Action Affecting Export Privileges; Teledyne Wah Chang, a Division of Teledyne Industries, Inc.

DEPARTMENT OF COMMERCE

Bureau of Export Administration

Action Affecting Export Privileges; Teledyne Wah Chang, a

Division of Teledyne Industries, Inc.

In the matter of: Teledyne Wah Chang, a division of Teledyne

Industries, Inc., 1600 N.E. Old Salem Road, P.O. Box 460, Albany,

Oregon 97321-6990, Respondent.

Order

The Office of Export Enforcement, Bureau of Export Administration,

United States Department of Commerce (Department), having notified

Teledyne Wah Chang, a division of Teledyne Industries, Inc.

(hereinafter referred to as Teledyne Wah Chang), of its intention to

initiate an administrative proceeding against it pursuant to Section

13(c) of 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\ and Part 788 of the Export Administration

Regulations (currently codified at 15 CFR Parts 768-799 (1994)) (the

Regulations), based on allegations that Teledyne Wah Chang violated

Sections 787.3(b), 787.a(a), 787.5(a)(1), and 787.6 of the Regulations

in that:

\1\The Act expired on August 20, 1994. Executive Order No. 12924

(59 Fed. Reg. 43437, August 23, 1994) continued the Regulations in

effect under the International Emergency Economic Power Act (50

U.S.C.A. Secs. 1701-1706 (1991)).

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(1) on or before October 5, 1989, Teledyne Wah Chang engaged in two

separate conspiracies to export zirconium sponge and/or compacts from

the United States contrary to the terms of validated export licenses

issued by the Department;

(2) in carrying out those conspiracies, on six separate occasions,

Teledyne Wah Chang, as a co-conspirator, made false or misleading

statements of material fact to the Department on validated export

license applications;

(3) in carrying out those conspiracies, on four separate occasions,

Teledyne Wah Chang, as a co-conspirator, exported goods from the United

States with reason to know that a violation of the Act or any

regulation, order, or license issued under the Act would occur in

connection with each such export; and

(4) in carrying out those conspiracies, on four separate occasions,

Teledyne Wah Chang, as a co-conspirator, made false or misleading

statements of material fact on Shipper's Export Declarations that were

filed with the U.S. Customs Service;

The Department and Teledyne Wah Chang having entered into a Consent

Agreement whereby the Department and Teledyne Wah Chang have agreed to

settle this matter in accordance with the terms and conditions set

forth therein and the terms of the Consent Agreement having been

approved by me;

It is therefore ordered,

First, that a civil penalty of $2,000,000 is assessed against

Teledyne Wah Chang, all of which shall be paid to the Department within

30 days from the date of entry of this Order. Payment shall be made in

the manner specified in the attached instructions.

Second, Teledyne Wah Chang, a division of Teledyne Industries,

Inc., 1600 N.E. Old Salem Road, P.O. Box 460, Albany, Oregon 97321-

6990, and all its successors, assigns, and officers, representatives,

agents, and employees when acting on behalf of the company shall, for a

period of three years beginning on March 1, 1995, 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 Teledyne Wah Chang by affiliation, ownership,

control, or position of responsibility in the conduct of grade 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 [[Page 6697]] 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.

D. As authorized by Section 788.17(b) of the Regulations, the

denial period shall be suspended for a period of two years and nine

months beginning on June 1, 1995, and shall thereafter be waived,

provided that, during the period of suspension, Teledyne Wah Chang

commits no violation of the Act or any regulation, order or license

issued thereunder. During the period between June 1, 1995 and March 1,

1996, Teledyne Wah Chang's authority to use general license G-NSG is

suspended. Teledyne Wah Chang is eligible to apply for individual

validated export licenses for any export that would ordinarily be

eligible for export under general license G-NSG during the period that

its authority to use general license G-NSG is suspended. Further, for

the last two years of the denial period, Teledyne Wah Chang shall

report periodically to the Office of Export Enforcement, Bureau of

Export Administration, United States Department of Commerce (OEE), all

exports made by Teledyne Wah Chang under the authority of general

license G-NSG during the previous three months. The first such report

shall be provided to OEE on July 1, 1996 and shall cover any exports by

Teledyne Wah Chang under the authority of general license G-NSG between

March 1, 1996 and May 30, 1996. Subsequent reports shall be made to OEE

every three months thereafter. Each report shall include the following

information: the date of each general license G-NSG shipment made

during that quarter; the country of ultimate destination; the name and

address of the ultimate consignee; and a description of the

commodities, the quantity, and the value of the commodities included in

each shipment.

Third, the timely payment of the civil penalty set forth above is

hereby made a condition to the granting, restoration, or continuing

validity of any export license, permission, or privilege granted, or to

be granted, to Teledyne Wah Chang. Accordingly, if Teledyne Wah Chang

should fail to pay in a timely manner the civil penalty set forth

above, the undersigned will enter an Order denying all of Teledyne Wah

Chang's export privileges for a period of one year from the date of

entry of this Order.

Fourth, that the proposed Charging Letter, the Consent Agreement

and this Order shall be made available to the public. Copies of this

Order shall be served on Teledyne Wah Chang and published in the

Federal Register.

This Order, which constitutes the final agency action in this

matter, is effective immediately.

Entered this 26th day of January, 1995.

John Despres,

Assistant Secretary for Export Enforcement.

[FR Doc. 95-2635 Filed 2-2-95; 8:45 am]

BILLING CODE 3510-DT-M