[Federal Register Volume 60, Number 137 (Tuesday, July 18, 1995)]
[Notices]
[Pages 36774-36775]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-17575]
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DEPARTMENT OF COMMERCE
Bureau of Export Administration
Hubert Maassen, Individually and Doing Business as HM-EDV With an
address at: Hirmerweg 4, D800 Munich, Federal Republic of Germany
Respondents; Decision and Order
[Docket Nos. 3105-01; 3105-02]
On June 27, 1995, the Administrative Law Judge (ALJ) entered his
Recommended Decision and Default Order in the above-referenced matter.
The Recommended Decision and Default Order, a copy of which is attached
hereto and made part hereof, has been referred to me for final action.
After describing the facts of the case and his findings based on those
facts, the ALJ found that the Respondents on three separate occasions
violated Sec. 787.6 of the Export Administration Regulations (EAR) by
reexporting from the Federal Republic of Germany through Austria to
Hungary U.S.-origin computer equipment without obtaining the required
reexport authorization from the Department of Commerce. The ALJ further
found that the Respondents violated Sec. 787.5(a) of the EAR by
indirectly making a false or misleading representation concerning the
ultimate destination of U.S.-computer equipment in connection with the
preparation, submission, or use of an export license application.
The ALJ found that the appropriate penalty for the violations
should be that the Respondents and all successors, assignees, officers,
representatives, agents and employees be denied for a period of twenty
years from this date all privileges of participating, directly or
indirectly, in any manner or capacity, in any transaction in the United
States or abroad involving commodities or technical data exported or to
be exported from the United States and subject to the Export
Administration Regulations.
Based on my review of the entire record, I affirm the Recommended
Decision and Default Order of the Administrative Law Judge.
This constitutes final agency action in this matter.
Dated: July 12, 1995.
William A. Reinsch,
Under Secretary for Export Administration.
Recommended Decision and Default Order
On May 4, 1993, the Office of Export Enforcement, Bureau of Export
Administration, United States Department of Commerce (Department),
issued a charging letter initiating administrative proceedings against
Hubert Maassen, individually and doing business as HM-EDV (collectively
referred to hereinafter as Maassen). The charging letter alleged that
Maassen committed four violations of the Export Administration
Regulations (currently codified at 15 CFR parts 768-799 (1995)) (the
Regulations),\1\ issued pursuant to the Export Administration Act of
1979, as amended (currently codified at 50 U.S.C.A. app.
Sec. Sec. 2401-2420 (1991, Supp. 1993, and Pub. L. No. 103-277, July 5,
1994) (the Act).\2\
\1\ The alleged violations occurred during 1988 and 1989. The
Regulations governing the violations at issue are found in the 1988
version of the Code of Federal Regulations, codified at 15 CFR Parts
368-399 (1988), and the 1989 version of the Code of Federal
Regulations, codified at 15 CFR Parts 768-799 (1989). Effective
October 1, 1988, the Regulations were redesignated as 15 CFR Parts
768-799 (53 FR 37751, September 28, 1988). The redesignation merely
changed the first number of each part from ``3'' to ``7.''
\2\ The Act expired on August 20, 1994. Executive Order 12924
(59 Fed. Reg. 43437, August 23, 1994) continued the Regulations in
effect under the International Emergency Economic Powers Act (50
U.S.C.A. Sec. Sec. 1701-1706 (1991)).
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Specifically, the charging letter alleged that Maassen, on three
separate occasions, reexported from the then-Federal Republic of
Germany through Austria to Hungary U.S.-origin computer equipment,
without obtaining from the Department the reexport authorization
required by Sec. 774.1 of the Regulations. The charging letter further
alleged that Maassen indirectly made a false or misleading
representation concerning the ultimate destination of U.S.-origin
computer equipment, a material fact, in connection with the
preparation, submission, or use of an export license application, an
export control document. Accordingly, the Department alleged that
Maassen committed three violations of Sec. 787.6 and one violation of
Sec. 787.5(a) of the Regulations.
On May 26, 1995, in light of the fact that Maassen had not answered
the
[[Page 36775]]
charging letter in accordance with the requirements of Sec. 787.7 of
the Regulations, I ordered the Department to file a default submission,
together with supporting evidence for the allegations made, by June 26,
1995.
On the basis of the Department's submission and all of the
supporting evidence presented, I have determined that Maassen violated
Sec. 787.6 and 787.5(a) of the Regulations by reexporting from the FRG
through Austria to Hungary U.S.-origin computer equipment without
obtaining from the Department the reexport authorization required by
Sec. 774.1 of the Regulations, and by indirectly making a false or
misleading representation concerning the ultimate destination of U.S.-
origin computer equipment, a material fact, in connection with the
preparation, submission, or use of an export license application, an
export control document, as the Department alleges.
For those violations, the Department urges as a sanction that
Maassen's export privileges be denied for 20 years. I concur in the
Department's recommendation.
Accordingly, it is therefore ordered, First, that all outstanding
individual validated licenses in which Hubert Maassen, individually and
doing business as HM-EDV, appears or participates, in any manner or
capacity, are hereby revoked and shall be returned forthwith to the
Office of Exporter Services for cancellation. Further, all of Maassen's
privileges of participating, in any manner or capacity, in any special
licensing procedure, including, but not limited to, distribution
licenses, are hereby revoked.
Second, Hubert Maassen, individually and doing business as HM-EDV,
with an address at Hirmerweg 4, D8000 Munich, Federal Republic of
Germany (collectively referred to hereinafter as Maassen), and all
successors, assigns, officers, representatives, agents, and employees,
shall, for a period of 20 years from the date of final agency action,
be denied all privileges of participating, directly or indirectly, in
any manner or capacity, in any transaction in the United States or
abroad involving any commodity or technical data exported or to be
exported from the United States, and subject to the Regulations.
A. Without limiting the generality of the foregoing, participation,
either in the United States or abroad, shall include participation,
directly or indirectly, in any manner or capacity: (i) as a party or as
a representative of a party to any export license application submitted
to the Department; (ii) in preparing or filing with the Department any
export license application or request for reexport authorization, or
any document to be submitted therewith; (iii) in obtaining from the
Department or using any validated or general export license, reexport
authorization, or other export control document; (iv) in carrying on
negotiations with respect to, or in receiving, ordering, buying,
selling, delivering, storing, using, or disposing of, in whole or in
part, any commodities or technical data exported or to be exported from
the United States and subject to the Regulations; and (v) in financing,
forwarding, transporting, or other servicing of such commodities or
technical data.
B. After notice and opportunity for comment as provided in
Sec. 788.3(c) of the Regulations, any person, firm, corporation, or
business organization related to Maassen 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.
C. As provided by Sec. 787.12(a) of the Regulations, without prior
disclosure of the facts to and specific authorization of the Office of
Exporter Services, in consultation with the Office of Export
Enforcement, no person may directly or indirectly, in any manner or
capacity: (i) apply for, obtain, or use any license, Shipper's Export
Declaration, bill of lading, or other export control document relating
to an export of reexport of commodities or technical data by, to, or
for another person then subject to an order revoking or denying his
export privileges or then excluded from practice before the Bureau of
Export Administration; or (ii) order, buy, receive, use, sell, deliver,
store, dispose of, forward, transport, finance, or otherwise service or
participate: (a) in any transaction which may involve any commodity or
technical data exported or to be exported from the United States; (b)
in any reexport thereof; or (c) in any other transaction which is
subject to the Export Administration Regulations, if the person denied
export privileges may obtain any benefit or have any interest in,
directly or indirectly, any of these transactions.
Third, that a copy of this Order shall be served on Maassen and on
the Department.
Fourth, that this Order, as affirmed or modified, shall become
effective upon entry of the final action by the Under Secretary for
Export Administration, in accordance with the Act (50 U.S.C.A. app.
Sec. 2412(c)(1)) and the Regulations (15 CFR Sec. 788.23).
Dated: June 27, 1995.
Edward J. Kuhlmann,
Administrative Law Judge.
To be considered in the 30 day statutory review process which is
mandated by Section 13(c) of the Act, submissions must be received in
the Office of the Under Secretary for Export Administration, U.S.
Department of Commerce, 14th & Constitution Ave., N.W., Room 3898B,
Washington, D.C., 20230, within 12 days. Replies to the other party's
submission are to be made within the following 8 days. 15 C.F.R.
Sec. 788.23(b), 50 Fed. Reg. 53134 (1985). Pursuant to Section 13(c)(3)
of the Act, the order of the final order of the Under Secretary may be
appealed to the U.S. Court of Appeals for the District of Columbia
within 15 days of its issuance.
[FR Doc. 95-17575 Filed 7-17-95; 8:45 am]
BILLING CODE 3510-DT-M