[Federal Register Volume 72, Number 167 (Wednesday, August 29, 2007)]
[Notices]
[Pages 49699-49700]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 07-4226]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

[06-BIS-14]


Action Affecting Export Privileges; Spector International, Inc.; 
In the Matter of: Spector International, Inc. d/b/a Norsal Export 
Limited, 27 Bethpage Drive, Monroe Township, NJ 08831, Respondent

Order Relating to Spector International, Inc. d/b/a Norsal Export Ltd.

    The Bureau of Industry and Security, U.S. Department of Commerce 
(``BIS'') has initiated an administrative proceeding against Spector 
International, Inc. doing business as Norsal Export Limited 
(``Norsal'') pursuant to Section 766.3 of the Export Administration 
Regulations (currently codified at 15 CFR Parts 730-774 (2007)) (the 
``Regulations''),\1\ and Section 13(c) of the Export Administration Act 
of 1979, as amended (50 U.S.C. app. Sec.  2401-2420 (2000)) (the 
``Act''),\2\ through issuance of a charging letter to Norsal that 
alleged that Norsal committed 44 violations of the Regulations. 
Specifically, the charges are:
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    \1\ The violations charged occurred between 2000 and 2003. The 
Regulations governing the violation at issue are found in the 2000 
through 2003 version of the Code of Federal Regulations (15 CFR 
parts 730-774 (2000-2003)). The 2007 Regulations govern the 
procedural aspects of this case.
    \2\ 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 successive Presidential 
Notices, the most recent being that of August 3, 2006 (71 Fed. Reg. 
44,551 (Aug. 7, 2006)), has continued the Regulations in effect 
under the International Emergency Economic Powers Act (50 U.S.C. 
Sec.  1701-1706 (2000)).
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Charges 1-14 15 CFR 764.2(a)--Export of Microwave Amplifiers Without 
the Required Licenses

    On 14 occasions, between on or about November 9, 2000 and January 
9, 2003, Norsal engaged in conduct prohibited by the Regulations by 
exporting or causing to be exported microwave amplifiers, items subject 
to the Regulations and classified under Export Control Classification 
Number (``ECCN'') 3A001.b.4, to the People's Republic of China 
(``China'') without the Department of Commerce license required by 
Sec.  742.4 of the Regulations. In so doing, Norsal committed 14 
violations Sec.  764.2(a) of the Regulations.

[[Page 49700]]

Charge 15 15 CFR 764.2(c)--Attempted Export of Microwave Amplifiers 
Without the Required License

    On or about March 13, 2003, Norsal attempted a violation of the 
Regulations by attempting to export microwave amplifiers, items subject 
to the Regulations and classified under ECCN 3A001.b.4, to China 
without the Department of Commerce license required by Sec.  742.4 of 
the Regulations. In so doing, Norsal committed one violation of Sec.  
764.2(c) of the Regulations.

Charges 16-30 15 CFR 764.2(e)--Selling Microwave Amplifiers With 
Knowledge of a Violation of the Regulations

    With respect to the exports or attempted exports as described in 
Charges 1-15 above, Norsal sold microwave amplifiers with the knowledge 
that a violation was about to occur or was intended to occur in 
connection with the microwave amplifiers. At all times relevant hereto, 
Norsal knew or had reason to know that the microwave amplifiers in 
question required a Department of Commerce license for export to China, 
and that the required license had not been obtained. In so doing, 
Norsal committed 15 violations of Sec.  764.2(e) of the Regulations.

Charges 31-44 15 CFR 764.2(g)--False Statement on Shipper's Export 
Declarations as to Authority To Export

    With respect to the exports or attempted exports as described in 
Charges 1-11 and 13-15, above, Norsal filed or caused to be filed 
Shipper's Export Declarations (``SEDs'') with the United States 
Government that contained false statements of fact. Specifically, 
Norsal filed or caused to be filed 14 SEDs that stated that the 
microwave amplifiers that were the subjects of the SEDs did not require 
licenses (``NLR''). This representation is false as at all times 
relevant to this case a Department of Commerce license was required to 
export the microwave amplifiers in question in this case to China. In 
so doing, Norsal committed 14 violations of Sec.  764.2(g) of the 
Regulations.
    Whereas, BIS and Norsal 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 a civil penalty of $462,00 is assessed against Norsal. 
Payment shall be suspended for a period of one year from the date of 
entry of this Order and thereafter shall be waived, provided that 
during the period of suspension, Norsal has committed no violation of 
the Act, or any regulation, order, or license issued thereunder.
    Second, for a period of twenty-five years from the date of entry of 
this Order, Spector International, Inc. doing business as Norsal Export 
Limited, 27 Bethpage Drive, Monroe Township, New Jersey 08831 
(``Norsal''), its successors or assigns, and when acting for or on 
behalf of Norsal, its representatives, agents, officers or employees 
(``Denied Person'') 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. Carry 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 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.
    Third, 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 facilitates 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.
    Fourth, 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 Norsal 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, 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.
    Sixth, that the charging letter, the Settlement Agreement, this 
Order, and the record of this case as defined by Section 766.20 of the 
Regulations shall be made available to the public.
    Seventh, that the administrative law judge shall be notified that 
this case is withdrawn from adjudication.
    Eighth, 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 21st day of August, 2007.
Wendy L. Wysong,
Acting Assistant Secretary of Commerce for Export Enforcement.
[FR Doc. 07-4226 Filed 8-28-07; 8:45 am]
BILLING CODE 3510-DT-M