Order Denying Export Privileges, 16054-16055 [2020-05993]

Download as PDF 16054 Federal Register / Vol. 85, No. 55 / Friday, March 20, 2020 / Notices become available, both before and after the meeting. Records of the meeting will be available via www.facadatabase.gov under the Commission on Civil Rights, Alabama Advisory Committee link (https://www.facadatabase.gov/FACA/ FACAPublicCommittee?id= a10t0000001gzlLAAQ). Persons interested in the work of this Committee are directed to the Commission’s website, https://www.usccr.gov, or may contact the Midwestern Regional Office at the above email or street address. Agenda Welcome and Roll Call Discussion of Barriers to Voting Report Discussion of Next Topics for study Next Steps Public Comment Adjournment Dated: March 17, 2020. David Mussatt, Supervisory Chief, Regional Programs Unit. [FR Doc. 2020–05951 Filed 3–19–20; 8:45 am] advised that before placing them into the conference call, the conference call operator will ask callers to provide their names, their organizational affiliations (if any), and email addresses (so that callers may be notified of future meetings). Callers can expect to incur charges for calls they initiate over wireless lines, and the Commission will not refund any incurred charges. Callers will incur no charge for calls they initiate over land-line connections to the toll-free conference call-in number. Persons with hearing impairments may also follow the discussion by first calling the Federal Relay Service at 1– 800–877–8339 and providing the operator with the toll-free conference call-in number: 1–800–367–2403 and conference ID: 3030243. Dated: March 16, 2020. David Mussatt, Supervisory Chief, Regional Programs Unit. [FR Doc. 2020–05801 Filed 3–19–20; 8:45 am] BILLING CODE P BILLING CODE 6335–01–P COMMISSION ON CIVIL RIGHTS DEPARTMENT OF COMMERCE Corrections: Notice of Public Meeting of the Maryland Advisory Committee Foreign-Trade Zones Board AGENCY: U.S. Commission on Civil Correction: Mode of meeting will now be by teleconference instead of on location. Foreign-Trade Zone (FTZ) 116—Port Arthur, Texas, Notification of Proposed Production Activity, Port Arthur LNG, LLC (Liquified Natural Gas Processing), Port Arthur, Texas SUMMARY: The Commission on Civil Rights published a document Wednesday, March 11, 2020, announcing an upcoming Maryland Advisory Committee meeting. The document contained meeting at a venue but will now meet by teleconference. FOR FURTHER INFORMATION CONTACT: Barbara de La Viez, DFO, at bdelaviez@ usccr.gov or 202–376–7533. Correction: In the Federal Register of Wednesday, March 11, 2020, in FR Doc. 2020–04923, on page 14185 in the first column, delete ‘‘Ascend One Government Building, BelAir Room, 8930 Stanford Blvd., Columbia, MD 21045, in the narrative of the first paragraph and in the ‘‘LOCATION.’’ The meeting will not be held in person at a venue but by teleconference using the following numbers: 1–800–353–6461; ID: 2790767. Correction: In Column 1 also replace SUPPLEMENTARY INFORMATION with the following SUPPLEMENTARY INFORMATION: Interested members of the public may listen to the discussion by calling the following toll-free conference call-in number: 1–800–367–2403 and conference ID: 3030243. Please be Port Arthur LNG, LLC (Port Arthur LNG) submitted a notification of proposed production activity to the FTZ Board for its facility in Port Arthur, Texas. The notification conforming to the requirements of the regulations of the FTZ Board (15 CFR 400.22) was received on February 26, 2020. The applicant indicates that the grantee will be submitting a separate application for FTZ designation at the company’s facility under FTZ 116. The facility is used for liquified natural gas processing. Pursuant to 15 CFR 400.14(b), FTZ activity would be limited to the specific foreign-status material and specific finished products described in the submitted notification (as described below) and subsequently authorized by the FTZ Board. Production under FTZ procedures could exempt Port Arthur LNG from customs duty payments on the foreignstatus material used in export production. On its domestic sales, for the foreign-status material noted below, Port Arthur LNG would be able to choose the duty rates during customs entry procedures that apply to liquified natural gas, heavy hydrocarbon stream, Rights. ACTION: jbell on DSKJLSW7X2PROD with NOTICES [B–17–2020] VerDate Sep<11>2014 19:01 Mar 19, 2020 Jkt 250001 PO 00000 Frm 00008 Fmt 4703 Sfmt 4703 and stabilized gas condensate (duty rate ranges from duty-free to 10.5 cents/ barrel). Port Arthur LNG would be able to avoid duty on foreign-status material which becomes scrap/waste. Customs duties also could possibly be deferred or reduced on foreign-status production equipment. The material sourced from abroad is gaseous natural gas (duty-free). The request indicates that gaseous natural gas is subject to special duties under Section 301 of the Trade Act of 1974 (Section 301), depending on the country of origin. The applicable Section 301 decisions require subject merchandise to be admitted to FTZs in privileged foreign status (19 CFR 146.41). Public comment is invited from interested parties. Submissions shall be addressed to the Board’s Executive Secretary and sent to: ftz@trade.gov. The closing period for their receipt is April 29, 2020. A copy of the notification will be available for public inspection in the ‘‘Reading Room’’ section of the Board’s website, which is accessible via www.trade.gov/ftz. For further information, contact Diane Finver at Diane.Finver@trade.gov or (202) 482–1367. Dated: March 16, 2020. Andrew McGilvray, Executive Secretary. [FR Doc. 2020–05903 Filed 3–19–20; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE Bureau of Industry and Security Order Denying Export Privileges In the Matter of: Zimo Sheng, Jinxiuyuan 17–403, Changshu, Jiangsu 215500, China and 3975 N Cramer Street, Unit 204, Milwaukee, WI 53211. On December 13, 2018, in the U.S. District Court for the Eastern District of Wisconsin, Zimo Sheng (‘‘Sheng’’) was convicted of violating Section 38 of the Arms Export Control Act (22 U.S.C. 2778 (2012)) (‘‘AECA’’). Sheng was convicted of violating Section 38 of the AECA by knowingly and willfully attempting to export from the United States to China the complete upper assembly for a Glock 43 pistol BDEV511, designated as a defense article on the United States Munitions List, without the required U.S. Department of State licenses. Sheng was sentenced to 40 months in prison and a special assessment of $200. The Export Administration Regulations (‘‘EAR’’ or ‘‘Regulations’’) are administered and enforced by the E:\FR\FM\20MRN1.SGM 20MRN1 Federal Register / Vol. 85, No. 55 / Friday, March 20, 2020 / Notices jbell on DSKJLSW7X2PROD with NOTICES 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 Exporter Services, in consultation with the Director of [BIS’s] Office of Export Enforcement, may deny the export privileges of any person who has been convicted of a violation of . . . section 38 of the Arms Export Control Act (22 U.S.C. 2778).’’ 15 CFR 766.25(a). 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).2 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 had an interest at the time of his/her conviction.3 BIS has received notice of Sheng’s conviction for violating Section 38 of the AECA. The Regulations provide that before taking action to deny a person’s export privileges under Section 766.25, BIS shall provide the person written notice of the proposed action and an opportunity to comment through a written submission, ‘‘unless exceptional circumstances exist.’’ 15 CFR 766.25(b). In this case, following sentencing in the criminal matter, Sheng fled the United States, rather than surrendering to the Bureau of Prisons to serve his sentence, and his current whereabouts are unknown to BIS. As a result, exceptional circumstances exist. However, as set forth below, the 1 The Regulations are currently codified in the Code of Federal Regulations at 15 CFR parts 730– 774 (2019). 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 the International Emergency Economic Powers Act, 50 U.S.C. 1701, et seq. (2012) (‘‘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, which is codified as amended at 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) or under the EAR, 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 See also Section 11(h) of the EAA, 50 U.S.C. 4610(h) (Supp. III 2015); Sections 4819(e) and 4826 of ECRA, 50 U.S.C. 4819 and 4826; and note 1, supra. 3 See notes 1 and 2, supra. VerDate Sep<11>2014 19:01 Mar 19, 2020 Jkt 250001 opportunity to appeal this Order pursuant to part 756 of the Regulations remains available to Sheng. Following consultations with BIS’s Office of Export Enforcement, including its Director, I have decided to deny Sheng’s export privileges under the Regulations for a period of 10 years from the date of Sheng’s conviction. I have also decided to revoke any BIS-issued licenses in which Sheng had an interest at the time of his conviction. Accordingly, it is hereby ordered: First, from the date of this Order until December 13, 2028, Zimo Sheng, with last known addresses of Jinxiuyuan 17– 403, Changshu, Jiangsu 215500, China, and 3975 N Cramer Street, Unit 204, Milwaukee, WI 53211, 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 PO 00000 Frm 00009 Fmt 4703 Sfmt 9990 16055 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 Sheng 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, Sheng 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 Sheng and shall be published in the Federal Register. Sixth, this Order is effective immediately and shall remain in effect until December 13, 2028. Issued this 16th day of March, 2020. Karen H. Nies-Vogel, Director, Office of Exporter Services. [FR Doc. 2020–05993 Filed 3–19–20; 8:45 am] BILLING CODE P E:\FR\FM\20MRN1.SGM 20MRN1

Agencies

[Federal Register Volume 85, Number 55 (Friday, March 20, 2020)]
[Notices]
[Pages 16054-16055]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-05993]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security


Order Denying Export Privileges

    In the Matter of: Zimo Sheng, Jinxiuyuan 17-403, Changshu, 
Jiangsu 215500, China and 3975 N Cramer Street, Unit 204, Milwaukee, 
WI 53211.

    On December 13, 2018, in the U.S. District Court for the Eastern 
District of Wisconsin, Zimo Sheng (``Sheng'') was convicted of 
violating Section 38 of the Arms Export Control Act (22 U.S.C. 2778 
(2012)) (``AECA''). Sheng was convicted of violating Section 38 of the 
AECA by knowingly and willfully attempting to export from the United 
States to China the complete upper assembly for a Glock 43 pistol 
BDEV511, designated as a defense article on the United States Munitions 
List, without the required U.S. Department of State licenses. Sheng was 
sentenced to 40 months in prison and a special assessment of $200.
    The Export Administration Regulations (``EAR'' or ``Regulations'') 
are administered and enforced by the

[[Page 16055]]

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 Exporter Services, in 
consultation with the Director of [BIS's] Office of Export Enforcement, 
may deny the export privileges of any person who has been convicted of 
a violation of . . . section 38 of the Arms Export Control Act (22 
U.S.C. 2778).'' 15 CFR 766.25(a). 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).\2\ 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 had an interest at the time 
of his/her conviction.\3\
---------------------------------------------------------------------------

    \1\ The Regulations are currently codified in the Code of 
Federal Regulations at 15 CFR parts 730-774 (2019). 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 the International 
Emergency Economic Powers Act, 50 U.S.C. 1701, et seq. (2012) 
(``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, which is 
codified as amended at 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) or under the EAR, 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\ See also Section 11(h) of the EAA, 50 U.S.C. 4610(h) (Supp. 
III 2015); Sections 4819(e) and 4826 of ECRA, 50 U.S.C. 4819 and 
4826; and note 1, supra.
    \3\ See notes 1 and 2, supra.
---------------------------------------------------------------------------

    BIS has received notice of Sheng's conviction for violating Section 
38 of the AECA. The Regulations provide that before taking action to 
deny a person's export privileges under Section 766.25, BIS shall 
provide the person written notice of the proposed action and an 
opportunity to comment through a written submission, ``unless 
exceptional circumstances exist.'' 15 CFR 766.25(b). In this case, 
following sentencing in the criminal matter, Sheng fled the United 
States, rather than surrendering to the Bureau of Prisons to serve his 
sentence, and his current whereabouts are unknown to BIS. As a result, 
exceptional circumstances exist. However, as set forth below, the 
opportunity to appeal this Order pursuant to part 756 of the 
Regulations remains available to Sheng.
    Following consultations with BIS's Office of Export Enforcement, 
including its Director, I have decided to deny Sheng's export 
privileges under the Regulations for a period of 10 years from the date 
of Sheng's conviction. I have also decided to revoke any BIS-issued 
licenses in which Sheng had an interest at the time of his conviction.
    Accordingly, it is hereby ordered:
    First, from the date of this Order until December 13, 2028, Zimo 
Sheng, with last known addresses of Jinxiuyuan 17-403, Changshu, 
Jiangsu 215500, China, and 3975 N Cramer Street, Unit 204, Milwaukee, 
WI 53211, 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 Sheng 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, Sheng 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 Sheng and shall 
be published in the Federal Register.
    Sixth, this Order is effective immediately and shall remain in 
effect until December 13, 2028.

    Issued this 16th day of March, 2020.
Karen H. Nies-Vogel,
Director, Office of Exporter Services.
[FR Doc. 2020-05993 Filed 3-19-20; 8:45 am]
 BILLING CODE P

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