[Federal Register Volume 80, Number 29 (Thursday, February 12, 2015)]
[Notices]
[Pages 7839-7840]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-02912]


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 DEPARTMENT OF COMMERCE

Bureau of Industry and Security


Order Denying Export Privileges

    In the Matter of:

Maple Pacific Corporation, 26671 Sierra Vista, Mission Viejo, CA 
96292, Respondent;

Andrew Hsu, 26671 Sierra Vista, Mission Viejo, CA 96292, Related 
Person.

A. Denial of Export Privileges of Maple Pacific Corporation

    On February 6, 2012, in the U.S. District Court, Central District 
of California, Maple Pacific Corporation (``Maple Pacific''), was 
convicted of violating the International Emergency Economic Powers Act 
(50 U.S.C. 1701, et seq. (2006 & Supp. IV 2010)) (``IEEPA''). 
Specifically, Maple Pacific willfully exported and transshipped goods, 
namely, industrial parts used to maintain equipment in the steel 
manufacturing industry, from the United States to Iran without first 
obtaining from the United States Department of Commerce, Office of 
Foreign Assets Control, a license or written authorization for such 
export and transshipment, knowing such a license or authorization was 
required. Maple Pacific was sentenced to probation for two years, a 
$5,000 fine and $400 assessment.
    Section 766.25 of the Export Administration Regulations (``EAR'' or 
``Regulations'') \1\ provides, in pertinent part, that ``[t]he Director 
of the Office of Exporter Services, in consultation with the Director 
of the Office of Export Enforcement, may deny the export privileges of 
any person who has been convicted of a violation of the EAA, the EAR, 
of any order, license or authorization issued thereunder; any 
regulation, license, or order issued under the International Emergency 
Economic Powers Act (50 U.S.C. 1701-1706); 18 U.S.C. 793, 794 or 798; 
section 4(b) of the Internal Security Act of 1950 (50 U.S.C. 783(b)), 
or section 38 of the Arms Export Control Act (22 U.S.C. 2778).'' 15 CFR 
766.25(a); see also Section 11(h) of the EAA, 50 U.S.C. app. Sec.  
2410(h). The denial of export privileges under this provision may be 
for a period of up to ten (10) years from the date of the conviction. 
15 CFR 766.25(d); see also 50 U.S.C. app. Sec.  2410(h). In addition, 
Section 750.8 of the Regulations states that the Bureau of Industry and 
Security's Office of Exporter Services may revoke any Bureau of 
Industry and Security (``BIS'') licenses previously issued in which the 
person had an interest in at the time of his conviction.
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    \1\ The Regulations are currently codified in the Code of 
Federal Regulations at 15 CFR parts 730-774 (2014). The Regulations 
are issued pursuant to the Export Administration Act of 1979 (50 
U.S.C. app. Sec. Sec.  2401-2420 (2000)) (``the EAA'' or ``the 
Act''). Since August 21, 2001, the EAA 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 August 7, 2014 
(79 FR 46959 (August 11, 2014)), has continued the Regulations in 
effect under the International Emergency Economic Powers Act (50 
U.S.C. 1701, et seq. (2006 & Supp. IV 2010)).
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    BIS received notice of Maple Pacific's conviction for violating the 
IEEPA, and has provided notice and an opportunity for Maple Pacific to 
make a written submission to BIS, as provided in Section 766.25 of the 
Regulations. BIS has not received a submission from Maple Pacific. 
Based upon my review and consultations with BIS's Office of Export 
Enforcement, including its Director, and the facts available to BIS, I 
have decided to deny Maple Pacific's export privileges under the 
Regulations for a period of ten (10) years from the date of Maple 
Pacific's conviction. I have also decided to revoke all licenses issued 
pursuant to the Act or Regulations in which Maple Pacific had an 
interest at the time of its conviction.

B. Denial of Export Privileges of Related Person Andrew Hsu

    Pursuant to Sections 766.25(h) and 766.23 of the Regulations, the 
Director of BIS's Office of Exporter Services, in consultation with the 
Director of BIS's Office of Export Enforcement, may, in order to 
prevent evasion of a denial order, make a denial order applicable not 
only to the respondent, but also to other persons related to the 
respondent by ownership, control, position of responsibility, 
affiliation, or other connection in the conduct of trade or business.
    As provided in Section 766.23 of the Regulations, BIS gave notice 
to Andrew Hsu (``Hsu'') that his export privileges under the 
Regulations could be denied for up to ten (10) years due to his 
relationship with Maple Pacific and that BIS believed that naming Hsu 
as a person related to Maple Pacific would be necessary to prevent 
evasion of a denial order imposed against Maple Pacific. In providing 
such notice, BIS gave Hsu an opportunity to oppose its addition to the 
Maple Pacific Denial Order as a related party.
    Having received no submission from Hsu, I have decided, following 
consultations with BIS's Office of Export Enforcement, including its 
Director, to include name Hsu as a Related Person and make this Denial 
Order applicable to Hsu, thereby denying his export privileges for ten 
(10) years from the date of Maple Pacific's conviction. I have also 
decided to revoke all licenses issued pursuant to the Act or 
Regulations in which Hsu had an interest at the time of Maple Pacific's 
conviction. The 10-year denial period is scheduled to end on February 
6, 2022.
    Hsu is the sole owner of Maple Pacific and performed all aspects of 
Maple Pacific's operations. Therefore, Hsu is related to Maple Pacific 
within the meaning of Section 766.23. BIS also has reason to believe 
that Hsu should be added as a related person in order to prevent 
evasion of this Denial Order.
    Accordingly, it is hereby ordered:
    First, from the date of this Order until February 6, 2022, Maple 
Pacific Corporation, with a last known address of 26671 Sierra Vista, 
Mission Viejo, CA 96292, and when acting for or on its behalf, its 
successors, assigns, directors, officers, employees, agents, or 
representatives, and Andrew Hsu, with a last known address of 26671 
Sierra Vista, Mission Viejo, CA 96292, and when acting for or on his 
behalf, his successors, assigns, employees, agents, or representatives 
(each as ``Denied Person'' and collectively the ``Denied Persons'') may 
not, directly or indirectly, participate 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

[[Page 7840]]

    C. Benefitting 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, no person may, directly or indirectly, do any of the 
following:
    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 which 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, in addition to the Related Person named above, after notice 
and opportunity for comment as provided in section 766.23 of the 
Regulations, any other individual, firm, corporation, or other 
association or organization or other person related to a Denied Person 
by ownership, control, position of responsibility, affiliation, or 
other connection in the conduct of trade or business may also be made 
subject to the provisions of this Order if necessary to prevent evasion 
of this Order.
    Fourth, in accordance with Part 756 and Section 766.25(g) of the 
Regulations, Maple Pacific may file an appeal of the issuance of this 
Order against it with the Under Secretary of Commerce for Industry and 
Security. The appeal must be filed within 45 days from the date of this 
Order and must comply with the provisions of Part 756 of the 
Regulations.
    Fifth, in accordance with Part 756 and Section 766.23(c) of the 
Regulations, Hsu may file an appeal of naming him as a related person 
in this Order with the Under Secretary of Commerce for Industry and 
Security. This appeal must be filed within 45 days from the date of 
this Order and must comply with the provisions of Part 756 of the 
Regulations.
    Sixth, a copy of this Order shall be provided to Maple Pacific and 
Hsu and shall be published in the Federal Register.
    Seventh, this Order is effectively immediately and shall remain in 
effect until February 6, 2022.

    Issued this 5th day of February, 2015.
 Thomas Andrukonis,
 Acting Director, Office of Exporter Services.
[FR Doc. 2015-02912 Filed 2-11-15; 8:45 am]
BILLING CODE P