68306 Federal Register / Vol. 69, No. 226 / Wednesday, November 24, 2004 / Notices 

1The charged violations occurred from 1998 to 

2001. The Regulations governing the violations at 

issue are found in the 1998 to 2001 versions of the 

Code of Federal Regulations (15 CFR parts 730–774 

(1998–2001)). The 2004 Regulations set forth the 

procedures that apply to this matter.

2From 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 International 

Emergency Economic Powers Act (50 U.S.C. 1701–

1706 (2000)) (‘‘IEEPA’’). On November 13, 2000, the 

Act was reauthorized and it remained in effect 

through August 20, 2001. 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 the Notice 

of August 6, 2004 (69 FR 48763 (August 10, 2004)), 

has continued the Regulations in effect under the 

IEEPA.

3The term ‘‘ECCN’’ refer to an Export Control 

Classification Number. See Supp. 1 to 15 CFR 774.

4See Supplement No. 4 to part 744 of the 

Regulations.

5The term ‘‘EAR99’’ refers to items subject to the 

Regulations which are not listed on the Commerce 

Control List. See 15 CFR 734.3(c).

DEPARTMENT OF COMMERCE

Bureau of Industry and Security 

Action Affecting Export Privileges; 

Halear, Inc.

In the Matter of: Halear, Inc., 530 North 

Firestone Lane, Placentia, California 92870; 

Respondent

The Bureau of Industry and Security, 

United States Department of Commerce 

(‘‘BIS’’) having notified Halear, Inc., 

(‘‘Halear’’) of its intention to initiate an 

administrative proceeding against 

Halear pursuant to section 766.3 of the 

Export Administration Regulations 

(currently codified at 15 CFR parts 730–

774 (2004)) (‘‘Regulations’’),1 and 

section 13(c) of the Export 

Administration Act of 1979, as amended 

(50 U.S.C. app. 2401–2420 (2000)) 

(‘‘Act’’),2 based on the proposed 

charging letter issued to Halear that 

alleged that Halear, during the time 

period of 1998 to 2001, doing business 

as Preston Scientific, committed nine 

violations of the Regulations. 

Specifically, the charges are:

1. 15 CFR 764.2(a)—Export of an 

Amplifier to India Without the Required 

Department of Commerce License: On or 

about November 30, 1998, Halear export 

an amplifier (ECCN 3A992) 3 from the 

United States to an organization in India 

on BIS’ Entity List 4 without the 

Department of Commerce license 

required by section 744.11 of the 

Regulations.

2. 15 CFR 764.2(e)—Selling and 

Transferring an Item With Knowledge a 

Violation of the Regulations Would 

Occur: On or about November 30, 1998, 

Halear sold and transferred the 

amplifier referenced in Paragraph One 

above with knowledge that a violation 

of the Regulations would occur. 

Specifically, Halear sold and transferred 

the amplifier to an organization in India 

on BIS’ Entity List when Halear know 

that the required Department of 

Commerce license would not be 

obtained. 

3. 15 CFR 764.2(g)—False Statement 

on a Shipper’s Export Declaration 

Concerning Authority to Export: On or 

about December 1, 1998, in connection 

with the transaction referenced in 

Paragraph One above, Halear filed or 

caused to be filed a Shipper’s Export 

Declaration with the U.S. Government 

for the export of the amplifier to an 

organization in India on BIS’ Entity List 

that stated the amplifier qualified for 

export from the United States as NLR 

(‘‘No License Required’’). This statement 

was false because, as described in 

Paragraph One above, a Department of 

Commerce license was required to 

export the amplifier.

4. 15 CFR 764.2(g)—False Statement 

to an Office of Export Enforcement 

Special Agent in the Course of an 

Investigation: On or about January 25, 

2001, in connection with an ongoing 

BIS, Office of Export Enforcement 

(‘‘OEE’’) investigation concerning the 

transaction referenced in Paragraph One 

above, Halear made a false statement to 

OEE investigators. Specifically, Halear 

stated to OEE investigators that the 

export of the amplifier had been made 

prior to the imposition of sanctions 

against India and Pakistan on November 

19, 1998, that gave rise to the license 

requirements in this case. This 

statement was false because the export 

was not made until after the imposition 

of the sanctions. 

5. 15 CFR 764.2(a)—Export of a 

Connector Socket Without the Required 

Department of Commerce License: On or 

about February 26, 1999, Halear 

exported a connector socket (EAR99) 5

from the United States, through a 

distributor in India, to an organization 

in India on BIS’ Entity List without the 

Department of Commerce license 

required by section 744.11 of the 

Regulations.

6. 15 CFR 764.2(e)—Selling and 

Transferring an Item With Knowledge a 

Violation of the Regulations Would 

Occur: On or about February 26, 1999, 

Halear sold and transferred the 

connector socket referenced in 

Paragraph Five above with knowledge 

that a violation of the Regulations 

would occur. Specifically, Halear sold 

and transferred the connector socket to 

an organization in India on BIS’ Entity 

List when Halear knew that the required 

Department of Commerce license would 

not be obtained. 

7. 15 CFR 764.2(a)—Export of Spare 

Parts without the Required Department 

of Commerce License: On or about July 

29, 1999, Halear exported spare parts 

(EAR99) from the United States, through 

a distributor in India, to an organization 

in India on BIS’ Entity List without 

obtaining a license from the Department 

of Commerce as required by section 

744.11 of the Regulations. In so doing, 

Halear committed one violation of 

section 764.2(a) of the Regulations. 

8. 15 CFR 764.2(e)—Selling and 

Transferring Items With Knowledge a 

Violation of the Regulations Would 

Occur: On or about July 29, 1999, Halear 

sold and transferred the spare parts 

referenced in Paragraph Seven above 

with knowledge that a violation of the 

Regulations would occur. Specifically, 

halear sold and transferred the spare 

parts to an organization in India on BIS’

Entity List when Halear knew that the 

required Department of Commerce 

license would not be obtained. 

9. 15 CFR 764.2(g)—False Statement 

to an Office of Export Enforcement 

Special Agent in the Course of an 

Investigation: On or about January 25, 

2001, in connection with an ongoing 

BIS, OEE investigation concerning the 

transactions referenced in Paragraphs 

Five and Seven above, Halear made a 

false statement to OEE investigators. 

Specifically, Halear stated to OEE 

investigators that he had not shipped 

any items to India since December 1998. 

This statement was false because Halear 

had exported items to India after 

December 1998, as described in 

Paragraphs Five and Seven above.

BIS and Halear having entered into a 

Settlement Agreement pursuant to 

section 766.18(a) of the Regulations 

whereby they 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:

First, that a civil penalty of $60,000 is 

assessed against Halear which shall be 

paid to the U.S. Department of 

Commerce within 30 days from the date 

of entry of this Order. 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, 

Halear will be assessed, in addition to 

the full amount of the civil penalty and

Federal Register / Vol. 69, No. 226 / Wednesday, November 24, 2004 / Notices 68307

1The charged violations occurred from 1998 to 

2001. The Regulations governing the violations at 

issue are found in the 1998 to 2001 versions of the 

Code of Federal Regulations (15 CFR parts 730–774 

(1998–2001)). The 2004 Regulations set forth the 

procedures that apply to this matter.

2From 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 International 

Emergency Economic Powers Act (50 U.S.C. 1701–

1706 (2000)) (‘‘IEEPA’’). On November 13, 2000, the 

Act was reauthorized and it remained in effect 

through August 20, 2001. 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 the Notice 

of August 6, 2004 (69 FR 48763 (August 10, 2004)), 

has continued the Regulations in effect under the 

IEEPA.

3The term ‘‘ECCN’’ refers to an Export Control 

Classification Number. See Supp. 1 to 15 CFR 774.

4See Supplement No. 4 to Part 744 of the 

Regulations.

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 Halear. Accordingly, if 

Halear should fail to pay the civil 

penalty in a timely manner, the 

undersigned may enter an Order 

denying all of Halear’s export privileges 

for a period of one year from the date 

of entry of this Order. 

Fourth, that for a period of three years 

from the date of this Order, Halear, Inc., 

530 North Firestone Lane, Placentia, 

California, 92870 (‘‘Halear’’), and when 

acting for or on behalf of Halear, its 

representatives, agents, assigns or 

employees (‘‘denied person’’) may not, 

directly or indirectly, participate in any 

way in 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 facilities 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 

organizations related to Halear by 

affiliation, ownership, control, or 

position of responsibility in the conduct 

of trade or related services may also be 

subject to the provisions of this 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 this Order shall be served 

on the Denied Person and on BIS, and 

shall be published in the Federal 

Register.

Ninth, that the proposed charging 

letter, the Settlement Agreement, and 

this Order shall be made available to the 

public. 

This order, which constitutes the final 

agency action in this matter, is effective 

immediately.

Entered this 18th day of November 2004. 

Julie L. Salcido, 

Acting Deputy Assistant Secretary of 

Commerce for Export Enforcement.

[FR Doc. 04–25987 Filed 11–23–04; 8:45 am] 

BILLING CODE 3510–DT–M

DEPARTMENT OF COMMERCE

Bureau of Industry and Security 

Action Affecting Export Privileges; 

Order Relating to Bernard A. Spear

In the Matter of: Bernard A. Spear, 530 

North Firestone Lane, Placentia, California 

92870, Respondent

The Bureau of Industry and Security, 

United States Department of Commerce 

(‘‘BIS’’) having notified Bernard A. 

Spear (‘‘Spear’’) of its intention to 

initiate an administrative proceeding 

against Spear pursuant to Section 766.3 

of the Export Administration 

Regulations (currently codified at 15 

CFR parts 730–774 (2004)) 

(‘‘Regulations’’),1 and section 13(c) of 

the Export Administration Act of 1979, 

as amended (50 U.S.C. app. sections 

2401–2420 (2000)) (‘‘Act’’),2 based on 

the proposed charging letter issued to 

Spear that alleged that, during the time 

period of 1998 to 2001, Spear, as 

President of Halear, Inc., doing business 

as Preston Scientific, in his individual 

capacity committed nine violations of 

the Regulations. Specifically, the 

charges are:

1. 15 CFR 764.2(a)—Export of an 

Amplifier to India Without the Required 

Department of Commerce License: On or 

about November 30, 1998, Spear 

exported an amplifier (ECCN 3A992) 3

from the United States to an 

organization in India on BIS’ Entity 

List 4 without the Department of 

Commerce license required by Section 

744.11 of the Regulations.

2. 15 CFR 764.2(e)—Selling and 

Transferring an Item With Knowledge a 

Violation of the Regulations Would 

Occur: On or about November 30, 1998, 

Spear sold and transferred the amplifier