[Federal Register Volume 71, Number 129 (Thursday, July 6, 2006)]
[Notices]
[Pages 38365-38366]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-6000]



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DEPARTMENT OF COMMERCE

Bureau of Industry and Security


Action Affecting Export Privileges; Universal Technology, Inc.

    In the Matter of: Universal Technology, Inc., 125 Gaither Drive, 
Mount Laurel, NJ 08054, Respondent.

Order Relating to Universal Technology, Inc.

    The Bureau of Industry and Security, U.S. Department of Commerce 
(``BIS'') has notified Universal Technology, Inc. (hereinafter referred 
to as ``UTI''), of its intention to initiate an administrative 
proceeding against UTI pursuant to section 766.3 of the Export 
Administration Regulations (currently codified at 15 CFR parts 730-774 
(2006)) (``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 proposed charging letter to UTI that alleged 
that UTI committed 49 violations of the Regulations. Specifically, the 
charges are:
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    \1\ The violations charged are alleged to have occurred from 
2000 through 2004. The Regulations governing the violations at issue 
are found in the 2000-2004 versions of the Code of Federal 
Regulations (15 CFR Parts 730-774 (2000-2004)). The 2006 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 C.F.R., 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 C.F.R., 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.
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    1. 17 Violations of 15 CFR 764.2(a)--Exporting electronic 
Components to the People's Republic of China without the Required 
Licenses: On 17 occasions, between on or about July 21, 2000 and on or 
about April 21, 2004, UTI engaged in conduct prohibited by the 
Regulations by exporting or causing to be exported electronic 
components classified under Export Control Classification Number 
(``ECCN'') 3A001 to the People's Republic of China (``PRC'') without 
the Department of Commerce (the ``Department'') licenses required by 
Section 742.4 of the Regulations.
    2. 17 Violations of 15 CFR 764.2(e)--Exporting Electronic 
Components to the People's Republic of China With Knowledge That 
Violations Would Occur: In connection with the transactions described 
above, UTI caused the export of electronic components to the PRC with 
knowledge that violations of the Regulations would occur. Specifically, 
UTI had knowledge that Department of Commerce licenses were required to 
export the electronic components from the United States to the PRC and 
UTI caused the export of the items with knowledge that such licenses 
would not be obtained.
    3. 15 Violations of 15 CFR 764.2(e)--False Statement on Shipper's 
Export Declarations Concerning Authority to Export: In connection with 
15 exports of electronic components subject to the Regulations to the 
PRC described above, UTI made false statements to the U.S. Government 
in connection with the submission of export control documents. 
Specifically UTI filed or caused to be filed with the U.S. Government 
Shipper's Export Declarations stating that the exports did not require 
Department of Commerce licenses (``NLR'' or ``No License Required''). 
These statements were false because licenses were required to export 
these items.
    Whereas, BIS and UTI have 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
    Whereas, I have approved of the terms of such Settlement Agreement; 
It is therefore ordered:
    First, that a civil penalty of $170,000 is assessed against 
Universal Technology, Inc., which shall be paid to the U.S. Department 
of Commerce upon 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, 
UTI 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 failure to make timely payment of the civil penalty set 
forth above shall be deemed to be a breach of this Order, and the 
Department of Commerce preserves its right in the event of such a 
breach to pursue whatever remedies are available to it by law, 
including but not limited to its ability to pursue administrative 
sanctions based on the 49 violations set forth herein and any other 
pertinent violations. The payment of the civil penalty is guaranteed by 
Mr. Terry Tengfang Li (also known as ``Terry Li''), in his individual 
capacity, and Ms. Nei-Chien CHu (also known as ``Pearl Li''), in her 
individual capacity, and Mr. Terry Tengfan Li, Ms. Nei-Chien Chu and 
UTI are jointly and severally liable for the payment of the penalty.
    Fourth, for a period of 20 years from the date of entry of the 
Order, Universal Technology, Inc., 125 Gaither Drive, Mount Laurel, NJ 
08054, its successors or assigns, and when acting for or on behalf of 
UTI, its representatives, agents, officers or employees (``Denied 
Person'') may not, directly or indirectly, participate in any way in 
any transaction involving any commodity, software, 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. Benefiting 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.
    Fifth, 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;

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    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.
    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 UTI 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.
    Seventh, 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.
    Eight, that the proposed charging letter, the Settlement Agreement, 
and this Order shall be made available to the public.
    Ninth, that this Order shall be served on the Denied Person, and 
shall be published in the Federal Register.
    This Order, which constitutes the final agency action in this 
matter, is effective immediately.

    Entered this 23rd day of June 2006.
Darryl Jackson,
Assistant Secretary of Commerce for Export Enforcement.
[FR Doc. 06-6000 Filed 7-5-06; 8:45 am]
BILLING CODE 3510-DT-M