Source: https://www.federalregister.gov/documents/2002/02/19/02-3857/action-affecting-export-privileges-bsandb-process-systems-inc
Timestamp: 2017-08-23 10:43:43
Document Index: 347689560

Matched Legal Cases: ['art 766', 'arts 730', 'arts 768', 'arts 730', 'arts 730', 'arts 768', 'arts 730']

Federal Register :: Action Affecting Export Privileges; BS&B Process Systems, Inc.
Action Affecting Export Privileges; BS&B Process Systems, Inc.
A Notice by the Export Administration Bureau on 02/19/2002
67 FR 7349
02-3857
https://www.federalregister.gov/d/02-3857 https://www.federalregister.gov/d/02-3857
In the matter of: BS&B Process Systems, Inc., 2727 Allen Parkway, Houston, Texas 77019, Respondent.
The Office of Export Enforcement, Bureau of Export Administration, United States Department of Commerce (BXA), having notified BS&B Process Systems, Inc. of its intention to initiate an administrative proceeding against pursuant to Part 766 of the Export Administration Regulations (currently codified at 15 CFR parts 730-774 (2001)) (The Regulations),[1] issued pursuant to the Export Administration Act of 1979, as amended (50 U.S.C. Secs. 2401-2420 (1994 & Supp. V 1999)) (the Act),[2] based on allegations that, on or about April 15, 1996, on or about May 5, 1997, and on or about February 5, 1998, BS&B Process Systems, Inc. exported oil production equipment from the United States to Iran, through the United Kingdom, without obtaining the authorization it knew or had reason to know was required, thereby committing violations of Sections 787.4 and 787.6 of the former Regulations and violations of Sections 764.2(a) and 764.2(e) of the Regulations, and that, in connection with the export to Iran on or about May 5, 1997, BS&B Process Systems, Inc. prepared a Shipper's Export Declaration stating that the ultimate destination of the export was the United Kingdom, when in fact the ultimate designation was Iran, thereby making a false or misleading representation directly or indirectly to a U.S. Government agency in connection with the preparation of an export control document in violation of Section 764.2(g) of the Regulations, and that, in connection with the export to Iran on or about February 5, 1998, BS&B Process Systems, Inc. failed to prepare the required Shipper's Export Declaration, thereby violating Section 764.2(g) of the Regulations; and
BXA and BS&B Process Systems, Inc. having entered into a Settlement Agreement pursuant to Section 766.18(a) of the Regulations whereby they agree 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;
First, that a civil penalty of $86,000 is assessed against BS&B Process Systems, Inc., of which $30,000 shall be paid to BXA within 30 days from the date of entry of this Order, $30,000 shall be paid to BXA within one year of the date of entry of this Order, and the remaining $26,000 shall be paid to BXA within two years of 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 (1983 and Supp. 1999)), 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, respondent will be assessed, in addition to interest, a penalty charge and an administrative charge, as more fully described in the attached Notice.
Third, that, for a period of three years from the date of entry of this Order, BS&B Process Systems, Inc., 2727 Allen Parkway, Houston, Texas 77019, may not participate, directly or indirectly, in any ways 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:Start Printed Page 7350
Fifth, that, after notice and opportunity for comment as provided in Section 766.23 of the Regulations, any person, firm, corporation, or business organization related to BS&B Process Systems, Inc. by affiliation, ownership, control or position of responsibility in the conduct of trade or related services may also be subject to the provisions of this Order.
Seventh, that, as authorized by Section 766.18(c) of the Regulations, the denial period set forth above shall be suspended in its entirety for a period of three years from the date of entry of this Order, and shall thereafter be waived, provided that, during the period of suspension, BS&B Process Systems, Inc. has committed no violation of the Act, or any regulation, order, or license issued thereunder, including failure to make timely payments of the civil penalty set forth above.
Eighth, that the proposed Charging Letter, the Settlement Agreement, and this Order shall be made available to the public.
Entered this 4th day of February, 2002.
1. The alleged violations occurred in 1996, 1997 and 1998. The Regulations governing the violations at issue are found in the 1996, 1997 and 1998 versions of the Code of Federal Regulations (15 CFR parts 768-799 (1996), as amended (61 FR 12714, March 25, 1996) (hereinafter the “former Regulations”), 15 CFR parts 730-774 (1997)), and 15 CFR parts 730-774 (1998)). The March 25, 1996, issue of the Federal Register redesignated, but did not republish, the then-existing Regulations as 15 CFR parts 768A-779A. In addition, the March 25, 1996, issue of the Federal Register reorganized and restructured the Regulations, designating them as an interim rule at 15 CFR parts 730-774, effective April 24, 1996. The former Regulations and the Regulations define the various violations that BXA alleges occurred. The 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 (1994 & Supp. V 1999)) (IEEPA). On November 13, 2000, the Act was reauthorized by Pub. L. Nos 106-508 and 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 (66 FR 44025 (August 22, 2001)), has continued the Regulations in effect under IEEPA.
[FR Doc. 02-3857 Filed 2-15-02; 8:45 am]