[Federal Register Volume 77, Number 151 (Monday, August 6, 2012)]
[Notices]
[Pages 46684-46685]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-19102]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
In the Matter of: Universal Industries Limited, Inc., 3050 SW
14th Place Unit 3, Boynton Beach, FL 33426; Order Denying Export
Privileges
On August 19, 2011, in the U.S. District Court, Southern District
of Florida, Universal Industries Limited, Inc. (``Universal'') was
convicted of violating Section 38 of the Arms Export Control Act (22
U.S.C. 2778 (2000)) (``AECA''). Specifically, Universal was convicted
of knowingly and willfully attempting to export from the United States
to Singapore military aircraft parts, that is approximately 200 J-85
Stage 1 engines blades, part number 6009T97PO5, which items were
designated as defense articles on the United States Munitions List,
without having first obtained from the Department of State a license
for such export or written authorization for such export. Universal was
sentenced to one year probation, a $1,000 fine and a special assessment
of $400. Universal is also listed on the U.S. Department of State
Debarred List.
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, or 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. Sec. 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. Sec. 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 her conviction.
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\1\ The Regulations are currently codified in the Code of
Federal Regulations at 15 CFR parts 730-774 (2012). The Regulations
issued pursuant to the Export Administration Act (50 U.S.C. app.
Sec. Sec. 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 12, 2011 (76 FR 50661 (August 16, 2011)), 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 Universal's conviction for violating the
AECA, and have provided notice and an opportunity for Universal to make
a written submission to BIS, as provided in Section 766.25 of the
Regulations. I have received and reviewed the submission from Universal
and 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 Universal's export privileges under the
Regulations for a period of three years from the date of Universal's
conviction. I have also decided to revoke all licenses issued pursuant
to the Act or Regulations in which Universal had an interest at the
time of its conviction.
Accordingly, it is hereby ordered
I. Until August 19, 2014, Universal Industries Limited, Inc., with
a last known address at: 3050 SW., 14th Place, Unit 3, Boynton Beach,
Florida 33426, and when acting for or on behalf of Universal, its
successors or assigns,
[[Page 46685]]
agents or employees, (the ``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, 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 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.
III. 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 Universal by affiliation,
ownership, control or position of responsibility in the conduct of
trade or related services may also be 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 19, 2014.
VI. In accordance with Part 756 of the Regulations, Universal 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. A copy of this Order shall be delivered to the Universal. This
Order shall be published in the Federal Register.
Issued this 27 day of July 2012.
Bernard Kritzer,
Director, Office of Exporter Services.
[FR Doc. 2012-19102 Filed 8-3-12; 8:45 am]
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