Notice2021-24910
Order Denying Export Privileges; In the Matter of: Manuel Valencia-Hermosillo, 303 E South Mountain Avenue, Phoenix, AZ 85042
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
November 16, 2021
Issuing agencies
Commerce DepartmentIndustry and Security Bureau
Full Text
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<title>Federal Register, Volume 86 Issue 218 (Tuesday, November 16, 2021)</title>
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[Federal Register Volume 86, Number 218 (Tuesday, November 16, 2021)]
[Notices]
[Pages 63333-63334]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-24910]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
Order Denying Export Privileges; In the Matter of: Manuel
Valencia-Hermosillo, 303 E South Mountain Avenue, Phoenix, AZ 85042
On October 13, 2017, in the U.S. District Court for the District of
Arizona, Manuel Valencia-Hermosillo (``Valencia-Hermosillo'') was
convicted of violating Section 38 of the Arms Export Control Act, 22
U.S.C. 2778 (2012) (``AECA''), by knowingly and willfully attempting to
export and cause to be exported from the United States to Mexico,
11,000 rounds of Wolf 7.62 x 39mm ammunition; 100 Palmetto State Armory
5.56 rifle magazines; and 100 Korean 7.62 x 39 rifle magazines, all of
which were designated as defense articles on the United States
Munitions List, without the required U.S. Department of State licenses.
Valencia-Hermosillo was sentenced to 15 months in prison with credit
for time served, three years of supervised release, and an assessment
of $100. Valencia-Hermosillo has been placed on the U.S. Department of
State debarred list.
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 Export Enforcement, in consultation with the Director of
[BIS's] Office of Exporter Services, may deny the export privileges of
any person who has been convicted of a violation of any of the statues
set forth at 50 U.S.C. 4819 (e)(1)(B),'' \2\ including Section 38 of
the AECA. 15 CFR 766.25(a).\3\ 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, pursuant to Section
750.8 of the Regulations, BIS's Office of Exporter Services may revoke
any BIS-issued licenses in which the person has an interest at the time
of his/her conviction.\4\
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\1\ The Regulations are currently codified in the Code of
Federal Regulations at 15 CFR parts 730-774 (2021). 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 was
extended by successive Presidential Notices, continued the
Regulations in full force and effect under 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, 50 U.S.C. 4801-4852 (``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.
\2\ The Director, Office of Export Enforcement, is now the
authorizing official for issuance of denial orders, pursuant to
recent amendments to the Regulations (85 FR 73411, November 18,
2020).
\3\ As codified at the time of the underlying conviction at
issue, Section 11(h)(1) of the EAA, as amended, provided that: ``No
person convicted of a violation of this chapter (or any regulation,
license, or order issued under this chapter), any regulation,
license, or order issed under the International Emergnecy Economic
Powers Act [50 U.S.C. 1701, et seq.], section 793, 794 or 798 of
title 18, section 783(b) of this title, or section 2778 of title 22
shall be eligible, at the discretion of the Secretary, to apply for
or use any export license under this chapter for a period of up to
10 years from the date of conviction. The Secretary may revoke any
export license under this chapter in which such person has an
interest at the time of conviction.'' 50 U.S.C. 4610(h)(1).
\4\ See notes 1 and 3, supra.
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BIS received notice of Valencia-Hermosillo's conviction for
violating Section 38 of the AECA, and pursuant to Section 766.25 of the
Regulations, has provided notice and an opportunity for Valencia-
Hermosillo to make a written submission to BIS. BIS has not received a
written submission from Valencia-Hermosillo.
Based upon my review of the record and consultations with BIS's
Office of Exporter Services, including its Director, and the facts
available to BIS, I have decided to deny Valencia-Hermosillo's export
privileges under the Regulations for a period of seven years from the
date of Valencia-Hermosillo's conviction. The Office of Exporter
Services has also decided to revoke any BIS-issued license in which
Valencia-Hermosillo had an interest at the time of his conviction.
Accordingly, it is hereby ordered:First, from the date of this
Order until October 13, 2024, Manuel Valencia-Hermosillo, with a last
known address of 303 E. South Mountain Avenue, Phoenix, AZ 85042, and
when acting for or on his behalf, his successors, assigns, employees,
agents or representatives (``the Denied
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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 766.23of the Regulations, any other person, firm, corporation,
or business organization relatedto Valencia-Hermosillo by ownership,
control, position of responsibility, affiliation, orother connection in
the conduct of trade or business may also be made subject to
theprovisions of this Order in order to prevent evasion of this Order.
Fourth, in accordance with Part 756 of the Regulations, Valencia-
Hermosillo 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 Valencia-
Hermosillo and shall be published in the Federal Register.
Sixth, this Order is effective immediately and shall remain in
effect until October 13, 2024.
John Sonderman,
Director, Office of Export Enforement.
[FR Doc. 2021-24910 Filed 11-15-21; 8:45 am]
BILLING CODE 3510-DT-P
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</html>Indexed from Federal Register on November 16, 2021.
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