Action Affecting Export Privileges; ISP International Spare Parts GmbH; Order

DEPARTMENT OF COMMERCE

Bureau of Export Administration

Action Affecting Export Privileges; ISP International Spare Parts

GmbH; Order

The Office of Export Enforcement, Bureau of Export Administration,

United States Department of Commerce (BXA), having notified ISP

International Spare Parts GmbH (``ISP'') 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. 1996)) (the Act),\1\ and the Export

Administration Regulations (15 CFR Parts 768-799 (1995), as amended (61

FR 12714 (March 25, 1996)) (the Regulations),\2\ based on allegations

that:

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\1\ The Act expired on August 20, 1994. Executive Order 12924 (3

CFR, 1994 Comp. 917 (1995)), extended by Presidential Notice of

August 15, 1995 (50 FR 42767, August 17, 1995), continued the

Regulations in effect under the International Emergency Economic

Powers Act (50 U.S.C.A. Secs. 1701-1706 (1991 & Supp. 1996)).

\2\ The March 25, 1996 Federal Register publication redesignated

the existing Regulations as 15 CFR Parts 768A-799A. In addition, the

March 25 Federal Register publication restructured and reorganized

the Regulations, designating them as an interim rule at 15 CFR Parts

730-774, effective April 24, 1996.

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1. Between January 1991 and December 1992, ISP conspired with a

U.S. company to ship U.S.-origin fuel pumps to Libya, knowing that such

shipments were prohibited by the Regulations, in violation of Section

787.3(b) of the Regulations; and

2. On three separate occasions, on or about January 31, 1991, April

3, 1991, and December 5, 1992, ISP caused, aided or abetted the

reexport of U.S.-origin fuel pumps to Libya without the required

reexport authorization, in violation of Section 787.2 of the

Regulations;

BXA and ISP having entered into a Settlement Agreement pursuant to

Section 766.18(a) of the Regulations whereby they agreed to settle this

matter in accordance with the terms and conditions set forth therein,

and the terms of the Settlement Agreement having been approved by me;

It is therefore ordered:

First, that a civil penalty of $40,000 is assessed against ISP,

which shall be paid to BXA within 30 days of the date of entry of this

Order. Payment shall be made in the manner specified in the attached

instructions.

Second, that, for a period of ten years from the date of this

Order, ISP may not, directly or indirectly, participate in any way in

any transaction involving any commodity, software or technology

(hereinafter collectively referred to as ``item'') exported or to be

exported from the United States that is subject to the Regulations, or

in any other activity subject to the Regulations, including, but not

limited to:

A. Applying for, obtaining, or using any license,\3\ License

Exception, or export control document;

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\3\ For purposes of this Order, ``license'' includes any general

license established in 15 CFR Parts 768A-799A.

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B. Carrying on negotiations concerning, or ordering, buying,

receiving, using, selling, delivering, storing, disposing of,

forwarding, transporting, financing, or otherwise servicing in any way,

any transaction involving any item exported or to be exported from the

United States that is subject to the Regulations, or in any other

activity subject to the Regulations; or

C. Benefiting in any way from any transaction involving any item

exported or to be exported from the United States that is subject to

the Regulations, or in any other activity subject to the Regulations.

Third, that no person may, directly or indirectly, do any of the

following:

A. Export or reexport to or on behalf of the denied person any item

subject to the Regulations;

B. Take any action that facilitates the acquisition or attempted

acquisition by a denied person of the ownership, possession, or control

of any item subject to the Regulations that has been or will be

exported from the United States, including financing or other support

activities related to a transaction whereby a denied person acquires or

attempts to acquire such ownership, possession or control;

C. Take any action to acquire from or to facilitate the acquisition

or attempted acquisition from the denied person of any item subject to

the Regulations that has been exported from the United States;

D. Obtain from the denied person in the United States any item

subject to the Regulations with knowledge or reason to know that the

item will be, or is intended to be, exported from the United States; or

E. Engage in any transaction to service any item subject to the

Regulations that has been or will be exported from the United States

and that is owned, possessed or controlled by a denied person, or

service any item, of whatever origin, that is owned, possessed or

controlled by a denied person if such service involves the use of any

item subject to the Regulations that has been or will be exported from

the United States. For purposes of this paragraph, servicing means

installation, maintenance, repair, modification or testing.

Fourth, that, after notice and opportunity for comment as provided

in Sec. 766.23 of the Regulations, any person, firm, corporation, or

business organization related to the denied person by affiliation,

ownership, control, or position of responsibility in the conduct of

trade or related services may also be made subject to the provisions of

this Order.

Fifth, that as authorized by Sec. 766.18 of the Regulations, the

ten-year denial period set forth in paragraph SECOND above shall be

suspended for a period of three years beginning seven years from the

date of entry of this Order, and shall thereafter be waived, provided

that, during the period of suspension, ISP commits no violation of the

Act or any regulation, order or license issued thereunder.

Sixth, that this Order does not prohibit any export, reexport, or

other transaction subject to the Regulations where the only items

involved that are subject to the Regulations are the foreign-produced

direct product of U.S.-origin technology.

Seventh, that the proposed Charging Letter, the Settlement

Agreement, and this Order shall be made available to the public. A copy

of this Order shall be published in the Federal Register.

[[Page 31505]]

This Order, which constitutes the final agency action in this

matter, is effective immediately.

Entered this 11th day of June 1996.

John Despres,

Assistant Secretary for Export Enforcement.

[FR Doc. 96-15743 Filed 6-19-96; 8:45 am]

BILLING CODE 3510-DT-M