83 FR 38123 - Denial of Export Privileges

DEPARTMENT OF COMMERCE
Bureau of Industry and Security

Federal Register Volume 83, Issue 150 (August 3, 2018)

Page Range		38123-38125
FR Document		2018-16678
Federal Register, Volume 83 Issue 150 (Friday, August 3, 2018)
[Federal Register Volume 83, Number 150 (Friday, August 3, 2018)]
[Notices]
[Pages 38123-38125]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-16678]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

[Docket Number 17-BIS-0005]


Denial of Export Privileges

    In the Matter of: Narender Sharma Middle Bazzar, Rampur Bushahr 
Distt. Shimla (H.P.) 172 001 India, Hydel Engineering Products

[[Page 38124]]

Middle Bazzar, Rampur Bushahr Distt. Shimla (H.P) 172 001 India, 
Respondents; Order Activating Suspended Portion of Civil Penalty and 
Activating Suspended Denial of Export Privileges Against Narender 
Sharma and Hydel Engineering Products

    On August 31, 2017, I signed an order (the ``August 31, 2017 
Order'') approving the terms of the settlement agreement entered into 
in August 2017 (the ``Settlement Agreement'') between the Bureau of 
Industry and Security, U.S. Department of Commerce (``BIS''), and 
Narender Sharma (``Sharma'') and his company Hydel Engineering Products 
(``Hydel'' or ``Hydel Engineering'') (collectively, ``Hydel/Sharma'' or 
``Respondents''). The Settlement Agreement and the August 31, 2017 
Order relate to an enforcement action brought by BIS against Hydel and 
Sharma for conspiring to export items from the United States to Iran, 
including to an Iranian Government entity, without the required U.S. 
Government authorization, in violation of the Export Administration 
Regulations (the ``Regulations''), which issued under the authority of 
the Export Administration Act of 1979, as amended (the ``Act'').\1\
---------------------------------------------------------------------------

    \1\ The Regulations are currently codified in the Code of 
Federal Regulations at 15 CFR parts 730-774 (2018). The Regulations 
issued under the Act, 50 U.S.C. app. 4601-4623 (Supp. III 2015). 
Since August 21, 2001, the Act has been in lapse and the President, 
through Executive Order 13222 of August 17, 2001 (3 CFR, 2001 Comp. 
783 (2002)), as extended most recently by the Notice of August 15, 
2017 (82 FR 39,005 (Aug. 16, 2017)), has continued the Regulations 
in effect under the International Emergency Economic Powers Act, 50 
U.S.C. 1701, et seq. (2012).
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    The Settlement Agreement and August 31, 2017 Order imposed on Hydel 
and Sharma a civil penalty of $100,000, for which they are jointly and 
severally liable. Hydel and Sharma were required to pay $30,000 of this 
amount to the U.S. Department of Commerce by no later than December 15, 
2017. Payment of the remaining $70,000 was suspended for a probationary 
period of five years from the date of the August 31, 2017 Order, after 
which it would be waived, provided that during this five-year 
probationary period, Hydel and Sharma made full and timely payment of 
$30,000 as set forth above, otherwise complied with the terms of the 
Settlement Agreement and the August 31, 2017 Order, and committed no 
other violation of the Act, the Regulations, or any order, license, or 
authorization issued thereunder.
    The Settlement Agreement and the August 31, 2017 Order also imposed 
a five-year denial of Hydel and Sharma's export privileges under the 
Regulations. This denial order was suspended pursuant to Section 
766.18(c) of the Regulations, subject to the same probationary 
conditions described above, including Hydel and Sharma's full and 
timely payment of $30,000 by December 15, 2017. If Hydel and Sharma 
failed to make such full and timely payment, the suspension could be 
modified or revoked by BIS and a denial order including a denial period 
of up to five years activated against Hydel and Sharma. Upon activation 
of the denial order, any license issued pursuant to the Act or 
Regulations in which Hydel or Sharma had an interest at such time would 
be revoked.
    BIS has brought to my attention that Hydel and Sharma have not paid 
the $30,000 that was due by December 15, 2017, and thus that Hydel and 
Sharma have violated one of the probationary conditions relating to the 
$70,000 suspended portion of the civil penalty and the suspension of 
the denial of their export privileges.
    In accordance with Sections 766.17(c) and 766.18(c) of the 
Regulations, I notified Hydel and Sharma, by letter dated February 12, 
2018, of the proposed activation of these suspended sanctions, and 
provided them with an opportunity to respond, including an opportunity 
to explain their failure to make the December 15, 2017 payment of 
$30,000, and to show why I should not activate the $70,000 suspended 
penalty amount, issue an active five-year denial order against them, or 
take both actions.
    Neither Hydel nor Sharma has responded to the February 12, 2018 
letter. The $30,000 civil penalty payment that was due by December 15, 
2017, also remains unpaid.
    Based on the totality of circumstances here, I have determined 
within my discretion that it is appropriate to activate the $70,000 
suspended portion of the civil penalty and to activate a denial order 
including a five-year denial period.
    It is therefore ordered:
    First, the suspension of the $70,000 suspended portion of the civil 
penalty set forth in the August 31, 2017 Order is hereby revoked, and 
that this now-activated $70,000 civil penalty amount shall be paid to 
the U.S. Department of Commerce within 15 days of the date of this 
Order. Hydel and Sharma are jointly and severally liable for payment of 
this amount, and continue to be jointly and severally liable for the 
$30,000 civil penalty amount they were required to pay by December 15, 
2017, along with any related interest, penalty, or administrative 
charge that has accrued or may accrue as a result of their failure to 
pay $30,000 by the December 15, 2017 due date.
    Second, pursuant to the Debt Collection Act of 1982, as amended (31 
U.S.C. 3701-3720E (2000)), the $70,000 civil penalty amount activated 
by this Order accrues interest as more fully described in the attached 
Notice, and if payment is not made by the due date specified herein, 
Hydel and Sharma will be assessed, in addition to the full amount of 
the civil penalty and interest, a penalty charge and an administrative 
charge, as more fully described in the attached Notice.
    Third, for a period of five years from the date of this Order, 
Hydel Engineering Products, with a last known address of Middle Bazzar, 
Rampur Bushahr Distt. Shimla (H.P.) 172 001, India, and Narender 
Sharma, with a last known address of Middle Bazzar, Rampur Bushahr 
Distt. Shimla (H.P.) 172 001, India, and when acting for or on their 
behalf, their successors, assigns, representatives, agents, or 
employees (each a ``Denied Person'' and collectively the ``Denied 
Persons''), 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, 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 engaging 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.
    Fourth, that no person may, directly or indirectly, do any of the 
following:
    A. Export or reexport to or on behalf of a Denied Person any item 
subject to the Regulations;
    B. Take any action that facilitates the acquisition or attempted 
acquisition by a 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 a Denied Person

[[Page 38125]]

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 a Denied Person of any item subject to 
the Regulations that has been exported from the United States;
    D. Obtain from a 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 a Denied Person, or 
service any item, of whatever origin, that is owned, possessed or 
controlled by a 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.
    Fifth, after notice and opportunity for comment as provided in 
Section 766.23 of the Regulations, any person, firm, corporation, or 
business organization related to a Denied Person 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.
    Sixth, any license issued pursuant to the Act or Regulations in 
which Hydel or Sharma has an interest of the date of this Order is 
hereby revoked.
    Seventh, this Order shall be served on Hydel and Sharma, and shall 
be published in the Federal Register.
    This Order is effective immediately.

    Issued on July 30, 2018.
Richard R. Majauskas,
Acting Assistant Secretary of Commerce for Export Enforcement.
[FR Doc. 2018-16678 Filed 8-2-18; 8:45 am]
 BILLING CODE P
38124 Federal Register / Vol. 83, No. 150 / Friday, August 3, 2018 / Notices

Middle Bazzar, Rampur Bushahr Distt. Regulations, subject to the same Second, pursuant to the Debt
Shimla (H.P) 172 001 India, Respondents; probationary conditions described Collection Act of 1982, as amended (31
Order Activating Suspended Portion of Civil above, including Hydel and Sharma’s U.S.C. 3701–3720E (2000)), the $70,000
Penalty and Activating Suspended Denial of
full and timely payment of $30,000 by civil penalty amount activated by this
Export Privileges Against Narender Sharma
and Hydel Engineering Products December 15, 2017. If Hydel and Order accrues interest as more fully
Sharma failed to make such full and described in the attached Notice, and if
On August 31, 2017, I signed an order timely payment, the suspension could payment is not made by the due date
(the ‘‘August 31, 2017 Order’’) be modified or revoked by BIS and a specified herein, Hydel and Sharma will
approving the terms of the settlement denial order including a denial period be assessed, in addition to the full
agreement entered into in August 2017 of up to five years activated against amount of the civil penalty and interest,
(the ‘‘Settlement Agreement’’) between Hydel and Sharma. Upon activation of a penalty charge and an administrative
the Bureau of Industry and Security, the denial order, any license issued charge, as more fully described in the
U.S. Department of Commerce (‘‘BIS’’), pursuant to the Act or Regulations in attached Notice.
and Narender Sharma (‘‘Sharma’’) and which Hydel or Sharma had an interest Third, for a period of five years from
his company Hydel Engineering at such time would be revoked. the date of this Order, Hydel
Products (‘‘Hydel’’ or ‘‘Hydel BIS has brought to my attention that Engineering Products, with a last known
Engineering’’) (collectively, ‘‘Hydel/ Hydel and Sharma have not paid the address of Middle Bazzar, Rampur
Sharma’’ or ‘‘Respondents’’). The $30,000 that was due by December 15, Bushahr Distt. Shimla (H.P.) 172 001,
Settlement Agreement and the August 2017, and thus that Hydel and Sharma India, and Narender Sharma, with a last
31, 2017 Order relate to an enforcement have violated one of the probationary known address of Middle Bazzar,
action brought by BIS against Hydel and conditions relating to the $70,000 Rampur Bushahr Distt. Shimla (H.P.)
Sharma for conspiring to export items suspended portion of the civil penalty 172 001, India, and when acting for or
from the United States to Iran, including and the suspension of the denial of their on their behalf, their successors, assigns,
to an Iranian Government entity, export privileges. representatives, agents, or employees
without the required U.S. Government (each a ‘‘Denied Person’’ and
In accordance with Sections 766.17(c)
authorization, in violation of the Export collectively the ‘‘Denied Persons’’), may
and 766.18(c) of the Regulations, I
Administration Regulations (the not, directly or indirectly, participate in
notified Hydel and Sharma, by letter
‘‘Regulations’’), which issued under the any way in any transaction involving
dated February 12, 2018, of the
authority of the Export Administration any commodity, software or technology
proposed activation of these suspended
Act of 1979, as amended (the ‘‘Act’’).1 (hereinafter collectively referred to as
sanctions, and provided them with an
The Settlement Agreement and ‘‘item’’) exported or to be exported from
opportunity to respond, including an
August 31, 2017 Order imposed on the United States that is subject to the
opportunity to explain their failure to
Hydel and Sharma a civil penalty of Regulations, or in any other activity
make the December 15, 2017 payment of
$100,000, for which they are jointly and subject to the Regulations, including,
$30,000, and to show why I should not
severally liable. Hydel and Sharma were but not limited to:
activate the $70,000 suspended penalty
required to pay $30,000 of this amount A. Applying for, obtaining, or using
amount, issue an active five-year denial
to the U.S. Department of Commerce by any license, license exception, or export
order against them, or take both actions.
no later than December 15, 2017. control document;
Payment of the remaining $70,000 was Neither Hydel nor Sharma has B. Carrying on negotiations
suspended for a probationary period of responded to the February 12, 2018 concerning, or ordering, buying,
five years from the date of the August letter. The $30,000 civil penalty receiving, using, selling, delivering,
31, 2017 Order, after which it would be payment that was due by December 15, storing, disposing of, forwarding,
waived, provided that during this five- 2017, also remains unpaid. transporting, financing, or otherwise
year probationary period, Hydel and Based on the totality of circumstances servicing in any way, any transaction
Sharma made full and timely payment here, I have determined within my involving any item exported or to be
of $30,000 as set forth above, otherwise discretion that it is appropriate to exported from the United States that is
complied with the terms of the activate the $70,000 suspended portion subject to the Regulations, or engaging
Settlement Agreement and the August of the civil penalty and to activate a in any other activity subject to the
31, 2017 Order, and committed no other denial order including a five-year denial Regulations; or
violation of the Act, the Regulations, or period. C. Benefitting in any way from any
any order, license, or authorization It is therefore ordered: transaction involving any item exported
issued thereunder. First, the suspension of the $70,000 or to be exported from the United States
The Settlement Agreement and the suspended portion of the civil penalty that is subject to the Regulations, or in
August 31, 2017 Order also imposed a set forth in the August 31, 2017 Order any other activity subject to the
five-year denial of Hydel and Sharma’s is hereby revoked, and that this now- Regulations.
export privileges under the Regulations. activated $70,000 civil penalty amount Fourth, that no person may, directly
This denial order was suspended shall be paid to the U.S. Department of or indirectly, do any of the following:
pursuant to Section 766.18(c) of the Commerce within 15 days of the date of A. Export or reexport to or on behalf
this Order. Hydel and Sharma are of a Denied Person any item subject to
1 The Regulations are currently codified in the jointly and severally liable for payment the Regulations;
Code of Federal Regulations at 15 CFR parts 730– of this amount, and continue to be B. Take any action that facilitates the
774 (2018). The Regulations issued under the Act, jointly and severally liable for the acquisition or attempted acquisition by
amozie on DSK3GDR082PROD with NOTICES1

50 U.S.C. app. 4601–4623 (Supp. III 2015). Since
August 21, 2001, the Act has been in lapse and the
$30,000 civil penalty amount they were a Denied Person of the ownership,
President, through Executive Order 13222 of August required to pay by December 15, 2017, possession, or control of any item
17, 2001 (3 CFR, 2001 Comp. 783 (2002)), as along with any related interest, penalty, subject to the Regulations that has been
extended most recently by the Notice of August 15, or administrative charge that has or will be exported from the United
2017 (82 FR 39,005 (Aug. 16, 2017)), has continued
the Regulations in effect under the International
accrued or may accrue as a result of States, including financing or other
Emergency Economic Powers Act, 50 U.S.C. 1701, their failure to pay $30,000 by the support activities related to a
et seq. (2012). December 15, 2017 due date. transaction whereby a Denied Person

VerDate Sep<11>2014 18:26 Aug 02, 2018 Jkt 244001 PO 00000 Frm 00009 Fmt 4703 Sfmt 4703 E:\FR\FM\03AUN1.SGM 03AUN1
Federal Register / Vol. 83, No. 150 / Friday, August 3, 2018 / Notices 38125

acquires or attempts to acquire such ACTION:Notice; issuance of incidental patterns, including, but not limited to,
ownership, possession or control; harassment authorization. migration, breathing, nursing, breeding,
C. Take any action to acquire from or feeding, or sheltering (Level B
to facilitate the acquisition or attempted SUMMARY: In accordance with the harassment).
acquisition from a Denied Person of any regulations implementing the Marine
item subject to the Regulations that has Mammal Protection Act (MMPA), as National Environmental Policy Act
been exported from the United States; amended, notification is hereby given In compliance with the National
D. Obtain from a Denied Person in the that NMFS has issued an incidental Environmental Policy Act of 1969 (42
United States any item subject to the harassment authorization (IHA) to the U.S.C. 4321 et seq.), as implemented by
Regulations with knowledge or reason U.S. Navy (Navy) for the take, by Level the regulations published by the
to know that the item will be, or is B harassment only, of bottlenose Council on Environmental Quality (40
intended to be, exported from the dolphins (Tursiops truncatus), CFR parts 1500–1508), the Navy
United States; or incidental to the Bravo Wharf prepared an Environmental Assessment
E. Engage in any transaction to service Recapitalization Project at Bravo Wharf, (EA) to consider the direct, indirect and
any item subject to the Regulations that Naval Station Mayport, Florida. cumulative effects to the human
has been or will be exported from the DATES: The IHA is valid from May 14, environment resulting from the Bravo
United States and which is owned, 2018 through May 13, 2019. Wharf recapitalization project. NMFS
possessed or controlled by a Denied FOR FURTHER INFORMATION CONTACT: made the Navy’s EA available to the
Person, or service any item, of whatever Jaclyn Daly, Office of Protected public for review and comment, in
origin, that is owned, possessed or Resources, NMFS, (301) 427–8438. relation to its suitability for adoption by
controlled by a Denied Person if such NMFS in order to assess the impacts to
Background the human environment of issuance of
service involves the use of any item
subject to the Regulations that has been Sections 101(a)(5)(A) and (D) of the an IHA to the Navy. Also in compliance
or will be exported from the United MMPA (16 U.S.C. 1361 et seq.) direct with NEPA and the CEQ regulations, as
States. For purposes of this paragraph, the Secretary of Commerce (as delegated well as NOAA Administrative Order
servicing means installation, to NMFS) to allow, upon request, the 216–6, NMFS has reviewed the Navy’s
maintenance, repair, modification or incidental, but not intentional, taking of EA, determined it to be sufficient, and
testing. small numbers of marine mammals by adopted that EA and signed a Finding
Fifth, after notice and opportunity for U.S. citizens who engage in a specified of No Significant Impact (FONSI) in
comment as provided in Section 766.23 activity (other than commercial fishing) July, 2016. The 2016 NEPA documents
of the Regulations, any person, firm, within a specified geographical region if are available at https://
corporation, or business organization certain findings are made and either www.fisheries.noaa.gov/node/23111.
related to a Denied Person by regulations are issued or, if the taking is Since the IHA covers a subset of the
ownership, control, position of limited to harassment, a notice of a same work covered in a former IHA,
responsibility, affiliation, or other proposed authorization is provided to NMFS is relying on this same EA and
connection in the conduct of trade or the public for review. FONSI document.
business may also be made subject to An authorization for incidental
History of Request
the provisions of this Order. takings shall be granted if NMFS finds
Sixth, any license issued pursuant to that the taking will have a negligible On July 21, 2015, we received a
the Act or Regulations in which Hydel impact on the species or stock(s), will request from the Navy for authorization
or Sharma has an interest of the date of not have an unmitigable adverse impact of the taking, by Level B harassment
this Order is hereby revoked. on the availability of the species or only, of marine mammals incidental to
Seventh, this Order shall be served on stock(s) for subsistence uses (where pile driving (predominantly vibratory
Hydel and Sharma, and shall be relevant), and if the permissible pile driving, with a small amount of
published in the Federal Register. methods of taking and requirements impact pile driving as a contingency
This Order is effective immediately. pertaining to the mitigation, monitoring plan in case of difficult piles) in
Issued on July 30, 2018. and reporting of such takings are set association with the Bravo Wharf
Richard R. Majauskas, forth. Recapitalization Project at Naval Station
NMFS has defined ‘‘negligible Mayport, Florida. A final version of the
Acting Assistant Secretary of Commerce for
Export Enforcement. impact’’ in 50 CFR 216.103 as an impact application, which we deemed adequate
resulting from the specified activity that and complete, was submitted on
[FR Doc. 2018–16678 Filed 8–2–18; 8:45 am]
cannot be reasonably expected to, and is November 17, 2015. We published a
BILLING CODE P
not reasonably likely to, adversely affect notice of a proposed IHA and request for
the species or stock through effects on comments on December 7, 2015 (80 FR
DEPARTMENT OF COMMERCE annual rates of recruitment or survival. 75978), and subsequently published
The MMPA states that the term ‘‘take’’ final notice of our issuance of the IHA
National Oceanic and Atmospheric means to harass, hunt, capture, kill or on August 9, 2016 (81 FR 52637). In-
Administration attempt to harass, hunt, capture, or kill water work associated with the project
any marine mammal. was expected to be completed within
RIN 0648–XG131 Except with respect to certain the one-year timeframe of the IHA
activities not pertinent here, the MMPA (effective dates originally December 1,
Takes of Marine Mammals Incidental to
defines ‘‘harassment’’ as any act of 2016 through November 30, 2017). The
amozie on DSK3GDR082PROD with NOTICES1

Specified Activities; Taking Marine
pursuit, torment, or annoyance which (i) specified activities were, and are,
Mammals Incidental to the Bravo
has the potential to injure a marine expected to result in the take of
Wharf Recapitalization Project
mammal or marine mammal stock in the individuals from four stocks of
AGENCY: National Marine Fisheries wild (Level A harassment); or (ii) has bottlenose dolphins.
Service (NMFS), National Oceanic and the potential to disturb a marine On January 23, 2017, the Navy
Atmospheric Administration (NOAA), mammal or marine mammal stock in the informed NMFS that no work had been
Commerce. wild by causing disruption of behavioral performed relevant to the specified

VerDate Sep<11>2014 18:26 Aug 02, 2018 Jkt 244001 PO 00000 Frm 00010 Fmt 4703 Sfmt 4703 E:\FR\FM\03AUN1.SGM 03AUN1
Document Created: 2018-11-06 10:35:20
Document Modified: 2018-11-06 10:35:20
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
FR Citation		83 FR 38123
83 FR 38123 - Denial of Export Privileges

DEPARTMENT OF COMMERCEBureau of Industry and Security

Federal Register Volume 83, Issue 150 (August 3, 2018)

DEPARTMENT OF COMMERCE
Bureau of Industry and Security
