Bureau of Industry and Security

Federal Register, Volume 81 Issue 28 (Thursday, February 11, 2016)

Federal Register Volume 81, Number 28 (Thursday, February 11, 2016)

Notices

Page 7304

From the Federal Register Online via the Government Publishing Office www.gpo.gov

FR Doc No: 2016-02771

Page 7304

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

In the Matter of: Qiang Hu, a/k/a Johnson Hu, #602, No. 39, Nong #78, Shou Guang Road, Pu Dong, Shanghai PRC; Order Denying Export Privileges

On July 24, 2014, in the U.S. District Court for the District of Massachusetts, Qiang Hu, a/k/a Johnson Hu (``Hu'') was convicted of violating the International Emergency Economic Powers Act (50 U.S.C. Sec. 1701, et seq. (2006 & Supp. IV 2010)) (``IEEPA''). Specifically, Hu knowingly and willfully conspired, combined, confederated and agreed with other persons known and unknown to cause the export of U.S. origin pressure transducers (manometer types 622B, 623B, 626A, 626B, 627B, 722A, and 722B), from the United States to end-users in China and elsewhere in violation of the Regulations, Executive Order 13222, and IEEPA. Hu was sentenced to 34 months in prison and a special assessment of $100.00.

Section 766.25 of the Export Administration Regulations (``EAR'' or ``Regulations'') \1\ provides, in pertinent part, that ``the Director of the Office of Exporter Services, in consultation with the Director of the Office of Export Enforcement, may deny the export privileges of any person who has been convicted of a violation of the Export Administration Act (``EAA''), the EAR, or any order, license or authorization issued thereunder; any regulation, license, or order issued under the International Emergency Economic Powers Act (50 U.S.C. Sec. 1701-1706); 18 U.S.C. Sec. Sec. 793, 794 or 798; section 4(b) of the Internal Security Act of 1950 (50 U.S.C. Sec. 783(b)), or section 38 of the Arms Export Control Act (22 U.S.C. Sec. 2778).'' 15 CFR Sec. 766.25(a); see also Section 11(h) of the EAA, 50 U.S.C. app. Sec. 2410(h). The denial of export privileges under this provision may be for a period of up to 10 years from the date of the conviction. 15 CFR Sec. 766.25(d); see also 50 U.S.C. app. Sec. 2410(h). In addition, Section 750.8 of the Regulations states that the Bureau of Industry and Security's Office of Exporter Services may revoke any Bureau of Industry and Security (``BIS'') licenses previously issued in which the person had an interest in at the time of his conviction.

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\1\ The Regulations are currently codified in the Code of Federal Regulations at 15 CFR parts 730-774 (2015). The Regulations issued pursuant to the Export Administration Act (50 U.S.C. app. Sec. Sec. 2401-2420 (2000)) (``EAA''). Since August 21, 2001, the EAA has been in lapse and the President, through Executive Order 13222 of August 17, 2001 (3 CFR, 2001 Comp. 783 (2002)), which has been extended by successive Presidential Notices, the most recent being that of August 7, 2015 (80 FR 48233 (August 11, 2015)), has continued the Regulations in effect under the International Emergency Economic Powers Act (50 U.S.C. Sec. 1701, et seq. (2006 & Supp. IV 2010)).

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BIS has received notice of Hu's conviction for violating IEEPA, and in accordance with Section 766.25 of the Regulations, BIS has provided notice and an opportunity for Hu to make a written submission to BIS. BIS has received a submission from Hu.

Based upon my review and consultations with BIS's Office of Export Enforcement, including its Director, and the facts available to BIS, I have decided to deny Hu's export privileges under the Regulations for a period of 10 years from the date of Hu's conviction.

Accordingly, it is hereby ordered:

First, from the date of this Order until July 24, 2024, Qiang Hu, a/k/a Johnson Hu with a last known address of #602, No. 39, Nong #78, Shou Guang Road, Pu Dong, Shanghai PRC, and when acting for or on his behalf, his successors, assigns, employees, agents or representatives (the ``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, including, but not limited to:

1. Applying for, obtaining, or using any license, License Exception, or export control document;

2. 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

3. Benefitting 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, no person may, directly or indirectly, do any of the following:

1. Export or reexport to or on behalf of the Denied Person any item subject to the Regulations;

2. 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;

3. 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;

4. 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

5. 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, after notice and opportunity for comment as provided in Section 766.23 of the Regulations, any other person, firm, corporation, or business organization related to Hu by ownership, control, position of responsibility, affiliation, or other connection in the conduct of trade or business may also be made subject to the provisions of this Order in order to prevent evasion of this Order.

   Fourth, in accordance with Part 756 of the Regulations, Hu may file an appeal of this Order with the Under Secretary of Commerce for Industry and Security. The appeal must be filed within 45 days from the date of this Order and must comply with the provisions of Part 756 of the Regulations.

   Fifth, a copy of this Order shall be delivered to the Hu. This Order shall be published in the Federal Register.

   Sixth, this Order is effective immediately and shall remain in effect until July 24, 2024.

   Issued this 3rd day of February, 2016.

   Karen H. Nies-Vogel,

   Director, Office of Exporter Services.

   FR Doc. 2016-02771 Filed 2-10-16; 8:45 am

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