[Federal Register Volume 59, Number 25 (Monday, February 7, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-2630]


[[Page Unknown]]

[Federal Register: February 7, 1994]


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DEPARTMENT OF STATE

Office of Defense Trade Controls
[Public Notice 1944]

 

Statutory Debarment Under the International Traffic in Arms 
Regulations

AGENCY: 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: February 7, 1994.

FOR FURTHER INFORMATION CONTACT:
Clyde G. Bryant Jr., Chief, Compliance and 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. 2778, prohibits export licenses 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 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 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, Sec. 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. 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 the most recent 
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 Sec. 127.7(d).
    Department of State policy permits debarred persons to apply for an 
exception one year after the date of the most recent debarment, in 
accordance with the AECA, 22 U.S.C. 2778(g)(4)(A), and the ITAR, 
Sec. 127.7. This request is made to the Director of the Office of 
Defense Trade Controls. Any decision to grant an exception can be made 
only after the statutory requirements under section 38(g)(4) of the 
AECA have been satisfied. If the exception 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 four persons who have been convicted of conspiring 
to violate and violating the AECA.
    These persons were previously debarred as a result of their 
convictions in U.S. v. Japan Aviation Electronics Industry Ltd, et al., 
U.S. District Court, District of Columbia, Criminal No. 91-516 (58 FR 
50382-50383, September 27, 1993). Due to their convictions in U.S. v. 
Aero Systems, Inc., et al., U.S. District Court, District of Columbia, 
Criminal No. 92-267, these same four persons have again been debarred 
for a three-year period following the date of their convictions, and 
have been so notified by a letter from the Office of Defense Trade 
Controls. Pursuant to ITAR, Sec. 127.7(c), the names of these persons, 
their offense, date of conviction(s) and court of conviction(s) 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 
exercising 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 most recent 
conviction for conspiring to violate and violating the AECA (name/
business address/offense/conviction date/court citation):

1. Aero Systems, Inc., 5415 West 36th Street, P.O. Box 52-2221, Miami, 
Florida 33152-2221, 18 U.S.C. 371 (conspiracy to violate 22 U.S.C. 
2778) and 22 U.S.C. 2778, July 5, 1993, United States v. Aero Systems, 
Inc., et al., U.S. District Court, District of Columbia, Criminal 
Docket No. 92-267-1
2. Aero Systems, Aviation Corporation, 5415 West 36th Street, P.O. Box 
52-2221, Miami, Florida 33152-2221, 18 U.S.C. 371 (conspiracy to 
violate 22 U.S.C. 2778) and 22 U.S.C. 2778, July 5, 1993, United States 
v. Aero Systems, Inc., et al., U.S. District Court, District of 
Columbia, Criminal Docket No. 92-267-2
3. Hierax Company Ltd., Price Waterhouse, 22nd Floor, Prince's 
Building, Hong Kong, 18 U.S.C. 371 (conspiracy to violate 22 U.S.C. 
2778) and 22 U.S.C. 2778, July 5, 1993, United States v. Aero Systems, 
Inc., et al., U.S. District Court, District of Columbia, Criminal 
Docket No. 92-267-3
4. Aero Systems Pte. Ltd., 37 Jalan Pemimpin, Malaysia 2057, 18 U.S.C. 
371 (conspiracy to violate 22 U.S.C. 2778) and 22 U.S.C. 2778, July 5, 
1993, United States v. Aero Systems, Inc., et al., U.S. District Court, 
District of Columbia, Criminal Docket No. 92-267-4

    Dated: January 26, 1994.
William B. Robinson,
Director, Office of Defense Trade Controls, Bureau of Political-
Military Affairs, Department of State.
[FR Doc. 94-2630 Filed 2-4-94; 8:45 am]
BILLING CODE 4710-25-M