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, 35210-35211 [2014-14152]

Agencies

• DEPARTMENT OF STATE

[Federal Register Volume 79, Number 118 (Thursday, June 19, 2014)]
[Notices]
[Pages 35210-35211]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-14152]


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DEPARTMENT OF STATE

[Public Notice 8767]


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

ACTION: Notice.

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SUMMARY: Notice is hereby given that the Department of State has 
imposed administrative debarment pursuant to Section 127.7(a) of the 
International Traffic in Arms Regulations (ITAR) (22 CFR parts 120 to 
130) on 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).

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.

SUPPLEMENTARY INFORMATION: 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

[[Page 35211]]

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 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, Docket14-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, 2014; Reinstatement after June 4, 2014 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 4, 2014.
Tom Kelly,
Acting Assistant Secretary, Bureau of Political-Military Affairs, 
Department of State.
[FR Doc. 2014-14152 Filed 6-18-14; 8:45 am]
BILLING CODE 4710-25-P