Decision and Order

DEPARTMENT OF COMMERCE

Bureau of Export Administration

[Docket Nos. 5109-01, 5109-02, 5110-01, 5110-02, 5110-03]

Decision and Order

In the Matter of: Sidhartha Bose, also known as Dr. Bose

individually and doing business as Perfect Technologies, Ltd. with

an address at 211 Golders Green Road, London, NW11 9BY, England and

Thirunavukkarasu Ragunathan individually and doing business as W.K.

Agencies and as Computer Focus Services Pte. Ltd. with an address at

18 Jalan Kechil, #06-22 Eastern Mansion, Singapore 1543, Respondents

On May 31, 1995, the Administrative Law Judge (ALJ) entered his

Recommended Decision and Default Order in the above-referenced matters.

The Recommended Decision and Default 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 Respondents had violated

Sections 787.3(a) and 787.3(b) of the Export Administration Regulations

(EAR) by conspiring with others to bring about acts that constituted

violations of the EAR, by exporting or attempting to export U.S.-origin

computers or computer parts from the United States, either directly or

through Canada and/or Singapore, for ultimate destination in the then-

Union of Soviet Socialist Republics, without the validated export

licenses required by Section 772.1 of the EAR.

The ALJ found that the appropriate penalty for the violations

should be that the Respondents 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 Default Order of the Administrative Law Judge.

This constitutes final agency action in this matter.

Dated: June 16, 1995.

William A. Reinsch,

Under Secretary for Export Administration.

Recommended Decision and Default Order

On July 20, 1994, the Office of Export Enforcement, Bureau of

Export Administration, United States Department of Commerce

(Department), issued separate charging letters initiating

administrative proceedings against Sidhartha Bose, also known as Dr.

Bose, individually and doing business as Perfect Technologies, Ltd.;

and Thirunavukkarasu Ragunathan, individually and doing business as

W.K. Agencies and as Computer Focus Services Pte. Ltd. (hereinafter

``Bose'' or ``Ragunathan'' or collectively referred to as respondents).

Each charging letter alleged that the named respondent committee two

violations of the Export Administration Regulations (currently codified

at 15 CFR Parts 768-799 (1995)) (the Regulations),\1\ issued

[[Page 32941]] 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 between 1987 and 1989. The

Regulations governing the violations are found in the 1987 version

of the Code of Federal Regulations, codified at 15 CFR Parts 368-399

(1987); the 1988 version of the Code of Federal Regulations,

codified at 15 CFR Parts 368-399 (1988); and the 1989 version of the

Code of Federal Regulations, codified at 15 CFR Parts 768-799

(1989). Effective October 1, 1988, the 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.''

\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. 1701-

1706 (1991)).

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Specifically, each charging letter alleged that the named

respondents conspired with a network of business associates to bring

about acts that constituted violations of the Regulations. The purpose

of the conspiracy was to acquire U.S.-origin computers or computer

parts which the conspirators would then export, or attempt to export,

from the United States, either directly or through Canada, to India

and/or Singapore, for ultimate destination in the then-Union of Soviet

Socialist Republics (U.S.S.R.), without the validated export licenses

required by Section 772.1 of the Regulations. Accordingly, the

Department alleged that each respondent committed one violation of

Section 787.3(a) and one violation of Section 787.3(b) of the

Regulations.

On April 19, 1995, in light of the fact that neither Bose nor

Ragunathan had answered the charging letter in accordance with the

requirements of Section 788.7 of the Regulations, I ordered the

Department to file separate default submissions, together with

supporting evidence for the allegations made, by May 19, 1995. Because

the two actions arose out of the same transactions or occurrences and

the evidence supporting the Department's allegations in both cases is

substantially the same, the Department moved on May 9, 1995 that I

consolidate the proceedings and authorize the Department to file a

single default submission. On May 10, 1995, I granted the Department's

request. On May 18, 1995, the Department requested and I granted

permission for the Department to file its default submission on or

before May 24, 1995.

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

supporting evidence presented, I have determined that Bose and

Ragunathan violated Sections 787.3(a) and 787.3(b) of the Regulations

by conspiring with others to bring about acts that constituted

violations of the Regulations, by exporting or attempting to export

from the United States, either directly or through Canada, to India

and/or Singapore, for ultimte destination in the then-U.S.S.R. without

the validated export licenses, as the Department alleges.

For those violations, the Department urges as a sanction that

respondent's export privileges be denied for 10 years. I concur in the

Department's recommendation.

Accordingly, it is therefore ordered,

First, that all outstanding individual validated licenses in which

Sidhartha Bose, also known as Dr. Bose, individually and doing business

at Perfect Technologies, Ltd., or Thirunavukkarasu Ragunathan,

individually and doing business as W.K. Agencies and as Computer Focus

Services, Pte. Ltd., 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 Bose and

Ragunathan'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, Sidhartha Bose, also known as Dr. Bose, individually and

doing business as Perfect Technologies, Ltd., with an address at 211

Golders Green Road, London, NW11 9BY, England; and Thirunavukkarasu

Ragunathan, individually and doing business as W.K. Agencies and as

Computer Focus Services Pte. Ltd, with an address at 18 Jalan Kechil,

#06-22 Eastern Mansion, Singapore 1543 (collectively referred to as

``Bose and ``Ragunathan''), and all successors, assigns, officers,

representatives, agents, and employees, 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, participating,

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 either Bose or Ragunathan 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.

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 Bose and

Ragunathan 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).

[[Page 32942]] To be considered in the 30 day statutory review

portion 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 & 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.

Dated: May 31, 1995.

Edward J. Kuhlmann,

Administrative Law Judge.

[FR Doc. 95-15587 Filed 6-23-95; 8:45 am]

BILLING CODE 3510-DT-M