Document Headings

                    Document headings vary by document type but may contain                    the following:                  
                -                       the agency or agencies that issued and signed a document                    
                -                       the number of the CFR title and the number of each part                      the document amends, proposes to amend, or is directly                      related to                    
                -                       the agency docket number / agency internal file number                    
                -                       the RIN which identifies each regulatory action listed in                      the Unified Agenda of Federal Regulatory and Deregulatory                      Actions                    

                    See the                                          Document Drafting Handbook                                        for more details.                  

###### Department of Commerce

###### Bureau of Industry and Security

                    On April 28, 2023, in the U.S. District Court for the Northen District of California, Jonathan Yet Wing Soong (“Soong”), was convicted of violating the International Emergency Economic Powers Act (50 U.S.C. 1701,                     *et seq.*) (“IEEPA”). Specifically, Soong was convicted of knowingly and willfully exporting from the United States to Beihang University, an entity on the Department of Commerce's Entity List, EAR99 CIFER (Comprehensive Identification from Frequency Responses) software, a tool that allows a user to develop a dynamic model of an aircraft using system identification techniques, without having first obtained the required authorization from the Department of Commerce. As a result of his conviction, the Court sentenced Soong to 20 months of imprisonment, three years of supervised release, $100 assessment and $168,885 in restitution.                

                    Pursuant to section 1760(e) of the Export Control Reform Act (“ECRA”),[1]                                          the export privileges of any person who has been convicted of certain offenses,                           ( print page 88566)                        including, but not limited to, IEEPA, may be denied for a period of up to ten (10) years from the date of his/her conviction. 50 U.S.C. 4819(e) (Prior Convictions). In addition, any Bureau of Industry and Security (BIS) licenses or other authorizations issued under ECRA, in which the person had an interest at the time of the conviction, may be revoked.                     *Id.*

                    BIS received notice of Soong's conviction for violating IEEPA, and has provided notice and opportunity for Soong to make a written submission to BIS, as provided in section 766.25 of the Export Administration Regulations (“EAR” or the “Regulations”). 15 CFR 766.25.[2]                                          BIS has not received a written submission from Soong.                

                    Based upon my review of the record and consultations with BIS's Office of Exporter Services, including its Director, and the facts available to BIS, I have decided to deny Soong's export privileges under the Regulations for a period of 10 years from the date of Soong's conviction. The Office of Exporter Services has also decided to revoke any BIS-issued licenses in which Soong had an interest at the time of his conviction.[3] 

                    Accordingly, it is hereby                     *ordered:*

*First,*                     from the date of this Order until April 28, 2033, Jonathan Yet Wing Soong, with a last known address of Inmate Number: 03089-510, USP LOMPOC, U.S. Penitentiary, 3901 Klein Blvd., Lompoc, CA 93436, and when acting for or on his behalf, his successors, assigns, employees, agents or representatives (“the Denied Person”), 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, 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 engaging in any other activity subject to the Regulations; or

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 from any other activity subject to the Regulations.

*Second,*                     no person may, directly or indirectly, do any of the following:                

A. Export, reexport, or transfer (in-country) 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.

*Third,*                     pursuant to section 1760(e) of the Export Control Reform Act (50 U.S.C. 4819(e)) and sections 766.23 and 766.25 of the Regulations, any other person, firm, corporation, or business organization related to Soong 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 in order to prevent evasion of this Order.                

*Fourth,*                     in accordance with part 756 of the Regulations, Soong may file an appeal of this Order 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,*                     a copy of this Order shall be delivered to Soong and shall be published in the                     **Federal Register**                    .                

*Sixth,*                     this Order is effective immediately and shall remain in effect until April 28, 2033.                

John Sonderman,

Director, Office of Export Enforcement.

# Footnotes

1.                             ECRA was enacted on August 13, 2018, as part of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 and, as amended, is codified at 50 U.S.C. 4801-4852.                    
        Back to Citation      

2.                             The Regulations are currently codified in the Code of Federal Regulations at 15 CFR parts 730-774 (2022).                    
        Back to Citation      

3.                             The Director, Office of Export Enforcement, is the authorizing official for issuance of denial orders, pursuant to amendments to the Regulations (85 FR 73411, November 18, 2020).                    
        Back to Citation      

[FR Doc. 2023-28268 Filed 12-21-23; 8:45 am]

BILLING CODE 3510-DT-P