80 FR 17716 - In the Matter of: Precision Image Corporation, 22424 76th Avenue Southeast, Woodinville, WA 98072

DEPARTMENT OF COMMERCE
Bureau of Industry and Security

Federal Register Volume 80, Issue 63 (April 2, 2015)

[Federal Register Volume 80, Number 63 (Thursday, April 2, 2015)]
[Notices]
[Pages 17716-17717]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-07640]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security


In the Matter of: Precision Image Corporation, 22424 76th Avenue 
Southeast, Woodinville, WA 98072

Order Denying Export Privileges

    On October 28, 2013, in the U.S. District Court, Western District 
of Washington at Seattle, Precision Image Corporation, was convicted of 
violating Section 38 of the Arms Export Control Act (22 U.S.C. Sec.  
2778 (2012)) (``AECA''). Specifically, Precision Image Corporation 
willfully exported from the United States technical data designated on 
the United States Munitions List, International Traffic in Arms 
Regulations, namely, a PCB, Sensor Motherboard, H-1 Gyro, PESK-7571, 
which is covered by Category XII(f) of the United States Munitions 
List, without having obtained from the United States Department of 
State a license or written approval for the export of this technical 
data. Precision Image Corporation was sentenced to 3 years of 
probation, criminal fine of $300,000 and an assessment of $400.
    Section 766.25 of the Export Administration Regulations (``EAR'' or 
``Regulations'') \1\ provides, in pertinent part, that ``[t]he Director 
of the Office of Exporter Services, in consultation with the Director 
of the Office of Export Enforcement, may deny the export privileges of 
any person who has been convicted of a violation of the Export 
Administration Act (``EAA''), the EAR, or any order, license or 
authorization issued thereunder; any regulation, license, or order 
issued under the International Emergency Economic Powers Act (50 U.S.C. 
Sec.  1701-1706); 18 U.S.C. Sec. Sec.  793, 794 or 798; section 4(b) of 
the Internal Security Act of 1950 (50 U.S.C. Sec.  783(b)), or section 
38 of the Arms Export Control Act (22 U.S.C. Sec.  2778).'' 15 CFR. 
Sec.  766.25(a); see also Section 11(h) of the EAA, 50 U.S.C. app. 
Sec.  2410(h). 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. Sec.  766.25(d); see also 50 U.S.C. app. Sec.  2410(h). In 
addition, Section 750.8 of the Regulations states that the Bureau of 
Industry and Security's Office of Exporter Services may revoke any 
Bureau of Industry and Security (``BIS'') licenses previously issued in 
which the person had an interest in at the time of its conviction.
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    \1\ The Regulations are currently codified in the Code of 
Federal Regulations at 15 CFR parts 730-774 (2014). The Regulations 
issued pursuant to the Export Administration Act (50 U.S.C. app. 
Sec. Sec.  2401-2420 (2000)) (``EAA''). Since August 21, 2001, the 
EAA has been in lapse and the President, through Executive Order 
13222 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 7, 2014 (79 FR 46959 (August 11, 2014)), has 
continued the Regulations in effect under the International 
Emergency Economic Powers Act (50 U.S.C. Sec.  1701, et seq. (2006 & 
Supp. IV 2010)).
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    BIS has received notice of Precision Image Corporation's conviction 
for violating the AECA, and have provided notice and an opportunity for 
Precision Image Corporation to make a written submission to BIS, as 
provided in Section 766.25 of the Regulations. BIS has received and 
reviewed a submission from Precision Image Corporation.
    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 Precision Image Corporation's export privileges 
under the Regulations for a period of 10 years from the date of 
Precision Image Corporation's conviction. I have also decided to revoke 
all licenses issued pursuant to the Act or Regulations in which 
Precision Image Corporation had an interest at the time of its 
conviction.

[[Page 17717]]

    Accordingly, it is hereby ORDERED:
    First, from the date of this Order until October 28, 2023, 
Precision Image Corporation, with a last known address of 22424 76th 
Avenue Southeast, Woodinville, WA 98072, and when acting for or on its 
behalf, its successors, assigns, directors, officers, 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 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 in 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 Precision Image Corporation 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, Precision 
Image Corporation 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 the Precision 
Image Corporation. This Order shall be published in the Federal 
Register.
    Sixth, this Order is effective immediately and shall remain in 
effect until October 28, 2023.

    Issued this 26th day of March, 2015.
Thomas Andrukonis,
Acting Director, Office of Exporter Services.
[FR Doc. 2015-07640 Filed 4-1-15; 8:45 am]
BILLING CODE CODE P