[Federal Register Volume 61, Number 120 (Thursday, June 20, 1996)]
[Notices]
[Pages 31504-31505]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-15743]



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DEPARTMENT OF COMMERCE

Bureau of Export Administration


Action Affecting Export Privileges; ISP International Spare Parts 
GmbH; Order

    The Office of Export Enforcement, Bureau of Export Administration, 
United States Department of Commerce (BXA), having notified ISP 
International Spare Parts GmbH (``ISP'') of its intention to initiate 
an administrative proceeding against it pursuant to Section 13(c) of 
the Export Administration Act of 1979, as amended (50 U.S.C.A. app. 
Secs. 2401-2420 (1991 & Supp. 1996)) (the Act),\1\ and the Export 
Administration Regulations (15 CFR Parts 768-799 (1995), as amended (61 
FR 12714 (March 25, 1996)) (the Regulations),\2\ based on allegations 
that:
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    \1\ The Act expired on August 20, 1994. Executive Order 12924 (3 
CFR, 1994 Comp. 917 (1995)), extended by Presidential Notice of 
August 15, 1995 (50 FR 42767, August 17, 1995), continued the 
Regulations in effect under the International Emergency Economic 
Powers Act (50 U.S.C.A. Secs. 1701-1706 (1991 & Supp. 1996)).
    \2\ The March 25, 1996 Federal Register publication redesignated 
the existing Regulations as 15 CFR Parts 768A-799A. In addition, the 
March 25 Federal Register publication restructured and reorganized 
the Regulations, designating them as an interim rule at 15 CFR Parts 
730-774, effective April 24, 1996.
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    1. Between January 1991 and December 1992, ISP conspired with a 
U.S. company to ship U.S.-origin fuel pumps to Libya, knowing that such 
shipments were prohibited by the Regulations, in violation of Section 
787.3(b) of the Regulations; and
    2. On three separate occasions, on or about January 31, 1991, April 
3, 1991, and December 5, 1992, ISP caused, aided or abetted the 
reexport of U.S.-origin fuel pumps to Libya without the required 
reexport authorization, in violation of Section 787.2 of the 
Regulations;
    BXA and ISP having entered into a Settlement Agreement pursuant to 
Section 766.18(a) of the Regulations whereby they 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:
    First, that a civil penalty of $40,000 is assessed against ISP, 
which shall be paid to BXA within 30 days of the date of entry of this 
Order. Payment shall be made in the manner specified in the attached 
instructions.
    Second, that, for a period of ten years from the date of this 
Order, ISP 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, or 
in any other activity subject to the Regulations, including, but not 
limited to:
    A. Applying for, obtaining, or using any license,\3\ License 
Exception, or export control document;
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    \3\ For purposes of this Order, ``license'' includes any general 
license established in 15 CFR Parts 768A-799A.
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    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. 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 a 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 a 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 that is owned, possessed or controlled by a denied person, or 
service any item, of whatever origin, that is owned, possessed or 
controlled by a 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 Sec. 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 of 
trade or related services may also be made subject to the provisions of 
this Order.
    Fifth, that as authorized by Sec. 766.18 of the Regulations, the 
ten-year denial period set forth in paragraph SECOND above shall be 
suspended for a period of three years beginning seven years from the 
date of entry of this Order, and shall thereafter be waived, provided 
that, during the period of suspension, ISP commits no violation of the 
Act or any regulation, order or license issued thereunder.
    Sixth, 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.
    Seventh, that the proposed Charging Letter, the Settlement 
Agreement, and this Order shall be made available to the public. A copy 
of this Order shall be published in the Federal Register.

[[Page 31505]]

    This Order, which constitutes the final agency action in this 
matter, is effective immediately.


    Entered this 11th day of June 1996.
John Despres,
Assistant Secretary for Export Enforcement.
[FR Doc. 96-15743 Filed 6-19-96; 8:45 am]
BILLING CODE 3510-DT-M