[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