In the Matter of: Francesco Grazi, Chez Pietro Grazi, V Cantonale, 6532 Castione, Ticino, Switzerland, Respondent; Final Decision and Order

DEPARTMENT OF COMMERCE

Bureau of Export Administration

[Docket No. 2101-01]

In the Matter of: Francesco Grazi, Chez Pietro Grazi, V

Cantonale, 6532 Castione, Ticino, Switzerland, Respondent; Final

Decision and Order

On August 22, 1995, the Administrative Law Judge (ALJ) entered his

Recommended Decision and Order in 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. The

Respondent failed to respond to the charges in this matter. After

describing the facts of the case and his findings based on those facts,

the ALJ found that the Respondent, Francesco Grazi, on two separate

occasions violated Section 787.2 of the Export Administration

Regulations (EAR). The Respondent caused, aided, abetted, counselled,

or induced a third party to reexport U.S.-origin commodities from

Switzerland to Bulgaria, without obtaining the reexport authorization

required by Section 774.1 of the EAR.

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 fifteen

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: September 4, 1995.

William A. Reinsch,

Under Secretary for Export Administration.

Recommended

On January 14, 1992, the Office of Export Enforcement, Bureau of

Export Administration, U.S. Department of Commerce (Department), issued

a Charging Letter alleging that Francesco Grazi (Grazi) committed two

violations of Section 787.2 of the Export Administration Regulations

(currently codified at 15 C.F.R. Parts 768-799 (1995)) (the

Regulations), issued pursuant to the Export Administration Act of 1979,

as amended (50 U.S.C.A. app. Secs. 2401-2420 (1991, Supp. 1993, and

Pub. L. No. 103-277, July 5, 1994)) (the Act).\1\ As established in the

Status Report the Department filed in this matter on May 1, 1992, the

Charging Letter was served on Grazi on or about April 21, 1992. Grazi

has not answered or otherwise responded to the allegations set forth in

the Charging Letter. On June 19, 1995, I issued an Order directing that

the Department make its submission pursuant to Section 788.8 of the

Regulations by August 18, 1995. In accordance with that Order, the

Department made the submission required by Section 788.8 of the

Regulations on August 18, 1995.

\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.

Secs. 1701-1706 (1991)).

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Background

The January 14, 1992 Charging Letter alleges that, on two separate

occasions, on or about January 14, 1987 and on or about May 8, 1987,

Grazi caused, aided, abetted, counseled, or induced a third party to

reexport U.S.-origin commodities from Switzerland to Bulgaria without

first obtaining the reexport authorization required by Section 774.1 of

the Regulations. Schedule A to the Charging Letter, which was attached

thereto and incorporated by reference therein, identified the

approximate date of reexport from Switzerland, the commodity involved,

the Samata S.A. (Samata) Purchase Order number, the Air Waybill number

for the export from the United States, and the Fincosid \2\ Order

Number.

\2\ At the time of the alleged violations, Grazi was the

president of Fincosid SA, a Swiss company. A Charging Letter was

also issued against Fincosid. On April 2, 1992, in responding to the

Administrative Law Judge's March 4, 1992 Order, the Department

advised the Administrative Law Judge that it had learned that

Fincosid no longer exists and, therefore, withdrew the Charging

Letter issued to Fincosid.

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Finding

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

supporting evidence presented, I have determined that Grazi committed

the violations alleged in the Charging Letter issued against him on

January 14, 1992.

For those violations, the Department urges as a sanction that

Grazi's export privileges be denied for 15 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

Grazi 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 Grazi'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 Francesco Grazi, Chez Pietro Grazi, V Cantonale, 6532

Castione, Ticino, Switzerland, and all of

[[Page 48099]]

his successors, assigns, officers, representatives, agents, and

employees, shall, for a period of 15 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 the respondent 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 Grazi and the

Department in accordance with section 778.16(b)(2) of the Regulations.

Fourth, that this Order, is 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).

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 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: August 22, 1995.

Edward J. Kuhlmann,

Administrative Law Judge.

FR Doc. 95-23059 Filed 9-15-95; 8:45 am]

BILLING CODE 3510-DT-M