Action Affecting Export Privileges; Doornbos, GMBH

DEPARTMENT OF COMMERCE

Bureau of Export Administration

Action Affecting Export Privileges; Doornbos, GMBH

In the matter of: Doornbos, GMBH, Emscherstrasse 4, 42697

Solingen, Germany, Respondent.

Order

The Office of Export Enforcement, Bureau of Export Administration,

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

GmbH (Doornbos) 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 (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 Doornbos violated the provisions of Sections 787.2,

787.3(b), 787.4(a) and 787.5(a) as follows:

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

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

August 15, 1995 (3 C.F.R., 1995 Comp. 501 (1996)), and extended

again on August 14, 1996 (61 Fed. Reg. 42527, August 15, 1996),

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, 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.

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1. between on or about May 1, 1991 and on or about June 15, 1995,

Doornbos conspired with Helmut Korelski and others to evade U.S. export

control laws that restricted exports to Libya by acquiring various

equipment from several companies in the United States, representing

that the equipment was for use in Germany, then selling the U.S.-origin

equipment to the Dong Ah Consortium for use in the Great Man Made River

Project in Libya, transporting it to Libya through the Netherlands and/

or Germany, without applying for and obtaining the export

authorizations that the conspirators knew or had reason to know were

required by Section 772.1 of the Regulations, in violation of Section

787.3(b) of the Regulations;

2. in furtherance of the conspiracy described above, between on or

about May 1, 1991 and on or about June 15, 1995, Doornbos caused, aided

or abetted the export of U.S.-origin equipment from the United States,

through the Netherlands and/or Germany, to Libya for use in the Great

Man Made River Project, without applying for and obtaining the export

authorizations that Doornbos knew or had reason to know were required

by Section 772.1 of the Regulations, in violation of Sections 787.2 and

787.4(a) of the Regulations; and

3. in furtherance of the conspiracy described above, between on or

about May 1, 1991 and on or about June 15, 1995, Doornbos caused to be

filed with the U.S. Customs Service Shipper's Export Declarations

containing false and misleading misrepresentations of material fact, in

violation of Section 787.5(a) of the Regulations;

BXA and Doornbos 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, for a period of four years from the date of this

Order, Doornbos and all of its successors or assigns, and all of its

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

behalf of Doornbos, 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 C.F.R. 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

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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.

Second, 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 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.

Third, 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.

Fourth, 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.

Fifth, 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 18th day of December, 1996.

Frank W. Deliberti,

Acting Assistant Secretary for Export Enforcement.

[FR Doc. 96-32906 Filed 12-26-96; 8:45 am]

BILLING CODE 3510-DT-M