[Federal Register Volume 78, Number 1 (Wednesday, January 2, 2013)]
[Notices]
[Pages 86-88]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-31442]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security


In the Matter of:

    Henson Chua, 2945 Somerset Place, San Marino, CA 91108, and with an 
address at:
    Henson Chua, 27 Cambridge Street, Hillsborough Village, Muntin Lupa 
City, Philippines, 1780,
    Respondent; Celltron Marketing Company, a.k.a. Celltron Mktg. Co., 
47A G. Araneta Ave, Quezon City, MM Philippines, 1105,
    Related Person; Order Denying Export Privileges

A. Denial of Export Privileges of Henson Chua

    On November 8, 2011, in the U.S. District Court, Middle District of 
Florida Tampa Division, Henson Chua (``Chua'') was convicted of 
violating Section 38 of the Arms Export Control Act (22 U.S.C. 2778 
(2000)) (``AECA''). Specifically, Chua was convicted of knowingly and 
willfully causing the temporary import into the United States, an 
unmanned aerial vehicle, which was designated as a defense article on 
the United States Munitions List, without having first obtained from 
the U.S. Department of State a license or written authorization for 
such temporary import.
    Chua was sentenced to time served followed by three years of 
supervised release. Chua was ordered to pay a fine of $13,000 and a 
special assessment of $100.00. Chua is also listed on the U.S. 
Department of State Debarred List.
    Section 766.25 of the Export Administration Regulations (``EAR'' or 
``Regulations'') \1\ provides, in pertinent part, that ``[t]he Director 
of the Office of Exporter Services, in consultation with the Director 
of the Office of Export Enforcement, may deny the export privileges of 
any person who has been convicted of a violation of the EAA, the EAR, 
of any order, license or authorization issued thereunder; any 
regulation, license, or order issued under the International Emergency 
Economic Powers Act (50 U.S.C. 1701-1706); 18 U.S.C. 793, 794 or 798; 
section 4(b) of the Internal Security Act of 1950 (50 U.S.C. 783(b)), 
or section 38 of the Arms Export Control Act (22 U.S.C. 2778).'' 15 CFR 
766.25(a); see also Section 11(h) of the EAA, 50 U.S.C. app. Sec.  
2410(h). The denial of export privileges under this provision may be 
for a period of up to 10 years from the date of the conviction. 15 CFR 
766.25(d); see also 50 U.S.C. app. Sec.  2410(h). In addition, Section 
750.8 of

[[Page 87]]

the Regulations states that the Bureau of Industry and Security's 
Office of Exporter Services may revoke any Bureau of Industry and 
Security (``BIS'') licenses previously issued in which the person had 
an interest in at the time of his conviction.
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    \1\ The Regulations are currently codified in the Code of 
Federal Regulations at 15 CFR parts 730-774 (2012). The Regulations 
issued pursuant to the EAA (50 U.S.C. app. Sec. Sec.  2401-2420 
(2000)). Since August 21, 2001, the Export Administration Act 
(``EAA'') has been in lapse and the President, through Executive 
Order 13222 of August 17, 2001 (3 CFR, 2001 Comp. 783 (2002)), which 
has been extended by successive Presidential Notices, the most 
recent being that of August 12, 2012 (77 FR 49699, August 16, 2012), 
has continued the Regulations in effect under International 
Emergency Economics Powers Act (50 U.S.C. 1701, et seq. (2000)).
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    I have received notice of Chua's conviction for violating the AECA, 
and have provided notice and an opportunity for Chua to make a written 
submission to BIS, as provided in Section 766.25 of the Regulations. I 
have received a submission from Chua. Based upon my review and 
consultations with BIS's Office of Export Enforcement, including its 
Director, and the facts available to BIS, I have decided to deny Chua's 
export privileges under the Regulations for a period of five years from 
the date of Chua's conviction. I have also decided to revoke all 
licenses issued pursuant to the Act or Regulations in which Chua had an 
interest at the time of his conviction.

B. Denial of Export Privileges of Related Person

    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. 
Celltron is the name of the company that Chua utilized in his dealing 
with Immigration and Customs Enforcement (``ICE''), Homeland Security 
Investigations (``HIS''). He used this company as the sender of the 
goods to HIS/ICE. Therefore Celltron is related to Chua by ownership, 
control, position of responsibility, affiliation, or other connection 
in the conduct of trade or business. BIS believes that naming Celltron 
as a related person to Chua is necessary to avoid evasion of the denial 
order against Chua.
    As provided in Section 766.23 of the Regulations, I gave notice to 
Celltron that its export privileges under the Regulations could be 
denied for up to 10 years due to its relationship with Chua and that 
BIS believes naming it as a person related to Chua would be necessary 
to prevent evasion of a denial order imposed against Chua. In providing 
such notice, I gave Celltron an opportunity to oppose its addition to 
the Chua Denial Order as a related party. Having received a submission 
from Chua, I have decided, following consultations with BIS's Office of 
Export Enforcement, including its Director, to name Celltron as a 
Related Person to the Chua Denial Order, thereby denying its export 
privileges for five years from the date of Chua's conviction.
    I have also decided to revoke all licenses issued pursuant to the 
Act or Regulations in which the Related Person had an interest at the 
time of Chua's conviction. The five-year denial period will end on 
November 8, 2016.
    Accordingly, it is hereby
    Ordered
    I. Until November 8, 2016, Henson Chua, with last known addresses 
at: 2945 Somerset Place, San Marino, CA 91108, and 27 Cambridge Street, 
Hillsborough Village, Muntin Lupa City, Philippines, 1780, and when 
acting for or on behalf of Chua, his representatives, assigns, agents 
or employees (collectively referred to hereinafter as the ``Denied 
Person''), and the following person related to the Denied Person as 
defined by Section 766.23 of the Regulations: Celltron Marketing 
Company, a.k.a. Celltron Mktg. Co., with a last known address at: 47A 
G. Araneta Ave, Quezon City, MM Philippines, 1105, and when acting for 
or on behalf of Celltron, its successors or assigns, agents, or 
employees (``the Related Person'') (together, the Denied Person and the 
Related Person 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 
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 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 acquire or attempt 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 Person named above, after notice 
and opportunity for comment as provided in section 766.23 of the 
Regulations, any other 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 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 November 8, 2016.
    VI. In accordance with Part 756 of the Regulations, Chua 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.

[[Page 88]]

    VII. In accordance with Part 756 of the Regulations, the Related 
Person may also 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.
    VIII. A copy of this Order shall be delivered to the Denied Person 
and the Related Person. This Order shall be published in the Federal 
Register.

    Issued this 21st day of December 2012.
Bernard Kritzer,
Director, Office of Exporter Services.
[FR Doc. 2012-31442 Filed 12-31-12; 8:45 am]
BILLING CODE P