81 FR 81732 - Order Denying Export Privileges

DEPARTMENT OF COMMERCE
Bureau of Industry and Security

Federal Register Volume 81, Issue 223 (November 18, 2016)

[Federal Register Volume 81, Number 223 (Friday, November 18, 2016)]
[Notices]
[Pages 81732-81733]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-27784]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security


 Order Denying Export Privileges

    In the Matter of: Jorge Santana, Jr., Inmate Number: 00927-180, 
FCI Beaumont Low, Federal Correctional Institution, P.O. Box 26020, 
Beaumont, TX 77720.

    On May 5, 2014, in the U.S. District Court for the Southern 
District of Texas, Jorge Santana, Jr. (``Santana''), was convicted of 
violating Section 38 of the Arms Export Control Act (22 U.S.C. 2778 
(2012)) (``AECA''). Specifically, Santana knowingly and willfully 
attempted to export and caused to be exported from the United States to 
Mexico a defense article, that is, a .357 caliber magazine, two (2) 9mm 
magazines, a Smith & Wesson .40 caliber magazine, approximately 5,440 
rounds of 7.62 caliber ammunition, 200 rounds of .40 caliber 
ammunition, and 400 rounds of .38 super caliber ammunition, which were 
designed as a defense article 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. Santana was 
sentenced to 66 months in prison, three years of supervised release, 
100 hours of community service, 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 Santana's conviction for violating the 
AECA, and has provided notice and an opportunity for Santana to make a 
written submission to BIS, as provided in Section 766.25 of the 
Regulations. BIS has not received a submission from Santana.
    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 Santana's export privileges under the Regulations 
for a period of 10 years from the date of Santana's conviction. I have 
also decided to revoke all licenses issued pursuant to the Act or 
Regulations in which Santana had an interest at the time of his 
conviction.
    Accordingly, it is hereby ordered:
    First, from the date of this Order until May 5, 2024, Jorge 
Santana, Jr., with a last known address of Inmate Number: 00927-180, 
FCI Beaumont Low, Federal Correctional Institution, P.O. Box 26020, 
Beaumont, TX 77720, 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 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

[[Page 81733]]

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 Santana 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, Santana 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 Santana. This 
Order shall be published in the Federal Register.
    Sixth, this Order is effective immediately and shall remain in 
effect until May 5, 2024.

    Issued this 9th day of November, 2016.
Karen H. Nies-Vogel,
Director, Office of Exporter Services.
[FR Doc. 2016-27784 Filed 11-17-16; 8:45 am]
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