83 FR 50075 - In the Matter of: Edgar Garza-Sanchez, Inmate Number: 12512-479, Mid-Valley House, 2520 South Expressway 281, Edinburg, TX 78542; Order Denying Export Privileges

DEPARTMENT OF COMMERCE
Bureau of Industry and Security

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

Page Range		50075-50076
FR Document		2018-21654

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

[Federal Register Volume 83, Number 193 (Thursday, October 4, 2018)]
[Notices]
[Pages 50075-50076]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-21654]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security


In the Matter of: Edgar Garza-Sanchez, Inmate Number: 12512-479, 
Mid-Valley House, 2520 South Expressway 281, Edinburg, TX 78542; Order 
Denying Export Privileges

    On March 28, 2017, in the U.S. District Court for the Southern 
District of Texas, Edgar Garza-Sanchez (``Garza-Sanchez'') was 
convicted of violating Section 38 of the Arms Export Control Act (22 
U.S.C. 2778 (2012)) (``AECA''). Specifically, Garza-Sanchez was 
convicted of intentionally and knowingly conspiring to knowingly and 
willfully export and cause to be exported from the United States to 
Mexico approximately 13,600 rounds of 7.62 x 39 mm caliber ammunition 
and approximately 200 7.62 x 39 mm caliber magazines, items designated 
as defense articles on the United States Munitions List, without the 
required U.S. Department of State licenses. Garza-Sanchez was sentenced 
to 21 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 
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 8, 2018 (83 FR 39871 (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 Garza-Sanchez's conviction for violating 
Section 38 of the AECA, and has provided notice and an opportunity for 
Garza-Sanchez to make a written submission to BIS, as provided in 
Section 766.25 of the Regulations. BIS has not received a submission 
from Garza-Sanchez.
    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 Garza-Sanchez's export privileges under the 
Regulations for a period of five years from the date of Garza-Sanchez's 
conviction. I have also decided to revoke all licenses issued pursuant 
to the Act or Regulations in which Garza-Sanchez had an interest at the 
time of his conviction.
    Accordingly, it is hereby ordered:
    First, from the date of this Order until March 28, 2022, Edgar 
Garza-Sanchez, with a last known address of Inmate Number: 12512-479, 
Mid-Valley House, 2520 South Expressway 281, Edinburg, TX 78542, 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

[[Page 50076]]

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 Garza-Sanchez 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, Garza-
Sanchez 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 Garza-Sanchez and 
shall be published in the Federal Register.
    Sixth, this Order is effective immediately and shall remain in 
effect until March 28, 2022.

    Issued: September 27, 2018.
Karen H. Nies-Vogel,
Director, Office of Exporter Services.
[FR Doc. 2018-21654 Filed 10-3-18; 8:45 am]
 BILLING CODE P

Federal Register / Vol. 83, No. 193 / Thursday, October 4, 2018 / Notices 50075

origin, that is owned, possessed or Department of State licenses. Garza- also decided to revoke all licenses
controlled by the Denied Person if such Sanchez was sentenced to 21 months in issued pursuant to the Act or
service involves the use of any item prison, three years of supervised release, Regulations in which Garza-Sanchez
subject to the Regulations that has been and an assessment of $100. had an interest at the time of his
or will be exported from the United Section 766.25 of the Export conviction.
States. For purposes of this paragraph, Administration Regulations (‘‘EAR’’ or Accordingly, it is hereby ordered:
servicing means installation, ‘‘Regulations’’)1 provides, in pertinent First, from the date of this Order until
maintenance, repair, modification or part, that ‘‘[t]he Director of the Office of March 28, 2022, Edgar Garza-Sanchez,
testing. Exporter Services, in consultation with with a last known address of Inmate
Third, after notice and opportunity for the Director of the Office of Export Number: 12512–479, Mid-Valley House,
comment as provided in Section 766.23 Enforcement, may deny the export 2520 South Expressway 281, Edinburg,
of the Regulations, any other person, privileges of any person who has been TX 78542, and when acting for or on his
firm, corporation, or business convicted of a violation of . . . section behalf, his successors, assigns,
organization related to Madrid by 38 of the Arms Export Control Act (22 employees, agents or representatives
ownership, control, position of U.S.C. 2778).’’ 15 CFR 766.25(a). The (‘‘the Denied Person’’), may not, directly
responsibility, affiliation, or other denial of export privileges under this or indirectly, participate in any way in
connection in the conduct of trade or provision may be for a period of up to any transaction involving any
business may also be made subject to 10 years from the date of the conviction. commodity, software or technology
the provisions of this Order in order to 15 CFR 766.25(d). In addition, Section (hereinafter collectively referred to as
prevent evasion of this Order. 750.8 of the Regulations states that the ‘‘item’’) exported or to be exported from
Fourth, in accordance with Part 756 of Bureau of Industry and Security’s Office the United States that is subject to the
the Regulations, Madrid may file an of Exporter Services may revoke any Regulations, including, but not limited
appeal of this Order with the Under Bureau of Industry and Security (‘‘BIS’’) to:
Secretary of Commerce for Industry and licenses previously issued pursuant to A. Applying for, obtaining, or using
Security. The appeal must be filed the Act or the Regulations in which the any license, license exception, or export
within 45 days from the date of this person had an interest at the time of his/ control document;
Order and must comply with the her conviction. B. Carrying on negotiations
provisions of Part 756 of the BIS has received notice of Garza- concerning, or ordering, buying,
Regulations. Sanchez’s conviction for violating receiving, using, selling, delivering,
Fifth, a copy of this Order shall be Section 38 of the AECA, and has storing, disposing of, forwarding,
delivered to Madrid and shall be provided notice and an opportunity for transporting, financing, or otherwise
published in the Federal Register. Garza-Sanchez to make a written servicing in any way, any transaction
Sixth, this Order is effective submission to BIS, as provided in involving any item exported or to be
immediately and shall remain in effect Section 766.25 of the Regulations. BIS exported from the United States that is
until November 16, 2027. has not received a submission from subject to the Regulations, or engaging
Garza-Sanchez. in any other activity subject to the
Issued: September 27, 2018.
Based upon my review and Regulations; or
Karen H. Nies-Vogel, consultations with BIS’s Office of C. Benefitting in any way from any
Director, Office of Exporter Services. Export Enforcement, including its transaction involving any item exported
[FR Doc. 2018–21640 Filed 10–3–18; 8:45 am] Director, and the facts available to BIS, or to be exported from the United States
BILLING CODE P I have decided to deny Garza-Sanchez’s that is subject to the Regulations, or
export privileges under the Regulations from any other activity subject to the
for a period of five years from the date Regulations.
DEPARTMENT OF COMMERCE of Garza-Sanchez’s conviction. I have Second, no person may, directly or
Bureau of Industry and Security indirectly, do any of the following:
1 The Regulations are currently codified in the
A. Export or reexport to or on behalf
Code of Federal Regulations at 15 CFR Parts 730–
In the Matter of: Edgar Garza-Sanchez, 774 (2018). The Regulations originally issued under
of the Denied Person any item subject to
Inmate Number: 12512–479, Mid-Valley the Export Administration Act of 1979, as amended, the Regulations;
House, 2520 South Expressway 281, 50 U.S.C. 4601–4623 (Supp. III 2015) (‘‘the EAA’’), B. Take any action that facilitates the
Edinburg, TX 78542; Order Denying which lapsed on August 21, 2001. The President, acquisition or attempted acquisition by
through Executive Order 13222 of August 17, 2001 the Denied Person of the ownership,
Export Privileges (3 CFR, 2001 Comp. 783 (2002)), which has been
extended by successive Presidential Notices, the possession, or control of any item
On March 28, 2017, in the U.S. most recent being that of August 8, 2018 (83 FR subject to the Regulations that has been
District Court for the Southern District 39871 (Aug. 13, 2018)), continued the Regulations or will be exported from the United
of Texas, Edgar Garza-Sanchez (‘‘Garza- in full force and effect under the International
Emergency Economic Powers Act, 50 U.S.C. 1701,
States, including financing or other
Sanchez’’) was convicted of violating et seq. (2012) (‘‘IEEPA’’). On August 13, 2018, the support activities related to a
Section 38 of the Arms Export Control President signed into law the John S. McCain transaction whereby the Denied Person
Act (22 U.S.C. 2778 (2012)) (‘‘AECA’’). National Defense Authorization Act for Fiscal Year acquires or attempts to acquire such
Specifically, Garza-Sanchez was 2019, which includes the Export Control Reform
Act of 2018, Title XVII, Subtitle B of Public Law
ownership, possession or control;
convicted of intentionally and 115–232 (‘‘ECRA’’). While Section 1766 of ECRA C. Take any action to acquire from or
knowingly conspiring to knowingly and repeals the provisions of the EAA (except for three to facilitate the acquisition or attempted
willfully export and cause to be sections which are inapplicable here), Section 1768 acquisition from the Denied Person of
daltland on DSKBBV9HB2PROD with NOTICES

exported from the United States to of ECRA provides, in pertinent part, that all rules
and regulations that were made or issued under the
any item subject to the Regulations that
Mexico approximately 13,600 rounds of EAA, including as continued in effect pursuant to has been exported from the United
7.62 × 39 mm caliber ammunition and IEEPA, and were in effect as of ECRA’s date of States;
approximately 200 7.62 × 39 mm caliber enactment (August 13, 2018), shall continue in D. Obtain from the Denied Person in
effect according to their terms until modified,
magazines, items designated as defense superseded, set aside, or revoked through action
the United States any item subject to the
articles on the United States Munitions undertaken pursuant to the authority provided Regulations with knowledge or reason
List, without the required U.S. under ECRA. to know that the item will be, or is

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50076 Federal Register / Vol. 83, No. 193 / Thursday, October 4, 2018 / Notices

intended to be, exported from the firearms designated as defense articles period of 10 years from the date of
United States; or on the United States Munitions List, Madrid’s conviction. I have also decided
E. Engage in any transaction to service without the required U.S. Department of to revoke all licenses issued pursuant to
any item subject to the Regulations that State licenses. Madrid was sentenced to the Act or Regulations in which Madrid
has been or will be exported from the 51 months in prison, three years of had an interest at the time of his
United States and which is owned, supervised release, and an assessment of conviction.
possessed or controlled by the Denied $100. Accordingly, it is hereby ordered:
Person, or service any item, of whatever Section 766.25 of the Export First, from the date of this Order until
origin, that is owned, possessed or Administration Regulations (‘‘EAR’’ or November 16, 2027, Rolando Armando
controlled by the Denied Person if such ‘‘Regulations’’) 1 provides, in pertinent Madrid, with a last known address of
service involves the use of any item part, that ‘‘[t]he Director of the Office of Inmate Number: 20726–479, FCI
subject to the Regulations that has been Exporter Services, in consultation with Bastrop, P.O. Box 1010, Bastrop, TX
or will be exported from the United the Director of the Office of Export 78602, and when acting for or on his
States. For purposes of this paragraph, Enforcement, may deny the export behalf, his successors, assigns,
servicing means installation, privileges of any person who has been employees, agents or representatives
maintenance, repair, modification or convicted of a violation of . . . section (‘‘the Denied Person’’), may not, directly
testing. 38 of the Arms Export Control Act (22 or indirectly, participate in any way in
Third, after notice and opportunity for U.S.C. 2778).’’ 15 CFR 766.25(a). The any transaction involving any
comment as provided in Section 766.23 denial of export privileges under this commodity, software or technology
of the Regulations, any other person, provision may be for a period of up to (hereinafter collectively referred to as
firm, corporation, or business 10 years from the date of the conviction. ‘‘item’’) exported or to be exported from
organization related to Garza-Sanchez 15 CFR 766.25(d). In addition, Section the United States that is subject to the
by ownership, control, position of 750.8 of the Regulations states that the Regulations, including, but not limited
responsibility, affiliation, or other Bureau of Industry and Security’s Office to:
connection in the conduct of trade or of Exporter Services may revoke any A. Applying for, obtaining, or using
business may also be made subject to Bureau of Industry and Security (‘‘BIS’’) any license, license exception, or export
the provisions of this Order in order to licenses previously issued pursuant to control document;
prevent evasion of this Order. the Act or the Regulations in which the B. Carrying on negotiations
Fourth, in accordance with Part 756 of person had an interest at the time of his/ concerning, or ordering, buying,
the Regulations, Garza-Sanchez may file her conviction. receiving, using, selling, delivering,
an appeal of this Order with the Under BIS has received notice of Madrid’s storing, disposing of, forwarding,
Secretary of Commerce for Industry and conviction for violating Section 38 of transporting, financing, or otherwise
Security. The appeal must be filed the AECA, and has provided notice and servicing in any way, any transaction
within 45 days from the date of this an opportunity for Madrid to make a involving any item exported or to be
Order and must comply with the written submission to BIS, as provided exported from the United States that is
provisions of Part 756 of the in Section 766.25 of the Regulations. subject to the Regulations, or engaging
Regulations. BIS has not received a submission from in any other activity subject to the
Fifth, a copy of this Order shall be Madrid. Regulations; or
delivered to Garza-Sanchez and shall be Based upon my review and C. Benefitting in any way from any
published in the Federal Register. consultations with BIS’s Office of transaction involving any item exported
Sixth, this Order is effective Export Enforcement, including its or to be exported from the United States
immediately and shall remain in effect Director, and the facts available to BIS, that is subject to the Regulations, or
until March 28, 2022. I have decided to deny Madrid’s export from any other activity subject to the
privileges under the Regulations for a Regulations.
Issued: September 27, 2018.
Second, no person may, directly or
Karen H. Nies-Vogel, 1 The Regulations are currently codified in the
indirectly, do any of the following:
Director, Office of Exporter Services. Code of Federal Regulations at 15 CFR Parts 730–
A. Export or reexport to or on behalf
[FR Doc. 2018–21654 Filed 10–3–18; 8:45 am] 774 (2018). The Regulations originally issued under
the Export Administration Act of 1979, as amended, of the Denied Person any item subject to
BILLING CODE P 50 U.S.C. 4601–4623 (Supp. III 2015) (‘‘the EAA’’), the Regulations;
which lapsed on August 21, 2001. The President, B. Take any action that facilitates the
through Executive Order 13,222 of August 17, 2001 acquisition or attempted acquisition by
DEPARTMENT OF COMMERCE (3 CFR 2001 Comp. 783 (2002)), which has been
extended by successive Presidential Notices, the the Denied Person of the ownership,
most recent being that of August 8, 2018 (83 FR possession, or control of any item
Bureau of Industry and Security 39,871 (Aug. 13, 2018)), continued the Regulations subject to the Regulations that has been
in full force and effect under the International
In the Matter of Rolando Armando Emergency Economic Powers Act, 50 U.S.C. 1701,
or will be exported from the United
Madrid, Inmate Number: 20726–479, et seq. (2012) (‘‘IEEPA’’). On August 13, 2018, the States, including financing or other
FCI Bastrop, P.O. Box 1010, Bastrop, President signed into law the John S. McCain support activities related to a
National Defense Authorization Act for Fiscal Year transaction whereby the Denied Person
TX 78602; Order Denying Export 2019, which includes the Export Control Reform
Privileges Act of 2018, Title XVII, Subtitle B of Public Law
acquires or attempts to acquire such
115–232 (‘‘ECRA’’). While Section 1766 of ECRA ownership, possession or control;
On November 16, 2017, in the U.S. repeals the provisions of the EAA (except for three C. Take any action to acquire from or
District Court for the Southern District sections which are inapplicable here), Section 1768 to facilitate the acquisition or attempted
daltland on DSKBBV9HB2PROD with NOTICES

of Texas, Rolando Armando Madrid of ECRA provides, in pertinent part, that all rules
and regulations that were made or issued under the
acquisition from the Denied Person of
(‘‘Madrid’’) was convicted of violating EAA, including as continued in effect pursuant to any item subject to the Regulations that
Section 38 of the Arms Export Control IEEPA, and were in effect as of ECRA’s date of has been exported from the United
Act (22 U.S.C. 2778 (2012)) (‘‘AECA’’). enactment (August 13, 2018), shall continue in States;
effect according to their terms until modified,
Specifically, Madrid was convicted of superseded, set aside, or revoked through action
D. Obtain from the Denied Person in
knowingly exporting and attempting to undertaken pursuant to the authority provided the United States any item subject to the
export from the United States to Mexico under ECRA. Regulations with knowledge or reason

VerDate Sep<11>2014 17:43 Oct 03, 2018 Jkt 247001 PO 00000 Frm 00014 Fmt 4703 Sfmt 4703 E:\FR\FM\04OCN1.SGM 04OCN1

Document Created: 2018-10-04 02:03:18
Document Modified: 2018-10-04 02:03:18

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 50075

83 FR 50075 - In the Matter of: Edgar Garza-Sanchez, Inmate Number: 12512-479, Mid-Valley House, 2520 South Expressway 281, Edinburg, TX 78542; 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