[Federal Register Volume 83, Number 193 (Thursday, October 4, 2018)]
[Notices]
[Pages 50070-50071]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-21651]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
In the Matter of: Francisco Xavier Martinez, Inmate Number:
21369-470, 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, Francisco Xavier Martinez (``Martinez'') was
convicted of violating Section 38 of the Arms Export Control Act (22
U.S.C. 2778 (2012)) (``AECA''). Specifically, Martinez 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.
Martinez was sentenced to 41 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
13,222 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 39,871 (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 Martinez's conviction for violating
Section 38 of the AECA, and has provided notice and an opportunity for
Martinez to make a written submission to BIS, as provided in Section
766.25 of the Regulations. BIS has not received a submission from
Martinez.
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 Martinez's export privileges under the Regulations
for a period of seven years from the date of Martinez's conviction. I
have also decided to revoke all licenses issued pursuant to the Act or
Regulations in which Martinez had an interest at the time of his
conviction.
Accordingly, it is hereby ordered:
First, from the date of this Order until November 16, 2024,
Francisco Xavier Martinez, with a last known address of Inmate Number:
21369-470, 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 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
[[Page 50071]]
organization related to Martinez 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, Martinez
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 Martinez and
shall be published in the Federal Register.
Sixth, this Order is effective immediately and shall remain in
effect until November 16, 2024.
Issued this September 27, 2018.
Karen H. Nies-Vogel,
Director, Office of Exporter Services.
[FR Doc. 2018-21651 Filed 10-3-18; 8:45 am]
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