[Federal Register Volume 84, Number 174 (Monday, September 9, 2019)]
[Notices]
[Pages 47241-47242]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-19416]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
Order Denying Export Privileges
In the Matter of: Sammy Smith, 1 Maple Avenue, Apartment 403,
Patchogue, NY 11772.
On July 9, 2018, in the U.S. District Court for the Eastern
District of New York, Sammy Smith (``Smith'') was convicted of
violating Section 38 of the Arms Export Control Act (22 U.S.C. 2778
(2012)) (``AECA''). Smith was convicted of violating Section 38 of the
AECA by knowingly and willfully attempting to export from the United
States to Turkey firearms components designated as defense articles on
the United States Munitions List, namely, Glock pistol upper receivers,
barrels and recoil springs, Lone Wolf pistol upper receivers with
matching barrels, and a Beretta PX4 pistol short barrel, without the
required U.S. Department of State licenses. Smith was sentenced to two
months in prison, six months of supervised release, and an assessment
of $100.
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\ 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 (2019). 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 14, 2019 (84 FR 41,881 (Aug. 15, 2019)),
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, 50
U.S.C. 4801-4852 (``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, 50 U.S.C. 4819 and
4826 (Aug. 13, 2018); and note 1, supra.
\3\ See notes 1 and 2, supra.
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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 seven years from the date of Smith's conviction. I have
also decided to revoke any BIS-issued license 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 July 9, 2025, Sammy Smith,
with a last known address of 1 Maple Avenue, Apartment 403, Patchogue,
NY 11772, 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 47242]]
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 July 9, 2025.
Issued this 30th day of August, 2019.
Karen H. Nies-Vogel,
Director, Office of Exporter Services.
[FR Doc. 2019-19416 Filed 9-6-19; 8:45 am]
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