1 April 1998
Source: http://www.access.gpo.gov/su_docs/aces/aaces002.html

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[Federal Register: April 1, 1998 (Volume 63, Number 62)]
[Notices]
[Page 15828-15829]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr01ap98-44]

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DEPARTMENT OF COMMERCE

Bureau of Export Administration


Action Affecting Export Privileges; Suburban Guns (PTY) Ltd.

Order Denying Permission To Apply for or Use Export Licenses

    On July 25, 1997, Suburban Guns (Pty) Ltd. (Suburban Guns) was
convicted in the United States District Court for the Southern District
of New York of one count of violating the Export Administration Act of
1979, as amended (currently codified at 50 U.S.C.A. app. Secs. 2401-
2420 (1991 & Supp. 1997)) (the Act),\1\ and one count of violating the
International Emergency Economic Powers Act (currently codified at 50
U.S.C.A. 1701-1706 (1991 & Supp. 1997)) (IEEPA). Specifically, Suburban
Guns was convicted of knowingly and willfully causing to be exported to
South Africa numerous firearms designated on the Commerce Control List
without obtaining the required validated export licenses from the
Department of Commerce.
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    \1\ The Act expired on August 20, 1994. Executive Order 12924 (3
CFR, 1994 Comp. 917 (1995)), extended by Presidential Notices of
August 15, 1995 (3 CFR, 1995 Comp. 501 (1996)), August 14, 1996 (3
CFR 1996 Comp. 298 (1997)), and August 13, 1997 (62 FR 43629, August
15, 1997), continued the Export Administration Regulations in effect
under IEEPA.
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    Section 11(h) of the Act provides that, at the discretion of the
Secretary of Commerce,\2\ no person convicted of violating the Act or
the IEEPA, or certain other provisions of the United States Code, shall
be eligible to apply for or use any license, including any License
Exception, issued pursuant to, or provided by, the Act or the Export
Administration Regulations (currently codified at 15 CFR Parts 730-774
(1997)) (the Regulations), for a period of up to 10 years from the date
of the conviction. In addition, any license issued pursuant to the Act
in which such a person had any interest at the time of conviction may
be revoked.
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    \2\ Pursuant to appropriate delegations of authority, the
Director, Office of Exporter Services, in consultation with the
Director, Office of Export Enforcement, exercises the authority
granted to the Secretary by Section 11(h) of the Act.
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    Pursuant to Section 766.25 and 750.8(a) of the Regulations, upon
notification that a person has been convicted of violating the Act or
the IEEPA, the Director, Office of Exporter Services, in consultation
with the Director, Office of Export Enforcement, shall determine
whether to deny that person permission to apply for or use any license,
including any License Exception, issued pursuant to, or provided by,
the Act or the Regulations, and shall also determine whether to revoke
any license previously issued to such a person.
    Having received notice of Suburban Guns's conviction for violating
the Act and the IEEPA and following consultations with the Acting
Director, Office of Export Enforcement, I have decided to deny Suburban
Guns permission to apply for or use any license, including any License
Exception, issued pursuant to, or provided by, the Act and the
Regulations, for a period of 10 years from the date of its conviction.
The 10-year period ends on July 25, 2007. I have also decided to revoke
all licenses issued pursuant to the Act in which Suburban guns had an
interest at the time of its conviction.
    Accordingly, it is hereby

Ordered

    I. Until July 25, 2007, Suburban Guns (Pty) Ltd., 119 Main Road,
Plumstead 7800, Cape Town, South Africa, may not, directly or
indirectly, participate in any way, in any transaction involving any
commodity, software or technology

[[Page 15829]]

(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.
    II. 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 that 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.
    III. After notice and opportunity for comment as provided in
Section 766.23 of the Regulations, any person, firm, cooperation, or
business organization related to Suburban Guns 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.
    IV. 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-product direct
product of U.S.-origin technology.
    V. This Order is effective immediately and shall remain in effect
until July 25, 2007.
    VI. A copy of this Order shall be delivered to Suburban Guns. This
Order shall be published in the Federal Register.

    Dated: March 23, 1998.
Eileen M. Albanese,
Director, Office of Exporter Services.
[FR Doc. 98-8521 Filed 3-31-98; 8:45 am]
BILLING CODE 3510-DT-M
