[Federal Register Volume 77, Number 205 (Tuesday, October 23, 2012)]
[Notices]
[Pages 64795-64796]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-26058]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

[08-BIS-0005]


In the Matter of: Micei International, Respondent

Order Relating to Micei International

    Whereas, the Bureau of Industry and Security, U.S. Department of 
Commerce (``BIS''), notified Micei International, of Skopje, Macedonia 
(``Micei'') in 2008 that it initiated an administrative proceeding 
against Micei pursuant to Section 766.3 of the Export Administration 
Regulations (the ``Regulations''),\1\ and Section 13(c) of the Export 
Administration Act of 1979, as amended (the ``Act''),\2\ through the 
issuance of a Charging Letter to Micei in 2008 that alleges that Micei 
committed fourteen violations of the Regulations in 2003; \3\
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    \1\ The Regulations are currently codified in the Code of 
Federal Regulations at 15 CFR Parts 730-774 (2012). The alleged 
violations occurred in 2003. The governing provisions of the EAR are 
found in the 2003 version of the Code of Federal Regulations (15 CFR 
Parts 730-774). The 2012 Regulations set forth the procedures that 
apply to this matter.
    \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 August15, 2012 (77 FR . 49699 (Aug. 16, 2012)), 
has continued the Regulations in effect under the International 
Emergency Economic Powers Act (50 U.S.C. 1701, et seq.).
    \3\ See 74 FR 24,788 (May 26, 2009).
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    Whereas, an Administrative Law Judge (``ALJ'') previously issued a 
Recommended Decision and Order in this proceeding containing findings 
of fact and conclusions of law, including, inter alia, that Micei was 
in default under Section 766.7 of the Regulations, and the then-Acting 
Under Secretary of Commerce for Industry and Security affirmed the 
ALJ's recommended default order through a Final Decision and Order 
dated May 14, 2009 (the ``May 14, 2009 Order'');
    Whereas, Micei subsequently filed petitions for review of the May 
14, 2009 Order, with the U.S. Court of Appeals for the District of 
Columbia Circuit and submitted briefs raising various challenges to the 
order (Appellant/Petitioner Brief filed Nov. 16, 2009, and Reply Brief 
filed Dec. 30, 2009).\4\
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    \4\ See Micei International v. Department of Commerce, Nos. 09-
1155 and 09-1186 (D.C. Cir.).
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    Whereas, the May 14, 2009 Order became effective on May 26, 2009, 
but subsequently, on July 24, 2009, BIS issued an Order Staying 
Enforcement of Final Decision and Order Pending Appeal with regard to 
the May 14, 2009 Order; \5\
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    \5\ See FR 38,394 (August 3, 2009).
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    Whereas, on July 16, 2010, the U.S. Court of Appeals for the 
District of Columbia Circuit issued its Decision and Order transferring 
Micei's petition for review to the U.S. District Court for the District 
of Columbia.\6\ Accordingly, Micei's petition is currently pending as 
Civil Action Number 1:10-cv-01237 (JDB) (the ``petition for review'');
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    \6\ See Micei International v. Department of Commerce, 613 F.3d 
1147 (D.C. Cir. 2010).
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    Whereas, BIS and Micei 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;
    Whereas, the Settlement Agreement contains a provision that, if I 
approve the terms of the Settlement Agreement and issue this Order, the 
parties are required to jointly submit to the District Court within 
five days of my issuance of this Order a stipulation of dismissal with 
prejudice with regard to Micei's petition for review; and
    Whereas, I have approved the terms of such Settlement Agreement.
    It is therefore ordered:
    First, as set forth in the Settlement Agreement, Micei shall 
implement an Export Management and Compliance Program no later than six 
months from the effective date of this Order. Said Export Management 
and Compliance Program shall be in substantial compliance with the BIS 
compliance guidelines, which are available from the BIS Web site at 
http://www.bis.doc.gov/complianceandenforcement/emcp_guidelines.pdf, 
and which are incorporated herein by reference. A copy of Micei's 
Export Management and Compliance Program shall be submitted in English 
to the Department of Commerce, Bureau of Industry and Security, Office 
of Exporter Services, Export Management and Compliance Division, Attn: 
Tom Andrukonis, 14th St. & Pennsylvania Ave. NW., Washington, DC 20230 
(``BIS Export Management and Compliance Division'') no later than six 
months from the effective date of this Order.
    Second, as set forth in the Settlement Agreement, Micei shall 
complete two audits of its compliance with U.S. export control laws 
(including recordkeeping requirements), with respect to all exports or 
reexports that are subject to the Regulations. The results of the 
audits, including any relevant supporting materials, shall be submitted 
in English to the BIS Export Management and Compliance Division

[[Page 64796]]

at the address listed in the paragraph above. The first audit shall 
cover the period from January 1, 2012, through December 31, 2012, and 
the related report shall be due to the BIS Export Management and 
Compliance Division no later than January 31, 2013. The second audit 
shall cover the period from January 1, 2013, through December 31, 2013, 
and the related report shall be due to the BIS Export Management and 
Compliance Division no later than January 31, 2014. Said audits shall 
be in substantial compliance with the EMS sample audit module, which is 
available on the BIS Web site at http://www.bis.doc.gov/complianceandenforcement/revised_emcp_audit.pdf, and shall include an 
assessment of Micei's compliance with the Regulations. In addition, 
where said audits identify actual or potential violations of the 
Regulations, Micei shall promptly provide copies of the pertinent air 
waybills and other export control documents and supporting 
documentation to the BIS Export Management and Compliance Division.
    Third, as set forth in the Settlement Agreement, the full and 
timely implementation of the Export Management and Compliance Program, 
as set forth above, and the timely completion and submission of the 
audits, as set forth above, are hereby made conditions to the granting, 
restoration, or continuing validity of any export license, license 
exception, permission, or privilege granted, or to be granted, to 
Micei. Accordingly, if Micei should fail to fully or timely implement 
the Export Management and Compliance Program, or to timely complete and 
submit either of the audits as agreed to by the Parties and as set 
forth above, the undersigned may issue an Order denying all of Micei's 
export privileges under the Regulations for a period of one year from, 
respectively, the date by which the Export Management and Compliance 
Program is to be implemented or the date by which the results of the 
completed audits are to be submitted.
    Fourth, that the Charging Letter, Settlement Agreement and this 
Order shall be made available to the public following the dismissal 
with prejudice of Micei's petition for review, along with the order of 
dismissal with prejudice by the District Court of Micei's petition for 
review.
    Fifth, this Order shall become effective, upon entry of an order of 
dismissal with prejudice by the District Court of Micei's petition for 
review, shall constitute final agency action in this matter, and shall 
supersede and void the May 14, 2009 Order.

     Issued this 11th day of October 2012.
Eric L. Hirschhorn,
Under Secretary of Commerce for Industry and Security.
[FR Doc. 2012-26058 Filed 10-22-12; 8:45 am]
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