting for or on his or their behalf, his or 
their employees, agents or representatives, (``the Related Persons'') 
(together, the Denied Persons and the Related Persons are ``Person 
Subject To This Order'') 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 Regulation.
    II. No person may, directly or indirectly, do any of the following:
    A. Export or reexport to or on behalf of the Persons Subject To 
This Order any item subject to the Regulations;
    B. Take any action that facilitates the acquisition or attempted 
acquisition by the Persons 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 the Persons 
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 the Persons Subject To This Order of any 
item subject to the Regulations that has been exported from the United 
States;
    D. Obtain from the Persons 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 the Persons Subject To 
This Order, or service any item, of whatever origin, that is owned, 
possessed or controlled by the Persons 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.
    III. In addition to the Related Persons named above, after notice 
and opportunity for comment as provided in section 766.23 of the 
Regulations, any other person, firm, corporation, or business 
organization related to Gao 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 if necessary 
to prevent evasion of the Order.
    IV. 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.
    V. This Order is effective immediately and shall remain in effect 
until March 5, 2014.
    VI. In accordance with Part 756 of the Regulations, Gao and any of 
the Related Persons may file an appeal of this Order with the Under 
Secretary of Commerce for Industry and Security. The appeal must be 
filed within 45 days from the date of this Order and must comply with 
the provisions of Part 756 of the Regulations.
    VII. A copy of this Order shall be delivered to Gao and each 
Related Person. This Order shall be published in the Federal Register.

    Dated: December 14, 2005.
Eileen M. Albanese,
Director, Office of Exporter Services.
[FR Doc. 05-24234 Filed 12-19-05; 8:45 am]
BILLING CODE 3510-DT-M