83 FR 50070 - In the Matter of: Francisco Xavier Martinez, Inmate Number: 21369-470, FCI Bastrop, P.O. Box 1010, Bastrop, TX 78602; Order Denying Export Privileges

DEPARTMENT OF COMMERCE
Bureau of Industry and Security

Federal Register Volume 83, Issue 193 (October 4, 2018)

Page Range		50070-50071
FR Document		2018-21651

Federal Register, Volume 83 Issue 193 (Thursday, October 4, 2018)

[Federal Register Volume 83, Number 193 (Thursday, October 4, 2018)]
[Notices]
[Pages 50070-50071]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-21651]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security


In the Matter of: Francisco Xavier Martinez, Inmate Number: 
21369-470, FCI Bastrop, P.O. Box 1010, Bastrop, TX 78602; Order Denying 
Export Privileges

    On November 16, 2017, in the U.S. District Court for the Southern 
District of Texas, Francisco Xavier Martinez (``Martinez'') was 
convicted of violating Section 38 of the Arms Export Control Act (22 
U.S.C. 2778 (2012)) (``AECA''). Specifically, Martinez was convicted of 
knowingly exporting and attempting to export from the United States to 
Mexico firearms designated as defense articles on the United States 
Munitions List, without the required U.S. Department of State licenses. 
Martinez was sentenced to 41 months in prison, three years of 
supervised release, and an assessment of $100.
    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 . . . section 38 of 
the Arms Export Control Act (22 U.S.C. 2778).'' 15 CFR 766.25(a). 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). 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 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 
originally issued under the Export Administration Act of 1979, as 
amended, 50 U.S.C. 4601-4623 (Supp. III 2015) (``the EAA''), which 
lapsed on August 21, 2001. The President, through Executive Order 
13,222 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 8, 2018 (83 FR 39,871 (Aug. 13, 2018)), 
continued the Regulations in full force and effect under the 
International Emergency Economic Powers Act, 50 U.S.C. 1701, et seq. 
(2012) (``IEEPA''). On August 13, 2018, the President signed into 
law the John S. McCain National Defense Authorization Act for Fiscal 
Year 2019, which includes the Export Control Reform Act of 2018, 
Title XVII, Subtitle B of Public Law 115-232 (``ECRA''). While 
Section 1766 of ECRA repeals the provisions of the EAA (except for 
three sections which are inapplicable here), Section 1768 of ECRA 
provides, in pertinent part, that all rules and regulations that 
were made or issued under the EAA, including as continued in effect 
pursuant to IEEPA, and were in effect as of ECRA's date of enactment 
(August 13, 2018), shall continue in effect according to their terms 
until modified, superseded, set aside, or revoked through action 
undertaken pursuant to the authority provided under ECRA.
---------------------------------------------------------------------------

    BIS has received notice of Martinez's conviction for violating 
Section 38 of the AECA, and has provided notice and an opportunity for 
Martinez to make a written submission to BIS, as provided in Section 
766.25 of the Regulations. BIS has not received a submission from 
Martinez.
    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 Martinez's export privileges under the Regulations 
for a period of seven years from the date of Martinez's conviction. I 
have also decided to revoke all licenses issued pursuant to the Act or 
Regulations in which Martinez had an interest at the time of his 
conviction.
    Accordingly, it is hereby ordered:
    First, from the date of this Order until November 16, 2024, 
Francisco Xavier Martinez, with a last known address of Inmate Number: 
21369-470, FCI Bastrop, P.O. Box 1010, Bastrop, TX 78602, 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

[[Page 50071]]

organization related to Martinez 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, Martinez 
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 Martinez and 
shall be published in the Federal Register.
    Sixth, this Order is effective immediately and shall remain in 
effect until November 16, 2024.

    Issued this September 27, 2018.
Karen H. Nies-Vogel,
Director, Office of Exporter Services.
[FR Doc. 2018-21651 Filed 10-3-18; 8:45 am]
 BILLING CODE P

50070 Federal Register / Vol. 83, No. 193 / Thursday, October 4, 2018 / Notices

closing period for their receipt is part, that ‘‘[t]he Director of the Office of Regulations, including, but not limited
December 3, 2018. Rebuttal comments Exporter Services, in consultation with to:
in response to material submitted the Director of the Office of Export A. Applying for, obtaining, or using
during the foregoing period may be Enforcement, may deny the export any license, license exception, or export
submitted during the subsequent 15-day privileges of any person who has been control document;
period to December 18, 2018. convicted of a violation of . . . section B. Carrying on negotiations
A copy of the application will be 38 of the Arms Export Control Act (22 concerning, or ordering, buying,
available for public inspection at the U.S.C. 2778).’’ 15 CFR 766.25(a). The receiving, using, selling, delivering,
Office of the Executive Secretary, denial of export privileges under this storing, disposing of, forwarding,
Foreign-Trade Zones Board, Room provision may be for a period of up to transporting, financing, or otherwise
21013, U.S. Department of Commerce, 10 years from the date of the conviction. servicing in any way, any transaction
1401 Constitution Avenue NW, 15 CFR 766.25(d). In addition, Section involving any item exported or to be
Washington, DC 20230–0002, and in the 750.8 of the Regulations states that the exported from the United States that is
‘‘Reading Room’’ section of the FTZ Bureau of Industry and Security’s Office subject to the Regulations, or engaging
Board’s website, which is accessible via of Exporter Services may revoke any in any other activity subject to the
www.trade.gov/ftz. For further Bureau of Industry and Security (‘‘BIS’’) Regulations; or
information, contact Qahira El-Amin at licenses previously issued pursuant to C. Benefitting in any way from any
Qahira.El-Amin@trade.gov or (202) 482– the Act or the Regulations in which the transaction involving any item exported
5928. person had an interest at the time of his/ or to be exported from the United States
Dated: September 27, 2018. her conviction. that is subject to the Regulations, or
BIS has received notice of Martinez’s from any other activity subject to the
Andrew McGilvray,
conviction for violating Section 38 of Regulations.
Executive Secretary. Second, no person may, directly or
the AECA, and has provided notice and
[FR Doc. 2018–21615 Filed 10–3–18; 8:45 am] indirectly, do any of the following:
an opportunity for Martinez to make a
BILLING CODE 3510–DS–P
written submission to BIS, as provided A. Export or reexport to or on behalf
in Section 766.25 of the Regulations. of the Denied Person any item subject to
BIS has not received a submission from the Regulations;
DEPARTMENT OF COMMERCE B. Take any action that facilitates the
Martinez.
Based upon my review and acquisition or attempted acquisition by
Bureau of Industry and Security the Denied Person of the ownership,
consultations with BIS’s Office of
In the Matter of: Francisco Xavier Export Enforcement, including its possession, or control of any item
Martinez, Inmate Number: 21369–470, Director, and the facts available to BIS, subject to the Regulations that has been
FCI Bastrop, P.O. Box 1010, Bastrop, I have decided to deny Martinez’s or will be exported from the United
TX 78602; Order Denying Export export privileges under the Regulations States, including financing or other
Privileges for a period of seven years from the date support activities related to a
of Martinez’s conviction. I have also transaction whereby the Denied Person
On November 16, 2017, in the U.S. acquires or attempts to acquire such
decided to revoke all licenses issued
District Court for the Southern District ownership, possession or control;
pursuant to the Act or Regulations in
of Texas, Francisco Xavier Martinez C. Take any action to acquire from or
which Martinez had an interest at the
(‘‘Martinez’’) was convicted of violating to facilitate the acquisition or attempted
time of his conviction.
Section 38 of the Arms Export Control acquisition from the Denied Person of
Accordingly, it is hereby ordered:
Act (22 U.S.C. 2778 (2012)) (‘‘AECA’’). any item subject to the Regulations that
First, from the date of this Order until
Specifically, Martinez was convicted of has been exported from the United
November 16, 2024, Francisco Xavier
knowingly exporting and attempting to States;
Martinez, with a last known address of
export from the United States to Mexico D. Obtain from the Denied Person in
Inmate Number: 21369–470, FCI
firearms designated as defense articles the United States any item subject to the
Bastrop, P.O. Box 1010, Bastrop, TX
on the United States Munitions List, Regulations with knowledge or reason
78602, and when acting for or on his
without the required U.S. Department of to know that the item will be, or is
behalf, his successors, assigns,
State licenses. Martinez was sentenced intended to be, exported from the
employees, agents or representatives
to 41 months in prison, three years of United States; or
(‘‘the Denied Person’’), may not, directly E. Engage in any transaction to service
supervised release, and an assessment of
or indirectly, participate in any way in any item subject to the Regulations that
$100.
any transaction involving any has been or will be exported from the
Section 766.25 of the Export
commodity, software or technology United States and which is owned,
Administration Regulations (‘‘EAR’’ or
(hereinafter collectively referred to as possessed or controlled by the Denied
‘‘Regulations’’) 1 provides, in pertinent
‘‘item’’) exported or to be exported from Person, or service any item, of whatever
1 The Regulations are currently codified in the the United States that is subject to the origin, that is owned, possessed or
Code of Federal Regulations at 15 CFR parts 730– controlled by the Denied Person if such
774 (2018). The Regulations originally issued under 2019, which includes the Export Control Reform
the Export Administration Act of 1979, as amended, Act of 2018, Title XVII, Subtitle B of Public Law service involves the use of any item
50 U.S.C. 4601–4623 (Supp. III 2015) (‘‘the EAA’’), 115–232 (‘‘ECRA’’). While Section 1766 of ECRA subject to the Regulations that has been
which lapsed on August 21, 2001. The President, repeals the provisions of the EAA (except for three or will be exported from the United
through Executive Order 13,222 of August 17, 2001 sections which are inapplicable here), Section 1768 States. For purposes of this paragraph,
daltland on DSKBBV9HB2PROD with NOTICES

(3 CFR, 2001 Comp. 783 (2002)), which has been of ECRA provides, in pertinent part, that all rules
extended by successive Presidential Notices, the and regulations that were made or issued under the servicing means installation,
most recent being that of August 8, 2018 (83 FR EAA, including as continued in effect pursuant to maintenance, repair, modification or
39,871 (Aug. 13, 2018)), continued the Regulations IEEPA, and were in effect as of ECRA’s date of testing.
in full force and effect under the International enactment (August 13, 2018), shall continue in Third, after notice and opportunity for
Emergency Economic Powers Act, 50 U.S.C. 1701, effect according to their terms until modified,
et seq. (2012) (‘‘IEEPA’’). On August 13, 2018, the superseded, set aside, or revoked through action
comment as provided in Section 766.23
President signed into law the John S. McCain undertaken pursuant to the authority provided of the Regulations, any other person,
National Defense Authorization Act for Fiscal Year under ECRA. firm, corporation, or business

VerDate Sep<11>2014 17:43 Oct 03, 2018 Jkt 247001 PO 00000 Frm 00008 Fmt 4703 Sfmt 4703 E:\FR\FM\04OCN1.SGM 04OCN1

Federal Register / Vol. 83, No. 193 / Thursday, October 4, 2018 / Notices 50071

organization related to Martinez by part, that ‘‘[t]he Director of the Office of the United States that is subject to the
ownership, control, position of Exporter Services, in consultation with Regulations, including, but not limited
responsibility, affiliation, or other the Director of the Office of Export to:
connection in the conduct of trade or Enforcement, may deny the export A. Applying for, obtaining, or using
business may also be made subject to privileges of any person who has been any license, license exception, or export
the provisions of this Order in order to convicted of a violation of . . . section control document;
prevent evasion of this Order. 38 of the Arms Export Control Act (22 B. Carrying on negotiations
Fourth, in accordance with Part 756 of U.S.C. 2778).’’ 15 CFR 766.25(a). The concerning, or ordering, buying,
the Regulations, Martinez may file an denial of export privileges under this receiving, using, selling, delivering,
appeal of this Order with the Under provision may be for a period of up to storing, disposing of, forwarding,
Secretary of Commerce for Industry and 10 years from the date of the conviction. transporting, financing, or otherwise
Security. The appeal must be filed 15 CFR 766.25(d). In addition, Section servicing in any way, any transaction
within 45 days from the date of this 750.8 of the Regulations states that the involving any item exported or to be
Order and must comply with the Bureau of Industry and Security’s Office exported from the United States that is
provisions of Part 756 of the of Exporter Services may revoke any subject to the Regulations, or engaging
Regulations. Bureau of Industry and Security (‘‘BIS’’) in any other activity subject to the
Fifth, a copy of this Order shall be licenses previously issued pursuant to Regulations; or
delivered to Martinez and shall be the Act or the Regulations in which the C. Benefitting in any way from any
published in the Federal Register. person had an interest at the time of his/ transaction involving any item exported
Sixth, this Order is effective her conviction. or to be exported from the United States
immediately and shall remain in effect BIS has received notice of Villasana’s that is subject to the Regulations, or
until November 16, 2024. conviction for violating Section 38 of from any other activity subject to the
the AECA, and has provided notice and Regulations.
Issued this September 27, 2018.
an opportunity for Villasana to make a Second, no person may, directly or
Karen H. Nies-Vogel, written submission to BIS, as provided indirectly, do any of the following:
Director, Office of Exporter Services. in Section 766.25 of the Regulations. A. Export or reexport to or on behalf
[FR Doc. 2018–21651 Filed 10–3–18; 8:45 am] BIS has not received a submission from of the Denied Person any item subject to
BILLING CODE P Villasana. the Regulations;
Based upon my review and B. Take any action that facilitates the
consultations with BIS’s Office of acquisition or attempted acquisition by
DEPARTMENT OF COMMERCE Export Enforcement, including its the Denied Person of the ownership,
Director, and the facts available to BIS, possession, or control of any item
Bureau of Industry and Security I have decided to deny Villasana’s subject to the Regulations that has been
export privileges under the Regulations or will be exported from the United
In the Matter of Erik Villasana, Inmate States, including financing or other
for a period of 10 years from the date of
Number: 22762–479, FCI Bastrop, P.O. support activities related to a
Villasana’s conviction. I have also
Box 1010, Bastrop, TX 78602; Order transaction whereby the Denied Person
decided to revoke all licenses issued
Denying Export Privileges acquires or attempts to acquire such
pursuant to the Act or Regulations in
On November 16, 2017, in the U.S. which Villasana had an interest at the ownership, possession or control;
District Court for the Southern District time of his conviction. C. Take any action to acquire from or
of Texas, Erik Villasana (‘‘Villasana’’) Accordingly, it is hereby ordered: to facilitate the acquisition or attempted
was convicted of violating Section 38 of First, from the date of this Order until acquisition from the Denied Person of
the Arms Export Control Act (22 U.S.C. November 16, 2027, Erik Villasana, with any item subject to the Regulations that
2778 (2012)) (‘‘AECA’’). Specifically, a last known address of Inmate Number: has been exported from the United
Villasana was convicted of knowingly 22762–479, FCI Bastrop, P.O. Box 1010, States;
exporting and attempting to export from Bastrop, TX 78602, and when acting for D. Obtain from the Denied Person in
the United States to Mexico firearms or on his behalf, his successors, assigns, the United States any item subject to the
designated as defense articles on the employees, agents or representatives Regulations with knowledge or reason
United States Munitions List, without (‘‘the Denied Person’’), may not, directly to know that the item will be, or is
the required U.S. Department of State or indirectly, participate in any way in intended to be, exported from the
licenses. Villasana was sentenced to 63 any transaction involving any United States; or
months in prison, three years of commodity, software or technology E. Engage in any transaction to service
supervised release, and an assessment of (hereinafter collectively referred to as any item subject to the Regulations that
$100. ‘‘item’’) exported or to be exported from has been or will be exported from the
Section 766.25 of the Export United States and which is owned,
Administration Regulations (‘‘EAR’’ or et seq. (2012) (‘‘IEEPA’’). On August 13, 2018, the possessed or controlled by the Denied
‘‘Regulations’’) 1 provides, in pertinent
President signed into law the John S. McCain Person, or service any item, of whatever
National Defense Authorization Act for Fiscal Year origin, that is owned, possessed or
2019, which includes the Export Control Reform
1 The Regulations are currently codified in the Act of 2018, Title XVII, Subtitle B of Public Law controlled by the Denied Person if such
Code of Federal Regulations at 15 CFR Parts 730– 115–232 (‘‘ECRA’’). While Section 1766 of ECRA service involves the use of any item
774 (2018). The Regulations originally issued under repeals the provisions of the EAA (except for three subject to the Regulations that has been
the Export Administration Act of 1979, as amended, sections which are inapplicable here), Section 1768 or will be exported from the United
daltland on DSKBBV9HB2PROD with NOTICES

50 U.S.C. 4601–4623 (Supp. III 2015) (‘‘the EAA’’), of ECRA provides, in pertinent part, that all rules
which lapsed on August 21, 2001. The President, and regulations that were made or issued under the States. For purposes of this paragraph,
through Executive Order 13,222 of August 17, 2001 EAA, including as continued in effect pursuant to servicing means installation,
(3 CFR, 2001 Comp. 783 (2002)), which has been IEEPA, and were in effect as of ECRA’s date of maintenance, repair, modification or
extended by successive Presidential Notices, the enactment (August 13, 2018), shall continue in testing.
most recent being that of August 8, 2018 (83 FR effect according to their terms until modified,
39,871 (Aug. 13, 2018)), continued the Regulations superseded, set aside, or revoked through action
Third, after notice and opportunity for
in full force and effect under the International undertaken pursuant to the authority provided comment as provided in Section 766.23
Emergency Economic Powers Act, 50 U.S.C. 1701, under ECRA. of the Regulations, any other person,

VerDate Sep<11>2014 17:43 Oct 03, 2018 Jkt 247001 PO 00000 Frm 00009 Fmt 4703 Sfmt 4703 E:\FR\FM\04OCN1.SGM 04OCN1

Document Created: 2018-10-04 02:03:11
Document Modified: 2018-10-04 02:03:11

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 50070

83 FR 50070 - In the Matter of: Francisco Xavier Martinez, Inmate Number: 21369-470, FCI Bastrop, P.O. Box 1010, Bastrop, TX 78602; Order Denying Export Privileges

DEPARTMENT OF COMMERCEBureau of Industry and Security

Federal Register Volume 83, Issue 193 (October 4, 2018)

DEPARTMENT OF COMMERCE
Bureau of Industry and Security