Pan Asia Exim Enterprises PTE Limited; Decision and Order

DEPARTMENT OF COMMERCE

Export Administration

Pan Asia Exim Enterprises PTE Limited; Decision and Order

In the Matter of: Pan Asia Exim Enterprises PTE Limited, 108

Tagore Lane, Singapore 2678, Respondent.

On March 5, 1996, the Office of Export Enforcement, Bureau of

Export Administration, United States Department of Commerce

(hereinafter ``BXA''), issued a charging letter initiating an

administrative proceeding against Pan Asia Exim Enterprises PTE Limited

(hereinafter ``Pan Asia''). The charging letter alleged that Pan Asia

committed one violation of the Export Administration Regulations (61 FR

12734-13041, March 25, 1996, to be codified at 15 CFR parts 730-774)

(hereinafter the ``Regulations''), \1\ issued pursuant to the Export

Administration Act of 1979, as amended (50 U.S.C.A. app. 2401-2420

(1991 & Supp. 1997)) (hereinafter the ``Act'').\2\

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\1\ The violation at issue occurred in 1993. The Regulations

governing the violation are found in the 1993 version of the Code of

Federal Regulations (15 CFR parts 768-799 (1993)) and are referred

to hereinafter as the former Regulations. Since that time, the

Regulations have been reorganized and restructured; the restructured

Regulations, to be codified at 15 CFR parts 730-774, establish the

procedures that apply to the matters set forth in this decision and

order.

\2\ The Act expired on August 20, 1994. Executive Order 12924 (3

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

August 15, 1995 (3 CFR, 1995 Comp. 501 (1996)) and 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.

Secs. 1701-1706 (1996 & Supp. 1997)).

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Specifically, the charging letter alleged that, on or about April

22, 1993, Pan Asia reexported U.S.-origin spare parts for small 4HP to

12HP engines from Singapore to Vietnam without obtaining from BXA the

reexport authorization required by section 774.1(a) of the former

Regulations. BXA alleged that, by reexporting commodities to any person

or destination in violation of or contrary to the terms of the Act, or

any regulation, order, or license issued thereunder, Pan Asia committed

one violation of Section 787.6 of the former Regulations.

The charging letter was served on Pan Asia on March 15, 1996. Pan

Asia failed to answer the charging letter within 30 days of service of

the charging letter, as required by section 788.7 of the former

Regulations. Thus, pursuant to section 766.7 of the Regulations, BXA

moved that the Administrative Law Judge (hereinafter the ``ALJ'') find

the facts to be as alleged in the charging letter and render a

Recommended Decision and Order.

Following BXA's motion, the ALJ issued a Recommended Decision and

Order in which he found the facts to be as alleged in the charging

letter, and concluded that those facts constitute a violation of the

former Regulations by Pan Asia, as BXA alleged. The ALJ also agreed

with BXA's recommendation that the appropriate penalty to be imposed

for that violation is a denial, for a period of two years, of all of

Pan Asia's export privileges. As provided by section 766.22 of the

Regulations, the Recommended Decision and Order has been referred to me

for final action.

Based on my review of the entire record, I affirm the findings of

fact and conclusions of law in the Recommended Decision and Order of

the ALJ.

Accordingly, it is therefore Ordered,

First, That, for a period of two years from the date of this Order,

Pan Asia Exim Enterprises PTE Limited, 108 Tagore Lane, Singapore 2678,

and all its successors, assignees, officers, representatives, agents

and employees, whenever acting within the scope of their employment

with Pan Asia, 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, License

Exception, or export control document;

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.

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

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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 section 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 this order shall be served on Pan Asia and on BXA, and

shall be published in the Federal Register.

This Order, which constitutes the final agency action in this

matter, is effective immediately.

Dated: May 29, 1997.

William A. Reinsch,

Under Secretary for Export Administration.

[FR Doc. 97-14648 Filed 6-4-97; 8:45 am]

BILLING CODE 3510-DT-M