Action Affecting Export Privileges; Ghashim Group, Inc. and Mazen Ghashim and Related Person MNC Group International, Inc.; In the Matter of Ghashim Group, Inc., d.b.a. KZ Results, 8746 Westpark Drive, Houston, TX 77063, Respondent Order Relating to Ghashim Group, Inc. D.B.A. KZ Results, 55163-55166 [06-7876]
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Federal Register / Vol. 71, No. 183 / Thursday, September 21, 2006 / Notices
jlentini on PROD1PC65 with NOTICES
the U.A.E. In so doing, Ghashim committed
11 violations of Section 764.2(e) the
Regulations.
Whereas, BIS and Ghashim 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 of the terms
of such Settlement Agreement; it is
therefore ordered:
First, that a civil penalty of $1,089,000
is assessed against Ghashim. Ghashim
shall pay $22,000 to the Department of
Commerce as follows: $2,200 not later
than October 15, 2006; $2,200 not later
than November 15, 2006; $2,200 not
later than December 15, 2006; $2,200
not later than January 15, 2007; $2,200
not later than February 15, 2007; $2,200
not later than March 15, 2007; $2,200
not later than April 15, 2007; $2,200 not
later than May 15, 2007; $2,200 not later
than June 15, 2007; and $2,200 not later
than July 15, 2007. Payment shall be
made in the manner specified in the
attached instructions. Payment of the
remaining $1,067,000 shall be
suspended for a period of five years
from the date of entry of this Order and
thereafter shall be waived, provided that
during the period of suspension,
Ghashim has committed no violation of
the Act, or any regulation, order, or
license issued thereunder and has made
the payment of $22,000, described
above, in a timely manner.
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,
Ghashim 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 Ghashim. Accordingly, if
Ghashim should fail to pay the civil
penalty in a timely manner, the
undersigned may enter an Order
denying all of Ghashim’s export
privileges under the Regulations for a
period of one year from the date of entry
of this Order.
Fourth, that for a period of twenty
years from the date of entry of this
Order, Mazen Ghashim, 3334 Walnut
Bend Lane, Houston, Texas 77042, and,
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16:30 Sep 20, 2006
Jkt 208001
when acting for or on behalf of
Ghashim, his representatives, agents,
assigns, or employees, including MNC
Group International, Inc. doing business
as Wearform, doing business as Sports
Zone, doing business as Soccer Zone,
3334 Walnut Bend Lane, Houston,
Texas, which is a person related to
Ghashim by ownership, control,
position of responsibility, and other
affiliation (‘‘Related Person’’)
(collectively, ‘‘Denied Person’’) may not
participate, directly or indirectly, 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.
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 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
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55163
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.
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 Ghashim 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, the Related
Person, and on BIS, and shall be
published in the Federal Register.
This Order, which constitutes the
final agency action in this matter, is
effective immediately.
Entered this 12th day of September, 2006.
Darryl W. Jackson,
Assistant Secretary of Commerce for Export
Enforcement.
[FR Doc. 06–7877 Filed 9–20–06: 8:45 am]
BILLING CODE 3510–DT–M
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
Action Affecting Export Privileges;
Ghashim Group, Inc. and Mazen
Ghashim and Related Person MNC
Group International, Inc.; In the Matter
of Ghashim Group, Inc., d.b.a. KZ
Results, 8746 Westpark Drive,
Houston, TX 77063, Respondent Order
Relating to Ghashim Group, Inc. D.B.A.
KZ Results
The Bureau of Industry and Security,
U.S. Department of Commerce (‘‘BIS’’)
has notified Ghashim Group, Inc., doing
business as KZ Results (‘‘KZ Results’’),
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Federal Register / Vol. 71, No. 183 / Thursday, September 21, 2006 / Notices
of its intention to initiate and
administrative proceeding against KZ
Results pursuant to Section 7663.3 of
the Export Administration Regulations
(currently codified at 15 CFR parts 730–
774 (2006)) (the ‘‘Regulations’’),1 and
Section 13(c) of the Export
Administration Act of 1979, as amended
(50 U.S.C. app. §§ 2401–2420 (2000))
(the ‘‘Act’’),2 through the issuance of a
proposed charging letter to KZ Results
that alleged that KZ Results committed
99 violations of the Regulations.
Specifically, the charges are:
Charge 1—15 CFR 764.2(d)—
Conspiracy To Export Items From the
United States to Syria Without the
Required License
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Beginning in or about February 2003
and continuing through in or about June
2004, KZ Results conspired and acted in
concert with others, known and
unknown, to violate the Regulations and
to bring about acts constituting
violations of the Regulations. The
purpose of the conspiracy was to export
computers from the United States to
Syria directly and by transshipment
through the United Arab Emirates
(‘‘U.A.E.’’). The computers were items
subject to the Regulations and classified
under Export Control Classification
Number (‘‘ECCN’’) 4A003 and ECCN
4A994. As set forth in Section 742.9 of
the Regulations, a Department of
Commerce export license was required
before the computers could be exported
to Syria. To accomplish the conspiracy,
the conspirators, including KZ Results,
participated in a scheme to have KZ
Results purchase the computers from
U.S. distributors and manufacturers,
and to have KZ Results export the items
to Syria directly or by transshipment
through the U.A.E. without a
Department of Commerce export
license. In so doing, KZ Results
committed one violation of Section
764.2(d) of the Regulations.
1 The charged violations occurred during 2003
and 2004. The Regulations governing the violations
at issue are found in the 2003 and 2004 versions
of the Code of Federal Regulations (15 CFR parts
730–774 (2003–2004)). The 2006 Regulations
establish the procedures that apply to this matter.
2 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 successive Presidential Notices, the
most recent being that of August 3, 2006 (71 FR
44,551 (Aug. 7, 2006)), has continued the
Regulations in effect under the International
Emergency Economic Powers Act (50 U.S.C. 1701–
1706 (2000)) (‘‘IEEPA’’). The Act and the
Regulations are available on the Government
Printing Office Web site at: https://www.access.
gpo.gov/bis/.
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16:30 Sep 20, 2006
Jkt 208001
Charges 2–15—15 CFR 764.2(a)—
Engaging in Prohibited Conduct by
Exporting Computers to Syria Without
the Required License
On 14 occasions, between on or about
February 26, 2003 and on or about
December 13, 2003, KZ Results engaged
in conduct prohibited by the
Regulations by exporting over 300
computers subject to the Regulations
and classified under ECCN 4A994, and
one computer subject to the Regulations
and classified under ECCN 4A003 to
Syria without the Department of
Commerce licenses required by Section
742.9 of the Regulations. In so doing, KZ
Results committed 14 violations of
Section 764.2(a) of the Regulations.
Charges 16–26—15 CFR 764.2(a)—
Engaging in Prohibited Conduct by
Exporting Computers to Syria Through
the United Arab Emirates Without the
Required License
On 11 occasions, between on or about
January 7, 2004 and May 21, 2004, KZ
Results engaged in conduct prohibited
by the Regulations by exporting over
400 computers subject to the
Regulations and classified under ECCN
4A994 to Syria without the Department
of Commerce license required by
Section 742.9 of the Regulations.
Specifically, KZ Results transshipped
these computers to Syria through a
shipping consolidator and forwarder in
the U.A.E. In so doing, KZ Results
committed 11 violations of Section
764.2(a) of the Regulations.
Charges 27–37—15 CFR 764.2(e)—
Acting With Knowledge of a Violation
On 11 occasions, between on or about
January 7, 2004 and May 21, 2004, in
connection with the transactions
described in Charges 16–26, above, KZ
Results sold, transferred or forwarded
computers to Syria by transshipment
through the U.A.E. with knowledge that
violations of the Regulations were
occurring. KZ Results had knowledge
that violations were occurring because
KZ Results had been advised by the U.S.
Government and KZ Results’ suppliers
that licenses were required to export or
transship these items to Syria, and KZ
Results had license applications
pending with BIS for exports to Syria of
similarly controlled items. In selling,
transferring or forwarding these
computers with knowledge that
violations were occurring, KZ Results
committed 11 violations of Section
764.2(e) of the Regulations.
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Charges 38–39—15 CFR 764.2(c)—
Attempting To Violate the Regulations
by Exporting Computers to Syria
Through the United Arab Emirates
Without the Required License
On two occasions, on or about June
16, 2004 and on or about June 22, 2004,
KZ Results attempted to violate the
Regulations by attempting to export over
10 computers subject to the Regulations
and classified under ECCN 4A994 to
Syria without the Department of
Commerce licenses required by Section
742.9 of the Regulations.Specifically,
KZ Results attempted to export these
computers to Syria by transshipment
through a shipping consolidator and
forwarder in the U.A.E. In so doing, KZ
Results committed two violations of
Section 7642.2(a) of the Regulations.
Charges 40–41—15 CFR 764.2(e)—
Acting With Knowledge of a Violation
On two occasions, on or about June
16, 2004 and on or about June 22, 2004,
in connection with the transactions
described in Charges 38–39, above, KZ
Results ordered, bought, stored, sold,
transferred or transported computers
with knowledge that violations of the
Regulations were about to occur or were
intended to occur in connection with
the items. Specifically, KZ Results
ordered, bought, stored, sold,
transferred or transported the items,
which KZ Results planned to export to
Syria through the U.A.E. without a
Department of Commerce license. KZ
Results had knowledge that violations
were about to occur or were intended to
occur because KZ Results had been
advised by the U.S. Government and KZ
Results’ computer suppliers that
licenses were required to export or
transship these items to Syria, and KZ
Results had license applications
pending with BIS for exports to Syria of
similarly controlled items. In so doing,
KZ Results committed two violations of
Section 764.2(e) of the Regulations.
Charges 42–66—15 CFR 764.2(g)—
Misrepresentation of Facts Through
False Statement on Shipper’s Export
Declarations
On 25 occasions between on or about
February 26, 203 and on or about May
21, 2004, in connection with the
transactions described in Charges 27–
26, above, KZ Results indirectly made
false statements to the U.S. Government
in connection with the submission of
export control documents. Specifically,
KZ Results, through its freight
forwarder, filed Shipper’s Export
Declarations (‘‘SEDs’’) with the U.S.
Government stating that the items that
were the subject of the SEDs qualified
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Federal Register / Vol. 71, No. 183 / Thursday, September 21, 2006 / Notices
for export as ‘‘NLR,’’ meaning that no
license was required for their export.
These representations were false, as
licenses were required for the
computers included in the shipments.
SEDs are export control documents, as
defined in part 772 of the Regulations.
In filing, through its freight forwarder,
SEDs with the U.S. Government that
contained false statements of fact, KZ
Results committed 25 violations of
Section 764.2(g) of the Regulations.
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Charges 67–77—15 CFR 764.2(e)—
Acting With Knowledge of a False
Statement Being Made to the U.S.
Government
On 11 occasions, between on or about
January 7, 2004 and on or about May 21,
2004, in connection with the 11
transactions described in Charges 56–
66, above, KZ Results sold, transferred
or forwarded computers subject to the
Regulations that were to be exported
from the United States with knowledge
that violations of the Regulations would
occur in connection with the export of
the computers. Specifically, KZ Results
knew that it indirectly had filed a false
SED with the U.S. Government in
connection with its sale, transfer, or
forwarding of the computers. KZ Results
knew that the items required export
licenses because KZ Results had been
advised by the U.S. Government and KZ
Results’ computer suppliers that
licenses were required to export or
transship these items to Syria, and KZ
Results had license applications
pending with BIS for exports to Syria of
similarly controlled items. Nevertheless,
KZ Results informed its freight
forwarder that the computers did not
require export licenses and that the
SEDs should indicate that no license
was required. In so doing, KZ Results
committed 11 violations of Section
764.2(e) of the Regulations.
Charges 78–88—15 CFR 764.2(g)—
Misrepresentation of Facts Through
False Statement on Shipper’s Export
Declaration
On 11 occasions between on or about
January 7, 2004 and on or about May 21,
2004, in connection with the
transactions described in Charges 16–
26, above, KZ Results indirectly made
false statements to the U.S. Government
in connection with the submission of
export control documents. Specifically,
KZ Results, through its freight
forwarder, filed SEDs with the U.S.
Government stating that the U.A.B. was
the country of ultimate destination of
the computers that were the subject of
the SEDs. These representations were
false, as the country of ultimate
destination of the computers being
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16:30 Sep 20, 2006
Jkt 208001
exported was Syria. SEDs are export
control documents, as defined in part
772 of the Regulations. In filing, through
its freight forwarder, SEDs with the U.S.
Government that contained false
statements of fact, KZ Results
committed 11 violations of Section
764.2(g) of the Regulations.
Charges 89–99—15 CFR 764.2(e)—
Acting With Knowledge of a False
Statement Being Made to the U.S.
Government
On 11 occasions, between on or about
January 7, 2004 and on or about May 21,
2004, in connection with the 11
transactions described in Charges 78–
88, above, KZ Results sold, transferred
or forwarded computers subject to the
Regulations that were to be exported
from the United States with knowledge
that violations of the Regulations would
occur in connection with the export of
the computers. Specifically, KZ Results
knew that it indirectly had filed a false
SED with the U.S. Government in
connection with its sale, transfer, or
forwarding of the computers. KZ Results
knew that the country of ultimate
destination of the computers was Syria,
but it informed its freight forwarder that
the country of ultimate destination was
the U.A.E. In so doing, KZ Results
committed 11 violations of Section
764.2(e) of the Regulations.
Whereas, BIS and KZ Results 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 of the
terms of such Settlement Agreement; It
is Therefore Ordered
First, that a civil penalty of
$1,089,000 is assessed against KZ
Results. KZ Results shall pay $22,000 to
the Department of Commerce as follows:
$22,000 to the Department of Commerce
as follows: $2,200 not later than October
15, 2006; $2,200 not later than
November 15, 2006; $2,200 not later
than December 15, 2006; $2,200 not
later than January 15, 2007; $2,200 not
later than February 15,2007; $2,200 not
later than March 15, 2007; $2,200 not
later than April 15, 2007; $2,200 not
later than May 15, 2007; $2,200 not later
than June 15, 2007; and $2,200 not later
than July 15, 2007. Payment shall be
made in the manner specified in the
attached instructions. Payment of the
remaining $1,067,000 shall be
suspended for a period of five years
from the date of entry of this Order and
thereafter shall be waived, provided that
during the period of suspension, KZ
Results has committed no violation of
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55165
the Act, or any regulation, order, or
license issued thereunder and has made
the payment of $22,000, described
above, in a timely manner.
Second, that, pursuant to the Debt
Collection Act of 1982, as amended (31
U.S.C. 3701–372OE (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,
KZ Results 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 KZ Results. Accordingly, if
KZ Results should fail to pay the civil
penalty in a timely manner, the
undersigned may enter an Order
denying all of KZ Results’ export
privileges under the Regulations for a
period of one year from the date of entry
of this Order.
Fourth, for a period of twenty years
from the date of entry of this Order,
Ghashim Group, Inc. d.b.a. KZ Results,
8746 Westpark Drive, Houston, Texas
77063 (‘‘KZ Results’’), its successors or
assigns, and when acting for or on
behalf of KZ Results, its representatives,
agents, officers or employees (‘‘Denied
Person’’) may not participate, directly or
indirectly, 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.
Fifth, that no person may, directly or
indirectly, do any of the following:
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jlentini on PROD1PC65 with NOTICES
55166
Federal Register / Vol. 71, No. 183 / Thursday, September 21, 2006 / Notices
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 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.
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 KZ Results by
affiliation, ownership, control, or
position of responsibility in the conduct
of trade or related services may also be
made subject of the provisions of this
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 matter, is
effective immediately.
VerDate Aug<31>2005
16:30 Sep 20, 2006
Jkt 208001
Entered this 12th day of September, 2006.
Darryl W. Jackson,
Assistant Secretary of Commerce for Export
Enforcement.
[FR Doc. 06–7876 Filed 9–20–06; 8:45 am]
DEPARTMENT OF COMMERCE.
BILLING CODE 3510–DT–M
Oil Country Tubular Goods from
Japan: Final Results and Rescission of
Antidumping Duty Administrative
Review
DEPARTMENT OF COMMERCE
Announcement of Performance Review
Board Members
Bureau of Industry and
Security, Department of Commerce.
AGENCY:
Notice.
SUMMARY: 5 CFR 430.310 requires
agencies to publish notice of
Performance Review Board appointees
in the Federal Register before their
service begins. This notice announces
the names of the members of the Bureau
of Industry and Security’s Performance
Review Board.
FOR FURTHER INFORMATION CONTACT:
Gay
Shrum, Director of Administration,
Bureau of Industry and Security, at
(202) 482–1058, Room 6622,
Washington, DC 20230.
The
purpose of the Performance Review
Board is to review and make
recommendations to the appointing
authority on performance management
issues such as appraisals, bonuses, pay
level increases, and Presidential Rank
Awards for members of the Senior
Executive Service.
The Acting Under Secretary for
Industry and Security, Mark Foulon, has
named the following executives to be
appointed to the Bureau of Industry and
Security Performance Review Board:
1. Matthew Borman, Deputy Under
Secretary for Export Administration
(new).
2. Wendy Wysong, Deputy Under
Secretary for Export Enforcement (new).
3. Dawn Leaf, Chief Information
Officer (new).
4. Gay Shrum , Director of
Administration (new).
5. John Phalen, Director, Office of
Management and Organization,
Department of Commerce (Outside
Reviewer new).
SUPPLEMENTARY INFORMATION:
Dated: September 15, 2006.
Mark Foulon,
Acting Under Secretary for Industry and
Security.
[FR Doc. 06–7934 Filed 9–20–06; 8:45 am]
BILLING CODE 3510–33–P
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A–588–835
Import Administration,
International Trade Administration,
U.S. Department of Commerce
SUMMARY: On June 22, 2006, the
Department of Commerce (the
Department) published in the Federal
Register the notice of intent to rescind
the administrative review of the
antidumping duty order on Oil Country
Tubular Goods (OCTG) from Japan. This
review covers four manufactures/
exporters: JFE Steel Corporation (JFE),
Nippon Steel Corporation (Nippon),
NKK Tubes (NKK) and Sumitomo Metal
Industries, Ltd. (SMI). The period of
review (POR) covers sales of subject
merchandise to the United States during
the period August 1, 2004 throughJuly
31, 2005.
We provided interested parties with
an opportunity to comment on the
notice of intent to rescind this
administrative review. However, we
received no comments from interested
parties. Consequently, no changes have
been made to the preliminary results of
the review.
EFFECTIVE DATE: September 21, 2006.
FOR FURTHER INFORMATION CONTACT:
Mark Hoadley or Jun Jack Zhao, AD/
CVD Operations, Office 6, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW, Washington, DC 20230;
telephone: (202) 482–3148 or (202) 482–
1396, respectively.
SUPPLEMENTARY INFORMATION: On June
22, 2006, the Department published in
the Federal Register a notice of intent
to rescind the antidumping duty
administrative review of the
antidumping duty order on OCTG from
Japan. See Oil Country Tubular Goods
from Japan: Notice of Intent to Rescind
Antidumping Duty Administrative
Review, 71 FR 35865 (June 22, 2006)
(Preliminary Results). No interested
parties filed case briefs in response to
the Department’s invitation to comment
on the Preliminary Results.
AGENCY:
Bureau of Industry and Security
ACTION:
International Trade Administration
Scope of the Order
The merchandise covered by this
order consists of oil country tubular
goods, hollow steel products of circular
cross-section, including oil well casing,
tubing, and drill pipe, of iron (other
E:\FR\FM\21SEN1.SGM
21SEN1
]]>Agencies
[Federal Register Volume 71, Number 183 (Thursday, September 21, 2006)]
[Notices]
[Pages 55163-55166]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-7876]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
Action Affecting Export Privileges; Ghashim Group, Inc. and Mazen
Ghashim and Related Person MNC Group International, Inc.; In the Matter
of Ghashim Group, Inc., d.b.a. KZ Results, 8746 Westpark Drive,
Houston, TX 77063, Respondent Order Relating to Ghashim Group, Inc.
D.B.A. KZ Results
The Bureau of Industry and Security, U.S. Department of Commerce
(``BIS'') has notified Ghashim Group, Inc., doing business as KZ
Results (``KZ Results''),
[[Page 55164]]
of its intention to initiate and administrative proceeding against KZ
Results pursuant to Section 7663.3 of the Export Administration
Regulations (currently codified at 15 CFR parts 730-774 (2006)) (the
``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)) (the
``Act''),\2\ through the issuance of a proposed charging letter to KZ
Results that alleged that KZ Results committed 99 violations of the
Regulations. Specifically, the charges are:
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\1\ The charged violations occurred during 2003 and 2004. The
Regulations governing the violations at issue are found in the 2003
and 2004 versions of the Code of Federal Regulations (15 CFR parts
730-774 (2003-2004)). The 2006 Regulations establish the procedures
that apply to this matter.
\2\ 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 successive Presidential
Notices, the most recent being that of August 3, 2006 (71 FR 44,551
(Aug. 7, 2006)), has continued the Regulations in effect under the
International Emergency Economic Powers Act (50 U.S.C. 1701-1706
(2000)) (``IEEPA''). The Act and the Regulations are available on
the Government Printing Office Web site at: https://
www.access.gpo.gov/bis/.
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Charge 1--15 CFR 764.2(d)--Conspiracy To Export Items From the United
States to Syria Without the Required License
Beginning in or about February 2003 and continuing through in or
about June 2004, KZ Results conspired and acted in concert with others,
known and unknown, to violate the Regulations and to bring about acts
constituting violations of the Regulations. The purpose of the
conspiracy was to export computers from the United States to Syria
directly and by transshipment through the United Arab Emirates
(``U.A.E.''). The computers were items subject to the Regulations and
classified under Export Control Classification Number (``ECCN'') 4A003
and ECCN 4A994. As set forth in Section 742.9 of the Regulations, a
Department of Commerce export license was required before the computers
could be exported to Syria. To accomplish the conspiracy, the
conspirators, including KZ Results, participated in a scheme to have KZ
Results purchase the computers from U.S. distributors and
manufacturers, and to have KZ Results export the items to Syria
directly or by transshipment through the U.A.E. without a Department of
Commerce export license. In so doing, KZ Results committed one
violation of Section 764.2(d) of the Regulations.
Charges 2-15--15 CFR 764.2(a)--Engaging in Prohibited Conduct by
Exporting Computers to Syria Without the Required License
On 14 occasions, between on or about February 26, 2003 and on or
about December 13, 2003, KZ Results engaged in conduct prohibited by
the Regulations by exporting over 300 computers subject to the
Regulations and classified under ECCN 4A994, and one computer subject
to the Regulations and classified under ECCN 4A003 to Syria without the
Department of Commerce licenses required by Section 742.9 of the
Regulations. In so doing, KZ Results committed 14 violations of Section
764.2(a) of the Regulations.
Charges 16-26--15 CFR 764.2(a)--Engaging in Prohibited Conduct by
Exporting Computers to Syria Through the United Arab Emirates Without
the Required License
On 11 occasions, between on or about January 7, 2004 and May 21,
2004, KZ Results engaged in conduct prohibited by the Regulations by
exporting over 400 computers subject to the Regulations and classified
under ECCN 4A994 to Syria without the Department of Commerce license
required by Section 742.9 of the Regulations. Specifically, KZ Results
transshipped these computers to Syria through a shipping consolidator
and forwarder in the U.A.E. In so doing, KZ Results committed 11
violations of Section 764.2(a) of the Regulations.
Charges 27-37--15 CFR 764.2(e)--Acting With Knowledge of a Violation
On 11 occasions, between on or about January 7, 2004 and May 21,
2004, in connection with the transactions described in Charges 16-26,
above, KZ Results sold, transferred or forwarded computers to Syria by
transshipment through the U.A.E. with knowledge that violations of the
Regulations were occurring. KZ Results had knowledge that violations
were occurring because KZ Results had been advised by the U.S.
Government and KZ Results' suppliers that licenses were required to
export or transship these items to Syria, and KZ Results had license
applications pending with BIS for exports to Syria of similarly
controlled items. In selling, transferring or forwarding these
computers with knowledge that violations were occurring, KZ Results
committed 11 violations of Section 764.2(e) of the Regulations.
Charges 38-39--15 CFR 764.2(c)--Attempting To Violate the Regulations
by Exporting Computers to Syria Through the United Arab Emirates
Without the Required License
On two occasions, on or about June 16, 2004 and on or about June
22, 2004, KZ Results attempted to violate the Regulations by attempting
to export over 10 computers subject to the Regulations and classified
under ECCN 4A994 to Syria without the Department of Commerce licenses
required by Section 742.9 of the Regulations.Specifically, KZ Results
attempted to export these computers to Syria by transshipment through a
shipping consolidator and forwarder in the U.A.E. In so doing, KZ
Results committed two violations of Section 7642.2(a) of the
Regulations.
Charges 40-41--15 CFR 764.2(e)--Acting With Knowledge of a Violation
On two occasions, on or about June 16, 2004 and on or about June
22, 2004, in connection with the transactions described in Charges 38-
39, above, KZ Results ordered, bought, stored, sold, transferred or
transported computers with knowledge that violations of the Regulations
were about to occur or were intended to occur in connection with the
items. Specifically, KZ Results ordered, bought, stored, sold,
transferred or transported the items, which KZ Results planned to
export to Syria through the U.A.E. without a Department of Commerce
license. KZ Results had knowledge that violations were about to occur
or were intended to occur because KZ Results had been advised by the
U.S. Government and KZ Results' computer suppliers that licenses were
required to export or transship these items to Syria, and KZ Results
had license applications pending with BIS for exports to Syria of
similarly controlled items. In so doing, KZ Results committed two
violations of Section 764.2(e) of the Regulations.
Charges 42-66--15 CFR 764.2(g)--Misrepresentation of Facts Through
False Statement on Shipper's Export Declarations
On 25 occasions between on or about February 26, 203 and on or
about May 21, 2004, in connection with the transactions described in
Charges 27-26, above, KZ Results indirectly made false statements to
the U.S. Government in connection with the submission of export control
documents. Specifically, KZ Results, through its freight forwarder,
filed Shipper's Export Declarations (``SEDs'') with the U.S. Government
stating that the items that were the subject of the SEDs qualified
[[Page 55165]]
for export as ``NLR,'' meaning that no license was required for their
export. These representations were false, as licenses were required for
the computers included in the shipments. SEDs are export control
documents, as defined in part 772 of the Regulations. In filing,
through its freight forwarder, SEDs with the U.S. Government that
contained false statements of fact, KZ Results committed 25 violations
of Section 764.2(g) of the Regulations.
Charges 67-77--15 CFR 764.2(e)--Acting With Knowledge of a False
Statement Being Made to the U.S. Government
On 11 occasions, between on or about January 7, 2004 and on or
about May 21, 2004, in connection with the 11 transactions described in
Charges 56-66, above, KZ Results sold, transferred or forwarded
computers subject to the Regulations that were to be exported from the
United States with knowledge that violations of the Regulations would
occur in connection with the export of the computers. Specifically, KZ
Results knew that it indirectly had filed a false SED with the U.S.
Government in connection with its sale, transfer, or forwarding of the
computers. KZ Results knew that the items required export licenses
because KZ Results had been advised by the U.S. Government and KZ
Results' computer suppliers that licenses were required to export or
transship these items to Syria, and KZ Results had license applications
pending with BIS for exports to Syria of similarly controlled items.
Nevertheless, KZ Results informed its freight forwarder that the
computers did not require export licenses and that the SEDs should
indicate that no license was required. In so doing, KZ Results
committed 11 violations of Section 764.2(e) of the Regulations.
Charges 78-88--15 CFR 764.2(g)--Misrepresentation of Facts Through
False Statement on Shipper's Export Declaration
On 11 occasions between on or about January 7, 2004 and on or about
May 21, 2004, in connection with the transactions described in Charges
16-26, above, KZ Results indirectly made false statements to the U.S.
Government in connection with the submission of export control
documents. Specifically, KZ Results, through its freight forwarder,
filed SEDs with the U.S. Government stating that the U.A.B. was the
country of ultimate destination of the computers that were the subject
of the SEDs. These representations were false, as the country of
ultimate destination of the computers being exported was Syria. SEDs
are export control documents, as defined in part 772 of the
Regulations. In filing, through its freight forwarder, SEDs with the
U.S. Government that contained false statements of fact, KZ Results
committed 11 violations of Section 764.2(g) of the Regulations.
Charges 89-99--15 CFR 764.2(e)--Acting With Knowledge of a False
Statement Being Made to the U.S. Government
On 11 occasions, between on or about January 7, 2004 and on or
about May 21, 2004, in connection with the 11 transactions described in
Charges 78-88, above, KZ Results sold, transferred or forwarded
computers subject to the Regulations that were to be exported from the
United States with knowledge that violations of the Regulations would
occur in connection with the export of the computers. Specifically, KZ
Results knew that it indirectly had filed a false SED with the U.S.
Government in connection with its sale, transfer, or forwarding of the
computers. KZ Results knew that the country of ultimate destination of
the computers was Syria, but it informed its freight forwarder that the
country of ultimate destination was the U.A.E. In so doing, KZ Results
committed 11 violations of Section 764.2(e) of the Regulations.
Whereas, BIS and KZ Results 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 of the terms of such Settlement
Agreement; It is Therefore Ordered
First, that a civil penalty of $1,089,000 is assessed against KZ
Results. KZ Results shall pay $22,000 to the Department of Commerce as
follows: $22,000 to the Department of Commerce as follows: $2,200 not
later than October 15, 2006; $2,200 not later than November 15, 2006;
$2,200 not later than December 15, 2006; $2,200 not later than January
15, 2007; $2,200 not later than February 15,2007; $2,200 not later than
March 15, 2007; $2,200 not later than April 15, 2007; $2,200 not later
than May 15, 2007; $2,200 not later than June 15, 2007; and $2,200 not
later than July 15, 2007. Payment shall be made in the manner specified
in the attached instructions. Payment of the remaining $1,067,000 shall
be suspended for a period of five years from the date of entry of this
Order and thereafter shall be waived, provided that during the period
of suspension, KZ Results has committed no violation of the Act, or any
regulation, order, or license issued thereunder and has made the
payment of $22,000, described above, in a timely manner.
Second, that, pursuant to the Debt Collection Act of 1982, as
amended (31 U.S.C. 3701-372OE (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,
KZ Results 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 KZ Results. Accordingly, if KZ
Results should fail to pay the civil penalty in a timely manner, the
undersigned may enter an Order denying all of KZ Results' export
privileges under the Regulations for a period of one year from the date
of entry of this Order.
Fourth, for a period of twenty years from the date of entry of this
Order, Ghashim Group, Inc. d.b.a. KZ Results, 8746 Westpark Drive,
Houston, Texas 77063 (``KZ Results''), its successors or assigns, and
when acting for or on behalf of KZ Results, its representatives,
agents, officers or employees (``Denied Person'') may not participate,
directly or indirectly, 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.
Fifth, that no person may, directly or indirectly, do any of the
following:
[[Page 55166]]
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 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.
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 KZ Results by affiliation, ownership,
control, or position of responsibility in the conduct of trade or
related services may also be made subject of the provisions of this
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
matter, is effective immediately.
Entered this 12th day of September, 2006.
Darryl W. Jackson,
Assistant Secretary of Commerce for Export Enforcement.
[FR Doc. 06-7876 Filed 9-20-06; 8:45 am]
BILLING CODE 3510-DT-M
