[Federal Register Volume 63, Number 42 (Wednesday, March 4, 1998)]
[Notices]
[Page 10672]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-5716]



[[Page 10672]]

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DEPARTMENT OF STATE

[Public Notice 2753]


Office of Defense Trade Controls; Reinstatement of Eligibility To 
Apply for Export/Retransfer Authorizations Pursuant to Section 38(g)(4) 
of the Arms Export Control Act

AGENCY: Department of State.

ACTION: Notice.

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SUMMARY: Notice is hereby given that the Department of State has 
suspended its statutory debarment against Fuchs Electronics (Pty) Ltd. 
(Fuchs), the Fuchs Electronics Division of Reunert Limited, and, any 
divisions, subsidiaries, associated companies, affiliated persons, and 
successor entities pursuant to Section 38(g)(4) of the Arms Export 
Control Act (AECA) (22 U.S.C. 2778) and Sec. 127.11(b) of the 
International Traffic in Arms Regulations (ITAR) (22 CFR Parts 120-
130).

EFFECTIVE DATE: February 27, 1998.

FOR FURTHER INFORMATION CONTACT: Philip S. Rhoads, Chief, Compliance 
and Enforcement Branch, Office of Defense Trade Controls, Department of 
State (703-875-6644).

SUPPLEMENTARY INFORMATION: Section 38(g)(4) of the AECA and Section 
127.7 of the ITAR prohibit the issuance of export licenses or other 
approvals to a person, or any party to the export, who has been 
convicted of violating certain U.S. criminal statutes enumerated at 
Section 38(g)(1)(A) of the AECA and Section 120.27 of the ITAR. The 
term ``person'' 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 term 
``party to the export'' means the president, the chief executive 
officer, and any other senior officers of the license applicant; and 
any consignee or end-user of any item to be exported.
    Fuchs pleaded guilty on February 27, 1997, to violating the AECA. 
Pursuant to a Consent Agreement between Fuchs and the Department of 
State, and an Order signed by the Assistant Secretary for Political-
Military Affairs, the Department of State imposed statutory debarment 
against Fuchs, including the Fuchs Electronics Division of Reunert 
Limited effective February 27, 1997 (see 62 Federal Register 13933, 
March 24, 1997).
    Section 38(g)(4) of the AECA permits reinstatement of eligibility 
to apply for export/retransfer authorizations on a case-by-case basis 
after consultation with the Secretary of the Treasury and after a 
thorough review of the circumstances surrounding the conviction or 
ineligibility to export and a finding that appropriate steps have been 
taken to mitigate any law enforcement concerns.
    In accordance with these authorities, effective February 27, 1998, 
the debarment against Fuchs, including the Fuchs Electronics Division 
of Reunert Limited, has been suspended. The effect of this notice is 
that Fuchs, the Fuchs Electronic Division of Reunert Limited, and, any 
divisions, subsidiaries, associated companies, affiliated persons, and 
successor entities may participate in the export or transfer of defense 
articles, related technical data, and defense services subject to 
Section 38 of the AECA and the ITAR.

    Dated: February 27, 1998.
William J. Lowell,
Director, Office of Defense Trade Controls, Bureau of Political-
Military Affairs, U.S. Department of State.
[FR Doc. 98-5716 Filed 3-3-98; 8:45 am]
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