Order Denying Export Privileges
| Published date | 24 September 2020 |
| Citation | 85 FR 60131 |
| Record Number | 2020-21113 |
| Section | Notices |
| Court | Industry And Security Bureau |
60131
Federal Register / Vol. 85, No. 186 / Thursday, September 24, 2020 / Notices
2
ECRA was enacted as part of the John S. McCain
National Defense Authorization Act for Fiscal Year
2019, and as amended is codified at 50 U.S.C.
4801–4852. Chehade’s conviction post-dates
ECRA’s enactment on August 13, 2018.
3
The Regulations are currently codified in the
Code of Federal Regulations at 15 CFR parts 730–
774 (2020). 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
Continued
DEPARTMENT OF COMMERCE
Foreign-Trade Zones Board
[B–58–2020]
Foreign-Trade Zone (FTZ) 134—
Chattanooga, Tennessee; Notification
of Proposed Production Activity;
Volkswagen Group of America
Chattanooga Operations, LLC
(Passenger Motor Vehicles),
Chattanooga, Tennessee
Volkswagen Group of America
Chattanooga Operations, LLC
(Volkswagen), submitted a notification
of proposed production activity to the
FTZ Board for its facility in
Chattanooga, Tennessee. The
notification conforming to the
requirements of the regulations of the
FTZ Board (15 CFR 400.22) was
received on September 18, 2020.
Volkswagen already has authority to
produce passenger motor vehicles
within FTZ 134. The current request
would add finished products and
foreign status materials/components to
the scope of authority. Pursuant to 15
CFR 400.14(b), additional FTZ authority
would be limited to the specific foreign-
status materials/components 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 Volkswagen from customs
duty payments on the foreign-status
materials/components used in export
production. On its domestic sales, for
the foreign-status materials/components
noted below and in the existing scope
of authority, Volkswagen would be able
to choose the duty rates during customs
entry procedures that apply to electric
vehicles and electric vehicle batteries
(duty rate ranges from 2.5% to 3.4%).
Volkswagen would be able to avoid duty
on foreign-status components which
become scrap/waste. Customs duties
also could possibly be deferred or
reduced on foreign-status production
equipment.
The materials/components sourced
from abroad include: Gap fillers (fills
the space between the battery modules
and battery packs); battery housings;
battery housing frames; cross beams;
side members; extruded aluminum
structural members for battery housings;
floor piece assemblies; floor piece
cooling systems; crash protection
assemblies; battery cover plates;
automatic circuit breaker molded cases;
relays; electric insulation polymer
padding; plastic lids/covers for
supporting plates; box assemblies
comprised of supporting plates, box
insulation, box protection, fuses and
cover assemblies; box cover assemblies
made from a mix of nylon polymer and
copper alloys; supporting plates (metal
construction with a plastic shield that is
used to support battery control
modules); and, transportation covers
used to protect the connectors for
battery packs (duty rate ranges from
2.7% to 3.4%). The request indicates
that certain materials/components are
subject to duties under Section 232 of
the Trade Expansion Act of 1962
(Section 232) and Section 301 of the
Trade Act of 1974 (Section 301),
depending on the country of origin. The
applicable Section 232 and 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
November 3, 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
Christopher Wedderburn at
Chris.Wedderburn@trade.gov or (202)
482–1963.
Dated: September 18, 2020.
Andrew McGilvray,
Executive Secretary.
[FR Doc. 2020–21102 Filed 9–23–20; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
Foreign-Trade Zones Board
[B–33–2020]
Foreign-Trade Zone (FTZ) 137—
Washington Dulles International
Airport, Virginia; Authorization of
Production Activity; FN America, LLC
(Disassembly of Machine Guns),
Dulles, Virginia
On May 22, 2020, CDS Air Freight
Inc., an operator within FTZ 137,
submitted a notification of proposed
production activity to the FTZ Board on
behalf of FN America, LLC, within FTZ
137, in Dulles, Virginia.
The notification was processed in
accordance with the regulations of the
FTZ Board (15 CFR part 400), including
notice in the Federal Register inviting
public comment (85 FR 33622, June 2,
2020). On September 21, 2020, the
applicant was notified of the FTZ
Board’s decision that no further review
of the activity is warranted at this time.
The production activity described in the
notification was authorized, subject to
the FTZ Act and the FTZ Board’s
regulations, including Section 400.14.
Dated: September 21, 2020.
Andrew McGilvray,
Executive Secretary.
[FR Doc. 2020–21101 Filed 9–23–20; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
Order Denying Export Privileges
In the Matter of: Walid Chehade, 4855
Hawthorn Lane, Unit 20, Westlake, OH
44145.
On May 8, 2019, in the U.S. District
Court for the Western District of
Michigan, Walid Chehade (‘‘Chehade’’),
was convicted of violating 18 U.S.C.
371. Specifically, Chehade was
convicted of knowingly and willfully
conspiring to export from the United
States to Lebanon guns and gun parts
designated as defense articles on the
United States Munitions List, without
first obtaining the required licenses
from the U.S. Department of State.
Chehade was sentenced to time served,
one year of supervised release, a $5,000
fine, and a $100 special assessment.
Pursuant to Section 1760(e) of the
Export Control Reform Act (‘‘ECRA’’),
2
the export privileges of any person who
has been convicted of certain offenses,
including, but not limited to, 18 U.S.C.
371, may be denied for a period of up
to ten (10) years from the date of his/her
conviction. 50 U.S.C. 4819(e) (Prior
Convictions). In addition, any BIS
licenses or other authorizations issued
under ECRA in which the person had an
interest at the time of the conviction
may be revoked. Id.
BIS received notice of Chehade’s
conviction for violating 18 U.S.C. 371,
and has provided notice and
opportunity for Chehade to make a
written submission to BIS, as provided
in Section 766.25 of the Export
Administration Regulations (‘‘EAR’’ or
the ‘‘Regulations’’). 15 CFR 766.25.
3
BIS
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60132
Federal Register / Vol. 85, No. 186 / Thursday, September 24, 2020 / Notices
(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’’). Section 1768 of ECRA, 50 U.S.C. 4826,
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, 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. See note 1, supra.
has received a written submission from
Chehade.
Based upon my review of the record,
including Chehade’s written submission
from Counsel, and consultations with
BIS’s Office of Export Enforcement,
including its Director, and the facts
available to BIS, I have decided to deny
Chehade’s export privileges under the
Regulations for a period of seven years
from the date of Chehade’s conviction.
I have also decided to revoke any BIS-
issued licenses in which Chehade had
an interest at the time of his conviction.
Accordingly, it is hereby ordered:
First, from the date of this Order until
May 8, 2026, Walid Chehade, with a last
known address of 4855 Hawthorn Lane,
Unit 20, Westlake, OH 44145, 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, pursuant to Section 1760(e) of
the Export Control Reform Act (50
U.S.C. 819(e) and Sections 766.23 and
766.25 of the Regulations, any other
person, firm, corporation, or business
organization related to Chehade 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, Chehade 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 Chehade and shall be
published in the Federal Register.
Sixth, this Order is effective
immediately and shall remain in effect
until May 8, 2026.
Issued this 21st day of September, 2020.
Karen H. Nies-Vogel,
Director, Office of Exporter Services.
[FR Doc. 2020–21113 Filed 9–23–20; 8:45 am]
BILLING CODE 3510–DT–P
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
RIN 0648–BI59
Atlantic Highly Migratory Species;
Amendment 14 to the 2006
Consolidated Atlantic Highly Migratory
Species Fishery Management Plan
AGENCY
: National Marine Fisheries
Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA),
Commerce.
ACTION
: Notice of availability; request
for comments.
SUMMARY
: NMFS announces the
availability of Draft Amendment 14 to
the 2006 Consolidated Atlantic Highly
Migratory Species (HMS) Fishery
Management Plan (FMP). Draft
Amendment 14 is being undertaken to
revise the mechanism or ‘‘framework’’
used in establishing quotas and related
management measures for Atlantic
shark fisheries. The current framework
was established in Amendment 3 to the
2006 Consolidated Atlantic HMS FMP.
The revised framework would modify
the procedures followed in establishing
the acceptable biological catch (ABC)
and annual catch limits (ACLs) for
Atlantic sharks and the process used to
account for carryover or underharvests
of quotas. It would also allow the option
to phase-in ABC catch control rules and
to adopt multi-year overfishing status
determination criteria in some
circumstances. Amendment 14 will not
make changes to the current quotas or
other management measures. Such
changes would be adopted through
subsequent rulemaking.
DATES
: Written comments must be
received by December 31, 2020. NMFS
will hold two operator-assisted public
hearings via conference calls and
webinars on Draft Amendment 14 in
October and November 2020. For
specific dates and times, see the
SUPPLEMENTARY INFORMATION
section of
this document.
ADDRESSES
: Electronic copies of Draft
Amendment 14 to the 2006
Consolidated HMS FMP may be
obtained on the internet at: https://
www.fisheries.noaa.gov/action/
amendment-14-2006-consolidated-hms-
fishery-management-plan-shark-quota-
management.
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