Action Affecting Export Privileges; Suburban Guns (PTY) Ltd.

DEPARTMENT OF COMMERCE

Bureau of Export Administration

Action Affecting Export Privileges; Suburban Guns (PTY) Ltd.

Order Denying Permission To Apply for or Use Export Licenses

On July 25, 1997, Suburban Guns (Pty) Ltd. (Suburban Guns) was

convicted in the United States District Court for the Southern District

of New York of one count of violating the Export Administration Act of

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

2420 (1991 & Supp. 1997)) (the Act),\1\ and one count of violating the

International Emergency Economic Powers Act (currently codified at 50

U.S.C.A. 1701-1706 (1991 & Supp. 1997)) (IEEPA). Specifically, Suburban

Guns was convicted of knowingly and willfully causing to be exported to

South Africa numerous firearms designated on the Commerce Control List

without obtaining the required validated export licenses from the

Department of Commerce.

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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 IEEPA.

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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

the IEEPA, 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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\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 Section 766.25 and 750.8(a) of the Regulations, upon

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

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

with the Director, Office of Export Enforcement, shall determine

whether to deny that person 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 Suburban Guns's conviction for violating

the Act and the IEEPA and following consultations with the Acting

Director, Office of Export Enforcement, I have decided to deny Suburban

Guns 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 its conviction.

The 10-year period ends on July 25, 2007. I have also decided to revoke

all licenses issued pursuant to the Act in which Suburban guns had an

interest at the time of its conviction.

Accordingly, it is hereby

Ordered

I. Until July 25, 2007, Suburban Guns (Pty) Ltd., 119 Main Road,

Plumstead 7800, Cape Town, South Africa, may not, directly or

indirectly, participate in any way, in any transaction involving any

commodity, software or technology

[[Page 15829]]

(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 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.

III. After notice and opportunity for comment as provided in

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

business organization related to Suburban Guns 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. 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-product direct

product of U.S.-origin technology.

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

until July 25, 2007.

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

Order shall be published in the Federal Register.

Dated: March 23, 1998.

Eileen M. Albanese,

Director, Office of Exporter Services.

[FR Doc. 98-8521 Filed 3-31-98; 8:45 am]

BILLING CODE 3510-DT-M