[Federal Register: February 8, 2008 (Volume 73, Number 27)]
[Notices]
[Page 7525-7526]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr08fe08-34]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
Action Affecting Export Privileges: AR-AM Medical Services LLC;
In the Matter of AR-AM Medical Services LLC; Case No. 06-08
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 at 15 CFR Parts 730-774 (2007) (the
``Regulations''), against AR-AM Medical Services LLC (``AR-AM''), a
domestic concern, based on allegations set forth in the Proposed
Charging Letter, dated April 17, 2006, that alleged that AR-AM
committed three violations of the Regulations;
---------------------------------------------------------------------------
\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 International
Emergency Economic Powers Act (50 U.S.C. 1701-1706 (2000))
(``IEEPA''). On November 13, 2000, the Act was reauthorized by Pub.
L. 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.
---------------------------------------------------------------------------
* * * * *
Specifically, the charges are:
1. Three Violations of 15 CFR 760.2(d)--Furnishing Information
about Business Relationships With Boycotted Countries or Blacklisted
Persons: During the years 2001 and 2002, AR-AM engaged in
transaction(s) involving the sale and/or transfer of goods or services
(including information) from the United States to Syria. In connection
with these activities, on three occasions, AR-AM, 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 AR-AM 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 $7,200 is assessed against AR-AM. 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, AR-AM 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, AR-AM Medical Services LLC (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, or otherwise servicing in any way,
any transaction involving any item exported or to be exported fro 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;
[[Page 7526]]
B. Take any action that facilitates the acquisition or attempted
acquisition by 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 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
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 the 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 or
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 the U.S.-origin technology.
Sixth, the Proposed Charging Letter, the Settlement Agreement and
this Order shall be made available to the public, and 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. 08-522 Filed 2-7-08; 8:45 am]
BILLING CODE 3510-DT-M