[Federal Register Volume 70, Number 192 (Wednesday, October 5, 2005)]
[Notices]
[Pages 58182-58183]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-19895]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security


Action Affecting Export Privileges; Ghashim Group, Inc.; Mazen 
Ghashim; MNC Group International, In the Matter of: Ghashim Group, 
Inc., d.b.a. KZ Results, 3334 Walnut Bend Land, Houston, Texas 77042, 
and Mazen Ghashim, 10734 Overbrook Lane, Houston, Texas 77042, 
Respondents, and MNC Group International, Inc., d.b.a. Wearform, d.b.a. 
Sports Zone, d.b.a. Soccer Zone, 3334 Walnut Bend Lane, Houston, Texas 
77042; Related Person

Order Renewing Order Temporarily Denying Export Privileges

    Pursuant to Section 766.24 of the Export Administration Regulations 
(``EAR''),\1\ the Bureau of Industry and Security (``BIS''), U.S. 
Department of Commerce, through its Office of Export Enforcement 
(``OEE''), has requested that I renew for 180 days an Order temporarily 
denying the export privileges under the EAR of: Ghashim Group, Inc. 
doing business as (``d.b.a.'') KZ Results, 3334 Walnut Bend Lane, 
Houston, Texas 77042 (``Ghashim Group'') and Mazen Ghashim, 10734 
Overbrook Lane, Houston, Texas 77042 (hereinafter collectively referred 
to as the ``Respondents''); and related person MNC Group International, 
Inc. d.b.a. Wearform, d.b.a. Sports Zone, and d.b.a. Soccer Zone, 3334 
Walnut Bend Lane, Houston, Texas 77042 (``MNC'').
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    \1\ The EAR, which are currently codified at 15 CFR Parts 730-
774 (2005), are issued under the Export Administration Act of 1979, 
as amended (50 U.S.C. app. 2401-2420) (2000) (the ``Act''). From 
August 21, 1994 through November 12, 2000, the Act was in lapse. 
During that period, the President, through Executive Order 12,924, 
which had been extended by successive Presidential Notices, the last 
of which was August 3, 2000 (3 CFR 200 Comp. 397 (2001)), continued 
the EAR in effect under the International Emergency Economic Powers 
Act (50 U.S.C. 1701-1707 (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 13,222 of August 17, 2001 (3 CFR, 
2001 Comp. 783 (2002)), as extended by the Notice of August 2, 2005, 
(70 FR 45,273 (Aug. 5, 2005)), continued the Regulations in effect 
under the IEEPA.
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    On April 7, 2005, I found that evidence presented by BIS 
demonstrated that the Respondents conspired to commit acts that 
violated the EAR, that such violations had been deliberate and covert, 
and that there was a strong likelihood of future violations, 
particularly given the nature of the transactions and the elaborate 
steps taken by Respondents to avoid detection by the U.S. Government 
while knowing that their actions were in violation of the EAR. 70 FR 
17,645 (Apr. 7, 2005). This finding was based on evidence that 
indicated that Respondents had conspired with others to cause 
computers, which are subject to the EAR and controlled for national 
security and anti-terrorism reasons, to be illegally exported to Syria. 
The evidence also indicated that, after learning of the EAR 
requirements governing the export of computers to Syria, Respondents 
developed and implemented a scheme to avoid these requirements by 
causing computers to be exported to Syria through the United Arab 
Emirates with knowledge that violations of the EAR would occur.
    I also found that MNC was a Related Person pursuant to 15 CFR 
766.23 because it is owned and operated by Mazen Ghashim, who is the 
President of Ghashim Group, and it is operated out of the same 
facilities as Ghashim Group. The evidence showed Ghashim and MNC 
conspired to export garment samples, items that are subject to the EAR, 
from the United States to Syria without the required BIS export 
licenses in violation of the Regulations.
    BIS believes that all of the facts found in the original Order 
continue to justify the renewal of the Order, particularly given the 
nature of the transactions and the steps that have been taken by 
Respondents to avoid detection by the U.S. Government while knowing 
their actions were in violation of the EAR. BIS believes that the 
evidence described in its initial Temporary Denial Order request 
supports this Order.
    Based on the evidence submitted by BIS, I find that renewal of the 
Order naming Respondents and the Related Person is necessary, in the 
public interest, to prevent an imminent violation of the EAR. A copy of 
the request for renewal of this Order was served upon Respondents and 
the Related Person in accordance with the requirements of 15 CFR 766.24 
of the EAR, and no responses were received in opposition to this 
request within the applicable time period described in that section.
    It is therefore ordered:
    First, that the Respondents, Ghashim Group, Inc. D.B.A. KZ Results, 
3334 Walnut Bend Lane, Houston, Texas 77042, its successors or assigns, 
and when acting for or on behalf of Ghashim Group, Inc., its officers, 
representatives, agents, or employees; Mazen Ghashim 10734 Overbrook 
Lane, Houston, Texas 77042, and, when acting for or on behalf of Mazen 
Ghashim, his representatives, agents, assigns or employees; and Related 
Person MNC Group International, Inc. d.b.a. Wearform, d.b.a. Sports 
Zone, and d.b.a. Soccer Zone, 3334 Walnut Bend Lane, Houston, Texas 
77042, its successors or assigns, and when acting for or on behalf of 
MNC Group International, Inc., its officers, representatives, agents, 
or employees (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 Export Administration Regulations (``EAR''), or in any 
other activity subject to the EAR, 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 EAR, or in any other activity 
subject to the EAR; or
    C. Benefiting in any way from any transaciton involving any item 
exported

[[Page 58183]]

or to be exported from the United States that is subject to the EAR, or 
in any other activity subject to the EAR.
    Second, that no person may, directly or indirectly, do any of the 
following:
    A. Export or reexport to or on behalf of the Denied Persons any 
item subject to the EAR;
    B. Take any action that facilitates the acquisition or attempted 
acquisition by the Denied Persons of the ownership, possession, or 
control of any item subject to the ear that has been or will be 
exported from the United States, including financing or other support 
activities related to a transaction whereby the Denied Persons acquire 
or attempt 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 Persons of any item subject to 
the EAR that has been exported from the United States;
    D. Obtain from the Denied Persons in the United States any item 
subject to the EAR 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 EAR 
that has been or will be exported from the United States and which is 
owned, possessed or controlled by the Denied Persons, or service any 
item, of whatever origin, that is owned, possessed or controlled by the 
Denied Persons if such service involves the use of any item subject to 
the EAR 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, that, after notice and opportunity for comment as provided 
in section 766.23 of the EAR, any other person, firm, corporation, or 
business organization related to any of the Respondents 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.
    Fourth, that this Order does not prohibit any export, reexport, or 
other transaction subject to the EAR where the only items involved that 
are subject to the EAR are the foreign-produced direct product of U.S.-
origin technology.
    In accordance with the provisions of Section 766.24(e) and Section 
766.23(c) of the EAR, the Respondents and the Related Person, 
respectively, may, at any time, appeal this Order by filing a full 
written statement in support of the appeal with the Office of the 
Administrative Law Judge, U.S. Coast Guard ALJ Docketing Center, 40 
South Gay Street, Baltimore, Maryland 21202-4022.
    The Order becomes effective on October 3, 2005, and shall remain in 
effect for 180 days until and including March 31, 2006. In accordance 
with the provisions of Section 766.24(d) and Section 766.23(c) of the 
EAR, BIS may seek renewal of this Order by filing a written request not 
later than 20 days before the expiration date, on or before March 11, 
2006, with the Assistant Secretary for Export Enforcement. The 
Respondents and the Related Person may oppose a request to renew this 
Order by filing a written submission with the Assistant Secretary for 
Export Enforcement, which must be received not later than seven days 
before the expiration date of the Order, on or before March 24, 2006.
    A copy of this Order shall be served on the Respondents and the 
Related Person, and shall be published in the Federal Register.

    Entered this 28th day of September, 2005.
Thomas W. Andrukonis,
Acting Deputy Assistant Secretary of Commerce for Export Enforcement.
[FR Doc. 05-19895 Filed 10-4-05; 8:45 am]
BILLING CODE 3510-DT-M