Action Affecting Export Privileges; Jack Allen Baugher; Order Denying Permission To Apply For or Use Export Licenses

DEPARTMENT OF COMMERCE

Bureau of Export Administration

Action Affecting Export Privileges; Jack Allen Baugher; Order

Denying Permission To Apply For or Use Export Licenses

In the Matter of: Jack Allen Baugher, 10503 Tieton Drive,

Yakima, Washington 98908.

On December 19, 1997, Jack Allen Baugher (Baugher) was convicted in

the United States District Court for the Eastern District of

Washington, on two counts of violating the International Emergency

Economic Powers Act (50 U.S.C.A. Sec. Sec. 1701-1706 (1991 & Supp.

1998)) (IEEPA) and two counts of violating Section 38 of the Arms

Export Control Act (currently codified at 22 U.S.C.A. Sec. 2778 (1990 &

Supp. 1998)) (AECA). Specifically, Baugher was convicted of knowingly

and willfully exporting and causing to be exported electronic stun guns

to Mexico and the Philippines, without obtaining the required export

licenses from the Department of Commerce, and of knowingly and

willfully exporting and causing to be exported liquid pepper to Mexico

and the Philippines, without obtaining the required written

authorization from the State Department.

Section 11(h) of the Export Administration Act of 1979, as amended

(currently codified at 50 U.S.C.A. app. Sec. Sec. 2401-2420 (1991 &

Supp. 1998)) (the Act),\1\ provides that, at the discretion of the

Secretary of Commerce,\2\ no person convicted of violating the IEEPA or

the AECA, or certain other provisions of the United States Code, shall

be eligible to apply for or use any license, including any License

Exception, issued pursuant to, or provided by, the Act or the Export

Administration Regulations (currently codified at 15 CFR Parts 730-774

(1998)) (the Regulations), for a period of up to 10 years from the date

of the conviction. In addition, any license issued pursuant to the Act

in which such a person had any interest at the time of conviction may

be revoked.

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\1\ The Act expired on August 20, 1994. Executive Order 12924 (3

CFR 1994 Comp. 917 (1995)), extended by Presidential Notices of

August 15, 1995 (3 CFR, 1995 Comp. 501 (1996)), August 14, 1996 (3

CFR 1996 Comp. 298 (1997)), and August 13, 1997 (62 FR 43669, August

15, 1997), continued the Export Administration Regulations in effect

under the IEEPA.

\2\ Pursuant to appropriate delegations of authority, the

Director, Office of Exporter Services, in consultation with the

Director, Office of Export Enforcement, exercise the authority

granted to the Secretary by Section 11(h) of the Act.

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Pursuant to Section 766.25 and 750.8(a) of the Regulations, upon

notification that a person has been convicted of violating the IEEPA or

the AECA, the Director, Office of Exporter Services, in consultation

with the Director, Office of Export Enforcement, shall determine

whether to deny that person permission to apply for or use any license,

including any License Exception, issued pursuant to, or provided by,

the Act or the Regulations, and shall also determine whether to revoke

any license previously issued to such a person.

Having received notice of Baugher's conviction for violating the

IEEPA and the AECA, and following consultations with the Acting

Director, Office of Export Enforcement, I have decided to deny Baugher

permission to apply for or use any license, including any License

Exception, issued pursuant to, or provided by, the Act and the

Regulations, for a period of eight years from the date of his

conviction. The eight-year period ends on December 19, 2005. I have

also decided to revoke all licenses issued pursuant to the Act in which

Baugher had an interest at the time of his conviction.

Accordingly, it is hereby

Ordered

I. Until December 19, 2005, Jack Allen Baugher, 10503 Teiton Drive,

Yakima, Washington 98908, 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, or in any other activity 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 in any other

activity subject to the Regulations; or

C. Benefiting 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 in any other activity subject to the Regulations.

II. No person may do, directly or indirectly, 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 or 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.

III. After notice and opportunity for comment as provided in

Section 766.23 of the Regulations, any person, firm, corporation, or

business organization related to Baugher by affiliation, ownership,

control, or position or responsibility in the conduct of trade or

related services may also be subject to the provisions of this Order.

IV. This Order does not prohibit any export, reexport, or other

transaction subject to the Regulations where the only items involved

that are subject to the Regulations are the foreign-produced direct

product of U.S-origin technology.

V. This Order is effective immediately and shall remain in the

effect until December 19, 2005.

VI. A copy of this Order shall be delivered to Baugher. This Order

shall be published in the Federal Register.

[[Page 43372]]

Dated: August 3, 1998.

Eileen M. Albanese,

Director, Office of Exporter Services.

[FR Doc. 98-21661 Filed 8-12-98; 8:45 am]

BILLING CODE 3510-DT-M