Amancio J. Abelairas, et al.; Decision and Order

DEPARTMENT OF COMMERCE

Bureau of Export Administration

[Docket Nos. 3108-01, 3108-02]

Amancio J. Abelairas, et al.; Decision and Order

In the Matter of: Amancio J. Abelairas, also known as Jesus

Gonzalez, individually with an address at 6486 S.W. 9th Street,

Miami, Florida 33144, and doing business as Estrella Del Caribe

Import and Export Inc., with an address at 5529 S.W. 9th Street,

Miami, Florida 33144, Respondents.

On May 17, 1995, the Administrative Law Judge (ALJ) entered his

Recommended Decision and Order in [[Page 31141]] the above-referenced

matter. The Recommended Decision and Order, a copy of which is attached

hereto and made a part hereof, has been referred to me for final

action. After describing the facts of the case and his findings based

on those facts, the ALJ found that the respondent had violated Sections

787.2 and 787.4(a) of the Export Administration Regulations by causing,

aiding or abetting the export of U.S.-origin microelectronic and

fingerprint equipment from the United States to Cuba without obtaining

from the Department of Commerce the validated export license that the

Respondent knew, or had reason to know, was required by Section

772.1(b) of the Regulations. The ALJ also found that the appropriate

penalty for the violations should be that Respondent, Amancio J.

Abelairas, also known as Jesus Gonzalez, individually and doing

business as Estrella Del Caribe Import and Export, Inc., and all

successors, assignees, officers, representatives, agents and employees

be denied for a period of ten years from this date all privileges of

participating, directly or indirectly, in any manner or capacity, in

any transaction in the United States or abroad involving commodities or

technical data exported or to be exported from the United States and

subject to the Export Administration Regulations.

Based on my review of the entire record, I affirm the Recommended

Decision and Order of the Administrative Law Judge.

This constitutes final agency action in this matter.

Dated: June 5, 1995.

William A. Reinsch,

Under Secretary for Export Administration.

Recommended Decision and Order

On September 21, 1993, the Office of Export Enforcement, Bureau of

Export Administration, United States Department of Commerce

(Department), issued a charging letter against Amancio J. Abelairas,

also known as Jesus Gonzalez, individually, and doing business as

Esrella del Caribe Import and Export, Inc. (hereinafter collectively

referred to as Abelairas). The charging letter alleged that Belairas

committed two violations of the Export Administration Regulations

(currently codified at 15 C.F.R. Parts 768-799 (1994)) (the

Regulations),\1\ issued pursuant to the Export Administration Act of

1979, as amended (currently codified at 50 U.S.C.A. app. Secs. 2401-

2420 (1991, Supp. 1993, and Pub. L. No. 103-277, July 5, 1994)) (the

Act).\2\

\1\ The alleged violations occurred during 1988. The Regulations

governing the violations are found in the 1988 version of the Code

of Federal Regulations, codified at 15 CFR Parts 368-399 (1988).

Effective October 1, 1988, the Export Administration Regulations

were redesignated as 15 CFR Parts 768-799 (53 FR 37751, September

28, 1988). The transfer merely changed the first number of each Part

from ``3'' to ``7''. To the degree to which the 1988 version of the

Regulations pertains to this matter, it is substantially the same as

the 1994 version.

\2\ 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.

Secs. 1701-1706 (1991)).

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The charging letter alleged that, on September 30, 1988, Abelairas

caused, aided or abetted the export of U.S.-origin microelectronic and

fingerprint identification equipment from the United States to Cuba

without obtaining from the Department the validated export license

Abelairas knew or had reason to know was required by Section 772.1(b)

of the Regulations. Accordingly, the Department charged that Abelairas

violated Section 787.2 and Section 787.4(a) of the Regulations, for a

total of two violations.

Upon receiving the Department's charging letter, Abelairas sent a

letter indicating why he believed that he had not violated the

Regulations. However, that letter did not constitute an ``answer'' to

the charging letter in accordance with the requirements of Section

788.7 of the Regulations governing answers to charging letters. After

Abelairas failed to perfect his filing, the Department, on May 3, 1995,

filed supporting evidence for a default judgment against Abelairas.

On the basis of the Department's submission and all of the

supporting evidence presented, I have determined that Abelairas

violated Sections 787.2 and 787.4(a) of the Export Administration

Regulations by causing, aiding or abetting the export of U.S.-origin

microelectronic and fingerprint equipment from the United States to

Cuba without obtaining from the Department the validated export license

Abelairas knew or had reason to know was required by Section 772.1(b)

of the Regulations.

For those violations, the Department urged as a sanction that

Abelairas's export privileges be denied for 10 years. In light of the

nature of the violations, I concur in the Department's recommendation.

Accordingly, it is therefore ordered,

First, that all outstanding individual validated licenses in which

Amancio Abelairas, also known as Jesus Gonzalez, individually with an

address at 6486 S.W. 9th Street, Miami, Florida 33144, and doing

business as Estrella del Caribe Import and Export, Inc., with an

address at 5529 S.W. 8th Street, Miami, Florida 33144, appears or

participates, in any manner or capacity, are hereby revoked and shall

be returned forthwith to the Office of Exporter Services for

cancellation. Further, all of Abelairas's privileges of participating,

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

including, but not limited to, distribution licenses, are hereby

revoked.

Second, that Amancio Abelairas, also known as Jesus Gonzales,

individually with an address at 6486 S.W. 9th Street, Miami, Florida

33144, and doing business as Estrella del Caribe Import and Export,

Inc., with an address at 5529 S.W. 8th Street, Miami, Florida 33144

(collectively referred to as Abelairas), and all successors, assigns,

officers, representatives, agents, and employees, shall, for a period

of 10 years from the date of final agency action, be 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, and subject to the Regulations.

A. 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.

B. After notice and opportunity for comment as provided in Section

788.3(c) of the Regulations, any person, firm, corporation, or business

organization related to Abelairas 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. [[Page 31142]]

C. As provided by Section 787.12(a) of the Regulations, without

prior disclosure of the facts to and specific authorization of the

Office of Exporter Services, 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.

Third, that a copy of this Order shall be served on Abelairas and

on the Department.

Fourth, that this Order, as affirmed or modified, shall become

effective upon entry of the final action by the Under Secretary for

Export Administration, in accordance with the Act (50 U.S.C.A. app.

Sec. 2412(c)(1)) and the Regulations (15 CFR 788.23).

Edward J. Kuhlmann,

Administrative Law Judge.

Entered this 17th day of May, 1995.

To be considered in the 30 day statutory review process which is

mandated by Section 13(c) of the Act, submissions must be received

in the Office of the Under Secretary for Export Administration, U.S.

Department of Commerce, 14th and Constitution Ave., N.W., Room

3898B, Washington, D.C., 20230, within 12 days. Replies to the other

party's submission are to be made within the following 8 days. 15

CFR 788.23(b), 50 FR 53134 (1985). Pursuant to Section 13 (c)(3) of

the Act, the order of the final order of the Under Secretary may be

appealed to the U.S. Court of Appeals for the District of Columbia

within 15 days of its issuance.

[FR Doc. 95-14396 Filed 6-12-95; 8:45 am]

BILLING CODE 3510-DT-M