[Federal Register Volume 70, Number 164 (Thursday, August 25, 2005)]
[Notices]
[Pages 49910-49911]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-16885]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

Bureau of Industry and Security

[Docket No. 04-BIS-14]


Action Affecting Export Privileges; Sunford Trading, Ltd.; In the 
Matter of: Sunford Trading Ltd., Room 2208, 22/F, 118 Connaught Road 
West, Hong Kong, China, Respondent; Order Relating to Sunford Trading, 
Ltd.

    The Bureau of Industry and Security, U.S. Department of Commerce 
(``BIS'') has initiated an administrative proceeding against Sunford 
Trading, Ltd. (``Sunford'') pursuant to Section 766.3 of the Export 
Administration Regulations (currently codified at 15 CFR parts 730-774 
(2005)) (``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\ through issuance of a charging letter to Sunford 
that alleged that Sunford committed three violations of the 
Regulations. Specifically, the charges are:
---------------------------------------------------------------------------

    \1\ The violations charged occurred during 1999. The Regulations 
governing the violations at issue are found in the 1999 version of 
the Code of Federal Regulations (15 CFR parts 730-774 (1999)). The 
2005 Regulations establish the procedures that apply to this matter.
    \2\ From 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.
---------------------------------------------------------------------------

    1. One violation of 15 CFR 764.2(e)--Ordering, Buying, Financing, 
and/or Forwarding Items to China With the Knowledge That a Violation of 
the Regulations Will Occur. Beginning on or about November 23, 1998 and 
continuing to on or about July 20, 1999, Sunford ordered, bought, 
financed, and/or forwarded an industrial hot press furnace to the 
Beijing Research Institute of Materials and Technology (hereinafter, 
``BRIMT'') in China with knowledge that a violation of the Regulations 
would occur. Specifically, at the time Sunford ordered, bought, 
financed, and/or forwarded the furnace, it knew or had reason to know 
that a Department of Commerce license was required for export to BRIMT 
under Section 744.3 of the Regulations, and that such license would not 
be obtained.
    2. One violation of 15 CFR 764.2(d)--Conspiring To Export an 
Industrial Furnace to China Without the Required U.S. Government 
Authorization. Beginning on or about November 23, 1998 and continuing 
to on or about July 20, 1999, Sunford conspired or acted in concert 
with others, known and

[[Page 49911]]

unknown, to bring about acts that constituted a violation of the 
Regulations when it agreed to participate in the export of the furnace 
referenced above to BRIMT in China without the Department of Commerce 
license required by Section 744.3 of the Regulations. In furtherance of 
the conspiracy, Sunford and its co-conspirators agreed to conceal the 
identity of the actual end-user and of the item being exported in an 
attempt to circumvent the license requirement described in Section 
744.3 of the Regulations.
    3. One violation of 15 CFR 764.2(b)--Causing an Export to China 
Without the Required Department of Commerce License. Beginning on or 
about November 23, 1998 and continuing to on or about July 20, 1999, 
Sunford caused the export of the furnace described above to BRIMT in 
China without the required Department of Commerce license. 
Specifically, Sunford ordered, bought, financed, and/or forwarded the 
industrial furnace described above, thereby causing the furnace to be 
exported to BRIMT in China despite the fact that the Department of 
Commerce license required by Section 744.3 of the Regulations had not 
been obtained.
    Whereas, BIS and Sunford 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 $33,000 is assessed against Sunford, 
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, 
Sunford will be assessed, in addition to the full amount of the civil 
penalty and 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 Sunford, Accordingly, if 
Sunford should fail to pay the civil penalty in a timely manner, the 
undersigned may enter an Order denying all of Sunford's export 
privileges for a period of one year from the date of entry of this 
Order.
    Fourth, for a period of three years from the date of entry of the 
Order, Sunford Trading, Ltd., Room 2208, 22/F, 118 Connaught Road West, 
Hong Kong, China, its successors or assigns, and when acting for or on 
behalf of Sunford, its officers, representatives, agents, 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. 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. 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.
    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 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.
    Sixth, that, to prevent evasion of this Order, BIS, after notice 
and opportunity for comment as provided in Section 766.23 of the 
Regulations, may make any person, firm, corporation, or business 
organization related to Sunford by affiliation, ownership, control, or 
position of responsibility in the conduct of trade or related services 
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 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.
    Ninth, that the administrative law judge shall be notified that 
this case is withdrawn from adjudication.
    This Order, which constitutes the final agency action in this 
matter, is effective upon publication in the Federal Register.

    Entered this 18th day of August 2005.
Wendy Wysong,
Acting Assistant Secretary of Commerce for Export Enforcement.
[FR Doc. 05-16885 Filed 8-24-05; 8:45 am]
BILLING CODE 3510-DT-M