[Federal Register Volume 70, Number 187 (Wednesday, September 28, 2005)]
[Notices]
[Pages 56630-56631]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-19314]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
Action Affecting Export Privileges; John H. Carrington; In the
Matter of: John H. Carrington, 2316 Wakefield Plantation Drive,
Raleigh, NC 27614, Respondent; Order Relating to John H. Carrington
The Bureau of Industry and Security, U.S. Department of Commerce
(``BIS'') has notified John H. Carrington (``Carrington'') of its
intention to initiate an administrative proceeding against him pursuant
to Section 766.3 of the Export Administration Regulations (currently
codified at 15 CFR parts 730-774 (2005)) (``Regulations''),\1\ and
Section 13(c) of the Export Administration Act of 1979, as amended (50
U.S.C. app. Sec. Sec. 2401-2420 (2000)) (``Act''),\2\ by issuing a
proposed charging letter issued to Carrington that alleged that he
committed 181 violations of the Regulations. Specifically, the charges
are:
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\1\ The charged violations occurred from 1999 to 2004. The
Regulations governing the violations at issue are found in the 1999
to 2004 versions of the Code of Federal Regulations (15 CFR parts
730-774 (1999-2004)). The 2005 Regulations establish the procedures
that apply to this matter.
\2\ 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 issued on 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. Sec. Sec.
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 2, 2005, (70 FR
45273 (August 5, 2005)), has continued the Regulations in effect
under IEEPA.
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1. One Violation of 15 CFR 764.2(d)--Conspiracy to Violate the
Regulations: Beginning in or about September 2000 and continuing
through in or about March 2004, Carrington conspired and acted in
concert with others, known and unknown, to do or bring about an act
that violates the Regulations. The purpose of the conspiracy was to
export fingerprint imaging equipment and fingerprint ink and powder,
items subject to the Regulations, from the United States to the Hong
Kong Special Administrative Region (``Hong Kong'') through Italy
without the U.S. Department of Commerce licenses required by Section
742.7 of the Regulations. Fingerprint imaging equipment is classified
under Export Control Classification Number (``ECCN'') 3A981, and
fingerprint ink and powder is classified under ECCN 1A985. Carrington
and its co-conspirators took acts in furtherance of the conspiracy by
exporting fingerprint imaging equipment and fingerprint ink and powder
from the United States to Hong Kong through Italy without the required
license.
2. 25 Violations of 15 CFR 764.2(a)--Exporting Fingerprint Imaging
Equipment without the Required Licenses: On 25 occasions, between on or
about September 29, 2000 and on or about March 31, 2004, Carrington
engaged in conduct prohibited by the Regulations by exporting or
causing to be exported fingerprint imaging equipment, items classified
under ECCN 3A981, to Hong Kong through Italy without the licenses
required by Section 742.7 of the Regulations.
3. 25 Violations of 15 CFR 764.2(e)--Selling Fingerprint Imaging
Equipment with Knowledge of a Violation of the Regulations: On the same
25 occasions described above, Carrington sold fingerprint imaging
equipment, items classified under ECCN 3A981, to Hong Kong through
Italy with knowledge that a violation of the Regulations was about to
occur in connection with the items. At all times relevant hereto,
Carrington knew or should have known that a Department of Commerce
license was required to export the fingerprint imaging equipment and
Carrington sold the items knowing that the required license has not or
would not be obtained.
4. 25 Violations of 15 CFR 764.2(h)--Taking Actions with Intent to
Evade the Regulations: On the same 25 occasions described above,
Carrington took actions with the intention of evading the Regulations.
Specifically, Carrington sold and shipped fingerprint imaging equipment
to a distributor in Italy for transshipment to Hong Kong with the
intent of evading the license requirements of Section 742.7 of the
Regulations. This was done to conceal the ultimate destination of the
items.
5. 25 Violations of 15 CFR 764.2(g)--False Statements of Fact on
Export Control Documents: On the same 25 occasions described above,
Carrington filed or caused to be filed Shippers' Export Declarations
(``SEDs''), export control documents as defined in Section 772.1 of the
Regulations, with the U.S. Government through the Automated Export
System (``AES'') stating that no license was required for the exports.
These statements were false because, as described in charges 2-26,
licenses were required for the export of fingerprint imaging equipment
to Hong Kong.
6. Nine Violations of 15 CFR 764.2(a)--Exporting Fingerprint Ink
and Powder without the Required Licenses: On nine occasions, between on
or about April 14, 2001 and on or about March 2, 2004, Carrington
engaged in conduct prohibited by the Regulations by exporting or
causing to be exported fingerprint ink and powder, items classified
under ECCN 1A985, to Hong Kong through Italy without the licenses
required by Section 742.7 of the Regulations.
7. Nine Violations of 15 CFR 764.2(e)--Selling Fingerprint Ink and
Powder with Knowledge of a Violation of the Regulations: On the same
nine occasions described above, Carrington sold fingerprint ink and
powder, items classified under ECCN 1A985, to Hong Kong through Italy
with knowledge that a violation of the Regulations was about to occur
in connection with the items. At all times relevant hereto, Carrington
knew or should have known that a Department of Commerce license was
required to export the fingerprint ink and powder and Carrington sold
the items knowing that the required license had not or would not be
obtained.
8. Nine Violations of 15 CFR 764.2(h)--Taking Actions with Intent
to Evade the Regulations: On the same nine occasions described above,
Carrington took actions with the intention of evading the Regulations.
Specifically, Carrington sold and shipped fingerprint ink and powder to
a distributor in Italy for transshipment to Hong Kong with the intent
of evading the license requirements of Section 742.7 of the
Regulations. This was done to conceal the ultimate destination of the
items.
9. One Violation of 15 CFR 764.2(g)--False Statement of Fact on
Export Control Document: On one of the nine occasions described above,
Carrington filed or caused to be filed a SED, an export control
document as defined in Section 772.1 of the Regulations, with the U.S.
Government through the Automated Export System (``AES'') stating that
no license was required for the export. This statement was false
because a license was required for the export of fingerprint ink and
powder to Hong Kong.
10. 20 Violations of 15 CFR 764.2(a)--Exporting Fingerprint Imaging
Equipment and Fingerprint Powder without the Required License: On 20
occasions, between on or about November 8, 2000 and on or about January
20, 2004, Carrington engaged in conduct prohibited by the Regulations
by exporting or causing to be exported fingerprint imaging equipment or
fingerprint powder, items classified under ECCNs 3A981 or 1A985
respectively, to Hong Kong without the
[[Page 56631]]
licenses required by Section 742.7 of the Regulations.
11. 20 Violations of 15 CFR 764.2(e)--Selling Fingerprint Imaging
Equipment and Fingerprint Powder without the Required License: On the
same 20 occasions described above, Carrington sold fingerprint imaging
equipment or fingerprint powder, items classified under ECCNs 3A981 or
1A985 respectively, to Hong Kong with knowledge that a violation of the
Regulations was about to occur in connection with the items. At all
times relevant hereto, Carrington knew or should have known that a
Department of Commerce license was required to export the fingerprint
imaging equipment and sold the items knowing that the required license
had not or would not be obtained.
12. 12 Violations of 15 CFR 764.2(g)--False Statements of Fact on
Export Control Documents: On 12 of the 20 occasions described above,
Carrington filed or caused to be filed SEDs, export control documents
as defined in Section 772.1 of the Regulations, with the U.S.
Government through the Automated Export System (``AES'') stating that
no license was required for the export. These statements were false
because, as described in charges 130-149, licenses were required for
the export of fingerprint imaging equipment to Hong Kong.
Whereas, BIS and Carrington have entered into a Settlement
Agreement pursuant to Section 766.18(a) of the Regulations whereby they
agreed to settle this matter in accordance with the terms and
conditions set forth therein, and
Whereas, I have approved the terms of such Settlement Agreement;
It Is Therefore Ordered:
First, for a period five years from the date of entry of the Order,
John H. Carrington, 2316 Wakefield Plantation Drive, Raleigh, North
Carolina 27614, and when acting for or on behalf of Carrington, his
representatives, agents, assigns, or employees (``Denied Person'') may
not participate, directly or indirectly, 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 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.
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 Carrington 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 the
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 the foreign-produced
direct product of U.S.-origin technology.
Fifth, that the proposed charging letter, the Settlement Agreement,
and this Order shall be made available to the public.
Sixth, that this Order shall be served on the Denied Person and
shall be published in the Federal Register.
This Order, which constitutes the final agency action in this
matter, is effective upon publication in the Federal Register.
Entered this 22nd day of September 2005.
Wendy L. Wysong,
Deputy Assistant Secretary of Commerce for Export Enforcement.
[FR Doc. 05-19314 Filed 9-29-05; 8:45 am]
BILLING CODE 3510-DT-M