Action Affecting Export Privileges; Fawzi Mustapha Assi; Decision and Order

DEPARTMENT OF COMMERCE

Bureau of Export Administration

[Docket Number 99-BXA-01]

Action Affecting Export Privileges; Fawzi Mustapha Assi; Decision

and Order

In the Matter of: Fawzi Mustapha Assi, 7706 Middlepoint Street,

Dearborn, Michigan 48126, Respondent.

On January 7, 1999, 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 Fawzi Mustapha Assi (hereinafter

``Assi''). The charging letter alleged that Assi committed three

violations of the Export Administration Regulations (currently codified

at 15 CFR Parts 730-774 (1999)) (hereinafter the ``Regulations''),

issued pursuant to the Export Administration Act of 1979, as amended

(50 U.S.C.A. app. Secs. 2401-2420 (1991 & Supp. 1999)) (hereinafter the

``Act'').\1\

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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)), August 13, 1997 (3 CFR, 1997 Comp. 306

(1998)), and August 13, 1998 (3 CFR, 1998 Comp. 294 (1999)),

continued the Regulations in effect under the International

Emergency Economic Powers Act (currently codified at 50 U.S.C.A.

Secs. 1701-1706 (1991 & supp. 1999)).

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

13, 1998, Assi attempted to export from the United States to Lebanon a

thermal imaging camera without the export license that he knew or had

reason to know was required by Sections 742.4 and 742.6 of the

Regulations. BXA alleged that, by attempting to violate the Act, the

Regulations, or any order, license, or authorization issued thereunder,

Assi violated Section 764.2(c) of the Regulations. BXA also alleged

that, by selling, transferring, or forwarding commodities exported or

to be exported from the United States with knowledge or reason to know

that a violation of the Act, the Regulations, or any order, license, or

authorization issued thereunder occurred, was about to occur, or was

intended to occur with respect to the transaction, Assi violated

Section 764.2(e) of the Regulations.

Finally, BXA also alleged that, in connection with the attempted

export described above, Assi failed to file with the U.S. Customs

Service, at the time of the attempted export, the Shipper's Export

Declaration (SED), an export control document as defined in Part 772 of

the Regulations, required by Section 758.1(e) of the Regulations. BXA

alleged that, by failing to file the SED, Assi concealed material facts

from a United States agency for the purpose of or in connection with

effecting an export from the United States, and, in so doing, violated

Section 764.2(g) of the Regulations.

Thus, BXA alleged that Assi committed one violation of Section

764.2(c), one violation of Section 764.2(e), and one violation of

Section 764.2(g), for a total of three violations of the Regulations.

BXA presented evidence that the charging letter was served on Assi

in accordance with Section 766.3 of the Regulations but that he failed

to answer it, as required by 766.7 of the Regulations, and is therefore

in default. Thus, pursuant to Section 766.7 of the Regulations, BXA

moved that the Administrative Law Judge (hereinafter in 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 one violation of

Section 764.2(c), one violation of Section 764.2(e), and one violation

of Section 764.2(g), for a total of three violations of the Regulations

by Assi, 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 20 years, of all of Assi'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,

[[Page 40817]]

First, that, for a period of 20 years from the date of this Order,

Fawzi Mustapha Assi, 7706 Middlepoint Street, Dearborn, Michigan 48126,

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 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 facilities 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 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 Assi 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: July 12, 1999.

William A. Reinsch,

Under Secretary for Export Administration.

[FR Doc. 99-19250 Filed 7-27-99; 8:45 am]

BILLING CODE 3510-DT-M