Realtek Semi-Conductor Co. Ltd., 6F, No. 4 Fu-Shon Street, Taipei, Taiwan, Respondent; Decision and Order of Default

DEPARTMENT OF COMMERCE

Bureau of Export Administration

[Docket No. 5118-01]

Realtek Semi-Conductor Co. Ltd., 6F, No. 4 Fu-Shon Street,

Taipei, Taiwan, Respondent; Decision and Order of Default

On July 12, 1995, the Administrative Law Judge (ALJ) issued a

Recommended Decision and Default Order in the above-captioned matter.

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 Realtek Semi-Conductor Co. Ltd.

committed one violation of section 787.2 of the Regulations (EAR) by

causing, aiding, or abetting the export in 1990 of U.S.-origin Trident

TVGA 8800 and TVGA 8900 graphic chip technology from the United States

to Taiwan without the written letter of assurance required by Section

779.4 of the Regulations.

The ALJ found that the appropriate penalty for the violations

should be that the Respondent and all successors, assignees, officers,

representatives, agents and employees be denied for a period of five

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.

[[Page 40566]]

Dated: August 3, 1995.

William A. Reinsch,

Under Secretary for Export Administration.

Recommended Decision and Default Order

On March 31, 1995, the Office of Export Enforcement, Bureau of

Export Administration, United States Department of Commerce

(hereinafter, the ``Department''), issued a charging letter initiating

an administrative proceeding against Realtek Semi-Conductor Co. Ltd.

(hereinafter, ``Realtek''), a Taiwanese entity. The charging letter

alleged that Realtek committed one violation of the Export

Administration Regulations (currently codified at 15 C.F.R. Parts 768-

799 (1995)) (hereinafter, 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)) (hereinafter, the ``Act'').\2\

\1\ The alleged violation occurred during 1990. The Regulations

governing the violation are found in the 1990 version of the Code of

Federal Regulations, codified at 15 C.F.R. Parts 768-799 (1990).

\2\ The Act expired on August 20, 1994. Executive Order 12924

(59 Fed. Reg. 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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Specifically, the charging letter alleged that, on or about April

1, 1990, Realtek caused, aided, or abetted the export from the United

States to Taiwan of U.S.-origin Trident TVGA 8800 and TVGA 8900

technology without the written letter of assurance required by Section

779.4 of the Regulations. Accordingly, the Department alleged that

Realtek committed one violation of Section 787.2 of the Regulations.

The charging letter was served on Realtek on April 12, 1995.

Realtek failed to file an answer within 30 days after service pursuant

to Section 788.7(a) of the Regulations. On June 5, 1995, I ordered the

Department to file a proposed order together with any evidence in

support of the allegation in the charging letter.

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

supporting evidence presented, I have determined that Realtek violated

Section 787.2 of the Regulations by causing, aiding, or abetting the

export from the United States to Taiwan of U.S.-origin Trident TVGA

8800 and TVGA 8900 technology without the written letter of assurance

required by Section 779.4 of the Regulations.

The Department urges as a sanction that Realtek's export privileges

be denied for a period of five years. I concur in the Department's

recommendation.

Accordingly, it is therefore ordered,

First, that all outstanding individual validated licenses in which

Realtek 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 Realtek'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, Realtek, with an address at 6F, No. 4 Fu-Shon Street,

Taipei, Taiwan, and all successors, assigns, officers, representatives,

agents, and employees, shall, for a period of five 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 of 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 Realtex 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 Exporter

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 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 Realtek 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).

Dated: July 12, 1995.

Edward J. Kuhlmann,

Administrative Law Judge.

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 & Constitution Avenue NW., 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. 95-19686 Filed 8-8-95; 8:45 am]

BILLING CODE 3510-DT-M