WPCL k}"MV"c֬ΛT .Wz~ ٿg}ۜf/^NSW3t2/:Ms2im^~zw!` Fӕ"'>džxej/HR۠g)!5_Mx,3?4ꦸ& W3KZ&h xF2$U1IF۵-]2?g M>oD*NܗȺ,Ap3W-Հ.8J ŘXi|f\j?@$aRC9Zw׹_ %83|~ (jؒO[W 8#bqBi!X_j1aq-uP.Kl;w^4AB۝G$Ab^HٔV/qT0c{ Nl r,N0{UB % 0LcN 0DUVUHKw4UVUVUVfUVUVUVhUVUVUVjU>UVUVT 0UVYUVUVUV[UVUVUV]UV D3  B< DMY D-UN!UH UVhUVUVUVjUVUVUVlUVUV UVn UV UV!UVp!UV!UV"UVr"UV"UV#UVt#UV#UV $UVv$UV$"%UV)&UV&UV&UV+'UV'UV'UV-(UV(UV(UV/)UV)UV) D51*UVf*UV*UH+UVZ+UV+UV,UV\,UV,UV-UV^-UV-UV .UV`.UV.UV /UVb/ B/UH/ 0A0UH^0UH0UH0UH61UH~1UH1UH2!V2UHw3UH3UH4UHO4UH4UH4  '5UH25UHz5UH5UH 6UHR6UH6UH6UH*7UHr7^ 7UH7UH8UHV8UH8UH8UH.9UHv9UH9UH:UHN:UH:UH:UH&;UHn;UH;UH;UHF<UH<UH<= m =7=4?= 1s=U@>UN@>UN>UN> 72*? 1u\? 72?#@ 0cA 0'BBC D D5!D BVD D5sD BDDDD 1E 72hFhFhFhFhF D5F BF D1F D5G B*RG D5|G B*G D5G B*H D5:H B*oH D5H B7H B7I CTimes New Roman Bold Italic+ON  0Times New Roman BoldS6\8\3|x)ON   >Times New Roman Bold Italic)ON   >Times New Roman Bold Italic)ON   >Times New Roman Bold Italic)ON   >Times New Roman Bold Italic)ON   >Times New Roman Bold 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Bold_+ON  0Times New Roman Bold+ON  0Times New Roman Bold+ON  0Times New Roman Bold+ON  0Times New Roman Bold+ON  0Times New Roman Bold+ON  0Times New Roman Bold+ON  0Times New Roman Bold+ON  0Times New Roman Bold+ON  0Times New Roman Boldn6s +ON  0Times New Roman Bold+ON  0Times New Roman Bold+ON  0Times New Roman Bold+ON  0Times New Roman Bold+ON  0Times New Roman Bold+ON  0Times New Roman Bold+ON  0Times New Roman Bold+ON  0Times New Roman Bold+ON  0Times New Roman Bold+ON  0Times New Roman Bold+ON  0Times New Roman Bold+ON  0Times New Roman Bold+ON  0Times New Roman Bold+ON  0Times New Roman Bold+ON  0Times New Roman Bold+ON  0Times New Roman Bold+ON  0Times New Roman Bold+ON  0Times New Roman Bold+ON  0Times New Roman BoldU declarantaffiant(CEMU]emu}AutoList1(1)(1)(1)(1)(1)(1)(1)(1)'n2 Z(Times New Roman (hH  Z 6Times New Roman Regular(9 Z6Times New Roman Regular(hH  Z6Times New Roman Regular(1)3#37=CIQYag1.a.i.(1)(a)(i)1)a)i)HP LaserJet 4000 Series PS0(;3$2#  0  .3  0  (3%$  !%Xx]XXX%&x%X%Xx]    &    %(%Xe1XXX%&k%X%Xe1   _%%%&k AdministrativeEnforcementProceedings  V(#SupplementNo.1toPart766"page  19      x)!dxdxP Pd)!dxdx d  %'%Xe1XXX%&k%X%Xe1   _%%%&k AdministrativeEnforcementProceedings(#SupplementNo.2toPart766page  1  ( CEMU]emu}AutoList2(a)(a)(a)(a)(a)(a)(a)(a)(a))!dxdx d)! dxdx)!dxdx&0 d d)!dxdx&P d d)!dxdx&p d Pd)!dxdx&p Pd d)!dxdx3+0 d d d3+0 d d dd ddd(d2d   Finaldecision.Adecisionororderassessinga 0@ civilpenalty,denialofexportprivilegesorother A sanction,orotherwisedisposingofordismissing B acase,whichisnotsubjecttofurtherreview C underthispart,butwhichissubjecttocollection hD proceedingsorjudicialreviewinanappropriate h@E Federaldistrictcourtasauthorizedbylaw. @F   Initialdecision.Adecisionofthe H administrativelawjudgeinproceedingsinvolving I violationsrelatingtopart760oftheEAR,which xJ issubjecttoappellatereviewbytheUnder xPK SecretaryofCommerceforIndustryandSecurity, P (L butwhichbecomesthefinaldecisioninthe (!M absenceofsuchanappeal. "N   Party.BISandanypersonnamedasa #P respondentunderthispart. $`Q   Recommendeddecision.Adecisionofthe 8& S administrativelawjudgeinproceedingsinvolving ' T violationsotherthanthoserelatingtopart760of '!U theEAR,whichissubjecttoreviewbytheUnder ("V SecretaryofCommerceforIndustryandSecurity, )p#W whoissuesawrittenorderaffirming,modifying p*H$X orvacatingtherecommendeddecision. H+ %Y   ,%Z  F Respondent.Anypersonnamedasthesubject ( ofachargingletter,proposedchargingletter,  temporarydenialorder,orotherorderproposed  orissuedunderthispart.  UnderSecretary.TheUnderSecretaryfor ` 8 IndustryandSecurity,UnitedStatesDepartment 8  ofCommerce.       766.3  # p  INSTITUTIONOFADMINISTRATIVE H  ENFORCEMENTPROCEEDINGS     $  &Z %%%&k(a) @ Chargingletters#%&k% %&Z$#   $TheDirectoroftheOfficeofExport ~V АEnforcement(OEE)&k%%%&kԀortheDirectoroftheOffice V. ofAntiboycottCompliance(OAC),as . appropriate,orsuchotherDepartmentof  Commerceofficialasmaybedesignatedbythe  AssistantSecretaryofCommerceforExport  Enforcement,maybeginadministrative f enforcementproceedingsunderthispartby f> issuingachargingletterinthenameofBIS. > SupplementsNos.1and2tothispartdescribe  howBIStypicallyexercisesitsdiscretion  regardingtheissuanceofchargingletters.The  charginglettershallconstitutetheformal v complaintandwillstatethatthereisreasonto vN believethataviolationoftheEAA,theEAR,or N & anyorder,licenseorauthorizationissued &!  thereunder,hasoccurred.Itwillsetforththe !! essentialfactsabouttheallegedviolation,referto "" thespecificregulatoryorotherprovisions ## involved,andgivenoticeofthesanctions $^$ availableunderpart764oftheEAR.The ^%6% chargingletterwillinformtherespondentthat 6& & failuretoanswerthechargesasprovidedin ' ' 766.6ofthispartwillbetreatedasadefault '!( under766.7ofthispart,thattherespondentis (") entitledtoahearingifawrittendemandforoneis )n#* requestedwiththeanswer,andthatthe n*F$+ respondentmayberepresentedbycounsel,orby F+%, otherauthorizedrepresentativewhohasapower ,%- ofattorneytorepresenttherespondent.Acopy (- ofthecharginglettershallbefiledwiththe . administrativelawjudge,whichfilingshalltoll / therunningoftheapplicablestatuteof 0 limitations.Charginglettersmaybeamendedor  `1 supplementedatanytimebeforeanansweris ` 82 filed,or,withpermissionoftheadministrative 8 3 lawjudge,afterwards.BISmayunilaterally  4 withdrawcharginglettersatanytime,by  5 notifyingtherespondentandtheadministrative  6 lawjudge. p7 #%&k%%&k›%#   &Z %%%&k(b)0 @ Noticeofissuanceofchargingletter H 9 institutingadministrativeenforcement  : proceeding#%&k% % &Z/#  ; /Arespondentshallbenotifiedoftheissuanceof z = achargingletter,oranyamendmentor zR> supplementthereto: R*? &%%%&k(1) D #%&k%%&j1#Bymailingacopybyregisteredorcertified A mailaddressedtotherespondentatthe B respondent'slastknownaddress; C `&%%%&k(2) D #%&k%%`&n2#Byleavingacopywiththerespondentorwith f>E anofficer,amanagingorgeneralagent,orany BF otheragentauthorizedbyappointmentorbylaw G toreceiveserviceofprocessfortherespondent; H or I a&%%%&k(3) D #%&k%%a&3#Byleavingacopywithapersonofsuitable zRK ageanddiscretionwhoresidesattherespondent's V .L lastknowndwelling. .!M b&%%%&k(4) D #%&k%%b&4#Deliveryofacopyofthechargingletter,if "O madeinthemannerdescribedinparagraph(b)(2) #P or(3)ofthissection,shallbeevidencedbya $jQ certificateofservicesignedbythepersonmaking j%BR suchservice,statingthemethodofserviceandthe B& S identityofthepersonwithwhomthecharging ' T letterwasleft.Thecertificateofserviceshallbe '!U filedwiththeadministrativelawjudge. ("V    &Z %%%&k &,%Z (c) @D Date#%&k% % &Zk7# ( _7Thedateofserviceofnoticeoftheissuanceofa  chargingletterinstitutinganadministrative  enforcementproceeding,orserviceofnoticeof  ^ theissuanceofasupplementoramendmenttoa ^ 6 chargingletter,isthedateofitsdelivery,orofits 6  attempteddeliveryifdeliveryisrefused.       766.4  9 n  REPRESENTATION  F  9Arespondentindividualmayappearand   participateinperson,acorporationbyaduly   authorizedofficeroremployee,andapartnership ~  byapartner.Ifarespondentisrepresentedby ~V counsel,counselshallbeamemberingood V. standingofthebarofanyState,Commonwealth . orTerritoryoftheUnitedStates,oroftheDistrict  ofColumbia,orbelicensedtopracticelawinthe  countryinwhichcounselresidesifnottheUnited  States.Arespondentpersonally,orthrough f counselorotherrepresentative,shallfileanotice f> ofappearancewiththeadministrativelawjudge. > BISwillberepresentedbytheOfficeofChief  CounselforIndustryandSecurity,U.S.  DepartmentofCommerce.      766.5  > N & FILINGANDSERVICEOFPAPERS !! OTHERTHANCHARGINGLETTER ""  >  &Z %%%&k(a) @ Filing#%&k% %&Z># $^$ >Allpaperstobefiledshallbeaddressedto: 4& & 0 F EARAdministrativeEnforcementProceedings'!(FF  F U.S.CoastGuard,ALJDocketingCenter (")  F 40S.GayStreet )l#*  F Baltimore,Maryland212024022 l*D$+ orsuchotherplaceastheadministrativelaw ,%- judgemaydesignate.FilingbyUnitedStates (- mail,firstclasspostageprepaid,byexpressor . equivalentparceldeliveryservice,orbyhand / delivery,isacceptable.Filingbymailfroma 0 foreigncountryshallbebyairmail.Inaddition,  `1 theadministrativelawjudgemayauthorizefiling ` 82 ofpapersbyfacsimileorotherelectronicmeans, 8 3 providedthatahardcopyofanysuchpaperis  4 subsequentlyfiled.Acopyofeachpaperfiled  5 shallbesimultaneouslyservedoneachparty.  6   &Z %%%&k  (b) @ Service#%&k% %&ZC# pH 8 CServiceshallbemadebypersonaldeliveryorby  : mailingonecopyofeachpapertoeachpartyin  ; theproceeding.Servicebydeliveryserviceor  < facsimile,inthemannersetforthinparagraph(a) ~ = ofthissection,isacceptable.ServiceonBIS ~V> shallbeaddressedto: V.?   ChiefCounselforIndustryandSecurity A   RoomH-3839 B   U.S.DepartmentofCommerce C 0  14thStreetandConstitutionAvenue,N.W. fD Washington,D.C.20230f>E(#(# Serviceonarespondentshallbetotheaddressto G whichthechargingletterwassentortosuch H otheraddressasrespondentmayprovide.When I apartyhasappearedbycounselorother vJ representative,serviceoncounselorother vNK representativeshallconstituteserviceonthat N &L party. &!M   &Z %%%&k(c) @D Date#%&k% %&ZH# "O HThedateoffilingorserviceisthedaywhenthe $\Q papersaredepositedinthemailoraredelivered \%4R inperson,bydeliveryservice,orbyfacsimile. 4& S   &Z %%%&k(d) @ Certificateofservice#%&k% %&ZI# '!U IAcertificateofservicesignedbytheparty )j#W makingservice,statingthedateandmannerof j*B$X service,shallaccompanyeverypaper,otherthan B+%Y thechargingletter,filedandservedonparties. ,%Z Ї  &Z %%%&k(e) @D Computingperiodoftime#%&k% %&ZK# ( KIncomputinganyperiodoftimeprescribedor  allowedbythispartorbyorderofthe  administrativelawjudgeortheUnderSecretary,  ^ thedayoftheact,event,ordefaultfromwhich ^ 6 thedesignatedperiodoftimebeginstorunisnot 6  tobeincluded.Thelastdayoftheperiodso   computedistobeincludedunlessitisaSaturday,   aSunday,oralegalholiday(asdefinedinRule    6(a)oftheFederalRulesofCivilProcedure),in n  whichcasetheperiodrunsuntiltheendofthe nF  nextdaywhichisneitheraSaturday,aSunday, F  noralegalholiday.IntermediateSaturdays,   Sundays,andlegalholidaysareexcludedfromthe   computationwhentheperiodoftimeprescribed   orallowedissevendaysorless. ~      766.6  P . ANSWERANDDEMANDFORHEARING    P  &Z %%%&k(a) @r Whentoanswer#%&k% %&ZP# f PTherespondentmustanswerthechargingletter < within30daysafterbeingservedwithnoticeof  theissuanceofachargingletterinstitutingan  administrativeenforcementproceeding,orwithin  30daysofnoticeofanysupplementor t amendmenttoachargingletter,unlesstimeis tL extendedunder766.16ofthispart. L $   &Z %%%&k(b) @r Contentsofanswer#%&k% %&ZS# !! STheanswermustberesponsivetothecharging ## letterandmustfullysetforththenatureofthe $Z$ respondent'sdefenseordefenses.Theanswer Z%2% mustadmitordenyspecificallyeachseparate 2& & allegationofthechargingletter;iftherespondent  ' ' iswithoutknowledge,theanswermustsostate '!( andwilloperateasadenial.Failuretodenyor (") controvertaparticularallegationwillbedeemed )j#* anadmissionofthatallegation.Theanswermust j*B$+ alsosetforthanyadditionalornewmatterthe B+%, respondentbelievessupportsadefenseorclaim ,%- ofmitigation.Anydefenseorpartialdefensenot (- specificallysetforthintheanswershallbe . Аdeemedwaived,andevidencethereonmaybe / refused,exceptforgoodcauseshown. 0    (c) @D Demandforhearing  ` 82 WIftherespondentdesiresahearing,awritten  4 demandforonemustbesubmittedwiththe  5 answer.AnydemandbyBISforahearingmust  6 befiledwiththeadministrativelawjudgewithin n7 30daysafterserviceoftheanswer.Failureto nF 8 makeatimelywrittendemandforahearingshall F 9 bedeemedawaiveroftheparty'srighttoa  : hearing,exceptforgoodcauseshown.Ifnoparty  ; demandsahearing,thematterwillgoforwardin  < accordancewiththeproceduressetforthin ~ = А766.15ofthispart. ~V>   &Z %%%&k(d) @ Englishlanguagerequired#%&k% %&ZZ# .@ ZTheanswer,allotherpapers,andalldocumentary B evidencemustbesubmittedinEnglish,or C translationsintoEnglishmustbefiledandserved dD atthesametime. d<E     766.7  N\ H DEFAULT  tJ ^\  &Z %%%&k(a) @ General#%&k% %&Z\# L $L \Failureoftherespondenttofileananswerwithin !N thetimeprovidedconstitutesawaiverofthe "O respondent'srighttoappearandcontestthe #P allegationsinthechargingletter.Insuchevent, $ZQ theadministrativelawjudge,onBIS'smotionand Z%2R withoutfurthernoticetotherespondent,shall 2& S findthefactstobeasallegedinthecharging  ' T letterandrenderaninitialorrecommended '!U decisioncontainingfindingsoffactand ("V appropriateconclusionsoflawandissueor )j#W recommendanorderimposingappropriate j*B$X sanctions.Thedecisionandordershallbesubject B+%Y toreviewbytheUnderSecretaryinaccordance ,%Z withtheapplicableproceduressetforthin ( 766.21or766.22ofthispart.    &Z %%%&k(b) @ PetitiontoSetAsideDefault#%&k% %&ZDa#  8ac&%%%&k(1)  Procedure.#%&k%%c&a#Uponpetitionfiledbya ^ 6 respondentagainstwhomadefaultorderhasbeen :  issued,whichpetitionisaccompaniedbyan   answermeetingtherequirementsof766.6(b)of   thispart,theUnderSecretarymay,aftergivingall    partiesanopportunitytocomment,andforgood r  causeshown,setasidethedefaultandvacatethe rJ  orderenteredthereonandremandthematterto J"  theadministrativelawjudgeforfurther "  proceedings.   d&%%%&k(2) r Timelimits.#%&k%%d&d#ԀApetitionunderthissection   mustbemadewithinoneyearofthedateofentry ^ oftheorderwhichthepetitionseekstohave ^6 vacated. 6     766.8  e  SUMMARYDECISION  nF eAtanytimeafteraproceedinghasbeeninitiated,  apartymaymoveforasummarydecision  disposingofsomeoralloftheissues.The  administrativelawjudgemayrenderaninitialor ~ recommendeddecisionandissueorrecommend ~V anorderiftheentirerecordshows,astothe V . issue(s)underconsideration: .!   F (a) r Thatthereisnogenuineissueastoany "" materialfact;and ##  F (b)  Thatthemovingpartyisentitledtoa f%>% summarydecisionasamatteroflaw. h  >& &  &,%-     766.9  _i (- DISCOVERY  / oi  &Z %%%&k(a) @ General#%&k% %&Zi#  `1 iThepartiesareencouragedtoengageinvoluntary 6 3 discoveryregardinganymatter,notprivileged,  4 whichisrelevanttothesubjectmatterofthe  5 pendingproceeding.Theprovisionsofthe  6 FederalRulesofCivilProcedurerelatingto n7 discoveryapplytotheextentconsistentwiththis nF 8 partandexceptasotherwiseprovidedbythe F 9 administrativelawjudgeorbywaiveror  : agreementoftheparties.Theadministrativelaw  ; judgemaymakeanyorderwhichjusticerequires  < toprotectapartyorpersonfromannoyance, ~ = embarrassment,oppression,orundueburdenor ~V> expense.Theseordersmayincludelimitationson V.? thescope,method,timeandplaceofdiscovery, .@ andprovisionsforprotectingtheconfidentiality A ofclassifiedorotherwisesensitiveinformation. B   &Z %%%&k(b)0 @ Interrogatoriesandrequestsforadmission fD orproductionofdocuments#%&k% %&Zn# d<E nApartymayserveonanypartyinterrogatories, G requestsforadmission,orrequestsforproduction H ofdocumentsforinspectionandcopying,anda I partyconcernedmayapplytotheadministrative rJ lawjudgeforsuchenforcementorprotective rJK orderasthatpartydeemswarrantedwithrespect J "L tosuchdiscovery.Theserviceofadiscovery "!M requestshallbemadeatleast20daysbeforethe !N scheduleddateofthehearingunlessthe "O administrativelawjudgespecifiesashortertime #P period.Copiesofinterrogatories,requestsfor $ZQ admissionandrequestsforproductionof Z%2R documentsandresponsestheretoshallbeserved 2& S onallparties,andacopyofthecertificateof  ' T serviceshallbefiledwiththeadministrativelaw '!U judge.Mattersoffactorlawofwhichadmission ("V isrequestedshallbedeemedadmittedunless, )j#W withinaperioddesignatedintherequest(atleast j*B$X 10daysafterservice,orwithinsuchadditional B+%Y timeastheadministrativelawjudgemayallow), ,%Z thepartytowhomtherequestisdirectedserves ( upontherequestingpartyaswornstatement  eitherdenyingspecificallythemattersofwhich  admissionisrequestedorsettingforthindetail  thereasonswhythepartytowhomtherequestis  ` directedcannottruthfullyeitheradmitordeny ` 8 suchmatters. 8    &Z %%%&k(c) @ Depositions#%&k% %&Zv#   vUponapplicationofapartyandforgoodcause n  shown,theadministrativelawjudgemayorder nF  thetakingofthetestimonyofanypersonby F  depositionandtheproductionofspecified   documentsormaterialsbythepersonatthe   deposition.Theapplicationshallstatethe   purposeofthedepositionandsetforththefacts ~  soughttobeestablishedthroughthedeposition. ~V   &Z %%%&k(d) @r Enforcement#%&k% %&Z8y# . ,yTheadministrativelawjudgemayorderapartyto  answerdesignatedquestions,toproducespecified  documentsorthingsortotakeanyotheractionin d responsetoaproperdiscoveryrequest.Ifaparty d< doesnotcomplywithsuchanorder,the < administrativelawjudgemaymakea  determinationorenteranyorderintheproceeding  asthejudgedeemsreasonableandappropriate.  Thejudgemaystrikerelatedchargesordefenses t inwholeorinpartormaytakeparticularfacts tL relatingtothediscoveryrequesttowhichthe L $ partyfailedorrefusedtorespondasbeing $!  establishedforpurposesoftheproceedingin !! accordancewiththecontentionsoftheparty "" seekingdiscovery.Inaddition,enforcementbya ## districtcourtoftheUnitedStatesmaybesought $\$ undersection12(a)oftheEAA. \%4%     766.10  %~  ' ' SUBPOENAS  (") 5~  &Z %%%&k(a) @r Issuance#%&k% %&Z~# l*D$+ ~Upontheapplicationofanyparty,supportedbya ,%- satisfactoryshowingthatthereissubstantial (- reasontobelievethattheevidencewouldnot . otherwisebeavailable,theadministrativelaw / judgewillissuesubpoenasrequiringthe 0 attendanceandtestimonyofwitnessesandthe  `1 productionofsuchbooks,recordsorother ` 82 documentaryorphysicalevidenceforthepurpose 8 3 ofthehearing,asthejudgedeemsrelevantand  4 materialtotheproceedings,andreasonablein  5 scope.  6 &Z %%%&k@7 (b)Service@@  #%&k% %&Z#Ԉ pH 8 Subpoenasissuedbytheadministrativelawjudge  : maybeservedinanyofthemethodssetforthin  ; 766.5(b)ofthispart.  <    &Z %%%&k(c) @D Timing#%&k% % &Z4# ~V> (Applicationsforsubpoenasmustbesubmittedat ,@ least10daysbeforethescheduledhearingor A deposition,unlesstheadministrativelawjudge B determines,forgoodcauseshown,that C extraordinarycircumstanceswarrantashorter dD time. d<E     766.11  H MATTERPROTECTEDAGAINST tJ ЀDISCLOSURE tLK  %  (&Z %%%&k(a) @ Protectivemeasures#%&k% %(&Z҅# $!M ƅItisoftennecessaryforBIStoreceiveand "O considerinformationanddocumentsthatare #P sensitivefromthestandpointofnationalsecurity, $ZQ foreignpolicy,businessconfidentiality,or Z%2R investigativeconcern,andthataretobeprotected 2& S againstdisclosure.Accordingly,andwithout  ' T limitingthediscretionoftheadministrativelaw '!U judgetogiveeffecttoanyotherapplicable ("V privilege,itisproperfortheadministrativelaw )j#W judgetolimitdiscoveryorintroductionof j*B$X evidenceortoissuesuchprotectiveorother B+%Y ordersasinthejudge'sjudgmentmaybe ,%Z consistentwiththeobjectiveofpreventingundue ( disclosureofthesensitivedocumentsor  information.Wheretheadministrativelawjudge  determinesthatdocumentscontainingthe  sensitivematterneedtobemadeavailabletoa  ` respondenttoavoidprejudice,thejudgemay ` 8 directBIStoprepareanunclassifiedand 8  nonsensitivesummaryorextractofthe   documents.Theadministrativelawjudgemay   comparetheextractorsummarywiththeoriginal    toensurethatitissupportedbythesource p  documentandthatitomitsonlysomuchasmust pH  remainclassifiedorundisclosed.Thesummary H  orextractmaybeadmittedasevidenceinthe    record.     )&Z %%%&k(b) @r Arrangementsforaccess#%&k% %)&Z<#   0Iftheadministrativelawjudgedeterminesthat V. thisprocedureisunsatisfactoryandthatclassified . orotherwisesensitivemattermustformpartof  therecordinordertoavoidprejudicetoaparty,  thejudgemayprovidethepartiesopportunityto  makearrangementsthatpermitapartyora f representativetohaveaccesstosuchmatter f> withoutcompromisingsensitiveinformation. > Sucharrangementsmayincludeobtaining  securityclearances,obtaininganationalinterest  determinationunder12(c)oftheEAA,orgiving  counselforapartyaccesstosensitiveinformation v anddocumentssubjecttoassurancesagainst vN furtherdisclosure,includingaprotectiveorder,if N & necessary. &!      766.12  ## PREHEARINGCONFERENCE ^%6%  *&Z %%%&k(a)#%&k% %*&Z4#ԀTheadministrativelawjudge,onthejudge's ' ' ownmotionoronrequestofaparty,maydirect '!( thepartiestoparticipateinaprehearing (") conference,eitherinpersonorbytelephone,to )p#* consider: p*H$+ e&%%%&k(1)  #%&k%%e&#Simplificationofissues;  ,%- Їf&%%%&k(2) D #%&k%%f&##Thenecessityordesirabilityofamendments (- topleadings; . h&%%%&k(3) D #%&k%%h&ה#Obtainingstipulationsoffactandof 0 documentstoavoidunnecessaryproof;or  h1 i&%%%&k(4) D #%&k%%i&#Suchothermattersasmayexpeditethe @ 3 dispositionoftheproceedings.  4 +&Z %%%&k(b)#%&k% %+&Za#ԀTheadministrativelawjudgemayorderthe  6 conferenceproceedingstoberecorded |7 electronicallyortakenbyareporter,transcribed |T 8 andfiledwiththejudge. T, 9 ,&Z %%%&k(c)#%&k% %,&Z#ԀIfaprehearingconferenceisimpracticable,  ; theadministrativelawjudgemaydirectthe  < partiestocorrespondwiththejudgetoachieve  = thepurposesofsuchaconference. f>  (d) Theadministrativelawjudgewillpreparea >@ summaryofanyactionsagreedonortaken A pursuanttothissection.Thesummarywill B includeanywrittenstipulationsoragreements C madebytheparties. xD    D    p     766.13 W (G HEARINGS I  g  -&Z %%%&k(a) @ Scheduling#%&k% %-&Z# `K ךTheadministrativelawjudge,byagreementwith 6!M thepartiesoruponnoticetoallpartiesofnotless "N than30days,willscheduleahearing.All "O hearingswillbeheldinWashington,D.C.,unless #P theadministrativelawjudgedetermines,forgood $nQ causeshown,thatanotherlocationwouldbetter n%FR servetheinterestsofjustice. F& S   .&Z %%%&k(b) @ Hearingprocedure#%&k% %.&ZD# '!U 8Hearingswillbeconductedinafairandimpartial )|#W mannerbytheadministrativelawjudge,whomay |*T$X limitattendanceatanyhearingorportionthereof T+,%Y totheparties,theirrepresentativesandwitnesses ,,&Z ifthejudgedeemsthisnecessaryoradvisablein ( ordertoprotectsensitivematter(see766.11of  thispart)fromimproperdisclosure.Therulesof  evidenceprevailingincourtsoflawdonotapply,  andallevidentiarymaterialdeemedbythe  ` administrativelawjudgetoberelevantand ` 8 materialtotheproceedingandnotunduly 8  repetitiouswillbereceivedandgivenappropriate   weight.     /&Z %%%&k(c) @ Testimonyandrecord#%&k% %/&Z2# p  &Witnesseswilltestifyunderoathoraffirmation. F  Averbatimrecordofthehearingandofanyother   oralproceedingswillbetakenbyreporterorby   electronicrecording,transcribedandfiledwith   theadministrativelawjudge.Arespondentmay ~  examinethetranscriptandmayobtainacopyby ~V payinganyapplicablecosts.Uponsuchtermsas V. theadministrativelawjudgedeemsjust,thejudge . maydirectthatthetestimonyofanypersonbe  takenbydepositionandmayadmitanaffidavitor  declarationasevidence,providedthatany  affidavitsordeclarationshavebeenfiledand f servedonthepartiessufficientlyinadvanceof f> thehearingtopermitapartytofileandservean > objectiontheretoonthegroundsthatitis  necessarythattheaffiantordeclaranttestifyat  thehearingandbesubjecttocrossexamination.    0&Z %%%&k(d) @r Failuretoappear#%&k% %0&ZY# vN MIfapartyfailstoappearinpersonorbycounselat $!  ascheduledhearing,thehearingmaynevertheless !! proceed,andthatparty'sfailuretoappearwillnot "" affectthevalidityofthehearingorany ## proceedingsoractiontakenthereafter. $\$     766.14 7  ' ' INTERLOCUTORYREVIEWOF (") RULINGS )l#*  G1&Z %%%&k(a)#%&k% %1&Z#ԀAttherequestofaparty,oronthejudge's D+%, owninitiative,theadministrativelawjudgemay ,%- certifytotheUnderSecretaryforreviewaruling (- thatdoesnotfinallydisposeofaproceeding,if . theadministrativelawjudgedeterminesthat / immediatereviewmayhastenorfacilitatethe 0 finaldispositionofthematter.  `1 2&Z %%%&k(b)#%&k% %2&Z#ԀUponcertificationtotheUnderSecretaryof 8 3 theinterlocutoryrulingforreview,thepartieswill  4 have10daystofileandservebriefsstatingtheir  5 positions,andfivedaystofileandservereplies,  6 followingwhichtheUnderSecretarywilldecide r7 thematterpromptly. rJ 8     766.15 ɬ  ; PROCEEDINGWITHOUTAHEARING  =  ٬Ifthepartieshavewaivedahearing,thecasewill Z2? bedecidedontherecordbytheadministrative 2 @ lawjudge.Proceedingwithoutahearingdoesnot  A relievethepartiesfromthenecessityofproving B thefactssupportingtheirchargesordefenses. C Affidavitsordeclarations,depositions, jD admissions,answerstointerrogatoriesand jBE stipulationsmaysupplementotherdocumentary BF evidenceintherecord.Theadministrativelaw G judgewillgiveeachpartyreasonableopportunity H tofilerebuttalevidence. I     766.16 2 R *L PROCEDURALSTIPULATIONS; "N EXTENSIONOFTIME "O  B  3&Z %%%&k(a) @D Proceduralstipulations#%&k% %3&Z# $bQ Unlessotherwiseordered,awrittenstipulation 8& S agreedtobyallpartiesandfiledwiththe ' T administrativelawjudgewillmodifyany '!U proceduresestablishedbythispart. ("V   4&Z %%%&k(b) @ Extensionoftime#%&k% %4&Z# p*H$X j&%%%&k(1)  #%&k%%j&#Thepartiesmayextendanyapplicabletime ,%Z limitation,bystipulationfiledwiththe ( administrativelawjudgebeforethetime  limitationexpires.  k&%%%&k(2) r #%&k%%k&J#Theadministrativelawjudgemay,onthe  ` judge'sowninitiativeoruponapplicationbyany d < party,eitherbeforeoraftertheexpirationofany <  applicabletimelimitation,extendthetimewithin   whichtofileandserveananswertoacharging   letterordoanyotheractrequiredbythispart.        766.17 9 L$  DECISIONOFTHEADMINISTRATIVE   LAWJUDGE    I  5&Z %%%&k(a) @r Predecisionalmatters#%&k% %5&Z# \ Exceptfordefaultproceedingsunder766.7of 2  thispart,theadministrativelawjudgewillgive   thepartiesreasonableopportunitytosubmitthe  following,whichwillbemadeapartofthe  record: j @  l&%%%&k(1) r #%&k%%l&ɸ#Exceptionstoanyrulingbythejudgeorto  theadmissibilityofevidenceprofferedatthe  hearing;  m&%%%&k(2) r #%&k%%m&#Proposedfindingsoffactandconclusions ~V oflaw; Z 2 o&%%%&k(3) r #%&k%%o&i#Supportinglegalargumentsforthe  "! exceptionsandproposedfindingsandconclusions "" submitted;and ## p&%%%&k(4) r #%&k%%p&[#Aproposedorder. n%F%   q&%%%&k(#%&k%%q&#6&Z %%%&kb) @r Decisionandorder#%&k% %6&Z$# "' ' ջAfterconsideringtheentirerecordinthe (") proceeding,theadministrativelawjudgewill )#* issueawrittendecision. *Z$+ r&%%%&k(1) r Initialdecision.#%&k%%r&]#ԀForproceedingscharging 2, &- violationsrelatingtopart760oftheEAR,the (- decisionrenderedshallbeaninitialdecision.The . decisionwillincludefindingsoffact,conclusions / oflaw,andfindingsastowhethertherehasbeen 0 aviolationoftheEAA,theEAR,oranyorder,  `1 licenseorauthorizationissuedthereunder.Ifthe ` 82 administrativelawjudgefindsthattheevidence 8 3 ofrecordisinsufficienttosustainafindingthata  4 violationhasoccurredwithrespecttooneormore  5 charges,thejudgeshallorderdismissalofthe  6 chargesinwholeorinpart,asappropriate.Ifthe p7 administrativelawjudgefindsthatoneormore pH 8 violationshavebeencommitted,thejudgemay H 9 issueanorderimposingadministrativesanctions,   : asprovidedinpart764oftheEAR.Thedecision  ; andordershallbeservedoneachparty,andshall  < becomeeffectiveasthefinaldecisionofthe  = Department30daysafterservice,unlessan X> appealisfiledinaccordancewith766.21ofthis X0? part. 0@ s&%%%&k(2)  Recommendeddecision.#%&k%%s&8#Forproceedings B notinvolvingviolationsrelatingtopart760ofthe C EAR,thedecisionrenderedshallbea lD recommendeddecision.Thedecisionwillinclude lDE recommendedfindingsoffact,conclusionsof DF law,andfindingsastowhethertherehasbeena G violationoftheEAA,theEARoranyorder, H licenseorauthorizationissuedthereunder.Ifthe I administrativelawjudgefindsthattheevidence |J ofrecordisinsufficienttosustainarecommended |TK findingthataviolationhasoccurredwithrespect T ,L tooneormorecharges,thejudgeshall ,!M recommenddismissalofanysuchcharge.Ifthe "N administrativelawjudgefindsthatoneormore "O violationshavebeencommitted,thejudgeshall #P recommendanorderimposingadministrative $dQ sanctions,asprovidedinpart764oftheEAR,or d%<R suchotheractionasthejudgedeemsappropriate. <& S Theadministrativelawjudgeshallimmediately ' T certifytherecord,includingtheoriginalcopyof '!U therecommendeddecisionandorder,tothe ("V UnderSecretaryforreviewinaccordancewith )t#W 766.22ofthispart.Theadministrativelaw t*L$X judgeshallalsoimmediatelyservethe L+$%Y recommendeddecisiononallparties.Becauseof $,%Z thetimelimitsestablishedintheEAAforreview ( bytheUnderSecretary,serviceuponpartiesshall  bebypersonaldelivery,expressmailorother  overnightcarrier.    t&%%%&k(#%&k%%t&#c) @D Suspensionofsanctions  ` 8  Anyorderimposingadministrativesanctionsmay   provideforthesuspensionofthesanction   imposed,inwholeorinpartandonsuchtermsof    probationorotherconditionsasthe p  administrativelawjudgeortheUnderSecretary pH  mayspecify.Anysuspensionordermaybe H  modifiedorrevokedbythesigningofficialupon    applicationofBISshowingaviolationofthe   probationarytermsorotherconditions,after   serviceontherespondentofnoticeofthe   applicationinaccordancewiththeservice X provisionsof766.3ofthispart,andwithsuch X0 opportunityforresponseastheresponsible 0 signingofficialinhis/herdiscretionmayallow.  Acopyofanyordermodifyingorrevokingthe  suspensionshallalsobeservedontherespondent  inaccordancewiththeprovisionsof766.3of h thispart. h@   7&Z %%%&k(d) @r Timefordecision#%&k% %7&ZF#  :Administrativeenforcementproceedingsnot  involvingviolationsrelatingtopart760ofthe v EARshallbeconcluded,includingreviewbythe vN UnderSecretaryunder766.22ofthispart, N & Аwithinoneyearofthesubmissionofacharging &!  letter,unlesstheadministrativelawjudge,for !! goodcauseshown,extendssuchperiod.The "" chargingletterwillbedeemedtohavebeen ## submittedtotheadministrativelawjudgeonthe $^$ datetherespondentfilesanansweroronthedate ^%6% BISfilesamotionforadefaultorderpursuantto 6& & 766.7(a)ofthispart,whicheveroccursfirst. ' '  ,%-     766.18 . (- SETTLEMENT /  (  8&Z %%%&k(a) @r Casesmaybesettledbeforeserviceof  `1 achargingletter#%&k% %8&Z# ^ 62 Incasesinwhichsettlementisreachedbefore  4 serviceofachargingletter,aproposedcharging  5 letterwillbeprepared,andasettlementproposal  6 consistingofasettlementagreementandorder l7 willbesubmittedtotheAssistantSecretaryfor lD 8 approvalandsignature.IftheAssistantSecretary D 9 doesnotapprovetheproposal,he/shewillnotify  : thepartiesandthecasewillproceedasthoughno  ; settlementproposalhadbeenmade.Ifthe  < AssistantSecretaryapprovestheproposal,he/she | = willissueanappropriateorder,andnoactionwill |T> berequiredbytheadministrativelawjudge. T,?   9&Z %%%&k(b) @ Casesmayalsobesettledafterservice A ofachargingletter#%&k% %9&Z# B u&%%%&k(1) D #%&k%%u&|#Ifthecaseispendingbeforethe `D administrativelawjudge,thejudgeshallstaythe d<E proceedingsforareasonableperiodoftime, <F usuallynottoexceed30days,uponnotification G bythepartiesthattheyhaveenteredintogood H faithsettlementnegotiations.Theadministrative I lawjudgemay,inhis/herdiscretion,grant tJ additionalstays.Ifsettlementisreached,a tLK proposalwillbesubmittedtotheAssistant L $L Secretaryforapprovalandsignature.Ifthe $!M AssistantSecretaryapprovestheproposal,he/she !N willissueanappropriateorder,andnotifythe "O administrativelawjudgethatthecaseis #P withdrawnfromadjudication.IftheAssistant $\Q Secretarydoesnotapprovetheproposal,he/she \%4R willnotifythepartiesandthecasewillproceedto 4& S adjudicationbytheadministrativelawjudgeas  ' T thoughnosettlementproposalhadbeenmade. '!U v&%%%&k(2) D #%&k%%v&~#IfthecaseispendingbeforetheUnder )l#W Secretaryunder766.21or766.22ofthispart, p*H$X thepartiesmaysubmitasettlementproposalto H+ %Y theUnderSecretaryforapprovalandsignature.  ,%Z IftheUnderSecretaryapprovestheproposal, ( he/shewillissueanappropriateorder.Ifthe  UnderSecretarydoesnotapprovetheproposal,  thecasewillproceedtofinaldecisionin  accordancewith766.21or766.22ofthispart,  ` asappropriate. ` 8 :&Z %%%&k(c)#%&k% %:&ZX#ԀAnyorderdisposingofacasebysettlement   maysuspendtheadministrativesanctionimposed,   inwholeorinpart,onsuchtermsofprobationor    otherconditionsasthesigningofficialmay r  specify.Anysuchsuspensionmaybemodifiedor rJ  revokedbythesigningofficial,inaccordance J"  withtheproceduressetforthin766.17(c)ofthis "  part.   ;&Z %%%&k(d)#%&k% %;&Z#ԀAnyrespondentwhoagreestoanorder   imposinganyadministrativesanctiondoesso \ solelyforthepurposeofresolvingtheclaimsin \4 theadministrativeenforcementproceeding 4  broughtunderthispart.Thisreflectsthefactthat   BIShasneithertheauthoritynorthe  responsibilityforinstituting,conducting,settling,  orotherwisedisposingofcriminalproceedings. l Thatauthorityandresponsibilityarevestedinthe lD AttorneyGeneralandtheDepartmentofJustice. D <&Z %%%&k(e)#%&k% %<&Z~#ԀCasesthataresettledmaynotbereopenedor  appealed.  &k%%%&kXe1X%&k (f) SupplementsNos.1and2tothispart ~V describehowBIStypicallyexercisesits n F discretionregardingthetermsunderwhichit Z!2  iswillingtosettleparticularcases.#%Xe1XXXe1%##%&k%X%Xe1D# F"! @      766.19  $$ REOPENING &j &  Therespondentmaypetitiontheadministrative B("( lawjudgewithinoneyearofthedateofthefinal )") decision,exceptwherethedecisionarisesfroma )#* defaultjudgmentorfromasettlement,toreopen *$+ anadministrativeenforcementproceedingto +z%, receiveanyrelevantandmaterialevidencewhich z,R&- wasunknownorunobtainableatthetimethe (- proceedingwasheld.Thepetitionmustincludea . summaryofsuchevidence,thereasonswhyitis / deemedrelevantandmaterial,andthereasons 0 whyitcouldnothavebeenpresentedatthetime  `1 theproceedingswereheld.Theadministrative ` 82 lawjudgewillgrantordenythepetitionafter 8 3 providingotherpartiesreasonableopportunityto  4 comment.Iftheproceedingisreopened,the  5 administrativelawjudgemaymakesuch  6 arrangementsasthejudgedeemsappropriatefor p7 receivingthenewevidenceandcompletingthe pH 8 record.Theadministrativelawjudgewillthen H 9 issueanewinitialorrecommendeddecisionand   : order,andthecasewillproceedtofinaldecision  ; andorderinaccordancewith766.21or766.22  < ofthispart,asappropriate.  =     766.20 G 0@ RECORDFORDECISIONAND B AVAILABILITYOFDOCUMENTS C  X  =&Z %%%&k(a) @ General#%&k% %=&Z# h@E Thetranscriptofhearings,exhibits,rulings, G orders,allpapersandrequestsfiledinthe H proceedingsand,forpurposesofanyappeal I under766.21ofthispartorreviewunder vJ 766.22ofthispart,thedecisionofthe vNK administrativelawjudgeandsuchsubmissionsas N &L areprovidedforby766.21and766.22ofthis &!M part,willconstitutetherecordandtheexclusive !N basisfordecision.Whenacaseissettledafter "O theserviceofachargingletter,therecordwill #P consistofanyandalloftheforegoing,aswellas $^Q thesettlementagreementandtheorder.Whena ^%6R caseissettledbeforeserviceofachargingletter, 6& S therecordwillconsistoftheproposedcharging ' T letter,thesettlementagreementandtheorder. '!U   >&Z %%%&k(b) @D Restrictedaccess#%&k% %>&Z# )n#W Onthejudge'sownmotion,oronthemotionof D+%Y anyparty,theadministrativelawjudgemaydirect ,%Z thattherebearestrictedaccessportionofthe ( recordforanymaterialintherecordtowhich  publicaccessisrestrictedbylaworbytheterms  ofaprotectiveorderenteredintheproceedings.  Apartyseekingtorestrictaccesstoanyportionof  ` therecordisresponsibleforsubmitting,atthe ` 8 timespecifiedin766.20(c)(2)ofthispart,a 8  versionofthedocumentproposedforpublic   availabilitythatreflectstherequesteddeletion.   Therestrictedaccessportionoftherecordwillbe    placedinaseparatefileandthefilewillbe p  clearlymarkedtoavoidimproperdisclosureand pH  toidentifyitasaportionoftheofficialrecordin H  theproceedings.Theadministrativelawjudge    mayactatanytimetopermitmaterialthat   becomesdeclassifiedorunrestrictedthrough   passageoftimetobetransferredtothe   unrestrictedaccessportionoftherecord. X    (c) @ Availabilityofdocuments  0 w&%%%&k(1)  Scope.#%&k%%w&#   F (i)ForproceedingsstartedonorafterOctober f 12,1979,allchargingletters,answers,initialand f> recommendeddecisions,andordersdisposingof > acasewillbemadeavailableforpublic  inspectionintheBISFreedomofInformation  RecordsInspectionFacility,U.S.Departmentof  Commerce,RoomH-6624,14thStreetand v PennsylvaniaAvenue,N.W.,Washington,D.C. vN 20230.Thecompleterecordfordecision,as N & definedinparagraphs(a)and(b)ofthissection &!  willbemadeavailableonrequest.Inaddition,all !! decisionsoftheUnderSecretaryonappeal "" pursuantto766.22ofthispartandthosefinal ## ordersprovidingfordenial,suspensionor $^$ revocationofexportprivilegesshallbepublished ^%6% intheFederalRegister. 6& & ̀  (ii)ForproceedingsstartedbeforeOctober '!( 12,1979,thepublicavailabilityoftherecordfor (") decisionwillbegovernedbytheapplicable )n#* regulationsineffectwhentheproceedingswere n*F$+ begun. F+%,  ,%- y&%%%&k(2)Timing.#%&k%%y&# (- ̀ D (i)Antiboycottcases.Formattersrelatingto / part760oftheEAR,documentsareavailable 0 immediatelyuponfiling,exceptforanyportionof  `1 therecordforwhicharequestforsegregationis ` 82 made.Partiesthatseektorestrictaccesstoany 8 3 portionoftherecordunderparagraph(b)ofthis  4 sectionmustmakesucharequest,togetherwith  5 thereasonssupportingtheclaimof  6 confidentiality,simultaneouslywiththe p7 submissionofmaterialfortherecord. pH 8     (ii)Othercases.Inallothercases,documents   : willbeavailableonlyafterthefinal  ; administrativedispositionofthecase.Inthese  < cases,partiesdesiringtorestrictaccesstoany  = portionoftherecordunderparagraph(b)ofthis X> sectionmustasserttheirclaimofconfidentiality, X0? togetherwiththereasonsforsupportingthe 0@ claim,beforethecloseoftheproceeding. A       766.21 o  hD APPEALS @F  0  @&Z %%%&k(a) @ Grounds#%&k% %@&Z# H Forproceedingschargingviolationsrelatingto vJ part760oftheEAR,apartymayappealtothe vNK UnderSecretaryfromanorderdisposingofa N &L proceedingoranorderdenyingapetitiontoset &!M asideadefaultorapetitionforreopening,onthe !N grounds: "O Ѐz&%%%&k(1)#%&k%%z&#ԀThatanecessaryfindingoffactisomitted, $^Q erroneousorunsupportedbysubstantialevidence b%:R ofrecord; :& S {&%%%&k(2)#%&k%%{& #ԀThatanecessarylegalconclusionorfinding '!U iscontrarytolaw; ("V |&%%%&k(3)#%&k%%|&G #ԀThatprejudicialproceduralerroroccurred,or v*N$X }&%%%&k(4)#%&k%%}& #Thatthedecisionortheextentofsanctionsis *,&Z arbitrary,capriciousoranabuseofdiscretion. ( Theappealmustspecifythegroundsonwhichthe  appealisbasedandtheprovisionsoftheorder  fromwhichtheappealistaken.    ~&%%%&k(#%&k%%~&n #A&Z %%%&kb) @ Filingofappeal#%&k% %A&Z # ` 8 b Anappealfromanordermustbefiledwiththe   OfficeoftheUnderSecretaryforExport   Administration,BureauofIndustryandSecurity,    U.S.DepartmentofCommerce,RoomH-3898, p  14thStreetandConstitutionAvenue,N.W., pH  Washington,D.C.20230,within30daysafter H  serviceoftheorderappealedfrom.IftheUnder    Secretarycannotactonanappealforanyreason,   theUnderSecretarywilldesignateanother   DepartmentofCommerceofficialtoreceiveand   actontheappeal. X   B&Z %%%&k(c) @ Effectofappeal#%&k% %B&Z# 0 Thefilingofanappealshallnotstaythe  operationofanyorder,unlesstheorderbyits  expresstermssoprovidesorunlesstheUnder f Secretary,uponapplicationbyapartyandwith f> opportunityforresponse,grantsastay. >   C&Z %%%&k(d) @r Appealprocedure#%&k% %C&Z#  TheUnderSecretarynormallywillnothold t hearingsorentertainoralargumentonappeals.A tL fullwrittenstatementinsupportoftheappeal L $ mustbefiledwiththeappealandbe $!  simultaneouslyservedonallparties,whoshall !! have30daysfromservicetofileareply.At "" his/herdiscretion,theUnderSecretarymay ## acceptnewsubmissions,butwillnotordinarily $\$ acceptthosesubmissionsfiledmorethan30days \%4% afterthefilingofthereplytotheappellant'sfirst 4& & submission.  ' '   D&Z %%%&k(e) @ Decisions#%&k% %D&Z-# (") !Thedecisionwillbeinwritingandwillbe j*B$+ accompaniedbyanordersignedbytheUnder B+%, Secretarygivingeffecttothedecision.Theorder ,%- mayeitherdisposeofthecasebyaffirming, (- modifyingorreversingtheorderofthe . administrativelawjudgeormayreferthecase / backtotheadministrativelawjudgeforfurther 0 proceedings.  `1    D    p    766.22 o  4 REVIEWBYUNDERSECRETARY  6    E&Z %%%&k(a) @r Recommendeddecision#%&k% %E&Zk# pH 8 _Forproceedingsnotinvolvingviolationsrelating  : topart760oftheEAR,theadministrativelaw  ; judgeshallimmediatelyrefertherecommended  < decisionandordertotheUnderSecretary. ~ = Becauseofthetimelimitsprovidedunderthe ~V> EAAforreviewbytheUnderSecretary,service V.? oftherecommendeddecisionandorderonthe .@ parties,allpapersfiledbythepartiesinresponse, A andthefinaldecisionoftheUnderSecretarymust B bebypersonaldelivery,facsimile,expressmailor C otherovernightcarrier.IftheUnderSecretary fD cannotactonarecommendeddecisionandorder f>E foranyreason,theUnderSecretarywilldesignate >F anotherDepartmentofCommerceofficialto G receiveandactontherecommendation. H   F&Z %%%&k(b) @D Submissionsbyparties#%&k% %F&Z# vJ Partiesshallhave12daysfromthedateof L $L issuanceoftherecommendeddecisionandorder $!M inwhichtosubmitsimultaneousresponses. !N Partiesthereaftershallhaveeightdaysfrom "O receiptofanyresponse(s)inwhichtosubmit #P replies.Anyresponseorreplymustbereceived $\Q withinthetimespecifiedbytheUnderSecretary. \%4R @  <   G&Z %%%&k(c) @D Finaldecision#%&k% %G&Z{#  ' T oWithin30daysafterreceiptoftherecommended ("V decisionandorder,theUnderSecretaryshall )j#W issueawrittenorderaffirming,modifyingor j*B$X vacatingtherecommendeddecisionandorderof B+%Y theadministrativelawjudge.Ifhe/shevacates ,%Z therecommendeddecisionandorder,theUnder ( Secretarymayreferthecasebacktothe  administrativelawjudgeforfurtherproceedings.  Becauseofthetimelimits,theUnderSecretary's  reviewwillordinarilybelimitedtothewritten  ` recordfordecision,includingthetranscriptofany ` 8 hearing,andanysubmissionsbytheparties 8  concerningtherecommendeddecision.     H&Z %%%&k(d) @ Delivery#%&k% %H&Zr##    f#Thefinaldecisionandimplementingordershall nF  beservedonthepartiesandwillbepublicly F  availableinaccordancewith766.20ofthispart.     I&Z %%%&k(e) @ Appeals#%&k% %I&Z$#   $ThechargedpartymayappealtheUnder |T Secretary'swrittenorderwithin15daystothe T, UnitedStatesCourtofAppealsfortheDistrictof , Columbiapursuantto50U.S.C.app.2412(c)(3).        766.23 o_& d RELATEDPERSONS <  o&  J&Z %%%&k(a) @ General#%&k% %J&Z&#  &Inordertopreventevasion,certaintypesof r ordersunderthispartmaybemadeapplicablenot rJ onlytotherespondent,butalsotootherpersons J " thenorthereafterrelatedtotherespondentby "!  ownership,control,positionofresponsibility, !! affiliation,orotherconnectionintheconductof "" tradeorbusiness.Ordersthatmaybemade ## applicabletorelatedpersonsincludethosethat $Z$ denyoraffectexportprivileges,including Z%2% temporarydenialorders,andthosethatexcludea 2& & respondentfrompracticebeforeBIS.  ' '   K&Z %%%&k(b) @r Procedures#%&k% %K&Zl*# (") `*IfBIShasreasontobelievethatapersonis h*@$+ relatedtotherespondentandthatanorderthatis @+%, beingsoughtorthathasbeenissuedshouldbe ,%- madeapplicabletothatpersoninordertoprevent (- evasionoftheorder,BISshall,exceptinanex . parteproceedingunder766.24(a)ofthispart, / givethatpersonnoticeinaccordancewith 0 А766.5(b)ofthispartandanopportunityto  `1 opposesuchaction.Iftheofficialauthorizedto ` 82 issuetheorderagainsttherespondentfindsthat 8 3 theordershouldbemadeapplicabletothat  4 personinordertopreventevasionoftheorder  5 thatofficialshallissueoramendtheorder  6 accordingly. p7    (c) @ Appeals  H 9 .AnypersonnamedbyBISinanorderasrelated  ; totherespondentmayappealthataction.The  < soleissuestoberaisedandruledoninanysuch ~ = appealarewhetherthepersonsonamedisrelated ~V> totherespondentandwhethertheorderis V.? justifiedinordertopreventevasion. .@ (1)Apersonnamedasrelatedtotherespondent B inanorderissuedpursuantto766.25mayfilean C appealwiththeUnderSecretaryforIndustryand fD Securitypursuanttopart756oftheEAR. f>E (2)Apersonnamedasrelatedtotherespondent G inanorderissuedpursuanttootherprovisionsof H thispartmayfileanappealwiththe I administrativelawjudge. vJ   (i)Iftheordermadeapplicabletotherelated N &L personisforaviolationrelatedtopart760ofthe &!M EAR,therelatedpersonmayfileanappealwith !N theadministrativelawjudge.Therelatedperson "O mayappealtheinitialdecisionandorderofthe #P administrativelawjudgetotheUnderSecretary $^Q inaccordancewiththeproceduressetforthin ^%6R 766.21. 6& S   (ii)Iftheordermadeapplicabletotherelated '!U personisissuedpursuantto766.24ofthispart ("V topreventanimminentviolation,the )n#W recommendeddecisionandorderofthe n*F$X administrativelawjudgeshallbereviewedbythe F+%Y UnderSecretaryinaccordancewiththe ,%Z proceduressetforthin766.24(e)ofthispart. (  F (iii)Iftheordermadeapplicabletotherelated  personisforaviolationoftheEARnotrelatedto  part760oftheEARandnotissuedpursuantto  ` 766.24ofthispart,therecommendeddecision ` 8 andorderoftheadministrativelawjudgeshallbe 8  reviewedbytheUnderSecretaryinaccordance   withtheproceduressetforthin766.22ofthis   part.        766.24 ox8 H  TEMPORARYDENIALS    8  M&Z %%%&k(a) @D General#%&k% %M&Z 9#   9Theproceduresinthissectionapplytotemporary V. denialordersissuedonorafterJuly12,1985. . Fortemporarydenialordersissuedonorbefore  July11,1985,theproceedingswillbegoverned  bytheapplicableregulationsineffectatthetime  thetemporarydenialorderswereissued.Without f limitinganyotheractionBISmaytakeunderthe f> EARwithrespecttoanyapplication,order, > licenseorauthorizationissuedundertheEAA,  BISmayasktheAssistantSecretarytoissuea  temporarydenialorderonanexpartebasisto  preventanimminentviolation,asdefinedinthis v section,oftheEAA,theEAR,oranyorder, vN licenseorauthorizationissuedthereunder.The N & temporarydenialorderwilldenyexport &!  privilegestoanypersonnamedintheorderas !! providedforin764.3(a)(2)oftheEAR. ""   N&Z %%%&k(b) @ Issuance#%&k% %N&Z># $^$ >O&%%%&k(1)#%&k%%O&>#TheAssistantSecretarymayissueanorder 4& & temporarilydenyingtoapersonanyorallofthe ' ' exportprivilegesdescribedinpart764ofthe '!( EARuponashowingbyBISthattheorderis (") necessaryinthepublicinteresttopreventan )p#* imminentviolationoftheEAA,theEAR,orany p*H$+ order,licenseorauthorizationissuedthereunder. H+ %,   ,%- &%%%&k(2)  #%&k%%&@#Thetemporarydenialordershalldefinethe (- imminentviolationandstatewhyitwasissued . withoutahearing.Becausealldenialordersare / public,thedescriptionoftheimminentviolation 0 andthereasonsforproceedingonanexparte  d1 basissetforththereinshallbestatedinamanner d <2 thatisconsistentwithnationalsecurity,foreign < 3 policy,businessconfidentiality,andinvestigative  4 concerns.  5 &%%%&k(3)  #%&k%%&tC#Aviolationmaybe imminenteitherin t7 timeorindegreeoflikelihood.Toestablish xP 8 groundsforthetemporarydenialorder,BISmay P( 9 showeitherthataviolationisabouttooccur,or ( : thatthegeneralcircumstancesofthematterunder  ; investigationorcaseundercriminalor  < administrativechargesdemonstratealikelihood  = offutureviolations.Toindicatethelikelihoodof `> futureviolations,BISmayshowthattheviolation `8? underinvestigationorchargesissignificant, 8@ deliberate,covertand/orlikelytooccuragain, A ratherthantechnicalornegligent,andthatitis B appropriatetogivenoticetocompaniesinthe C UnitedStatesandabroadtoceasedealingwith pD thepersoninU.S.-originitemsinordertoreduce pHE thelikelihoodthatapersonunderinvestigationor H F chargescontinuestoexportoracquireabroad  G suchitems,riskingsubsequentdisposition H contrarytoexportcontrolrequirements.Lackof I informationestablishingtheprecisetimea J violationmayoccurdoesnotprecludeafinding XK thataviolationisimminent,solongasthereis X 0L sufficientreasontobelievethelikelihoodofa 0!M violation. "N    D &%%%&k(4)  #%&k%%&J#Thetemporarydenialorderwillbeissued #P foraperiodnotexceeding180days. $lQ &%%%&k(5)#%&k%%&J#ԀNoticeoftheissuanceofatemporarydenial D& S orderonanexpartebasisshallbegivenin  ' T accordancewith766.5(b)ofthispartupon '!U issuance. ("V   P&Z %%%&k(c) @ Relatedpersons#%&k% %P&Z,L# *X$X  LAtemporarydenialordermaybemadeapplicable .,&Z torelatedpersonsinaccordancewith766.23of ( thispart.    Q&Z %%%&k(d) @ Renewal#%&k% %Q&ZmM#  aM&%%%&k(1)  #%&k%%&M#If,nolaterthan20daysbeforetheexpiration ^ 6 dateofatemporarydenialorder,BISbelieves :  thatrenewalofthedenialorderisnecessaryinthe   publicinteresttopreventanimminentviolation,   BISmayfileawrittenrequestsettingforththe    basisforitsbelief,includinganyadditionalor r  changedcircumstances,askingthattheAssistant rJ  Secretaryrenewthetemporarydenialorder,with J"  modifications,ifanyareappropriate,foran "  additionalperiodnotexceeding180days.BIS's   requestshallbedeliveredtotherespondent,or   anyagentdesignatedforthispurpose,in   accordancewith766.5(b)ofthispart,whichwill Z constitutenoticeoftherenewalapplication. Z2 @  &%%%&k(2)  Non-residentrespondents.#%&k%%&R#Tofacilitate  timelynoticeofrenewalrequests,arespondent  notaresidentoftheUnitedStatesmaydesignate n alocalagentforthispurposeandprovidewritten nF notificationofsuchdesignationtoBISinthe F mannersetforthin766.5(b)ofthispart.  &%%%&k(3) r Hearing. h #%&k%%&S#   F (i) r Arespondentmayopposerenewalofa ~V temporarydenialorderbyfilingwiththe V . AssistantSecretaryawrittensubmission, .!  supportedbyappropriateevidence,tobereceived "! notlaterthansevendaysbeforetheexpiration "" dateofsuchorder.Forgoodcauseshown,the ## AssistantSecretarymayconsidersubmissions $f$ receivednotlaterthanfivedaysbeforethe f%>% expirationdate.TheAssistantSecretary >& & ordinarilywillnotallowdiscovery;however,for ' ' goodcauseshowninrespondent'ssubmission, '!( he/shemayallowthepartiestotakelimited (") discovery,consistingofarequestforproduction )v#* ofdocuments.Ifrequestedbytherespondentin v*N$+ thewrittensubmission,theAssistantSecretary N+&%, shallholdahearingontherenewalapplication. &,%- Thehearingshallbeontherecordandordinarily (- willconsistonlyoforalargument.Theonlyissue . tobeconsideredonBIS'srequestforrenewalis / whetherthetemporarydenialordershouldbe 0 continuedtopreventanimminentviolationas  `1 definedherein. ` 82 ̀ D (ii)Anypersondesignatedasarelated  4 personmaynotopposeissuanceorrenewalofthe  5 temporarydenialorder,butmayfileanappealin  6 accordancewith766.23(c)ofthispart. p7 ̀ D (iii)IfnowrittenoppositiontoBIS'srenewal H 9 requestisreceivedwithinthespecifiedtime,the   : AssistantSecretarymayissuetheorderrenewing  ; thetemporarydenialorderwithoutahearing.  < &%%%&k(4)  #%&k%%&k\#Atemporarydenialordermayberenewed X> morethanonce. \4?   R&Z %%%&k(e) @ Appeals#%&k% %R&Z*]#  A ]&%%%&k(1)  Filing.#%&k%%&]# C    D (i) p Arespondentmay,atanytime,filean jBE appealoftheinitialorrenewedtemporarydenial BF orderwiththeadministrativelawjudge. G ̀ D (ii)Thefilingofanappealshallstayneither I theeffectivenessofthetemporarydenialorder zJ noranyapplicationforrenewal,norwillit zRK operatetobartheAssistantSecretary's R *L considerationofanyrenewalapplication. *!M &%%%&k(2)  Grounds.#%&k%%&U`#ԀArespondentmayappealonthe "O groundsthatthefindingthattheorderis #P necessaryinthepublicinteresttopreventan $fQ imminentviolationisunsupported. f%>R &%%%&k(3)  Appealprocedure.#%&k%%&a#ԀAfullwritten ' T statementinsupportoftheappealmustbefiled '!U withtheappealtogetherwithappropriate ("V evidence,andbesimultaneouslyservedonBIS, )z#W whichshallhavesevendaysfromreceipttofilea z*R$X reply.Serviceontheadministrativelawjudge R+*%Y shallbeaddressedtoU.S.CoastGuard,ALJ *,&Z DocketingCenter,40S.GayStreet,Baltimore, ( Maryland,212044022.ServiceonBISshallbe  assetforthin766.5(b)ofthispart.The  administrativelawjudgenormallywillnothold  hearingsorentertainoralargumentonappeals.  ` &%%%&k(4) r RecommendedDecision.#%&k%%& e#Within10 8  workingdaysafteranappealisfiled,the   administrativelawjudgeshallsubmita   recommendeddecisiontotheUnderSecretary,    andservecopiesontheparties,recommending t  whethertheissuanceortherenewalofthe tL  temporarydenialordershouldbeaffirmed, L$  modifiedorvacated. $  &%%%&k(5) r Finaldecision.#%&k%%&;g#Withinfiveworkingdays   afterreceiptoftherecommendeddecision,the   UnderSecretaryshallissueawrittenorder ` accepting,rejectingormodifyingthe `8 recommendeddecision.Becauseofthetime 8 constraints,theUnderSecretary'sreviewwill  ordinarilybelimitedtothewrittenrecordfor  decision,includingthetranscriptofanyhearing.  Theissuanceorrenewalofthetemporarydenial p ordershallbeaffirmedonlyifthereisreasonto pH believethatthetemporarydenialorderisrequired H  inthepublicinteresttopreventanimminent   violationoftheEAA,theEAR,oranyorder,  licenseorotherauthorizationissuedunderthe  EAA.TheUnderSecretary'swrittenorderis  finalandisnotsubjecttojudicialreview,except X asprovidedinparagraph(g)ofthissection. X 0   S&Z %%%&k(f) @D Delivery#%&k% %S&Zl# "! kAcopyofanytemporarydenialorderissuedor ## renewedandanyfinaldecisiononappealshallbe $f$ publishedintheFederalRegisterandshallbe f%>% deliveredtoBISandtotherespondent,orany >& & agentdesignatedforthispurpose,andtoany ' ' relatedpersoninthesamemannerasprovidedin '!( 766.5ofthispartforfilingforpapersotherthan (") achargingletter. )v#*   T&Z %%%&k ",%- (g) @ Judicialreview#%&k% %T&Zn# (- nArespondenttemporarilydeniedexport / privilegesbyorderoftheUnderSecretarymay 0 appealtotheUnitedStatesCourtofAppealsfor  ^1 theDistrictofColumbiapursuantto50U.S.C. ^ 62 app.2412(d)(3). 6 3       766.25  rp  6 ADMINISTRATIVEACTIONDENYING nF 8 EXPORTPRIVILEGES  F 9 p  U&Z %%%&k(a) @r General#%&k% %U&ZEq#  ; 9qTheDirectoroftheOfficeofExporterServices, | = inconsultationwiththeDirectoroftheOfficeof |T> ExportEnforcement,maydenytheexport T,? privilegesofanypersonwhohasbeenconvicted ,@ ofaviolationoftheEAA,theEAR,oranyorder, A license,orauthorizationissuedthereunder;any B regulation,licenseororderissuedunderthe C InternationalEmergencyEconomicPowersAct dD (50U.S.C.17011706);18U.S.C.793,794or d<E 798;section4(b)oftheInternalSecurityActof <F 1950(50U.S.C.783(b)),orsection38ofthe G ArmsExportControlAct(22U.S.C.2778). H @  <   V&Z %%%&k(b) @r Procedure#%&k% %V&Zu# tJ tUponnotificationthatapersonhasbeen J "L convictedofaviolationofoneormoreofthe "!M provisionsspecifiedinparagraph(a)ofthis !N section,theDirectoroftheOfficeofExporter "O Services,inconsultationwiththeDirectorofthe #P OfficeofExportEnforcement,willdetermine $ZQ whethertodenysuchpersonexportprivileges, Z%2R includingbutnotlimitedtoapplyingfor, 2& S obtaining,orusinganylicense,License  ' T Exception,orexportcontroldocument;or '!U participatinginorbenefittinginanywayfrom ("V anyexportorexportrelatedtransactionsubjectto )j#W theEAR.Beforetakingactiontodenyaperson j*B$X exportprivilegesunderthissection,theDirector B+%Y oftheOfficeofExporterServiceswillprovide ,%Z thepersonwrittennoticeoftheproposedaction ( andanopportunitytocommentthroughawritten  submission,unlessexceptionalcircumstances  exist.Inreviewingtheresponse,theDirectorof  theOfficeofExporterServiceswillconsiderany  ` relevantormitigatingevidencewhythese ` 8 privilegesshouldnotbedenied.Uponfinal 8  determination,theDirectoroftheOfficeof   ExporterServiceswillnotifybylettereach   persondeniedexportprivilegesunderthis    section. p    W&Z %%%&k(c) @D Criteria#%&k% %W&Z3|# H  '|Indeterminingwhetherandforhowlongtodeny   U.S.exportprivilegestoapersonpreviously   convictedofoneormoreofthestatutessetforth ~  inparagraph(a)ofthissection,theDirectorof ~V theOfficeofExporterServicesmaytakeinto V. considerationanyrelevantinformation,including, . butnotlimitedto,theseriousnessoftheoffense  involvedinthecriminalprosecution,thenature  anddurationofthecriminalsanctionsimposed,  andwhetherthepersonhasundertakenany f correctivemeasures. f>   X&Z %%%&k(d) @ Duration#%&k% %X&Z#  Anydenialofexportprivilegesunderthissection  shallnotexceed10yearsfromthedateofthe t convictionofthepersonwhoissubjecttothe tL denial. L $   Y&Z %%%&k(e) @D Effect#%&k% %Y&Z # !! Anypersondeniedexportprivilegesunderthis ## sectionwillbeconsidereda persondenied (# exportprivilegesforpurposesof736.2(b)(4) $ (GeneralProhibition4Engageinactions % prohibitedbyadenialorder)and764.2(k)ofthe & EAR.  `' @  <   Z&Z %%%&k(f) @D Publication#%&k% %Z&Z# 8 )  Theordersdenyingexportprivilegesunderthis  + sectionarepublishedintheFederalRegister  , whenissued,and,fortheconvenienceofthe n- public,informationaboutthoseordersmaybe nF . includedincompilationsmaintainedbyBISona F / Websiteandasasupplementtotheunofficial  0 editionoftheEARavailablebysubscriptionfrom  1 theGovernmentPrintingOffice.  2    D    p    [&Z %%%&k(g) @r Appeal#%&k% %[&Z# ~V4 Anappealofanactionunderthissectionwillbe ,6 pursuanttopart756oftheEAR. 7   \&Z %%%&k(h) @r Applicabilitytorelatedperson#%&k% %\&Z# 9 TheDirectoroftheOfficeofExporterServices, b:; inconsultationwiththeDirectoroftheOfficeof :< ExportEnforcement,maytakeactionin = accordancewith766.23ofthisparttomake > applicabletorelatedpersonsanorderthatis ? beingsoughtorthathasbeenissuedunderthis r@ section. rJA  "E 5(#(#X 5  Z%2E g&k%%%&k   GUIDANCEONCHARGINGANDPENALTYDETERMINATIONSINSETTLEMENTOF ( ADMINISTRATIVEENFORCEMENTCASES    (X(#(#( F Introduction    F  F ThisSupplementdescribeshowBISresponds ` 8 toviolationsoftheExportAdministration 8  Regulations(EAR)and,specifically,howBIS   makespenaltydeterminationsinthesettlementof   civiladministrativeenforcementcasesunderpart    764oftheEAR.Thisguidancedoesnotapplyto p  enforcementcasesforantiboycottviolations pH  underpart760oftheEAR. H   F Becausemanyadministrativeenforcement   casesareresolvedthroughsettlement,theprocess   ofsettlingsuchcasesisintegraltothe   enforcementprogram.BIScarefullyconsiders X eachsettlementofferinlightofthefactsand X0 circumstancesofthecase,relevantprecedent,and 0 BISsobjectivetoachieveineachcasean  appropriatelevelofpenaltyanddeterrenteffect.  Insettlementnegotiations,BISencouragesparties  toprovide,andwillgiveseriousconsiderationto, h informationandevidencethatpartiesbelieveare h@ relevanttotheapplicationofthisguidanceto @ theircases,towhetheraviolationhasinfact  occurred,ortowhethertheyhaveanaffirmative  defensetopotentialcharges.   F Thisguidancedoesnotconferanyrightor xP imposeanyobligationregardingwhatpenalties P ( BISmayseekinlitigatingacaseorwhatposture (!  BISmaytaketowardsettlingacase.Partiesdo "! nothavearighttoasettlementoffer,orparticular "" settlementterms,fromBIS,regardlessof ## settlementposturesBIShastakeninothercases. $`$  F    F I.RespondingtoViolations ' '  F TheOfficeofExportEnforcement(OEE), (") amongotherresponsibilities,investigatespossible )p#* violationsoftheExportAdministrationActof p*H$+ 1979,asamended,theEAR,oranyorder,license H+ %, orauthorizationissuedthereunder.Whenit  ,%- appearsthatsuchaviolationhasoccurred,OEE - investigationsmayleadtoawarningletterora  `. civilenforcementproceeding.Aviolationmay ` 8/ alsobereferredtotheDepartmentofJusticefor 8 0 criminalprosecution.Thetypeofenforcement  1 actioninitiatedbyOEEwilldependprimarilyon  2 thenatureoftheviolation.  3   A.Issuingawarningletter:Warningletters pH 5 representOEEsconclusionthatanapparent H 6 violationhasoccurred.Intheexerciseofits   7 discretion,OEEmaydetermineincertain  8 instancesthatissuingawarningletter,insteadof  9 bringinganadministrativeenforcement  : proceeding,willachievetheappropriate X; enforcementresult.Awarningletterwillfully X0< explaintheapparentviolationandurge 0= compliance.#%&k%%&k#&k%%%&kOEEoftenissueswarninglettersfor > anapparentviolationofatechnicalnature,where ? goodfaitheffortstocomplywiththelawand @ cooperatewiththeinvestigationarepresent,or hA wheretheinvestigationcommencedasaresultof h@B avoluntaryselfdisclosuresatisfyingthe @C requirementsof764.5oftheEAR,providedthat D noaggravatingfactorsexist#%&k%%&k#&k%%%&k. E   OEEwillnotissueawarningletterifit xG concludes,basedonavailableinformation,thata xPH violationdidnotoccur.Awarningletterdoesnot P (I constituteafinalagencydeterminationthata (!J violationhasoccurred. "K   B.Pursuinganadministrativeenforcement #M case:Theissuanceofachargingletterunder $`N 766.3oftheEARinitiatesanadministrative `%8O enforcementproceeding.Charginglettersmaybe 8& P issuedwhenthereisreasontobelievethata ' Q violationhasoccurred.Casesmaybesettled '!R beforeoraftertheissuanceofachargingletter. ("S See766.18oftheEAR. BISpreparesa )p#T proposedchargingletterwhenacaseissettled p*H$U beforeissuanceofanactualchargingletter.See H+ %V 766.18(a).Insomecases,BISalsosendsa  ,%W proposedcharginglettertoapartyintheabsence ( ofasettlementagreement,therebyinformingthe  partyoftheviolationsthatBIShasreasonto  believeoccurredandhowBISexpectsthatthose  violationswouldbecharged.  `  F C.Referringforcriminalprosecution:In 8  appropriatecases,BISmayreferacasetothe   DepartmentofJusticeforcriminalprosecution,in   additiontopursuinganadministrative    enforcementaction. p    F II.TypesofAdministrativeSanctions  H   F Therearethreetypesofadministrative   sanctionsunder764.3(a)oftheEAR:acivil   penalty,adenialofexportprivileges,andan   exclusionfrompracticebeforeBIS. X Administrativeenforcementcasesaregenerally X0 settledontermsthatincludeoneormoreofthese 0 sanctions.   F A.Civilpenalty:Amonetarypenaltymaybe  assessedforeachviolation.Themaximum h amountofsuchapenaltyperviolationisstatedin h@ 764.3(a)(1),subjecttoadjustmentsunderthe @ #%&k%%&kE#&w%%%&kFederalCivilPenaltiesAdjustmentActof1990  (28U.S.C.2461,note(2000)),whichare  codifiedat15CFR6.4.   F B.Denialofexportprivileges:Anorder xP denyingapartysexportprivilegesmaybeissued, P ( asdescribedin764.3(a)(2)oftheEAR.Sucha (!  denialmayextendtoallexportprivileges,asset "! outinthestandardtermsfordenialordersin "" SupplementNo.1topart764,ormaybe ## narrowerinscope#%&k%%&w#&k%%%&k(e.g.,limitedtoexportsof $`$ specifieditemsortospecifieddestinationsor `%8% customers)#%&k%%&kS#&w%%%&k. 8& &  F C.Exclusionfrompractice:Under '!( 764.3(a)(3)oftheEAR,anypersonactingasan (") attorney,accountant,consultant,freightforwarder )p#* orotherpersonwhoactsinarepresentative p*H$+ capacityinanymatterbeforeBIS#%&k%%&w#maybe H+ %, excludedfrompracticingbeforeBIS.  ,%- Ї  III.HowBISDeterminesWhatSanctions (- AreAppropriateinaSettlement  .   A.GeneralFactors:BISusuallylookstothe 0 followingbasicfactorsindeterminingwhat  `1 administrativesanctionsareappropriateineach ` 82 settlement: 8 3   DegreeofWillfulness:Manyviolationsinvolve  5 nomorethansimplenegligenceorcarelessness.  6 Inmostsuchcases,BIStypicallywillseeka p7 settlementforpaymentofacivilpenalty(unless pH 8 thematterisresolvedwithawarningletter).In H 9 casesinvolvinggrossnegligence,willful   : blindnesstotherequirementsoftheEAR,or  ; knowingorwillfulviolations,BISismorelikely  < toseekadenialofexportprivilegesoran  = exclusionfrompractice,and/oragreater X> monetarypenaltythanBISwouldotherwise X0? typicallyseek.WhilesomeviolationsoftheEAR 0@ haveadegreeofknowledgeorintentasan A elementoftheoffense,see,e.g.,764.2(e)ofthe B EAR(actingwithknowledgeofaviolation)and C 764.2(f)(possessionwithintenttoexport hD illegally),BISmayregardaviolationofany h@E provisionoftheEARasknowingorwillfulifthe @F factsandcircumstancesofthecasesupportthat G conclusion.Indecidingwhetheraknowing H violationhasoccurred,BISwillconsider,in I accordancewithSupplementNo.3topart732of xJ theEAR,thepresenceofanyredflagsandthe xPK natureandresultofanyinquirymadebythe P (L party.Adenialorexclusionordermayalsobe (!M consideredeveninmattersinvolvingsimple "N negligenceorcarelessness,particularlyifthe "O violations(s)involvedharmtonationalsecurityor #P otheressentialinterestsprotectedbytheexport $`Q controlsystem,iftheviolationsareofsucha `%8R natureandextentthatamonetaryfinealone 8& S representsaninsufficientpenaltyorifthenature ' T andextentoftheviolation(s)indicatethata '!U denialorexclusionorderisnecessarytoprevent ("V futureviolationsoftheEAR. )p#W   DestinationInvolved:BISismorelikelyto H+ %Y seekagreatermonetarypenaltyand/ordenialof  ,%Z exportprivilegesorexclusionfrompracticein ( casesinvolving:  0 F (1)exportsorreexportstocountriessubjectto  antiterrorismcontrols,asdescribedat  ` 742.1(d)oftheEAR.` 8FF 0 F (2)exportsorreexportstodestinations   particularlyimplicatedbythetypeofcontrol   thatappliestotheiteminquestion!for    example,exportofitemssubjecttonuclear p  controlstoacountrywithapoorrecordof pH  nuclearnonproliferation.H FF Violationsinvolvingexportsorreexportstoother   destinationsmayalsowarrantconsiderationof   suchsanctions,dependingonfactorssuchasthe   degreeofwillfulnessinvolved,thenatureand X extentofharmtonationalsecurityorother X0 essentialinterestsprotectedbytheexportcontrol 0 system,andwhatlevelofsanctionsare  determinedtobenecessarytodeterorprevent  futureviolationsoftheEAR.   F RelatedViolations:Frequently,asingleexport h@ transactioncangiverisetomultipleviolations. @ Forexample,anexporterwhomisclassifiesan  itemontheCommerceControlListmay,asa  resultofthaterror,exporttheitemwithoutthe  requiredexportlicenseandsubmitaShippers x ExportDeclaration(SED)thatbothmisstatesthe xP applicableExportControlClassificationNumber P ( (ECCN)anderroneouslyidentifiestheexportas (!  qualifyingforthedesignation NLR(nolicense "! required).Insodoing,theexportercommitted "" threeviolations:oneviolationof764.2(a)ofthe ## EARfortheunauthorizedexportandtwo $`$ violationsof764.2(g)forthetwofalse `%8% statementsontheSED.Itiswithinthediscretion 8& & ofBIStochargethreeseparateviolationsand ' ' settlethecaseforapenaltythatislessthanwould '!( beappropriateforthreeunrelatedviolations (") underotherwisesimilarcircumstances,orto )p#* chargefewerthanthreeviolationsandpursue p*H$+ settlementinaccordancewiththatcharging H+ %, decision.Inexercisingsuchdiscretion,BIS  ,%- typicallylookstofactorssuchaswhetherthe (- violationsresultedfromknowingorwillful . conduct,willfulblindnesstotherequirementsof / theEAR,orgrossnegligence;whetherthey 0 stemmedfromthesameunderlyingerroror  `1 omission;andwhethertheyresultedin ` 82 distinguishableorseparateharm. 8 3   MultipleUnrelatedViolations:Incases  5 involvingmultipleunrelatedviolations,BISis  6 morelikelytoseekadenialofexportprivileges, p7 anexclusionfrompractice,and/oragreater pH 8 monetarypenaltythanBISwouldotherwise H 9 typicallyseek.Forexample,repeated   : unauthorizedexportscouldwarrantadenial  ; order,evenifasingleexportofthesameitemto  < thesamedestinationundersimilarcircumstances  = mightwarrantjustamonetarypenalty.BIStakes X> thisapproachbecausemultipleviolationsmay X0? indicateseriouscomplianceproblemsanda 0@ resultingriskoffutureviolations.BISmay A considerwhetherapartyhastakeneffectivesteps B toaddresscomplianceconcernsindetermining C whethermultipleviolationswarrantadenialor hD exclusionorderinaparticularcase. h@E   TimingofSettlement:Under766.18, G settlementcanoccurbeforeachargingletteris H served,whileacaseisbeforeanadministrative I lawjudge,orwhileacaseisbeforetheUnder xJ SecretaryforIndustryandSecurityunder xPK 766.22.However,earlysettlement!for P (L example,beforeachargingletterhasbeenserved (!M !hasthebenefitoffreeingresourcesforBISto "N deployinothermatters.Incontrast,forexample, "O theBISresourcessavedbysettlementontheeve #P ofanadversaryhearingunder766.13arefewer, $`Q insofarasBIShasalreadyexpendedsignificant `%8R resourcesondiscovery,motionspractice,andtrial 8& S preparation.Becausetheeffective ' T implementationoftheU.S.exportcontrolsystem '!U dependsontheefficientuseofBISresources,BIS ("V hasaninterestinencouragingearlysettlement )p#W andmaytakethisinterestintoaccountin p*H$X determiningsettlementterms. H+ %Y   ,%Z 1XX 1 F RelatedCriminalorCivilViolations:Wherean ( administrativeenforcementmatterundertheEAR  involvesconductgivingrisetorelatedcriminalor  civilcharges,BISmaytakeintoaccountthe  relatedviolations,andtheirresolution,in  ` determiningwhatadministrativesanctionsare ` 8 appropriateunderpart766.Acriminal 8  convictionindicatesserious,willfulmisconduct   andanaccordinglyhighriskoffutureviolations,   absenteffectiveadministrativesanctions.    However,entryofaguiltypleacanbeasignthat p  apartyacceptsresponsibilityforcomplyingwith pH  theEARandwilltakegreatercaretodosointhe H  future.Inappropriatecaseswhereapartyis    receivingsubstantialcriminalpenalties,BISmay   findthatsufficientdeterrencemaybeachievedby   lesseradministrativesanctionsthanwouldbe   appropriateintheabsenceofcriminalpenalties. X Conversely,BISmightseekgreateradministrative X0 sanctionsinanotherwisesimilarcasewherea 0 partyisnotsubjectedtocriminalpenalties.The  presenceofarelatedcriminalorcivildisposition  maydistinguishsettlementsamongcivilpenalty  casesthatappearotherwisetobesimilar.Asa h result,thefactorssetforthforconsiderationin h@ civilpenaltysettlementswilloftenbeapplied @ differentlyinthecontextofa globalsettlement  ofbothcivilandcriminalcases,ormultiplecivil  cases,andmaythereforebeoflimitedutilityas  precedentforfuturecases,particularlythosenot x involvingaglobalsettlement. xP  F B.SpecificMitigatingandAggravating (!  Factors:Inadditiontothegeneralfactors "! describedinsectionIII.A.ofthissupplement,BIS "" alsogenerallylookstothepresenceorabsenceof ## thefollowingmitigatingandaggravatingfactors $`$ indeterminingwhatsanctionsshouldapplyina `%8% givensettlement.Thesefactorsdescribe 8& & circumstancesthat,inBISsexperience,are ' ' commonlyrelevanttopenaltydeterminationsin '!( settledcases.However,thislistingoffactorsis (") notexhaustiveand,inparticularcases,BISmay )p#* considerotherfactorsthatmayindicatethe p*H$+ blameworthinessofapartysconduct,theactual H+ %, orpotentialharmassociatedwithaviolation,the  ,%- likelihoodoffutureviolations,and/orother (- considerationsrelevanttodeterminingwhat . sanctionsareappropriate. /   Whereafactoradmitsofdegrees,itshould  `1 accordinglybegivenmoreorlessweight.Thus, ` 82 forexample,onepriorviolationshouldbegiven 8 3 lessweightthanahistoryofmultipleviolations,  4 andapreviousviolationreportedinavoluntary  5 selfdisclosurebyanexporterwhoseoverall  6 exportcomplianceeffortsareofhighquality p7 shouldbegivenlessweightthanprevious pH 8 violation(s)notinvolvingsuchmitigatingfactors. H 9   Someofthemitigatingfactorslistedinthis  ; sectionaredesignatedashaving greatweight.  < Whenpresent,suchafactorshouldordinarilybe  = givenconsiderablymoreweightthanafactorthat X> isnotsodesignated. X0? MitigatingFactors: A 0  1.Thepartymadeavoluntaryselfdisclosure C oftheviolation,satisfyingtherequirementsof hD 764.5oftheEAR.Allvoluntaryself h@E disclosuresmeetingtherequirementsof764.5 @F willbeafforded greatweight,relativeto G othermitigatingfactorsnotdesignatedas H having greatweight.Voluntaryself I disclosuresreceivingthegreatestmitigating xJ effectwilltypicallybethoseconcerning xPK violationsthatnoBISinvestigationinexistence P (L atthetimeoftheselfdisclosurewouldhave (!M beenreasonablylikelytodiscoverwithoutthe "N selfdisclosure.(GREATWEIGHT)"O(#(# 0  2.Thepartyhasaneffectiveexport $`Q complianceprogramanditsoverallexport `%8R complianceeffortshavebeenofhighquality. 8& S Indeterminingthepresenceofthisfactor,BIS ' T willtakeaccountoftheextenttowhichaparty '!U complieswiththeprinciplessetforthinBISs ("V ExportManagementSystem(EMS)Guidelines. )p#W InformationabouttheEMSGuidelinescanbe p*H$X accessedthroughtheBISWebsiteat H+ %Y www.bis.doc.gov.Inthiscontext,BISwillalso  ,%Z(#(# considerwhetherapartysexportcompliance ( programuncoveredaproblem,thereby  preventingfurtherviolations,andwhetherthe  partyhastakenstepstoaddresscompliance  concernsraisedbytheviolation,includingsteps  ` topreventreoccurrenceoftheviolation,that ` 8 arereasonablycalculatedtobeeffective. 8  (GREATWEIGHT) FF 0 F 3.Theviolationwasanisolatedoccurrenceor    theresultofagoodfaithmisinterpretation.p FF 0 F 4.Basedonthefactsofacaseandunderthe H  applicablelicensingpolicy,required    authorizationfortheexporttransactionin   questionwouldlikelyhavebeengrantedupon   request. FF 0 F 5.Otherthanwithrespecttoantiboycott X0 mattersunderpart760oftheEAR:0FF 0 F 0FF(a)thepartyhasneverbeenconvictedofan  exportrelatedcriminalviolation; 0 F 0FF(b)inthepastfiveyears,thepartyhasnot h@ enteredintoasettlementofanexportrelated @ administrativeenforcementcasewithBISor  anotherU.S.Governmentagencyorbeen  foundliableinanexportrelated  administrativeenforcementcasebroughtby x BISoranotherU.S.Governmentagency;xP 0 F 0FF(c)inthepastthreeyears,thepartyhasnot (!  receivedawarningletterfromBIS;and"! 0 F 0FF(d)inthepastfiveyears,thepartyhasnot ## otherwiseviolatedtheEAR.$`$ 0 F Wherenecessarytoeffectiveenforcement,the 8& & priorinvolvementinexportviolation(s)ofa ' ' partysowners,directors,officers,partners,or '!( otherrelatedpersonsmaybeimputedtoaparty (") indeterminingwhetherthesecriteriaare )p#* satisfied.Whenanacquiringfirmtakes p*H$+ reasonablestepstouncover,correct,and H+ %, disclosetoBISconductthatgaveriseto ,%-FF violationsbyanacquiredbusinessbeforethe (- acquisition,BIStypicallywillnottakesuch . violationsintoaccountinapplyingthisfactorin / settlingotherviolationsbytheacquiringfirm. 0 Ѐ (#(# 0  6.Thepartyhascooperatedtoanexceptional 8 3 degreewithBISeffortstoinvestigatethe  4 partysconduct. 5(#(# 0  7.Thepartyhasprovidedsubstantial p7 assistanceinBISinvestigationofanother pH 8 personwhomayhaveviolatedtheEAR.H 9(#(# 0  8.Theviolationwasnotlikelytoinvolveharm  ; ofthenaturethattheapplicableprovisionsof  < theEAA,EARorotherauthority(e.g.,alicense  = condition)wereintendedtoprotectagainst;for X> example,afalsestatementonanSEDthatan X0? exportwas NLR,wheninfactalicense 0@ requirementwasapplicable,butalicense A exceptionwasavailable.B(#(# 0  9.Atthetimeoftheviolation,theparty:(1) hD hadlittleornopreviousexportexperience;and h@E (2)wasnotfamiliarwithexportpracticesand @F requirements.(Note:Thepresenceofonlyone G oftheseelementswillnotgenerallybe H consideredamitigatingfactor.)I(#(# 0   (#(# AggravatingFactors: xPK 0  1.Thepartymadeadeliberateefforttohideor (!M concealtheviolation(s).(GREATWEIGHT)"N(#(# 0  2.Thepartysconductdemonstratedaserious #P disregardforexportcompliance $`Q responsibilities.(GREATWEIGHT)`%8R(#(# 0  3.Theviolationwassignificantinviewofthe ' T sensitivityoftheitemsinvolvedand/orthe '!U reasonforcontrollingthemtothedestinationin ("V question.Thisfactorwouldbepresentwhere )p#W theconductinquestion,inpurposeoreffect, p*H$X substantiallyimplicatednationalsecurityor H+ %Y otheressentialinterestsprotectedbythe_ U.S.  ,%Z(#(# exportcontrolsystem,inviewofsuchfactors ( asthedestinationandsensitivityoftheitems  involved.Suchconductmightinclude,for  example,violationsofcontrolsbasedon  nuclear,biological,andchemicalweapon  ` proliferation,missiletechnologyproliferation, ` 8 andnationalsecurityconcerns,andexports 8  proscribedinpart744oftheEAR.(GREAT   WEIGHT) FF 0 F 4.Theviolationwaslikelytoinvolveharmof p  thenaturethattheapplicableprovisionsofthe pH  _ EAA_ ,EARorotherauthority(e.g.,alicense H  condition)areprincipallyintendedtoprotect    against,e.g.,afalsestatementonanSEDthat   anexportwasdestinedforanonembargoed   country,wheninfactitwasdestinedforan   embargoedcountry.XFF 0 F 5.Thequantityand/orvalueoftheexportswas 0 high,suchthatagreaterpenaltymaybe  necessarytoserveasanadequatepenaltyfor  theviolationordeterrenceoffutureviolations,  ortomakethepenaltyproportionatetothose h forotherwisecomparableviolationsinvolving h@ exportsoflowerquantityorvalue.@FF 0 F 6.Thepresenceinthesametransactionof  concurrentviolationsoflawsandregulations,  otherthanthoseenforcedbyBIS.xFF 0 F 7.Otherthanwithrespectto_ antiboycott_  P ( mattersunderpart760oftheEAR:(! FF 0 F 0FF(a)thepartyhasbeenconvictedofanexport "" relatedcriminalviolation;## 0 F 0FF(b)inthepastfiveyears,thepartyhas `%8% enteredintoasettlementofanexportrelated 8& & administrativeenforcementcasewithBISor ' ' anotherU.S.Governmentagencyorhasbeen '!( foundliableinanexportrelated (") administrativeenforcementcasebroughtby )p#* BISoranotherU.S.Governmentagency;p*H$+ 0 F 0FF(c)inthepastthreeyears,thepartyhas ,%- receivedawarningletterfromBIS;or(-D(#D(# 0  0D(#(#(d)inthepastfiveyears,thepartyotherwise / violatedtheEAR.0D(#D(# 0  Wherenecessarytoeffectiveenforcement,the ` 82 priorinvolvementinexportviolation(s)ofa 8 3 partysowners,directors,officers,partners,or  4 otherrelatedpersonsmaybeimputedtoaparty  5 indeterminingwhetherthesecriteriaare  6 satisfied.Whenanacquiringfirmtakes p7 reasonablestepstouncover,correct,and pH 8 disclosetoBISconductthatgaveriseto H 9 violationsbyanacquiredbusinessbeforethe   : acquisition,BIStypicallywillnottakesuch  ; violationsintoaccountinapplyingthisfactorin  < settlingotherviolationsbytheacquiringfirm. =(#(# 0  8.Thepartyexportsasaregularpartofthe X0? partysbusiness,butlackedasystematicexport 0@ complianceeffort.A(#(#   Indecidingwhetherandwhatscopeofdenialor C exclusionorderisappropriate,thefollowing hD factorsareparticularlyrelevant:thepresenceof h@E mitigatingoraggravatingfactorsofgreatweight; @F thedegreeofwillfulnessinvolved;inabusiness G context,theextenttowhichseniormanagement H participatedinorwasawareoftheconductin I question;thenumberofviolations;theexistence xJ andseriousnessofpriorviolations;thelikelihood xPK offutureviolations(takingintoaccountrelevant P (L exportcomplianceefforts);andwhethera (!M monetarypenaltycanbeexpectedtohavea "N sufficientdeterrenteffect. "O   IV.HowBISMakesSuspensionand $`Q DeferralDecisions `%8R    A.CivilPenalties:Inappropriatecases, ' T paymentofacivilmonetarypenaltymaybe '!U deferredorsuspended.See764.3(a)(1)(iii)of ("V theEAR.Indeterminingwhethersuspensionor )p#W deferralisappropriate,BISmayconsider,for p*H$X example,whetherthepartyhasdemonstrateda H+ %Y limitedabilitytopayapenaltythatwouldbe  ,%Z appropriateforsuchviolations,sothatsuspended ( ordeferredpaymentcanbeexpectedtohave  sufficientdeterrentvalue,andwhether,inlightof  allofthecircumstances,suchsuspensionor  deferralisnecessarytomaketheimpactofthe  ` penaltyconsistentwiththeimpactofBIS ` 8 penaltiesonotherpartieswhocommittedsimilar 8  violations.    F B.DenialofExportPrivilegesandExclusion    fromPractice:Indecidingwhetheradenialor p  exclusionordershouldbesuspended,BISmay pH  consider,forexample,theadverseeconomic (  consequencesoftheorderontherespondent,its   employees,andotherparties,aswellasonthe   nationalinterestinthecompetitivenessofU.S.  businesses.Anotherwiseappropriatedenialor  ` exclusionorderwillbesuspendedonthebasisof ` 8 adverseeconomicconsequencesonlyifitisfound 8  thatfutureexportcontrolviolationsareunlikely   andifthereareadequatemeasures(usuallya   substantialcivilpenalty)toachievethenecessary   deterrenteffect. p (X(     5#(5R &k%%%&kXe1X%&kGUIDANCEONCHARGINGANDPENALTYDETERMINATIONSINSETTLEMENT Y1 OFADMINISTRATIVEENFORCEMENTCASESINVOLVING_ ANTIBOYCOTT_  E MATTERS #%Xe1XXXe1##%&k%X%Xe1# 1  @N &!!11!p@(X(#(#(&k%%%&k@  (a)Introduction 󀀈    F (1)Scope .ThisSupplementdescribeshowthe  ` Officeof_ Antiboycott_ ԀCompliance(_ OAC_ ) d<  respondstoviolationsofpart760oftheEAR <   RestrictiveTradePracticesorBoycottsandto   violationsofpart762 _ Recordkeeping_ whenthe   _ recordkeeping_ Ԁrequirementpertainstopart760   (togetherreferredtointhissupplementasthe t   _ antiboycott_ Ԁprovisions).Italsodescribeshow tL  BISmakespenaltydeterminationsinthe L$ settlementofadministrativeenforcementcases $ broughtunderparts764and766oftheEAR  involvingviolationsofthe_ antiboycott_ Ԁprovisions.  Thissupplementdoesnotapplytoenforcement  casesforviolationsofotherprovisionsofthe \ EAR. \4  F  (2)PolicyRegardingSettlement. Because   manyadministrativeenforcementcasesare  resolvedthroughsettlement,theprocessof  settlingsuchcasesisintegraltotheenforcement n program.BIScarefullyconsiderseachsettlement nF offerinlightofthefactsandcircumstancesofthe F case,relevantprecedent,andBISsobjectiveto   achieveineachcaseanappropriatelevelof   penaltyanddeterrenteffect.Insettlement !  negotiations,BISencouragespartiestoprovide, "~! andwillgiveseriousconsiderationto, ~#V" informationandevidencethatthepartiesbelieve V$.# isrelevanttotheapplicationofthisguidanceto .%$ theircases,towhetheraviolationhasinfact &% occurred,andtowhethertheyhaveadefenseto & & potentialcharges. '!'  F  (3)Limitation. BISspolicyandpracticeisto f)>#) treatsimilarlysituatedcasessimilarly,takinginto @*$* considerationthatthefactsandcombinationof +$+ mitigatingandaggravatingfactorsaredifferentin +%, eachcase.However,thisguidancedoesnot ,&- conferanyrightorimposeanyobligation  - regardingwhatpostureorpenaltiesBISmayseek  . insettlingorlitigatingacase.Partiesdonothave  / arighttoasettlementofferorparticular  ^0 settlementtermsfromBIS,regardlessof ^61 settlementposturesBIShastakeninothercases. 6 2 @.  (b)RespondingtoViolations   4 _ OAC_ ԀwithinBISinvestigatespossibleviolations l 6 ofSection8oftheExportAdministrationActof lD 7 1979,asamended( ForeignBoycotts),the D8 _ antiboycott_ ԀprovisionsofEAR,oranyorderor 9 authorizationrelatedthereto.WhenBIShas : reasontobelievethatsuchaviolationhas ; occurred,BISmayissueawarningletteror |< initiateanadministrativeenforcementproceeding. |T= Aviolationmayalsobereferredtothe T,> DepartmentofJusticeforcriminalprosecution. ,?   (1)Issuingawarningletter. Warningletters A representBISsbeliefthataviolationhas B occurred.Intheexerciseofitsdiscretion,BIS hC maydetermineincertaininstancesthatissuinga h@D warningletter,insteadofbringingan @E administrativeenforcementproceeding,will  F fulfilltheappropriateenforcementobjective.A  G warningletterwillfullyexplaintheviolation. !H    D (_ i_ )BISmayissuewarningletterswhere: x#PJ    D   (A)theinvestigationcommencedasa (%L resultofavoluntaryselfdisclosuresatisfyingthe &M requirementsof764.8oftheEAR;or & N    D   (B)thepartyhasnotpreviouslycommitted (`"P violationsofthe_ antiboycott_ Ԁprovisions. `)8#Q    D (ii)BISmayalsoconsiderthecategoryof +$S violationasdiscussedinparagraph(d)(2)ofthis +%T supplementindeterminingwhethertoissuea ,&U warningletterorinitiateanenforcement ( proceeding.AviolationcoveredbyCategoryC  (failuretoreportorlatereportingofreceiptof  boycottrequests)mightwarrantawarningletter  ratherthaninitiationofanenforcement  ` proceeding. ` 8  F   (iii)BISwillnotissueawarningletterifit   concludes,basedonavailableinformation,thata   violationdidnotoccur.     F   (iv)BISmayreopenitsinvestigationofa pH  mattershoulditreceiveadditionalevidenceorif H  itappearsthatinformationpreviouslyprovidedto    BISduringthecourseofitsinvestigationwas   incorrect.    F (2)  Pursuinganadministrativeenforcement X case. Theissuanceofachargingletterunder \4 766.3ofthispartinitiatesanadministrative 6 proceeding.   F   (_ i_ )Charginglettersmaybeissuedwhenthere  isreasontobelievethataviolationhasoccurred. n Casesmaybesettledbeforeoraftertheissuance nF ofachargingletter.See766.18ofthispart. F  F   (ii)Althoughnotrequiredtodosobylaw,  BISmaysendaproposedcharginglettertoa  partytoinformthepartyoftheviolationsthatBIS  hasreasontobelieveoccurredandhowBIS ~ expectsthatthoseviolationswouldbecharged. ~V Issuanceoftheproposedchargingletterprovides V . anopportunityforthepartyandBIStoconsider .!  settlementofthecasepriortotheinitiationof "! formalenforcementproceedings. ""  F (3) 󀀀 Referringforcriminalprosecution .In $f$ appropriatecases,BISmayreferacasetothe j%B% DepartmentofJusticeforcriminalprosecution,in B& & additiontopursuinganadministrative ' ' enforcementaction. '!(  @ (c)Typesofadministrativesanctions 󀀈 )z#* Administrativeenforcementcasesgenerallyare T+,%, settledontermsthatincludeoneormoreofthree ,,&- administrativesanctions: (-   (1) Amonetarypenaltymaybeassessedfor / eachviolationasprovidedin764.3(a)(1)ofthe 0 EAR;  d1 Ѐ d <2   Notetoparagraph(c)(1): Themaximum < 3 penaltyissubjecttoadjustmentsunderthe  4 FederalCivilPenaltiesAdjustmentActof1990  5 (28_ USC_ Ԁ2461,note(2000)),whicharecodified  6 at15_ CFR_ Ԁ6.4.Forviolationsthatoccurred x7 beforeMarch9,2006,themaximummonetary xP 8 penaltyperviolationis$11,000.Forviolations P( 9 occurringonorafterMarch9,2006,the ( : maximummonetarypenaltyperviolationis  ; $50,000.  <   (2) Anorderdenyingapartysexportprivileges `> undertheEARmaybeissued,under d<? 764.3(a)(2)oftheEAR;or <@   (3) Exclusionfrompracticeunder764.3(a)(3) B oftheEAR. C    (d)HowBISdetermineswhatsanctionsare xPE appropriateinasettlement  N&F 9  (1)  GeneralFactors BISlookstothe H followinggeneralfactorsindeterminingwhat I administrativesanctionsareappropriateineach J settlement. `K    D (_ i_ )Degreeofseriousness.Inordertoviolate 8!M the_ antiboycott_ ԀprovisionsoftheEAR,aU.S. "N persondoesnotneedtohaveactual knowledge "O orareasontoknow,asthattermisdefinedin #P 772.1oftheEAR,ofrelevantU.S.lawsand $pQ regulations.Typically,incasesthatdonot p%HR involveknowingviolations,BISwillseeka H& S settlementforpaymentofacivilpenalty(unless  ' T thematterisresolvedwithawarningletter). '!U However,incasesinvolvingknowingviolations, ("V consciousdisregardofthe_ antiboycott_ Ԁprovisions, )#W orothersuchseriousviolations(e.g.,furnishing *X$X prohibitedinformationinresponsetoaboycott X+0%Y questionnairewithknowledgethatsuch 0,&Z furnishingisinviolationoftheEAR),BISis ( morelikelytoseekadenialofexportprivileges  oranexclusionfrompractice,and/oragreater  monetarypenaltyasBISconsiderssuchviolations  particularlyegregious.  `  F   (ii)Categoryofviolations.Inconnection 8  withitsactivitiesdescribedinparagraph(a)(1)of   thissupplement,BISrecognizesthreecategories   ofviolationsunderthe_ antiboycott_ Ԁprovisionsof    theEAR.(See760.2,760.4and760.5of p  theEARforexamplesofeachtypeofviolation pH  otherthan_ recordkeeping_ ).Thesecategories H  reflecttherelativeseriousnessofaviolation,with    CategoryAviolationstypicallywarrantingthe   moststringentpenalties,includinguptothe   maximummonetarypenalty,adenialorderand/or   anexclusionorder.Throughprovidingthese X categoriesinthispenaltyguidelinesnotice,BIS X0 hopestogivepartiesageneralsenseofhowit 0 viewstheseriousnessofvariousviolations.This  guidance,however,doesnotconferanyrightor  imposeanyobligationastowhatpenaltiesBIS  mayimposebasedonitsreviewofthespecific h factsofacase. h@  F   (A)TheCategoryAviolationsandthe  sectionsoftheEARthatsetforththeirelements  are:   F    r (1)DiscriminatingagainstU.S.personson xP thebasisofrace,religion,sex,ornationalorigin P ( 760.2(b); (!   F    r (2)Refusingtodobusinessoragreeingto "" refusetodobusiness760.2(a); ##  F    r (3)Furnishinginformationaboutrace, `%8% religion,sex,ornationaloriginofU.S.persons 8& & including,butnotlimitedto,providing ' ' informationinconnectionwithaboycott '!( questionnaireaboutthereligionofemployees (") 760.2(c); )p#*  F    r (4)Evadingtheprovisionsofpart760 H+ %, 760.4;  ,%-    D   (5)Furnishinginformationaboutbusiness (- relationshipswithboycottedcountriesor . blacklistedpersons760.2(d);and /    D   (6)Implementinglettersofcredit 0 760.2(f).  `1    D (B)TheCategoryBviolationsandthe  4 sectionsoftheEARthatsetforththeirelements  5 are:  6      D   (1)Furnishinginformationabout pH 8 associationswithcharitableorfraternal H 9 organizationswhichsupportaboycottedcountry   : 760.2(e);and  ;    D   (2)Making_ recordkeeping_ Ԁviolationspart  = 762. X>    D (C)TheCategoryCviolationandthe 0@ sectionoftheEARthatsetsforthitselementsis: A Failingtoreporttimelyreceiptofboycott B requests760.5.  C    D (iii)Violationsarisingoutofrelated h@E transactions.Frequently,asingletransactioncan @F giverisetomultipleviolations.Dependingonthe G factsandcircumstances,BISmaychooseto H imposeasmallerorgreaterpenaltyperviolation. I Inexercisingitsdiscretion,BIStypicallylooksto xJ factorssuchaswhethertheviolationsresulted xPK fromconsciousdisregardoftherequirementsof P (L the_ antiboycott_ Ԁprovisions;whethertheystemmed (!M fromthesameunderlyingerrororomission;and "N whethertheyresultedindistinguishableor "O separateharm.Thethreescenariossetforth #P belowareillustrativeofhowBISmightview $`Q transactionsthatleadtomultipleviolations. `%8R    D   (A)Firstscenario.Anexporterentersinto ' T asalesagreementwithacompanyinaboycotting '!U country.Inthecourseofthenegotiations,the ("V companysendstheexporterarequestforasigned )p#W statementcertifyingthatthegoodstobesupplied p*H$X donotoriginateinaboycottedcountry.The H+ %Y exporterprovidesthesignedcertification.  ,%Z _ Subsequently,theexporterfailstoreportthe ( receiptoftherequest.Theexporterhas  committedtwoviolationsoftheantiboycott  provisions,first,aviolationof760.2(d)for  furnishinginformationconcerningthepastor  ` presentbusinessrelationshipswithorina ` 8 boycottedcountry,andsecond,aviolationof 8  760.5forfailuretoreportthereceiptofarequest   toengageinarestrictivetradepracticeorboycott.   Althoughthesupplierhascommittedtwo    violations,BISmayimposeasmallermitigated p  penaltyonaperviolationbasisthanifthe pH  violationshadstemmedfromtwoseparate H  transactions.     F    r (B)Secondscenario.#%&k%%&k´#ԀAnexporter   receivesaboycottrequesttoprovideastatement   thatthegoodsatissueinasalestransactiondo X notcontainrawmaterialsfromaboycotted X0 countryandtoincludethesignedstatementalong 0 withtheinvoice.Thegoodsareshippedinten  separateshipments.Eachshipmentincludesa  copyoftheinvoiceandacopyofthesigned  boycottrelatedstatement.Eachsignedstatement h isacertificationthathasbeenfurnishedin h@ violationof760.2(d)sbaronthefurnishingof @ prohibitedbusinessinformation.Technically,the  exporterhascommittedtenseparateviolationsof  760.2(d)andoneviolationof760.5forfailure  toreportreceiptoftheboycottrequest.Given x thattheviolationsarosefromasingleboycott xP request,however,BISmaytreattheviolationsas P ( relatedandimposeasmallerpenaltythanit (!  wouldifthefurnishinghadstemmedfromten "! separaterequests. ""  F    r (C)Thirdscenario.Anexporterhasan $`$ ongoingrelationshipwithacompanyina `%8% boycottingcountry.Thecompanyplacesthree 8& & separateordersforgoodsondifferentdateswith ' ' theexporter.Inconnectionwitheachorder,the '!( companyrequeststheexportertoprovideasigned (") statementcertifyingthatthegoodstobesupplied )p#* donotoriginateinaboycottedcountry.The p*H$+ exporterprovidesasignedcertificationwitheach H+ %, orderofgoodsthatitshipstothecompany.BIS  ,%- hasthediscretiontopenalizethefurnishingof (- eachofthesethreeitemsofinformationasa . separateviolationof760.2(d)oftheEARfor / furnishinginformationconcerningpastorpresent 0 businessrelationshipswithorinaboycotted  `1 country. ` 82 Ѐ   D (iv)Multipleviolationsfromunrelated  4 transactions.Incasesinvolvingmultiple  5 unrelatedviolations,BISismorelikelytoseeka  6 denialofexportprivileges,anexclusionfrom p7 practice,and/oragreatermonetarypenaltythan pH 8 incasesinvolvingisolatedincidents.For H 9 example,therepeatedfurnishingofprohibited   : boycottrelatedinformationaboutbusiness  ; relationshipswithorinboycottedcountries  < duringalongperiodoftimecouldwarranta  = denialorder,evenifasingleinstanceof X> furnishingsuchinformationmightwarrantonlya X0? monetarypenalty.BIStakesthisapproach 0@ becausemultipleviolationsmayindicateserious A complianceproblemsandaresultingriskof B futureviolations.BISmayconsiderwhethera C partyhastakeneffectivestepstoaddress hD complianceconcernsindeterminingwhether h@E multipleviolationswarrantadenialorexclusion @F orderinaparticularcase. G    D (v)Timingofsettlement.Under766.18of I thispart,settlementcanoccurbeforeacharging xJ letterisserved,whileacaseisbeforean xPK administrativelawjudge,orwhileacaseisbefore P (L theUnderSecretaryforIndustryandSecurity (!M under766.22ofthispart.However,early "N settlementforexample,beforeachargingletter "O hasbeenfiledhasthebenefitoffreeingresources #P forBIStodeployinothermatters.Incontrast,for $`Q example,theBISresourcessavedbysettlement `%8R ontheeveofanadversaryhearingunder766.13 8& S ofthispartarefewer,insofarasBIShasalready ' T expendedsignificantresourcesondiscovery, '!U motionspractice,andtrialpreparation.Giventhe ("V importanceofallocatingBISresourcesto )p#W maximizeenforcementoftheEAR,BIShasan p*H$X interestinencouragingearlysettlementandwill H+ %Y takethisinterestintoaccountin_ determining  ,%Z settlementterms. (  F   (vi)Relatedcriminalorcivilviolations.  Whereanadministrativeenforcementmatter  underthe_ antiboycott_ Ԁprovisionsinvolvesconduct  ` givingrisetorelatedcriminalcharges,BISmay ` 8 takeintoaccounttherelatedviolationsandtheir 8  resolutionindeterminingwhatadministrative   sanctionsareappropriateunderpart766ofthe   EAR.Acriminalconvictionindicatesserious,    willfulmisconductandanaccordinglyhighrisk p  offutureviolations,absenteffective pH  administrativesanctions.However,entryofa H  guiltypleacanbeasignthatapartyaccepts    responsibilityforcomplyingwiththe_ antiboycott_    provisionsandwilltakegreatercaretodosoin   thefuture.Inappropriatecaseswhereapartyis   receivingsubstantialcriminalpenalties,BISmay X findthatsufficientdeterrencemaybeachievedby X0 lesseradministrativesanctionsthanwouldbe 0 appropriateintheabsenceofcriminalpenalties.  Conversely,BISmightseekgreateradministrative  sanctionsinanotherwisesimilarcasewherea  partyisnotsubjectedtocriminalpenalties.The h presenceofarelatedcriminalorcivildisposition h@ maydistinguishsettlementsamongcivilpenalty @ casesthatappeartobeotherwisesimilar.Asa  result,thefactorssetforthforconsiderationin  civilpenaltysettlementswilloftenbeapplied  differentlyinthecontextofa globalsettlement x ofbothcivilandcriminalcases,ormultiplecivil xP casesinvolvingotheragencies,andmaytherefore P ( beoflimitedutilityasprecedentforfuturecases, (!  particularlythosenotinvolvingaglobal "! settlement. ""  F   (vii)Familiaritywiththe_ Antiboycott_  $`$ Provisions.Giventhescopeanddetailednature `%8% ofthe_ antiboycott_ Ԁprovisions,BISwillconsider 8& & whetherapartyisanexperiencedparticipantin ' ' theinternationalbusinessarenawhomaypossess '!( (oroughttopossess)familiaritywiththe (") _ antiboycott_ Ԁlaws.Inthisrespect,thesizeofthe )p#* partysbusiness,thepresenceorabsenceofa p*H$+ legaldivisionorcorporatecomplianceprogram, H+ %, andtheextentofpriorinvolvementinbusiness  ,%- withorinboycottedorboycottingcountries,may (- besignificant. .   (2)Specificmitigatingandaggravating 0 factors. Inadditiontothegeneralfactors  `1 describedinparagraph(d)(1)ofthissupplement, d <2 BISalsogenerallylookstothepresenceor < 3 absenceofthespecificmitigatingandaggravating  4 factorsinthisparagraphindeterminingwhat  5 sanctionsshouldapplyinagivensettlement.  6 Thesefactorsdescribecircumstancesthat,in t7 BISsexperience,arecommonlyrelevantto tL 8 penaltydeterminationsinsettledcases.However, L$ 9 thislistingoffactorsisnotexhaustiveandBIS $ : mayconsiderotherfactorsthatmayfurther  ; indicatetheblameworthinessofapartys  < conduct,theactualorpotentialharmassociated  = withaviolation,thelikelihoodoffuture \> violations,and/orotherconsiderationsrelevantto \4? determiningwhatsanctionsareappropriate.The 4 @ assignmentofmitigatingoraggravatingfactors  A willdependupontheattendantcircumstancesof B thepartysconduct.Thus,forexample,oneprior C violationshouldbegivenlessweightthana lD historyofmultipleviolations,andaprevious lDE violationreportedinavoluntaryselfdisclosure DF byapartywhoseoverallcomplianceeffortsareof G highqualityshouldbegivenlessweightthan H previousviolation(s)notinvolvingsuch I mitigatingfactors.Someofthemitigatingfactors |J listedinthisparagrapharedesignatedashaving |TK  greatweight.Whenpresent,suchafactor T ,L shouldordinarilybegivenconsiderablymore ,!M weightthanafactorthatisnotsodesignated. "N    D (_ i_ )Specificmitigatingfactors. #P    D (A)Voluntaryselfdisclosure.(GREAT d%<R WEIGHT)Thepartyhasmadeavoluntaryself <& S disclosureoftheviolation,satisfyingthe ' T requirementsof764.8oftheEAR. '!U    D (B)Effectivecomplianceprogram.(GREAT )t#W WEIGHT) t*L$X    D   (1)Generalpolicyorprogrampertaining $,%Z to_ Antiboycott_ ԀProvisions.BISwillconsider ( whetherapartyscomplianceeffortsuncovereda  problem,therebypreventingfurtherviolations,  andwhetherthepartyhastakenstepstoaddress  complianceconcernsraisedbytheviolation,  ` includingstepstopreventrecurrenceofthe ` 8 violation,thatarereasonablycalculatedtobe 8  effective.Thefocusisonthepartys   demonstratedcompliancewiththe_ antiboycott_    provisions.Whetherapartyhasaneffective    exportcomplianceprogramcoveringother p  provisionsoftheEARisnotrelevantasa pH  mitigatingfactor.Inthecaseofapartythathas H  donepreviousbusinesswithorinboycotted    countriesorboycottingcountries,BISwill   examinewhetherthepartyhasaneffective   _ antiboycott_ Ԁcomplianceprogramandwhetherits   overall_ antiboycott_ Ԁcomplianceeffortshavebeen X ofhighquality.BISmaydeemitappropriateto X0 reviewthepartysinternalbusinessdocuments 0 relatingto_ antiboycott_ Ԁcompliance(e.g.,corporate  compliancemanuals,employeetraining  materials).   F    r (2)Compliancewithreportingand h@ _ recordkeeping_ Ԁrequirements.Inthecaseofa @ partythathasreceivedreportableboycottrequests  inthepast,BISmayexaminewhethertheparty  compliedwiththereportingand_ recordkeeping_   requirementsofthe_ antiboycott_ Ԁprovisions. x  F   (C)Limitedbusinesswithorinboycottedor P ( boycottingcountries.Thepartyhashadlittleto (!  nopreviousexperienceinconductingbusiness "! withorinboycottedorboycottingcountries. "" Priortothecurrentenforcementproceeding,the ## partyhadnotengagedinbusinesswithorinsuch $`$ countries,orhadonlytransactedsuchbusinesson `%8% isolatedoccasions.BISmayexaminethevolume 8& & ofbusinessthatthepartyhasconductedwithorin ' ' boycottedorboycottingcountriesas '!( demonstratedbythesizeanddollaramountof (") transactionsorthepercentageofapartysoverall )p#* businessthatsuchbusinessconstitutes. p*H$+  F   (D)Historyofcompliancewiththe  ,%- _ Antiboycott_ ԀProvisionsoftheEAR. (-    D (1)BISwillconsiderittobeamitigating / factorif: 0    D (_ i_ )Thepartyhasneverbeenconvictedofa ` 82 criminalviolationofthe_ antiboycott_ Ԁprovisions; 8 3    D (ii)Inthepast5years,thepartyhasnot  5 enteredintoasettlementorbeenfoundliableina  6 boycottrelatedadministrativeenforcementcase p7 withBISoranotherU.S.governmentagency; pH 8    D (iii)Inthepast3years,thepartyhasnot   : receivedawarningletterfromBISrelatingtothe  ; _ antiboycott_ Ԁprovisions;or  <    D (iv)Inthepast5years,thepartyhasnot X> otherwiseviolatedthe_ antiboycott_ Ԁprovisions. X0?      D (2)Wherenecessarytoensureeffective B enforcement,thepriorinvolvementinviolations C ofthe_ antiboycott_ Ԁprovisionsofapartysowners, hD directors,officers,partners,orotherrelated h@E personsmaybeimputedtoapartyindetermining @F whetherthesecriteriaaresatisfied.Whenan G acquiringfirmtakesreasonablestepstouncover, H correct,anddisclosetoBISconductthatgaverise I toviolationsthattheacquiredbusinesscommitted xJ beforetheacquisition,BIStypicallywillnottake xPK suchviolationsintoaccountinapplyingthis P (L factorinsettlingotherviolationsbytheacquiring (!M firm. "N   (E)Exceptionalcooperationwiththe #P investigation.Thepartyhasprovidedexceptional $`Q cooperationto_ OAC_ Ԁduringthecourseofthe `%8R investigation. 8& S   (F)Clarityofrequesttofurnishprohibited '!U informationortakeprohibitedaction.Theparty ("V respondedtoarequesttofurnishinformationor )p#W takeactionthatwasambiguouslywordedor p*H$X vague. H+ %Y   ,%Z  F (G)Violationsarisingoutofapartys (  passiverefusaltodobusinessinconnection  withanagreement.Thepartyhasacquiescedin  orabidedbytermsorconditionsthatconstitutea  prohibitedrefusaltodobusiness(e.g.,responded  ` toatenderdocumentthatcontainsprohibited ` 8 languagebysendingabid).See active 8  agreementstorefusetodobusinessinparagraph   (d)(2)(ii)(I)ofthissupplement.    F (H)Isolatedoccurrenceofviolation.The p  violationwasanisolatedoccurrence.(Compare pH  tolongdurationorhighfrequencyofviolationsas H  anaggravatingfactorinparagraph(d)(2)(ii)(F)of    thissupplement.)    F (ii)SpecificAggravatingFactors.    F (A)Concealmentorobstruction.Theparty X0 madeadeliberateefforttohideorconcealthe 0 violation.(GREATWEIGHT)   F (B)Seriousdisregardforcompliance  responsibilities.(GREATWEIGHT]Thereis h evidencethatthepartysconductdemonstrateda h@ seriousdisregardforresponsibilitiesassociated @ withcompliancewiththe_ antiboycott_ Ԁprovisions  (e.g.:knowingviolationofpartysown  compliancepolicyorevidencethatapartychose  totreatpotentialpenaltiesasacostofdoing x businessratherthandevelopacompliance xP policy). P (  F (C)Historyofcompliancewiththe_ Antiboycott_  "! Provisions. ""  F (1)BISwillconsiderittobeanaggravating $`$ factorif: `%8%  F   (_ i_ )Thepartyhasbeenconvictedofacriminal ' ' violationofthe_ antiboycott_ Ԁprovisions; '!(  F    r    F   (ii)Inthepast5years,thepartyhasentered )p#* intoasettlementorbeenfoundliableina p*H$+ boycottrelatedadministrativeenforcementcase H+ %, withBISoranotherU.S.governmentagency;  ,%-    D (iii)Inthepast3years,thepartyhasreceived (- awarningletterfromBISrelatingtothe . _ antiboycott_ Ԁprovisions;or /    D (iv)Inthepast5years,thepartyhas  `1 otherwiseviolatedthe_ antiboycott_ Ԁprovisions. ` 82   (2)Wherenecessarytoensureeffective  4 enforcement,thepriorinvolvementinviolations  5 ofthe_ antiboycott_ Ԁprovisionsofapartysowners,  6 directors,officers,partners,orotherrelated p7 personsmaybeimputedtoapartyindetermining pH 8 whetherthesecriteriaaresatisfied. H 9   (3)Whenanacquiringfirmtakesreasonable  ; stepstouncover,correct,anddisclosetoBIS  < conductthatgaverisetoviolationsthatthe  = acquiredfirmcommittedbeforebeingacquired, X> BIStypicallywillnottakesuchviolationsinto X0? accountinapplyingthisfactorinsettlingother 0@ violationsbytheacquiringfirm. A   (D)Familiaritywiththetypeoftransactionat C issueintheviolation.Forexample,inthecaseof hD aviolationinvolvingaletterofcreditorrelated h@E financialdocument,thepartyroutinelypays, @F negotiates,confirms,orotherwiseimplements G lettersofcreditorrelatedfinancialdocumentsin H thecourseofitsstandardbusinesspractices. I   (E)Priorhistoryofbusinesswithorin xPK boycottedcountriesorboycottingcountries.The P (L partyhasapriorhistoryofconductingbusiness (!M withorinboycottedandboycottingcountries. "N BISmayexaminethevolumeofbusinessthatthe "O partyhasconductedwithorinboycottedand #P boycottingcountriesasreflectedbythesizeand $`Q dollaramountoftransactionsorthepercentageof `%8R apartysoverallbusinessthatsuchbusiness 8& S constitutes. ' T   (F)Longdurationorhighfrequencyof ("V violations.Violationsthatoccuratfrequent )p#W intervalsorrepeatedviolationsoccurringoveran p*H$X extendedperiodoftimemaybetreatedmore H+ %Y seriouslythanasingleviolationorrelated  ,%Z violationsthatarecommittedwithinabrief ( periodoftime,particularlyiftheviolationsare  committedbyapartywithahistoryofbusiness  withorinboycottedandboycottingcountries.  (Comparetoisolatedoccurrenceofviolationin  ` paragraph(d)(2)(_ i_ )(H)ofthissupplement.) ` 8  F (G)Clarityofrequesttofurnishprohibited   informationortakeprohibitedaction.The   requesttofurnishinformationortakeother    prohibitedaction(e.g.,enterintoagreementto p  refusetodobusinesswithaboycottedcountryor pH  entityblacklistedbyaboycottingcountry)is H  faciallyclearastoitsintendedpurpose.     F (H)Violationrelatingtospecificinformation   concerninganindividualentityorindividual.   Thepartyhasfurnishedprohibitedinformation X aboutbusinessrelationshipswithspecific X0 companiesorindividuals. 0  F (I)Violationsrelatingto activeconduct  concerninganagreementtorefusetodobusiness.  Thepartyhastakenactionthatinvolvesaltering, h editing,orenhancingprohibitedtermsor h@ languageinanagreementtorefusetodobusiness, @ includingaletterofcredit,ordraftingaclauseor  provisionincludingprohibitedtermsorlanguage  inthecourseofnegotiatinganagreementto  refusetodobusiness,includingaletterofcredit. x See passiveagreementstorefusetodobusiness xP inparagraph(d)(2)(_ i_ )(G)ofthissupplement. P (    (e)DeterminationofScopeofDenialor "! ExclusionOrder.  "" Indecidingwhetherandwhatscopeofdenialor $\$ exclusionorderisappropriate,thefollowing \%4% factorsareparticularlyrelevant:thepresenceof 4& & mitigatingoraggravatingfactorsofgreatweight;  ' ' thedegreeofseriousnessinvolved;theextentto '!( whichseniormanagementparticipatedinorwas (") awareoftheconductinquestion;thenumberof () violations;theexistenceandseriousnessofprior * violations;thelikelihoodoffutureviolations + (takingintoaccountrelevanteffortstocomply , withthe_ antiboycott_ Ԁprovisions);andwhethera  `- civilmonetarypenaltycanbeexpectedtohavea ` 8. sufficientdeterrenteffect. 8 /    (f)HowBISMakesSuspensionandDeferral  1 Decisions.   2   (1)CivilPenalties. Inappropriatecases, lD 4 paymentofacivilmonetarypenaltymaybe H 5 deferredorsuspended.See764.3(a)(1)(iii)of   6 theEAR.Indeterminingwhethersuspensionor  7 deferralisappropriate,BISmayconsider,for  8 example,whetherthepartyhasdemonstrateda  9 limitedabilitytopayapenaltythatwouldbe X: appropriateforsuchviolations,sothatsuspended X0; ordeferredpaymentcanbeexpectedtohave 0< sufficientdeterrentvalue,andwhether,inlightof = allthecircumstances,suchsuspensionordeferral > isnecessarytomaketheimpactofthepenalty ? consistentwiththeimpactofBISpenaltieson h@ otherpartieswhocommittedsimilarviolations. h@A   (2)DenialofExportPrivilegesandExclusion C fromPractice. Indecidingwhetheradenialor D exclusionordershouldbesuspended,BISmay E consider,forexample,theadverseeconomic zF consequencesoftheorderontheparty,its zRG employees,andotherpersons,aswellasonthe R *H nationalinterestinmaintainingorpromotingthe *!I competitivenessofU.S.businesses.Anotherwise "J appropriatedenialorexclusionorderwillbe "K suspendedonthebasisofadverseeconomic #L consequencesonlyifitisfoundthatfuture $bM violationsofthe_ antiboycott_ Ԁprovisionsare b%:N unlikelyandifthereareadequatemeasures :& O (usuallyasubstantialcivilmonetarypenalty)to ' P achievethenecessarydeterrenteffect.