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another person is then subject to an or- sibility, or other connection in the con. der revoking or denying his export privi- duct of trade or related services. See leges or is then excluded from practice $$ 382.1 and 384.2 of this chapter, and before the Office of Export Control, di- § 382.51 Supplement 1, Table of denial rectly or indirectly, in any manner or and probation orders currently in effect. capacity:

This table contains orders issued by the (1) May apply for, obtain, or use any Office of Export Control which currently license, Shipper's Export Declaration, deny export privileges and/or place the Bill of Lading, or other export control person or firm on probation. This list document relating to an exportation or contains the names and addresses of reexportation of commodities or tech- such persons, the effective and expiration nical data by, to, or for such person dates of the orders, a brief summary of denied export privileges; or

the export privileges affected, and the (2) May order, buy, receive, use, sell, citations to the volumes and pages of the deliver, store, dispose of, forward, trans- FEDERAL REGISTER where complete texts port, finance, or otherwise service or par- of the orders are published. The pubticipate in, any transaction which may lication of such orders in the FEDERAL involve any commodity or technical data REGISTER constitutes legal notice of the exported or to be exported from the terms thereof to all persons. United States, or which is otherwise subject to the Export Regulations, whereby

$ 381.11 Record keeping. such person denied export privileges may (a) Transactions subject to this secobtain any benefit therefrom or have any tion. This § 381.11 applies to transacinterest therein, directly or indirectly. tions involving exportations of commodi(b) Definition of "person denied ex

ties or technical data from the United port privileges”. For the purpose of this States and any known reexportations, § 381.10, the term “person denied export transshipments, or diversions of comprivileges” is defined to include:

modities or technical data originally ex(1) Any person, firm, corporation, or

ported from the United States, regardless other business organization whose export

of whether the exportation or reexportaprivileges are revoked or denied by any

tion is made, or proposed to be made, by order of the Office of Export Control or

any person with or without authorization who is excluded by such order from prac

by a validated license, a general license, tice before the Bureau of International

or any other export authorization. It Commerce; and

includes all negotiations connected with (2) Any other person, firm, corpora

such transactions, except that a mere tion, or other business organization also

preliminary inquiry or offer to do busidenied export privileges or excluded from

ness and negative response thereto shall practice before the Bureau of Interna

not constitute negotiations, unless the tional Commerce because of his or its re

inquiry or offer to do business proposes lationship to such person denied export

a transaction which a reasonably prudent privileges through affiliation, ownership,

exporter would believe likely to lead to a control, position of responsibility, or

violation of Export Orders or Regulaother connection in the conduct of trade

tions. It includes as well any exportaor related services during the period of

tions to Canada, if, at any stage in the such order, and whether or not named

transaction, it appears that a person in in such order.

a country other than the United States or (c) Applicability of orders. Orders

Canada has an interest therein or that of the Office of Export Control which

the commodity or technical data inrevoke or deny the export privileges of

volved is to be reexported, transshipped, any person or which exclude any person

or diverted from Canada to another forfrom practice before che Bureau of In

eign country. ternational Commerce provide that the

(b) Persons subject to this section. terms and prohibitions of such orders

Any person in the United States who, as apply not only to the persons expressly

principal or agent (including a forwardnamed therein but also, for the purpose

ing agent), participates in any transacof preventing evasion, to any other per

tion described in paragraph (a) of this son, firm, corporation, or other business

section, and any person in the United organization with which such person

States or abroad who is required to make may then or thereafter (during the term and keep records pursuant to any pro of the order) be related by affiliation, ownership, control, position of respon

visions of the Export Regulations, shall

keep all the records described in para

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graph (c) of this section which are made be kept for a period of three years from,
or obtained by such person, and shall whichever is later, the time of:
produce them in the manner provided in (1) The exportation from the United
paragraph (f) of this section.

States; or
(c) Records to be kept. The records (2) Any known reexportation, trans-
to be kept pursuant to this $ 381.11 shall shipment, or diversion; or
include memoranda, notes, correspond- (3) Any other termination of the
ence, books, export control documents, transaction, whether formally in writ-
and other written matter pertaining to ing or by any other means.
the transactions described in paragraph

(f) Production and inspection of tec(a) of this section, which may be made

ords. Every person, whether in the or obtained by a person described in par

United States or abroad, required to keep agraph (b) of this section. In addition records by any provision of the Export to the records required to be kept by this Regulations or of any Order shall pro$ 381.11, the provisions of $$ 368.1, 371.8, duce all records or reproductions of rec372.4, 372.9, 373.3, 373.4, 373.51, 376.3, ords (see paragraph (d) of this section) 377.3, 379.10, and 380.1 of the Export required to be kept, and make them Regulations require certain records to available for inspection and copying be made and kept by persons in the upon request by any authorized agent, United States or abroad in connection official, or employee of the Bureau of with export transactions. The revoca- International Commerce, the Bureau of tion or revision of any such provision of Customs, or a United States Foreign the Export Regulations which requires Service post, or by any other accredited the making and keeping of records shall representative of the United States Govnot be retroactive in effect unless spe

ernment, without any charge or expense cifically provided and shall not affect to such agent, oficial or employee. the original requirement to keep such records for the prescribed period.

PART 382-DENIAL OF EXPORT (d) Reproduction of records-(1) Defi

PRIVILEGES nition. "Reproduction” for the purpose Sec. of this paragraph (d) is defined to in- 382.1 Denial of export privileges and lmclude any photographic, photostatic,

position of civil penalties. microfilm, miniature photographic or

382.2 Compliance Commissioners. other process which accurately and dur

382.3 Institution of administrative proably reproduces the original record.

ceedings.

382.4 Default. (2) Use of reproductions. Reproduc

382.5 Answer and demand for oral hearing. tions may be substituted for original doc- 382.6 Subpoenas and interrogatories. uments with respect to all categories of 382.7 Hearings. records required to be retained under

382.8 Proceedings before and report of any provision of the Export Regulations

Compliance Commissioner.

382.9 or of any order, provided that all of the

Disposition of proceeding.

382.10 Consent orders.
following conditions are met;

382.11 Temporary denials.
(i) Reproductions may not be substi- 382.12 Rehearings.
tuted for any category of records until 382.13 Appeals.
twelve months after the beginning of the

382.14 Proceedings confidential.

382,15 Failure to comply with interrogaretention period set forth in paragraph

tories or requests to produce evi(e) of this section;

dence-indefinite denial. (ii) All significant information, marks, 382.16 Orders containing probationary and/or other characteristics on the orig

periods.

382.17 Extension of time. inal document must be clearly visible

382.18 Publication of orders. and legibly reproduced; and

382.51 Supplement 1; Table of denial and (iii) Appropriate facilities must be

probation orders currently in provided and maintained for the preser

effect. vation of the reproduced records during

AUTHORITY: The provisions of this part 382 the retention period and for the ready

Issued under sec. 3, 63 Stat. 7; 50 U.S.C. App.

2023; E.O. 10946, 26 F.R. 4487; E.O. 11038, 27 location and inspection of the records,

F.R. 7003. including a projector for viewing films

SOURCE: The provisions of this part 382 if needed.

contained in 10th General Revision of Export (e) Period of retention. Records re- Regulations, 30 F.R. 1478, Feb. 6, 19136, unless quired to be kept under this $ 381.11 shall otherwise noted.

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§ 382.1 Denial of export privileges and above, or in lieu thereof, a civil penalty imposition of civil penalties.

not to exceed $1,000 may be imposed for (a) Administrative sanctions. Any

each violation. (See § 381.1(b) (3).) person (respondent) who contravenes or

(b) Applicability to related persons. violates any law, order, regulation, li

Any order denying export privileges or cense, or other reexportation authoriza- excluding persons from practice before tion relating to export control is subject

the Bureau of International Commerce to the following administrative actions:

may be made applicable not only to per(1) Revocation of validated export li

sons named therein but also, to the excenses. Any or all outstanding validated

tent necessary to prevent evasion, to export licenses concerned with or af

other persons with whom said named fecting any transaction in which such persons may then or thereafter be related respondent may have any interest, direct

by ownership, control, position of responor indirect, may be revoked and ordered

sibility, affiliation, or other connection in returned forthwith to the Office of Ex

the conduct of trade or related services. port Control.

In addition, the order may contain the (2) General denial of export priv

substance of $ 381.10 of this chapter. ileges. Such respondent may be denied

(c) Definition of law or regulation rethe privileges of participating, directly

lating to export control. Any statute, or indirectly, in any manner or capacity,

proclamation, executive order, regulain any transaction involving commodi

tion, rule, license, or order applicable to ties or technical data exported from the

any conduct involving an export transacUnited States in whole or in part, or to

tion shall be deemed to be a "law or regbe exported, or which are otherwise sub

ulation relating to export control." ject to the Export Regulations. With- NOTE: This procedure in no way restricts out limitation of the generality of such the present practice of referring appropriate denial of export privileges, participation cases to the Department of Justice for crimiprohibited in any such transaction either

nal prosecution. Violations of Export Regin the United States or abroad may be

ulations not only may result in denial of deemed to include:

export privileges but also are punishable bg

fine (1) Participation as a party or as a

or imprisonment as described in

$ 381.1 of this chapter. Violations may rerepresentative of a party to any validated suit also in seizure and forfeiture of property export license application;

under Title 22, U.S.C.A. 401. (ii) Participation in the preparation [10th Gen. Rev. of Export Regs., 30 F.R. 1478, or filing of any export license applica- Feb. 6, 1965, as amended by Amdt. 17, 31 tion or reexportation authorization, or

F.R. 7509, May 21, 1966) document to be submitted therewith; (111) Participation in the obtaining or

§ 382.2 Compliance Commissioners. using of any validated or general export

The Director of the Bureau of Interlicense or other export control docu

national Commerce will designate one ments;

or more persons to act as Compliance (iv) Participation in the carrying on

Commissioners, who shall have the of negotiations with respect to, or in the

powers and duties provided herein. receiving, ordering, buying, selling, de

Compliance Commissioners shall not be livering, storing, using, or disposing of

responsible to or subject to the superany commodities or technical data; and

vision or direction of any officer, em(v) Participation in the financing,

ployee, or agent engaged in the performforwarding, transporting, or other sery

ance

of investigative or prosecuting icing of such commodities or technical

functions. data.

8 382.3 (3) Exclusion from

Institution of administrative practice. Such proceedings. respondent may be excluded from practice before the Bureau of International

(a) Charging letters. The InvestigaCommerce.

tions Division, Office of Export Control, (4) Civil Penalty. In addition to the

with the approval of the Office of the administrative sanctions described

General Counsel, may initiate proceed

ings for the imposition of one or more 1 See $ 370.4 of this chapter regarding the

of the following sanctions against any unauthorized disposition of foreign excess

person who it has reason to believe has personal property purchased from the violated any law or regulation relating United States Armed Forces in foreign

to export control: (1) denial of export countries.

privileges, (2) denial of privileges of

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OPLE practice, or (3) civil penalties. Such Any order thereafter issued shall have mpok proceedings are initiated by service of a the same effect as an order issued follow

charging letter. The charging letter ing the disposition of contested charges. shall allege the essential facts constitut- (b) Application to set aside defaults. ing the specific violations charged, in- Any respondent against whom an order

cluding reference to the particular regu- has been issued upon his default may Chcelatory or other provisions alleged to have apply, upon good cause shown, together

been vio ed, and shall give notice that, with evidentiary data in supr rt thereif the respondent is found to have com- of, to set aside his default and vacate

mitted the alleged violations, his export the order entered thereon. Such appliaid e privileges may be denied, his privilege of cation shall be duly sworn before an

practice may be denied, or a civil penalty officer qualified to take oaths and shall may be imposed. The charging letter be submitted in duplicate to the U.S. Deshall inform the respondent that he is partment of Commerce, Director, Office required to answer the allegations there- of Export Control, Washington, D.C., in contained within 30 days, as provided 20230, who shall then refer it to the Com. in 382.5, and that if he fails to answer pliance Commissioner for consideration as so provided he will be in default and and recommendation as to what disposithe allegations will be deemed admitted. tion thereof ought to be made. The It shall inform the respondent that he Compliance Commissioner shall consider is entitled to an oral hearing provided the application and may, if he so decides, that he files a written demand therefor require the respondent to attend a hearwith his answer or within seven days ing or submit further evidence in supafter service of his answer, and that he port of his request. The filing of an may, if he so desires, be represented by application to set aside a default does counsel of his own choosing. Charging not in any manner affect an order letters may be amended from time to entered upon default and such order contime, upon reasonable notice.

tinues in full force and effect unless a (b) Service. A charging letter shall further order is made modifying or terbe deemed served upon a respondent: (1) minating it. If he is a resident of the United States,

$ 382.5 Answer and demand for oral when mailed in a wrapper addressed to

hearing. him at his last known address, or when

(a) When to answer. The respondent left with him or his agent or employee, or when left at his dwelling with some

shall answer the allegations of the charg

ing letter within 30 days after service of person of suitable age and discretion

the charging letter upon him. then residing therein; or (2) if he is a

(b) Contents of answer. An answer non-resident of the United States, when

shall be responsive to the charging letter served upon him by any of the foregoing

and shall fully and completely set forth means, or if such method of service is

the nature of the respondent's defense not practicable or appropriate by reason

or defenses. In addition, it shall, by sepof arrangements or understandings between the United States Government and

arate paragraphs, admit or deny spethe Government of the country wherein

cifically and in detail each and every septhe respondent resides, when it is ten

arate allegation of the charging letter, dered for service upon him to an official

unless the respondent is without knowlof the Government of the country where

edge, in which case, his answer shall so in the respondent resides.

state and the statement shall operate as

a denial. A failure to deny or controvert (10th Gen. Rev. of Export Regs., 30 F.R. 1478, Feb. 6, 1965, as amended by Amdt. 17, 31

any particular allegation shall be deemed F.R. 7509, May 21, 1966]

an admission thereof. The respondent

may, in his answer, set forth such addi§ 382.4 Default.

tional or new matter as he may regard (a) Failure to answer. If the re- as supporting a defense to or claim of spondent fails to file an answer to the mitigation of the charges. Any defenses charging letter in the manner or within or partial defenses not specifically set the time prescribed in § 382.5, he shall be forth in an answer shall be deemed held in default and the case shall be waived, and evidence offered thereon by referred forthwith to the Compliance the respondent at a hearing may be reCommissioner who shall consider the fused unless good cause be shown for same in such manner and upon such evi- its receipt. If the respondent does not dence as he may decide is appropriate. demand an oral hearing, he shall trans

sioners

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mit, within 7 days after the service of the Compliance Commissioner shall prohis answer, original or photocopies of all ceed to consider the case upon all the correspondence, papers, records, afi- pleadings and evidence available and davits, and other documentary or writ- shall provide for the making of the ten evidence having any bearing upon or record in such manner as he deems apconnection with the matters in issue propriate. If an answer has been duly and, if any such materials be in a lan- filed and an oral hearing has been deĝuage other than the English language, manded, the Compliance Commissioner translations thereof into English shall shall set the case for such hearing, and be submitted at the same time.

due notice thereof shall be given to the (C) Submission of answer. The an- respondent or his attorney. A respondswer, written demand for oral hearing, ent is not entitled to notice of hearing and supporting evidence required by unless he has answered, raised issues to paragraph (b) of this section shall be in be determined as provided in $ 382.5 and duplicate and mailed or delivered to the has made demand for hearing. If U.S. Department of Commerce, Bureau neither the respondent nor anyone on of International Commerce, Compliance his behalf shall attend a hearing which Commissioner, Washington, D.C., 20230. has been set after due notice given the $ 382.6 Subpoenas and interrogatories.

hearing shall nevertheless proceed in his (a) Subpoenas. At the request of any

absence, and such absence shall not afparty to a proceeding before him, the

fect the validity of the hearing or any Compliance Commissioner may issue

proceedings or action thereafter. subpoenas, returnable before him, re

(b) Hearings shall be conducted by quiring the attendance of witnesses and

the Compliance Commissioner in a fair the production of books, records, or

and impartial manner.

The rules of other documentary or physical evidence

evidence prevailing in courts of law shall determined by the Compliance Commis

not apply, but all evidentiary material sioner to be relevant and material to the

relevant and material to the inquiry proceedings, reasonable in scope, and

shall be received and given appropriate properly obtainable by subpoena.

weight. (b) Interrogatories and requests for

(c) Because the Export Control Act admissions of facts. In any compliance

of 1949, as amended, is concerned with proceeding, the Investigations Division,

national security and foreign policy, releOffice of Export Control, or the Com

vant and material evidentiary materials pliance Commissioner may serve on any

bearing on the enforcement of the Act, respondent or his attorney interroga

whether classified or not, must be contories or requests for admissions of facts,

sidered by those making decisions in and if, without good cause being shown,

proceedings under the Export Regulathere is a failure or refusal to respond to

tions. Diligent effort shall be made, the questions or requests for admissions,

however, to declassify such classified the Compliance Commissioner, on his

materials or to secure unclassified sumown motion or motion of the Investiga

maries of or extracts from such classified tions Division, and upon such notice to

materials, when not contrary to any the respondent as the Compliance Com

statute or security regulation. Whenever missioner may direct, may strike re

an unclassified summary or extract of spondent's answer and declare him in

classified evidentiary materials shall be default, or make any other ruling which

offered, the Compliance Commissioner he deems necessary and just under the

shall compare it with the related classicircumstances. Interrogatories and re

fied materials. If he finds that the sumquests may be served in the same manner

mary or extract is supported by the clasas provided in § 382.3(b) for service of a

sified materials and omits only so much charging letter.

as remains classified, he may, subject to § 382.7 Hearings.

the right of the respondent to object on (a) A respondent who has not filed a

grounds of relevancy and materiality, adwritten answer is not entitled to a hear

mit the unclassified summary or extract ing, and the case against him in such

as part of the open record, to the extent instance shall be considered by the Com

ne deems said summary or extract relepliance Commissioner as provided in

vant and material. Thereafter, the re§ 382.4(a). If an answer has been filed and no oral hearing has been demanded,

spondent may submit evidence in explathe same shall be deemed waived, and

nation or contradiction thereof. In no

case shall the respondent or his attorney

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