81 FR 64871 - Order Denying Export Privileges

DEPARTMENT OF COMMERCE
Bureau of Industry and Security

Federal Register Volume 81, Issue 183 (September 21, 2016)

Page Range		64871-64872
FR Document		2016-22679
Federal Register, Volume 81 Issue 183 (Wednesday, September 21, 2016)
[Federal Register Volume 81, Number 183 (Wednesday, September 21, 2016)]
[Notices]
[Pages 64871-64872]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-22679]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security


Order Denying Export Privileges

    In the Matter of: Francisco Javier Mendoza-Esquivel, Register 
Number: 62841-179, Federal Correctional Institution, 2001 Rickabaugh 
Drive, Big Spring, TX 79720.

    On August 11, 2015, in the U.S. District Court for the Southern 
District of Texas, Francisco Javier Mendoza-Esquivel (``Mendoza-
Esquivel''), was convicted of violating Section 38 of the Arms Export 
Control Act (22 U.S.C. 2778 (2012)) (``AECA''). Specifically, Mendoza-
Esquivel intentionally and knowingly conspired and agreed to knowingly 
and willfully export, attempt to export, and cause to be exported into 
Mexico from the United States a defense article, that is, to wit: 
Approximately five thousand eight hundred and sixty (5,860) rounds of 
7.62 x 39 mm caliber ammunition which were designated as defense 
articles on the United States Munitions List, without having first 
obtained from the Department of State a license for such export or 
written authorization for such export. Mendoza-Esquivel was sentenced 
51 months of imprisonment and a $100 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. 4610(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. 
4610(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 (2016). The Regulations 
issued pursuant to the Export Administration Act (50 U.S.C. 4601-
4623 (Supp. III 2015) (available at http://uscode.house.gov)). Since 
August 21, 2001, the Act 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 4, 2016 (81 FR 52,587 
(Aug. 8, 2016)), 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 Mendoza-Esquivel's conviction for 
violating the AECA, and has provided notice and an opportunity for 
Mendoza-Esquivel to make a written submission to BIS, as provided in 
Section 766.25 of the Regulations. BIS has not received a submission 
from Mendoza-Esquivel.
    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 Mendoza-Esquivel's export privileges under the 
Regulations for a period of 10 years from the date of Mendoza-
Esquivel's conviction. I have also decided to revoke all licenses 
issued pursuant to the Act or Regulations in which Mendoza-Esquivel had 
an interest at the time of his conviction.
    Accordingly, it is hereby Ordered:
    First, from the date of this Order until August 11, 2025, Francisco 
Javier Mendoza-Esquivel, with a last known address of Register Number: 
62841-179, Federal Correctional Institution, 2001 Rickabaugh Drive, Big 
Spring, TX 79720, 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 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

[[Page 64872]]

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 Mendoza-Esquivel 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, Mendoza-
Esquivel 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 Mendoza-
Esquivel. This Order shall be published in the Federal Register.
    Sixth, this Order is effective immediately and shall remain in 
effect until August 11, 2025.

    Issued this 14th day of September, 2016.
Karen H. Nies-Vogel,
Director, Office of Exporter Services.
[FR Doc. 2016-22679 Filed 9-20-16; 8:45 am]
 BILLING CODE P
Federal Register / Vol. 81, No. 183 / Wednesday, September 21, 2016 / Notices 64871

in the submitted notification (as DEPARTMENT OF COMMERCE from the date of the conviction. 15 CFR
described below) and subsequently 766.25(d); see also 50 U.S.C. 4610(h). In
authorized by the FTZ Board. Bureau of Industry and Security addition, Section 750.8 of the
Production under FTZ procedures Regulations states that the Bureau of
could exempt Givaudan from customs Order Denying Export Privileges Industry and Security’s Office of
duty payments on the foreign status In the Matter of: Francisco Javier Mendoza- Exporter Services may revoke any
components used in export production. Esquivel, Register Number: 62841–179, Bureau of Industry and Security (‘‘BIS’’)
On its domestic sales, Givaudan would Federal Correctional Institution, 2001 licenses previously issued in which the
be able to choose the duty rates during Rickabaugh Drive, Big Spring, TX 79720. person had an interest in at the time of
customs entry procedures that apply to On August 11, 2015, in the U.S. his conviction.
cocoa food preparations, dairy food District Court for the Southern District BIS has received notice of Mendoza-
preparations, coffee food preparations, of Texas, Francisco Javier Mendoza- Esquivel’s conviction for violating the
seasonings, sauces, alcoholic Esquivel (‘‘Mendoza-Esquivel’’), was AECA, and has provided notice and an
preparations for beverages, other food convicted of violating Section 38 of the opportunity for Mendoza-Esquivel to
preparations with dairy, confectionary Arms Export Control Act (22 U.S.C. make a written submission to BIS, as
preparations without sugar, other food 2778 (2012)) (‘‘AECA’’). Specifically, provided in Section 766.25 of the
preparations, food articles containing Mendoza-Esquivel intentionally and Regulations. BIS has not received a
sugar, other cyclanes, cyclenes and knowingly conspired and agreed to submission from Mendoza-Esquivel.
cycloterpenes, other cyclic knowingly and willfully export, attempt Based upon my review and
hydrocarbons, acyclic terpene alcohols, to export, and cause to be exported into consultations with BIS’s Office of
butanoic acids, pentanoic acids, their Mexico from the United States a defense Export Enforcement, including its
salts and esters, concentrated orange oil, article, that is, to wit: Approximately Director, and the facts available to BIS,
concentrated lemon oil, citrus oil five thousand eight hundred and sixty I have decided to deny Mendoza-
blends, aqueous distillates and aqueous (5,860) rounds of 7.62 x 39 mm caliber Esquivel’s export privileges under the
solutions of essential oils, terpenic by- ammunition which were designated as Regulations for a period of 10 years from
products of the deterpenation of defense articles on the United States the date of Mendoza-Esquivel’s
essential oils, flavor preparations for Munitions List, without having first conviction. I have also decided to
food or drink without alcohol, flavor obtained from the Department of State a revoke all licenses issued pursuant to
preparations for food or drink with license for such export or written the Act or Regulations in which
alcohol, odoriferous substances other authorization for such export. Mendoza- Mendoza-Esquivel had an interest at the
than food or drink or perfume bases Esquivel was sentenced 51 months of time of his conviction.
with alcohol, odiferous substances other imprisonment and a $100 assessment. Accordingly, it is hereby Ordered:
than food or drink or perfume bases Section 766.25 of the Export First, from the date of this Order until
without alcohol (duty rate ranges from Administration Regulations (‘‘EAR’’ or August 11, 2025, Francisco Javier
free to 70.4c/kg + 8.5%) for the foreign ‘‘Regulations’’) 1 provides, in pertinent Mendoza-Esquivel, with a last known
status inputs noted below. Customs part, that ‘‘[t]he Director of the Office of address of Register Number: 62841–179,
duties also could possibly be deferred or Exporter Services, in consultation with Federal Correctional Institution, 2001
reduced on foreign status production the Director of the Office of Export Rickabaugh Drive, Big Spring, TX
equipment. Enforcement, may deny the export 79720, and when acting for or on his
The materials sourced from abroad privileges of any person who has been behalf, his successors, assigns,
include benzaldehyde, vanillin, orange convicted of a violation of the Export employees, agents or representatives
oil, concentrated orange oil, lemon oil, Administration Act (‘‘EAA’’), the EAR, (the ‘‘Denied Person’’), may not, directly
and concentrated lemon oil (duty rate or any order, license or authorization or indirectly, participate in any way in
ranges from 2.7% to 5.5%). issued thereunder; any regulation, any transaction involving any
Public comment is invited from license, or order issued under the commodity, software or technology
interested parties. Submissions shall be International Emergency Economic (hereinafter collectively referred to as
addressed to the FTZ Board’s Executive Powers Act (50 U.S.C. 1701–1706); 18 ‘‘item’’) exported or to be exported from
Secretary at the address below. The U.S.C. 793, 794 or 798; section 4(b) of the United States that is subject to the
closing period for their receipt is the Internal Security Act of 1950 (50 Regulations, including, but not limited
October 31, 2016. U.S.C. 783(b)), or section 38 of the Arms to:
A copy of the notification will be Export Control Act (22 U.S.C. 2778).’’ 15 A. Applying for, obtaining, or using
available for public inspection at the CFR 766.25(a); see also Section 11(h) of any license, License Exception, or
Office of the Executive Secretary, the EAA, 50 U.S.C. 4610(h). The denial export control document;
Foreign-Trade Zones Board, Room of export privileges under this provision B. Carrying on negotiations
21013, U.S. Department of Commerce, may be for a period of up to 10 years concerning, or ordering, buying,
1401 Constitution Avenue NW.,
receiving, using, selling, delivering,
Washington, DC 20230–0002, and in the 1 The Regulations are currently codified in the
storing, disposing of, forwarding,
‘‘Reading Room’’ section of the FTZ Code of Federal Regulations at 15 CFR parts 730–
transporting, financing, or otherwise
Board’s Web site, which is accessible 774 (2016). The Regulations issued pursuant to the
Export Administration Act (50 U.S.C. 4601–4623 servicing in any way, any transaction
via www.trade.gov/ftz.
For further information, contact (Supp. III 2015) (available at http:// involving any item exported or to be
uscode.house.gov)). Since August 21, 2001, the Act exported from the United States that is
mstockstill on DSK3G9T082PROD with NOTICES

Kathleen Boyce at Kathleen.Boyce@ has been in lapse and the President, through
trade.gov or (202) 482–1346. Executive Order 13222 of August 17, 2001 (3 CFR,
subject to the Regulations, or in any
2001 Comp. 783 (2002)), which has been extended other activity subject to the Regulations;
Dated: September 15, 2016. by successive Presidential Notices, the most recent or
Andrew McGilvray, being that of August 4, 2016 (81 FR 52,587 (Aug. C. Benefitting in any way from any
Executive Secretary. 8, 2016)), has continued the Regulations in effect
under the International Emergency Economic
transaction involving any item exported
[FR Doc. 2016–22769 Filed 9–20–16; 8:45 am] Powers Act (50 U.S.C. 1701, et seq. (2006 & Supp. or to be exported from the United States
BILLING CODE 3510–DS–P IV 2010)). that is subject to the Regulations, or in

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Document Created: 2016-09-21 01:30:53
Document Modified: 2016-09-21 01:30:53
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
FR Citation		81 FR 64871
81 FR 64871 - Order Denying Export Privileges

DEPARTMENT OF COMMERCEBureau of Industry and Security

Federal Register Volume 81, Issue 183 (September 21, 2016)

DEPARTMENT OF COMMERCE
Bureau of Industry and Security
