```

[Federal Register: February 22, 2010 (Volume 75, Number 34)]
[Notices]               
[Page 7650]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr22fe10-102]                         


[[Page 7650]]

-----------------------------------------------------------------------

DEPARTMENT OF STATE

[Public Notice 6900]

 
Termination of Ineligible Status and Statutory Debarment Pursuant 
to Section 38(g)(4) of the Arms Export Control Act and Section 127.7 of 
the International Traffic in Arms Regulations for ITT Corporation

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: Notice is hereby given that the Department of State has 
terminated the ineligible status and statutory debarment of ITT 
Corporation, pursuant to section 38(g)(4) of the Arms Export Control 
Act (AECA) (22 U.S.C. 2778) and section 127.7 of the International 
Traffic in Arms Regulations (ITAR).

DATES: Effective Date: February 4, 2010.

FOR FURTHER INFORMATION CONTACT: Lisa V. Studtmann, Director, Office of 
Defense Trade Controls Compliance, Directorate of Defense Trade 
Controls, Bureau of Political-Military Affairs, Department of State 
(202) 663-2477.

SUPPLEMENTARY INFORMATION: Section 38(g)(4) of the AECA and section 
127.11 of the ITAR prohibit the issuance of export licenses or other 
approvals to persons if those persons, or any party to the export, have 
been convicted of violating the AECA and certain other U.S. criminal 
statutes enumerated at section 38(g)(1) of the AECA and section 120.27 
of the ITAR. Such individuals are considered ineligible in accordance 
with section 120.1 of the ITAR. Also, persons convicted of violating 
the AECA are subject to statutory debarment under section 127.7 of the 
ITAR.
    In March 2007, ITT Corporation pleaded guilty to violating the AECA 
(U.S. District Court, Western District of Virginia, Case 7:07-
cr-00022-sgw). Based on this plea, ITT Corporation was ineligible in 
accordance with section 120.1 of the ITAR and was statutorily debarred 
pursuant to section 127.7 of the ITAR. After a full review of the 
circumstances, finding that appropriate steps were taken to mitigate 
any law enforcement concerns, the Department decided to except out all 
ITT business units but the culpable ITT entity responsible for the 
violations resulting in the aforementioned plea, ITT-Night Vision 
Division. ITT-Night Vision Division was thus prohibited from 
participating directly or indirectly in exports of defense articles and 
defense services. Notice of debarment was published in the Federal 
Register (72 Federal Register 18310, April 11, 2007). Subsequently, in 
December 2007 ITT Corporation entered into a consent agreement with the 
State Department which detailed penalties and remedial compliance 
measures to be completed in order to be considered for reinstatement 
following a minimum period of one year debarment.
    In accordance with section 38(g)(4) of the AECA and section 127.7 
of the ITAR, the ineligible status and statutory debarment may be 
terminated after consultation with other appropriate U.S. agencies, 
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. The Department of State has 
reviewed the circumstances and consulted with other appropriate U.S. 
agencies, and has determined that ITT Corporation has taken appropriate 
steps to address the causes of the violations and to mitigate any law 
enforcement concerns. Therefore, in accordance with section 38(g)(4) of 
the AECA and section 127.7 of the ITAR, ITT Corporation is no longer 
ineligible and the statutory debarment is rescinded, effective February 
4, 2010.

    Dated: February 4, 2010.
Andrew J. Shapiro,
Assistant Secretary, Bureau of Political-Military Affairs, Department 
of State.
[FR Doc. 2010-3413 Filed 2-19-10; 8:45 am]
BILLING CODE 4710-25-P
```