[Federal Register Volume 61, Number 114 (Wednesday, June 12, 1996)]
[Notices]
[Pages 29784-29785]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-14826]



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DEPARTMENT OF STATE

Office of Defense Trade Controls
[Public Notice 2395]


Statutory Debarment Under the International Traffic in Arms 
Regulations

AGENCY: Office of Defense Trade Controls, Department of State.

ACTION: Notice.

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SUMMARY: Notice is hereby given of which persons have been statutorily 
debarred pursuant to Sec. 127.7(c) of the International Traffic in Arms 
Regulations (ITAR) (22 CFR Parts 120-130).

EFFECTIVE DATE: June 12, 1996.

FOR FURTHER INFORMATION CONTACT:
Philip S. Rhoads, Chief, Compliance Enforcement Branch, Office of 
Defense Trade Controls, Department of State (703-875-6650).

SUPPLEMENTARY INFORMATION: Section 38(g)(4)(A) of the Arms Export 
Control Act (AECA), 22 U.S.C. Sec. 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 C.F.R. Sec. 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 statue permits certain limited exceptions to this 
prohibition to be made on a case-by-case basis. 22 U.S.C. 
Sec. 2778(g)(4).
    The ITAR, Section 127.7, authorizes the Assistant Secretary of 
State for Political-Military Affairs to prohibit certain persons 
convicted of violating, 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 C.F.R. Sec. 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. Sec. 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 Sec. 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. Sec. 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. Sec. 2778(g)(4)(A), and the ITAR, 
22 CFR Sec. 127.7, the Assistant Secretary for Political-Military 
Affairs has statutorily debarred three persons who have been convicted 
of conspiring to violate or violating the AECA.
    Teledyne Industries, Inc. d/b/a Teledyne Wah Chang Albany has been 
debarred for a one-year period from the date of its most recent 
conviction pursuant to a Consent Agreement between the Department of 
State and Teledyne Industries, Inc. d/b/a Teledyne Wah Chang Albany. 
All other persons listed below have been debarred for a three-year 
period following the date of their conviction, and have been so 
notified by a letter from the Office of Defense Trade Controls. 
Pursuant to ITAR, Section 127.7(c), the names of these persons, their 
offense, date(s) of conviction and court(s) of conviction are hereby 
being published in the Federal Register. Anyone who requires additional 
information to determine whether a person has been debarred should 
contact the Office of Defense Trade Controls.
    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.
    In accordance with these authorities the following persons are 
debarred for a period of three years following their conviction for 
conspiring to violate or violating the AECA (name/address/offense/
conviction date/court citation):

1. Teledyne Industries, Inc., d/b/a Teledyne Wah Chang Albany, P.O. 
Box 460, 1600

[[Page 29785]]

N.E. Old Salem Road, Albany, OR 97231-0460, 18 U.S.C. Sec. 371 
(conspiracy to violate 22 U.S.C. Sec. 2778) January 30, 1995, United 
States v. Teledyne Industries, et al., U.S. District Court, District 
of Columbia, Criminal Docket No. CR-94-0286
2. Teledyne Industries, Inc., d/b/a Teledyne Wah Chang Albany, P.O. 
Box 460, 1600 N.E. Old Salem Road, Albany, OR 97231-0460, 18 U.S.C. 
Sec. 371 (conspiracy to violate 22 U.S.C. Sec. 2778) January 26, 
1995, United States v. Teledyne Industries, et al., U.S. District 
Court, Southern District of Florida, Criminal Docket No. 93-241-CR-
Highsmith
3. Swissco Management Group. Inc., 15485 Eagle Nest Lane, #210, 
Miami Lakes, FL 33014, 18 U.S.C. Sec. 371 (conspiracy to violate 22 
U.S.C. Sec. 2778), August 7, 1995, United States v. Teledyne 
Industries, et al., U.S. District Court, Southern District of 
Florida, Criminal Docket No. 93-241-CR-Highsmith
4. Edward A. Johnson, 1655 Ferguson Drive, N.W., Albany, OR 18 
U.S.C. Sec. 371 (conspiracy to violate 22 U.S.C. Sec. 2778), and 22 
U.S.C. Sec. 2778 (violating the AECA), August 7, 1995, United States 
v. Teledyne Industries, et al., U.S. District Court, Southern 
District of Florida, Criminal Docket No. 93-241-CR-Highsmith

    Dated: May 6, 1996.
Michael T. Dixon,
Acting Director, Office of Defense Trade Controls, Bureau of Political-
Military Affairs, Department of State.
[FR Doc. 96-14826 Filed 6-11-96; 8:45 am]
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