[Federal Register Volume 84, Number 23 (Monday, February 4, 2019)]
[Notices]
[Pages 1422-1423]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-00862]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
Order Denying Export Privileges
In the Matter of: Eduard Roel Vazquez, Inmate Number: 32385-479,
FCI Beaumont, P.O. Box 26020, Beaumont, TX 77720.
On March 22, 2018, in the U.S. District Court for the Southern
District of Texas, Eduard Roel Vazquez (``Vazquez'') was convicted of
violating Section 38 of the Arms Export Control Act (22 U.S.C. 2778
(2012)) (``AECA''). Vazquez was convicted of violating Section 38 of
the AECA by knowingly and willfully aiding and abetting the export of,
and attempting to export, two 7.62x39mm rifles and a 5.56mm rifle,
items designated as defense articles on the United States Munitions
List, from the United States to Mexico, without the required U.S.
Department of State licenses. Vazquez was sentenced to 38 months in
prison, three years of supervised release, and a $100 assessment.
The Export Administration Regulations (``EAR'' or ``Regulations'')
are administered and enforced by the U.S. Department of Commerce's
Bureau of Industry and Security (``BIS'').\1\
[[Page 1423]]
Section 766.25 of the Regulations provides, in pertinent part, that the
``Director of [BIS's] Office of Exporter Services, in consultation with
the Director of [BIS's] 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).\2\ In addition, pursuant to Section 750.8 of the
Regulations, BIS's Office of Exporter Services may revoke any BIS-
issued licenses in which the person had an interest at the time of his/
her conviction.\3\
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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) (``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, 132 Stat. 2208
(``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.
\2\ See also Section 11(h) of the EAA, 50 U.S.C. 4610(h) (Supp.
III 2015); Sections 1760(e) and 1768 of ECRA, Title XVII, Subtitle B
of Public Law 115-232, 132 Stat. 2208, 2225 and 2233 (Aug. 13,
2018); and note 1, supra.
\3\ See notes 1 and 2, supra.
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BIS has received notice of Vazquez's conviction for violating
Section 38 of the AECA, and has provided notice and an opportunity for
Vazquez to make a written submission to BIS, as provided in Section
766.25 of the Regulations. BIS has not received a submission from
Vazquez.
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 Vazquez's export privileges under the Regulations
for a period of 10 years from the date of Vazquez's conviction. I have
also decided to revoke all BIS-issued licenses in which Vazquez had an
interest at the time of his conviction.
Accordingly, it is hereby ordered:
First, from the date of this Order until March 22, 2028, Eduard
Roel Vazquez with a last known address of Inmate Number: 32385-479, FCI
Beaumont, P.O. Box 26020, Beaumont, TX 77720, 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 Vazquez 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, Vazquez 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 Vazquez and shall
be published in the Federal Register.
Sixth, this Order is effective immediately and shall remain in
effect until March 22, 2028.
Issued this 31 day of December, 2018.
Karen H. Nies-Vogel,
Director, Office of Exporter Services.
[FR Doc. 2019-00862 Filed 2-1-19; 8:45 am]
BILLING CODE P