Acting Affecting Export Privileges; Wayne P. Smith; Order Denying Permission To Apply for or Use Export Licenses

DEPARTMENT OF COMMERCE

Bureau of Export Administration

Acting Affecting Export Privileges; Wayne P. Smith; Order Denying

Permission To Apply for or Use Export Licenses

In the Matter of: Wayne P. Smith currently incarcerated at:

Federal Correction Institute, USM No. 09046-035, Federal Detention

Center, 5010 Whatley Road, Oakdale, Louisiana 71463 and with an

address at: 2333 Big Woods Edgerly Road, Rt. 1, Box 845c, Vinton,

Louisiana 70668.

On July 3, 1996, Wayne P. Smith (Smith) was convicted in the United

States District Court for the Western District of Louisiana, Lake

Charles Division, on one count of violating Section 38 of the Arms

Export Control Act (currently codified at 22 U.S.C.A. 2778 (1990 &

Supp. 1998)) (the AECA). Specifically, Smith was convicted of knowingly

and willfully exporting and causing to be exported to England 80 plain

self-aligning ball bearings designed for and used on the McDonald

Douglas F-4 Phantom II military jet, without obtaining the required

export license from the Department of State.

Section 11(h) of the Export Administration Act of 1979, as amended

currently codified at 50 U.S.C.A. app. Secs. 2401-2420 (1991 & Supp.

1998)) (the Act),\1\ provides that, at the discretion of

[[Page 26776]]

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

AECA, or certain other provisions of the United States Code, shall be

eligible to apply for or use any license, including any License

Exception, issued pursuant to, or provided by, the Act or the Export

Administration Regulations (currently codified at 15 CFR Parts 730-774

(1997)) (the Regulations), for a period of up to 10 years from the date

of the conviction. In addition, any license issued pursuant to the Act

in which such a person had any interest at the time of conviction may

be revoked.

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\1\ 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)), August 14, 1996 (3

CFR, 1996 Comp. 298 (1997)), and August 13, 1997 (62 FR 43629,

August 15, 1997), continued the Export Administration Regulations in

effect under the International Emergency Economic Powers Act (50

U.S.C.A. Secs. 1701-1706 (1991 & Supp. 1998)).

\2\ Pursuant to appropriate delegations of authority, the

Director, Office of Exporter Services, in consultation with the

Director, Office of Export Enforcement, exercises the authority

granted to the Secretary by Section 11(h) of the Act.

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Pursuant to Sections 766.25 and 750.8(a) of the Regulations, upon

notifications that a person has been convicted of violating the AECA,

the Director, Office of Exporter Services, in consultation with the

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

that permission to apply for or use any license, including any License

Exception, issued pursuant to, or provided by, the Act or the

Regulations, and shall also determine whether to revoke any license

previously issued to such a person.

Having received notice of Smith's conviction for violating the

AECA, and following consultations with the Acting Director, Office of

Export Enforcement, I have decided to deny Smith permission to apply

for or use any license, including any License Exception, issued

pursuant to, or provided by, the Act and the Regulations, for a period

of 10 years from the date of his conviction. The 10-year period ends on

July 3, 2006. I have also decided to revoke all licenses issued

pursuant to the Act in which Smith had an interest at the time of his

conviction.

Accordingly, it is hereby ordered.

I. Until July 3, 2006, Wayne P. Smith, currently incarcerated at

the Federal Correction Institute, USM No. 09046-035, Federal Detention

Center, 5010 Whatley Road, Oakdale, Louisiana 71463, and with an

address at 2333 Big Woods Edgerly Road, Rt. 1, Box 845c, Vinton,

Louisiana 70668, 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.

II. No person may do, directly or indirectly, 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 Untied 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 which 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.

III. After notice and opportunity for comment as provided in

Section 766.23 of the Regulations, any person, firm, corporation, or

business organization related to Smith by affiliation, ownership,

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

related services may also be subject to the provisions of this Order.

IV. 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.

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

until July 3, 2006.

VI. A copy of this Order shall be delivered to Smith. This Order

shall be published in the Federal Register.

Dated: May 5, 1998.

Eileen M. Albanese,

Director, Office of Exporter Services.

[FR Doc. 98-12769 Filed 5-13-98; 8:45 am]

BILLING CODE 3510-DT-M