[Federal Register Volume 86, Number 218 (Tuesday, November 16, 2021)]
[Notices]
[Pages 63333-63334]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-24910]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security


Order Denying Export Privileges; In the Matter of: Manuel 
Valencia-Hermosillo, 303 E South Mountain Avenue, Phoenix, AZ 85042

    On October 13, 2017, in the U.S. District Court for the District of 
Arizona, Manuel Valencia-Hermosillo (``Valencia-Hermosillo'') was 
convicted of violating Section 38 of the Arms Export Control Act, 22 
U.S.C. 2778 (2012) (``AECA''), by knowingly and willfully attempting to 
export and cause to be exported from the United States to Mexico, 
11,000 rounds of Wolf 7.62 x 39mm ammunition; 100 Palmetto State Armory 
5.56 rifle magazines; and 100 Korean 7.62 x 39 rifle magazines, all of 
which were designated as defense articles on the United States 
Munitions List, without the required U.S. Department of State licenses. 
Valencia-Hermosillo was sentenced to 15 months in prison with credit 
for time served, three years of supervised release, and an assessment 
of $100. Valencia-Hermosillo has been placed on the U.S. Department of 
State debarred list.
    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 Export Enforcement, in consultation with the Director of 
[BIS's] Office of Exporter Services, may deny the export privileges of 
any person who has been convicted of a violation of any of the statues 
set forth at 50 U.S.C. 4819 (e)(1)(B),'' \2\ including Section 38 of 
the AECA. 15 CFR 766.25(a).\3\ 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, pursuant to Section 
750.8 of the Regulations, BIS's Office of Exporter Services may revoke 
any BIS-issued licenses in which the person has an interest at the time 
of his/her conviction.\4\
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    \1\ The Regulations are currently codified in the Code of 
Federal Regulations at 15 CFR parts 730-774 (2021). 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 was 
extended by successive Presidential Notices, continued the 
Regulations in full force and effect under 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\ The Director, Office of Export Enforcement, is now the 
authorizing official for issuance of denial orders, pursuant to 
recent amendments to the Regulations (85 FR 73411, November 18, 
2020).
    \3\ As codified at the time of the underlying conviction at 
issue, Section 11(h)(1) of the EAA, as amended, provided that: ``No 
person convicted of a violation of this chapter (or any regulation, 
license, or order issued under this chapter), any regulation, 
license, or order issed under the International Emergnecy Economic 
Powers Act [50 U.S.C. 1701, et seq.], section 793, 794 or 798 of 
title 18, section 783(b) of this title, or section 2778 of title 22 
shall be eligible, at the discretion of the Secretary, to apply for 
or use any export license under this chapter for a period of up to 
10 years from the date of conviction. The Secretary may revoke any 
export license under this chapter in which such person has an 
interest at the time of conviction.'' 50 U.S.C. 4610(h)(1).
    \4\ See notes 1 and 3, supra.
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    BIS received notice of Valencia-Hermosillo's conviction for 
violating Section 38 of the AECA, and pursuant to Section 766.25 of the 
Regulations, has provided notice and an opportunity for Valencia-
Hermosillo to make a written submission to BIS. BIS has not received a 
written submission from Valencia-Hermosillo.
    Based upon my review of the record and consultations with BIS's 
Office of Exporter Services, including its Director, and the facts 
available to BIS, I have decided to deny Valencia-Hermosillo's export 
privileges under the Regulations for a period of seven years from the 
date of Valencia-Hermosillo's conviction. The Office of Exporter 
Services has also decided to revoke any BIS-issued license in which 
Valencia-Hermosillo had an interest at the time of his conviction.
    Accordingly, it is hereby ordered:First, from the date of this 
Order until October 13, 2024, Manuel Valencia-Hermosillo, with a last 
known address of 303 E. South Mountain Avenue, Phoenix, AZ 85042, and 
when acting for or on his behalf, his successors, assigns, employees, 
agents or representatives (``the Denied

[[Page 63334]]

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 766.23of the Regulations, any other person, firm, corporation, 
or business organization relatedto Valencia-Hermosillo by ownership, 
control, position of responsibility, affiliation, orother connection in 
the conduct of trade or business may also be made subject to 
theprovisions of this Order in order to prevent evasion of this Order.
    Fourth, in accordance with Part 756 of the Regulations, Valencia-
Hermosillo 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 Valencia-
Hermosillo and shall be published in the Federal Register.
    Sixth, this Order is effective immediately and shall remain in 
effect until October 13, 2024.

John Sonderman,
Director, Office of Export Enforement.
[FR Doc. 2021-24910 Filed 11-15-21; 8:45 am]
BILLING CODE 3510-DT-P