Action Affecting Export Privileges; Rodco International, Inc.

DEPARTMENT OF COMMERCE

Bureau of Export Administration

Action Affecting Export Privileges; Rodco International, Inc.

In the Matter of: Rodco International, Inc., 1300 Patricia Drive

#1403, San Antonio, Texas 78213, Respondent.

Order

The Office of Export Enforcement, Bureau of Export Administration,

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

International, Inc. (Rodco) 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. 2401-

2420 (1991 & Supp. 1996)) (the Act),\1\ and the Export Administration

Regulations (currently codified at 15 C.F.R. Parts 768-799 (1996), as

amended (61 FR 12714 (March 25, 1996)) (the Regulations),\2\ based on

allegations that, between on or about June 12, 1992 and on or about

December 3, 1993, Rodco exported U.S.-origin chemicals from the United

States to Mexico on 11 separate occasions without obtaining the

validated licenses required by Section 772.1(b) of the Regulations; and

---------------------------------------------------------------------------

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

C.F.R., 1994 Comp. 917 (1995)), extended by Presidential Notice of

August 15, 1995 (60 FR 42767, August 17, 1995), and extended again

on August 14, 1996 (61 FR 42527, August 15, 1996), continued the

Regulations in effect under the International Emergency Economic

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

\2\ The March 25, 1996 Federal Register publication

redesignated, but did not republish, the existing Regulations as 15

C.F.R. Parts 768A-799A. In addition, the March 25 Federal Register

publication restructured and reorganized the Regulations,

designating them as an interim rule at 15 C.F.R. Parts 730-774,

effective April 24, 1996.

---------------------------------------------------------------------------

BXA and Rodco 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 $110,000 is assessed against Rodco,

which shall be suspended in its entirely for a period of one year from

the date of entry of this Order. Payment shall thereafter be waived,

provided that, during the period of suspension, Rodco has committed no

violation of the Act, or any regulation, order, or license issued

thereunder.

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

Rodco International, Inc., 1300 Patricia Drive, #1403, San Antonio,

Texas 78213, and all of its successors or assigns, and all of its

officers, representatives, agents, and employees when acting for or on

behalf of Rodco, 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;

---------------------------------------------------------------------------

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

license established in 15 C.F.R. Parts 768A-799A.

---------------------------------------------------------------------------

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 the 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 the 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

[[Page 54419]]

has been or will be exported from the United States and that is owned,

possessed or controlled by the denied person, or service any item, of

whatever origin, that is owned, possessed or controlled by the 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 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.

Sixth, 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.

This Order, which constitutes the final agency action in this

matter, is effective immediately.

Entered this 9th day of October 1996.

Frank W. Deliberti,

Acting Assistant Secretary for Export Enforcement.

[FR Doc. 96-26739 Filed 10-17-96; 8:45 am]

BILLING CODE 3510-DT-M