82 FR 30830 - Order Denying Export Privileges

DEPARTMENT OF COMMERCE
Bureau of Industry and Security

Federal Register Volume 82, Issue 126 (July 3, 2017)

Page Range		30830-30831
FR Document		2017-13969
Federal Register, Volume 82 Issue 126 (Monday, July 3, 2017)
[Federal Register Volume 82, Number 126 (Monday, July 3, 2017)]
[Notices]
[Pages 30830-30831]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-13969]


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 DEPARTMENT OF COMMERCE

Bureau of Industry and Security


 Order Denying Export Privileges

In the Matter of Manuel Morales, Inmate Number: 45841-051, FCI 
Phoenix, 37910 N. 45th Avenue, Phoenix, AZ 85086.

    On June 1, 2016, in the U.S. District Court for the District of 
Arizona, Manuel Morales (``Morales'') was convicted of violating 
Section 38 of the Arms Export Control Act (22 U.S.C. 2778 (2012)) 
(``AECA''). Specifically, Morales was convicted of knowingly and 
intentionally combining, conspiring, confederating and agreeing with 
other persons, known and unknown, to export from the United States to 
Mexico defense articles designated on the United States Munitions List, 
namely, 540 rounds of 7.62 x 39 caliber ammunition and seven 7.62 x 39 
caliber magazines, without the required U.S. Department of State 
licenses. Morales was sentenced to 50 months in prison with credit for 
time served, 36 months of supervised release, and a $100 special 
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 EAA [Export 
Administration Act], 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 pursuant to 
the Export Administration Act (``EAA'' or ``the Act'') or the 
Regulations in which the person had an interest 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)) 
(``EAA'' or ``the Act''). 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. (2012)).
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    BIS has received notice of Morales's conviction for violating the 
AECA, and has provided notice and an opportunity for Morales to make a 
written submission to BIS, as provided in Section 766.25 of the 
Regulations. BIS has not received a submission from Morales.
    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 Morales's export privileges under the Regulations 
for a period of 10 years from the date of Morales's conviction. I have 
also decided to revoke all licenses issued pursuant to the Act or 
Regulations in which Morales had an interest at the time of his 
conviction.
    Accordingly, it is hereby ordered:
    First, from the date of this Order until June 1, 2026, Manuel 
Morales, with a last known address of Inmate Number: 45841-051, FCI 
Phoenix, 37910 N. 45th Avenue, Phoenix, AZ 85086, 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

[[Page 30831]]

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 Morales 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, Morales 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 Morales and shall 
be published in the Federal Register.
    Sixth, this Order is effective immediately and shall remain in 
effect until June 1, 2026.

    Dated: June 27, 2017.
Karen H. Nies-Vogel,
Director, Office of Exporter Services.
[FR Doc. 2017-13969 Filed 6-30-17; 8:45 am]
 BILLING CODE P
30830 Federal Register / Vol. 82, No. 126 / Monday, July 3, 2017 / Notices

Reservations are not accepted. To the ‘‘Regulations’’) 1 provides, in pertinent last known address of Inmate Number:
extent that time permits, members of the part, that ‘‘[t]he Director of the Office of 45841–051, FCI Phoenix, 37910 N. 45th
public may present oral statements to Exporter Services, in consultation with Avenue, Phoenix, AZ 85086, and when
the Committee. The public may submit the Director of the Office of Export acting for or on his behalf, his
written statements at any time before or Enforcement, may deny the export successors, assigns, employees, agents
after the meeting. However, to facilitate privileges of any person who has been or representatives (the ‘‘Denied
the distribution of public presentation convicted of a violation of the EAA Person’’), may not, directly or indirectly,
materials to the Committee members, [Export Administration Act], the EAR, participate in any way in any
the Committee suggests that presenters or any order, license, or authorization transaction involving any commodity,
forward the public presentation issued thereunder; any regulation, software or technology (hereinafter
materials prior to the meeting to Ms. license or order issued under the collectively referred to as ‘‘item’’)
Springer via email. International Emergency Economic exported or to be exported from the
The Assistant Secretary for Powers Act (50 U.S.C. 1701–1706); 18 United States that is subject to the
Administration, with the concurrence of U.S.C. 793, 794 or 798; section 4(b) of Regulations, including, but not limited
the delegate of the General Counsel, the Internal Security Act of 1950 (50 to:
formally determined on February 22, U.S.C. 783(b)); or section 38 of the Arms A. Applying for, obtaining, or using
2017, pursuant to Section 10(d) of the Export Control Act (22 U.S.C. 2778).’’ 15 any license, license exception, or export
Federal Advisory Committee Act, as CFR 766.25(a); see also Section 11(h) of control document;
amended, that the portion of the the EAA, 50 U.S.C. 4610(h). The denial B. Carrying on negotiations
meeting dealing with matters of which of export privileges under this provision concerning, or ordering, buying,
would be likely to frustrate significant may be for a period of up to 10 years receiving, using, selling, delivering,
implementation of a proposed agency from the date of the conviction. 15 CFR storing, disposing of, forwarding,
action as described in 5 U.S.C. 766.25(d); see also 50 U.S.C. 4610(h). In transporting, financing, or otherwise
552b(c)(9)(B) shall be exempt from the addition, Section 750.8 of the servicing in any way, any transaction
provisions relating to public meetings Regulations states that the Bureau of involving any item exported or to be
found in 5 U.S.C., App. 2, 10(a)(1) and Industry and Security’s Office of exported from the United States that is
10(a)(3). The remaining portions of the Exporter Services may revoke any subject to the Regulations, or engaging
meeting will be open to the public. Bureau of Industry and Security (‘‘BIS’’) in any other activity subject to the
For more information, call Yvette licenses previously issued pursuant to Regulations; or
Springer at (202) 482–2813. the Export Administration Act (‘‘EAA’’ C. Benefitting in any way from any
or ‘‘the Act’’) or the Regulations in transaction involving any item exported
Yvette Springer, which the person had an interest at the or to be exported from the United States
Committee Liaison Officer. time of his conviction. that is subject to the Regulations, or
[FR Doc. 2017–13872 Filed 6–30–17; 8:45 am] BIS has received notice of Morales’s from any other activity subject to the
BILLING CODE 3510–JT–P conviction for violating the AECA, and Regulations.
has provided notice and an opportunity Second, no person may, directly or
for Morales to make a written indirectly, do any of the following:
DEPARTMENT OF COMMERCE submission to BIS, as provided in A. Export or reexport to or on behalf
Section 766.25 of the Regulations. BIS of the Denied Person any item subject to
Bureau of Industry and Security has not received a submission from the Regulations;
Morales. B. Take any action that facilitates the
Order Denying Export Privileges Based upon my review and acquisition or attempted acquisition by
In the Matter of Manuel Morales, Inmate consultations with BIS’s Office of the Denied Person of the ownership,
Number: 45841–051, FCI Phoenix, 37910 Export Enforcement, including its possession, or control of any item
N. 45th Avenue, Phoenix, AZ 85086. Director, and the facts available to BIS, subject to the Regulations that has been
I have decided to deny Morales’s export or will be exported from the United
On June 1, 2016, in the U.S. District privileges under the Regulations for a States, including financing or other
Court for the District of Arizona, Manuel period of 10 years from the date of support activities related to a
Morales (‘‘Morales’’) was convicted of Morales’s conviction. I have also transaction whereby the Denied Person
violating Section 38 of the Arms Export decided to revoke all licenses issued acquires or attempts to acquire such
Control Act (22 U.S.C. 2778 (2012)) pursuant to the Act or Regulations in ownership, possession or control;
(‘‘AECA’’). Specifically, Morales was which Morales had an interest at the C. Take any action to acquire from or
convicted of knowingly and time of his conviction. to facilitate the acquisition or attempted
intentionally combining, conspiring, Accordingly, it is hereby ordered: acquisition from the Denied Person of
confederating and agreeing with other First, from the date of this Order until any item subject to the Regulations that
persons, known and unknown, to export June 1, 2026, Manuel Morales, with a has been exported from the United
from the United States to Mexico States;
defense articles designated on the 1 The Regulations are currently codified in the
D. Obtain from the Denied Person in
United States Munitions List, namely, Code of Federal Regulations at 15 CFR parts 730–
the United States any item subject to the
540 rounds of 7.62 x 39 caliber 774 (2016). The Regulations issued pursuant to the
Export Administration Act (50 U.S.C. 4601–4623 Regulations with knowledge or reason
ammunition and seven 7.62 x 39 caliber (Supp. III 2015) (available at http:// to know that the item will be, or is
magazines, without the required U.S. uscode.house.gov)) (‘‘EAA’’ or ‘‘the Act’’). Since
sradovich on DSK3GMQ082PROD with NOTICES

intended to be, exported from the
Department of State licenses. Morales August 21, 2001, the Act has been in lapse and the
President, through Executive Order 13222 of August
United States; or
was sentenced to 50 months in prison 17, 2001 (3 CFR, 2001 Comp. 783 (2002)), which E. Engage in any transaction to service
with credit for time served, 36 months has been extended by successive Presidential any item subject to the Regulations that
of supervised release, and a $100 special Notices, the most recent being that of August 4, has been or will be exported from the
assessment. 2016 (81 FR 52,587 (Aug. 8, 2016)), has continued
the Regulations in effect under the International
United States and which is owned,
Section 766.25 of the Export Emergency Economic Powers Act (50 U.S.C. 1701, possessed or controlled by the Denied
Administration Regulations (‘‘EAR’’ or et seq. (2012)). Person, or service any item, of whatever

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Federal Register / Vol. 82, No. 126 / Monday, July 3, 2017 / Notices 30831

origin, that is owned, possessed or 4. Industry Presentations: Quantum Correctional Institution, P.O. Box 2000,
controlled by the Denied Person if such Computing Folkston, GA 31437.
service involves the use of any item 5. New business
subject to the Regulations that has been On June 30, 2015, in the U.S. District
Thursday, July 27 Court for the Northern District of
or will be exported from the United
States. For purposes of this paragraph, Closed Session Illinois, Edwin Navarro Makasiar II
servicing means installation, (‘‘Makasiar’’) was convicted of violating
6. Discussion of Matters Determined to Section 38 of the Arms Export Control
maintenance, repair, modification or be Exempt From the Provisions
testing. Act (22 U.S.C. 2778 (2012)) (‘‘AECA’’).
Relating to Public Meetings Found Specifically, Makasiar was convicted of
Third, after notice and opportunity for in 5 U.S.C. App. 2, 10(a)(1) and
comment as provided in Section 766.23 knowingly and willfully attempting to
10(a)(3) export from the United States to the
of the Regulations, any other person, The open session will be accessible
firm, corporation, or business Philippines defense articles designated
via teleconference to 20 participants on on the United States Munitions List,
organization related to Morales by a first come, first serve basis. To join the
ownership, control, position of namely, two Glock Model 23, .40 caliber
conference, submit inquiries to Ms. pistols and approximately 2,500 rounds
responsibility, affiliation, or other Yvette Springer at Yvette.Springer@
connection in the conduct of trade or of .223 caliber and 5.56 mm
bis.doc.gov, no later than July 19, 2017. ammunition, without the required U.S.
business may also be made subject to A limited number of seats will be
the provisions of this Order in order to Department of State licenses. Makasiar
available for the public session.
prevent evasion of this Order. was sentenced to 60 months in prison,
Reservations are not accepted. To the
Fourth, in accordance with Part 756 of a $2,000 criminal fine, and a $200
extent time permits, members of the
the Regulations, Morales may file an assessment.
public may present oral statements to
appeal of this Order with the Under the Committee. The public may submit Section 766.25 of the Export
Secretary of Commerce for Industry and written statements at any time before or Administration Regulations (‘‘EAR’’ or
Security. The appeal must be filed after the meeting. However, to facilitate ‘‘Regulations’’) 1 provides, in pertinent
within 45 days from the date of this distribution of public presentation part, that ‘‘[t]he Director of the Office of
Order and must comply with the materials to Committee members, the Exporter Services, in consultation with
provisions of Part 756 of the Committee suggests that public the Director of the Office of Export
Regulations. presentation materials or comments be Enforcement, may deny the export
Fifth, a copy of this Order shall be forwarded before the meeting to Ms. privileges of any person who has been
delivered to Morales and shall be Springer. convicted of a violation of the EAA
published in the Federal Register. The Assistant Secretary for [Export Administration Act], the EAR,
Sixth, this Order is effective Administration, with the concurrence of or any order, license, or authorization
immediately and shall remain in effect the delegate of the General Counsel, issued thereunder; any regulation,
until June 1, 2026. formally determined on February 27, license or order issued under the
Dated: June 27, 2017. 2017, pursuant to Section 10(d) of the International Emergency Economic
Karen H. Nies-Vogel, Federal Advisory Committee Act, as Powers Act (50 U.S.C. 1701–1706); 18
Director, Office of Exporter Services. amended (5 U.S.C. App. 2, (10)(d)), that U.S.C. 793, 794 or 798; section 4(b) of
[FR Doc. 2017–13969 Filed 6–30–17; 8:45 am] the portion of the meeting concerning the Internal Security Act of 1950 (50
BILLING CODE P
trade secrets and commercial or U.S.C. 783(b)); or section 38 of the Arms
financial information deemed privileged Export Control Act (22 U.S.C. 2778).’’ 15
or confidential as described in 5 U.S.C. CFR 766.25(a); see also Section 11(h) of
DEPARTMENT OF COMMERCE 552b(c)(4) and the portion of the the EAA, 50 U.S.C. 4610(h). The denial
meeting concerning matters the of export privileges under this provision
Bureau of Industry and Security disclosure of which would be likely to may be for a period of up to 10 years
frustrate significantly implementation of from the date of the conviction. 15 CFR
Information Systems Technical an agency action as described in 5 766.25(d); see also 50 U.S.C. 4610(h). In
Advisory Committee; Notice of U.S.C. 552b(c)(9)(B) shall be exempt addition, Section 750.8 of the
Partially Closed Meeting from the provisions relating to public Regulations states that the Bureau of
The Information Systems Technical meetings found in 5 U.S.C. App. 2, Industry and Security’s Office of
Advisory Committee (ISTAC) will meet 10(a)(1) and 10(a)(3). The remaining Exporter Services may revoke any
on July 26 and 27, 2017, 9:00 a.m., in portions of the meeting will be open to Bureau of Industry and Security (‘‘BIS’’)
the Herbert C. Hoover Building, Room the public. licenses previously issued pursuant to
3884, 14th Street between Constitution For more information, call Yvette the Export Administration Act (‘‘EAA’’
Springer at (202) 482–2813. or ‘‘the Act’’) or the Regulations in
and Pennsylvania Avenues NW.,
Washington, DC. The Committee Yvette Springer,
advises the Office of the Assistant Committee Liaison Officer. 1 The Regulations are currently codified in the

Secretary for Export Administration on Code of Federal Regulations at 15 CFR parts 730–
[FR Doc. 2017–13871 Filed 6–30–17; 8:45 am] 774 (2016). The Regulations issued pursuant to the
technical questions that affect the level BILLING CODE 3510–JT–P Export Administration Act (50 U.S.C. 4601–4623
of export controls applicable to (Supp. III 2015) (available at http://
information systems equipment and uscode.house.gov)) (‘‘EAA’’ or ‘‘the Act’’). Since
sradovich on DSK3GMQ082PROD with NOTICES

technology. August 21, 2001, the Act has been in lapse and the
DEPARTMENT OF COMMERCE President, through Executive Order 13222 of August
Wednesday, July 26 17, 2001 (3 CFR, 2001 Comp. 783 (2002)), which
Bureau of Industry and Security has been extended by successive Presidential
Open Session Notices, the most recent being that of August 4,
Order Denying Export Privileges 2016 (81 FR 52,587 (Aug. 8, 2016)), has continued
1. Welcome and Introductions the Regulations in effect under the International
2. Working Group Reports In the Matter of: Edwin Navarro Makasiar Emergency Economic Powers Act (50 U.S.C. 1701,
3. Old Business II, Inmate Number: 47704–424, D. Ray James et seq. (2012)).

VerDate Sep<11>2014 17:53 Jun 30, 2017 Jkt 241001 PO 00000 Frm 00016 Fmt 4703 Sfmt 4703 E:\FR\FM\03JYN1.SGM 03JYN1
Document Created: 2018-11-14 10:19:14
Document Modified: 2018-11-14 10:19:14
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		82 FR 30830
82 FR 30830 - Order Denying Export Privileges

DEPARTMENT OF COMMERCEBureau of Industry and Security

Federal Register Volume 82, Issue 126 (July 3, 2017)

DEPARTMENT OF COMMERCE
Bureau of Industry and Security
