[Federal Register: December 11, 2002 (Volume 67, Number 238)]
[Notices]
[Page 76159-76160]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr11de02-21]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
[Docket No. 01-BXA-21]
Action Affecting Export Privileges; Alexander Zisman
In the Matter of: Alexander Zisman, 2 Flotskaya, 81,
Moscow, Russia, 125565, Respondent.
[[Page 76160]]
Order
The Bureau of Industry and Security, United States Department of
Commerce (``BIS''), having initiated an administrative proceeding
against Alexander Zisman, 2 Flotskaya, 81, Moscow, Russia,
125565 (``Zisman''), pursuant to section 13(c) of the Export
Administration Act of 1979, as amended (50 U.S.C. app. Sections 2401-
2420 (2000)) (``ACT''),\1\ and the Export Administration Regulations
(currently codified at 15 CFR parts 730-774 (2002))
(``Regulations''),\2\ based on allegations that Zisman violated
sections 764.2(b) and 764.2(e) of the Regulations; specifically, that
Zisman arranged for the transportation of computers from Germany to the
Netherlands, and from the Netherlands to the Russian Federal Nuclear
Center, Russian Research Institute of Experimental Physics (Arzamas-
16), Russia, without obtaining the necessary license for the shipment
and that Zisman knew or had reason to know that no such license was
obtained; and
---------------------------------------------------------------------------
\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 and it
remained in effect through August 20, 2001. Since August 21, 2001,
the Act has been in lapse and the President, through Executive Order
13222 of August 17, 2001 (3 CFR 2001 Comp. 783 (2002)), as extended
by the Notice of August 14, 2002 (67 FR 53721 (August 16, 2002)),
has continued the Regulations in effect under IEEPA.
\2\ The Regulations governing the violations at issue are found
in the 1996 and 1997 versions of the Code of Federal Regulations,
(15 CFR Parts 768-799 (1996), as amended (61 FR 12714, March 25,
1996) (hereinafter ``the former Regulations'')), and 15 CFR parts
768-799 (1997)). The March 25, 1996 Federal Register publication
redesignated, but did not republish, the then-existing Regulations
as 15 CFR parts 768A-799A. As an interim measure that was part of
the transition to newly restructured and reorganized Regulations,
the March 25, 1996 Federal Register publication also restructured
and reorganized the Regulations, designating them as an interim rule
at 15 CFR parts 730-774, effective April 24, 1996. The former
Regulations and the Regulations define the various violations that
BIS alleges occurred. The Regulations establish the procedures that
apply to this matter.
---------------------------------------------------------------------------
BIS and Zisman having entered into a Settlement Agreement pursuant
to section 766.18(b) of the Regulations whereby they 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:
First, that a civil penalty of $20,000 is assessed against Zisman,
which shall be paid to the U.S. Department of Commerce within 30 days
from the date of entry of this Order. Payment shall be made in the
manner specified in the attached instructions.
Second, that, pursuant to the Debt Collection Act of 1982, as
amended (31 U.S.C. 3701-3720E (2000)), the civil penalty owed under
this Order accrues interest as more fully described in the attached
Notice, and, if payment is not made by the due date specified herein,
Zisman shall be assessed, in addition to the full amount of the civil
penalty and interest, a penalty charge and an administrative charge, as
more fully described in the attached Notice.
Third, that for a period of five years from the date of this Order,
Zisman, his successors or assigns, and when acting for or on behalf of
Zisman, his officers, representatives, agents or employees (``denied
person'') 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 or 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.
Fourth, that 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;
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, 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;
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; 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 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. For purposes of this paragraph, servicing means
installation, maintenance, repair, modification or testing.
Fifth, 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 Zisman 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.
Sixth, 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.
Seventh, that a copy of this Order shall be delivered to the United
States Coast Guard ALJ Docketing Center, 40 Gay Street, Baltimore,
Maryland 21202-4022, notifying that office that this case is withdrawn
from adjudication, as provided by section 766.18 of the Regulations.
Eighth, that the charging letter, the Settlement Agreement, and
this Order shall be made available to the public.
This Order, which constitutes the final agency action in this
matter, is effective immediately.
Entered this 4th day of December, 2002.
Lisa A. Prager,
Acting Assistant Secretary of Commerce for Export Enforcement.
[FR Doc. 02-31169 Filed 12-10-02; 8:45 am]