Action Affecting Export Privileges; Pinzhe Zhang, Also Known as Peter Zhang; Order Denying Permission To Apply for or Use Export Licenses

DEPARTMENT OF COMMERCE

Action Affecting Export Privileges; Pinzhe Zhang, Also Known as

Peter Zhang; Order Denying Permission To Apply for or Use Export

Licenses

On September 17, 1993, Pinzhe Zhang, also known as Peter Zhang

(Zhang), was convicted in the U.S. District Court for the Eastern

District of Viginia of violating Section 38 of the Arms Export Control

Act (22 U.S.C.A. 2778 (1990)) (the AECA), among other crimes.

Specifically, Zhang was convicted on three counts of knowingly and

willfully exporting and causing to be exported second generation

military specification image intensifying tubes, from the United States

to Hong Kong, New Territories, without obtaining the required licenses

or written approval from the U.S. Department of State.

Section 11(h) of the Export Administration Act of 1979, as amended

(50 U.S.C.A. app. 2401-2420 (1991, Supp. 1993, and Pub. L. 103-277,

July 5, 1994)) (the Act),\1\ provides that, at the discretion of the

Secretary of Commerce,\2\ no person convicted of violating the AECA, or

certain other provisions of the United States Code, shall be eligible

to apply for or use any export license issued pursuant to, or provided

by, the Act or the Export Administration Regulations (currently

codified at 15 C.F.R. parts 768-799 (1994)) (the Regulations) for a

period of up to 10 years from the date of the conviction. In addition,

any export license issued pursuant to the Act in which such a person

had any interest at the time of conviction may be revoked.

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\1\The act expired on August 20, 1994. Executive Order 12924 (59

FR 43437, August 23, 1994) continued the Regulations in effect under

the International Emergency Economic Powers Act (50 U.S.C.A. 1701-

1706 (1991)).

\2\Pursuant to appropriate delegations of authority that are

reflected in the Regulations, the Director, Office of Export

Licensing, in consulation with the Director, Office of Export

Enforcement, exercises the authority granted to the Secretary by

Section 11(h) of the Act.

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Pursuant to Secs. 770.15 and 772.1(g) of the Regulations, upon

notification that a person has been convicted of violating the AECA,

the Director, Office of Export Licensing, in consultation with the

Director, Office of Export Enforcement, shall determine whether to deny

that person permission to apply for or use any export license issued

pursuant to, or provided by, the Act and the Regulations, and shall

also determine whether to revoke any export license previously issued

to such a person.

Having received notice of Zhang's conviction for violating the

AECA, and following consultations with the Director, Office of Export

Enforcement, I have decided to deny Zhang permission to apply for or

use any export license, including any general license, issued pursuant

to, or provided by, the Act and the Regulations, for a period of 10

years from the date of his conviction. The 10-year period ends on

September 17, 2003. I have also decided to revoke all export licenses

issued pursuant to the Act in which Zhang had an interest at the time

of his conviction.

Accordingly, it is hereby ordered:

I. All outstanding individual validated licenses in which Zhang

appears or participates, in any manner or capacity, are hereby revoked

and shall be returned forthwith to the Office of Export Licensing for

cancellation. Further, all of Zhang's privileges of participating, in

any manner or capacity, in any special licensing procedure, including,

but not limited to, distribution licenses, are hereby revoked.

II. Until September 17, 2003, Pinzhe Zhang, also known as Peter

Zhang, 82 W. 49th Street, Apartment A, Norfolk, Virginia 23518, and

currently incarcerated at Federal Correctional Institution, Registry

No. 25241-083, P.O. Box 1000, Petersburg, Virginia 23804-1000, hereby

is denied all privileges of participating, directly or indirectly, in

any manner or capacity, in any transaction in the United States or

abroad involving any commodity or technical data exported or to be

exported from the United States, in whole or in part, and subject to

the Regulations. Without limiting the generality of the foregoing,

participation, either in the United States or abroad, shall include

participation, directly or indirectly, in any manner or capacity: (i)

As a party or as a representative of a party to any export license

application submitted to the Department; (ii) in preparing or filing

with the Department any export license application or request for

reexport authorization, or any document to be submitted therewith;

(iii) in obtaining from the Department or using any validated or

general export license, reexport authorization or other export control

document; (iv) in carrying on negotiations with respect to, or in

receiving, ordering, buying, selling, delivering, storing, using, or

disposing of, in whole or in part, any commodities or technical data

exported or to be exported from the United States, and subject to the

Regulations; and (v) in financing, forwarding, transporting, or other

servicing of such commodities or technical data.

III. After notice and opportunity for comment as provided in

Section 770.15(h) of the Regulations, any person, firm, corporation, or

business organization related to Zhang 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.

IV. As provided in Sec. 787.12(a) of the Regulations, without prior

disclosure of the facts to and specific authorization of the Office of

Export Licensing, in consultation with the Office of Export

Enforcement, no person may directly or indirectly, in any manner or

capacity: (i) Apply for, obtain, or use any license, Shipper's Export

Declaration, bill of lading, or other export control document relating

to an export or reexport of commodities or technical data by, to, or

for another person then subject to an order revoking or denying his

export privileges or then excluded from practice before the Bureau of

Export Administration; or (ii) order, buy, receive, use, sell, deliver,

store, dispose of, forward, transport, finance, or otherwise service or

participate: (a) In any transaction which may involve any commodity or

technical data exported or to be exported from the United States; (b)

in any reexport thereof; or (c) in any other transaction which is

subject to the Export Administration Regulations, if the person denied

export privileges may obtain any benefit or have any interest in,

directly or indirectly, any of these transactions.

V. This Order is effective immediately and shall remain in effect

until September 17, 2003.

VI. A copy of this Order shall be delivered to Zhang. This Order

shall be published in the Federal Register.

Dated: September 7, 1994.

Charles M. Guernieri,

Acting Director, Office of Export Licsensing.

[FR Doc. 94-22773 Filed 9-14-94; 8:45 am]

BILLING CODE 3510-DT-M