[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