Supplement No. 1 to Part 764 - Standard Terms of Orders Denying Export Privileges
15:2.1.3.4.41.0.1.9.83 :
Supplement No. 1 to Part 764 - Standard Terms of Orders Denying
Export Privileges
(a) General. (1) Orders denying export privileges may be
“standard” or “non-standard.” This Supplement specifies terms of
the standard order denying export privilege with respect to denial
orders issued after March 25, 1996. Denial orders issued prior to
March 25, 1996 are to be construed, insofar as possible, as having
the same scope and effect as the standard denial order. All denial
orders are published in the Federal Register. The failure by any
person to comply with any denial order is a violation of the Export
Administration Regulations (EAR) (see § 764.2(k) of this part). BIS
provides a list of persons currently subject to denial orders on
its Web site at http://www.bis.doc.gov.
(2) Each denial order shall include:
(i) The name and address of any denied persons and any related
persons subject to the denial order;
(ii) The basis for the denial order, such as final decision
following charges of violation, settlement agreement, section 11(h)
of the EAA, or temporary denial order request;
(iii) The period of denial, the effective date of the order,
whether and for how long any portion of the denial of export
privileges is suspended, and any conditions of probation; and
(iv) Whether any or all outstanding licenses issued under the
EAR to the person(s) named in the denial order or in which such
person(s) has an interest, are suspended or revoked.
Denial orders issued prior to March 25, 1996, are to be
construed, insofar as possible, as having the same scope and effect
as the standard denial order.
The introduction to each denial order shall be specific to that
order, and shall include: (1) The name and address of any denied
persons and any related persons subject to the denial order; (2)
the basis for the denial order, such as final decision following
charges of violation, settlement agreement, § 11(h) of the EAA, or
temporary denial order request; (3) the period of denial, the
effective date of the order, whether and for how long any portion
of the denial of export privileges is suspended, and any conditions
of probation; and (4) whether any or all outstanding licenses
issued under the EAR to the person(s) named in the denial order or
in which such person(s) has an interest, are suspended or
revoked.
(b) Standard denial order terms. The following are the
standard terms for imposing periods of export denial. Some orders
also contain other terms, such as those that impose civil
penalties, or that suspend all or part of the penalties or period
of denial.
“It is therefore ordered:
First, that [the denied person(s)] may not, directly or
indirectly, participate in any way in any transaction involving any
commodity, software or technology (hereinafter collectively
referred to as “item”) exported or to be exported from the United
States that is subject to the Export Administration Regulations
(EAR), or in any other activity subject to the EAR, including, but
not limited to:
A. Applying for, obtaining, or using any license, license
exception, or export control document;
B. Carrying on negotiations concerning, or ordering, buying,
receiving, using, selling, delivering, storing, disposing of,
forwarding, transporting, financing, or otherwise servicing in any
way, any transaction involving any item exported or to be exported
from the United States that is subject to the EAR, or in any other
activity subject to the EAR; or
C. Benefiting in any way from any transaction involving any item
exported or to be exported from the United States that is subject
to the EAR, or in any other activity subject to the EAR.
Second, that no person may, directly or indirectly, do any of
the following:
A. Export, reexport, or transfer (in-country) to or on behalf of
the denied person any item subject to the EAR;
B. Take any action that facilitates the acquisition or attempted
acquisition by a denied person of the ownership, possession, or
control of any item subject to the EAR that has been or will be
exported from the United States, including financing or other
support activities related to a transaction whereby a denied person
acquires or attempts to acquire such ownership, possession or
control;
C. Take any action to acquire from or to facilitate the
acquisition or attempted acquisition from the denied person of any
item subject to the EAR that has been exported from the United
States;
D. Obtain from the denied person in the United States any item
subject to the EAR with knowledge or reason to know that the item
will be, or is intended to be, exported from the United States;
or
E. Engage in any transaction to service any item subject to the
EAR that has been or will be exported from the United States and
which is owned, possessed or controlled by a denied person, or
service any item, of whatever origin, that is owned, possessed or
controlled by a denied person if such service involves the use of
any item subject to the EAR that has been or will be exported from
the United States. For purposes of this paragraph, servicing means
installation, maintenance, repair, modification or testing.
Third, that, after notice and opportunity for comment as
provided in § 766.23 of the EAR, any person, firm, corporation, or
business organization related to the denied person by affiliation,
ownership, control, or position of responsibility in the conduct of
trade or related services may also be made subject to the
provisions of this order.
This order, which constitutes the final agency action in this
matter, is effective [DATE OF ISSUANCE].”
[61 FR 12902, Mar. 25, 1996, as amended at 67 FR 54953, Aug. 27,
2002; 70 FR 8720, Feb. 23, 2005; 78 FR 22727, Apr. 16, 2013; 85 FR
73417, Nov. 18, 2020]