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Federal Register / Vol. 72, No.

103 / Wednesday, May 30, 2007 / Notices 29965

Charge 2 (15 CFR 764.2(h)—Engaging in a Administration Regulations (currently to Iran. In taking these actions, Winter
Transaction With Intent To Evade the codified at 15 CFR parts 730–774) Aircraft committed one violation of
Regulations) (2007)) (‘‘Regulations’’) 1, issued under Section 764.2(h) of the Regulations.
Between on or about October 19, 2000, and the Export Administration Act of 1979, In accordance with Section
on or about November 22, 2000, Diaz as amended (50 U.S.C. app. 2401–2420 766.3(b)(1) of the Regulations, on
Sanchez took actions with intent to evade the (2000)) (the ‘‘Act’’).2 Specifically, the September 12, 2005, BIS mailed the
Regulations. Specifically, on or about charging letter alleged that between on notice of issuance of the charging letter
October 19, 2000, Diaz Sanchez, acting by registered mail to Winter Aircraft at
or about November 1,2000, and on or
through his company Winter Aircraft,
about November 17, 2000, Winter its last known address. The notice of
acquired aircraft parts, items subject to the
Regulations and classified under ECCN Aircraft took actions with intent to issuance of a charging letter was
9A991, from U.S. suppliers with intent to evade the Regulations. Specifically, on received by Winter Aircraft on or about
transship such items to Iran. Winter Aircraft or about November 1, 2000, Winter September 21, 2005. The file establishes
failed to inform the U.S. suppliers of the Aircraft acquired aircraft parts, items that BIS and Winter Aircraft engaged in
ultimate destination of the items and, as subject to the Regulations and classified several months of correspondence
such, no license was obtained from the U.S. under Export Control Classification regarding the matter, and that BIS
Government for this transaction, as was Number (‘‘ECCN’’) 9A991, from U.S. counsel advised Winter Aircraft to file
required by Section 746.7 of the Regulations. suppliers with intent to transship such an answer to the charging letter. To
On or about November 22, 2000, Winter date, however, Winter Aircraft has not
items to Iran. Winter Aircraft failed to
Aircraft transshipped the aircraft parts
inform the U.S. suppliers of the ultimate filed an answer to the charging letter
subject to the EAR to Iran with a substantial
markup in price. In taking these actions, Diaz destination of the items and, as such, no with the ALJ, as required by the
Sanchez committed one violation of Section license was obtained from the U.S. Regulations.
764.2(h) of the Regulations. Government for this transaction, as was In accordance with Section 766.7 of
required by Section 746.7 of the the Regulations, BIS filed a Motion for
D. Penalty Recommendation Regulations. On or about November 17, Default Order on March 20, 2007. This
[REDACTED SECTION] 2000, Winter Aircraft transshipped the Motion for Default Order recommended
aircraft parts subject to the Regulations that Winter Aircraft be denied export
E. Conclusion to Iran. In taking these actions, Winter privileges under the Regulations for a
Accordingly, I am referring this Aircraft committed one violation of period of ten years. Under Section
Recommended Decision and Order to Section 764.2(h) of the Regulations. 766.7(a) of the Regulations, ‘‘[fJailure of
the Under Secretary of Commerce for The charging letter further alleged the respondent to file an answer within
Industry and Security for review and that between on or about October 19, the time provided constitutes a waiver
final action for the agency, without 2000, and on or about November 22, of the respondent’s right to appear,’’ and
further notice to the Respondent, as 2000, Winter Aircraft took actions with ‘‘on BIS’s motion and without further
provided in § 766.7 of the Regulations. intent to evade the Regulations. notice to the respondent, [the ALJ] shall
Within 30 days after receipt of this Specifically, on or about October 19, find the facts to be as alleged in the
Recommended Decision and Order, the 2000, Winter Aircraft acquired aircraft charging letter.’’ Based upon the record
Under Secretary shall issue a written parts, items subject to the Regulations before him, the ALJ found Winter
order affirming, modifying, or vacating and classified under ECCN 9A991, from Aircraft in default.
the Recommended Decision and Order. U.S. suppliers with intent to transship On May 1, 2007, ALJ issued a
See 15 CFR 766.22(c). such items to Iran. Winter Aircraft failed Recommended Decision and Order in
to inform the U.S. suppliers of the which he found that Winter Aircraft
Dated: May 1, 2007.
ultimate destination of the items and, as committed two violations of Section
The Honorable Joseph N. Ingolia, 764.2(h). The ALJ also recommended
Chief Administrative Law Judge. such, no license was obtained from the
U.S. Government for this transaction, as the penalty of denial of Winter Aircraft’s
[FR Doc. 07–2677 Filed 5–29–07; 8:45 a.m.] was required by Section 746.7 of the export privileges for ten years.
BILLING CODE 3510–DT–M Regulations. On or about November 22, The ALJ’s Recommended Decision
2000, Winter Aircraft transshipped the and Order, together with the entire
aircraft parts subject to the Regulations record in this case, has been referred to
DEPARTMENT OF COMMERCE me for final action under Section 766.22
1 The violations charged occurred in 2000. The of the Regulations. I find that the record
Bureau of Industry and Security Regulations governing the violations at issue are supports the ALJ’s findings of fact and
found in the 2000 version of the Code of Federal conclusions of law. I also find that the
[Docket No. 05–BIS–15] Regulations (15 CFR parts 730–774 (2000)). The penalty recommended by the ALJ is
2007 Regulations establish the procedures that
In the Matter of: Winter Aircraft apply to this matter. appropriate, given the nature of the
Products SA; a/k/a Ruf S. Lopez SA, 2 From August 21, 1994, through November 12, violations and the facts of this case, and
C/Ferrocarril 41, 1 DCHA, 28045 2000, the Act was in lapse. During that period, the the importance of preventing future
President, through Executive Order 12924, which unauthorized exports.
Madrid, Spain; Respondent; Final had been extended by successive Presidential
Decision and Order Notices, the last of which was August 3, 2000 (3
Based on my review of the entire
CFR, 2000 Comp. 397 (2001)), continued the record, I affirm the findings of fact and
This matter is before me upon a Regulations in effect under the International conclusions of law in the ALJ’s
Recommended Decision and Order of Emergency Economic Powers Act (50 U.S.C. 1701— Recommended Decision and Order.
the Administrative Law Judge (‘‘ALJ’’). 1706 (2000)) (‘‘IEEPA’’). On November 13, 2000, the Accordingly, it is therefore ordered,
Act was reauthorized and it remained in effect
In a charging letter filed on September through August 20, 2001. Since August 21, 2001,
First, that for a period of ten years
12, 2005, the Bureau of Industry and from the date of this Order, Winter
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the Act has been in lapse and the President, through


Security (‘‘BIS’’) alleged that Executive Order 13222 of August 17, 2001 (3 CFR, Aircraft Product SA, a/k/a Ruf S. Lopez
Respondent, Winter Aircraft Products 2001 Comp. 783 (2002)), which has been extended SA, C/Ferrocarril 41, 28045 Madrid,
by successive Presidential Notices, the most recent
SA (hereinafter ‘‘Winter Aircraft’’), also being that of August 3, 2006 (71 FR 44,551 (August
Spain, its successors and assigns, and
known as Ruf S. Lopez SA., committed 7, 2006)), has continued the Regulations in effect when acting for or on behalf of Winter
two violations of the Export under IEEPA. Aircraft, its representatives, agents and

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29966 Federal Register / Vol. 72, No. 103 / Wednesday, May 30, 2007 / Notices

employees (hereinafter collectively or will be exported from the United § 766.7 of the Regulations, BIS has
referred to as the ‘‘Denied Person’’), may States. For purposes of this paragraph, moved for the issuance of an Order of
not, directly or indirectly, participate in servicing means installation, Default against Winter Aircraft as
any way in any transaction involving maintenance, repair, modification or Winter Aircraft has failed to file an
any commodity, software or technology testing. answer to the allegations in the charging
(hereinafter collectively referred to as Third, that after notice and letter issued by BIS within the time
‘‘item’’) exported or to be exported from opportunity for comment as provided in period required by law.
the United States that is subject to the Section 766.23 of the Regulations, any
Regulations, or in any other activity person, firm, corporation, or business A. Legal Authority for Issuing an Order
subject to the Regulations, including, organization related to the Denied of Default
but not limited to: Person by affiliation, ownership, Section 766.7 of the Regulations states
A. Applying for, obtaining, or using control, or position of responsibility in that BIS may file a motion for an order
any license, License Exception, or the conduct of trade or related services of default if a respondent fails to file a
export control document; may also be made subject to the timely answer to a charging letter. That
B. Carrying on negotiations provisions of this Order. section, entitled Default, provides in
concerning, or ordering, buying, Fourth, that this Order does not pertinent part:
receiving, using, selling, delivering, prohibit any export, reexport, or other Failure of the respondent to file an answer
storing, disposing of, forwarding, transaction subject to the Regulations within the time provided constitutes a waiver
transporting, financing, or otherwise where the only items involved that are of the respondent’s right to appear and
servicing in any way, any transaction subject to the Regulations are the contest the allegations in the charging letter.
involving any item exported or to be foreign-produced direct product of U.S.- In such event, the administrative law judge,
exported from the United States that is origin technology. on BIS’s motion and without further notice
subject to the Regulations, or in any Fifth, that this Order shall be served to the respondent, shall find the facts to be
other activity subject to the Regulations; on the Denied Person and on BIS, and as alleged in the charging letter and render
or shall be published in the Federal an initial or recommended decision
C. Benefitting in any way from any containing findings of fact and appropriate
Register. In addition, the ALJ’s
conclusions of law and issue or recommend
transaction involving any item exported Recommended Decision and Order, an order imposing appropriate sanctions.
or to be exported from the United States except for the section related to the 15 CFR 766.7 (2006).
that is subject to the Regulations, or in Recommended Order, shall be
any other activity subject to the published in the Federal Register. Pursuant to § 766.6 of the Regulations,
Regulations. This Order, which constitutes the a respondent must file an answer to the
Second, that no person may, directly final agency action in this matter, is charging letter ‘‘within 30 days after
or indirectly, do any of the following: effective immediately. being served with notice of the issuance
A. Export or reexport to or on behalf of the charging letter’’ initiating the
Dated: May 24, 2007.
of the Denied Person any item subject to proceeding.
the Regulations; Mark Foulon,
B. Take any action that facilitates the Acting Under Secretary of Commerce for B. Service of the Notice of Issuance of
acquisition or attempted acquisition by Industry and Security. Charging Letter
the Denied Person of the ownership, Recommended Decision and Order In this case, BIS served notice of
possession, or control of any item issuance of the charging letter in
subject to the Regulations that has been On September 12, 2005, the Bureau of
accordance with § 766.3(b)(1) of the
or will be exported from the United Industry and Security, U.S. Department
Regulations when it sent a copy of the
States, including financing or other of Commerce (BIS), issued a charging
charging letter by registered mail to
support activities related to a letter initiating this administrative
Winter Aircraft at its last known address
transaction whereby the Denied Person enforcement proceeding against Winter
on September 12, 2005. BIS has
acquires or attempts to acquire such Aircraft Products SA (‘‘Winter
submitted evidence that establishes that
ownership, possession or control; Aircraft’’), also known as Ruf S. Lopez
this charging letter was received by
C. Take any action to acquire from or SA. The charging letter alleged that
Winter Aircraft on or about September
to facilitate the acquisition or attempted Winter Aircraft committed two
21, 2005. In addition, BIS also received
acquisition from the Denied Person of violations of the Export Administration
a letter from Winter Aircraft
any item subject to the Regulations that Regulations (currently codified at 15
acknowledging receipt of the charging
has been exported from the United CFR parts 730–774 (2006)) (the
letter on September 21, 2005. Further,
States; ‘‘Regulations’’),1 Issued under the
BIS and Winter Aircraft have engaged in
D. Obtain from the Denied Person in Export Administration Act of 1979, as
several months of correspondence
the United States any item subject to the amended (50 U.S.C. app. 2401–2420
regarding the matter. BIS counsel has
Regulations with knowledge or reason (2000)) (the ‘‘Act’’).2 In accordance with
advised Winter Aircraft repeatedly to
to know that the item will be, or is 1 The violations charged occurred in 2000. The file an answer to the charging letter with
intended to be, exported from the Regulations governing the violations at issue are the Administrative Law Judge (‘‘ALJ’’).
United States; or found in the 2000 version of the Code of Federal Winter Aircraft has failed to file an
E. Engage in any transaction to service Regulations (15 CFR parts 730–774 (2000)). The answer to the charging letter as required
any item subject to the Regulations that 2006 Regulations establish the procedures that
by section 766.6 of the Regulations.
has been or will be exported from the apply to this matter.
2 From August 21, 1994 through November 12,
United States and that is owned, 2000, the Act was in lapse. During that period, the Act was reauthorized and it remained in effect
possessed or controlled by the Denied
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President, through Executive Order 12,924, which through August 20, 2001. Since August 21, 2001,
Person, or service any item, of whatever had been extended by successive Presidential the Act has been in lapse and the President, through
origin, that is owned, possessed or Notices, the last of which was August 3, 2000, 3 Executive Order 13,222 of August 17, 2001, 3 CFR,
CFR, 2000 Comp. 397 (2001), continued the 2001 Compo 783 (2002), as extended by the Notice
controlled by the Denied Person if such Regulations in effect under the International of August 3, 2006, 71 FR 44551 (Aug. 7, 2006), has
service involves the use of any item Emergency Economic Powers Act, 50 U.S.C. 1701– continued the Regulations in effect under the
subject to the Regulations that has been 1706 (2000) (‘‘IEEPA’’). On November 13, 2000, the IEEPA.

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Federal Register / Vol. 72, No. 103 / Wednesday, May 30, 2007 / Notices 29967

Accordingly, Winter Aircraft is in the Recommended Decision and Order. United States. Without the collection of
default. See 15 CFR 766.22(c). the information, DHS and Commerce
Done and Dated May 1, 2007, Baltimore, would not have the necessary
C. Summary of Violations Charged
Maryland. information to carry out the
The charging letter filed by BIS The Honorable Joseph N. Ingolia, responsibilities of determining
included a total of two charges. Chief Administrative Law Judge.
eligibility for duty-free entry assigned
Specifically, the charging letter alleged by law.
the following: [FR Doc. 07–2676 Filed 5–25–07; 8:45 am]
BILLING CODE 3510–DT–M
II. Method of Collection
Charge 1 (15 CFR 764.2(h)—Engaging in a
Transaction With Intent To Evade the A copy of Form ITA–338P is provided
Regulations) on and downloadable from a Web site
DEPARTMENT OF COMMERCE at http://ia.ita.doc.gov/sips/sipsfap or
Between on or about November 1, 2000,
and on or about November 17, 2000, Winter International Trade Administration the potential applicant may request a
Aircraft took actions with intent to evade the copy from the Department. The
Regulations. Specifically, on or about Request for Duty-Free Entry of applicant completes the form and then
November 1, 2000, Winter Aircraft acquired Scientific Instrument or Apparatus forwards it via mail to DHS.
aircraft parts, items subject to the Regulations
Upon acceptance by DHS as a valid
and classified under Export Control ACTION: Proposed information
Classification Number (‘‘ECCN’’) 9A991, from application, the application is
collection; comment request. transmitted to Commerce for further
U.S. suppliers with intent to transship such
items to Iran. Winter Aircraft failed to inform SUMMARY: The Department of processing.
the U.S. suppliers of the ultimate destination Commerce, as part of its continuing III. Data
of the items and, as such, no license was effort to reduce paperwork and
obtained from the U.S. Government for this OMB Number: 0625–0037.
respondent burdens, invites the general
transaction, as was required by Section 746.7
of the Regulations. On or about November 17, public and other Federal agencies to Form Number: ITA–338P.
2000, Winter Aircraft transshipped the take this opportunity to comment on Type of Review: Regular submission.
aircraft parts subject to the EAR to Iran with continuing information collections, as
required by the Paperwork Reduction Affected Public: State or local
a substantial markup in price. In taking these
actions, Winter Aircraft committed one Act of 1995, Public Law 104–13 (44 government; Federal agencies; not for-
violation of Section 764.2(h) of the U.S.C. 3506(c)(2)(A)). profit institutions.
Regulations. DATES: Written comments must be Estimated Number of Respondents:
Charge 2 (15 CFR 764.2(h)—Engaging in a submitted on or before July 30, 2007. 65.
Transaction With Intent To Evade the ADDRESSES: Direct all written comments Estimated Time Per Response: 2
Regulations) to Diana Hynek, Departmental hours.
Between on or about October 19, 2000, and Paperwork Clearance Officer, Estimated Total Annual Burden
on or about November 22, 2000, Winter Department of Commerce, Room 6625, Hours: 130.
Aircraft took actions with intent to evade the 14th & Constitution Avenue, NW.,
Regulations. Specifically, on or about Estimated Total Annual Costs: $2,860.
Washington, DC 20230 or via internet at
October 19, 2000, Winter Aircraft acquired IV. Request for Comments
aircraft parts, items subject to the Regulations
dHynek@doc.gov.
and classified under ECCN 9A991, from U.S. FOR FURTHER INFORMATION CONTACT: Comments are invited on (a) Whether
suppliers with intent to transship such items Request for additional information or the proposed collection of information
to Iran. Winter Aircraft failed to inform the copies of the information collection is necessary for the proper performance
U.S. suppliers of the ultimate destination of instrument and instructions should be of the functions of the agency, including
the items and, as such, no license was directed to: Faye Robinson, Statutory
obtained from the U.S. Government for this
whether the information shall have
Import Programs Staff, Room 2104, U.S. practical utility; (b) the accuracy of the
transaction, as was required by Section 746.7 Department of Commerce, Washington,
of the Regulations. On or about November 22, agency’s estimate of the burden
2000, Winter Aircraft transshipped the
DC 20230; phone number (202) 482– (including hours and costs) of the
aircraft parts subject to the EAR to Iran with 1660, fax number (202) 482–0949 or via proposed collection of information; (c)
a substantial markup in price. In taking these the Internet at ways to enhance the quality, utility, and
actions, Winter Aircraft committed one Faye_Robinson@ita.doc.gov. clarity of the information to be
violation of Section 764.2(h) of the SUPPLEMENTARY INFORMATION: collected; and (d) ways to minimize the
Regulations. burden of the collection of information
I. Abstract
D. Penalty Recommendation on respondents, including through the
The Departments of Commerce and use of automated collection techniques
[REDACTED SECTION] Homeland Security (‘‘DHS’’) are or forms of information technology.
E. Conclusion required to determine whether nonprofit Comments submitted in response to
institutions established for scientific or this notice will be summarized and/or
Accordingly, I am referring this educational purposes are entitled to
Recommended Decision and Order to included in the request for OMB
duty-free entry for scientific instruments approval of this information collection;
the Under Secretary of Commerce for the institutions import under the
Industry and Security for review and they also will become a matter of public
Florence Agreement. Form ITA–338P record.
final action for the agency, without enables: (1) DHS to determine whether
further notice to the Respondent, as the statutory eligibility requirements for Dated: May 23, 2007.
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provided in § 766.7 of the Regulations. the institution and the instrument are Gwellnar Banks,
Within 30 days after receipt of this fulfilled, and (2) Commerce to make a Management Analyst, Office of the Chief
Recommended Decision and Order, the comparison and finding as to the Information Officer.
Under Secretary shall issue a written scientific equivalency of comparable [FR Doc. E7–10340 Filed 5–29–07; 8:45 am]
order affirming, modifying, or vacating instruments being manufactured in the BILLING CODE 3510–DS–P

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