Notice2023-23571
In the Matter of: Dina Zhu, 101 Windsor Chase Drive, Lawrenceville, GA 30043; Order Relating to Dina Zhu
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
October 25, 2023
Issuing agencies
Commerce DepartmentIndustry and Security Bureau
Full Text
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<title>Federal Register, Volume 88 Issue 205 (Wednesday, October 25, 2023)</title>
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[Federal Register Volume 88, Number 205 (Wednesday, October 25, 2023)]
[Notices]
[Pages 73309-73311]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-23571]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
In the Matter of: Dina Zhu, 101 Windsor Chase Drive,
Lawrenceville, GA 30043; Order Relating to Dina Zhu
The Bureau of Industry and Security, U.S. Department of Commerce
(``BIS''), has notified Dina Zhu, of Lawrenceville, GA (``Zhu''), of
its intention to initiate an administrative proceeding against Zhu
pursuant to section 766.3 of the Export Administration Regulations (the
``Regulations''),\1\ through the issuance of a Proposed Charging Letter
to Zhu that alleges that Zhu committed one
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violation of the Regulations.\2\ Specifically:
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\1\ The Regulations originally issued under the Export
Administration Act of 1979, as amended, 50 U.S.C. 4601-4623 (Supp.
III 2015) (``the EAA''), which lapsed on August 21, 2001. The
President, through Executive Order 13,222 of August 17, 2001 (3 CFR,
2001 Comp. 783 (2002)), which has been extended by successive
Presidential Notices, continued the Regulations in full force and
effect under the International Emergency Economic Powers Act, 50
U.S.C. 1701, et seq. (2012) (``IEEPA''). On August 13, 2018, the
President signed into law the John S. McCain National Defense
Authorization Act for Fiscal Year 2019, which includes the Export
Control Reform Act of 2018, 50 U.S.C. 4801-4852 (``ECRA''). While
section 1766 of ECRA repeals the provisions of the EAA (except for
three sections which are inapplicable here), section 1768 of ECRA
provides, in pertinent part, that all rules and regulations that
were made or issued under the EAA, including as continued in effect
pursuant to IEEPA, and were in effect as of ECRA's date of enactment
(August 13, 2018), shall continue in effect until modified,
superseded, set aside, or revoked through action undertaken pursuant
to the authority provided under ECRA.
\2\ The Regulations are currently codified in the Code of
Federal Regulations at 15 CFR parts 730-774 (2022). The charged
violations occurred in 2018. The Regulations governing the
violations at issue are found in the 2018 version of the Code of
Federal Regulations (15 CFR parts 730-774). The 2022 Regulations set
forth the procedures that apply to this matter.
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Charge 1 15 CFR 764.2(c)--Attempted Unlicensed Export to China
On or about November 30, 2018, Zhu engaged in conduct prohibited
by the Regulations by attempting to export optical sighting devices,
items subject to the Regulations, and valued at approximately
$25,000, from the United States to the Peoples Republic of China
(``China''), via Hong Kong, without the required Department of
Commerce export license. At the time of the attempted export, the
items were classified under export control classification (``ECCN'')
0A987 and controlled on Crime Control grounds.\3\ Pursuant to
Section 742.7 of the Regulations, a Department of Commerce export
license was required before the items could be exported to Hong Kong
or China. OEE was able to interdict this transaction by issuing the
courier a re-delivery order to return or unload the shipment
pursuant to Section 758.8 of the Regulations.
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\3\ Currently, the items are classified under ECCN 0A504.
However, the items are still controlled on Crime Control grounds and
would still require an export license to both Hong Kong and China.
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During a subsequent December 2018 interview with OEE Special
Agents, Zhu admitted to responding to an online ad seeking help in
exporting commodities to China. Zhu explained that optical sighting
devices would be delivered to her house from U.S. vendors and then
she would consolidate the packages and take them to an international
courier for export to Hong Kong. According to Zhu, she shipped the
packages to Hong Kong and was aware the items would then be
forwarded to mainland China.
Zhu was also aware of U.S. government export licensing
requirements for optical sighting devices, inter alia, having been
notified by U.S. Customs and Border Protection (``CBP'') on or about
May 19, 2017, that a shipment of optical sighting devices exported
by Zhu was seized by CBP for not having the requisite U.S.
Government authorization.\4\
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\4\ At that time, the seized items were determined to be
controlled on the U.S. Munitions List under Category XII(c)(2)(i).
U.S. State Department authorization pursuant to the International
Trafficking in Arms Regulation, 22 CFR parts 120-130, was required
to export the seized items.
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In so doing, Zhu committed one violation of 15 CFR 764.2(c).
Whereas, BIS and Zhu have entered into a Settlement Agreement
pursuant to Section 766.18(a) of the Regulations, whereby they agreed
to settle this matter in accordance with the terms and conditions set
forth therein;
Whereas, Zhu admits committing the alleged conduct described in the
Proposed Charging Letter; and
Whereas, I have approved of the terms of such Settlement Agreement;
It is therefore ordered:
First, for a period of one (1) year from the date of the Order,
Zhu, with a last known address of 101 Windsor Chase Drive,
Lawrenceville, GA 30043, and when acting for or on her behalf, her
successors, assigns, representatives, agents, or employees (hereinafter
collectively referred to as the ``Denied Person''), may not, directly
or indirectly, participate in any way in any transaction involving any
commodity, software or technology (hereinafter collectively referred to
as ``item'') exported or to be exported from the United States that is
subject to the Regulations, or in any other activity subject to the
Regulations, including, but not limited to:
A. Applying for, obtaining, or using any license, license
exception, or export control document;
B. Carrying on negotiations concerning, or ordering, buying,
receiving, using, selling, delivering, storing, disposing of,
forwarding, transporting, financing, or otherwise servicing in any way,
any transaction involving any item exported or to be exported from the
United States that is subject to the Regulations, or engaging in any
other activity subject to the Regulations; or
C. Benefitting in any way from any transaction involving any item
exported or to be exported from the United States that is subject to
the Regulations, or from any other activity subject to the Regulations.
Second, no person may, directly or indirectly, do any of the
following:
A. Export or reexport to or on behalf of the Denied Person any item
subject to the Regulations;
B. Take any action that facilitates the acquisition or attempted
acquisition by the Denied Person of the ownership, possession, or
control of any item subject to the Regulations that has been or will be
exported from the United States, including financing or other support
activities related to a transaction whereby the Denied Person acquires
or attempts to acquire such ownership, possession or control;
C. Take any action to acquire from or to facilitate the acquisition
or attempted acquisition from the Denied Person of any item subject to
the Regulations that has been exported from the United States;
D. Obtain from the Denied Person in the United States any item
subject to the Regulations with knowledge or reason to know that the
item will be, or is intended to be, exported from the United States; or
E. Engage in any transaction to service any item subject to the
Regulations that has been or will be exported from the United States
and which is owned, possessed or controlled by the Denied Person, or
service any item, of whatever origin, that is owned, possessed or
controlled by the Denied Person if such service involves the use of any
item subject to the Regulations that has been or will be exported from
the United States. For purposes of this paragraph, servicing means
installation, maintenance, repair, modification or testing.
Third, any licenses issued under the Regulations in which Zhu has
an interest as of the date of this Order shall be revoked by BIS.
Fourth, that, after notice and opportunity for comment as provided
in Section 766.23 of the Regulation, any person, firm, corporation, or
business organization related to Zhu by affiliation, ownership,
control, or position of responsibility in the conduct or trade or
related services may also be made subject to the provisions of this
Order.
Fifth, as authorized by Section 766.18(c) of the Regulations, the
denial period shall be imposed and extended for a second year, but for
that second year shall be suspended for a probationary period and shall
thereafter be waived, provided that Zhu has not committed another
violation of ECRA, the Regulations, or any order, license or
authorization issued under ECRA or the Regulations. If Zhu commits
another violation of ECRA, the Regulations, or any order, license or
authorization issued under ECRA or the Regulations during the two-year
period from the date of the Order the suspended portion of the Order
may be modified or revoked by BIS pursuant to Section 766.17(c) of the
Regulations. If the suspension of the denial is modified or revoked,
BIS may extend the active denial period until up to two-years from the
date of the Order.
Sixth, the Proposed Charging Letter, the Settlement Agreement, and
this Order shall be made available to the public.
Seventh, a copy of this Order shall be provided to Zhu, and shall
be published in the Federal Register.
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This Order, which constitutes the final agency action in this
matter, is effective immediately.
Matthew S. Axelrod,
Assistant Secretary of Commerce for Export Enforcement.
[FR Doc. 2023-23571 Filed 10-24-23; 8:45 am]
BILLING CODE 3510-DT-P
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</html>Indexed from Federal Register on October 25, 2023.
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