Example Pre-Charging Letter Letters from http:/efoia.bis.gov

UNITED STATES OF AMERICA
DEPARTMENT OF COMMERCE

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In the Matter of

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HornerXpress Worldwide, Inc

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Case No. 99-15

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ORDER
The Office of Antiboycott Compliance, Bureau of Industry and Security, U.S.
Department of Commerce (“BIS”), having determined to initiate an administrative proceeding
pursuant to Section 1l(c) of the Export Administration Act of 1979, as amended (50 U.S.C.

5 5 2401-2420 (2000)) (the “Act”)’ and the Export Administration Regulations (currently
codified at 15 C.F.R Parts 730-774 (2007))(the “Regulations”), against HornerXpress
Worldwide, Inc (formerly, Homer Discus International, Inc) (“Homer”), a domestic concern
resident in the State of Florida, based on allegations set forth in the Proposed Charging Letter,
dated July 27, 2007 that alleged that Horner committed four violations of the Regulations;

From August 21, 1994 through November 12,2000, the Act was in lapse. During that period, the
President, through Executive Order 12924, which had been extended by successive Presidential Notices, the last
ofwhich was August 3,2000 (3 C.F.R., 2000 Comp. 397 (2001)), continued the Regulations in effect under the
International Emergency Economic Powers Act (50 U.S.C. $9 1701-1706 (2000)) (“IEEPA”). On November 13,
2000, the Act was reauthorized by Pub. L. No. 106-508 (1 14 Stat. 2360 (2000)) and remained in effect through
August 20,2001. Since August 21,2001, the Act has been in lapse. Executive Order 13222 of August 17,2001
(3 C.F.R., 2001 Comp 783 (2002)), which has been extended by successive Presidential Notices, the most recent
of which was August 3,2006 (71 Fed. Reg. 4455 1 (August 7,2006)), continues the Regulations in effect under
IEEPA.

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Specifically, the charges are:
1.

Two Violations of 15 C.F.R. $760.2(d) - Furnishing Information about
Business Relationships with Boycotted Countries or Blacklisted Persons:
During the period 1997 through 2000, Horner engaged in transaction(s)
involving the sale and/or transfer of goods from the United States to Qatar.
In connection with these activities, on two occasions, Horner, with intent to
comply with, further or support an unsanctioned foreign boycott, furnished
information concerning its or another person’s business relationships with
other persons who are known or believed to be restricted from having any
business relationships with or in a boycotting country, an activity prohibited
by Section 760.2(d) of the Regulations, and not excepted.

2.

Two Violations of 15 C.F.R. $760.5 - Failing to Report the Receipt of a
Request to Engage in a Restrictive Trade Practice or Foreign Boycott
Against a Country Friendly to the United States:
During the period 1999 through 2000, Horner engaged in transaction(s)
involving the sale and/or transfer of goods from the United States to Qatar.
In connection with these activities, Horner, on two occasions, received a
request to take an action which would have the effect of furthering or
supporting a restrictive trade practice or unsanctioned foreign boycott.
Homer failed to report its receipts of these requests to the Department of
Commerce, as directed by Section 760.5 of the Regulations.

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BIS and Horner having entered into a Settlement Agreement pursuant to Section
766.18(a) of the Regulations whereby the parties have agreed to settle this matter in
accordance with the terms and conditions set forth therein and the terms of the Settlement
Agreement having been approved by me;

IT IS THEREFORE ORDERED THAT:

FIRST, a civil penalty of $ 8,600 is assessed against Horner and shall be paid to the

U.S. Department of Commerce in the following manner: $4,300, within 30 days from the
date of entry of this Order; and $4,300, within eight months of the date of entry of this Order.
Payment of these sums shall be made in the manner specified in the attached instructions.

SECOND, pursuant to the Debt Collections Act of 1982, as amended (31 U.S.C.

$5 3701-3720E (1983 and Supp. 2001)), the civil penalty owed under this Order accrues
interest as more fully described in the attached Notice, and, if payment is not made by the
due dates specified herein, Horner will be assessed, in addition to the full amount of the
penalty and interest, a penalty charge and an administrative charge, as more fully described
in the attached Notice.

THIRD, as authorized by Section 11(d) of the Act, the timely payment of the sum

of $ 8,600 is hereby made a condition to the granting, restoration or continuing validity
of any export license, permission, or privilege granted, or to be granted, to Homer.

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Accordingly, if Horner should fail to pay the civil penalty in a timely manner, the undersigned
may enter an Order under the authority of Section 1 l(d) of the Act denying all of Homer’s export
privileges for a period of one year from the date of the entry of this Order.

I

FOURTH, the Proposed Charging Letter, the Settlement Agreement and this Order
shall be made available to the public, and a copy of this Order shall be served upon Horner.

This Order, which constitutes the final agency action in this matter, is effective
immediately.

Darryl W Jacks%
Assistant Secretary of Commerce for
Export Enforcement

Entered this

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Attachments

day of

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,2007

INSTRUCTIONS FOR PAYMENT OF SETTLEMENT AMOUNT

1. The check should be made payable to:
U.S. DEPARTMENT OF COMMERCE

2. The check should be mailed to:

U.S. Department of Commerce
Bureau of Industry and Security
Room 6622
14th & Constitution Avenue, N.W.
Washington, D.C. 20230
Attention: Jennifer Kuo

NOTICE

The Order to which this Notice is attached describes the reasons for the assessment of the civil
monetary penalty. It also specifies the amount owed and the date by which payment of the civil
penalty is due and payable.
Under the Debt Collection Act of 1982, as amended (31 U.S.C. $5 3701-3720E (1983 and Supp.
2001)) and the Federal Claims Collection Standards (65 Fed. Reg. 70390-70406, November 22,
2000, to be codified at 3 1 C.F.R. Parts 900-904), interest accrues on any and all civil monetary
penalties owed and unpaid under the Order, from the date of the Order until paid in full. The rate
of interest assessed respondent is the rate of the current value of funds to the U.S. Treasury on the
date that the Order was entered. However, interest is waived on any portion paid within 30 days
of the date of the Order. See 31 U.S.C. $3717 and 31 C.F.R. $901.9.
The civil monetary penalty will be delinquent if not paid by the due date specified in the Order.

If the penalty becomes delinquent, interest will continue to accrue on the balance remaining due
and unpaid, and respondent will also be assessed both an administrative charge to cover the cost
of processing and handling the delinquent claim and a penalty charge of six percent per year.
However, although the penalty charge will be computed from the date that the civil penalty
becomes delinquent, it will be assessed only on sums due and unpaid for over 90 days after that
date. See 31 U.S.C. $3717 and 4 C.F.R. 5901.9.
The foregoing constitutes the initial written notice and demand to respondent in accordance with
Section 901.2 of the Federal Claims Collection Standards (3 1 C.F.R. $901.2(b)).

UNITED STATES OF AMERICA
DEPARTMENT OF COMMERCE

1
In the Matter of

HornerXpress Worldwide, Inc

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1

Case No. 99 15

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SETTLEMENT AGREEMENT

This agreement is made by and between HornerXpress Worldwide, Inc (formerly,
Horner Discus International, Inc) (“Horner”), a domestic concern, and the Office of
Antiboycott Compliance, Bureau of Industry and Security, United States Department of
Commerce (,cBIS”),pursuant to Section 766.1S(a) of the Export Administration Regulations
(currently codified at 15 C.F.R. Parts 730-774 (2007) (the “Regulations”), issued pursuant
to the Export Administration Act of 1979, as amended (50 U.S.C.
“Act”).

$5 2401-2420 (2000)) (the

’
’

From August 2 1, 1994 through November 12,2000, the Act was in lapse. During that period, the
President, through Executive Order 12924, which had been extended by successive Presidential Notices, the last
ofwhich was August 3, 2000 (3 C.F.R., 2000 Comp. 397 (2001)), continued the Regulations in effect under the
International Emergency Economic Powers Act (50 U.S.C. $6 1701-1706 (2000)) (“IEEPA”). On November 13,
2000, the Act was reauthorized by Pub. L. No. 106-508 (1 14 Stat. 2360 (2000)) and remained in effect through
August 20,200 1. Since August 2 1,200 1, the Act has been in lapse. Executive Order 13222 of August 17,2001
(3 C.F.R., 2001 Comp 783 (2002)), which has been extended by successive Presidential Notices, the most recent
of which was August 3,2006 (71 Fed. Reg. 44551 (August 7,2006)), &ontinuesthe Regulations in effect under
IEEPA.

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WHEREAS, BIS has notified Horner of its intention to initiate an administrative
proceeding against Homer pursuant to Section 1l(c) of the Act by issuing the Proposed
Charging Letter dated July 27,2007, a copy of which is attached hereto and incorporated
herein by this reference; and

WHEREAS, Horner has reviewed the Proposed Charging Letter and is aware of the
allegations against it and the administrative sanctions which could be imposed against it
if the allegations are found to be true; Horner fully understands the terms of this Settlement
Agreement, and enters into this Settlement Agreement voluntarily and with full knowledge
of its rights; and Horner states that no promises or representations have been made to it other
than the agreements and considerations herein expressed; and

WHEREAS, Horner neither admits nor denies the truth of the allegations, but wishes
to settle and dispose of the allegations made in the Proposed Charging Letter by entering into
this Settlement Agreement; and

WHEREAS, Horner agrees to be bound by the appropriate Order (“Order”) when
entered;

NOW. THEREFORE, Horner and BIS agree as follows:

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1. Under the Act and the Regulations, BIS has jurisdiction over Horner with respect

to the matters alleged in the Proposed Charging Letter.

2.

BIS will impose a civil penalty in the amount of $ 8,600.' Homer will pay to the

U.S. Department of Commerce, within 30 days of receipt of service of the Order,
and in accordance with the terms of the Order, when entered, the amount of
$ 8,600 in complete settlement of all matters set forth in the Proposed Charging

Letter,

3. As authorized by Section 1l(d) of the Act, timely payment of the amount agreed
to in paragraph 2 is hereby made a condition of the granting, restoration, or
continuing validity of any export license, permission, or privilege granted, or
to be granted, to Homer. Failure to make payment of this amount shall result in
the denial of all of Horner's export privileges for a period of one year from the
date of entry of the Order.

4. Subject to the approval of this Settlement Agreement, pursuant to paragraph 9
hereof, Homer hereby waives all rights to further procedural steps in this matter
(except with respect to any alleged violation of this Settlement Agreement or
the Order, when entered) including, without limitation, any right to:
A. An administrative hearing regarding the allegations in the Proposed Charging
Letter;

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B. Request a refund of the funds paid by Horner pursuant to this Settlement
Agreement and the Order, when entered; or
C. Seek judicial review or otherwise contest the validity of this Settlement
Agreement or the Order, when entered.

5 . BIS, upon entry of the Order, will not initiate any administrative or judicial

proceeding, or make a referral to the Department of Justice for criminal
proceedings against Horner with respect to any violation of Section 8 of the
Act or Part 760 of the Regulations arising out of the transactions set forth in
the Proposed Charging Letter or any other transaction that was disclosed to
or reviewed by BIS in the course of its investigation.

6. Horner understands that BIS will disclose publicly the Proposed Charging Letter,
this Settlement Agreement, and the Order, when entered.

7. This Settlement Agreement is for settlement purposes only, and does not constitute
an admission by Horner that it has violated the Regulations, or an admission of the
truth of any allegation contained in the Proposed Charging Letter or referred to in
this Settlement Agreement. Therefore, if this Settlement Agreement is not accepted
and the Order not entered by the Assistant Secretary for Export Enforcement, BIS
may not use this Settlement Agreement against Horner in any administrative or
judicial proceeding.

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8. No agreement, understanding, representation or interpretation not contained in
this Settlement Agreement may be used to vary or otherwise affect the terms of
this Settlement Agreement or the Order, when entered, nor shall this Settlement
Agreement bind, constrain or otherwise limit any action by any other agency
or department of the United States Government with respect to the facts and
circumstances herein addressed. This paragraph shall not limit Horner’s right
to challenge any action brought by any other agency based on a referral by BIS
or any employee thereof, in contravention of paragraph 5 of this Settlement
Agreement.

9. This Settlement Agreement will become binding on BIS only when approved

by the Assistant Secretary for Export Enforcement by entering the Order.

HORNERXPRESS WORLDWIDE, INC

U.S. DEPARTMENT,OF COMMERCE

Eaward 0. Weant I11
Director
Office of Antiboycott Compliance

Attachment

PROPOSED CHARGING LETTER

27 July 2007
HornerXpress Worldwide Inc
5755 Powerline Road
Fort Lauderdale, FL 33309.2074
Attention : William A Kent, President

Case No. 99.15

GentlemedLadies:
We, the Office of Antiboycott Compliance, Bureau of Industry and Security, United States
Department of Commerce (“BIS”), have reason to believe that you, HornerXpress Worldwide,
Inc, (formerly, Horner Discus International, Inc) (“Horner”), on four occasions, have violated
the Export Administration Regulations (currently codified at 15 C.F.R. Parts 730-774 (2007))
(the “Regulations”),’ which are issued under the authority of the Export Administration Act of
1979, as amended (50 U.S.C. app. $9 2401-2420 (2000)) (the “Act”).*
We charge that you committed two violations of Section 760.2(d) of the Regulations, in that, on
two occasions, with intent to comply with, further or support an unsanctioned foreign boycott,
you furnished information concerning your or another person’s business relationships with other
persons who are known or believed to be restricted from having any business relationships with
or in a boycotting country.

’

The alleged violations occurred during the years 1997, 1999 and 2000. The Regulations governing the
violations at issue are found in the 1997, 1999 and 2000 versions of the Code of Federal Regulations (15 C.F.R. Parts
730-774 (1997, 1999 and 2000)). The prior years’ Regulations are substantially the same as the 2007 version of the
Regulations which govern the procedural aspects of this matter.

From August 21, 1994 through November 12,2000, the Act was in lapse. During that period, the
President, through Executive Order 12924, which had been extended by successive Presidential Notices, the last
of which was August 3, 2000 (3 C.F.R., 2000 Comp. 397 (2001)), continued the Regulations in effect under the
International Emergency Economic Powers Act (50 U.S.C. $9 1701-1706 (2000)) (“IEEPA”). On November 13,
2000, the Act was reauthorized by Pub. L. No. 106-508 (1 14 Stat. 2360 (2000)) and remained in effect through
August 20,200 I . Since August 2 1,200 1, the Act has been in lapse. Executive Order 13222 of August 17,2001
(3 C.F.R., 2001 Comp 783 (2002)), which has been extended by successive Presidential Notices, the most recent
of which was August 3,2006 (71 Fed. Reg. 4455 1 (August 7,2006)), continues the Regulations in effect under
IEEPA.

We also charge that you committed two violations of Section 760.5 of the Regulations, in that,
on two occasions, you failed to report to the Department of Commerce (“Department”) your
receipt of a request to engage in a restrictive trade practice or boycott, as required by
the Regulations.

We allege that:
You, Homer, are, and at all times relevant were, a domestic concern resident in the State
of Florida. As such, you are a United States person as defined in Section 760.1(b) of the
Regulations.
During the years 1997 through 2000, you engaged in transactions involving the sale and/or
transfer of goods or services (including information) from the United States to Qatar, activities
in the interstate or foreign commerce of the United States, as defined in Section 760.1(d) of the
Regulations.

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Charges 1 - 2 (15 C.F.R. 8 760.2(d) Furnishing Information about Business
Relationships with Boycotted Countries or Blacklisted Persons)
In connection with the activities referred to above, on two occasions, you furnished, to a
customer in Qatar, information, as described in Table A, which is attached and incorporated
herein by this reference, concerning your or another person’s business relationships with other
persons who are known or believed to be restricted from having any business relationships with
or in a boycotting country.
Providing the information described in Table A, with intent to comply with, further or support
an unsanctioned foreign boycott, is an activity prohibited by Section 760.2(d) of the Regulations,
and not excepted. We therefore charge you with two violations of Section 760.2(d).

Charges 3 - 4

(15 C.F.R. 8 760.5 - Failing to Report the Receipt of a Request to
Engage in a Restrictive Trade Practice or Foreign Boycott Against
a Country Friendly to the United States)

In connection with the activities referred to above, during the period 1999 through 2000, on two
occasions, you received a request to take an action which would have the effect of furthering or
supporting a restrictive trade practice or unsanctioned foreign boycott, as described in Table A,
which is attached and incorporated herein by this reference. Section 760.5 of the Regulations
requires United States persons to report to the Department their receipts of such requests. You
failed to report to the Department your receipts of these requests.

By failing to report your receipts of these requests, as directed by Section 760.5 of the
Regulations, you are in violation of Section 760.5. We therefore charge you with two
violations of Section 760.5 of the Regulations.
Accordingly, administrative proceedings are instituted against you pursuant to Part 766 of
the Regulations for the purpose of obtaining an Order imposing administrative sanction^.^
You are entitled to a hearing on the record as provided in Section 766.6 of the Regulations.
If you wish to have a hearing on the record, you must file a written demand for it with your
answer. You are entitled to be represented by counsel and, under Section 766.18 of the
Regulations, to seek a settlement agreement.
Under the Small Business Regulatory Enforcement Flexibility Act, you may be eligible for
assistance from the Office of the National Ombudsman of the Small Business Administration
in this matter.4
If you fail to answer the allegations contained in this letter within thirty (30) days after service
as provided in Section 766.6, such failure will be treated as a default under Section 766.7.
As provided in Section 766.3, I am referring this matter to the Administrative Law Judge.
Pursuant to an Interagency Agreement between BIS and the U.S. Coast Guard, the U.S.
Coast Guard is providing administrative law judge services, to the extent that such services
are required under the Regulations, in connection with the matters set forth in this letter.
Therefore, in accordance with the instructions in Section 766.5(a) of the Regulations,
your answer should be filed with:

U.S. Coast Guard ALJ Docketing Center
40 South Gay Street
Baltimore, Maryland 2 1202-4022
Attention: Administrative Law Judge

Administrative sanctions may include any or all the following:
a. A civil penalty of $1 1,000 per violation (E§ 764.3(a)(1) of the Regulations and 15 C.F.R.
9 6.4(a)(4)(2004));
b. Denial of export privileges (see Q 764.3(a)(2) of the Regulations); andor
c. Exclusion from practice before BIS (see 8 764.3(a)(3) of the Regulations).

To determine eligibility and get more information, please see: http://www.sba.gov/ ombudsman

Also, in accordance with the instructions in Section 766.5(b) of the Regulations, a copy of your
answer should also be served on the Bureau of Industry and Security at:

Office of the Chief Counsel for Industry and Security
Room H-3839
Bureau of Industry and Security
U.S. Department of Commerce
14th Street & Constitution Avenue, N.W.
Washington, D.C. 20230

Sincerely,

-_

Edward 0 Weant, 111
Director
Office of Antiboycott Compliance

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