[Federal Register Volume 78, Number 1 (Wednesday, January 2, 2013)]
[Notices]
[Pages 86-88]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-31442]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
In the Matter of:
Henson Chua, 2945 Somerset Place, San Marino, CA 91108, and with an
address at:
Henson Chua, 27 Cambridge Street, Hillsborough Village, Muntin Lupa
City, Philippines, 1780,
Respondent; Celltron Marketing Company, a.k.a. Celltron Mktg. Co.,
47A G. Araneta Ave, Quezon City, MM Philippines, 1105,
Related Person; Order Denying Export Privileges
A. Denial of Export Privileges of Henson Chua
On November 8, 2011, in the U.S. District Court, Middle District of
Florida Tampa Division, Henson Chua (``Chua'') was convicted of
violating Section 38 of the Arms Export Control Act (22 U.S.C. 2778
(2000)) (``AECA''). Specifically, Chua was convicted of knowingly and
willfully causing the temporary import into the United States, an
unmanned aerial vehicle, which was designated as a defense article on
the United States Munitions List, without having first obtained from
the U.S. Department of State a license or written authorization for
such temporary import.
Chua was sentenced to time served followed by three years of
supervised release. Chua was ordered to pay a fine of $13,000 and a
special assessment of $100.00. Chua is also listed on the U.S.
Department of State Debarred List.
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, the EAR,
of 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. app. Sec.
2410(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. app. Sec. 2410(h). In addition, Section
750.8 of
[[Page 87]]
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 in which the person had
an interest in 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 (2012). The Regulations
issued pursuant to the EAA (50 U.S.C. app. Sec. Sec. 2401-2420
(2000)). Since August 21, 2001, the Export Administration Act
(``EAA'') 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 12, 2012 (77 FR 49699, August 16, 2012),
has continued the Regulations in effect under International
Emergency Economics Powers Act (50 U.S.C. 1701, et seq. (2000)).
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I have received notice of Chua's conviction for violating the AECA,
and have provided notice and an opportunity for Chua to make a written
submission to BIS, as provided in Section 766.25 of the Regulations. I
have received a submission from Chua. 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 Chua's
export privileges under the Regulations for a period of five years from
the date of Chua's conviction. I have also decided to revoke all
licenses issued pursuant to the Act or Regulations in which Chua had an
interest at the time of his conviction.
B. Denial of Export Privileges of Related Person
Pursuant to Sections 766.25(h) and 766.23 of the Regulations, the
Director of BIS's Office of Exporter Services, in consultation with the
Director of BIS's Office of Export Enforcement, may take action to name
persons related to a Respondent by ownership, control, position of
responsibility, affiliation, or other connection in the conduct of
trade or business in order to prevent evasion of a denial order.
Celltron is the name of the company that Chua utilized in his dealing
with Immigration and Customs Enforcement (``ICE''), Homeland Security
Investigations (``HIS''). He used this company as the sender of the
goods to HIS/ICE. Therefore Celltron is related to Chua by ownership,
control, position of responsibility, affiliation, or other connection
in the conduct of trade or business. BIS believes that naming Celltron
as a related person to Chua is necessary to avoid evasion of the denial
order against Chua.
As provided in Section 766.23 of the Regulations, I gave notice to
Celltron that its export privileges under the Regulations could be
denied for up to 10 years due to its relationship with Chua and that
BIS believes naming it as a person related to Chua would be necessary
to prevent evasion of a denial order imposed against Chua. In providing
such notice, I gave Celltron an opportunity to oppose its addition to
the Chua Denial Order as a related party. Having received a submission
from Chua, I have decided, following consultations with BIS's Office of
Export Enforcement, including its Director, to name Celltron as a
Related Person to the Chua Denial Order, thereby denying its export
privileges for five years from the date of Chua's conviction.
I have also decided to revoke all licenses issued pursuant to the
Act or Regulations in which the Related Person had an interest at the
time of Chua's conviction. The five-year denial period will end on
November 8, 2016.
Accordingly, it is hereby
Ordered
I. Until November 8, 2016, Henson Chua, with last known addresses
at: 2945 Somerset Place, San Marino, CA 91108, and 27 Cambridge Street,
Hillsborough Village, Muntin Lupa City, Philippines, 1780, and when
acting for or on behalf of Chua, his representatives, assigns, agents
or employees (collectively referred to hereinafter as the ``Denied
Person''), and the following person related to the Denied Person as
defined by Section 766.23 of the Regulations: Celltron Marketing
Company, a.k.a. Celltron Mktg. Co., with a last known address at: 47A
G. Araneta Ave, Quezon City, MM Philippines, 1105, and when acting for
or on behalf of Celltron, its successors or assigns, agents, or
employees (``the Related Person'') (together, the Denied Person and the
Related Person are ``Persons Subject to this Order''), 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, or in any other
activity 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 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 in any other activity subject to the Regulations.
II. No person may, directly or indirectly, do any of the following:
A. Export or reexport to or on behalf of the Persons Subject to
this Order any item subject to the Regulations;
B. Take any action that facilitates the acquisition or attempted
acquisition by the Persons Subject to this Order 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 Persons
Subject to this Order acquire or attempt to acquire such ownership,
possession or control;
C. Take any action to acquire from or to facilitate the acquisition
or attempted acquisition from the Persons Subject to this Order of any
item subject to the Regulations that has been exported from the United
States;
D. Obtain from the Persons Subject to this Order 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 Persons Subject to
this Order, or service any item, of whatever origin, that is owned,
possessed or controlled by the Persons Subject to this Order 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.
III. In addition to the Related Person named above, 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 the Denied Person by affiliation, ownership,
control, or position of responsibility in the conduct of trade or
related services may also be made subject to the provisions of this
Order if necessary to prevent evasion of the Order.
IV. This Order does not prohibit any export, reexport, or other
transaction subject to the Regulations where the only items involved
that are subject to the Regulations are the foreign-produced direct
product of U.S.-origin technology.
V. This Order is effective immediately and shall remain in effect
until November 8, 2016.
VI. In accordance with Part 756 of the Regulations, Chua 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.
[[Page 88]]
VII. In accordance with Part 756 of the Regulations, the Related
Person may also 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.
VIII. A copy of this Order shall be delivered to the Denied Person
and the Related Person. This Order shall be published in the Federal
Register.
Issued this 21st day of December 2012.
Bernard Kritzer,
Director, Office of Exporter Services.
[FR Doc. 2012-31442 Filed 12-31-12; 8:45 am]
BILLING CODE P