[Federal Register Volume 72, Number 159 (Friday, August 17, 2007)]
[Notices]
[Pages 46210-46212]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 07-4035]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

[Docket No.: 06-BIS-17]


Action Affecting Export Privileges; Mr. Qing Chang Jiang; In the 
Matter of: Mr. Qing Chang Jiang, 10677 C Rosewood Road, Cupertino, CA 
95014, Respondent; Order Relating to Qing Chang Jiang

    The Bureau of Industry and Security, U.S. Department of Commerce 
(``BIS'') has initiated an administrative proceeding against Qing Chang 
Jiang (``Jiang'') pursuant to Section 766.3 of the Export 
Administration Regulations (currently codified at 15 CFR Parts 730-774 
(2007)) (the ``Regulations''),\1\ and Section 13(c) of the Export 
Administration Act of 1979, as amended (50 U.S.C. app. 2401-2420 
(2000)) (the ``Act''),\2\ through issuance of a charging letter to 
Jiang that alleged that Jiang committed 3 violations of the 
Regulations. Specifically, the charges are:
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    \1\ The violations alleged to have been committed occurred in 
2001 and 2002. The Regulations governing the violations at issue are 
found in the 2001-2002 versions of the Code of Federal Regulations 
(15 CFR parts 730-774 (2001-2002)). The 2007 Regulations establish 
the procedures that apply to this matter.
    \2\ 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 successive Presidential 
Notices, the most recent being that of August 3, 2006 (71 FR 44,551 
(Aug. 7, 2006)), has continued the Regulations in effect under the 
International Emergency Economic Power Act (50 U.S.C. 1701-1706 
(2000)).

    Charge 1: 15 CFR 764.2(d)--Conspiracy to Export Microwave 
Amplifiers to China without the required Department of Commerce 
License.
    Beginning in or about September 2001 and continuing into or 
about May 2002, Jiang conspired and acted in concert with others, 
known and unknown, to bring about or to do an act that constitutes a 
violation of the Regulations. Specifically, Jiang conspired to 
export microwave amplifiers from the United States to the People's 
Republic of China (``China'') without the required Department of 
Commerce license. The goal of the

[[Page 46211]]

conspiracy was to obtain microwave amplifiers on behalf of a Chinese 
end-user and to export those microwave amplifiers to China. In 
furtherance of the conspiracy, Jiang acquired the microwave 
amplifiers from a U.S. company and then exported them from the 
United States to China. The microwave amplifiers were items subject 
to the Regulations and were classified under export control 
classification number (``ECCN'') 3A001. Contrary to Section 742.4 of 
the Regulations, no Department of Commerce license was obtained for 
the export of amplifiers from the United States to China. In do 
doing, Jiang committed one violation of Section 764.2(d) of the 
Regulations.
    Charge 2: 15 CFR 764.2(a): Exporting Microwave Amplifiers 
without the required Department of Commerce License.
    On or about May 22, 2002, Jiang engaged in conduct prohibited by 
the Regulations by exporting microwave amplifiers, items subject to 
the Regulations and classified under ECCN 3A001, from the Untied 
States to China without obtaining a license from the Department of 
Commerce as required by Section 742.4 of the Regulations. In so 
doing, Jiang committed one violation of Section 764.2(a) of the 
Regulations.
    Charge 3: 15 CFR 764.2(e): Acting with knowledge that a 
violation of the regulations would occur.
    In connection with the transaction referenced about, Jiang 
ordered or transferred microwave amplifiers that were to be exported 
from the United States with knowledge that a violation of the 
Regulations would occur. Specifically, Jiang has knowledge that a 
license was required for the export of Jiang was advised by an 
individual in China that the items in question were classified as 
ECCN 3A001 and subject to U.S. export regulations. Furthermore, 
Jiang had knowledge of the Regulations, as Jiang has met with 
officials from BIS on several occasions to discuss the Regulations 
and the export of microwave amplifiers to China. In addition, Jiang 
submitted an export application to the Department of Commerce for 
the microwave amplifiers described above and exported those 
amplifiers during the pendency of that application. As such, Jiang, 
at all relevant times, knew that the items required a license if 
exported to China and that no such license would be obtained. In so 
doing, Jiang committed one violation of Section 764.2(e) of the 
Regulations.

    Whereas, BIS and Jiang 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 a civil penalty of $17,000 is assessed against Jiang, 
of which $500 shall be paid to the U.S. Department of Commerce not 
later than November 1, 2007; $500 shall be paid to the U.S. Department 
of Commerce not later than February 1, 2008; $5,000 shall be paid to 
the U.S. Department of Commerce not later than May 1, 2008; and the 
balance of $11,000 shall be paid to the U.S. Department of Commerce not 
later than August 1, 2008. 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, 
Jiang 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 Jiang. Accordingly, if Jiang 
should fail to pay the civil penalty in a timely manner, the 
undersigned may enter an Order denying all of Jiang's export privileges 
under the Regulations 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 entry of 
this Order, Qing Chang Jiang, 10677 C Rosewood Road, Cupertino, CA 
95014, and, when acting for or on behalf of Jiang, his representatives, 
agents, assigns, 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. 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;
    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 Jiang 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.
    Eighth, that the charging letter, the Settlement Agreement, this 
Order, and the record of this case as defined by Section 766.20 of the 
Regulations shall be made available to the public.
    Ninth, that the administrative law judge shall be notified that 
this case is withdrawn from adjudication.
    Tenth, that this Order shall be served on the Denied Person and on 
BIS, and

[[Page 46212]]

shall be published in the Federal Register.
    This Order, which constitutes the final agency action in this 
matter, is effective immediately.

    Dated: Entered this 6th day of August, 2007.
Darryl W. Jackson,
Assistant Secretary of Commerce for Export Enforcement.
[FR Doc. 07-4035 Filed 8-16-07; 8:45 am]
BILLING CODE 3510-DT-M