In the Matter of: Herman Van Croonenburg, Urb. El Paraiso, Parc. 145Villa Favorita, E-29680 EsteponaMalaga, Spain; Respondent; Final Decision and Order

DEPARTMENT OF COMMERCE

Bureau of Export Administration 9-18

[Docket No. 1107-07]

In the Matter of: Herman Van Croonenburg, Urb. El Paraiso, Parc.

145--Villa Favorita, E-29680 Estepona--Malaga, Spain; 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.

After describing the facts of the case and his findings based on

those facts, the ALJ found that the Respondent on four separate

occasions reexported U.S.-origin commodities from Switzerland to

Austria, without obtaining the reexport authorization required by

Section 774.1 of the Export Administration Regulations.

The ALJ recommended 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 record in this proceeding, 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 Decision and Order

On August 30, 1991, the Office of Export Enforcement, Bureau of

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

a Charging Letter alleging that Herman Anton van Croonenburg (van

Croonenburg) committed four violations of Section 787.6 of the Export

Administration Regulations (currently codified at 15 CFR Parts 768-799

(1995)) (the Regulations), issued pursuant to the Export Administration

Act of 1979, as amended (50 U.S.C.A. app. Sec. Sec. 2401-2420 (1991,

Supp. 1993, and Pub. L. No. 103-277, July 5, 1994)) (the Act).\1\ On

November 4, 1991, van Croonenburg answered the Charging Letter, but did

not request a hearing.\2\

\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.

Sec. Sec. 1701-1706 (1991)).

\2\ Indeed, other than his answer, van Croonenburg has not filed

any pleadings or responded either to any of my Orders or any of the

Department's pleadings in this matter.

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On September 6, 1991, this matter was consolidated with several

other related matters and has proceeded through the administrative

process since that time. On March 22, 1995, I issued an Order urging

the parties to begin settlement discussions and directed the parties to

report to me regarding the progress of those discussions. On April 5,

1995, in accordance with that Order, the Department wrote to van

Croonenburg to determine if he was interested in pursuing a possible

settlement in this matter. To date, van Croonenburg has not responded

to the Department's offer to discuss a possible settlement. However,

settlement discussions in several of the other

[[Page 48100]]

related matters were successful. On June 19, 1995, following the

submission of settlement proposals in these other related proceedings,

I issued an Order directing the Department to file the submission

required under Section 788.14 of the Regulations by August 18, 1995

against van Croonenburg. In accordance with that Order, the Department

made the submission required by Section 788.14 of the Regulations on

August 18, 1995.

Background

The August 30, 1991 Charging Letter alleges that, on four separate

occasions between on or about September 2, 1986 and on or about June 8,

1987, van Croonenburg, in his capacity as President of Marli S.A.

(Marli),\3\ reexported U.S.-origin commodities from Switzerland to

Austria 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,

identifies the approximate date of reexport from Switzerland to

Austria, the commodity involved, the Samata S.A. (Samata) Purchase

Order number, the House Air Waybill number for the exports from

Switzerland to Austria that were made by air.

\3\ A Charging Letter was also issued against Marli. However, on

January 6, 1992, after several attempts to serve Marli has failed,

the Department withdrew that Charging Letter after it determined

that Marli had ceased to exist. See Notice of Withdrawal of Charging

Letter, filed January 6, 1992.

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Finding

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

supporting evidence presented, I have determined that van Croonenburg

committed the violations alleged in the Charging Letter issued against

him on August 30, 1991.

For those violations, the Department urges as a sanction that van

Croonenburg'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

van Croonenburg 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 van Croonenburg'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 Herman van Croonenburg, Urb. El Paraiso, Parc. 145--

Villa Favorita, E-29680 Estepona--Malaga, Spain, and all of 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 van Croonenburg

and the Department in accordance with Section 788.16(b)(2) of the

Regulations.

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).

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., NW., Room 389B,

Washington, DC 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. 95-23060 Filed 9-15-95; 8:45 am]

BILLING CODE 3510-DT-M