Order Making Denial of Export Privileges Applicable to a Related Person, 61951-61953 [2013-24401]
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Federal Register / Vol. 78, No. 195 / Tuesday, October 8, 2013 / Notices
Third, that the full and timely
payment of the civil penalty in
accordance with the payment schedule
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
Naghibi.
Fourth, that for a period of six (6)
years from the date of this Order,
Naghibi, with a last known address of
9426 Blessing Drive, Pleasanton,
California 94588, and when acting for or
on his behalf, his successors, assigns,
representatives, agents, or employees
(hereinafter collectively referred to as
‘‘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 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.
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;
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61951
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 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 the Order.
Seventh, Naghibi shall not take any
action or make or permit to be made any
public statement, directly or indirectly,
denying the allegations in the Proposed
Charging Letter or the Order. The
foregoing does not affect Naghibi’s
testimonial obligations in any
proceeding, nor does it affect its right to
take legal or factual positions in civil
litigation or other civil proceedings in
which the U.S. Department of
Commerce is not a party.
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 Naghibi, and shall be published in
the Federal Register.
This Order, which constitutes the
final agency action in this matter, is
effective immediately.
DEPARTMENT OF COMMERCE
Issued this 26th day of September, 2013.
David W. Mills,
Assistant Secretary of Commerce for Export
Enforcement.
1 The Regulations currently are codified at 15 CFR
Parts 730–774 (2013). The Regulations issued
pursuant to the Export Administration Act of 1979,
as amended (50 U.S.C. app. 2401–2420 (2000)) (the
‘‘Act’’). Since August 21, 2001, the Act has been in
lapse and the President, through Executive Order
13,222 of August 17, 2001 (3 CFR, 2001 Comp. 783
(2002)), which has been extended by successive
Presidential Notices, the most recent being that of
Notice of August 8, 2013 (78 FR 49107 (Aug. 12,
2013)), has continued the Regulations in effect
under the International Emergency Economic
Powers Act (50 U.S.C. 1701, et seq. (2006 and Supp.
IV 2010)).
[FR Doc. 2013–24402 Filed 10–7–13; 8:45 am]
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Bureau of Industry and Security
Order Making Denial of Export
Privileges Applicable to a Related
Person
In the Matter of:
Chan Heep Loong, 95 Havelock Road, #14–
583, Singapore, 160095 SG, San Jose, CA
95131; Respondent.
Tysonic Enterprises, 10 Anson Road, 15–14
International Plaza, Singapore, 079903 SG;
Related Person.
Pursuant to Section 766.23 of the
Export Administration Regulations
(‘‘EAR’’ or ‘‘Regulations’’),1 the Bureau
of Industry and Security (‘‘BIS’’), U.S.
Department of Commerce, through its
Office of Export Enforcement (‘‘OEE’’),
has requested that I make the denial
order that issued against Respondent
Chan Heep Loong (‘‘Loong’’) on July 21,
2013, and was published in the Federal
Register on July 29, 2013, and will
remain in effect until July 29, 2023
(hereinafter the ‘‘Denial Order’’),
applicable to the following entity as a
person related to Loong:
Tysonic Enterprises, 10 Anson Road,
15–14 International Plaza, Singapore,
079903 SG.
I. Background
A. The Denial Order
The Denial Order issued as part of the
Final Decision and Order issued by the
Under Secretary of Commerce for
Industry and Security (‘‘Under
Secretary’’) concluding a formal BIS
administrative proceeding against
Loong. In the Matter of Chan Heep
Loong, 10–BIS–0002 (Final Decision and
Order dated July 21, 2013, and
published in the Federal Register on
July 29, 2013 (78 FR 45497)). The Under
Secretary affirmed the findings and
conclusions contained in the
Recommended Decision and Order
issued by an Administrative Law Judge
(‘‘ALJ’’), in which the ALJ found Loong
in default, found the facts to be as
alleged in the Charging Letter issued
against Loong, and concluded that
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Federal Register / Vol. 78, No. 195 / Tuesday, October 8, 2013 / Notices
Loong had committed the three (3)
violations alleged in the Charging Letter.
BIS served the Charging Letter on
Loong at his last known address in
Singapore. As described in the Final
Decision and Order issued by the Under
Secretary, BIS engaged in
communications with Loong through
his representative, while never receiving
an answer to the charges. Thus, BIS
moved for a default order against Loong.
As alleged in the Charging Letter,
determined by the ALJ, and affirmed by
the Under Secretary, Loong engaged in
the following conduct in violation of the
Regulations:
Charge 1 15 CFR 764.2(b)—Causing an
Export to Iran Without Authorization
From on or about February 14, 2005,
through on or about February 24, 2005,
Loong caused the doing of an act prohibited
by the Regulations. Specifically, Loong
caused the export from the United States to
Iran, via transshipment through Singapore, of
GPS engines, items subject to the Regulations
and the Iranian Transaction Regulations 2
(‘‘ITR’’) of the Department of the Treasury’s
Office of Foreign Assets Control (‘‘OFAC’’),
without the required U.S. Government
authorization. Specifically, Loong, in his
capacity as Owner/Operator of Tysonic
Enterprises (‘‘Tysonic’’), of Singapore,
ordered and/or bought the GPS engines,
items that are classified under Export Control
Classification Number (‘‘ECCN’’) 7A994 and
are controlled for anti-terrorism reasons, from
a U.S. company without informing that
company of the intended final destination of
the items. Loong then instructed the U.S.
company to ship the items from the United
States to Tysonic in Singapore, and,
following arrival in Singapore, the items
were then forwarded to Iran. Pursuant to
Section 734.2(b)(6) of the Regulations, the
export of an item from the United States to
a second country intended for transshipment
to a third country is deemed to be an export
to that third country. Under Section 746.7 of
the Regulations, a license from either BIS or
OFAC is required to export to Iran items
subject to control for anti-terrorism reasons,
including items listed under ECCN 7A994.
Neither BIS nor OFAC authorized the export
of the items described above to Iran. In
engaging in the activity described herein,
Loong committed one violation of Section
764.2(b) of the Regulations.
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Charge 2 15 CFR 764.2(b)—Causing
an Export to Iran Without
Authorization
From on or about April 22, 2005, through
on or about May 12, 2005, Loong caused the
doing of an act prohibited by the Regulations.
Specifically, Loong caused the export from
the United States to Iran, via transshipment
through Singapore, of a peak power meter, an
item subject to the Regulations and the
Iranian Transaction Regulations (‘‘ITR’’) of
the Department of the Treasury’s Office of
Foreign Assets Control (‘‘OFAC’’). without
2 31
CFR Part 560 (2005).
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the required U.S. Government authorization.
Specifically, Loong, in his capacity as
Owner/Operator of Tysonic, ordered and/or
bought the peak power meter, an item
classified under ECCN 3A992 and is
controlled for anti-terrorism reasons, from a
U.S. company, from a U.S. company. Loong
then instructed the U.S. company to ship the
items from the United States to Tysonic in
Singapore, and, following arrival in
Singapore, the items were then forwarded to
Iran. Pursuant to Section 734.2(b)(6) of the
Regulations, the export of an item from the
United States to a second country intended
for transshipment to a third country is
deemed to be an export to that third country.
Under Section 746.7 of the Regulations, a
license from either BIS or OFAC is required
to export to Iran items subject to control for
anti-terrorism reasons, including items listed
under ECCN 3A992. Neither BIS nor OFAC
authorized the export of the items described
above to Iran. In engaging in the activity
described herein, Loong committed one
violation of Section 764.2(b) of the
Regulations.
Charge 3 15 CFR § 764.2(k)—Violation
of Terms of an Order Temporarily
Denying Export Privileges
On or about August 29, 2006, Loong
engaged in conduct prohibited by an Order
issued by the Assistant Secretary of
Commerce for Export Enforcement on April
12, 2006 pursuant to Section 766.24 of the
Regulations, and effective upon publication
in the Federal Register on April 19, 2006,
temporarily denying the export privileges of
Loong and Tysonic for 180 days (71 FR
20074, April 19, 2006) (the ‘‘TDO’’). Under
the terms of the TDO, Loong was prohibited
from ‘‘directly or indirectly, participat[ing] in
any way in any transaction involving any
[item] exported or to be exported from the
United States that is subject to the
Regulations, or in a[n]y other activity subject
to the Regulations, or in any other activity
subject to the Regulations, including . . .
[c]arrying 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.’’ On or about
August 29, 2006, Loong, acting through
Rosen Enterprises, ordered and/or bought 30
inverters, items subject to the EAR and
designated as EAR99, from a company
located in the United States for export from
the United States. Rosen Enterprises is
owned and operated by Loong and co-located
with Tysonic in Singapore. On or about
August 29, 2006, the 30 inverters were
exported from the United States to Singapore.
The TDO continued in force at the time of
the aforementioned actions taken by Loong.
In engaging in the conduct described herein,
Loong committed one violation of Section
764.2(k) of the Regulations.
As noted in Final Decision and Order,
the ‘‘ALJ also recommended that the
Under Secretary deny Loong’s export
privileges for a period of ten years,
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citing, inter alia, Loong’s ‘clear
disregard for the Regulations and U.S.
export control law, including the longstanding U.S. trade embargo against Iran
and the TDO issued against him in April
2006.’’’ Final Decision and Order, at
45,498 (quoting Recommended Decision
and Order at 8).
The Under Secretary agreed with this
recommendation and imposed the
Denial Order given, inter alia, the nature
and number of the violations and the
importance of deterring Loong and
others from acting to evade the
Regulations and otherwise knowingly
violate the Regulations. Id.
B. Related Person’s Notice Letter
This matter is now before me upon
BIS’s request to add Tysonic Enterprises
(‘‘Tysonic’’) to the Denial Order as a
related person to Loong.3
Pursuant to the Regulations, BIS
notified Tysonic of its intent to add
Tysonic as a person related to Loong by
ownership, control, position of
responsibility, affiliation, or other
connection in the conduct of trade or
business, in light of Loong’s position as
owner/operator of Tysonic. This notice
was provided by letter on September 10,
2013, in accordance with Sections
766.5(b) and 766.23(b) of the
Regulations.
Tysonic never responded.
II. Application of Section 766.23
(Related Persons)
A. Legal Standard
Section 766.23(a) of the Regulations
provides, in pertinent part, that:
In order to prevent evasion, certain types
of orders under [Part 766] may be made
applicable not only to the respondent, but
also to other persons then or thereafter
related to the respondent by ownership,
control, position of responsibility, affiliation,
or other connection in the conduct of trade
or business. Orders that may be made
applicable to related persons include those
that deny or affect export privileges,
including temporary denial orders, and those
that exclude a respondent from practice
before BIS.
15 CFR 766.23(a). Thus, a denial order
may be made applicable to related
persons, by adding them to the denial
order at issue, in order to prevent
evasion of the order. Id.
B. Findings
Based on the record here, I find that
Tysonic is a related person to Loong and
that Tysonic should be added to the
Denial Order in order to prevent its
3 I have been designated by the Under Secretary
as the authorized official to consider BIS’s request
under Section 766.23 of the Regulations. See 15
CFR 766.23(b).
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wreier-aviles on DSK5TPTVN1PROD with NOTICES
evasion. Tysonic is owned and operated
by Loong.
In addition, Tysonic was involved in
two of the transactions and violations
that led to the issuance of the Denial
Order against Loong. As alleged in the
violations set forth in Charges 1 and 2
of the Charging Letter, determined by
the ALJ, and affirmed by the Under
Secretary, Loong, in his capacity as
owner and operator of Tysonic, ordered
and/or bought GPS engines and peak
power meter from the United States and
had the items shipped to Tysonic in
Singapore. Following the arrival of the
items in Singapore, the items were then
shipped on to Iran. As a result of these
transactions, on April 12, 2006, BIS
temporarily denied the export privileges
of both Loong and Tysonic for a period
of 180 days. In the matter of Tysonic
Enterprises and Chan Heep Loong, 71
FR 20074 (April 19, 2006).
Furthermore, while subject to this
temporary denial order (‘‘TDO’’), Loong
continued to procure items subject to
the EAR from the United States, in clear
violation of the terms of the TDO, and
did so by evasively using another
company, Rosen Enterprises, which he
also owned and operated and which
was co-located with Tysonic. See
Charge 3. Thus, Loong has already
demonstrated his willingness to use
companies related to him to contravene
and evade a denial order issued against
him.
Based on the foregoing and the record
as a whole in this matter, I find that
Tysonic is a person related to Loong by
‘‘ownership, control, position of
responsibility, affiliation, or other
connection in the conduct of trade or
business’’ pursuant to Section 766.23 of
the Regulations, and that the Denial
Order against Loong, which will remain
in effect until December July 29, 2023,
should be made applicable to Tysonic in
order to prevent evasion of that order.
III. Order
It is therefore ordered:
First, that from the date this Order is
published in the Federal Register, until
July 29, 2023, Tysonic Enterprises,
located at 10 Anson Road, 15–14
International Plaza, Singapore, 079903
SG, and its successors and assigns, and
when acting for or on its behalf, its
directors, officers, employees,
representatives, or agents (hereinafter
referred to as ‘‘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
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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 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.
Second, 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
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.
Third, 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 the Denied
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61953
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.
Fourth, 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.
Fifth, that this Order shall be served
on the Denied Person and on BIS, and
shall be published in the Federal
Register.
This Order is effective upon
publication in the Federal Register and
shall remain in effect until July 29,
2023.
Entered this 30th day of September, 2013.
David W. Mills,
Assistant Secretary of Commerce for Export
Enforcement.
[FR Doc. 2013–24401 Filed 10–7–13; 8:45 am]
BILLING CODE P
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
Order Denying Export Privileges
In the Matter of:
Timothy Gormley, Inmate Number—68687–
066, USP Lewisburg, US Penitentiary, P.O.
Box 1000, Lewisburg, PA 17837.
On January 17, 2013, in the U.S.
District Court, Eastern District of
Pennsylvania, Timothy Gormley
(‘‘Gormley’’), was convicted of violating
the International Emergency Economic
Powers Act (50 U.S.C. 1701, et seq.
(2006 & Supp. IV 2010)) (‘‘IEEPA’’).
Specifically, Gormley was convicted on
five counts of violating IEEPA by
engaging in transactions relating to
exporting amplifiers to China and India
without obtaining the required licenses.
Gormley was sentenced to 42 months of
imprisonment, five years of supervised
release, a $500 assessment and a $1,000
criminal fine.
Section 766.25 of the Export
Administration Regulations (‘‘EAR’’ or
‘‘Regulations’’) 1 provides, in pertinent
1 The Regulations are currently codified in the
Code of Federal Regulations at 15 CFR Parts 730–
774 (2013). The Regulations issued pursuant to the
Export Administration Act (50 U.S.C. app. §§ 2401–
2420 (2000)) (‘‘EAA’’). 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 8, 2013 (78 FR 49107 (August
12, 2013)), has continued the Regulations in effect
under the International Emergency Economic
E:\FR\FM\08OCN1.SGM
Continued
08OCN1
]]>Agencies
[Federal Register Volume 78, Number 195 (Tuesday, October 8, 2013)]
[Notices]
[Pages 61951-61953]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-24401]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
Order Making Denial of Export Privileges Applicable to a Related
Person
In the Matter of:
Chan Heep Loong, 95 Havelock Road, 14-583, Singapore,
160095 SG, San Jose, CA 95131; Respondent.
Tysonic Enterprises, 10 Anson Road, 15-14 International Plaza,
Singapore, 079903 SG; Related Person.
Pursuant to Section 766.23 of the Export Administration Regulations
(``EAR'' or ``Regulations''),\1\ the Bureau of Industry and Security
(``BIS''), U.S. Department of Commerce, through its Office of Export
Enforcement (``OEE''), has requested that I make the denial order that
issued against Respondent Chan Heep Loong (``Loong'') on July 21, 2013,
and was published in the Federal Register on July 29, 2013, and will
remain in effect until July 29, 2023 (hereinafter the ``Denial
Order''), applicable to the following entity as a person related to
Loong:
---------------------------------------------------------------------------
\1\ The Regulations currently are codified at 15 CFR Parts 730-
774 (2013). The Regulations issued pursuant to the Export
Administration Act of 1979, as amended (50 U.S.C. app. 2401-2420
(2000)) (the ``Act''). Since August 21, 2001, the Act has been in
lapse and the President, through Executive Order 13,222 of August
17, 2001 (3 CFR, 2001 Comp. 783 (2002)), which has been extended by
successive Presidential Notices, the most recent being that of
Notice of August 8, 2013 (78 FR 49107 (Aug. 12, 2013)), has
continued the Regulations in effect under the International
Emergency Economic Powers Act (50 U.S.C. 1701, et seq. (2006 and
Supp. IV 2010)).
Tysonic Enterprises, 10 Anson Road, 15-14 International Plaza,
Singapore, 079903 SG.
I. Background
A. The Denial Order
The Denial Order issued as part of the Final Decision and Order
issued by the Under Secretary of Commerce for Industry and Security
(``Under Secretary'') concluding a formal BIS administrative proceeding
against Loong. In the Matter of Chan Heep Loong, 10-BIS-0002 (Final
Decision and Order dated July 21, 2013, and published in the Federal
Register on July 29, 2013 (78 FR 45497)). The Under Secretary affirmed
the findings and conclusions contained in the Recommended Decision and
Order issued by an Administrative Law Judge (``ALJ''), in which the ALJ
found Loong in default, found the facts to be as alleged in the
Charging Letter issued against Loong, and concluded that
[[Page 61952]]
Loong had committed the three (3) violations alleged in the Charging
Letter.
BIS served the Charging Letter on Loong at his last known address
in Singapore. As described in the Final Decision and Order issued by
the Under Secretary, BIS engaged in communications with Loong through
his representative, while never receiving an answer to the charges.
Thus, BIS moved for a default order against Loong.
As alleged in the Charging Letter, determined by the ALJ, and
affirmed by the Under Secretary, Loong engaged in the following conduct
in violation of the Regulations:
Charge 1 15 CFR 764.2(b)--Causing an Export to Iran Without
Authorization
From on or about February 14, 2005, through on or about February
24, 2005, Loong caused the doing of an act prohibited by the
Regulations. Specifically, Loong caused the export from the United
States to Iran, via transshipment through Singapore, of GPS engines,
items subject to the Regulations and the Iranian Transaction
Regulations \2\ (``ITR'') of the Department of the Treasury's Office
of Foreign Assets Control (``OFAC''), without the required U.S.
Government authorization. Specifically, Loong, in his capacity as
Owner/Operator of Tysonic Enterprises (``Tysonic''), of Singapore,
ordered and/or bought the GPS engines, items that are classified
under Export Control Classification Number (``ECCN'') 7A994 and are
controlled for anti-terrorism reasons, from a U.S. company without
informing that company of the intended final destination of the
items. Loong then instructed the U.S. company to ship the items from
the United States to Tysonic in Singapore, and, following arrival in
Singapore, the items were then forwarded to Iran. Pursuant to
Section 734.2(b)(6) of the Regulations, the export of an item from
the United States to a second country intended for transshipment to
a third country is deemed to be an export to that third country.
Under Section 746.7 of the Regulations, a license from either BIS or
OFAC is required to export to Iran items subject to control for
anti-terrorism reasons, including items listed under ECCN 7A994.
Neither BIS nor OFAC authorized the export of the items described
above to Iran. In engaging in the activity described herein, Loong
committed one violation of Section 764.2(b) of the Regulations.
---------------------------------------------------------------------------
\2\ 31 CFR Part 560 (2005).
---------------------------------------------------------------------------
Charge 2 15 CFR 764.2(b)--Causing an Export to Iran Without
Authorization
From on or about April 22, 2005, through on or about May 12,
2005, Loong caused the doing of an act prohibited by the
Regulations. Specifically, Loong caused the export from the United
States to Iran, via transshipment through Singapore, of a peak power
meter, an item subject to the Regulations and the Iranian
Transaction Regulations (``ITR'') of the Department of the
Treasury's Office of Foreign Assets Control (``OFAC''). without the
required U.S. Government authorization. Specifically, Loong, in his
capacity as Owner/Operator of Tysonic, ordered and/or bought the
peak power meter, an item classified under ECCN 3A992 and is
controlled for anti-terrorism reasons, from a U.S. company, from a
U.S. company. Loong then instructed the U.S. company to ship the
items from the United States to Tysonic in Singapore, and, following
arrival in Singapore, the items were then forwarded to Iran.
Pursuant to Section 734.2(b)(6) of the Regulations, the export of an
item from the United States to a second country intended for
transshipment to a third country is deemed to be an export to that
third country. Under Section 746.7 of the Regulations, a license
from either BIS or OFAC is required to export to Iran items subject
to control for anti-terrorism reasons, including items listed under
ECCN 3A992. Neither BIS nor OFAC authorized the export of the items
described above to Iran. In engaging in the activity described
herein, Loong committed one violation of Section 764.2(b) of the
Regulations.
Charge 3 15 CFR Sec. 764.2(k)--Violation of Terms of an Order
Temporarily Denying Export Privileges
On or about August 29, 2006, Loong engaged in conduct prohibited
by an Order issued by the Assistant Secretary of Commerce for Export
Enforcement on April 12, 2006 pursuant to Section 766.24 of the
Regulations, and effective upon publication in the Federal Register
on April 19, 2006, temporarily denying the export privileges of
Loong and Tysonic for 180 days (71 FR 20074, April 19, 2006) (the
``TDO''). Under the terms of the TDO, Loong was prohibited from
``directly or indirectly, participat[ing] in any way in any
transaction involving any [item] exported or to be exported from the
United States that is subject to the Regulations, or in a[n]y other
activity subject to the Regulations, or in any other activity
subject to the Regulations, including . . . [c]arrying 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.'' On or about
August 29, 2006, Loong, acting through Rosen Enterprises, ordered
and/or bought 30 inverters, items subject to the EAR and designated
as EAR99, from a company located in the United States for export
from the United States. Rosen Enterprises is owned and operated by
Loong and co-located with Tysonic in Singapore. On or about August
29, 2006, the 30 inverters were exported from the United States to
Singapore. The TDO continued in force at the time of the
aforementioned actions taken by Loong. In engaging in the conduct
described herein, Loong committed one violation of Section 764.2(k)
of the Regulations.
As noted in Final Decision and Order, the ``ALJ also recommended
that the Under Secretary deny Loong's export privileges for a period of
ten years, citing, inter alia, Loong's `clear disregard for the
Regulations and U.S. export control law, including the long-standing
U.S. trade embargo against Iran and the TDO issued against him in April
2006.''' Final Decision and Order, at 45,498 (quoting Recommended
Decision and Order at 8).
The Under Secretary agreed with this recommendation and imposed the
Denial Order given, inter alia, the nature and number of the violations
and the importance of deterring Loong and others from acting to evade
the Regulations and otherwise knowingly violate the Regulations. Id.
B. Related Person's Notice Letter
This matter is now before me upon BIS's request to add Tysonic
Enterprises (``Tysonic'') to the Denial Order as a related person to
Loong.\3\
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\3\ I have been designated by the Under Secretary as the
authorized official to consider BIS's request under Section 766.23
of the Regulations. See 15 CFR 766.23(b).
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Pursuant to the Regulations, BIS notified Tysonic of its intent to
add Tysonic as a person related to Loong by ownership, control,
position of responsibility, affiliation, or other connection in the
conduct of trade or business, in light of Loong's position as owner/
operator of Tysonic. This notice was provided by letter on September
10, 2013, in accordance with Sections 766.5(b) and 766.23(b) of the
Regulations.
Tysonic never responded.
II. Application of Section 766.23 (Related Persons)
A. Legal Standard
Section 766.23(a) of the Regulations provides, in pertinent part,
that:
In order to prevent evasion, certain types of orders under [Part
766] may be made applicable not only to the respondent, but also to
other persons then or thereafter related to the respondent by
ownership, control, position of responsibility, affiliation, or
other connection in the conduct of trade or business. Orders that
may be made applicable to related persons include those that deny or
affect export privileges, including temporary denial orders, and
those that exclude a respondent from practice before BIS.
15 CFR 766.23(a). Thus, a denial order may be made applicable to
related persons, by adding them to the denial order at issue, in order
to prevent evasion of the order. Id.
B. Findings
Based on the record here, I find that Tysonic is a related person
to Loong and that Tysonic should be added to the Denial Order in order
to prevent its
[[Page 61953]]
evasion. Tysonic is owned and operated by Loong.
In addition, Tysonic was involved in two of the transactions and
violations that led to the issuance of the Denial Order against Loong.
As alleged in the violations set forth in Charges 1 and 2 of the
Charging Letter, determined by the ALJ, and affirmed by the Under
Secretary, Loong, in his capacity as owner and operator of Tysonic,
ordered and/or bought GPS engines and peak power meter from the United
States and had the items shipped to Tysonic in Singapore. Following the
arrival of the items in Singapore, the items were then shipped on to
Iran. As a result of these transactions, on April 12, 2006, BIS
temporarily denied the export privileges of both Loong and Tysonic for
a period of 180 days. In the matter of Tysonic Enterprises and Chan
Heep Loong, 71 FR 20074 (April 19, 2006).
Furthermore, while subject to this temporary denial order
(``TDO''), Loong continued to procure items subject to the EAR from the
United States, in clear violation of the terms of the TDO, and did so
by evasively using another company, Rosen Enterprises, which he also
owned and operated and which was co-located with Tysonic. See Charge 3.
Thus, Loong has already demonstrated his willingness to use companies
related to him to contravene and evade a denial order issued against
him.
Based on the foregoing and the record as a whole in this matter, I
find that Tysonic is a person related to Loong by ``ownership, control,
position of responsibility, affiliation, or other connection in the
conduct of trade or business'' pursuant to Section 766.23 of the
Regulations, and that the Denial Order against Loong, which will remain
in effect until December July 29, 2023, should be made applicable to
Tysonic in order to prevent evasion of that order.
III. Order
It is therefore ordered:
First, that from the date this Order is published in the Federal
Register, until July 29, 2023, Tysonic Enterprises, located at 10 Anson
Road, 15-14 International Plaza, Singapore, 079903 SG, and its
successors and assigns, and when acting for or on its behalf, its
directors, officers, employees, representatives, or agents (hereinafter
referred to as ``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 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.
Second, 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
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.
Third, 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 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.
Fourth, 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.
Fifth, that this Order shall be served on the Denied Person and on
BIS, and shall be published in the Federal Register.
This Order is effective upon publication in the Federal Register
and shall remain in effect until July 29, 2023.
Entered this 30th day of September, 2013.
David W. Mills,
Assistant Secretary of Commerce for Export Enforcement.
[FR Doc. 2013-24401 Filed 10-7-13; 8:45 am]
BILLING CODE P
