The U.S. Department of State has issued an order administratively debarring Carlos Dominguez from participating in any activities that are subject to the International Traffic in Arms Regulations (ITAR) (22 C.F.R. Parts 120-130) as a result of violations of the Arms Export Controls Act (AECA) (22 U.S.C. § 2778) and the ITAR. These actions are in response to the unauthorized re-export and retransfer of night vision devices and related technical data, and for conspiracy to, and causing of, the re-export and retransfer of defense articles without authorization, in violation of terms and conditions of Department defense trade authorizations.
The debarment, which applies to Dominguez individually, as well as in his capacity as principal officer of his associated entities, and to Elint, S.A.; Spain Night Vision, S.A.; and SNV, S.A., was the result of an extensive compliance review by the Department’s Office of Defense Trade Controls Compliance in the Bureau of Political-Military Affairs. This review found that Dominguez and his associated companies re-exported and retransferred defense articles in violation of Department authorizations, and used falsified export control documents. Upon notification of ineligibility to engage in defense trade by the Department, 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.
While the results of that review indicated no direct harm to U.S. foreign policy or national security occurred, the nature of the violations and Respondents’ efforts to conceal their continued involvement despite ineligibility prompted the Deputy Assistant Secretary for Defense Trade Controls to formally charge the Respondents with 366 violations of the AECA and ITAR.
This administrative debarment is the result of the Department’s first administrative proceeding against a foreign individual and associated foreign entities by referral of a charging letter before an Administrative Law Judge pursuant to ITAR § 128.4. The referral and debarment followed the Respondents’ failure to answer the formal charges.
This administrative proceeding again highlights the range of potential penalties that may be imposed by the Department for ITAR violations, including those committed by foreign individuals and entities. Those U.S. persons tasked with an entity’s export responsibilities should be vigilant in their compliance with all export control regulations and ensure that foreign consignees and end-users are fully in compliance with the requirements of the ITAR.
Under the terms of the administrative debarment, Carlos Dominguez and his associated entities will be prevented from participating directly or indirectly in any activities that are subject to the ITAR for a period of three years and until an application for reinstatement is submitted and approved by the Department.
The Administrative Debarment Order and related documents will be available for public inspection in the Public Reading Room of the Department of State and on the Directorate of Defense Trade Controls website at http://www.pmddtc.state.gov/compliance/debar_admin.html
For additional information, please contact the Bureau of Political-Military Affairs’ Office of Congressional and Public Affairs at PM-CPA@state.gov.