[Federal Register Volume 63, Number 90 (Monday, May 11, 1998)]
[Notices]
[Pages 25817-25819]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-12421]
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DEPARTMENT OF COMMERCE
Bureau of Export Administration
Action Affecting Export Privileges; Thane-Coat, Inc, Jerry Vernon
Ford and Preston John Engebretson
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, and 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, Respondents.
Decision and Order on Renewal of Temporary Denial Order
On October 31, 1997, Acting Assistant Secretary for Export
Enforcement Frank W. Deliberti issued a Decision and Order on Renewal
of Temporary Denial Order (hereinafter ``Order'' or ``TDO''), renewing
for 180 days a May 5, 1997 Order naming 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. (Thane-Coat, Inc., Ford, and Engebretson
hereinafter referred to collectively as the ``Respondents'' and Export
Materials, Inc. and Thane-Coat, International, Ltd., the ``affiliated
companies''), as persons temporarily denied all U.S. export privileges
62 FR 60063-60065 (November 6, 1997). The Order will expire on April
29, 1998.
On April 17, 1998, pursuant to Section 766.24 of the Export
Administration Regulations (15 C.F.R. Parts 730-774 (1997))
(hereinafter the ``Regulations''), issued pursuant to the Export
Administration Act of 1979, as amended (50 U.S.C.A. app. Secs. 2401-
2420 (1991 & Supp. 1998)) (hereinafter the ``Act''),\1\ the Office of
Export Enforcement, Bureau of Export Administration, United States
Department of Commerce (hereinafter ``BXA''), requested that the
Assistant Secretary for Export Enforcement renew the Order against
Thane-Coat, Inc., Jerry Vernon Ford, and Preston John Engebretson for
180 days, pursuant to terms agreed to by and between the parties.
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\1\ The Act expired on August 20, 1994. Executive Order 12924 (3
C.F.R., 1994 Comp. 917 (1995)), extended by Presidential Notices of
August 15, 1995 (3 C.F.R., 1995 Comp. 501 (1996)), August 14, 1996
(3 C.F.R., 1996 Comp. 298 (1997)), and August 13, 1997 (62 FR 43629,
August 15, 1997), continued the Regulations in effective under the
International Emergency Economic Powers Act (currently codified at
50 U.S.C.A. Secs. 1701-1706 (1991 & Supp. 1998)).
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In its request, BXA stated that, as a result of an ongoing
investigation, it had 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 parts 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.\2\ Moreover, BXA's investigation gave it reason to
believe that the Respondents and the affiliated companies employed a
scheme to export U.S.-origin products from the United States, through
the United Kingdom, to Libya, a country subject to a comprehensive
economic sanctions program, without the authorizations required under
U.S. law, including the Regulations. The approximate value of the 100
shipments at issue was $35 million. In addition, the Respondents and
the affiliated companies undertook several significant and affirmative
[[Page 25818]]
actions in connection with the solicitation of business on another
phase of the Great Man-Made River Project.
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\2\ BXA understands that the ultimate goal of this project is to
bring fresh water from wells drilled in southeast and southwest
Libya through prestressed concrete cylinder pipe to the coastal
cities of Libya. This multibillion dollar, multiphase engineering
endeavor is being performed by the Dong Ah Construction Company of
Seoul, South Korea.
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BXA has stated that it believes that the matters under
investigation and the information obtained to date in that
investigation support renewal of the TDO issued against the
Respondents.\3\ In that regard, BXA and the Respondents reached an
agreement, whereby BXA has sought a renewal of the TDO in a ``non-
standard'' format, denying all of the Respondents' U.S. export
privileges to the United Kingdom, The Bahamas, Libya, Cuba, Iraq, North
Korea, Iran, and any other country or countries that may be made
subject in the future to a general trade embargo by proper legal
authority. In return, the Respondents agreed that, among other
conditions, at least 14 days in advance of any export that any of the
Respondents intends to make of any item from the United States to any
destination world-wide, the Respondents will provide to BXA's Dallas
Field Office (i) notice of the intended export, (ii) copies of all
documents reasonably related to the subject transaction, including, but
not limited to, the commercial invoice and bill of lading, and (iii)
the opportunity, during the 14-day notice period, to inspect physically
the item at issue to ensure that the intended shipment is in compliance
with the Export Administration Act, the Export Administration
Regulations, or any order issued thereunder.
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\3\ On April 9, 1998, BXA requested that the Assistant Secretary
for Export Enforcement renew the October 31, 1997 TDO against Thane-
Coat, International, Ltd. and Export Materials, Inc.
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Based on BXA's showing, I find that it is appropriate to renew the
order temporarily denying the export privileges of Thane-Coat, Inc.,
Jerry Vernon Ford, and Preston John Engebretson in a ``non-standard''
format, incorporating the terms agreed to by and between the parties. I
find that such renewal is necessary in the public interest to prevent
an imminent violation of the Regulations and to give notice to
companies in the United States and abroad to cease dealing with these
persons in any commodity, software, or technology subject to the
Regulations and exported or to be exported to the United Kingdom, the
Bahamas, Libya, Cuba, Iraq, North Korea, Iran, and any other country or
countries that may be made subject in the future to a general trade
embargo by proper legal authority, or in any other activity subject to
the Regulations with respect to these specific countries. Moreover, I
find such renewal is in the public interest in order to reduce the
substantial likelihood that Thane-Coat, Inc., Ford, and Engebretson
will engage in activities which are in violation of the Regulations.
Accordingly, It is therefore ordered:
First, that Thane-Coat, Inc., and all of its successors or assigns,
officers, representatives, agents, and employees when acting on its
behalf, Jerry Vernon Ford, and all of his successors, or assigns,
representatives, agents and employees when acting on his behalf; and
Preston John Engebretson, and all of his successors, or assigns,
representatives, agents, and employees when acting on his behalf (all
of the foregoing parties hereinafter collectively referred to as the
``denied persons''), may not, directly or indirectly, participate in
any way in any transaction involving any commodity, software or
technology (hereinafter collectively referred to as ``item'') subject
to the Export Administration regulations (hereinafter the
``Regulations'') and exported or to be exported from the United States
to the United Kingdom, the Bahamas, Libya, Cuba, Iraq, North Korea, or
Iran, or to any other country or countries that may be made subject in
the future to a general trade embargo pursuant to proper legal
authority (hereinafter the ``Covered Countries''), or in any other
activity subject to the Regulations with respect to the Covered
Countries, 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 that is subject to the Regulations
and that is exported or to be exported from the United States to any of
the Covered Countries, 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 to any of the Covered
Countries 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 to any of the Covered Countries;
B. Take any action that facilitates the acquisition, or attempted
acquisition by any of the denied persons of the ownership, possession,
or control of any item subject to the Regulations that has been or will
be exported from the United States to any of the Covered Countries,
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 any of the denied persons of any item
subject to the Regulations that has been exported from the United
States to any of the Covered Countries;
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
to any of the Covered Countries; 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 to
any of the Covered Countries, 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 to any of the Covered Countries. For purposes of this paragraph,
servicing means installation, maintenance, repair, modification or
testing.
Third, that, at least 14 days in advance of any export that any of
the denied persons intends to make of any item from the United States
to any destination world-wide, the denied person will provide to BXA's
Dallas Field Office (i) notice of the intended export, (ii) copies of
all documents reasonably related to the subject transaction, including,
but not limited to, the commercial invoice and bill of lading, and
(iii) the opportunity, during the 14-day notice period, to inspect
physically the item at issue to ensure that the intended shipment is in
compliance with the Export Administration Act, the Export
Administration Regulations, or any order issued thereunder.
Fourth, 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.
[[Page 25819]]
Fifth, 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.
This Order is effective immediately and shall remain in effect for
180 days.
A copy of this Order shall be served on each Respondent and shall
be published in the Federal Register.
Entered this 29th day of April, 1998.
F. Amanda DeBusk,
Assistant Secretary for Export Enforcement.
Certificate of Service
I hereby certify that, on April 30, 1998, I caused the foregoing
Decision and Order on Renewal of Temporary Denial Order to be mailed
first-class, postage prepaid to:
Thane-Coat, Inc. 12725 Royal Drive Stafford, Texas 77477,
Jerry Vernon Ford President Thane-Coat, Inc. 12725 Royal Drive
Stafford, Texas 77477,
and
Preston John Engebretson Vice-President Thane-Coat, Inc. 12725 Royal
Drive Stafford, Texas 77477.
Lucinda G. Maruca,
Secretary, Office of the Assistant Secretary for Export Enforcement.
[FR Doc. 98-12421 Filed 5-8-98; 8:45 am]
BILLING CODE 3510-DT-M