[Federal Register Volume 74, Number 20 (Monday, February 2, 2009)]
[Notices]
[Pages 5812-5813]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-2170]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

[08-BIS-0006]


Action Affecting Export Privileges; Elecmat, Inc.; In the Matter 
of: Elecmat, Inc., 390 Utah Street, San Francisco, CA 94103, 
Respondent; Order Relating to Elecmat, Inc.

    The Bureau of Industry and Security, U.S. Department of Commerce 
(``BIS'') has initiated an administrative proceeding against Elecmat, 
Inc. (hereinafter referred to as ``Elecmat'') pursuant to Section 766.3 
of the Export Administration Regulations (``Regulations'') \1\ and 
Section 13(c) of the Export Administration Act of 1979, as amended 
(``Act''), \2\ through issuance of a charging letter to Elecmat that 
alleged that Elecmat committed 39 violations of the Regulations. 
Specifically, the charges are:
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    \1\ The Regulations are currently codified in the Code of 
Federal Regulations at 15 CFR Parts 730-774 (2008). The charged 
violations occurred in 2003 through 2006. The Regulations governing 
the violations at issue are found in the 2003 through 2006 versions 
of the Code of Federal Regulations (15 CFR parts 730-774 (2003-
2006)). The 2008 Regulations govern the procedural aspects of this 
case.
    \2\ 50 U.S.C. app. Sec. Sec.  2401-2420 (2000). 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)), which 
has been extended by successive Presidential Notices, the most 
recent being that of July 23, 2008 (73 FR 43,603 (July 25, 2008)), 
has continued the Regulations in effect under the International 
Emergency Economic Powers Act (50 U.S.C. 1701-1706 (2000)).
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Charge 1: 15 CFR 764.2(d)--Conspiracy To Export Items From the United 
States to Taiwan Without the Required License

    Beginning in or about 2003 and continuing through on or about July 
29, 2006, Elecmat conspired and acted in concert with others, known and 
unknown, to violate the Regulations and to bring about an act that 
constitutes a violation of the Regulations. The purpose of the 
conspiracy was to export items from the United States to Taiwan without 
the required U.S. Government authorization. Pursuant to Sections 742.2 
and 742.3 of the Regulations, authorization was required from the 
Department of Commerce before certain chemicals, metals, and electronic 
components, items subject to the Regulations and classified under 
Export Control Classification Numbers (``ECCNs'') 1C227, 1C229, 1C231, 
1C234, 1C240, and 1C350, could be exported from the United States to 
Taiwan.
    In furtherance of the conspiracy, the conspirators, including 
Elecmat, participated in a scheme in which a Taiwan company requested 
that Elecmat procure specific items from U.S. suppliers and export them 
to Taiwan. The Taiwan company instructed Elecmat not to tell U.S. 
suppliers that Elecmat would export the items. Pursuant to this 
instruction, Elecmat procured the items and exported them to Taiwan 
without the required license. In so doing, Elecmat committed one 
violation of Section 764.2(d) of the Regulations.

[[Page 5813]]

Charges 2-19: 15 CFR 764.2(a)--Engaging in Prohibited Conduct by 
Exporting Certain Chemicals, Metals and Electronic Components Without 
the Required License

    On 18 occasions between on or about August 13, 2003 and on or about 
May 13, 2006, Elecmat engaged in conduct prohibited by the Regulations 
by exporting items subject to the Regulations to Taiwan without the 
required Department of Commerce licenses. Specifically, Elecmat 
exported certain chemicals, metals, and electronic components, 
classified under ECCNs 1C227, 1C229, 1C231, 1C234, and 1C240, to an 
affiliated company in Taiwan without the Department of Commerce 
licenses required by Section 742.3 of the Regulations. In so doing, 
Elecmat committed 18 violations of Section 764.2(a) of the Regulations.

Charge 20: 15 CFR 764.2(a)--Engaging in Prohibited Conduct by Exporting 
Certain Chemicals, Metals and Electronic Components Without the 
Required License

    On one occasion on or about April 15, 2006, Elecmat engaged in 
conduct prohibited by the Regulations by exporting sodium fluoride, an 
item subject to the Regulations and classified under ECCN 1C350, to 
Taiwan without the Department of Commerce license required by Section 
742.2 of the Regulations. In so doing, Elecmat committed one violation 
of Section 764.2(a) of the Regulations.

Charges 21-39: 15 CFR 764.2(e)--Acting with Knowledge of a Violation

    On 19 occasions, between on or about August 13, 2003 and on or 
about May 13, 2006, in connection with the transactions described in 
Charges 2-25, above, Elecmat ordered, bought, sold, transported, and 
forwarded certain chemicals, metals, and electronic components, items 
that are subject to the Regulations, with knowledge that violations of 
the Regulations were about to occur or was intended to occur in 
connection with the items. Specifically, Elecmat had knowledge that 
these items required a license for export to Taiwan and that they were 
being exported without the required licenses. Elecmat had previously 
obtained export licenses from the Department of Commerce for exports of 
similar items to Taiwan, had been informed by a supplier that certain 
similar items could not be sold for export, had been informed by 
another supplier and an affiliated Taiwan company that the export of 
certain similar items required a license. In so doing, Elecmat 
committed 19 violations of Section 764.2(e) of the Regulations.
    Whereas, BIS and Elecmat 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 twenty years from the date of entry of 
this Order, Elecmat, Inc., 390 Utah Street, San Francisco, CA 94103, 
(``Elecmat''), its successors or assigns, and, when acting for or on 
behalf of Elecmat, its officers, representatives, agents or employees 
(``Denied Person(s)'') 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.
    Second, that no person may, directly or indirectly, do any of the 
actions described below with respect to an item that is subject to the 
Regulations that has been, will be, or is intended to be exported or 
reexported from the United States:
    A. Export or reexport to or on behalf of a Denied Person any item 
subject to the Regulations;
    B. Take any action that facilitates the acquisition or attempted 
acquisition by a 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 a 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 a Denied Person of any item subject to 
the Regulations that has been exported from the United States;
    D. Obtain from a 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 that is owned, possessed or controlled by a Denied Person, or 
service any item, of whatever origin, that is owned, possessed or 
controlled by a 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 Elecmat 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 the charging letter, amended charging letter, the 
Settlement Agreement, and this Order, and the record of the cases as 
defined by Section 766.20 of the Regulations shall be made available to 
the public.
    Fifth, that the Administrative Law Judge shall be notified that 
this case is withdrawn from adjudication.
    Sixth, 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 26th day of January 2009.
Kevin Delli-Colli,
Acting Assistant Secretary for Export Enforcement.
[FR Doc. E9-2170 Filed 1-30-09; 8:45 am]
BILLING CODE 3510-DT-P