[Federal Register Volume 73, Number 27 (Friday, February 8, 2008)]
[Notices]
[Pages 7525-7526]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 08-522]


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

DEPARTMENT OF COMMERCE

Bureau of Industry and Security


Action Affecting Export Privileges: AR-AM Medical Services LLC; 
In the Matter of AR-AM Medical Services LLC; Case No. 06-08

Order

    The Office of Antiboycott Compliance, Bureau of Industry and 
Security, U.S. Department of Commerce (``BIS''), having determined to 
initiate an administrative proceeding pursuant to Section 11(c) of the 
Export Administration Act of 1979, as amended (50 U.S.C. 2401-2420 
(2000)) (the ``Act'') \1\ and the Export Administration Regulations 
(currently codified at 15 CFR Parts 730-774 (2007) (the 
``Regulations''), against AR-AM Medical Services LLC (``AR-AM''), a 
domestic concern, based on allegations set forth in the Proposed 
Charging Letter, dated April 17, 2006, that alleged that AR-AM 
committed three violations of the Regulations;
---------------------------------------------------------------------------

    \1\ 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 by Pub. 
L. 106-508 (114 Stat. 2360 (2000)) and remained in effect through 
August 20, 2001. Since August 21, 2001, the Act has been in lapse. 
Executive Order 13222 of August 17, 2001 (3 CFR 2001 Comp 783 
(2002)), which has been extended by successive Presidential Notices, 
the most recent of which was August 15, 2007 (72 FR 46137 (August 
16, 2007)), continues the Regulations in effect under IEEPA.
---------------------------------------------------------------------------

* * * * *
    Specifically, the charges are:
    1. Three Violations of 15 CFR 760.2(d)--Furnishing Information 
about Business Relationships With Boycotted Countries or Blacklisted 
Persons: During the years 2001 and 2002, AR-AM engaged in 
transaction(s) involving the sale and/or transfer of goods or services 
(including information) from the United States to Syria. In connection 
with these activities, on three occasions, AR-AM, with intent to comply 
with, further or support an unsanctioned foreign boycott, furnished 
information concerning its or another person's business relationships 
with or in a boycotted country, an activity prohibited by Section 
760.2(d) of the Regulations, and not excepted.
    BIS and AR-AM having entered into a Settlement Agreement pursuant 
to Section 766.18(a) of the Regulations whereby the parties have 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 that:
    First, a civil penalty of $7,200 is assessed against AR-AM. Payment 
shall be suspended for a period of two years from the date of entry of 
this Order and thereafter shall be waived, provided that, during the 
period of suspension, AR-AM has committed no violation of the Act and 
Regulations or any order issued thereunder.
    Second, for a period of two years from the date of entry of this 
Order, AR-AM Medical Services LLC (Great Neck, New York) (``Denied 
Person'') may not participate, directly or indirectly, in any way in 
any transaction involving any commodity, software or technology 
(collectively, ``item'') exported or to be exported from the United 
States to Bahrain, Iraq, Kuwait, Lebanon, Libya, Oman, Qatar, Saudi 
Arabia, Syria, the United Arab Emirates or the Republic of Yemen 
(collectively, the ``Territory'') that is subject to the Regulations, 
or in any other activity relating to the Territory 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, relating to the Territory;
    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 fro the 
United States to the Territory that is subject to the Regulations, or 
in any other activity relating to the Territory 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 to the Territory that 
is subject to the Regulations, or in any other activity relating to the 
Territory subject to the Regulations.
    Third, 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 from the United States to the Territory;

[[Page 7526]]

    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 to the Territory, 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 to the 
Territory;
    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 to 
the Territory; 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 to 
the Territory, 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 to the Territory. For the purposes of 
this paragraph, service means installation, maintenance, repair, 
modification or testing.
    Fourth, after notice and opportunity for comment as provided in 
Section 766.23 of the Regulations, any person, firm, corporation or 
business organization related to the Denied Person by affiliation, 
ownership, control or position of responsibility in the conduct or 
trade or related services may also be made subject to the provisions of 
this Order.
    Fifth, 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 the U.S.-origin technology.
    Sixth, the Proposed Charging Letter, the Settlement Agreement and 
this Order shall be made available to the public, and a copy of 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 14th day of January, 2008.
Darryl W. Jackson,
Assistant Secretary of Commerce for Export Enforcement.
[FR Doc. 08-522 Filed 2-7-08; 8:45 am]
BILLING CODE 3510-DT-M