[Federal Register Volume 73, Number 27 (Friday, February 8, 2008)]
[Notices]
[Pages 7526-7527]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 08-521]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security


Action Affecting Export Privileges: DMA Med-Chem Corporation; In 
the Matter of DMA Med-Chem Corporation, Case No. 02-10

Order

    The Office of Antiboycott Compliance, Bureau of Industry and 
Security, U.S. Department of Commerce (``BIS''), having determined to 
initiate an administrative proceeding pursuant to Section 11(c) of the 
Export Administration Act of 1979, as amended (50 U.S.C. 2401-2420 
(2000)) (the ``Act'') \1\ and the Export Administration Regulations 
(currently codified as 15 CFR Parts 730-774 (2007)) (the 
``Regulations''), against DMA Med-Chem Corporation (``DMA''), a 
domestic concern, based on allegations set forth in the Proposed 
Charging Letter, dated April 17, 2006, that alleged that DMA committed 
one violation of the Regulations;
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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 Internal Emergency 
Economic Powers Act (50 U.S.C. 1701-1706 (2000)) (IEEPA). On 
November 13, 2000, the Act was reauthorized by Pub. L. No. 106-508 
(114 Stat. 2360 (2000)) and remained in effect through August 20, 
2001. Since August 21, 2001, the Act has been in lapse. Executive 
Order 13222 of August 17, 2001 (3 CFR 2001 Comp 783 (2002)), which 
has been extended by successive Presidential Notices, the most 
recent of which was August 15, 2007 (72 FR 46137 (August 16, 2007)), 
continues the Regulations in effect under IEEPA.
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    Specifically, the charge is:
    1. One Violation of 15 CFR 760.2(d)--Furnishing Information about 
Business Relationships with Boycotted Countries or Blacklisted Persons: 
During the year 2001, DMA engaged in a transaction involving the sale 
and/or transfer of goods or services (including information) from the 
United States to Syria. In connection with these activities, on one 
occasion, DMA, with intent to comply with, further or support an 
unsanctioned foreign boycott, furnished information concerning its or 
another person's business relationships with or in a boycotted country, 
an activity prohibited by Section 760.2(d) of the Regulations, and not 
excepted.
    BIS and DMA having entered into a Settlement Agreement pursuant to 
Section 766.18(a) of the Regulations whereby the parties have agreed to 
settle this matter in accordance with the terms and conditions set 
forth therein and the terms of the Settlement Agreement having been 
approved by me;
    It is therefore ordered that:
    First, a civil penalty of $2,400 is assessed against DMA. Payment 
shall be suspended for a period of two years from the date of entry of 
this Order and thereafter shall be waived, provided that, during the 
period of suspension, DMA has committed no violation of the Act and 
Regulations or any order issued thereunder.
    Second, for a period of two years from the date of entry of this 
Order, DMA Med-Chem Corporation (Great Neck, New York) (``Denied 
Person'') may not participate, directly or indirectly, in any way in 
any transaction involving any commodity, software or technology 
(collectively, ``item'') exported or to be exported from the United 
States to Bahrain, Iraq, Kuwait, Lebanon, Libya, Oman, Qatar, Saudi 
Arabia, Syria, the United Arab Emirates or the Republic of Yemen 
(collectively, the ``Territory'') that is subject to the Regulations, 
or in any other activity relating to the Territory that is subject to 
the Regulations, including, but not limited to:
    A. Applying for, obtaining, or using any license, License 
Exception, or export control document, relating to the Territory.
    B. Carrying on negotiations concerning, or ordering, buying, 
receiving, using, selling, delivering, storing, disposing of, 
forwarding, transporting, financing, other otherwise servicing in any 
way, any transaction involving any item exported or to be exported from 
the United States to the Territory that is subject to the Regulations, 
or in any other activity relating to the Territory 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 to the Territory that 
is subject to the Regulations, or in any other activity relating to the 
Territory subject to the Regulations.
    Third, 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 from the United States to the Territory;
    B. Take any action that facilitates the acquisition or attempted 
acquisition by

[[Page 7527]]

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 Territory, 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 
Territory;
    D. Obtain from the Denied Person in the Untied 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 Territory; 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 Territory, 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 Territory. For purposes of this 
paragraph, service means installation, maintenance, repair, 
modification or testing.
    Fourth, after notice and opportunity for comment as provided in 
Section 766.23 of the Regulations, any person, firm, corporation or 
business organization related to the Denied person 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.
    Fifth, 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.
    Sixth, the Proposed Charging Letter, the Settlement Agreement and 
this order shall be made available to the public, and a a copy of 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 14th day of January, 2008.
Darryl W. Jackson,
Assistant Secretary of Commerce for Export Enforcement.
[FR Doc. 08-521 Filed 2-7-08; 8:45 am]
BILLING CODE 3510-DT-M