Action Affecting Export Privileges; William F. McNeil and American Protection Corporation; Order Denying Permission to Related Persons To Apply for or Use Export Licenses

[Federal Register Volume 64, Number 87 (Thursday, May 6, 1999)]
[Notices]
[Pages 24320-24321]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-11416]



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DEPARTMENT OF COMMERCE

Bureau of Export Administration


Action Affecting Export Privileges; William F. McNeil and 
American Protection Corporation; Order Denying Permission to Related 
Persons To Apply for or Use Export Licenses

    William F. McNeil, 5 Woodland Road, 
Pittsfield, Massachusetts 01201, and American Protection 
Corporation, 5 Woodland Road, Pittsfield, 
Massachusetts 01201, and with a mailing address at P.O. Box 4227, 
Pittsfield, Massachusetts 01202-4227
    On November 3, 1997, the Director, Office of Exporter Services 
Bureau of Export Administration, U.S. Department of Commerce, issued an 
Order denying William F. McNeil's (McNeil) export privileges until 
August 8, 2001 (62 FR 61269, November 17, 1997). The Order was based on 
McNeil August 8, 1996 conviction for violating the International 
Emergency Economic Powers Act (currently codified at 50 U.S.C.A. 1701-
1706 (1991 & Supp. 1998)) (IEEPA), and was issued pursuant to Section 
11(h) of the Export Administration Act of 1979, as amended (currently 
codified at 50 U.S.C.A. app. 2401-2490 (1991 & Supp. 1998)) (the Act), 
\1\ and Sections 766.25 and 750.8(a) of the Export Administration 
Regulations (15 CFR parts 730-774) (1998)) (the Regulations). Section 
11(h)(2) of the Act provides that any person related, through 
affiliation, ownership, control, or position of responsibility, to a 
person who has been denied export privileges as a result of a 
conviction for violating IEEPA, may, at the discretion of the Secretary 
of Commerce,\2\ be denied export privileges as well.
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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)), August 13, 1997 (3 CFR, 1997 Comp. 306 
(1998)) and August 13, 1998 (63 FR 44121, August 17, 1998), 
continued the Export Administration Regulations in effect under 
IEEPA.
    \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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    On March 31, 1998, American Protection Corporation was notified, 
pursuant to Section 766.23 of the Regulations, that the Bureau of 
Export Administration, U.S. Department of Commerce, has reason to 
believe that it is related to William McNeil through ownership, 
control, position of responsibility, affiliation, or other connection 
in the conduct of trade or business, and that the order issued against 
McNeil should, in order to prevent evasion, also be made applicable to 
American Protection Corporation.
    American Protection Corporation responded to BXA's notice on April 
6, 1998 by letter signed by McNeil. McNeil stated in the letter that he 
is the sole owner and only permanent employee of American Protection 
Corporation. McNeil also stated that American Protection Corporation 
has not exported any goods since the denial order against him was 
issued on November 3, 1997, and that it will not export any goods until 
the denial order is lifted. This unsupported statement by McNeil is not 
sufficient, however, to ensure that American Protection Corporation 
will not be used to evade the order denying McNeil's export privileges. 
McNeil still is sole owner of American Protection Corporation, and 
absent a related person order, he could easily use American Protection 
Corporation to export to his benefit, thereby evading the terms of the 
order against him.
    Therefore, I hereby find that American Protection Corporation is 
related to William F. McNeil, a person denied all U.S. export 
privileges until August 8, 2001, through ownership, control, position 
of responsibility, affiliation, or other connection in the conduct of 
trade or business, and that, in order to prevent evasion, the denial 
order against McNeil issued on November 3, 1997, should also be made 
applicable to American Protection Corporation.
    Accordingly, the Order of November 3, 1997, denying McNeil 
permission to apply for or use any export license, including any 
License Exception, is hereby amended to read as follows:
    It is ordered:
    I. Until August 8, 2001, William F. McNeil, #5 Woodland Road, 
Pittsfield, Massachusetts 01201, and American Protection Corporation, 
#5 Woodland Road, Pittsfield, Massachusetts 01201, and with a mailing 
address at P.O. Box 4227, Pittsfield, Massachusetts 01202-4227, 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 Stats 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 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 persons any 
item subject to the Regulations;
    B. Take any action that facilitates the acquisition or attempted 
acquisition by the denied persons 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 transaction whereby the denied persons acquire or 
attempt 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 persons of any item subject to 
the Regulations that has been exported from the United States;
    D. Obtain from the denied persons 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 persons, or 
service any item, of whatever origin, that is owned, possessed or 
controlled by the denied persons 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, corporation, or 
business organization related to McNeil or to American Protection 
Corporation 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

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subject to the Regulations where the only items involved that are 
subject to the Regulations are the foreign-produced direct product of 
U.S.-origin technology.
    V. This Order is effective immediately and shall remain in effect 
until August 8, 2001.
    VI. A copy of this Order shall be delivered to McNeil and to 
American Protection Corporation. This Order shall be published in the 
Federal Register.

    Dated: April 27, 1999.
Eileen M. Albanese,
Director, Office of Exporter Services.
[FR Doc. 99-11416 Filed 5-5-99; 8:45 am]
BILLING CODE 3510-DT-M