Action Affecting Export Privileges; Valtex International Corporation; In the Matter of Valtex International Corporation, 1000 San Antonio Road, Palo Alto, CA 94303, Respondent; Order Relating to Valtex International Corporation, 3674-3676 [05-1363]
Download as PDF
<![CDATA[
3674
Federal Register / Vol. 70, No. 16 / Wednesday, January 26, 2005 / Notices
sworn statement to OEE investigators,
Alexanyan stated the attempted export
of the film to the People’s Republic of
China without the required U.S.
Department of Commerce license was a
mistake due to a mis-communication
between himself and another employee
at Valtex. This statement was false
because Alexanyan knew or had reason
to know that a license was required
from the U.S. Department of Commerce
to export the film to the People’s
Republic of China and that no license
had been or would be obtained.
Whereas, BIS and Alexanyan having
entered into a Settlement Agreement
pursuant to Section766.18(a) of the
Regulations whereby they agreed to
settle this matter in accordance with the
terms and conditions set forth herein,
and the terms of the Settlement
Agreement having been approved by
me;
It is therefore ordered: First, that a
civil penalty of $88,000 is assessed
against Alexanyan which shall be paid
to the U.S. Department of Commerce
within 30 days from the date on which
Alexanyan enters a plea of guilty to
related criminal charges at a Rule 11
hearing in the United States District
Court for the District of Minnesota.
Payment shall be made by wire transfer
as specified in the attached instructions.
Second, that, pursuant to the Debt
Collection Act of 1982, as amended (31
U.S.C. 3701–3720E (2000)), the civil
penalty owed under this Order accrues
interest as more fully described in the
attached Notice, and, if payment is not
made by the due date specified herein,
Alexanyan will be assessed, in addition
to the full amount of the civil penalty
and interest, a penalty charge and an
administrative charge, as more fully
described in the attached Notice.
Third, that the timely payment of the
civil penalty set forth above is hereby
made a condition to the granting,
restoration, or continuing validity of any
export license, License Exception,
permission, or privilege granted, or to be
granted, to Alexanyan. Accordingly, if
Alexanyan should fail to pay the civil
penalty in a timely manner, the
undersigned may enter an Order
denying all of Alexanyan’s export
privileges for a period of one year from
the date of entry of this Order.
Fourth, that for a period of five years
from the date of this Order, Vladimir
Alexanyan, 934 Mercedes Avenue, Los
Altos, California 94022 (‘‘Alexanyan’’),
his successors or assigns, and, when
acting for or on behalf of Alexanyan, his
officers, representatives, agents, or
employees (‘‘denied person’’) may not,
directly or indirectly, participate in any
way in any transaction involving any
VerDate jul<14>2003
19:33 Jan 25, 2005
Jkt 205001
commodity, software, or technology
(hereinafter collectively referred to as
‘‘item’’) that is subject to the Regulations
and that is exported or to be exported
from the United States to the People’s
Republic of China, or in any other
activity subject to the Regulations that
involves the People’s Republic of China,
including, but not limited to:
A. Applying for, obtaining, or using
any license, License Exception, or
export control document that involves
exports to the People’s Republic of
China;
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 that is subject to the
Regulations and that is exported or to be
exported from the United States to the
People’s Republic of China, or in any
other activity subject to the Regulations
that involves the People’s Republic of
China; or
C. Benefitting in any way from any
transaction involving any item exported
or to be exported from the United States
to the People’s Republic of China that is
subject to the Regulations, or in any
other activity subject to the Regulations
that involves the People’s Republic of
China.
Fifth, that no person may, directly or
indirectly, do any of the actions
described below with respect to an item
that is subject to the Regulations and
that has been, will be, or is intended to
be exported or reexported to the
People’s Republic of China:
A. Export or reexport to or on behalf
of the denied person any item subject to
the Regulations from the United States
to the People’s Republic of China;
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 to the People’s Republic of China,
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 to the People’s Republic of China;
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
PO 00000
Frm 00005
Fmt 4703
Sfmt 4703
United States to the People’s Republic
of China; 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 to the People’s Republic
of China 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 to the
People’s Republic of China. For
purposes of this paragraph, servicing
means installation, maintenance, repair,
modification or testing.
Sixth, 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 Alexanyan 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.
Seventh, that this Order shall be
served on the Denied Person and on
BIS, and shall be published in the
Federal Register.
Eighth, that the proposed charging
letter, the Settlement Agreement, and
this Order shall be made available to the
public.
This Order, which constitutes the
final agency action in this matter, is
effective immediately.
Entered this 13th day of January 2005.
Wendy L. Wysong,
Acting Assistant Secretary of Commerce for
Export Enforcement.
[FR Doc. 05–1362 Filed 1–25–05; 8:45 am]
BILLING CODE 3510–DT–M
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
Action Affecting Export Privileges;
Valtex International Corporation; In the
Matter of Valtex International
Corporation, 1000 San Antonio Road,
Palo Alto, CA 94303, Respondent;
Order Relating to Valtex International
Corporation
The Bureau of Industry and Security,
United States Department of Commerce
(‘‘BIS’’) has notified Valtex International
Corporation (‘‘Valtex’’) of its intention
to initiate an administrative proceeding
against Valtex pursuant to Section 766.3
of the Export Administration
Regulations (currently codified at 15
CFR parts 730–774 (2004))
E:\FR\FM\26JAN1.SGM
26JAN1
Federal Register / Vol. 70, No. 16 / Wednesday, January 26, 2005 / Notices
(‘‘Regulations’’),1 and Section 13(c) of
the Export Administration Act of 1979,
as amended (50 U.S.C. app. §§ 2401–
2420 (2000)) (‘‘Act’’),2 by issuing a
proposed charging letter to Valtex that
alleged that Valtex committed seven
violations of the Regulations,
Specifically, the charges are:
1. 15 CFR 764.2(c)—Attempted Export
of Germanium Coated Polymide File to
the People’s Republic of China Without
the Required Department of Commerce
License: On or about October 28, 2002,
Valtex attempted to violate the
Regulations by attempting to export
Germanium coated polymide file
(‘‘film’’), an item subject to the
Regulations (ECCN 1A003),3 from the
United States to the People’s Republic
of China without obtaining the
Department of Commerce license
required by Section 742.4 of the
Regulations.
2. 15 CFR 764.2(e)—Buying an Item
With Knowledge a Violation of the
Regulations Would Occur: On or about
September 12, 2002, Valtex bought the
film referenced in Paragraph One with
knowledge that a violation of the
Regulations would occur. Specifically,
Valtex bought the film from a U.S.
manufacturer when Valtex knew that it
would attempt to export the film to the
People’s Republic of China without
obtaining the required Department of
Commerce license.
3. 15 CFR 764.2(c)—Attempted False
Statement On a Shipper’s Export
Declaration Concerning Authority to
Export: On or about October 28, 2002,
in connection with the attempted export
referenced in Paragraph One, Valtex
attempted a violation of the Regulations
by attempting to file or cause to be filed
a Shipper’s Export Declaration with the
United States Government that stated
the film qualified for export from the
1 The charged violations occurred in 2002. The
Regulations governing the violations at issue are
found in the 2002 version of the Code of Federal
Regulations (15 CFR parts 730–774 (2002)). The
2004 Regulations set forth the procedures that apply
to this matter.
2 From August 21, 1994 through November 12,
2000, the Act was in lapse. during that period, the
President, through Executive Order 12924, which
had been extended by successive Presidential
Notices, the last of which was August 3, 2000 (3
CFR, 2000 Comp. 397 (2001)), continued the
Regulations in effect under the International
Emergency Economic Powers Act (50 U.S.C.
§§ 1701–1706 (2000)) (‘‘IEEPA’’). On November 13,
2000, the Act was reauthorized and it remained in
effect through August 20, 2001. Since August 21,
2001, the Act has been in lapse and the President,
through Executive Order 13222 of August 17, 2001
(3 CFR, 2001 Comp. 783 (2002)), as extended by the
Notice of August 6, 2004 (59 F.R. 48763 (August 10,
2004)), has continued the Regulations in effect
under the IEEPA.
3 The term ‘‘ECCN’’ refers to an Export control
Classification Number. See Supp. 1 to 15 CFR 774.
VerDate jul<14>2003
19:33 Jan 25, 2005
Jkt 205001
United States as G–DEST.4 This
statement was false because, as
described in Paragraph One, a
Department of Commerce license was
required to export this item to the
People’s Republic of China.
4. 15 CFR 764.2(e)—Knowingly
Attempting to Make a False Statement
on a Shipper’s Export Declaration: On or
about October 28, 2002, in connection
with the transaction referenced in
Paragraph One, Valtex engaged in
conduct prohibited by the Regulations
by attempting to export the film with
knowledge that a violation of the
Regulations would occur. Specifically,
Valtex completed a Shipper’s Export
Declaration and attempted to file it with
the United States Government that
falsely stated the film qualified for
export from the United States as G–
DEST. At all times relevant hereto,
Valtex knew that a Department of
Commerce license was required to
export the film to the People’s Republic
of China.
5. 15 CFR 764.2(c)—Attempted False
Statement on a Shipper’s Export
Declaration Concerning Identity of
Ultimate Consignee: On or about
October 28, 2002, in connection with
the attempted export referenced in
Paragraph One, Valtex attempted to file
or cause to be filed a Shipper’s Export
Declaration with the United States
Government that falsely state the true
identity of the ultimate consignee.
Specifically, Valtex attempted to file a
Shipper’s Export Declaration that stated
the ultimate consignee was the China
Great Wall Industry Corporation in the
People’s Republic of China. This
statement was false because the actual
ultimate consignee in the transaction
was the Chinese Academy of Space and
Technology in the People’s Republic of
China.
6. 15 CFR 764.2(e)—Knowingly
Attempting to Make a False Statement
on a Shipper’s Export Declaration: On or
about October 28, 2002, in connection
with the attempted export referenced in
Paragraph One, Valtex engaged in
conduct prohibited by the Regulations
by attempting to export the film with
knowledge that a violation of the
Regulations would occur. Specifically,
Valtex completed a Shipper’s Export
Declaration and attempted to file it with
the United States Government that
falsely stated the identity of the ultimate
consignee for the transaction as
described in Paragraph Five. At all
times relevant hereto, Valtex knew that
4 The term ‘‘G–DEST’’ was a term used in pre1997 regulations and was a provision authorizing
exports of items that appeared on the Commerce
Control List but that did not required a validated
license. See 15 CFR 771.3 (1996).
PO 00000
Frm 00006
Fmt 4703
Sfmt 4703
3675
the ultimate consignee for the film was
the Chinese Academy of Space and
Technology, not the China Great Wall
Industry Corporation.
7. 15 CFR 764.2(c)—Attempting to
File a Shipper’s Export Declaration that
Failed to Provide Required Information:
On or about October 28, 2002, in
connection with the attempted export
referenced in Paragraph One, Valtex
attempted to file or cause to be filed a
Shipper’s Export Declaration with the
United States Government that failed to
show the ECCN as required by part 758
of the Regulations.
Whereas, BIS and Valtex having
entered into a Settlement Agreement
pursuant to Section 766.18(a) of the
Regulations whereby they agreed to
settle this matter in accordance with the
terms and conditions set forth therein,
and the terms of the Settlement
Agreement having been approved by
me;
IT is therefore ordered: First, that a
civil penalty of $77,000 is assessed
against Valtex which shall be paid to the
U.S. Department of Commerce within 30
days from the date on which Valtex
enters a plea of guilty to related criminal
charges at a Rule 11 hearing in the
United States District Court for the
District of Minnesota. Payment shall be
made by wire transfer as specified in the
attached instructions.
Second, that, pursuant to the Debt
Collection Act of 1982, as amended (31
U.S.C. 3701–3720E (2000)), the civil
penalty owned under this Order accrues
interest as more fully described in the
attached Notice, and, if payment is not
made by the due date specified herein,
Valtex will be assessed, in addition to
the full amount of the civil penalty and
interest, a penalty charge and an
administrative charge, as more fully
described in the attached Notice.
Third, that the timely payment of the
civil penalty set forth above is hereby
made a condition to the granting,
restoration, or continuing validity of any
export license, License Exception,
permission, or privilege granted, or to be
granted, to Valtex. Accordingly, if
Valtex should fail to pay the civil
penalty in a timely manner, the
undersigned may enter an Order
denying all of Valtex’s export privileges
for a period of one year from the date
of entry of this Order.
Fourth, Valtex shall implement an
Export Management System not later
than 12 months from the date of entry
of the Order. Said Export Management
System shall be in substantial
compliance with the Export
Managewmnet Systems Guidelines,
which are available from the GIS Web
site at https://www.bis.doc.gov/
E:\FR\FM\26JAN1.SGM
26JAN1
3676
Federal Register / Vol. 70, No. 16 / Wednesday, January 26, 2005 / Notices
ExportManagementSystems/
EMSGuidelines.html, which are
incorporated herein by reference. A
copy of said Export Management System
shall be transmitted to the Office of
Export Enforcement, U.S. Department of
Commerce, High Point Plaza, 4415 West
Harrison Street, Hillside, Illinois 60162,
not later than December 31, 2005.
Fifth, that for a period of five years
from the date of this Order, Valtex
International Corporation, 1000 San
Antonio Road, Palo Alto, California
94303 (‘‘Valtex’’), its successors or
assigns, and, when acting for or on
behalf of Valtex, its officers,
representatives, agents, or employees
(‘‘denied person’’) may not, directly or
indirectly, participate in any way in any
transaction involving any commodity,
software, or technology (hereinafter
collectively referred to as ‘‘item’’) that is
subject to the Regulations and that is
exported or to be exported from the
United States to the People’s Republic
of China, or in any other activity subject
to the Regulations that involves the
People’s Republic of China, or in any
other activity subject to the Regulations
that involves the People’s Republic of
China, including, but not limited to:
A. Applying for, obtaining, or using
any license, License Exception, or
export control document that involves
exports to the People’s Republic of
China;
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 that is subject to the
Regulations and that is exported or to be
exported from the United States to the
People’s Republic of China, or in any
other activity subject to the Regulations
that involves the People’s Republic of
China; or
C. Benefitting in any way from any
transaction involving any item exported
or to be exported from the United States
to the People’s Republic of China that is
subject to the Regulations, or in any
other activity subject to the Regulations
that involves the People’s Republic of
China.
Sixth, that no person may, directly or
indirectly, do any of the actions
described below with respect to an item
that is subject to the Regulations and
that has been, will be, or is intended to
be exported or reexported to the
People’s Republic of China:
A. Export or reexport to or on behalf
of the denied person any item subject to
the Regulations from the United States
to the People’s Republic of China;
VerDate jul<14>2003
19:33 Jan 25, 2005
Jkt 205001
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 to the People’s Republic of China,
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 to the People’s Republic of China;
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 to the People’s Republic
of China; 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 to the People’s Republic
of China 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 to the
People’s Republic of China. For
purposes of this paragraph, servicing
means installation, maintenance, repair,
modification or testing.
Seventh, 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 Valtex 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.
Eighth, that this Order shall be served
on the Denied Person and on BIS, and
shall be published in the Federal
Register.
Ninth, that the proposed charging
letter, the Settlement Agreement, and
this Order shall be made available to the
public.
This Order, which constitutes the
final agency action in this matter, is
effective immediately.
Entered this 14th day of January 2005.
Wendy L. Wysong,
Acting Assistant Secretary of Commerce for
Export Enforcement.
[FR Doc. 05–1363 Filed 1–25–05; 8:45 am]
BILLING CODE 3510–DT–M
PO 00000
Frm 00007
Fmt 4703
Sfmt 4703
DEPARTMENT OF COMMERCE
International Trade Administration
[A–427–801, A–428–801, A–475–801, A–588–
804, A–559–801, A–412–801]
Antifriction Bearings and Parts Thereof
From France, Germany, Italy, Japan,
Singapore, and the United Kingdom:
Extension of Time Limit for Preliminary
Results of Antidumping Duty
Administrative Reviews
Import Administration,
International Trade Administration,
Department of Commerce.
EFFECTIVE DATE: January 26, 2005.
FOR FURTHER INFORMATION CONTACT:
Susan Lehman or Richard Rimlinger,
AD/CVD Operations, Office 5, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW., Washington, DC 20230;
telephone: (202) 482–0180 and (202)
482–4477, respectively.
SUPPLEMENTARY INFORMATION:
AGENCY:
Background
At the request of interested parties,
the Department of Commerce (the
Department) initiated administrative
reviews of the antidumping duty orders
on antifriction bearings and parts
thereof from France, Germany, Italy,
Japan, Singapore, and the United
Kingdom for the period May 1, 2003,
through April 30, 2004. See Initiation of
Antidumping and Countervailing Duty
Administrative Reviews and Request for
Revocation in Part, 69 FR 39409 (June
30, 2004). The preliminary results of
reviews are currently due no later than
January 31, 2005.
Extension of Time Limit for Preliminary
Results of Antidumping Duty
Administrative Reviews
Section 751(a)(3)(A) of the Tariff Act
of 1930, as amended (the Act), requires
the Department to make a preliminary
determination within 245 days after the
last day of the anniversary month of an
order for which a review is requested
and a final determination within 120
days after the date on which the
preliminary determination is published.
However, if it is not practicable to
complete the review within these time
periods, section 751(a)(3)(A) of the Act
allows the Department to extend the
time limit for the preliminary
determination to a maximum of 365
days after the last day of the anniversary
month.
We determine that it is not practicable
to complete the preliminary results of
these reviews within the original time
E:\FR\FM\26JAN1.SGM
26JAN1
]]>Agencies
[Federal Register Volume 70, Number 16 (Wednesday, January 26, 2005)]
[Notices]
[Pages 3674-3676]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-1363]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
Action Affecting Export Privileges; Valtex International
Corporation; In the Matter of Valtex International Corporation, 1000
San Antonio Road, Palo Alto, CA 94303, Respondent; Order Relating to
Valtex International Corporation
The Bureau of Industry and Security, United States Department of
Commerce (``BIS'') has notified Valtex International Corporation
(``Valtex'') of its intention to initiate an administrative proceeding
against Valtex pursuant to Section 766.3 of the Export Administration
Regulations (currently codified at 15 CFR parts 730-774 (2004))
[[Page 3675]]
(``Regulations''),\1\ and Section 13(c) of the Export Administration
Act of 1979, as amended (50 U.S.C. app. Sec. Sec. 2401-2420 (2000))
(``Act''),\2\ by issuing a proposed charging letter to Valtex that
alleged that Valtex committed seven violations of the Regulations,
Specifically, the charges are:
---------------------------------------------------------------------------
\1\ The charged violations occurred in 2002. The Regulations
governing the violations at issue are found in the 2002 version of
the Code of Federal Regulations (15 CFR parts 730-774 (2002)). The
2004 Regulations set forth the procedures that apply to this matter.
\2\ From August 21, 1994 through November 12, 2000, the Act was
in lapse. during that period, the President, through Executive Order
12924, which had been extended by successive Presidential Notices,
the last of which was August 3, 2000 (3 CFR, 2000 Comp. 397 (2001)),
continued the Regulations in effect under the International
Emergency Economic Powers Act (50 U.S.C. Sec. Sec. 1701-1706
(2000)) (``IEEPA''). On November 13, 2000, the Act was reauthorized
and it remained in effect through August 20, 2001. Since August 21,
2001, the Act has been in lapse and the President, through Executive
Order 13222 of August 17, 2001 (3 CFR, 2001 Comp. 783 (2002)), as
extended by the Notice of August 6, 2004 (59 F.R. 48763 (August 10,
2004)), has continued the Regulations in effect under the IEEPA.
---------------------------------------------------------------------------
1. 15 CFR 764.2(c)--Attempted Export of Germanium Coated Polymide
File to the People's Republic of China Without the Required Department
of Commerce License: On or about October 28, 2002, Valtex attempted to
violate the Regulations by attempting to export Germanium coated
polymide file (``film''), an item subject to the Regulations (ECCN
1A003),\3\ from the United States to the People's Republic of China
without obtaining the Department of Commerce license required by
Section 742.4 of the Regulations.
---------------------------------------------------------------------------
\3\ The term ``ECCN'' refers to an Export control Classification
Number. See Supp. 1 to 15 CFR 774.
---------------------------------------------------------------------------
2. 15 CFR 764.2(e)--Buying an Item With Knowledge a Violation of
the Regulations Would Occur: On or about September 12, 2002, Valtex
bought the film referenced in Paragraph One with knowledge that a
violation of the Regulations would occur. Specifically, Valtex bought
the film from a U.S. manufacturer when Valtex knew that it would
attempt to export the film to the People's Republic of China without
obtaining the required Department of Commerce license.
3. 15 CFR 764.2(c)--Attempted False Statement On a Shipper's Export
Declaration Concerning Authority to Export: On or about October 28,
2002, in connection with the attempted export referenced in Paragraph
One, Valtex attempted a violation of the Regulations by attempting to
file or cause to be filed a Shipper's Export Declaration with the
United States Government that stated the film qualified for export from
the United States as G-DEST.\4\ This statement was false because, as
described in Paragraph One, a Department of Commerce license was
required to export this item to the People's Republic of China.
---------------------------------------------------------------------------
\4\ The term ``G-DEST'' was a term used in pre-1997 regulations
and was a provision authorizing exports of items that appeared on
the Commerce Control List but that did not required a validated
license. See 15 CFR 771.3 (1996).
---------------------------------------------------------------------------
4. 15 CFR 764.2(e)--Knowingly Attempting to Make a False Statement
on a Shipper's Export Declaration: On or about October 28, 2002, in
connection with the transaction referenced in Paragraph One, Valtex
engaged in conduct prohibited by the Regulations by attempting to
export the film with knowledge that a violation of the Regulations
would occur. Specifically, Valtex completed a Shipper's Export
Declaration and attempted to file it with the United States Government
that falsely stated the film qualified for export from the United
States as G-DEST. At all times relevant hereto, Valtex knew that a
Department of Commerce license was required to export the film to the
People's Republic of China.
5. 15 CFR 764.2(c)--Attempted False Statement on a Shipper's Export
Declaration Concerning Identity of Ultimate Consignee: On or about
October 28, 2002, in connection with the attempted export referenced in
Paragraph One, Valtex attempted to file or cause to be filed a
Shipper's Export Declaration with the United States Government that
falsely state the true identity of the ultimate consignee.
Specifically, Valtex attempted to file a Shipper's Export Declaration
that stated the ultimate consignee was the China Great Wall Industry
Corporation in the People's Republic of China. This statement was false
because the actual ultimate consignee in the transaction was the
Chinese Academy of Space and Technology in the People's Republic of
China.
6. 15 CFR 764.2(e)--Knowingly Attempting to Make a False Statement
on a Shipper's Export Declaration: On or about October 28, 2002, in
connection with the attempted export referenced in Paragraph One,
Valtex engaged in conduct prohibited by the Regulations by attempting
to export the film with knowledge that a violation of the Regulations
would occur. Specifically, Valtex completed a Shipper's Export
Declaration and attempted to file it with the United States Government
that falsely stated the identity of the ultimate consignee for the
transaction as described in Paragraph Five. At all times relevant
hereto, Valtex knew that the ultimate consignee for the film was the
Chinese Academy of Space and Technology, not the China Great Wall
Industry Corporation.
7. 15 CFR 764.2(c)--Attempting to File a Shipper's Export
Declaration that Failed to Provide Required Information: On or about
October 28, 2002, in connection with the attempted export referenced in
Paragraph One, Valtex attempted to file or cause to be filed a
Shipper's Export Declaration with the United States Government that
failed to show the ECCN as required by part 758 of the Regulations.
Whereas, BIS and Valtex having entered into a Settlement Agreement
pursuant to Section 766.18(a) of the Regulations whereby they agreed to
settle this matter in accordance with the terms and conditions set
forth therein, and the terms of the Settlement Agreement having been
approved by me;
IT is therefore ordered: First, that a civil penalty of $77,000 is
assessed against Valtex which shall be paid to the U.S. Department of
Commerce within 30 days from the date on which Valtex enters a plea of
guilty to related criminal charges at a Rule 11 hearing in the United
States District Court for the District of Minnesota. Payment shall be
made by wire transfer as specified in the attached instructions.
Second, that, pursuant to the Debt Collection Act of 1982, as
amended (31 U.S.C. 3701-3720E (2000)), the civil penalty owned under
this Order accrues interest as more fully described in the attached
Notice, and, if payment is not made by the due date specified herein,
Valtex will be assessed, in addition to the full amount of the civil
penalty and interest, a penalty charge and an administrative charge, as
more fully described in the attached Notice.
Third, that the timely payment of the civil penalty set forth above
is hereby made a condition to the granting, restoration, or continuing
validity of any export license, License Exception, permission, or
privilege granted, or to be granted, to Valtex. Accordingly, if Valtex
should fail to pay the civil penalty in a timely manner, the
undersigned may enter an Order denying all of Valtex's export
privileges for a period of one year from the date of entry of this
Order.
Fourth, Valtex shall implement an Export Management System not
later than 12 months from the date of entry of the Order. Said Export
Management System shall be in substantial compliance with the Export
Managewmnet Systems Guidelines, which are available from the GIS Web
site at https://www.bis.doc.gov/
[[Page 3676]]
ExportManagementSystems/EMSGuidelines.html, which are incorporated
herein by reference. A copy of said Export Management System shall be
transmitted to the Office of Export Enforcement, U.S. Department of
Commerce, High Point Plaza, 4415 West Harrison Street, Hillside,
Illinois 60162, not later than December 31, 2005.
Fifth, that for a period of five years from the date of this Order,
Valtex International Corporation, 1000 San Antonio Road, Palo Alto,
California 94303 (``Valtex''), its successors or assigns, and, when
acting for or on behalf of Valtex, its officers, representatives,
agents, or employees (``denied person'') may not, directly or
indirectly, participate in any way in any transaction involving any
commodity, software, or technology (hereinafter collectively referred
to as ``item'') that is subject to the Regulations and that is exported
or to be exported from the United States to the People's Republic of
China, or in any other activity subject to the Regulations that
involves the People's Republic of China, or in any other activity
subject to the Regulations that involves the People's Republic of
China, including, but not limited to:
A. Applying for, obtaining, or using any license, License
Exception, or export control document that involves exports to the
People's Republic of China;
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 that is subject to the Regulations
and that is exported or to be exported from the United States to the
People's Republic of China, or in any other activity subject to the
Regulations that involves the People's Republic of China; or
C. Benefitting in any way from any transaction involving any item
exported or to be exported from the United States to the People's
Republic of China that is subject to the Regulations, or in any other
activity subject to the Regulations that involves the People's Republic
of China.
Sixth, that no person may, directly or indirectly, do any of the
actions described below with respect to an item that is subject to the
Regulations and that has been, will be, or is intended to be exported
or reexported to the People's Republic of China:
A. Export or reexport to or on behalf of the denied person any item
subject to the Regulations from the United States to the People's
Republic of China;
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 to the People's Republic of China,
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 to the
People's Republic of China;
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 to
the People's Republic of China; 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 to
the People's Republic of China 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 to the
People's Republic of China. For purposes of this paragraph, servicing
means installation, maintenance, repair, modification or testing.
Seventh, 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 Valtex 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.
Eighth, that this Order shall be served on the Denied Person and on
BIS, and shall be published in the Federal Register.
Ninth, that the proposed charging letter, the Settlement Agreement,
and this Order shall be made available to the public.
This Order, which constitutes the final agency action in this
matter, is effective immediately.
Entered this 14th day of January 2005.
Wendy L. Wysong,
Acting Assistant Secretary of Commerce for Export Enforcement.
[FR Doc. 05-1363 Filed 1-25-05; 8:45 am]
BILLING CODE 3510-DT-M
