Action Affecting Export Privileges; Orcas International, Inc.; In the Matter of Orcas International, Inc., 230 U.S. Highway 206, Suite 3, Flanders, NJ 07836; Respondent, 12167-12168 [06-2239]
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Federal Register / Vol. 71, No. 46 / Thursday, March 9, 2006 / Notices
III. After notice and opportunity for
comment as provided in § 766.23 of the
Regulations, any other person, firm,
corporation, or business organization
related to Erik Kyriacou 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.
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 foreignproduced direct product of U.S.-origin
technology.
V. This order is effective immediately
and shall remain in effect until July 19,
2015.
VI. In accordance with Part 756 of the
Regulations, Kyriacou may file an
appeal of this Order with the Under
Secretary of Commerce for Industry and
Security. The appeal must be filed
within 45 days from the date of this
Order and must comply with the
provisions of Part 756 of the
Regulations.
VII. A copy of this Order shall be
delivered to Kyriacou. This Order shall
be published in the Federal Register.
Dated: March 1, 2006.
Eileen M. Albanese,
Director, Office of Exporter Services.
[FR Doc. 06–2237 Filed 3–8–06; 8:45 am]
BILLING CODE 3510–DT–M
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
Action Affecting Export Privileges;
Orcas International, Inc.; In the Matter
of Orcas International, Inc., 230 U.S.
Highway 206, Suite 3, Flanders, NJ
07836; Respondent
Order
hsrobinson on PROD1PC70 with NOTICES
The Bureau of Industry and Security,
U.S. Department of Commerce (‘‘BIS’’)
has notified Orcas International, Inc.
(hereinafter referred to as ‘‘Orcas’’ of its
intention to initiate an administrative
proceeding against Orcas pursuant to
§ 766.3 of the Export Administration
Regulations (currently codified at 15
CFR parts 730–774 (2005))
(‘‘Regulations’’) 1 and Section 13(c) of
the Export Administration Act of 1979,
as amended (50 U.S.C. app. § § 2401
1 The violations charged occurred in 2000
through 2002. The Regulations governing the
violations at issue are found in the 2000 through
2002 versions of the Code of Federal Regulations
(15 CFR parts 730–774 (2000–2002)). The 2005
Regulations establish the procedures that apply to
this matter.
VerDate Aug<31>2005
13:58 Mar 08, 2006
Jkt 208001
2420 (2000)) (‘‘Act’’),2 by issuing a
proposed charging letter to Orcas that
alleged that Orcas committed two
violations of the Regulations.
Specifically, the charges are:
1. One Violation of 15 CFR 764.2(d)—
Conspiracy to Export Toxins to North
Korea Without the Required License:
Beginning in late 2000 and continuing
into September 2002, Orcas conspired
and acted in concert with others, known
and unknown, to export toxins from the
United States to North Korea without
the required Department of Commerce
license. The goal of the conspiracy was
to obtain toxins, including Aflatoxin
(M1, P1, Q1) and Staphyloccocal
Enterotoxin (A and B), items subject to
the Regulations and classified under
export control classification number
(‘‘ECCN’’) 1C351, on behalf of a North
Korean end-user and to export those
toxins to North Korea. In furtherance of
the conspiracy, Orcas acquired the
toxins from a U.S. company and then
attempted to export them from the
United States to a co-conspirator in the
Netherlands who was to complete the
export to North Korea. Contrary to
Section 742.2 of the Regulations, no
Department of Commerce license was
obtained for the export of toxins from
the United States to North Korea.
2. One Violation of 15 CFR 764.2(b)—
Attempting to Export Toxins Without
the Required License: On or about
September 12, 2002, Orcas attempted to
export toxins, Aflatoxin (M1, P1, Q1)
and Straphyloccocal Enterotoxin (A and
B), items subject to the Regulations and
classified under ECCN 1C351, from the
United States to North Korea without
obtaining an export license from the
Department of Commerce as required by
Section 742.2 of the Regulations.
Whereas, BIS and Orcas have 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
Whereas, I have approved the terms of
such Settlement Agreement;
2 From August 21, 1994 through November 12,
2000, the Act was in lapse. During that period, the
President, through Executive Order 12924, which
has 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,
Act has been in lapse and the President, through
Executive Order 13222 of August 17, 2001 (3 CFR,
2001 Comp. 783 (2002)), which has been extended
by successive presidential notice, the most recent
being that of August 2, 2005 (70 FR 45273 (August
5, 2005)), has continued the Regulations in effect
under the IEEPA.
PO 00000
Frm 00007
Fmt 4703
Sfmt 4703
12167
It is therefore ordered:
First, that a civil penalty of $19,800 is
assessed against Orcas, which shall be
paid to the U.S. Department of
Commerce no later than 30 days from
the date of entry of this Order. Payment
shall be made in the manner 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,
Orcas 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 agreed to in paragraph 2.a
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 Orcas.
Failure to make timely payment of the
civil penalty set forth above shall result
in the denial of all Orcas’s export
privileges under the Regulations for a
period of one year from the date of
imposition of the penalty. The payment
of the civil penalty is guaranteed by Mr.
Graneshawar K. Rao (hereinafter
referred to as ‘‘K.G. Rao’’), in his
individual capacity, and K.G. Rao and
Orcas, are jointly and severally liable for
the payment of the penalty.
Fourth, that for a period of four years
from the date of entry of this Order,
Orcas, its successors or assigns, and
when, acting for or on behalf of Orcas,
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’’) exported or to be exported from
the United States that is specified on the
Commerce Control List (‘‘Control
List’’) 3 or in any other activity that is
subject to the Regulations involving an
item that is specified on the Control
List, including, but not limited to:
A. Applying for, obtaining, or using
any license, License Exception, or
export control document in connection
with an item that is specified on the
Control List;
B. Carrying on negotiations
concerning, or ordering, buying,
receiving, using, selling, delivering,
3 The Commerce Control List is set forth in Supp.
1 to part 774 of the Regulations ‘‘EAR99’’ items are
subject to the Regulations but not ‘‘specified’’ on
the Control List. See 15 CFR 774.1.
E:\FR\FM\09MRN1.SGM
09MRN1
hsrobinson on PROD1PC70 with NOTICES
12168
Federal Register / Vol. 71, No. 46 / Thursday, March 9, 2006 / Notices
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
specified on the Control List, or in any
other activity subject to the Regulations
involving an item that is specified on
the Control List; or
C. Benefitting in any way from any
transaction involving any item exported
or to be exported from the United States
that is specified on the Control List, or
in any other activity subject to the
Regulations involving an item that is
specified on the Control List.
Fifth, 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 specified
on the Control List;
B. Take any action that facilitates the
acquisition or attempted acquisition by
the Denied Person of the ownership,
possession, or control of any item
specified on the Control List 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 specified on the Control List
that has been exported from the United
States;
D. Obtain from the Denied Person in
the United States any item specified on
the Control List 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 specified on the Control List
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
specified on the Control List that has
been or will be exported from the
United States. 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 Orcas 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 the
Order.
VerDate Aug<31>2005
14:35 Mar 08, 2006
Jkt 208001
Seventh, 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.
Eighth, that the proposed charging
letter, the Settlement Agreement, and
this Order shall be made available to the
public.
Ninth, that this Order shall be served
on the Denied Person and on BIS, and
shall be published in the Federal
Register.
This Order, which constitutes the
final agency action in this manner, is
effective immediately.
Entered this 2nd day of March 2006.
Darryl W. Jackson,
Assistant Secretary of Commerce for Export
Enforcement.
[FR Doc. 06–2239 Filed 3–8–06; 8:45 am]
BILLING CODE 3510–DT–M
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
Action Affecting Export Privileges;
Graneshawar K. Rao; In the Matter of:
Mr. Graneshawar K. Rao, Orcas
International, Inc., 230 U.S. Highway
206, Suite 3, Flanders, NJ 07838;
Respondent
Order
The Bureau of Industry and Security,
U.S. Department of Commerce (‘‘BIS’’)
has notified Graneshawar K. Rao
(hereinafter referred to as ‘‘K.G. Rao’’) of
its intention to initiate an administrative
proceeding against K.G. Rao pursuant to
Section 766.3 of the Export
Administration Regulations (currently
codified at 15 CFR parts 730–774
(2005)) (‘‘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
1 The violations charged occurred in 2000
through 2002. The regulations governing the
violations at issue are found in the 2000 through
2002 versions of the Code of Federal Regulations
(15 CFR parts 730–774 (2000–2002)). The 2005
Regulations establish 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
has 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
PO 00000
Frm 00008
Fmt 4703
Sfmt 4703
issuing a proposed charging letter to
K.G. Rao that alleged that K.G. Rao
committed two violations of the
Regulations. Specifically, the charges
are:
1. One Violation of 15 CFR 764.2(d)—
Conspiracy to Export Toxins to North
Korea Without the Required License:
Beginning in or about late 2000 and
continuing into or about September
2002, K.G. Rao conspired and acted in
concert with others, known and
unknown, to export toxins from the
United States to North Korea without
the required Department of Commerce
license. The goal of the conspiracy was
to obtain toxins, including Aflatoxin
(M1, P1, Q1) and Staphyloccocal
Enterotoxin (A and B), items subject to
the Regulations and classified under
export control classification number
(‘‘ECCN’’) 1C351, on behalf of a North
Korean end-user and to export those
toxins to North Korea. In furtherance of
the conspiracy, K.G. Rao acquired the
toxins from a U.S. company and then
attempted to export them from the
United States to a co-conspirator in the
Netherlands who was to complete the
export to North Korea. Contrary to
Section 742.2 of the Regulations, no
Department of Commerce license was
obtained for the export of toxins from
the United States to North Korea.
2. One Violation of 15 CFR 764.2(b)—
Attempting to Export Toxins Without
the Required License: On or about
September 12, 2002, K.G. Rao attempted
to export toxins, including Aflatoxin
(M1, P1, Q1) and Staphyloccocal
Enterotoxin (A and B), items subject to
the Regulations and classified under
ECCN 1C351, from the United States to
North Korea without obtaining an
export license from the Department of
Commerce as required by Section 742.2
of the Regulations.
Whereas, BIS and K.G. Rao have
entered into a Settlement Agreement
prusuant 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
Whereas, I have approved the terms of
such Settlement Agreement;
It is therefore ordered:
First, that for a period of four years
from the date of entry of this Order, Mr.
Graneshawar K. Rao, of Orcas
International, Inc., 230 U.S. Highway
206, Suite 3, Flanders, NJ 07836, and
when acting for or on behalf of him, his
representatives, agents, assigns or
2001 Comp. 783(2002)), which has been extended
by successive presidential notices, the most recent
being that of August 2, 2005 (70 FR 45273 (August
5, 2005)), has continued the Regulations in effect
under the IEEPA.
E:\FR\FM\09MRN1.SGM
09MRN1
]]>Agencies
[Federal Register Volume 71, Number 46 (Thursday, March 9, 2006)]
[Notices]
[Pages 12167-12168]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-2239]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
Action Affecting Export Privileges; Orcas International, Inc.; In
the Matter of Orcas International, Inc., 230 U.S. Highway 206, Suite 3,
Flanders, NJ 07836; Respondent
Order
The Bureau of Industry and Security, U.S. Department of Commerce
(``BIS'') has notified Orcas International, Inc. (hereinafter referred
to as ``Orcas'' of its intention to initiate an administrative
proceeding against Orcas pursuant to Sec. 766.3 of the Export
Administration Regulations (currently codified at 15 CFR parts 730-774
(2005)) (``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
Orcas that alleged that Orcas committed two violations of the
Regulations. Specifically, the charges are:
---------------------------------------------------------------------------
\1\ The violations charged occurred in 2000 through 2002. The
Regulations governing the violations at issue are found in the 2000
through 2002 versions of the Code of Federal Regulations (15 CFR
parts 730-774 (2000-2002)). The 2005 Regulations establish 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 has 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,
Act has been in lapse and the President, through Executive Order
13222 of August 17, 2001 (3 CFR, 2001 Comp. 783 (2002)), which has
been extended by successive presidential notice, the most recent
being that of August 2, 2005 (70 FR 45273 (August 5, 2005)), has
continued the Regulations in effect under the IEEPA.
---------------------------------------------------------------------------
1. One Violation of 15 CFR 764.2(d)--Conspiracy to Export Toxins to
North Korea Without the Required License: Beginning in late 2000 and
continuing into September 2002, Orcas conspired and acted in concert
with others, known and unknown, to export toxins from the United States
to North Korea without the required Department of Commerce license. The
goal of the conspiracy was to obtain toxins, including Aflatoxin (M1,
P1, Q1) and Staphyloccocal Enterotoxin (A and B), items subject to the
Regulations and classified under export control classification number
(``ECCN'') 1C351, on behalf of a North Korean end-user and to export
those toxins to North Korea. In furtherance of the conspiracy, Orcas
acquired the toxins from a U.S. company and then attempted to export
them from the United States to a co-conspirator in the Netherlands who
was to complete the export to North Korea. Contrary to Section 742.2 of
the Regulations, no Department of Commerce license was obtained for the
export of toxins from the United States to North Korea.
2. One Violation of 15 CFR 764.2(b)--Attempting to Export Toxins
Without the Required License: On or about September 12, 2002, Orcas
attempted to export toxins, Aflatoxin (M1, P1, Q1) and Straphyloccocal
Enterotoxin (A and B), items subject to the Regulations and classified
under ECCN 1C351, from the United States to North Korea without
obtaining an export license from the Department of Commerce as required
by Section 742.2 of the Regulations.
Whereas, BIS and Orcas have 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
Whereas, I have approved the terms of such Settlement Agreement;
It is therefore ordered:
First, that a civil penalty of $19,800 is assessed against Orcas,
which shall be paid to the U.S. Department of Commerce no later than 30
days from the date of entry of this Order. Payment shall be made in the
manner 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,
Orcas 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 agreed to in
paragraph 2.a 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 Orcas. Failure
to make timely payment of the civil penalty set forth above shall
result in the denial of all Orcas's export privileges under the
Regulations for a period of one year from the date of imposition of the
penalty. The payment of the civil penalty is guaranteed by Mr.
Graneshawar K. Rao (hereinafter referred to as ``K.G. Rao''), in his
individual capacity, and K.G. Rao and Orcas, are jointly and severally
liable for the payment of the penalty.
Fourth, that for a period of four years from the date of entry of
this Order, Orcas, its successors or assigns, and when, acting for or
on behalf of Orcas, 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'') exported or to be
exported from the United States that is specified on the Commerce
Control List (``Control List'') \3\ or in any other activity that is
subject to the Regulations involving an item that is specified on the
Control List, including, but not limited to:
---------------------------------------------------------------------------
\3\ The Commerce Control List is set forth in Supp. 1 to part
774 of the Regulations ``EAR99'' items are subject to the
Regulations but not ``specified'' on the Control List. See 15 CFR
774.1.
---------------------------------------------------------------------------
A. Applying for, obtaining, or using any license, License
Exception, or export control document in connection with an item that
is specified on the Control List;
B. Carrying on negotiations concerning, or ordering, buying,
receiving, using, selling, delivering,
[[Page 12168]]
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 specified on
the Control List, or in any other activity subject to the Regulations
involving an item that is specified on the Control List; or
C. Benefitting in any way from any transaction involving any item
exported or to be exported from the United States that is specified on
the Control List, or in any other activity subject to the Regulations
involving an item that is specified on the Control List.
Fifth, 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
specified on the Control List;
B. Take any action that facilitates the acquisition or attempted
acquisition by the Denied Person of the ownership, possession, or
control of any item specified on the Control List 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 specified
on the Control List that has been exported from the United States;
D. Obtain from the Denied Person in the United States any item
specified on the Control List 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 specified on the
Control List 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 specified on the Control List that has been or will be exported
from the United States. 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 Orcas 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 the
Order.
Seventh, 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.
Eighth, that the proposed charging letter, the Settlement
Agreement, and this Order shall be made available to the public.
Ninth, that this Order shall be served on the Denied Person and on
BIS, and shall be published in the Federal Register.
This Order, which constitutes the final agency action in this
manner, is effective immediately.
Entered this 2nd day of March 2006.
Darryl W. Jackson,
Assistant Secretary of Commerce for Export Enforcement.
[FR Doc. 06-2239 Filed 3-8-06; 8:45 am]
BILLING CODE 3510-DT-M
