[Federal Register Volume 77, Number 205 (Tuesday, October 23, 2012)]
[Notices]
[Pages 64795-64796]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-26058]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
[08-BIS-0005]
In the Matter of: Micei International, Respondent
Order Relating to Micei International
Whereas, the Bureau of Industry and Security, U.S. Department of
Commerce (``BIS''), notified Micei International, of Skopje, Macedonia
(``Micei'') in 2008 that it initiated an administrative proceeding
against Micei pursuant to Section 766.3 of the Export Administration
Regulations (the ``Regulations''),\1\ and Section 13(c) of the Export
Administration Act of 1979, as amended (the ``Act''),\2\ through the
issuance of a Charging Letter to Micei in 2008 that alleges that Micei
committed fourteen violations of the Regulations in 2003; \3\
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\1\ The Regulations are currently codified in the Code of
Federal Regulations at 15 CFR Parts 730-774 (2012). The alleged
violations occurred in 2003. The governing provisions of the EAR are
found in the 2003 version of the Code of Federal Regulations (15 CFR
Parts 730-774). The 2012 Regulations set forth the procedures that
apply to this matter.
\2\ 50 U.S.C. app. Sec. Sec. 2401-2420 (2000). Since August 21,
2001, the Act has been in lapse and the President, through Executive
Order 13222 of August 17, 2001 (3 CFR, 2001 Comp. 783 (2002)), which
has been extended by successive Presidential Notices, the most
recent being that of August15, 2012 (77 FR . 49699 (Aug. 16, 2012)),
has continued the Regulations in effect under the International
Emergency Economic Powers Act (50 U.S.C. 1701, et seq.).
\3\ See 74 FR 24,788 (May 26, 2009).
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Whereas, an Administrative Law Judge (``ALJ'') previously issued a
Recommended Decision and Order in this proceeding containing findings
of fact and conclusions of law, including, inter alia, that Micei was
in default under Section 766.7 of the Regulations, and the then-Acting
Under Secretary of Commerce for Industry and Security affirmed the
ALJ's recommended default order through a Final Decision and Order
dated May 14, 2009 (the ``May 14, 2009 Order'');
Whereas, Micei subsequently filed petitions for review of the May
14, 2009 Order, with the U.S. Court of Appeals for the District of
Columbia Circuit and submitted briefs raising various challenges to the
order (Appellant/Petitioner Brief filed Nov. 16, 2009, and Reply Brief
filed Dec. 30, 2009).\4\
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\4\ See Micei International v. Department of Commerce, Nos. 09-
1155 and 09-1186 (D.C. Cir.).
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Whereas, the May 14, 2009 Order became effective on May 26, 2009,
but subsequently, on July 24, 2009, BIS issued an Order Staying
Enforcement of Final Decision and Order Pending Appeal with regard to
the May 14, 2009 Order; \5\
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\5\ See FR 38,394 (August 3, 2009).
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Whereas, on July 16, 2010, the U.S. Court of Appeals for the
District of Columbia Circuit issued its Decision and Order transferring
Micei's petition for review to the U.S. District Court for the District
of Columbia.\6\ Accordingly, Micei's petition is currently pending as
Civil Action Number 1:10-cv-01237 (JDB) (the ``petition for review'');
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\6\ See Micei International v. Department of Commerce, 613 F.3d
1147 (D.C. Cir. 2010).
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Whereas, BIS and Micei have entered into a Settlement Agreement
pursuant to Section 766.18(b) of the Regulations, whereby they agreed
to settle this matter in accordance with the terms and conditions set
forth therein;
Whereas, the Settlement Agreement contains a provision that, if I
approve the terms of the Settlement Agreement and issue this Order, the
parties are required to jointly submit to the District Court within
five days of my issuance of this Order a stipulation of dismissal with
prejudice with regard to Micei's petition for review; and
Whereas, I have approved the terms of such Settlement Agreement.
It is therefore ordered:
First, as set forth in the Settlement Agreement, Micei shall
implement an Export Management and Compliance Program no later than six
months from the effective date of this Order. Said Export Management
and Compliance Program shall be in substantial compliance with the BIS
compliance guidelines, which are available from the BIS Web site at
http://www.bis.doc.gov/complianceandenforcement/emcp_guidelines.pdf,
and which are incorporated herein by reference. A copy of Micei's
Export Management and Compliance Program shall be submitted in English
to the Department of Commerce, Bureau of Industry and Security, Office
of Exporter Services, Export Management and Compliance Division, Attn:
Tom Andrukonis, 14th St. & Pennsylvania Ave. NW., Washington, DC 20230
(``BIS Export Management and Compliance Division'') no later than six
months from the effective date of this Order.
Second, as set forth in the Settlement Agreement, Micei shall
complete two audits of its compliance with U.S. export control laws
(including recordkeeping requirements), with respect to all exports or
reexports that are subject to the Regulations. The results of the
audits, including any relevant supporting materials, shall be submitted
in English to the BIS Export Management and Compliance Division
[[Page 64796]]
at the address listed in the paragraph above. The first audit shall
cover the period from January 1, 2012, through December 31, 2012, and
the related report shall be due to the BIS Export Management and
Compliance Division no later than January 31, 2013. The second audit
shall cover the period from January 1, 2013, through December 31, 2013,
and the related report shall be due to the BIS Export Management and
Compliance Division no later than January 31, 2014. Said audits shall
be in substantial compliance with the EMS sample audit module, which is
available on the BIS Web site at http://www.bis.doc.gov/complianceandenforcement/revised_emcp_audit.pdf, and shall include an
assessment of Micei's compliance with the Regulations. In addition,
where said audits identify actual or potential violations of the
Regulations, Micei shall promptly provide copies of the pertinent air
waybills and other export control documents and supporting
documentation to the BIS Export Management and Compliance Division.
Third, as set forth in the Settlement Agreement, the full and
timely implementation of the Export Management and Compliance Program,
as set forth above, and the timely completion and submission of the
audits, as set forth above, are hereby made conditions to the granting,
restoration, or continuing validity of any export license, license
exception, permission, or privilege granted, or to be granted, to
Micei. Accordingly, if Micei should fail to fully or timely implement
the Export Management and Compliance Program, or to timely complete and
submit either of the audits as agreed to by the Parties and as set
forth above, the undersigned may issue an Order denying all of Micei's
export privileges under the Regulations for a period of one year from,
respectively, the date by which the Export Management and Compliance
Program is to be implemented or the date by which the results of the
completed audits are to be submitted.
Fourth, that the Charging Letter, Settlement Agreement and this
Order shall be made available to the public following the dismissal
with prejudice of Micei's petition for review, along with the order of
dismissal with prejudice by the District Court of Micei's petition for
review.
Fifth, this Order shall become effective, upon entry of an order of
dismissal with prejudice by the District Court of Micei's petition for
review, shall constitute final agency action in this matter, and shall
supersede and void the May 14, 2009 Order.
Issued this 11th day of October 2012.
Eric L. Hirschhorn,
Under Secretary of Commerce for Industry and Security.
[FR Doc. 2012-26058 Filed 10-22-12; 8:45 am]
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