united states department of commerce bureau of …is not reached and a charging letter is issued. if...

29
I UNITED STATES DEPARTMENT OF COMMERCE Bureau of Export Administration WashIngton, DC 20230 CERTIFIED MAIL - RETURN RECEIPT REOUESTED Nelson G. Dong, Esq. Dorsey & Whitney U.S. Bank Centre 1420 Fifth Avenue Seattle, WA 98101 Re: Entegris, Inc. Dear Mr. Dong: The Bureau of Export Administration, United States Department of Commerce (BXA), has reason to believe that your client, Entegris, Inc., as successor of the business of Fluoroware, (Entegris), has violated the Export Administration Regulations (currently codified at 15 C.F.R. Parts 730-774 (2000)) (the Regulations),’ issued pursuant to the Export Administration Act of 1979, as amended (50 U.S.C. app. $5 2401-2420 (1994 & Supp. IV 1998) and Pub. L. No. 106- 508, 114 Stat. 2360) (the Act).2 The basis for BXA’s belief is set forth in the enclosed proposed Charging Letter. Prior to issuing the Charging Letter, BXA is prepared to consider any evidence that Entegris deems appropriate to refute these allegations. BXA is also prepared to discuss the ‘The violations at issue occurred from 1996 through 1998. The Regulations governing the violations at issue are found in the 1996 through 1998 versions of the Code of Federal Regulations (15 C.F.R. Parts 768-799 (1996), as amended (61 Fed. Reg. 12714, March 25, 1996)) (former Regulations), and 15 C.F.R. Parts 730-774 (1997-1998)). The March 25, 1996 Federal Register publication redesignated, but did not republish, the then-existing Regulations as 15 C.F.R. Parts 768A-799A. In addition, the March 25, 1996 FederaZ Register publication restructured and reorganized the Regulations, designating them as an interim rule at 15 C.F.R. Parts 730-774, effective April 24, 1996. The former Regulations define the various violations that BXA alleges occurred during 1996. The Regulations define the various violations that BXA alleges occurred on or after January 1, 1997 and establish the procedures that apply to this matter. 2 The Act expired on August 20, 1994. Executive Order 12924 (3 C.F.R., 1994 Comp. 917 (1995)), which had been extended by successive Presidential Notices, the most recent being that of August 3,200O (65 Fed Reg. 48347, August 8, 2000), continued the Regulations in effect under the International Emergency Economic Powers Act (50 U.S.C. $4 1701-l 706 (1994 & Supp. IV 1998)) until November 13,200O when the Act was reauthorized. See Pub. L. No. 106- 508, 114 Stat. 2360.

Upload: others

Post on 05-Jul-2020

3 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: UNITED STATES DEPARTMENT OF COMMERCE Bureau of …is not reached and a Charging Letter is issued. If a Charging Letter is issued, you must file a separate notice of appearance with

IUNITED STATES DEPARTMENT OF COMMERCEBureau of Export AdministrationWashIngton, D C 2 0 2 3 0

CERTIFIED MAIL - RETURN RECEIPT REOUESTED

Nelson G. Dong, Esq.Dorsey & WhitneyU.S. Bank Centre1420 Fifth AvenueSeattle, WA 98101

Re: Entegris, Inc.

Dear Mr. Dong:

The Bureau of Export Administration, United States Department of Commerce (BXA),has reason to believe that your client, Entegris, Inc., as successor of the business of Fluoroware,(Entegris), has violated the Export Administration Regulations (currently codified at 15 C.F.R.Parts 730-774 (2000)) (the Regulations),’ issued pursuant to the Export Administration Act of1979, as amended (50 U.S.C. app. $5 2401-2420 (1994 & Supp. IV 1998) and Pub. L. No. 106-508, 114 Stat. 2360) (the Act).2 The basis for BXA’s belief is set forth in the enclosed proposedCharging Letter.

Prior to issuing the Charging Letter, BXA is prepared to consider any evidence thatEntegris deems appropriate to refute these allegations. BXA is also prepared to discuss the

‘The violations at issue occurred from 1996 through 1998. The Regulations governingthe violations at issue are found in the 1996 through 1998 versions of the Code of FederalRegulations (15 C.F.R. Parts 768-799 (1996), as amended (61 Fed. Reg. 12714, March 25,1996)) (former Regulations), and 15 C.F.R. Parts 730-774 (1997-1998)). The March 25, 1996Federal Register publication redesignated, but did not republish, the then-existing Regulations as15 C.F.R. Parts 768A-799A. In addition, the March 25, 1996 FederaZ Register publicationrestructured and reorganized the Regulations, designating them as an interim rule at 15 C.F.R.Parts 730-774, effective April 24, 1996. The former Regulations define the various violationsthat BXA alleges occurred during 1996. The Regulations define the various violations that BXAalleges occurred on or after January 1, 1997 and establish the procedures that apply to thismatter.

2 The Act expired on August 20, 1994. Executive Order 12924 (3 C.F.R., 1994 Comp. 917(1995)), which had been extended by successive Presidential Notices, the most recent being thatof August 3,200O (65 Fed Reg. 48347, August 8, 2000), continued the Regulations in effectunder the International Emergency Economic Powers Act (50 U.S.C. $4 1701-l 706 (1994 &Supp. IV 1998)) until November 13,200O when the Act was reauthorized. See Pub. L. No. 106-508, 114 Stat. 2360.

Page 2: UNITED STATES DEPARTMENT OF COMMERCE Bureau of …is not reached and a Charging Letter is issued. If a Charging Letter is issued, you must file a separate notice of appearance with

I

Nelson C;. Dong, Esq.EntegrisNotice LetterPage 2

possibility of reaching a settlement before issuing formal charges. If you do not contact uswithin 30 days of your receipt of this letter, BXA will issue the Charging Letter, therebyinitiating a formal administrative proceeding against Entegris.

The Office of Chief Counsel for Export Administration is in receipt of your notice ofappearance on behalf of Entegris and your authority to accept service on its behalf if a settlementis not reached and a Charging Letter is issued. If a Charging Letter is issued, you must file aseparate notice of appearance with the Administrative Law Judge in accordance with therequirements of Sections 766.4 and 766.5 of the Regulations.

Please contact Melissa B. Mannino at (202) 482-5304 or at the mailing address below,should you have questions concerning this matter.

Sincerely,

Mark D. MenefeeDirectorOffice of Export Enforcement

Enclosures

Mailing address for Ms. Mannino

Office of Chief Counselfor Export Administration

United States Department of CommerceRoom H-383914th Street and Constitution Avenue, N.W.Washington, D.C. 20230

Page 3: UNITED STATES DEPARTMENT OF COMMERCE Bureau of …is not reached and a Charging Letter is issued. If a Charging Letter is issued, you must file a separate notice of appearance with

UNITED STATES DEPARTMENT OF COMMERCEBureau of Export AdministrationWashington, D.C. 20230

CERTIFIED MAIL - RETURN RECEIPT REOUESTED

Entegris, Inc.3500 Lyman BoulevardChaska, MN. 553 18

Attn: Jim DauwalterPresident and ChiefExecutive Ofjcer

Dear Mr. Dauwalter:

The Bureau of Export Administration, United States Department of Commerce (BXA), hereby chargesthat, as described in detail below, Entegris, Inc., as successor of the business of Fluoroware, (Entegris) hasviolated the Export Administration Regulations (currently codified at 15 C.F.R. Parts 730-774 (2000)) (theRegulations),’ issued under the Export Administration Act of 1979, as amended (50 U.S.C. app. $8 2401-2420 (1994 & Supp. IV 1998) and Pub. L. No. 106-508, 114 Stat. 2360) (the Act).*

Facts constituting violations:

Charges 1-124

As described in greater detail in Schedule A, which is enclosed herewith and incorporated herein byreference, BXA alleges that on 124 separate occasions from on or about February 27, 1996 through on orabout December 18, 1998, Entegris exported various valves, including diaphragm valves, items subject tothe former Regulations and Regulations, from the United States to Taiwan, Israel and the People’sRepublic of China without obtaining Department of Commerce licenses as required by Section 778.8 of

’ The violations at issue occurred from 1996 through 1998. The Regulations governing theviolations at issue are found in the 1996 through 1998 versions of the Code of Federal Regulations(15 C.F.R. Parts 768-799 (1996), as amended (61 Fed Reg. 12714, March 25, 1996)) (formerRegulations), and 15 C.F.R. Parts 730-774 (1997-1998)). The March 25, 1996 Federal Registerpublication redesignated, but did not republish, the then-existing Regulations as 15 C.F.R. Parts768A-799A. In addition, the March 25, 1996 Federal Register publication restructured andreorganized the Regulations, designating them as an interim rule at 15 C.F.R. Parts 730-774,effective April 24, 1996. The former Regulations define the various violations that BXA allegesoccurred during 1996. The Regulations define the various violations that BXA alleges occurredduring 1997 and 1998 and establish the procedures that apply to this matter.

* The Act expired on August 20,1994. Executive Order 12924 (3 C.F.R., 1994 Comp. 917(1995)), which had been extended by successive Presidential Notices, the most recent being that ofAugust 3,200O (65 Fed. Reg. 48347, August 8,2000), continued the Regulations in effect under theInternational Emergency Economic Powers Act (50 U.S.C. 50 1701-l 706 (1994 & Supp. IV 1998))until November 13,200O when the Act was reauthorized. See Pub. L. No. 106-508,114 Stat. 23

Page 4: UNITED STATES DEPARTMENT OF COMMERCE Bureau of …is not reached and a Charging Letter is issued. If a Charging Letter is issued, you must file a separate notice of appearance with

.

EntegrisCharging LetterPage 2

the former Regulations and Section 742.2 of the Regulations. BXA alleges that by exporting the valves toany person or to any destination in violation of or contrary to the provisions of the Act or any regulation,order or license issued thereunder, Entegris committed 7 violations of Section 787.6 and 14 violations ofSection 787A.6 of the former Regulations, and 103 violations of Section 764.2(a) of the Regulations, for atotal of 124 violations.

Accordingly, Entegris is hereby notified that an administrative proceeding is instituted against it pursuantto Section 13(c) of the Act and Part 766 of the Regulations for the purpose of obtaining an order imposingadministrative sanctions, including any or all of the following:

The maximum civil penalty allowed by law is $10,000 per violation, subject to the inflationadjustment;3

Denial of export privileges; and/or

Exclusion from practice before BXA.

If Entegris fails to answer the charges contained in this letter within 30 days after being served with noticeof issuance of this letter as provided in Section 766.6 of the Regulations, that failure will be treated as adefault under Section 766.7 of the Regulations.

Entegris is further notified that it is entitled to an agency hearing on the record as provided by Section13(c) of the Act and Section 766.6 of the Regulations, if a written demand for one is filed with its answer.Further, Entegris is entitled to be represented by counsel or other authorized representative who has powerof attorney to represent it. Entegris may also seek a consent settlement. See Sections 766.3 and 766.4 ofthe Regulations.

The U.S. Coast Guard is providing administrative law judge services in connection with the matters setforth in this letter. Entegris’ answer should be filed with the U.S. Coast Guard ALJ Docketing Center, 40S. Gay Street, Baltimore, Maryland 21202-4022, in accordance with the instructions in Section 766.5(a)of the Regulations. In addition, a copy of Entegris’ answer should be served on BXA at the followingaddress:

Melissa B. Mannino, Esq.Office of Chief Counselfor Export Administration

United States Department of CommerceRoom H-383914th Street and Constitution Avenue, N.W.Washington, D.C. 20230

3 The maximum civil penalty for any violation committed after October 23, 1996 and priorto November 1, 2000 is $11,000 per violation. See 15 C.F.R. § 6.4(a)(3) (2000).

,

., ,.’ ,.__

: .,’

Page 5: UNITED STATES DEPARTMENT OF COMMERCE Bureau of …is not reached and a Charging Letter is issued. If a Charging Letter is issued, you must file a separate notice of appearance with

EntegrisCharging LetterPage 3

Melissa B. Mannino is the attorney representing BXA in this case. She may be contacted by telephone at(202) 482-5304.

Sincerely,

Mark D. MenefeeDirectorOffice of Export Enforcement

Enclosure

Page 6: UNITED STATES DEPARTMENT OF COMMERCE Bureau of …is not reached and a Charging Letter is issued. If a Charging Letter is issued, you must file a separate notice of appearance with
Page 7: UNITED STATES DEPARTMENT OF COMMERCE Bureau of …is not reached and a Charging Letter is issued. If a Charging Letter is issued, you must file a separate notice of appearance with

. .

.’

:

Page 8: UNITED STATES DEPARTMENT OF COMMERCE Bureau of …is not reached and a Charging Letter is issued. If a Charging Letter is issued, you must file a separate notice of appearance with
Page 9: UNITED STATES DEPARTMENT OF COMMERCE Bureau of …is not reached and a Charging Letter is issued. If a Charging Letter is issued, you must file a separate notice of appearance with
Page 10: UNITED STATES DEPARTMENT OF COMMERCE Bureau of …is not reached and a Charging Letter is issued. If a Charging Letter is issued, you must file a separate notice of appearance with
Page 11: UNITED STATES DEPARTMENT OF COMMERCE Bureau of …is not reached and a Charging Letter is issued. If a Charging Letter is issued, you must file a separate notice of appearance with

‘.

,.

.,.

Page 12: UNITED STATES DEPARTMENT OF COMMERCE Bureau of …is not reached and a Charging Letter is issued. If a Charging Letter is issued, you must file a separate notice of appearance with

;

Page 13: UNITED STATES DEPARTMENT OF COMMERCE Bureau of …is not reached and a Charging Letter is issued. If a Charging Letter is issued, you must file a separate notice of appearance with

-1=.-

=.-I

=.-ffL.:I(;.:cC7

=.-

:

!

;ri

=.-

I

:

-

-1=.-=.-1.-I:.-I- -\I1=..=.-q .-

3.BI

:.-

1-

-i‘c)1 :i,=.-II’ I

=.-I

=.-f.,c.:I(;.!cIv

=.-:

L

ir;r

=.-

1

F

-

Page 14: UNITED STATES DEPARTMENT OF COMMERCE Bureau of …is not reached and a Charging Letter is issued. If a Charging Letter is issued, you must file a separate notice of appearance with

r

,

:.

-.’

:.

Page 15: UNITED STATES DEPARTMENT OF COMMERCE Bureau of …is not reached and a Charging Letter is issued. If a Charging Letter is issued, you must file a separate notice of appearance with

r

:’

.:..

_’

Page 16: UNITED STATES DEPARTMENT OF COMMERCE Bureau of …is not reached and a Charging Letter is issued. If a Charging Letter is issued, you must file a separate notice of appearance with
Page 17: UNITED STATES DEPARTMENT OF COMMERCE Bureau of …is not reached and a Charging Letter is issued. If a Charging Letter is issued, you must file a separate notice of appearance with
Page 18: UNITED STATES DEPARTMENT OF COMMERCE Bureau of …is not reached and a Charging Letter is issued. If a Charging Letter is issued, you must file a separate notice of appearance with

1.,

1 ._

..

‘.

,.’

Page 19: UNITED STATES DEPARTMENT OF COMMERCE Bureau of …is not reached and a Charging Letter is issued. If a Charging Letter is issued, you must file a separate notice of appearance with

UNITED STATES DEPARTMENT OF COMMERCEBUREAU OF EXPORT ADMINISTRATION

WASHINGTON, D.C. 20230

In the Matter of: 1

ENTEGRIS, INC., on its own behalf and )as successor to Fluoroware, Inc. >

3500 Lyman Boulevard >Chaska, Minnesota 553 18, >

SETTLEMENT AGREEMENT

This Settlement Agreement (Agreement) is made by and between Entegris, Inc., on its

own behalf and as successor to Fluoroware, Inc. (Entegris), and the Bureau of Export

Administration, United States Department of Commerce (BXA), pursuant to Section 766.1 S(a)

of the Export Administration Regulations (15 C.F.R. Parts 730-774 (200 1)) (the Regulations),’

issued pursuant to the Export Administration Act of 1979, as amended (50 U.S.C. app. $5 2401-

2420 (1994 & Supp. V 1999)) (Act),2 and which are currently maintained in force under the

’ The violations at issue occurred from 1996 through 1998. The Regulations governing theviolations at issue are found in the 1996 through 1998 versions of the Code of FederalRegulations (15 C.F.R. Parts 768-799 (1996), as amended (61 Fed. Reg. 12714, March 25,1996)(hereinafter referred to as the former regulations), and 15 C.F.R. Parts 730-774 (1997-1998)).The March 25, 1996 Federal Register publication redesignated, but did not republish, the then-existing Regulations as 15 C.F.R. Parts 768A-799A. In addition, the March 25, 1996 FederalRegister publication restructured and reorganized the Regulations, designating them as an interimrule at 15 C.F.R. Parts 730-774, effective April 24, 1996. The former regulations and theRegulations define the various violations that BXA alleges occurred; the Regulations establishthe procedures that apply to this matter.

2 From August 2 1, 1994 through November 12,2000, the Act was in lapse. During thatperiod, the President, through Executive Order 12924, which had been extended by successivePresidential Notices, the last of which was August 3,200O (3 C.F.R., 2000 Comp. 397 (2001)),continued the Regulations in effect under the International Emergency Economic Powers Act (50

r

, .‘. .__.,

Page 20: UNITED STATES DEPARTMENT OF COMMERCE Bureau of …is not reached and a Charging Letter is issued. If a Charging Letter is issued, you must file a separate notice of appearance with

Settlement AgreementEntegris, Inc.Page 2 of 5

International Emergency Economic Powers Act (50 U.S.C. $9 1701 - 1706 (1994 & Supp. V

1999)).

WHEREAS, BXA has notified Entegris of its intention to initiate an administrative

proceeding against Entegris pursuant to the Act and the Regulations, based on allegations that on

124 separate occasions from on or about February 27, 1996 through on or about December 18,

1998, Entegris exported from the United States diaphragm valves and components, items subject

to the former regulations and Regulations, to Israel, Taiwan, and the People’s Republic of China

without obtaining Department of Commerce licenses as required by Section 778.8 of the former

regulations and Section 742.2 of the Regulations;

WHEREAS, Entegris has reviewed a proposed charging letter and is aware of the

allegations made against it and the administrative sanctions which could be imposed against it if

the allegations are found to be true; it fully understands the terms of this Agreement and the

appropriate Order; it enters into this Agreement voluntarily and with full knowledge of its rights,

and it states that no promises or representations have been made to it other than the agreements

and considerations herein expressed;

WHEREAS, Entegris neither admits nor denies the allegations contained in the proposed

charging letter;

U.S.C. 6 3 170 1 - 1706 (1994 & Supp. V 1999)) (IEEPA). On November 13,2000, the Act wasreauthorized and it remained in effect through August 20,200l. Since August 21,2001, the Acthas been in lapse and the President, through Executive Order 13222 of August 17,200l (66 Fed.Reg. 44025 (August 22,2001)), has continued the Regulations in effect under IEEPA.

; /. *

‘,. ~...’ :..-, .,

Page 21: UNITED STATES DEPARTMENT OF COMMERCE Bureau of …is not reached and a Charging Letter is issued. If a Charging Letter is issued, you must file a separate notice of appearance with

Settlement AgreementEntegris, Inc.Page 3 of 5

WHEREAS, Entegris wishes to settle and dispose of all matters alleged in the proposed

charging letter by entering into this Agreement; and

WHEREAS, Entegris agrees to be bound by the appropriate Order giving effect to the

terms of this Settlement Agreement, when entered;

NOW THEREFORE, Entegris and BXA agree as follows:

1. BXA has jurisdiction over Entegris, under the Regulations, in connection with the

matters alleged in the proposed charging letter.

2. BXA and Entegris agree that the following sanctions shall be imposed against Entegris

in complete settlement of the alleged violations of the Regulations set forth in the proposed

charging letter:

a. Entegris shall be assessed a civil penalty in the amount of $496,000, $400,000 of

which shall be paid to the U.S. Department of Commerce within thirty days from

the date of entry of the appropriate Order. Payment of the remaining $96,000

shall be suspended for a period of one year from the date of entry of the

appropriate Order and thereafter shall be waived, provided that during the period

of suspension, Entegris has committed no violation of the Act, or any regulation,

order or license issued thereunder; and provided further that Entegris has made

timely payment of the $400,000.

b. The timely payment of the civil penalty agreed to in paragraph 2a. 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 Entegris. Failure to

. : ‘.; ,._. ,. .‘:, :

Page 22: UNITED STATES DEPARTMENT OF COMMERCE Bureau of …is not reached and a Charging Letter is issued. If a Charging Letter is issued, you must file a separate notice of appearance with

Settlement AgreementEntegris, Inc.Page 4 of 5

make timely payment of the civil penalty set forth above shall result in the denial

of all of Entegris’s export privileges for a period of one year from the date of

entry of the appropriate Order imposing the civil penalty.

3. Entegris agrees that, subject to the approval of this Agreement pursuant to paragraph 8

hereof, it hereby waives all rights to further procedural steps in this matter (except with respect to

any alleged violations of this Agreement or the appropriate Order, when entered), including,

without limitation, any right: (a) to an administrative hearing regarding the allegations in the

proposed charging letter; (b) to request a refund of any civil penalty paid pursuant to this

Agreement and the appropriate Order, when entered; and (c) to seek judicial review or otherwise

to contest the validity of this Agreement or the appropriate Order, when entered.

4. BXA agrees that, upon entry of the appropriate Order, it will not initiate any

administrative proceeding against Entegris in connection with any violation of the Act or the

Regulations arising out the transactions identified in the proposed charging letter.

5. Entegris understands that BXA will make the proposed charging letter, this

Agreement, and the appropriate Order, when entered, available to the public.

6. BXA and Entegris agree that this Agreement is for settlement purposes only.

Therefore, if this Agreement is not accepted and the appropriate Order is not issued by the

Assistant Secretary for Export Enforcement pursuant to Section 766.18(a) of the Regulations,

BXA and Entegris agree that they may not use this Agreement in any administrative or judicial

proceeding and that the parties shall not be bound by the terms contained in this Agreement in

any subsequent administrative or judicial proceeding.

,. . .

-‘,

Page 23: UNITED STATES DEPARTMENT OF COMMERCE Bureau of …is not reached and a Charging Letter is issued. If a Charging Letter is issued, you must file a separate notice of appearance with

’ .

Settlement AgreementEntegris, Inc.Page 5 of 5

7. No agreement, understanding, representation or interpretation not contained in this

Agreement may be used to vary or otherwise affect the terms of this Agreement or the

appropriate Order, when entered, nor shall this Agreement serve to 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 addressed herein.

8. This Agreement, which memorializes the parties’ oral agreement of August 23,2001,

shall become binding on BXA only when the Assistant Secretary for Export Enforcement

approves it by entering the appropriate Order, which will have the same force and effect as a

decision and order issued after a full administrative hearing on the record.

9. Each signatory affirms that he has authority to enter into this Settlement Agreement

and to bind his respective party to the terms and conditions set forth herein.

BUREAU OF EXPORT ADMINISTRATION ENTEGRIS, INC.U.S. DEPARTMENT OF COMMERCE

7AAb~Mark MenefeeDirectorOffice of Export Enforcement

Date. 4 1 l;t( L?

Frank D. Sidell, IIPresident - Fluid Handling Group

Date:p//&l

Page 24: UNITED STATES DEPARTMENT OF COMMERCE Bureau of …is not reached and a Charging Letter is issued. If a Charging Letter is issued, you must file a separate notice of appearance with

UNITED STATES DEPARTMENT OF COMMERCEBUREAU OF EXPORT ADMINISTRATION

WASHINGTON, D.C. 20230

In the Matter of: >

ENTEGRIS, INC., on its own behalf and )as successor to Fluoroware, Inc., 1

3 500 Lyman Boulevard >Chaska, Minnesota 553 18, >

ORDER

The Bureau of Export Administration, United States Department of Commerce (BXA),

having notified Entegris, Inc., on its own behalf and as successor to Fluoroware, Inc. (Entegris),

of its intention to initiate an administrative proceeding against it pursuant to Section 13(c) of the

Export Administration Act of 1979, as amended (50 U.S.C. app. 4 4 240 l-2420 (1994 & Supp. V

1999)) (Act),’ and the Export Administration Regulations (currently codified at 15 C.F.R. Parts

730-774 (2001)) (Regulations),2 based on allegations that on 124 separate occasions from on or

’ From August 2 1, 1994 through November 12,2000, the Act was in lapse. During thatperiod, the President, through Executive Order 12924, which had been extended by successivePresidential Notices, the last of which was August 3,200O (3 C.F.R., 2000 Comp. 397 (2001)),continued the Regulations then in effect under the International Emergency Economic PowersAct (50 U.S.C. §§1701 - 1706 (1994 & Supp. V 1999)) (IEEPA). On November 13,2000, theAct was reauthorized and it remained in effect through August 20,200l. Since August 21,2001,the Act has been in lapse and the President, through Executive Order 13222 of August 17,200l(66 Fed Reg. 44025 (August 22,2001)), has continued the Regulations in effect under IEEPA.

2 The violations at issue occurred from 1996 through 1998. The Regulations governing theseviolations at issue are found in the 1996 through 1998 versions of the Code of FederalRegulations (15 C.F.R. Parts 768-799 (1996), as amended (61 Fed. Reg. 12714, March 25,1996)(hereinafter referred to as the former regulations), and 15 C.F.R. Parts 730-774 (1997-l 998)).The March 25, 1996 Federal Register publication redesignated, but did not republish, the then-existing Regulations as 15 C.F.R. Parts 768A-799A. In addition, the March 25, 1996 FederalRegister publication restructured and reorganized the Regulations, designating them as an interim

,

:\ .

,.

Page 25: UNITED STATES DEPARTMENT OF COMMERCE Bureau of …is not reached and a Charging Letter is issued. If a Charging Letter is issued, you must file a separate notice of appearance with

Entegris, Inc.OrderPage 2 of 3

about February 27, 1996 through on or about December 18, 1998, Entegris exported from the

United States diaphragm valves and components, items subject to the former regulations and

Regulations, to Israel, Taiwan, and the People’s Republic of China without obtaining Department

of Commerce licenses as required by Section 778.8 of the former regulations and Section 742.2

of the Regulations, and;

BXA and Entegris having 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, and the terms of the Settlement Agreement having been

approved by me;

IT IS THEREFORE ORDERED:

FIRST, that a civil penalty of $496,000 is assessed against Entegris, $400,000 of which

shall be paid to the U.S. Department of Commerce within thirty days from the date of entry of

this Order. Payment shall be made in the manner specified in the attached instructions. Payment

of the remaining $96,000 shall be suspended for one year from the date of entry of this Order and

shall thereafter be waived, provided that, during the period of suspension, Entegris has

committed no violation of the Act, or any regulation, license or order issued thereunder; and

provided further that Entegris has made timely payment of the $400,000.

rule at 15 C.F.R. Parts 730-774, effective April 24, 1996. The former regulations and theRegulations define the various violations that BXA alleges occurred; the Regulations establishthe procedures that apply to this matter.

,:

-,,’ 3

. . ,.. ‘,‘, . . .

Page 26: UNITED STATES DEPARTMENT OF COMMERCE Bureau of …is not reached and a Charging Letter is issued. If a Charging Letter is issued, you must file a separate notice of appearance with

Entegris, Inc.OrderPage 3 of 3

SECOND, that, pursuant to the Debt Collection Act of 1982, as amended (3 1 U.S.C.

§§3701-3720E (1983 and Supp. 2000)) 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 date

specified herein, Entegris will be assessed, in addition to the full amount of the civil penalty and

interest, a penalty charge and an administrative charge, as more fully described in the attached

Notice.

THIRD, that the timely payment of the civil penalty set forth above is hereby made a

condition to the granting, restoration, or continuing validity of any export license, license

exception, permission, or privilege granted, or to be granted, to Entegris. Accordingly, if Entegris

should fail to pay the civil penalty in a timely manner, the undersigned will enter an Order denying

all of Entegris’s export privileges for a period of one year from the date of entry of this Order.

FOURTH, that the proposed Charging Letter, the Settlement Agreement, and this Order

shall be made available to the public.

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

immediately.

Assistant Secretaryfor Export Enforcement

22 ACEntered this day of October, 2001.

Page 27: UNITED STATES DEPARTMENT OF COMMERCE Bureau of …is not reached and a Charging Letter is issued. If a Charging Letter is issued, you must file a separate notice of appearance with

UNITED STATES DEPARTMENT OF COMMERCEBUREAU OF EXPORT ADMINISTRATION

WASHINGTON, D.C. 20230

In the Matter of: >)

ENTEGRIS, INC., on its own behalf and )as successor to Fluoroware, Inc., >

3 500 Lyman Boulevard >Chaska, Minnesota 553 18, >

>

ORDER

The Bureau of Export Administration, United States Department of Commerce (BXA),

having notified Entegris, Inc., on its own behalf and as successor to Fluoroware, Inc. (Entegris),

of its intention to initiate an administrative proceeding against it pursuant to Section 13(c) of the

Export Administration Act of 1979, as amended (50 U.S.C. app. $4 2401-2420 (1994 & Supp. V

1999)) (Act),’ and the Export Administration Regulations (currently codified at 15 C.F.R. Parts

730-774 (2001)) (Regulations),2 based on allegations that on 124 separate occasions from on or

’ From August 2 1, 1994 through November 12,2000, the Act was in lapse. During thatperiod, the President, through Executive Order 12924, which had been extended by successivePresidential Notices, the last of which was August 3,200O (3 C.F.R., 2000 Comp. 397 (2001)),continued the Regulations then in effect under the International Emergency Economic PowersAct (50 U.S.C. 9§1701 - 1706 (1994 & Supp. V 1999)) (IEEPA). OnNovember 13,2000, theAct was reauthorized and it remained in effect through August 20,200l. Since August 21,2001,the Act has been in lapse and the President, through Executive Order 13222 of August 17,200 1(66 Fed. Reg. 44025 (August 22,2001)), has continued the Regulations in effect under IEEPA.

2 The violations at issue occurred from 1996 through 1998. The Regulations governing theseviolations at issue are found in the 1996 through 1998 versions of the Code of FederalRegulations (15 C.F.R. Parts 768-799 (1996), as amended (61 Fed. Reg. 127 14, March 25, 1996)(hereinafter referred to as the former regulations), and 15 C.F.R. Parts 730-774 (1997-l 998)).The March 25, 1996 Federal Register publication redesignated, but did not republish, the then-existing Regulations as 15 C.F.R. Parts 768A-799A. In addition, the March 25, 1996 FederalRegister publication restructured and reorganized the Regulations, designating them as an interim

r

: 1.

‘, :.

Page 28: UNITED STATES DEPARTMENT OF COMMERCE Bureau of …is not reached and a Charging Letter is issued. If a Charging Letter is issued, you must file a separate notice of appearance with

Entegris, Inc.OrderPage 2 of 3

about February 27, 1996 through on or about December 18, 1998, Entegris exported from the

United States diaphragm valves and components, items subject to the former regulations and

Regulations, to Israel, Taiwan, and the People’s Republic of China without obtaining Department

of Commerce licenses as required by Section 778.8 of the former regulations and Section 742.2

of the Regulations, and;

BXA and Entegris having 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, and the terms of the Settlement Agreement having been

approved by me;

IT IS THEREFORE ORDERED:

FIRST, that a civil penalty of $496,000 is assessed against Entegris, $400,000 of which

shall be paid to the U.S. Department of Commerce within thirty days from the date of entry of

this Order. Payment shall be made in the manner specified in the attached instructions. Payment

of the remaining $96,000 shall be suspended for one year from the date of entry of this Order and

shall thereafter be waived, provided that, during the period of suspension, Entegris has

committed no violation of the Act, or any regulation, license or order issued thereunder; and

provided further that Entegris has made timely payment of the $400,000.

rule at 15 C.F.R. Parts 730-774, effective April 24, 1996. The former regulations and theRegulations define the various violations that BXA alleges occurred; the Regulations establishthe procedures that apply to this matter.

,

: \ * .: . _. .

Page 29: UNITED STATES DEPARTMENT OF COMMERCE Bureau of …is not reached and a Charging Letter is issued. If a Charging Letter is issued, you must file a separate notice of appearance with

I

Entegris, Inc.OrderPage 3 of 3

SECOND, that, pursuant to the Debt Collection Act of 1982, as amended (3 1 U.S.C.

§§3701-3720E (1983 and Supp. 2000)), 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 date

specified herein, Entegris will be assessed, in addition to the ml1 amount of the civil penalty and

interest, a penalty charge and an administrative charge, as more fully described in the attached

Notice.

THIRD, that the timely payment of the civil penalty set forth above is hereby made a

condition to the granting, restoration, or continuing validity of any export license, license

exception, permission, or privilege granted, or to be granted, to Entegris. Accordingly, if Entegris

should fail to pay the civil penalty in a timely manner, the undersigned will enter an Order denying

all of Entegris’s export privileges for a period of one year from the date of entry of this Order.

FOURTH, that the proposed Charging Letter, the Settlement Agreement, and this Order

shall be made available to the public.

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

immediately.

Assistant Secretaryfor Export Enforcement

2-2 /ILEntered this day of October, 2001.

. . -.; .’ ,... ., ,.