Action Affecting Export Privileges: Hailin Lin, 842-843 [E9-31366]

Agencies

• DEPARTMENT OF COMMERCE
• Bureau of Industry and Security
• Industry and Security Bureau

[Federal Register Volume 75, Number 3 (Wednesday, January 6, 2010)]
[Notices]
[Pages 842-843]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-31366]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security


Action Affecting Export Privileges: Hailin Lin

    In the Matter of: Hailin Lin, 1218 Dewey St., 14, 
Manitowoc, WI 54220, Respondent. 07-BIS-01.

Order Relating to Hailin Lin

    The Bureau of Industry and Security, U.S. Department of Commerce 
(``BIS'') has initiated an administrative proceeding against Hailin Lin 
(``Lin'') pursuant to Section 766.3 of the Export Administration 
Regulations (the ``Regulations''),\1\ and Section 13(c) of the Export 
Administration Act of 1979, as amended (the ``Act''),\2\ through the 
issuance of a charging letter to Lin that alleged that she committed 
124 violations of the Regulations. Specifically, the charges are:
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    \1\ The Regulations are currently codified in the Code of 
Federal Regulations at 15 CFR Parts 730-774 (2009). The violations 
charged occurred between 2002 and 2004. The Regulations governing 
the violations at issue are found in the 2002-2004 versions of the 
Code of Federal Regulations. The 2009 Regulations govern the 
procedural aspects of this case.
    \2\ 50 U.S.C. app. Sec. Sec.  2401-2420 (2000). 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 most recently by the Notice of August 13, 2009 (74 FR 41325 
(Aug. 14, 2009)), has continued the Regulations in effect under the 
International Emergency Economic Powers Act (50 U.S.C. 1701-1706).

Charge 1: 15 CFR 764.2(d)--Conspiracy To Export Electronic 
Components to the Republic of China Without the Required Licenses

    Between on or about March 16, 1992 and on or about September 30, 
2004, Lin conspired with others, known and unknown, to bring about 
acts that violated the Regulations. The object of the conspiracy was 
to export electronic components from the United States to the 
People's Republic of China (PRC) in violation of U.S. export control 
laws by failing to obtain the proper export licenses for certain 
shipments, and/or providing false descriptions and/or withholding 
required information on the invoices provided to the shippers. In 
furtherance of this conspiracy, the co-conspirators, through Wen 
Enterprises--a business run by Lin out of her own home--caused 
exports of electronic components controlled under Export Control 
Classification Numbers (``ECCNs'') 3A001 and 3A002 on the Commerce 
Control List to the PRC without the licenses required by the 
Regulations. Items classified under ECCNs 3A001 and 3A002 are 
controlled for national security reasons and their export to the PRC 
requires a license from the U.S. Department of Commerce pursuant to 
Section 742.2 of the Regulations. Also in furtherance of this 
conspiracy, the co-conspirators made false representations regarding 
the true value of shipments being exported to the PRC. In conspiring 
to bring about acts that violate the Regulations, Lin committed one 
violation of Section 764.2(d) of the Regulations.

Charges 2-56: 15 CFR 764.2(b)--Causing an Export Without the 
Required License

    Between on or about January 28, 2002 through on or about 
September 30, 2004, Lin caused 55 acts prohibited by the 
Regulations. Specifically, Lin caused 55 exports of items controlled 
under ECCNs 3A001 and 3A002 to the PRC without the licenses required 
by Section 742.2 of the Regulations. These exports were committed in 
furtherance of and as a reasonably foreseeable consequence of the 
conspiracy described in Charge One above. In so doing, Lin committed 
55 violations of Section 764.2(b) of the Regulations.

Charges 57-111: 15 CFR 764.2(e)--Acting With Knowledge of a 
Violation

    In connection with each of the transactions described in Charges 
2 through 56 above, on 55 occasions between on or about January 28, 
2002 through on or about September 30, 2004, Lin bought, sold, and/
or transferred electronic components subject to the Regulations to 
be exported from the United States with knowledge that a violation 
of the Regulations was about to occur or was intended to occur in 
connection with the components. Specifically, at the time that the 
electronic components were bought, sold and/or transferred, all of 
which were done as a reasonably foreseeable consequence of the 
conspiracy described in Charge One above, Lin knew or had reason to 
know that the export of the items required an export license but 
that an export license would not be obtained. In so doing, Lin 
committed 55 violations of Section 764.2(e) of the Regulations.

Charges 112-12415: CFR 764.2(h)--Taking Action With Intent To Evade 
the Regulations

    In connection with certain transactions described above, on 
thirteen occasions between on or about April, 5 2004 through on or 
about September 30, 2004, Lin took actions with intent to evade the 
provisions of the Regulations. Specifically, in connection with the 
preparation of export control documents, Lin did make false 
statements and conceal material facts by representing on shipping 
invoices that the value of thirteen different shipments was less 
than $2500 when in fact the true value of the shipments exceeded 
$2500. This was done so that Shipper's Export Declarations, which 
are filed with the U.S. Government and which must contain 
information about export license requirements, would not be 
requested for the exports. In so doing, Lin committed 13 violations 
of Section 764.2(h) of the Regulations.

    Whereas, BIS and Lin have entered into a Settlement Agreement 
pursuant to Section 766.18(b) of the Regulations whereby they agreed to 
settle this matter

[[Page 843]]

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 Lin shall be assessed a civil penalty in the amount of 
$1,364,000, the payment of which shall be suspended for a period of one 
(1) year from the date of entry of the Order, and thereafter shall be 
waived, provided that during the suspension, Lin has committed no 
violation of the Act, or any regulation, order or license issued 
thereunder.
    Second, that for a period of 15 years from the date of issuance of 
the Order, Hailin Lin, 1218 Dewey St., 14, Manitowoc, WI 
54220, and when acting on behalf of Lin, her representatives, assigns, 
or agents (``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. Benefitting 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.
    Third, 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 from the United States
    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.
    Fourth, 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 Lin 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.
    Fifth, that the charging letter, the Settlement Agreement, this 
Order, and the record of this case as defined by Section 766.20 of the 
Regulations shall be made available to the public.
    Sixth, that the Administrative Law Judge shall be notified that 
this case is withdrawn from adjudication.
    Seventh, 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 29th day of December 2009.
Kevin Delli-Colli,
Deputy Assistant Secretary of Commerce for Export Enforcement.
[FR Doc. E9-31366 Filed 1-5-10; 8:45 am]
BILLING CODE 3510-DT-P