83 FR 60395 - Order Denying Export Privileges
DEPARTMENT OF COMMERCE
Bureau of Industry and Security Federal Register Volume 83, Issue 227 (November 26, 2018)
Bureau of Industry and Security
Federal Register Volume 83, Issue 227 (November 26, 2018)
| Page Range | 60395-60396 | |
| FR Document | 2018-25619 |
[Federal Register Volume 83, Number 227 (Monday, November 26, 2018)] [Notices] [Pages 60395-60396] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-25619] ----------------------------------------------------------------------- DEPARTMENT OF COMMERCE Bureau of Industry and Security Order Denying Export Privileges In the Matter of: Gregory Allen Justice, Inmate Number: 73792- 112, FCI Safford, P.O. Box 9000, Safford, AZ 85548. On September 19, 2017, in the U.S. District Court for the Central District of California, Gregory Allen Justice (``Justice'') was convicted of violating Section 38 of the Arms Export Control Act (22 U.S.C. 2778 (2012)) (``AECA''), among other crimes. Justice was convicted of violating Section 38 of the AECA by knowingly and willfully attempting to export, cause others to export, and aid and abet the export to Russia, for the intended benefit of the Russian Government, of defense articles designated on the United States Munitions List (``USML''), without the required U.S. Department of State licenses. Justice, an engineer who worked for a defense contractor, knowingly and willfully sold and provided USML-controlled technical data relating to U.S. military satellite programs to a person he believed to be an agent of a Russian intelligence service, but who was in fact an undercover Federal Bureau of Investigation employee. Justice was sentenced to 60 months in prison, three years of supervised release, and a $200 special assessment. The Export Administration Regulations (``EAR'' or ``Regulations'') are administered and enforced by the U.S. Department of Commerce's Bureau of Industry and Security (``BIS'').\1\ Section 766.25 of the Regulations provides, in pertinent part, that the ``Director of [BIS's] Office of Exporter Services, in consultation with the Director of [BIS's] 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).\1\ In addition, pursuant to Section 750.8 of the Regulations, BIS's Office of Exporter Services may revoke any BIS-issued licenses in which the person had an interest at the time of his/her conviction.\2\ --------------------------------------------------------------------------- \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) (``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 Pub. L. No. 115-232, 132 Stat. 2208 (``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 until modified, superseded, set aside, or revoked through action undertaken pursuant to the authority provided under ECRA. \1\ See also Section 11(h) of the EAA, 50 U.S.C. 4610(h) (Supp. III 2015); Sections 1760(e) and 1768 of ECRA, Title XVII, Subtitle B of Pub. L. No. 115-232, 132 Stat. 2208, 2225 and 2233 (Aug. 13, 2018); and note 1, supra. \2\ See note 2, supra. --------------------------------------------------------------------------- BIS has received notice of Justice's conviction for violating Section 38 of the AECA, and has provided notice and an opportunity for Justice to make a written submission to BIS, as provided in Section 766.25 of the Regulations. BIS has not received a submission from Justice. 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 Justice's export privileges under the Regulations for a period of 10 years from the date of Justice's conviction. I have also decided to revoke all BIS-issued licenses in which Justice had an interest at the time of his conviction. Accordingly, it is hereby ORDERED: First, from the date of this Order until September 19, 2027, Gregory Allen Justice, with a last known address of Inmate Number: 73792-112, FCI Safford, P.O. Box 9000, Safford, AZ 85548, 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 [[Page 60396]] 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 Justice 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, Justice 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 Justice and shall be published in the Federal Register. Sixth, this Order is effective immediately and shall remain in effect until September 19, 2027. Issued this 15th day of November, 2018. Karen H. Nies-Vogel, Director, Office of Exporter Services. [FR Doc. 2018-25619 Filed 11-23-18; 8:45 am] BILLING CODE P
![Federal Register / Vol. 83, No. 227 / Monday, November 26, 2018 / Notices 60395
all selected participants on the first day of Industry and Security (‘‘BIS’’).1 Accordingly, it is hereby ORDERED:
of the testing will be required to Section 766.25 of the Regulations First, from the date of this Order until
acknowledge that their suggestions and provides, in pertinent part, that the September 19, 2027, Gregory Allen
comments may not be incorporated into ‘‘Director of [BIS’s] Office of Exporter Justice, with a last known address of
the final version for technical or other Services, in consultation with the Inmate Number: 73792–112, FCI
reasons. Director of [BIS’s] Office of Export Safford, P.O. Box 9000, Safford, AZ
Enforcement, may deny the export 85548, and when acting for or on his
Special Accommodations privileges of any person who has been behalf, his successors, assigns,
This public testing is physically convicted of a violation of . . . section employees, agents or representatives
accessible to people with disabilities. 38 of the Arms Export Control Act (22 (‘‘the Denied Person’’), may not, directly
Requests for sign language U.S.C. 2778).’’ 15 CFR 766.25(a). The or indirectly, participate in any way in
interpretation or other auxiliary aids denial of export privileges under this any transaction involving any
should be received by the Department of provision may be for a period of up to commodity, software or technology
Commerce no later than November 29, 10 years from the date of the conviction. (hereinafter collectively referred to as
2018 and should be included in the 15 CFR 766.25(d).1 In addition, ‘‘item’’) exported or to be exported from
email requesting participation in the pursuant to Section 750.8 of the the United States that is subject to the
public testing referenced above. Regulations, BIS’s Office of Exporter Regulations, including, but not limited
Services may revoke any BIS-issued to:
Dated: November 20, 2018. licenses in which the person had an A. Applying for, obtaining, or using
Matthew S. Borman, interest at the time of his/her any license, license exception, or export
Deputy Assistant Secretary for Export conviction.2 control document;
Administration. BIS has received notice of Justice’s B. Carrying on negotiations
[FR Doc. 2018–25680 Filed 11–23–18; 8:45 am] conviction for violating Section 38 of concerning, or ordering, buying,
BILLING CODE 3510–33–P the AECA, and has provided notice and receiving, using, selling, delivering,
an opportunity for Justice to make a storing, disposing of, forwarding,
written submission to BIS, as provided transporting, financing, or otherwise
DEPARTMENT OF COMMERCE in Section 766.25 of the Regulations. servicing in any way, any transaction
BIS has not received a submission from involving any item exported or to be
Bureau of Industry and Security Justice. exported from the United States that is
Based upon my review and subject to the Regulations, or engaging
Order Denying Export Privileges consultations with BIS’s Office of in any other activity subject to the
Export Enforcement, including its Regulations; or
In the Matter of: Gregory Allen Justice,
Director, and the facts available to BIS, C. Benefitting in any way from any
Inmate Number: 73792–112, FCI Safford, P.O.
Box 9000, Safford, AZ 85548.
I have decided to deny Justice’s export transaction involving any item exported
privileges under the Regulations for a or to be exported from the United States
On September 19, 2017, in the U.S. period of 10 years from the date of that is subject to the Regulations, or
District Court for the Central District of Justice’s conviction. I have also decided from any other activity subject to the
California, Gregory Allen Justice to revoke all BIS-issued licenses in Regulations.
(‘‘Justice’’) was convicted of violating which Justice had an interest at the time Second, no person may, directly or
Section 38 of the Arms Export Control of his conviction. indirectly, do any of the following:
Act (22 U.S.C. 2778 (2012)) (‘‘AECA’’), A. Export or reexport to or on behalf
among other crimes. Justice was
1 The Regulations are currently codified in the
of the Denied Person any item subject to
Code of Federal Regulations at 15 CFR parts 730– the Regulations;
convicted of violating Section 38 of the 774 (2018). The Regulations originally issued under
AECA by knowingly and willfully the Export Administration Act of 1979, as amended, B. Take any action that facilitates the
attempting to export, cause others to 50 U.S.C. 4601–4623 (Supp. III 2015) (‘‘EAA’’), acquisition or attempted acquisition by
export, and aid and abet the export to which lapsed on August 21, 2001. The President, the Denied Person of the ownership,
through Executive Order 13,222 of August 17, 2001 possession, or control of any item
Russia, for the intended benefit of the (3 CFR, 2001 Comp. 783 (2002)), which has been
Russian Government, of defense articles extended by successive Presidential Notices, the subject to the Regulations that has been
designated on the United States most recent being that of August 8, 2018 (83 FR or will be exported from the United
39,871 (Aug. 13, 2018)), continued the Regulations States, including financing or other
Munitions List (‘‘USML’’), without the in full force and effect under the International
required U.S. Department of State Emergency Economic Powers Act, 50 U.S.C. 1701, support activities related to a
licenses. Justice, an engineer who et seq. (2012) (‘‘IEEPA’’). On August 13, 2018, the transaction whereby the Denied Person
worked for a defense contractor, President signed into law the John S. McCain acquires or attempts to acquire such
National Defense Authorization Act for Fiscal Year ownership, possession or control;
knowingly and willfully sold and 2019, which includes the Export Control Reform
provided USML-controlled technical Act of 2018, Title XVII, Subtitle B of Pub. L. No. C. Take any action to acquire from or
data relating to U.S. military satellite 115–232, 132 Stat. 2208 (‘‘ECRA’’). While Section to facilitate the acquisition or attempted
programs to a person he believed to be
1766 of ECRA repeals the provisions of the EAA acquisition from the Denied Person of
(except for three sections which are inapplicable any item subject to the Regulations that
an agent of a Russian intelligence here), Section 1768 of ECRA provides, in pertinent
service, but who was in fact an part, that all rules and regulations that were made has been exported from the United
undercover Federal Bureau of or issued under the EAA, including as continued States;
Investigation employee. Justice was
in effect pursuant to IEEPA, and were in effect as D. Obtain from the Denied Person in
of ECRA’s date of enactment (August 13, 2018),
sentenced to 60 months in prison, three shall continue in effect until modified, superseded,
the United States any item subject to the
years of supervised release, and a $200 set aside, or revoked through action undertaken Regulations with knowledge or reason
special assessment. pursuant to the authority provided under ECRA. to know that the item will be, or is
1 See also Section 11(h) of the EAA, 50 U.S.C.
intended to be, exported from the
The Export Administration 4610(h) (Supp. III 2015); Sections 1760(e) and 1768 United States; or
Regulations (‘‘EAR’’ or ‘‘Regulations’’) of ECRA, Title XVII, Subtitle B of Pub. L. No. 115–
232, 132 Stat. 2208, 2225 and 2233 (Aug. 13, 2018); E. Engage in any transaction to service
are administered and enforced by the and note 1, supra. any item subject to the Regulations that
U.S. Department of Commerce’s Bureau 2 See note 2, supra. has been or will be exported from the
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![60396 Federal Register / Vol. 83, No. 227 / Monday, November 26, 2018 / Notices
United States and which is owned, and Compliance, International Trade the Federal Register,5 and before July
possessed or controlled by the Denied Administration, U.S. Department of 11, 2018, the effective date on which
Person, or service any item, of whatever Commerce, 1401 Constitution Avenue Commerce instructed CBP to
origin, that is owned, possessed or NW, Washington, DC 20230; telephone discontinue the suspension of
controlled by the Denied Person if such (202) 482–1766 or (202) 482–0238, liquidation in accordance with section
service involves the use of any item respectively. 703(d) of the Act. Section 703(d) of the
subject to the Regulations that has been Act states that the suspension of
SUPPLEMENTARY INFORMATION:
or will be exported from the United liquidation pursuant to a preliminary
States. For purposes of this paragraph, Background determination may not remain in effect
servicing means installation, for more than four months. Therefore,
maintenance, repair, modification or On October 5, 2018, Commerce entries of subject merchandise from
testing. published its final determination in the China made on or after July 11, 2018,
Third, after notice and opportunity for countervailing duty investigation of and prior to the date of publication of
comment as provided in Section 766.23 forged steel fittings from China.1 On the ITC’s final determination in the
of the Regulations, any other person, November 19, 2018, the ITC notified Federal Register are not liable for the
firm, corporation, or business Commerce of its final determination, assessment of countervailing duties due
organization related to Justice by pursuant to section 705(d) of the Act, to Commerce’s discontinuation of the
ownership, control, position of that an industry in the United States is suspension of liquidation.
responsibility, affiliation, or other materially injured within the meaning
of section 705(b)(1)(A)(i) of the Act, by Suspension of Liquidation
connection in the conduct of trade or
business may also be made subject to reason of subsidized imports of forged
steel fittings from China.2 In accordance with section 706 of the
the provisions of this Order in order to Act, Commerce will direct CBP to
prevent evasion of this Order. Scope of the Order 3 reinstitute the suspension of liquidation
Fourth, in accordance with Part 756 of of subject merchandise from China,
the Regulations, Justice may file an The products covered by this order
effective the date of publication of the
appeal of this Order with the Under are forged steel fittings from China. For
ITC’s notice of final determination in
Secretary of Commerce for Industry and a complete description of the scope of
the Federal Register, and to assess,
Security. The appeal must be filed this order, see the Appendix to this
upon further instruction by Commerce
within 45 days from the date of this notice.
pursuant to section 706(a)(1) of the Act,
Order and must comply with the Countervailing Duty Order countervailing duties for each entry of
provisions of Part 756 of the the subject merchandise in an amount
Regulations. On November 19, 2018, in accordance
based on the net countervailable
Fifth, a copy of this Order shall be with section 705(d) of the Act, the ITC
subsidy rates for the subject
delivered to Justice and shall be notified Commerce of its final
merchandise. On or after the date of
published in the Federal Register. determination in this investigation, in
publication of the ITC’s final injury
Sixth, this Order is effective which it found that imports of forged
determination in the Federal Register,
immediately and shall remain in effect steel fittings are materially injuring a
we will instruct CBP to require, at the
until September 19, 2027. U.S. industry.4 Therefore, in accordance
same time as importers would normally
with section 705(c)(2) of the Act, we are
Issued this 15th day of November, 2018. deposit estimated duties on this
publishing this countervailing duty
Karen H. Nies-Vogel, merchandise, cash deposits for each
order.
Director, Office of Exporter Services. entry of subject merchandise equal to
As a result of the ITC’s final the rates noted below. These
[FR Doc. 2018–25619 Filed 11–23–18; 8:45 am]
determination, in accordance with instructions suspending liquidation will
BILLING CODE P section 706(a) of the Act, Commerce remain in effect until further notice. The
will direct U.S. Customs and Border all others rate applies to all producers
Protection (CBP) to assess, upon further or exporters not specifically listed, as
DEPARTMENT OF COMMERCE
instruction by Commerce, appropriate.
International Trade Administration countervailing duties on unliquidated
entries of subject merchandise from Subsidy
[C–570–068] China entered, or withdrawn from Company rate
warehouse, for consumption on or after (percent)
Forged Steel Fittings From the March 14, 2018, the date on which
People’s Republic of China: Commerce published its preliminary Both-Well (Taizhou) Steel Fit-
Countervailing Duty Order tings, Co., Ltd .......................... 13.41
countervailing duty determination in All-Others .................................... 13.41
AGENCY: Enforcement and Compliance,
International Trade Administration, 1 See Forged Steel Fittings from the People’s
Notifications to Interested Parties
Department of Commerce. Republic of China: Final Affirmative Countervailing
Duty Determination, 83 FR 50342 (October 5, 2018)
SUMMARY: Based on affirmative final
(Final Determination).
This notice constitutes the
determinations by the Department of 2 See ITC Notification Letter to the Deputy countervailing duty order with respect
Commerce (Commerce) and the Assistant Secretary for Enforcement and to forged steel fittings from China
International Trade Commission (ITC), Compliance, referencing ITC Investigation Nos. pursuant to section 706(a) of the Act.
Commerce is issuing a countervailing 701–TA–589 and 731–TA–1394–95, dated Interested parties can find a list of
November 19, 2018 (ITC Notification).
duty order on forged steel fittings from 3 See Memorandum to the File, ‘‘Placing Carbon
countervailing duty orders currently in
the People’s Republic of China (China). Steel Butt Weld Pipe Fitting Scope Ruling on the
DATES: Applicable November 26, 2018. Record, dated September 19, 2018. 5 See Forged Steel Fittings from the People’s
4 See ITC Notification; see also Forged Steel Republic of China: Preliminary Affirmative
FOR FURTHER INFORMATION CONTACT:
Fittings from China and Italy (Inv. Nos. 701–TA– Countervailing Duty Determination and Alignment
Brian Smith or Janae Martin, AD/CVD 589 and 731–TA–1394–1395 (Final), USITC of Final Determination with Final Antidumping
Operations, Office VIII, Enforcement Publication 4850, November 2018). Duty Determination, 83 FR 11170 (March 14, 2018).
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Document Created: 2018-11-24 00:51:13
Document Modified: 2018-11-24 00:51:13
| 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 60395 |
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