[Federal Register Volume 88, Number 23 (Friday, February 3, 2023)]
[Notices]
[Pages 7395-7396]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-02323]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security


In the Matter of: Shirley Trinity Inzunza, 6767 N 7th Street, 
Unit 220, Phoeniz, AZ 85014; Order Denying Export Privileges

    On January 22, 2018, in the U.S. District Court for the District of 
Arizona, Shirley Trinity Inzunza (``Inzunza'') was convicted of 
violating Section 38 of the Arms Export Control Act (22 U.S.C 2778) 
(``AECA''). Specifically, Inzunza was convicted of knowingly and 
willfully attempting to export and causing to be exported from the 
United States to Mexico, 10,000 23 rounds of .223 caliber ammunition, 
which was designated as a defense article on the United States 
Munitions List, without having first obtained from the Department of 
State a license for such export or written authorization for such 
export.
    As a result of her conviction, the Court sentenced Inzunza to 36 
months of confinement with credit for time served and $100 special 
assessment. Inzunza was also placed on U.S. Department of State's 
debarred list.
    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 7396]]

Section 766.25 of the Regulations provides, in pertinent part, that the 
``Director of [BIS's] Office of Export Enforcement, in consultation 
with the Director of [BIS's] Office of Exporter Services, may deny the 
export privileges of any person who has been convicted of a violation 
of any of the statues set forth at 50 U.S.C. 4819 (e)(1)(B),'' \2\ 
including Section 38 of the AECA. 15 CFR 766.25(a).\3\ 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). 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 has an 
interest at the time of his/her conviction.\4\
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    \1\ The Regulations are currently codified in the Code of 
Federal Regulations at 15 CFR parts 730-774 (2022). 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 
Emergnecy Economic Powers Act (50 U.S.C. 1701, et seq.) (``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\ The Director, Office of Export Enforcement, is now the 
authorizing official for issuance of denial orders, pursuant to 
amendments to the Regulations (85 FR 73411, November 18, 2020).
    \3\ As codified at the time of the underlying conviction at 
issue, Section 11(h)(1) of the EAA, as amended, provided that: '' No 
person convicted of a violation of this chapter (or any regulation, 
license, or older issued under this chapter), any regulation, 
license, or order issed under the International Emergnecy Economic 
Powers Act [50 U.S.C. 1701, et seq.], section 793, 794 or 798 of 
title 18, section 783(b) of this title, or section 2778 of title 22 
shall be eligible, at the discretion of the Secretary, to apply for 
or use any export license under this chapter for a period of up to 
10 years from the date of conviction. The Secretary may revoke any 
export license under this chapter in which such person has an 
interest at the time of conviction.'' 50 U.S.C. 4610(h)(1).
    \4\ See notes 1 and 3, supra.
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    BIS received notice of Inzunza'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 Inzunza to make a written 
submission to BIS. BIS has not received a written submission from 
Inzunza.
    Based upon my review of the record and consultations with BIS's 
Office of Exporter Services, including its Director, and the facts 
available to BIS, I have decided to deny Inzunza's export privileges 
under the Regulations for a period of eight years from the date of 
Inzunza's conviction. The Office of Exporter Services has also decided 
to revoke any BIS-issued licenses in which Inzunza had an interest at 
the time of her conviction.\5\
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    \5\ The Director, Office of Export Enforcement, is now the 
authorizing official for issuance of denial orders, pursuant to 
amendments to the Regulations (85 FR 73411, November 18, 2020).
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    Accordingly, it is hereby ordered:
    First, from the date of this Order until January 18, 2026, Shirley 
Trinity Inzunza, with a last known address of 6767 N 7th Street, Unit 
220, Phoeniz, AZ 85014, 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 Inzunza 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, Inzunza 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 Inzunza and shall 
be published in the Federal Register.
    Sixth, this Order is effective immediately and shall remain in 
effect until January 18, 2026.

John Sonderman,
Director, Office of Export Enforcement.
[FR Doc. 2023-02323 Filed 2-2-23; 8:45 am]
BILLING CODE 3510-DT-P