[Federal Register: February 8, 2008 (Volume 73, Number 27)]
[Notices]
[Page 7526-7527]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr08fe08-35]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
Action Affecting Export Privileges: DMA Med-Chem Corporation; In
the Matter of DMA Med-Chem Corporation, Case No. 02-10
Order
The Office of Antiboycott Compliance, Bureau of Industry and
Security, U.S. Department of Commerce (``BIS''), having determined to
initiate an administrative proceeding pursuant to Section 11(c) of the
Export Administration Act of 1979, as amended (50 U.S.C. 2401-2420
(2000)) (the ``Act'') \1\ and the Export Administration Regulations
(currently codified as 15 CFR Parts 730-774 (2007)) (the
``Regulations''), against DMA Med-Chem Corporation (``DMA''), a
domestic concern, based on allegations set forth in the Proposed
Charging Letter, dated April 17, 2006, that alleged that DMA committed
one violation of the Regulations;
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\1\ From August 21, 1994 through November 12, 2000, the Act was
in lapse. During that period, the President, through Executive Order
12924, which had been extended by successive Presidential Notices,
the last of which was August 3, 2000 (3 CFR, 2000 Comp. 397 (2001)),
continued the Regulations in effect under the Internal Emergency
Economic Powers Act (50 U.S.C. 1701-1706 (2000)) (IEEPA). On
November 13, 2000, the Act was reauthorized by Pub. L. No. 106-508
(114 Stat. 2360 (2000)) and remained in effect through August 20,
2001. Since August 21, 2001, the Act has been in lapse. Executive
Order 13222 of August 17, 2001 (3 CFR 2001 Comp 783 (2002)), which
has been extended by successive Presidential Notices, the most
recent of which was August 15, 2007 (72 FR 46137 (August 16, 2007)),
continues the Regulations in effect under IEEPA.
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Specifically, the charge is:
1. One Violation of 15 CFR 760.2(d)--Furnishing Information about
Business Relationships with Boycotted Countries or Blacklisted Persons:
During the year 2001, DMA engaged in a transaction involving the sale
and/or transfer of goods or services (including information) from the
United States to Syria. In connection with these activities, on one
occasion, DMA, with intent to comply with, further or support an
unsanctioned foreign boycott, furnished information concerning its or
another person's business relationships with or in a boycotted country,
an activity prohibited by Section 760.2(d) of the Regulations, and not
excepted.
BIS and DMA having entered into a Settlement Agreement pursuant to
Section 766.18(a) of the Regulations whereby the parties have agreed to
settle this matter in accordance with the terms and conditions set
forth therein and the terms of the Settlement Agreement having been
approved by me;
It is therefore ordered that:
First, a civil penalty of $2,400 is assessed against DMA. Payment
shall be suspended for a period of two years from the date of entry of
this Order and thereafter shall be waived, provided that, during the
period of suspension, DMA has committed no violation of the Act and
Regulations or any order issued thereunder.
Second, for a period of two years from the date of entry of this
Order, DMA Med-Chem Corporation (Great Neck, New York) (``Denied
Person'') may not participate, directly or indirectly, in any way in
any transaction involving any commodity, software or technology
(collectively, ``item'') exported or to be exported from the United
States to Bahrain, Iraq, Kuwait, Lebanon, Libya, Oman, Qatar, Saudi
Arabia, Syria, the United Arab Emirates or the Republic of Yemen
(collectively, the ``Territory'') that is subject to the Regulations,
or in any other activity relating to the Territory 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, relating to the Territory.
B. Carrying on negotiations concerning, or ordering, buying,
receiving, using, selling, delivering, storing, disposing of,
forwarding, transporting, financing, other otherwise servicing in any
way, any transaction involving any item exported or to be exported from
the United States to the Territory that is subject to the Regulations,
or in any other activity relating to the Territory 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 to the Territory that
is subject to the Regulations, or in any other activity relating to the
Territory subject to the Regulations.
Third, 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 from the United States to the Territory;
B. Take any action that facilitates the acquisition or attempted
acquisition by
[[Page 7527]]
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 to the Territory, 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 to the
Territory;
D. Obtain from the Denied Person in the Untied 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
the Territory; 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
the Territory, 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 to the Territory. For purposes of this
paragraph, service means installation, maintenance, repair,
modification or testing.
Fourth, after notice and opportunity for comment as provided in
Section 766.23 of the Regulations, any person, firm, corporation or
business organization related to the Denied person 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.
Fifth, 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.
Sixth, the Proposed Charging Letter, the Settlement Agreement and
this order shall be made available to the public, and a a copy of this
Order shall be served on the Denied Person and on BIS, and shall be
published in the Federal Register.
This Order, which constitutes the final agency action in this
matter, is effective immediately.
Entered this 14th day of January, 2008.
Darryl W. Jackson,
Assistant Secretary of Commerce for Export Enforcement.
[FR Doc. 08-521 Filed 2-7-08; 8:45 am]
BILLING CODE 3510-DT-M