[Federal Register Volume 62, Number 58 (Wednesday, March 26, 1997)]
[Notices]
[Pages 14492-14493]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-7561]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF STATE
[Public Notice 2461]
Office of Defense Trade Controls; Statutory Debarment Under the
International Traffic in Arms Regulations
AGENCY: Department of State.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: Notice is hereby given that Electrodyne Systems Corporation
has
[[Page 14493]]
been statutorily debarred pursuant to Sec. 127.7(c) of the
International Traffic in Arms Regulations (ITAR) (22 CFR Parts 120-
130).
EFFECTIVE DATE: October 16, 1996.
FOR FURTHER INFORMATION CONTACT: Philip S. Rhoads, Chief, Compliance
Enforcement Branch, Office of Defense Trade Controls, Department of
State (703-875-6644, Ext. 3).
SUPPLEMENTARY INFORMATION: Section 38(g)(4)(A) of the Arms Export
Control Act (AECA), 22 U.S.C. 2778, prohibits licenses or other
approvals for the export of defense articles and defense services to be
issued to a person, or any party to the export, who has been convicted
of violating certain U.S. criminal statutes, including the AECA. The
term ``person,'' as defined in 22 CFR 120.14 of the International
Traffic in Arms Regulations (ITAR), means a natural person as well as a
corporation, business association, partnership, society, trust, or any
other entity, organization or group, including governmental entities.
The ITAR, specifically Sec. 126.7(e), defines the term ``party to the
export'' to include the president, the chief executive officer, and
other senior officers and officials of the license applicant; the
freight forwarders or designated exporting agent of the license
applicant; and any consignee or end-user of any item to be exported.
The statute permits certain limited exceptions to this prohibition to
be made on a case-by-case basis. 22 U.S.C. 2778(g)(4).
The ITAR, Section 127.7, authorizes the Assistant Secretary of
State for Political-Military Affairs to prohibit certain persons
convicted of volating, or conspiring to violate, the AECA, from
participating directly or indirectly in the export of defense articles
or in the furnishing of defense services for which a license or
approval is required. Such a prohibition is referred to as a
``statutory debarment,'' which may be imposed on the basis of judicial
proceedings that resulted in a conviction for violating, or of
conspiring to violate, the AECA. See 22 CFR 127.7(c). The period for
debarment will normally be three years from the date of conviction. At
the end of the debarment period, licensing privileges may be reinstated
at the request of the debarred person following the necessary
interagency consultations, after a thorough review of the circumstances
surrounding the conviction, and a finding that appropriate steps have
been taken to mitigate any law enforcement concerns, as required by the
AECA, 22 U.S.C. 2778(g)(4).
Statutory debarment is based solely upon a conviction in a criminal
proceeding, conducted by a United States court. Thus, the
administrative debarment procedures, as outlined in the ITAR, 22 CFR
part 128, are not applicable in such cases.
The Department of State will not consider applications for licenses
or requests for approvals that involve any person or any party to the
export who has been convicted of violating, or of conspiring to
violate, the AECA during the period of statutory debarment. Persons who
have been statutorily debarred may appeal to the Under Secretary for
International Security Affairs for reconsideration of the ineligibility
determination. A request for reconsideration must be submitted in
writing within 30 days after a person has been informed of the adverse
decision. 22 CFR 127.7(d).
The Department of State policy permits debarred persons to apply
for reinstatement of export privileges one year after the date of the
debarment, in accordance with the AECA, 22 U.S.C 2778(g)(4)(A), and the
ITAR, Section 127.7. A reinstatement request is made to the Director of
the Office of Defense Trade Controls. Any decision to reinstate export
privileges can be made only after the statutory requirements under
Section 38(g)(4) of the AECA have been satisfied through a process
administered by the Office of Defense Trade Controls. If reinstatement
is granted, the debarment will be suspended.
Pursuant to the AECA, 22 U.S.C. 2778(g)(4)(A), and the ITAR, 22 CFR
127.7, the Assistant Secretary for Political-Military Affairs has
statutorily debarred Electrodyne Systems Corporation, who has been
convicted of conspiring to violate or violating the AECA. On October
16, 1996, Electrodyne Systems Corporation pled guilty to one count of
violating section 38 of the AECA.
This notice involves a foreign affairs function of the United
States encompassed within the meaning of the military and foreign
affairs exclusion of the Administrative Procedure Act. Because the
exercise of this foreign affairs function is discretionary, it is
excluded from review under the Administrative Procedure Act.
Dated: October 16, 1996.
Thomas E. McNamara,
Assistant Secretary, Bureau of Political-Military Affairs, Department
of State.
[FR Doc. 97-7561 Filed 3-25-97; 8:45 am]
BILLING CODE 4710-25-M
