[Federal Register Volume 62, Number 93 (Wednesday, May 14, 1997)]
[Notices]
[Pages 26471-26472]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-12573]
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DEPARTMENT OF COMMERCE
Bureau of Export Administration
Action Affecting Export Privileges; Thane-Coat, Inc., Jerry
Vernon Ford, Preston John Engebretson, Export Materials, Inc. and
Thane-Coat International, Ltd
In the matters of: Thane-Coat, Inc., 12725 Royal Drive,
Stafford, Texas 77477; Jerry Vernon Ford, President, Thane-Coat,
Inc., 12725 Royal Drive, Stafford, Texas 77477, and with an address
at 7707 Augustine Drive, Houston, Texas 77036; Preston John
Engebretson, Vice-President, Thane-Coat, Inc., 12725 Royal Drive,
Stafford, Texas 77477, and with an address at 8903 Bonhomme Road,
Houston, Texas 77074; Export Materials, Inc., 3727 Greenbriar Drive,
No. 108, Stafford, Texas 77477, and Thane-Coat International, Ltd.,
Suite C, Regent Centre, Explorers Way, P.O. Box F-40775, Freeport,
The Bahamas, Respondents.
Order Temporarily Denying Export Privileges
The Office of Export Enforcement, Bureau of Export Administration,
United States Department of Commerce (hereinafter ``BXA''), pursuant to
the provisions of Section 766.24 of the Export Administration
Regulations (61 Federal Regulation 12734-13041, March 25, 1996, to be
codified at 15 CFR Parts 730-774) (hereinafter the ``Regulations''),
issued pursuant to the Export Administration Act of 1979, as amended
(50 U.S.C.A. app. Sec. Sec. 2401-2420 (1991 & Supp. 1997) (hereinafter
the ``Act''),\1\ has asked the Acting Assistant Secretary for Export
Enforcement to issue an order temporarily denying all United States
export privileges to Thane-Coat, Inc.; Jerry Vernon Ford, president,
Thane-Coat, Inc.; Preston John Engebretson, vice-president, Thane-Coat,
Inc.; Export Materials, Inc.; and Thane-Coat International, Ltd.
(hereinafter collectively referred to as ``respondents'').
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\1\ The Act expired on August 20, 1997. Executive Order 12924 (3
CFR 1994 Comp. 917 (1995)), extended by Presidential Notices of
August 15, 1995 (3 CFR, 1995 Comp. 501 (1996)) and August 14, 1996
(61 Federal Regulations 42527, August 15, 1996), continued the
Regulations in effect under the International Emergency Economic
Powers Act (currently codified at 50 U.S.C.A. Sec. Sec. 1701-1706
(1991 & Supp. 1997)).
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In its request, BXA states that, as a result of an ongoing
investigation, it has reason to believe that, during the period from
approximately June 1994 through approximately July 1996, Thane-Coat,
Inc., through Ford and Engebretson, and using its affiliated companies,
Thane-Coat International, Ltd. and Export Materials, Inc., made
approximately 100 shipments of U.S.-origin pipe coating materials,
machines, and part to the Dong Ah Consortium in Benghazi, Libya. These
items were for use in coating the internal surface of prestressed
concrete cylinder pipe for the Government of Libya's Great Man-Made
River Project. BXA's investigation gives it reason to believe that the
respondents employed a scheme to export U.S.-origin products from the
United States, through the United Kingdom or Italy, to Libya, a country
subject to a comprehensive economic sanctions program, without the
authorizations required under U.S. law and regulations, including the
Regulations.
In light of these events, BXA believes that the violations
respondents are suspected of having committed were significant,
deliberate and covert and are likely to occur again unless a temporary
denial order naming respondents is issued. In addition, BXA believes
that a temporary denial order is necessary to give notice to companies
in the United States and abroad that they should cease dealing with
respondents in export-related transactions involving U.S.-origin goods.
Based on the showing made by BXA, I find that an order temporarily
denying the export privileges of each respondent is necessary in the
public interest to prevent an imminent violation of the Act and the
Regulations and to give notice to companies in the United States and
abroad to cease dealing with respondents in items subject to the Act
and the Regulations, in order to reduce the substantial likelihood that
respondents will continue to engage in activities that are in violation
of the Act and the Regulations. This order is issued on an ex parte
basis without a hearing, based on BXA's showing that expedited action
is required.
Accordingly, it is therefore ordered: First, that Thane-Coat, Inc.
12725 Royal Drive, Stafford, Texas 77477, and all of its successors or
assigns, and officers, representatives, agents, and employees when
acting on its behalf; Jerry Vernon Ford, president, Thane-Coat, Inc.,
12725 Royal Drive, Stafford, Texas 77477, and with an address at 7707
Augustine Drive, Houston, Texas 77036; Preston John Engebretson, vice-
president, Thane-Coat, Inc. 12725 Royal Drive, Stafford, Texas 77477,
and with an address at 8903 Bonhomme Road, Houston, Texas 77074; Export
Materials, Inc., 3727 Greenbriar Drive, No. 108, Stafford, Texas 77477,
and all of its successors or assigns, and officers, representatives,
agents, and employees when acting on its behalf; and Thane-Coat
International, Ltd., Suite C, Regent Centre, Exployers Way, P.O. Box F-
40775, Freeport, The Banamas, and all of its successors or assigns, and
officers, representatives, agents, and employees when acting on its
behalf, 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. 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 any of the denied persons
any item subject to the Regulations;
B. Take any action that facilitates the acquisition or attempted
acquisition by any of the denied persons of the
[[Page 26472]]
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 any of the denied persons 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 any of the denied persons of any item
subject to the Regulations that has been exported from the United
States;
D. Obtain from any of the denied persons 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 any of the denied
persons, or service any item, of whatever origin, that is owned,
possessed or controlled by any of the denied persons 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 any of the denied persons 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 foreign-produced
direct product of U.S.-origin technology.
Fifth, that, in accordance with the provisions of Section 766.24(e)
of the Regulations, any respondent may, at any time, appeal this Order
by filing with the Office of the Administrative Law Judge, U.S. Coast
Guard ALJ Docketing Center, 40 South Gay Street, Baltimore, Maryland
21202-4022, a full written statement in support of the appeal.
Sixth, that this Order is effective immediately and shall remain in
effect for 180 days.
Seventh, that, in accordance with the provisions of Section
766.24(d) of the Regulations, BXA may seek renewal of this Order by
filing a written request not later than 20 days before the expiration
date. Any respondent may oppose a request to renew this Order by filing
a written submission with the Assistant Secretary for Export
Enforcement, which must be received not later than seven days before
the expiration date of this Order.
A copy of this Order shall be served on each respondent. This Order
shall be published in the Federal Register.
Dated: May 5, 1997.
Frank Deliberti,
Acting Assistant Secretary for Export Enforcement.
[FR Doc. 97-12573 Filed 5-13-97; 8:45 am]
BILLING CODE 3510-DT-M