Action Affecting Export Privileges; Scientific International, Inc.

DEPARTMENT OF COMMERCE

Bureau of Export Administration

Action Affecting Export Privileges; Scientific International,

Inc.

Order Denying Permission to Apply for or Use Export Licenses

In the Matter of: Scientific International, Inc., 143 Snowden

Lane, Princeton, New Jersey 08543.

On June 29, 1992, Scientific International, Inc. (Scientific

International) was convicted in the U.S. District Court for the

District of New Jersey of violating the Export Administration Act of

1979, as amended (currently codified at 50 U.S.C.A. app. Secs. 2401-

2420 (1991 & Supp. 1995)) (the Act),\1\ among other crimes.

Specifically, Scientific International was convicted of one count of

knowingly and willfully exporting and causing to be exported 660

graphite seal assemblies to the Department of Atomic Energy in Bombay,

India, through West Germany, without first having obtained the required

validated export license from the Department of Commerce.

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

(59 FR 43437, August 23, 1994), extended by Presidential Notice of

August 15, 1995 (60 FR 42767, August 17, 1995), continued the

Regulations in effect under the International Emergency Economic

Powers Act, 50 U.S.C.A. 1701-1706 (1991).

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Section 11(h) of the Act, provides that, at the discretion of the

Secretary of Commerce,\2\ no person convicted of violating the Act, or

certain other provisions of the United States Code, shall be eligible

to apply for or use any export license issued pursuant to, or provided

by, the Act or the Export Administration Regulations (currently

codified at 15 CFR parts 768-799 (1995)) (the Regulations) for a period

of up to 10 years from the date of the conviction. In addition, any

export license issued pursuant to the Act in which such a person had

any interest at the time of conviction may be revoked.

\2\ Pursuant to appropriate delegations of authority that are

reflected in the Regulations, the Director, Office of Export

Licensing, in consultation with the Director, Office of Export

Enforcement, exercises the authority granted to the Secretary by

Section 11(h) of the Act. Because of a recent Bureau of Export

Administration reorganization, this responsibility now rests with

the Director, Office of Exporter Services. Subsequent regulatory

references herein to the ``Director, Office of Export Licensing,''

should be read as meaning ``Director, Office of Exporter Services.''

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Pursuant to Sections 770.15 and 772.1(g) of the Regulations, upon

notification that a person has been convicted of violating the Act, the

Director, Office of Export Licensing, in consultation with the

Director, Office of Export Enforcement, shall determine whether to deny

that person permission to apply for or use any export license issued

pursuant to, or provided by, the Act and the Regulations, and shall

also determine whether to revoke any export license previously issued

to such a person.

Having received notice of Scientific International's conviction for

violating the Act, and following consultations with the Director,

Office of Export Enforcement, I have decided to deny Scientific

International permission to apply for or use any export license,

including any general license, issued pursuant to, or provided by, the

Act and the Regulations, for a period of 10 years from the date of its

conviction. The 10-year period ends on June 29, 2002. I have also

decided to revoke all export licenses issued pursuant to the Act in

which Scientific International had an interest at the time of its

conviction.

Accordingly, it is hereby ordered,

I. All outstanding individual validated licenses in which

Scientific International appears or participates, in any manner or

capacity, are hereby revoked and shall be returned forthwith to the

Office of Export Licensing for cancellation. Further, all of Scientific

International's privileges of participating, in any manner or capacity,

in any special licensing procedure, including, but not limited to,

distribution licenses, are hereby revoked.

II. Until June 29, 2002, Scientific International, Inc., 143

Snowden Lane, Princeton, New Jersey 08543, hereby is 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, in whole or in part, and subject to the Regulations.

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.

III. After notice and opportunity for comment as provided in

Section 770.15(h) of the Regulations, any person, firm, corporation, or

business organization related to Scientific International 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.

IV. As provided in Section 787.12(a) of the Regulations, without

prior disclosure of the facts to and specific authorization of the

Office of Export Licensing, 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 its

export privileges or then excluded from practice before the Bureau of

Export Administration; or (ii) order, buy, receive, use, sell, deliver,

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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.

V. This Order is effective immediately and shall remain in effect

until June 29, 2002.

VI. A copy of this Order shall be delivered to Scientific

International. This Order shall be published in the Federal Register.

Dated: February 5, 1996.

Eileen M. Albanese,

Acting Director, Office of Exporter Services.

[FR Doc. 96-3431 Filed 2-14-96; 8:45 am]

BILLING CODE 3510-DT-M