80 FR 17718 - Order Denying Export Privileges

DEPARTMENT OF COMMERCE
Bureau of Industry and Security

Federal Register Volume 80, Issue 63 (April 2, 2015)

[Federal Register Volume 80, Number 63 (Thursday, April 2, 2015)]
[Notices]
[Pages 17718-17719]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-07641]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security


Order Denying Export Privileges

    In the Matter of: Ivon Castaneda, Inmate Number--99682-004, FCI 
Coleman Medium Federal Correctional Institution, P.O. Box 1032, 
Coleman, FL 33521,
    Washington, DC 20230

    On December 18, 2012, in the U.S. District Court, Southern District 
of Florida, Ivon Castaneda (``Castaneda''), was convicted of violating 
Section 38 of the Arms Export Control Act (22 U.S.C. 2778 (2012)) 
(``AECA''). Specifically, Castaneda conspired, knowingly and willfully 
attempted to export defense articles, that is AR-15/M-16 firearm 
barrels, receivers, components, parts, and accessories, from the United 
States to Honduras without having first obtained a license or written 
approval from the U.S. Department of State. Castaneda was sentenced 37 
months of imprisonment, two years of supervised release and fined a 
$200 assessment.
    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 the Export 
Administration Act (``EAA''), the EAR, or any order, license or 
authorization issued thereunder; any regulation, license, or order 
issued under the International Emergency Economic Powers Act (50 U.S.C. 
1701-1706); 18 U.S.C. 793, 794 or 798; section 4(b) of the Internal 
Security Act of 1950 (50 U.S.C. 783(b)), or section 38 of the Arms 
Export Control Act (22 U.S.C. 2778).'' 15 CFR 766.25(a); see also 
Section 11(h) of the EAA, 50 U.S.C. app. Sec.  2410(h). 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); see also 50 
U.S.C. app. Sec.  2410(h). 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 in which the person had an 
interest in 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 (2014). The Regulations 
issued pursuant to the Export Administration Act (50 U.S.C. app. 
Sec. Sec.  2401-2420 (2000)) (``EAA''). Since August 21, 2001, the 
EAA has been in lapse and the President, through Executive Order 
13222 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 7, 2014 (79 FR 46959 (August 11, 2014)), has 
continued the Regulations in effect under the International 
Emergency Economic Powers Act (50 U.S.C. 1701, et seq. (2006 & Supp. 
IV 2010)).
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    BIS has received notice of Castaneda's conviction for violating the 
AECA, and has provided notice and an opportunity for Castaneda to make 
a written submission to BIS, as provided in Section 766.25 of the 
Regulations. BIS has not received a submission from Castaneda.
    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 Castaneda's export privileges under the 
Regulations for a period of 10 years from the date of Castaneda's 
conviction. I have also decided to revoke all licenses issued pursuant 
to the Act or Regulations in which Castaneda had an interest at the 
time of her conviction.
    Accordingly, it is hereby ordered:
    First, from the date of this Order until December 18, 2022, Ivon 
Castaneda, with a last known address of Inmate Number--99682-004, FCI 
Coleman Medium, Federal Correctional Institution, P.O. Box 1032, 
Coleman, FL 33521, and when acting for or on her behalf, her 
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 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 in 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

[[Page 17719]]

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 Castaneda 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, Castaneda 
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 the Castaneda. 
This Order shall be published in the Federal Register.
    Sixth, this Order is effective immediately and shall remain in 
effect until December 18, 2022.

    Issued this 26th day of March, 2015.
Thomas Andrukonis,
Acting Director, Office of Exporter Services .
[FR Doc. 2015-07641 Filed 4-1-15; 8:45 am]
BILLING CODE CODE P