Order Making Denial of Export Privileges Applicable to a Related Person, 61951-61953 [2013-24401]

Download as PDF wreier-aviles on DSK5TPTVN1PROD with NOTICES 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; VerDate Mar<15>2010 13:09 Oct 07, 2013 Jkt 232001 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] BILLING CODE P PO 00000 Frm 00003 Fmt 4703 Sfmt 4703 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 E:\FR\FM\08OCN1.SGM 08OCN1 61952 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. wreier-aviles on DSK5TPTVN1PROD with NOTICES 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). VerDate Mar<15>2010 13:09 Oct 07, 2013 Jkt 232001 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, PO 00000 Frm 00004 Fmt 4703 Sfmt 4703 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). E:\FR\FM\08OCN1.SGM 08OCN1 Federal Register / Vol. 78, No. 195 / Tuesday, October 8, 2013 / Notices 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 VerDate Mar<15>2010 13:09 Oct 07, 2013 Jkt 232001 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 PO 00000 Frm 00005 Fmt 4703 Sfmt 4703 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\
---------------------------------------------------------------------------

    \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).
---------------------------------------------------------------------------

    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