[Federal Register Volume 79, Number 126 (Tuesday, July 1, 2014)]
[Notices]
[Pages 37384-37385]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-15398]
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DEPARTMENT OF STATE
[Public Notice 8785]
Bureau of Political-Military Affairs; Administrative Debarment of
Carlos Dominguez, Elint, S.A., Spain Night Vision, S.A., and SNV, S.A.
Under the Arms Export Control Act and the International Traffic in Arms
Regulations; Correction
ACTION: Notice; Correction.
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SUMMARY: The Department of State published a Federal Register document
on June 19, 2014, concerning the administrative debarment pursuant to
Section 127.7(a) of the International Traffic in Arms Regulations
(ITAR) (22 CFR parts 120 to 130) of Carlos Dominguez (individually and
in his capacity as principal of the following entities); Elint, S.A.;
Spain Night Vision, S.A.; and SNV, S.A. (including successors,
assignees, and aliases). The document contained an incorrect period of
debarment. This document corrects document 2014-14152 by changing the
period of debarment and the date after which the Department will
consider reinstatement from June 4, 2014, to June 4, 2017.
DATES: Effective Date: June 4, 2014 (Date of signature of the Order)
FOR FURTHER INFORMATION CONTACT: Sue Gainor, Director, Office of
Defense Trade Controls Compliance, Bureau of Political-Military
Affairs, Department of State (202) 632-2798.
Correction
In the Federal Register of June 19, 2014, in FR Doc. 2014-14152, on
page 35211, in the second column, correct lines 22 through 24 to read:
``for a period of three years, until June 4, 2017; reinstatement after
June 4, 2017, is not automatic.'' For clarity, the complete text
including corrections is hereby reproduced in full, below.
The International Traffic in Arms Regulations (``ITAR''), the
implementing regulations of Section 38 of the Arms Export Control Act,
as amended, (``AECA'') (22 U.S.C. 2778), regulate the export and
temporary import of defense articles and defense services. Section
127.7(a) of the ITAR authorizes the Assistant Secretary of State for
Political-Military Affairs to debar any person who has been found,
pursuant to Part 128 of the ITAR, to have committed a violation of the
AECA or the ITAR of such a character as to provide a reasonable basis
for the Directorate of Defense Trade Controls to believe that the
violator cannot be relied upon to comply with the AECA or ITAR in the
future. Such debarment prohibits the subject from participating
directly or indirectly in any activities that are subject to the ITAR.
Debarred persons are generally ineligible to participate in
activity regulated under the ITAR (see e.g., sections 120.1(c) and (d),
126.7, 127.1(d), and 127.11(a)). The Department of State applies a
presumption of denial for licenses or other approvals involving such
persons as described in ITAR Section 127.11.
Pursuant to Section 38 of the AECA and Section 128.3 of the ITAR,
on
[[Page 37385]]
February 14, 2014, the Department of State initiated administrative
proceedings, by means of a charging letter, against Carlos Dominguez
(individually and in his capacity as principal of the following
entities); Elint, S.A.; Spain Night Vision, S.A.; and SNV, S.A.
(including successors, assignees, and aliases) (Respondents) to impose
debarment in accordance with Section 127.7 of the ITAR. (The United
States Department of State, Docket 14-DOS-0001). Respondents
were charged with 366 violations related to the unauthorized re-export
and retransfer of night vision devices and related technical data,
conspiracy to and causing of the re-export and retransfer of defense
articles without authorization, the violation of terms and conditions
of Department authorizations, the continued engagement in U.S. defense
trade despite ineligibility, the knowing and willful causation and the
commission of prohibited acts, and the falsification, misrepresentation
and omission of material facts on an export control document, all in
violation of Section 38 of the AECA and Section 127 of the ITAR.
Since at least 2008, Respondents have re-exported and retransferred
hundreds of night vision devices in violation of Department
authorizations and falsified export control documents. After multiple
unfavorable responses to `Blue Lantern' end-use inquiries and
subsequent compliance reviews, DTCC notified Respondents Dominguez and
Elint in September 2009 that they were ineligible to engage in defense
trade. Shortly thereafter, Dominguez and Elint changed or established
new business names and engaged third-party purchasers in order to
conceal their activities and evade detection. Further re-exports and
retransfers of previously exported defense articles continued under
these new business names, in violation of the AECA and ITAR.
Due to Respondents' failure to answer the charges as provided in
Section 128.5(a) of the ITAR, the Department referred the case to an
Administrative Law Judge for consideration, in accordance with Section
128.4 of the ITAR. Pursuant to Section 128.3 of the ITAR and the
Default Order of the Administrative Law Judge, dated April 23, 2014,
Respondents' failure to answer the charges constituted an admission of
the truth of the charges.
Section 128.4 of the ITAR provides for a respondent's ability to
petition to set aside defaults upon showing good cause; however, the
filing of such a petition does not in any manner affect an order
entered upon default and such order continues in full force and effect
unless a further order is made modifying or terminating it.
On June 4, 2014, as the result of the established violations and
pursuant to Section 127.7 of the ITAR, Carlos Dominguez (individually
and in his capacity as principal of the following entities); Elint,
S.A.; Spain Night Vision, S.A.; and SNV, S.A. (including successors,
assignees, and aliases) were administratively debarred by the Assistant
Secretary of State for Political-Military Affairs for a period of three
years, until June 4, 2017; reinstatement after June 4, 2017, is not
automatic. At the end of the debarment period, Respondents may apply
for reinstatement. Until licensing privileges are reinstated, Carlos
Dominguez (individually and in his capacity as principal of the
following entities); Elint, S.A.; Spain Night Vision, S.A.; and SNV,
S.A. (including successors, assignees, and aliases) will remain
debarred. No civil penalties have been imposed at this time.
This notice is provided to make the public aware that the persons
listed above are prohibited from participating directly or indirectly
in any brokering activities and in any export from or temporary import
into the United States of defense articles, related technical data, or
defense services in all situations covered by the ITAR.
Further, pursuant to Section 120.1(d) of the ITAR, persons with
knowledge that another person is ineligible must obtain authorization
from the Directorate of Defense Trade Controls prior to, directly or
indirectly and in any manner or capacity, applying for, obtaining, or
using any export control document for such ineligible person, or
ordering, buying, receiving, using, selling, delivering, storing,
disposing of, forwarding, transporting, financing, or otherwise
servicing or participating in any manner in any transaction that may
involve any defense article, which includes technical data, defense
services, or brokering activities, where such ineligible person may
obtain any benefit therefrom or have any direct or indirect interest
therein.
Exceptions may be made to this denial policy on a case-by-case
basis at the discretion of the Directorate of Defense Trade Controls.
However, such an exception would be granted only after a full review of
all circumstances, paying particular attention to the following
factors: whether an exception is warranted by overriding U.S. foreign
policy or national security interests; whether an exception would
further law enforcement concerns that are consistent with foreign
policy or national security interests of the United States; or whether
other compelling circumstances exist that are consistent with the
foreign policy or national security interests of the United States, and
law enforcement concerns.
This notice involves a foreign affairs function of the United
States encompassed within the meaning of the military and foreign
affairs exclusion of the Administrative Procedures Act. Because the
exercise of this foreign affairs function is highly discretionary, it
is excluded from review under the Administrative Procedures Act.
Dated: June 23, 2014.
Kenneth B. Handelman,
Deputy Assistant Secretary for Defense Trade Controls, Bureau of
Political-Military Affairs, Department of State.
[FR Doc. 2014-15398 Filed 6-30-14; 8:45 am]
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