[Federal Register Volume 84, Number 52 (Monday, March 18, 2019)]
[Notices]
[Pages 9752-9753]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-04907]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security


Amended Order Denying Export Privileges

    In the Matter of: Shavkat Abdullaev, Inmate Number: 73083-279, 
Moshannon Valley Correctional Institution, 555 Geo Drive, 
Philipsburg, PA 16866.

    On December 1, 2016, in the U.S. District Court for the Eastern 
District of New York, Shavkat Abdullaev (``Abdullaev'') was convicted 
of violating the International Emergency Economic Powers Act (50 U.S.C. 
1701, et seq. (2012)) (``IEEPA''). Specifically, Abdullaev was 
convicted of knowingly and intentionally exporting from the United 
States to Russia microelectronics without the required U.S. Department 
of Commerce licenses. Abdullaev was sentenced to 36 months in prison, 
two years of supervised release, and a $400 assessment.
    On December 31, 2018, I issued an Order denying Abdullaev's export 
privileges pursuant to Section 766.25 of the Export Administration 
Regulations (``EAR'' or ``Regulations''), for a period of five (5) 
years from the date of his conviction.\1\ In addition, pursuant to 
Section 750.8 of the Regulations, the Order also revoked any licenses 
issued by the Bureau of Industry and Security (``BIS'') in which 
Abdullaev had an interest 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 (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 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, 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.
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    Prior to issuance of the December 31, 2018 Order, BIS, in 
accordance with Section 766.25 of the Regulations, provided Abdullaev 
notice of the proposed action and an opportunity to make a written 
submission opposing it. Unknown to BIS at the time, Abdullaev had 
mailed a submission, dated December 19, 2018, opposing the proposed 
action. Due apparently to the partial U.S. Government shutdown, BIS did 
not receive Abdullaev's submission until January 30, 2019. It is 
possible that, but for the shutdown, the submission may have been 
received by BIS in timely fashion.
    In light of the foregoing, I have reviewed and considered 
Abdullaev's submission \2\ and the record as a whole. Based upon review 
and consideration Abdullaev's submission and all available facts, in 
addition to my consultations with BIS's Office of Export Enforcement 
and its Director, I hereby affirm my decision denying Abdullaev's 
export privileges under the Regulations for a period of five years from 
the date of Abdullaev's conviction, and revoking any BIS-issued 
licenses in which Abdullaev had an interest at the time of his 
conviction. Thus, in sum, the terms of the December 31, 2018 Order are 
hereby affirmed, except as amended herein to reflect receipt and 
consideration of Abdullaev's written submission.
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    \2\ In his one-page submission, Abdullaev ultimately contended 
that he did not intend to violate or circumvent the law and that his 
conviction was accordingly on appeal. His conviction has since been 
affirmed by the U.S. Court of Appeals for the Second Circuit, by 
summary order dated February 7, 2019. United States v. Abdullaev, 
No. 17-104-cr (L), 2019 U.S. App. LEXIS 3772 (2d Cir. Feb. 7, 2019) 
(summary order). In affirming his conviction, the Second Circuit 
held ``that there was ample evidence from which the jury could 
conclude that Abdullaev acted with knowledge that his conduct was 
unlawful when he prepared fraudulent documentation for each charged 
export.'' Id. at *5-*6.
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    Accordingly, it is hereby ordered:
    First, from the date of this Order until December 1, 2021, Shavkat 
Abdullaev with a last known address of Inmate Number: 73083-279, 
Moshannon Valley Correctional Institution, 555 Geo Drive, Philipsburg, 
PA 16866, 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.

[[Page 9753]]

    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 Abdullaev 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, Abdullaev 
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 Abdullaev and 
shall be published in the Federal Register.
    Sixth, this Order is effective immediately and shall remain in 
effect until December 1, 2021.

    Issued on March 8, 2019.
Karen H. Nies-Vogel,
Director, Office of Exporter Services.
[FR Doc. 2019-04907 Filed 3-15-19; 8:45 am]
BILLING CODE P