[Federal Register Volume 73, Number 17 (Friday, January 25, 2008)]
[Notices]
[Pages 4519-4521]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 08-293]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security


Action Affecting Export Privileges; Juan Sevilla; JS Engineering 
and Cientec, S.A. de. C.V.; In the Matter of Juan Sevilla 16123 Ardath 
Avenue Gardena, California 90249, Respondent; JS Engineering 16123 
Ardath Avenue Gardena, California 90249 and Cientec, S.A. de. C.V. 
Acatempan No. 2112 Chapultepec Country, 44620 Guadalajara, Jalisco 
Mexico; Related Persons

Order Denying Export Privileges

A. Denial of Export Privileges of Juan Sevilla

    On December 5, 2006, in the U.S. District Court for the Northern 
District of Illinois, Juan Sevilla (``Sevilla'') was found guilty on 
one count of violating the International Emergency Economic Powers Act 
(50 U.S.C. 1701-1706 (2000)) (``IEEPA''). Specifically, the Court found 
that Sevilla knowingly and willfully attempted to engage in the 
unauthorized sale and export to Iran of a United Computer Inclusive 
Hydraulic Floor Model Testing Machine. The testing machine is 
classified as EAR99. These systems test metals or plastic materials for 
tensile strength and the export of these systems to Iran requires an 
individual validated license from the Department of the Treasury, 
Office of Foreign Assets Control (``OFAC''). Failing to obtain the 
proper OFAC license for this item is also a violation of the Export 
Administration Regulations (``Regulations'').\1\ Sevilla was sentenced 
to probation for five years with a period of home

[[Page 4520]]

confinement of six months. The judge also ordered 100 hours of 
community service, a $100.00 special assessment and a $10,000.00 fine.
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    \1\ The Regulations are currently codified at 15 CFR Parts 730-
774 (2007).
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    Section 11(h) of the Export Administration Act of 1979, as amended 
(currently codified at 50 U.S.C. Section 2401-2420 (2000)) (the 
``Act'') \2\ and Section 766.25 of the Regulations provide, in 
pertinent part, that ``[t]he Director of Exporter Services, in 
consultation with the Director of the Office of Export Enforcement, may 
deny export privileges of any person who has been convicted of a 
violation of * * * IEEPA'' for a period not to exceed 10 years from the 
date of conviction. 15 CFR 766.25(a) and (d). In addition, Section 
750.8 of the Regulations states that BIS's Office of Exporter Services 
may revoke any BIS licenses previously issued in which the person had 
an interest at the time of his conviction.
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    \2\ 50 U.S.C. app. Section 2401-2420. Since August 21, 2001, the 
Act has been in lapse and the President, through Executive Order 
13222 of August 17, 2001 (3 CFR, 2001 Comp. 783 (2002)), as extended 
by the Notice of August 15, 2007 (72 FR 46137, Aug. 16, 2007), has 
continued the Regulations in effect under the International 
Emergency Economic Powers Act (50 U.S.C. 1701-1706 (2000)) 
(``IEEPA'').
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    I have received notice of Sevilla's conviction for violating the 
IEEPA, and have provided notice and an opportunity for Sevilla to make 
a written submission to the Bureau of Industry and Security as provided 
in Section 766.25 of the Regulations. I have received a written 
submission from Sevilla and, following consultations with the Office of 
Export Enforcement, including its Director, have decided to deny 
Sevilla's export privileges under the Regulations for a period of five 
years from the date of Sevilla's conviction. I have also decided to 
revoke all licenses issued pursuant to the Act or Regulations in which 
Sevilla had an interest at the time of his conviction.

B. Denial of Export Privileges of Related Persons

    Pursuant to Sections 766.25(h) and 766.23 of the Regulations, the 
Director of BIS's Office of Exporter Services, in consultation with the 
Director of BIS's Office of Export Enforcement, may take action to name 
persons related to a Respondent by ownership, control, position of 
responsibility, affiliation, or other connection in the conduct of 
trade or business in order to prevent evasion of a denial order. I gave 
notice to Cientec, S.A. de C.V. (``Cientec'') and JS Engineering that 
their export privileges under the Regulations could be denied for up to 
10 years due to their relationship with Sevilla and because BIS 
believes that naming them as persons related to Sevilla would be 
necessary to prevent evasion of a denial order imposed against Sevilla. 
Sevilla is the founder, owner and president of Cientec, S.A. Sevilla is 
also the owner of JS Engineering, an affiliate of Cientec based out of 
Sevilla's home in Gardenia, CA. JS Engineering and Cientec are related 
to Sevilla by ownership, control, position of responsibility, 
affiliation, or other connection in the conduct of trade or business. 
BIS believes that naming Cientec and JS Engineering as persons related 
to Sevilla is necessary to avoid evasion of the denial order against 
Sevilla because of the likelihood that Sevilla would continue to engage 
in trade through these companies.
    After receiving and considering submissions from JS Engineering and 
Cientec, I have decided, following consultations with the Office of 
Export Enforcement, including its Director, to name JS Engineering and 
Cientec as Related Persons to the Sevilla Denial Order, thereby denying 
their export privileges for five years from the date of Sevilla's 
conviction.
    I have also decided to revoke all licenses issued pursuant to the 
Act or Regulations in which the Related Persons had an interest at the 
time of Sevilla's conviction. The five-year denial period will end on 
December 5, 2011.
    Accordingly, it is hereby

Ordered

    I. Until December 5, 2011, Juan Sevilla, 16123 Ardath Avenue, 
Gardena, California 90249, when acting for or on behalf of Sevilla, his 
representatives, assigns, agents or employees, (``the Denied Person'') 
and the following persons related to the Denied Person as defined by 
Section 766.23 of the Regulations: JS Engineering, 16123 Ardath Avenue, 
Gardena, California 90249 and Cientec, S.A. de. C.V., Acatempan No. 
2112, Chapultepec Country, 44620, Guadalajara, Jalisco, Mexico, and 
when acting for or on their behalf, their employees, agents or 
representatives, (``the Related Persons'') (together, the Denied Person 
and the Related Persons are ``Persons Subject To This Order'') 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 
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 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 in any other activity subject to the Regulations.
    II. No person may, directly or indirectly, do any of the following:
    A. Export or reexport to or on behalf of the Persons Subject To 
This Order any item subject to the Regulations;
    B. Take any action that facilitates the acquisition or attempted 
acquisition by the Persons Subject To This Order 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 Persons 
Subject To This Order 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 Persons Subject To This Order of any 
item subject to the Regulations that has been exported from the United 
States;
    D. Obtain from the Persons Subject To This Order 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 Persons Subject To 
This Order, or service any item, of whatever origin, that is owned, 
possessed or controlled by the Persons Subject To This Order 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.
    III. In addition to the Related Persons named above, after notice 
and opportunity for comment as provided in section 766.23 of the 
Regulations, any other person, firm, corporation, or

[[Page 4521]]

business organization related to Sevilla 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 if necessary to prevent evasion of the Order.
    IV. This Order does not prohibit any export, reexport, or other 
transaction subject to the Regulations where the only items involved 
that are subject to the Regulations are the foreign-produced direct 
product of U.S.-origin technology.
    V. This Order is effective immediately and shall remain in effect 
until December 5, 2011.
    VI. In accordance with Part 756 of the Regulations, Sevilla may 
file an appeal of this Order with the Under Secretary of Commerce for 
Industry and Security. The appeal must be filed within 45 days from the 
date of this Order and must comply with the provisions of Part 756 of 
the Regulations.
    VII. In accordance with Part 756 of the Regulations, the Related 
Persons may also file an appeal of this Order with the Under Secretary 
of Commerce for Industry and Security.
    VIII. A copy of this Order shall be delivered to Sevilla and the 
Related Persons. This Order shall be published in the Federal Register.

    Dated: January 16, 2008.
Eileen M. Albanese,
Director, Office of Exporter Services.
[FR Doc. 08-293 Filed 1-24-08; 8:45 am]
BILLING CODE 3510-DT-M