81 FR 7304 - Bureau of Industry and Security

DEPARTMENT OF COMMERCE

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

[Federal Register Volume 81, Number 28 (Thursday, February 11, 2016)]
[Notices]
[Page 7304]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-02771]



[[Page 7304]]

-----------------------------------------------------------------------

 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 ``[t]he 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.
---------------------------------------------------------------------------

    \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)).
---------------------------------------------------------------------------

    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:
    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. 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:
    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, 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]
 BILLING CODE P