[Federal Register Volume 83, Number 73 (Monday, April 16, 2018)]
[Notices]
[Pages 16286-16287]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-07802]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security


In the Matter of: Stephen Edward Smith, Inmate Number: 30819-408, 
FCI LA Tuna, P.O. Box 3000, Anthony, NM 88021; Order Denying Export 
Privileges

    On April 13, 2017, in the U.S. District Court for the District of 
Arizona, Stephen Edward Smith (``Smith'') was convicted of violating 
Section 38 of the Arms Export Control Act (22 U.S.C. 2778 (2012)) 
(``AECA''), among other crimes. Specifically, Smith was convicted of 
knowingly and willfully exporting and causing to be exported from the 
United States to Hong Kong a Tikka Sporter .223 Rem Semi-automatic 
rifle and two silencers, which are items designated as defense articles 
on the United States Munitions List, without the required U.S. 
Department of State licenses. Smith was sentenced to 102 months in 
prison, with credit for time served, three years of supervised release, 
a criminal fine of $150,050 and a $300 special assessment, and ordered 
to forfeit $59,550 to the United States.
    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

[[Page 16287]]

Enforcement, may deny the export privileges of any person who has been 
convicted of a violation of the EAA [Export Administration Act], the 
EAR, or 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 Export Administration Act 
(``EAA'' or ``the Act''), 50 U.S.C. 4610(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. 
4610(h). In addition, Section 750.8 of 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 pursuant to the Act or the Regulations in which the 
person had an interest at the time of his/her conviction.
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    \1\ The Regulations are currently codified in the Code of 
Federal Regulations at 15 CFR parts 730-774 (2017). The Regulations 
issued pursuant to the Export Administration Act (50 U.S.C. 4601-
4623 (Supp. III 2015) (available at http://uscode.house.gov)) 
(``EAA'' or ``the Act''). 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)), which has been extended by 
successive Presidential Notices, the most recent being that of 
August 15, 2017 (82 FR 39005 (Aug. 16, 2017)), has continued the 
Regulations in effect under the International Emergency Economic 
Powers Act (50 U.S.C. 1701, et seq. (2012)).
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    BIS has received notice of Smith's conviction for violating Section 
38 of the AECA, and has provided notice and an opportunity for Smith to 
make a written submission to BIS, as provided in Section 766.25 of the 
Regulations. BIS has not received a submission from Smith.
    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 Smith's export privileges under the Regulations 
for a period of 10 years from the date of Smith's conviction. I have 
also decided to revoke all licenses issued pursuant to the Act or 
Regulations in which Smith had an interest at the time of his 
conviction.
    Accordingly, it is hereby ordered:
    First, from the date of this Order until April 13, 2027, Stephen 
Edward Smith, with a last known address of Inmate Number: 30819-408, 
FCI LA Tuna, P.O. Box 3000, Anthony, NM 88021, and when acting for or 
on his behalf, his successors, assigns, employees, agents or 
representatives (``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, 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, 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 Smith by ownership, control, 
position of responsibility, affiliation, or other connection in the 
conduct of trade or business may also be made subject to the provisions 
of this Order in order to prevent evasion of this Order.
    Fourth, in accordance with Part 756 of the Regulations, Smith 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.
    Fifth, a copy of this Order shall be delivered to Smith and shall 
be published in the Federal Register.
    Sixth, this Order is effective immediately and shall remain in 
effect until April 13, 2027.

     Issued this 6th day of April, 2018.
Karen H. Nies-Vogel,
Director, Office of Exporter Services.
[FR Doc. 2018-07802 Filed 4-13-18; 8:45 am]
BILLING CODE P