[Federal Register Volume 84, Number 194 (Monday, October 7, 2019)]
[Notices]
[Pages 53407-53408]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-21740]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security


In the Matter of: Barbara Jo Luque, 7582 South Ocean Port Drive, 
Tucson, AZ 85757, Order Denying Export Privileges

    On April 25, 2018, in the U.S. District Court for the District of 
Arizona, Barbara Jo Luque (``Luque'') was convicted of violating 
Section 38 of the Arms Export Control Act (22 U.S.C. 2778 (2012)) 
(``AECA''). Luque was convicted of violating Section 38 of the AECA by 
intentionally attempting to willfully and knowingly export and cause to 
be exported from the United States to Mexico items designated as 
defense articles on the United States Munitions List, namely, 5,000 
rounds of FMJ Russian 7.62x39 mm ammunition and 125 AK-47 KCI thirty-
round magazines, without the required U.S. Department of State 
licenses. Luque was sentenced to six months in prison, with credit for 
time served, two years of supervised release, and a special assessment 
of $100.
    The Export Administration Regulations (``EAR'' or ``Regulations'') 
are administered and enforced by the U.S. Department of Commerce's 
Bureau of Industry and Security (``BIS'').\1\

[[Page 53408]]

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\
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    \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 has 
been extended by successive Presidential Notices, the most recent 
being that of August 14, 2019 (84 FR 41,881 (Aug. 15, 2019)), 
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, 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, 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 1760(e) and 1768 of ECRA, 50 U.S.C. 4819 and 
4826; and note 1, supra.
    \3\ See notes 1 and 2, supra.
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    BIS has received notice of Luque's conviction for violating Section 
38 of the AECA and pursuant to Section 766.25 of the Regulations has 
provided notice and an opportunity for Luque to make a written 
submission to BIS. BIS has not received a submission from Luque.
    Based upon my review and consultations with BIS's Office of Export 
Enforcement, including its Director, and the facts available to BIS, I 
have decided to deny Luque's export privileges under the Regulations 
for a period of seven years from the date of Luque's conviction. I have 
also decided to revoke any BIS-issued license in which Luque had an 
interest at the time of her conviction.
    Accordingly, it is hereby ordered:
    First, from the date of this Order until April 25, 2025, Barbara Jo 
Luque, with a last known address of 7582 South Ocean Port Drive, 
Tucson, AZ 85757, and when acting for or on her behalf, her 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 Luque 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, Luque 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 Luque and shall 
be published in the Federal Register.
    Sixth, this Order is effective immediately and shall remain in 
effect until April 25, 2025.

    Issued this 30th day of September 2019.
Karen H. Nies-Vogel,
Director, Office of Exporter Services.
[FR Doc. 2019-21740 Filed 10-4-19; 8:45 am]
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