Action Affecting Export Privileges; William Chi-Wai Tsu And Cheerway Corporation; Order Denying Export Privileges, 12023-12024 [2011-4819]

Agencies

• DEPARTMENT OF COMMERCE
• Bureau of Industry and Security

[Federal Register Volume 76, Number 43 (Friday, March 4, 2011)]
[Notices]
[Pages 12023-12024]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-4819]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security


Action Affecting Export Privileges; William Chi-Wai Tsu And 
Cheerway Corporation; Order Denying Export Privileges

In the Matter of:
William Chi-Wai Tsu, currently incarcerated at: Register Number 
34009-112, USP Florence ADMAX, U.S. Penitentiary, P.O. Box 8500, 
Florence, CO 81226;
and with an address at:
1432 Forest Glen Drive, Unit 65, Hacienda Heights, CA 
91745;
Respondent;
Cheerway Corporation, 1641 W. Main Street, Suite 308, Alhambra, CA 
91801;
and with an address at:
1432 Forest Glenn Drive, Unit 65, Hacienda Heights, CA 
91745;
Related Person.

A. Denial of Export Privileges of William Chi-Wai Tsu

    On August 3, 2009, in the U.S. District Court for the Central 
District of California, William Chi-Wai Tsu (``Tsu'') pled guilty to, 
and was convicted of, violating two counts of the International 
Emergency Economic Powers Act (50 U.S.C. 1701 et seq. (2000)) 
(``IEEPA''). Specifically, Tsu pled guilty to knowingly and willfully 
exporting and causing to be exported from the United States to the 
People's Republic of China Triquint Semiconductor integrated circuits 
classified as Export Control Classification Number 3A001 without first 
obtaining from the U.S. Department of Commerce a license or written 
authorization for such export, knowing such a license or authorization 
was required. Tsu was sentenced to 40 months of imprisonment and three 
years of supervised release.
    Section 766.25 of the Export Administration Regulations (``EAR'' or 
``Regulations'') \1\ provides, in pertinent part, that ``[t]he Director 
of the Office of Exporter Services, in consultation with the Director 
of the Office of Export Enforcement, may deny the export privileges of 
any person who has been convicted of a violation of the [Export 
Administration Act (``EAA'')], the EAR, of any order, license or 
authorization issued thereunder; any regulation, license, or order 
issued under the International Emergency Economic Powers Act (50 U.S.C. 
1701-1706); 18 U.S.C. 793, 794 or 798; section 4(b) of the Internal 
Security Act of 1950 (50 U.S.C. 783(b)), or section 38 of the Arms 
Export Control Act (22 U.S.C. 2778).'' 15 CFR 766.25(a); see also 
Section 11(h) of the EAA, 50 U.S.C. app. section 2410(h). The denial of 
export privileges under this provision may be for a period of up to 10 
years from the date of the conviction. 15 CFR 766.25(d); see also 50 
U.S.C. app. section 2410(h). In addition, Section 750.8 of the 
Regulations states that the Bureau of Industry and Security's Office of 
Exporter Services may revoke any Bureau of Industry and Security 
(``BIS'') licenses previously issued in which the person had an 
interest in at the time of his conviction.
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    \1\ The Regulations are currently codified in the Code of 
Federal Regulations at 15 CFR Parts 730-774 (2010). The Regulations 
issued pursuant to the EAA (50 U.S.C. app. sections 2401-2420 
(2000)). Since August 21, 2001, the EAA 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 Notices, the most recent being that of August 12, 2010 
(75 FR 50681, August 16, 2010), has continued the Regulations in 
effect under the International Emergency Economic Powers Act (50 
U.S.C. 1701 et seq. (2000)).
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    I have received notice of Tsu's conviction for violating the IEEPA, 
and have provided notice and an opportunity for Tsu to make a written 
submission to BIS, as provided in Section 766.25 of the Regulations. I 
have not received a submission from Tsu. Based upon my review and 
consultations with BIS's Office of Export Enforcement, including its 
Director, and the facts available to BIS, I have decided to deny Tsu's 
export privileges under the Regulations for a period of 10 years from 
the date of Tsu's conviction. I have also decided to revoke all 
licenses issued pursuant to the Act or Regulations in which Tsu had an 
interest at the time of his conviction.

B. Denial of Export Privileges of Related Person

    Pursuant to Sections 766.25(h) and 766.23 of the Regulations, the 
Director of BIS's Office of Exporter Services, in consultation with the 
Director of BIS's Office of Export Enforcement, may take action to name 
persons related to a Respondent by ownership, control, position of 
responsibility, affiliation, or other connection in the conduct of 
trade or business in order to prevent evasion of a denial order. 
Because Tsu is the vice president of Cheerway Corporation 
(``Cheerway''), Cheerway is related to Tsu by ownership, control, 
position of responsibility, affiliation, or other connection in the 
conduct of trade or business. BIS believes that naming Cheerway as a 
related person to Tsu is

[[Page 12024]]

necessary to avoid evasion of the denial order against Tsu.
    As provided in Section 766.23 of the Regulations, I gave notice to 
Cheerway that its export privileges under the Regulations could be 
denied for up to 10 years due to its relationship with Tsu and that BIS 
believes naming it as a person related to Tsu would be necessary to 
prevent evasion of a denial order imposed against Tsu. In providing 
such notice, I gave Cheerway an opportunity to oppose its addition to 
the Tsu Denial Order as a related party. Having received no submission, 
I have decided, following consultations with BIS's Office of Export 
Enforcement, including its Director, to name Cheerway as a Related 
Person to the Tsu Denial Order, thereby denying its export privileges 
for 10 years from the date of Tsu's conviction.
    I have also decided to revoke all licenses issued pursuant to the 
Act or Regulations in which the Related Person had an interest at the 
time of Tsu's conviction. The 10-year denial period will end on August 
3, 2019.
Accordingly, it is hereby ordered:
    I. Until August 3, 2019, William Chi-Wai Tsu with last known 
addresses at: Register Number 34009-112, USP Florence ADMAX, U.S. 
Penitentiary, P.O. Box 8500, Florence, CO 81226 and 1432 Forest Glen 
Drive, Unit 65, Hacienda Heights, CA 91745, and when acting 
for or on behalf of Tsu, his representatives, assigns, agents or 
employees (collectively referred to hereinafter as the ``Denied 
Person''), and the following person related to the Denied Person as 
defined by Section 766.23 of the Regulations: Cheerway Corporation, 
with last known addresses at: 1641 W. Main Street, Suite 308, Alhambra, 
CA 91801, and 1432 Forest Glenn Drive, Unit 65, Hacienda 
Heights, CA 91745, and when acting for or on behalf of Cheerway, its 
successors or assigns, agents, or employees (``the Related Person'') 
(together, the Denied Person and the Related Person are ``Persons 
Subject to this Order''), may not, directly or indirectly, participate 
in any way in any transaction involving any commodity, software or 
technology (hereinafter collectively referred to as ``item'') exported 
or to be exported from the United States that is subject to the 
Regulations, or in any other activity subject to the Regulations, 
including but not limited to:
    A. Applying for, obtaining, or using any license, License 
Exception, or export control document;
    B. Carrying on negotiations concerning, or ordering, buying, 
receiving, using, selling, delivering, storing, disposing of, 
forwarding, transporting, financing, or otherwise servicing in any way, 
any transaction involving any item exported or to be exported from the 
United States that is subject to the Regulations, or in any other 
activity subject to the Regulations; or
    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.
    II. No person may, directly or indirectly, do any of the following:
    A. Export or reexport to or on behalf of the Persons Subject to 
this Order any item subject to the Regulations;
    B. Take any action that facilitates the acquisition or attempted 
acquisition by the Persons Subject to this Order 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 Persons 
Subject to this Order acquire or attempt to acquire such ownership, 
possession or control;
    C. Take any action to acquire from or to facilitate the acquisition 
or attempted acquisition from the Persons Subject to this Order of any 
item subject to the Regulations that has been exported from the United 
States;
    D. Obtain from the Persons Subject to this Order 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 Persons Subject to 
this Order, or service any item, of whatever origin, that is owned, 
possessed or controlled by the Persons Subject to this Order 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.
    III. In addition to the Related Person named above, after notice 
and opportunity for comment as provided in section 766.23 of the 
Regulations, any other person, firm, corporation, or business 
organization related to the Denied Person by affiliation, ownership, 
control, or position of responsibility in the conduct of trade or 
related services may also be made subject to the provisions of this 
Order if necessary to prevent evasion of the 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 foreign-produced direct 
product of U.S.-origin technology.
    V. This Order is effective immediately and shall remain in effect 
until August 3, 2019.
    VI. In accordance with Part 756 of the Regulations, Tsu 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. In accordance with Part 756 of the Regulations, the Related 
Person may also 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.
    VIII. A copy of this Order shall be delivered to the Denied Person 
and the Related Person. This Order shall be published in the Federal 
Register.

    Issued this 7th day of February, 2011.
 Bernard Kritzer,
Director, Office of Exporter Services.
[FR Doc. 2011-4819 Filed 3-3-11; 8:45 am]
BILLING CODE 3510-DT-P