83 FR 42109 - Order Denying Export Privileges

DEPARTMENT OF COMMERCE
Bureau of Industry and Security

Federal Register Volume 83, Issue 161 (August 20, 2018)

Page Range		42109-42110
FR Document		2018-17919
Federal Register, Volume 83 Issue 161 (Monday, August 20, 2018)
[Federal Register Volume 83, Number 161 (Monday, August 20, 2018)]
[Notices]
[Pages 42109-42110]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-17919]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security


Order Denying Export Privileges

    In the Matter of: Alex Bryukhov, 7907 Sprucemill Drive, 
Morrisville, PA 19067.

    On April 6, 2016, in the U.S. District Court for the Southern 
District of New York, Alex Bryukhov (``Bryukhov'') was convicted of 
violating Section 38 of the Arms Export Control Act (22 U.S.C. 2778 
(2012)) (``AECA''), among other crimes. Specifically, Bryukhov was 
convicted of knowingly and willfully exporting and attempting to 
export, from the United States to Russia, a FLIR T-60 Thermal Camera, 
gun parts, and an OASYS Night Vision Sight, which are items designated 
as defense articles on the United States Munitions List, without the 
required U.S. Department of State licenses. Bryukhov was sentenced to 
15 months in prison, three years of supervised release, and a $100 
assessment. Bryukhov is also listed on the U.S. Department of State 
Debarred List.
    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 
Export Administration Act (``EAA'' or ``the Act''), 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

[[Page 42110]]

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 Act or 
the Regulations in which the person had an interest at the time of his/
her conviction.
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    \1\ The Regulations are currently codified in the Code of 
Federal Regulations at 15 CFR parts 730-774 (2018). 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 15, 2017 (82 FR 39005 (Aug. 16, 2017)), 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 Bryukhov's conviction for violating 
Section 38 of the AECA, and has provided notice and an opportunity for 
Bryukhov to make a written submission to BIS, as provided in Section 
766.25 of the Regulations. BIS has not received a submission from 
Bryukhov.
    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 Bryukhov's export privileges under the Regulations 
for a period of 10 years from the date of Bryukhov's conviction. I have 
also decided to revoke all licenses issued pursuant to the Act or 
Regulations in which Bryukhov had an interest at the time of his 
conviction.
    Accordingly, it is hereby ordered:
    First, from the date of this Order until April 6, 2026, Alex 
Bryukhov, with a last known address of 7907 Sprucemill Drive, 
Morrisville, PA, 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 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 Bryukhov 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, Bryukhov 
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 Bryukhov and 
shall be published in the Federal Register.
    Sixth, this Order is effective immediately and shall remain in 
effect until April 6, 2026.

    Issued this 13th day of August 2018.
Karen H. Nies-Vogel,
Director, Office of Exporter Services.
[FR Doc. 2018-17919 Filed 8-17-18; 8:45 am]
 BILLING CODE P
Federal Register / Vol. 83, No. 161 / Monday, August 20, 2018 / Notices 42109

imported from certain countries. The steel micro rebar. Pursuant to 15 CFR DEPARTMENT OF COMMERCE
FTZ Board’s regulations (15 CFR 400.14(b), FTZ activity would be limited
400.14(e)) require that merchandise to the specific foreign-status material/ Bureau of Industry and Security
subject to AD/CVD orders, or items component and specific finished
which would be otherwise subject to Order Denying Export Privileges
product described in the submitted
suspension of liquidation under AD/ notification (as described below) and In the Matter of: Alex Bryukhov, 7907
CVD procedures if they entered U.S. subsequently authorized by the FTZ Sprucemill Drive, Morrisville, PA 19067.
customs territory, be admitted to the Board. On April 6, 2016, in the U.S. District
zone in privileged foreign status (19 Court for the Southern District of New
CFR 146.41). The request also indicates Production under FTZ procedures
could exempt Helix Steel from customs York, Alex Bryukhov (‘‘Bryukhov’’) was
that certain materials/components may convicted of violating Section 38 of the
be subject to special duties under duty payments on the foreign-status
component used in export production. Arms Export Control Act (22 U.S.C.
Section 301 of the Trade Act of 1974, if 2778 (2012)) (‘‘AECA’’), among other
imported from China. The On its domestic sales, for the foreign-
status material/component noted below, crimes. Specifically, Bryukhov was
determination of Section 301 duties convicted of knowingly and willfully
requires that such merchandise be Helix Steel would be able to choose the
exporting and attempting to export,
admitted to the zone in privileged duty rate during customs entry
from the United States to Russia, a FLIR
foreign status (19 CFR 146.41). procedures that applies to twisted steel T–60 Thermal Camera, gun parts, and
Public comment is invited from micro rebar (3.9%). Helix Steel would an OASYS Night Vision Sight, which
interested parties. Submissions shall be be able to avoid duty on foreign-status are items designated as defense articles
addressed to the Board’s Executive components which become scrap/waste. on the United States Munitions List,
Secretary at the address below. The Customs duties also could possibly be without the required U.S. Department of
closing period for their receipt is deferred or reduced on foreign-status State licenses. Bryukhov was sentenced
October 1, 2018. production equipment. to 15 months in prison, three years of
A copy of the notification will be supervised release, and a $100
The material/component sourced
available for public inspection at the assessment. Bryukhov is also listed on
from abroad is: 0.5 mm high-carbon
Office of the Executive Secretary, the U.S. Department of State Debarred
Foreign-Trade Zones Board, Room electroplated zinc wire (duty-free). The
request indicates that the material/ List.
21013, U.S. Department of Commerce, Section 766.25 of the Export
1401 Constitution Avenue NW, component is subject to special duties
Administration Regulations (‘‘EAR’’ or
Washington, DC 20230–0002, and in the under Section 232 of the Trade
‘‘Regulations’’) 1 provides, in pertinent
‘‘Reading Room’’ section of the Board’s Expansion Act of 1962, if imported from part, that ‘‘[t]he Director of the Office of
website, which is accessible via certain countries. The Section 232 Exporter Services, in consultation with
www.trade.gov/ftz. proclamation requires subject the Director of the Office of Export
For further information, contact Diane merchandise to be admitted to the zone Enforcement, may deny the export
Finver at Diane.Finver@trade.gov or in privileged foreign status (19 CFR privileges of any person who has been
(202) 482–1367. 146.41). convicted of a violation of the EAA
Dated: August 14, 2018. Public comment is invited from [Export Administration Act], the EAR,
Elizabeth Whiteman, interested parties. Submissions shall be or any order, license, or authorization
Acting Executive Secretary. addressed to the Board’s Executive issued thereunder; any regulation,
Secretary at the address below. The license or order issued under the
[FR Doc. 2018–17910 Filed 8–17–18; 8:45 am]
closing period for their receipt is International Emergency Economic
BILLING CODE 3510–DS–P
October 1, 2018. Powers Act (50 U.S.C. 1701–1706); 18
U.S.C. 793, 794 or 798; section 4(b) of
A copy of the notification will be the Internal Security Act of 1950 (50
DEPARTMENT OF COMMERCE available for public inspection at the U.S.C. 783(b)); or section 38 of the Arms
Office of the Executive Secretary, Export Control Act (22 U.S.C. 2778).’’ 15
Foreign-Trade Zones Board
Foreign-Trade Zones Board, Room CFR 766.25(a); see also Section 11(h) of
[B–51–2018] 21013, U.S. Department of Commerce, the Export Administration Act (‘‘EAA’’
1401 Constitution Avenue NW, or ‘‘the Act’’), 50 U.S.C. 4610(h). The
Foreign-Trade Zone (FTZ) 189—Kent/ Washington, DC 20230–0002, and in the denial of export privileges under this
Ottawa/Muskegon Counties, Michigan; provision may be for a period of up to
‘‘Reading Room’’ section of the Board’s
Notification of Proposed Production 10 years from the date of the conviction.
website, which is accessible via
Activity; Helix Steel; (Twisted Steel 15 CFR 766.25(d); see also 50 U.S.C.
www.trade.gov/ftz.
Micro Rebar); Grand Rapids, Michigan 4610(h). In addition, Section 750.8 of
For further information, contact
The KOM Foreign Trade Zone Elizabeth Whiteman at 1 The Regulations are currently codified in the
Authority, grantee of FTZ 189, Elizabeth.Whiteman@trade.gov or (202) Code of Federal Regulations at 15 CFR parts 730–
submitted a notification of proposed 482–0473. 774 (2018). The Regulations issued pursuant to the
production activity to the FTZ Board on Export Administration Act (50 U.S.C. 4601–4623
behalf of Helix Steel, located in Grand Dated: August 15, 2018. (Supp. III 2015) (available at http://
Rapids, Michigan. The notification Elizabeth Whiteman, uscode.house.gov)) (‘‘EAA’’ or ‘‘the Act’’). Since
daltland on DSKBBV9HB2PROD with NOTICES

August 21, 2001, the Act has been in lapse and the
conforming to the requirements of the Acting Executive Secretary. President, through Executive Order 13222 of August
regulations of the FTZ Board (15 CFR [FR Doc. 2018–17911 Filed 8–17–18; 8:45 am] 17, 2001 (3 CFR, 2001 Comp. 783 (2002)), which
400.22) was received on August 13, BILLING CODE 3510–DS–P
has been extended by successive Presidential
2018. Notices, the most recent being that of August 15,
2017 (82 FR 39005 (Aug. 16, 2017)), has continued
The Helix Steel facility is located the Regulations in effect under the International
within Site 11 of FTZ 189. The facility Emergency Economic Powers Act (50 U.S.C. 1701,
is used for the production of twisted et seq. (2012)).

VerDate Sep<11>2014 19:04 Aug 17, 2018 Jkt 244001 PO 00000 Frm 00010 Fmt 4703 Sfmt 4703 E:\FR\FM\20AUN1.SGM 20AUN1
42110 Federal Register / Vol. 83, No. 161 / Monday, August 20, 2018 / Notices

the Regulations states that the Bureau of A. Export or reexport to or on behalf Issued this 13th day of August 2018.
Industry and Security’s Office of of the Denied Person any item subject to Karen H. Nies-Vogel,
Exporter Services may revoke any the Regulations; Director, Office of Exporter Services.
Bureau of Industry and Security (‘‘BIS’’) B. Take any action that facilitates the [FR Doc. 2018–17919 Filed 8–17–18; 8:45 am]
licenses previously issued pursuant to acquisition or attempted acquisition by BILLING CODE P
the Act or the Regulations in which the the Denied Person of the ownership,
person had an interest at the time of his/ possession, or control of any item
her conviction. subject to the Regulations that has been DEPARTMENT OF COMMERCE
BIS has received notice of Bryukhov’s or will be exported from the United
conviction for violating Section 38 of States, including financing or other International Trade Administration
the AECA, and has provided notice and support activities related to a [A–570–082]
an opportunity for Bryukhov to make a transaction whereby the Denied Person
written submission to BIS, as provided acquires or attempts to acquire such Steel Wheels From the People’s
in Section 766.25 of the Regulations. ownership, possession or control; Republic of China: Postponement of
BIS has not received a submission from C. Take any action to acquire from or Preliminary Determination in the Less-
Bryukhov. to facilitate the acquisition or attempted Than-Fair-Value Investigation
Based upon my review and acquisition from the Denied Person of AGENCY: Enforcement and Compliance,
consultations with BIS’s Office of any item subject to the Regulations that International Trade Administration,
Export Enforcement, including its has been exported from the United Department of Commerce.
Director, and the facts available to BIS, States;
DATES: Applicable August 20, 2018.
I have decided to deny Bryukhov’s D. Obtain from the Denied Person in
export privileges under the Regulations FOR FURTHER INFORMATION CONTACT:
the United States any item subject to the
for a period of 10 years from the date of Regulations with knowledge or reason Lingjun Wang, AD/CVD Operations,
Bryukhov’s conviction. I have also to know that the item will be, or is Office VII, Enforcement and
decided to revoke all licenses issued intended to be, exported from the Compliance, International Trade
pursuant to the Act or Regulations in United States; or Administration, U.S. Department of
which Bryukhov had an interest at the Commerce, 1401 Constitution Avenue
E. Engage in any transaction to service NW, Washington, DC 20230; telephone
time of his conviction. any item subject to the Regulations that
Accordingly, it is hereby ordered: (202) 482–2316.
has been or will be exported from the
SUPPLEMENTARY INFORMATION:
First, from the date of this Order until United States and which is owned,
April 6, 2026, Alex Bryukhov, with a possessed or controlled by the Denied Background
last known address of 7907 Sprucemill Person, or service any item, of whatever On April 16, 2018, the Department of
Drive, Morrisville, PA, and when acting origin, that is owned, possessed or Commerce (Commerce) initiated a less-
for or on his behalf, his successors, controlled by the Denied Person if such than-fair-value (LTFV) investigation of
assigns, employees, agents or service involves the use of any item imports of certain steel wheels from the
representatives (‘‘the Denied Person’’), subject to the Regulations that has been People’s Republic of China (China).1
may not, directly or indirectly, or will be exported from the United Currently, the preliminary
participate in any way in any States. For purposes of this paragraph, determination is due no later than
transaction involving any commodity, servicing means installation, September 4, 2018.
software or technology (hereinafter maintenance, repair, modification or
collectively referred to as ‘‘item’’) testing. Postponement of Preliminary
exported or to be exported from the Third, after notice and opportunity for Determinations
United States that is subject to the comment as provided in Section 766.23 Section 733(b)(1)(A) of the Tariff Act
Regulations, including, but not limited of the Regulations, any other person, of 1930, as amended (the Act), requires
to: firm, corporation, or business Commerce to issue the preliminary
A. Applying for, obtaining, or using organization related to Bryukhov by determination in an LTFV investigation
any license, license exception, or export ownership, control, position of within 140 days after the date on which
control document; responsibility, affiliation, or other Commerce initiated the investigation.
B. Carrying on negotiations connection in the conduct of trade or However, section 733(c)(1) of the Act
concerning, or ordering, buying, business may also be made subject to permits Commerce to postpone the
receiving, using, selling, delivering, the provisions of this Order in order to preliminary determination until no later
storing, disposing of, forwarding, prevent evasion of this Order. than 190 days after the date on which
transporting, financing, or otherwise Fourth, in accordance with Part 756 of Commerce initiated the investigation if:
servicing in any way, any transaction the Regulations, Bryukhov may file an (A) The petitioner makes a timely
involving any item exported or to be appeal of this Order with the Under request for a postponement; or (B)
exported from the United States that is Secretary of Commerce for Industry and Commerce concludes that the parties
subject to the Regulations, or engaging Security. The appeal must be filed concerned are cooperating, that the
in any other activity subject to the within 45 days from the date of this investigation is extraordinarily
Regulations; or Order and must comply with the complicated, and that additional time is
C. Benefitting in any way from any provisions of Part 756 of the necessary to make a preliminary
daltland on DSKBBV9HB2PROD with NOTICES

transaction involving any item exported Regulations. determination. Under 19 CFR
or to be exported from the United States Fifth, a copy of this Order shall be 351.205(e), the petitioner must submit a
that is subject to the Regulations, or delivered to Bryukhov and shall be request for postponement 25 days or
from any other activity subject to the published in the Federal Register.
1 See Certain Steel Wheels from the People’s
Regulations. Sixth, this Order is effective Republic of China: Initiation of Less-Than-Fair-
Second, no person may, directly or immediately and shall remain in effect Value Investigation, 83 FR 17798 (April 24, 2018)
indirectly, do any of the following: until April 6, 2026. (Initiation Notice).

VerDate Sep<11>2014 19:04 Aug 17, 2018 Jkt 244001 PO 00000 Frm 00011 Fmt 4703 Sfmt 4703 E:\FR\FM\20AUN1.SGM 20AUN1
Document Created: 2018-08-18 01:29:23
Document Modified: 2018-08-18 01:29:23
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		83 FR 42109
83 FR 42109 - Order Denying Export Privileges

DEPARTMENT OF COMMERCEBureau of Industry and Security

Federal Register Volume 83, Issue 161 (August 20, 2018)

DEPARTMENT OF COMMERCE
Bureau of Industry and Security
