[Federal Register Volume 82, Number 158 (Thursday, August 17, 2017)]
[Notices]
[Pages 39109-39110]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-17373]



[[Page 39109]]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security


In the Matter of: Ricardo Humberto Varela, Inmate Number: 85044-
379, Federal Correctional Institution Bastrop, P.O. Box 1010, Bastrop, 
TX 78602

Order Denying Export Privileges

    On February 8, 2016, in the U.S. District Court for the Southern 
District of Texas, Ricardo Humberto Varela (``Varela'') was convicted 
of violating Section 38 of the Arms Export Control Act (22 U.S.C. 2778 
(2012)) (``AECA''). Specifically, Varela was convicted of intentionally 
and knowingly conspiring and agreeing to knowingly and willfully export 
and cause to be exported from the United States to Mexico defense 
articles designated on the United States Munitions List, namely, 5.56 
caliber rifles, without the required U.S. Department of State licenses. 
Varela was sentenced to 46 months in prison, three years of supervised 
release, and a $200 assessment.
    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 
EAA, 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 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 Export Administration act (``EAA'' or ``the Act'') in which the 
person had an interest at the time of his conviction.
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    \1\ The Regulations are currently codified in the Code of 
Federal Regulations at 15 CFR parts 730-774 (2017). 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 4, 2016 (81 FR 52,587 (Aug. 8, 2016)), 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 Varela's conviction for violating the 
AECA, and has provided notice and an opportunity for Varela to make a 
written submission to BIS, as provided in Section 766.25 of the 
Regulations. BIS has not received a submission from Varela.
    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 Varela's export privileges under the Regulations 
for a period of five years from the date of Varela's conviction. I have 
also decided to revoke all licenses issued pursuant to the Act or 
Regulations in which Varela had an interest at the time of his 
conviction.
    Accordingly, it is hereby ordered:
    First, from the date of this Order until February 8, 2021, Ricardo 
Humberto Varela, with a last known address of Inmate Number: 85044-379, 
Federal Correctional Institution 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 organization related to Varela 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, Varela 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 Varela and shall 
be published in the Federal Register.
    Sixth, this Order is effective immediately and shall remain in 
effect until February 8, 2021.


[[Page 39110]]


    Issued: August 10, 2017.
Karen H. Nies-Vogel,
Director, Office of Exporter Services.
[FR Doc. 2017-17373 Filed 8-16-17; 8:45 am]
BILLING CODE P