[Federal Register Volume 83, Number 193 (Thursday, October 4, 2018)]
[Notices]
[Pages 50074-50075]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-21640]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security


In the Matter of: Juan Diego Madrid, Inmate Number: 24877-479, 
FCI Bastrop, P.O. Box 1010, Bastrop, TX 78602; Order Denying Export 
Privileges

    On November 16, 2017, in the U.S. District Court for the Southern 
District of Texas, Juan Diego Madrid (``Madrid'') was convicted of 
violating Section 38 of the Arms Export Control Act (22 U.S.C. 2778 
(2012)) (``AECA''). Specifically, Madrid was convicted of knowingly 
exporting and attempting to export from the United States to Mexico 
firearms designated as defense articles on the United States Munitions 
List, without the required U.S. Department of State licenses. Madrid 
was sentenced to 65 months in prison, three years of supervised 
release, and an assessment of $100.
    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 . . . section 38 of 
the Arms Export Control Act (22 U.S.C. 2778).'' 15 CFR 766.25(a). 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). 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 (2018). The Regulations 
originally issued under the Export Administration Act of 1979, as 
amended, 50 U.S.C. 4601-4623 (Supp. III 2015) (``the EAA''), which 
lapsed on August 21, 2001. 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 8, 2018 (83 FR 39871 (Aug. 13, 2018)), 
continued the Regulations in full force and effect under the 
International Emergency Economic Powers Act, 50 U.S.C. 1701, et seq. 
(2012) (``IEEPA''). On August 13, 2018, the President signed into 
law the John S. McCain National Defense Authorization Act for Fiscal 
Year 2019, which includes the Export Control Reform Act of 2018, 
Title XVII, Subtitle B of Public Law 115-232 (``ECRA''). While 
Section 1766 of ECRA repeals the provisions of the EAA (except for 
three sections which are inapplicable here), Section 1768 of ECRA 
provides, in pertinent part, that all rules and regulations that 
were made or issued under the EAA, including as continued in effect 
pursuant to IEEPA, and were in effect as of ECRA's date of enactment 
(August 13, 2018), shall continue in effect according to their terms 
until modified, superseded, set aside, or revoked through action 
undertaken pursuant to the authority provided under ECRA.
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    BIS has received notice of Madrid's conviction for violating 
Section 38 of the AECA, and has provided notice and an opportunity for 
Madrid to make a written submission to BIS, as provided in Section 
766.25 of the Regulations. BIS has not received a submission from 
Madrid.
    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 Madrid's export privileges under the Regulations 
for a period of 10 years from the date of Madrid's conviction. I have 
also decided to revoke all licenses issued pursuant to the Act or 
Regulations in which Madrid had an interest at the time of his 
conviction.
    Accordingly, it is hereby Ordered:
    First, from the date of this Order until November 16, 2027, Juan 
Diego Madrid, with a last known address of Inmate Number: 24877-479, 
FCI Bastrop, P.O. Box 1010, Bastrop, TX 78602, 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

[[Page 50075]]

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 Madrid 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, Madrid 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 Madrid and shall 
be published in the Federal Register.
    Sixth, this Order is effective immediately and shall remain in 
effect until November 16, 2027.

    Issued: September 27, 2018.
Karen H. Nies-Vogel,
Director, Office of Exporter Services.
[FR Doc. 2018-21640 Filed 10-3-18; 8:45 am]
 BILLING CODE P