[Federal Register Volume 67, Number 43 (Tuesday, March 5, 2002)]
[Notices]
[Pages 10033-10034]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-5202]


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DEPARTMENT OF STATE

[Public Notice 3935]


Bureau of Political-Military Affairs; Statutory Debarment Under 
the International Traffic in Arms Regulations

AGENCY: Department of State.

ACTION: Notice.

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SUMMARY: Notice is hereby given that the Department of State has 
imposed statutory debarment pursuant to Sec. 127.7(c) of the 
International Traffic in Arms Regulations (``ITAR'') (22 CFR 120 to 
130) on persons convicted of violating or conspiring to violate section 
38 of the Arms Export Control Act (``AECA'') (22 U.S.C. 2778).

EFFECTIVE DATE: Date of conviction as specified for each person.

[[Page 10034]]


FOR FURTHER INFORMATION CONTACT: David Trimble, Chief, Compliance 
Division, Office of Defense Trade Controls, Bureau of Political-
Military Affairs, Department of State (202) 633-2700.

SUPPLEMENTARY INFORMATION: Section 38 (g)(4) of the AECA, 22 U.S.C. 
2778, prohibits licenses and other approvals for the export of defense 
articles or 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.
    In implementing this section of the AECA, the Assistant Secretary 
of State for Political-Military Affairs is authorized by Sec. 127.7 of 
the ITAR to prohibit any person who has been convicted of violating or 
conspiring to violate the AECA from participating directly or 
indirectly in the export of defense articles, including technical data 
or in the furnishing of defense services for which a license or 
approval is required. This prohibition is referred to as ``statutory 
debarment''.
    Statutory debarment is based solely upon conviction in a criminal 
proceeding, conducted by a United States court, and as such the 
administrative debarment proceedings outlined in part 128 of the ITAR 
are not applicable.
    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 section 38(g)(4) of the AECA and in accordance 
with section 127.11(b) of the ITAR. Unless licensing privileges are 
reinstated, the person/entity will remain debarred.
    Department of State policy permits debarred persons to apply to the 
Director of the Office of Defense Trade Controls for an exception from 
the period of debarment beginning one year after the date of the 
debarment, in accordance with section 38(g)(4)(A) of the AECA and 
Sec. 127.11(b) of the ITAR. 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.
    Debarred persons are generally ineligible to participate in 
activity regulated under the ITAR (see e.g., sections 120.1(c) and (d), 
126.7, 127.1(c), and 127.11(a)). 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 Arms Control and International 
Security 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, in accordance 
with 22 CFR 127.7(d) and 128.13(a).
    Pursuant to section 38 of the AECA and section 127.7 of the ITAR, 
the following persons have been statutorily debarred by the Assistant 
Secretary of State for Political-Military Affairs for a period of three 
years following their conviction for AECA:
    (1) A & C International Trade, Inc., April 13, 2000, U.S. District 
Court of Washington, D.C., Docket # 99-CR-21-ALL.
    (2) John Raymond Thompson, October 28, 1999, U.S. District Court, 
Central District of California, Western Division, Docket # 98-CR-708-
ALL.
    (3) Daniel A. Malloy, March 4, 1999, U.S. District Court of Newark, 
New Jersey, Docket # 98-CR-177-ALL.
    (4) Shalom Shaphyr, October 4, 1999, U.S. District Court, Eastern 
District of Virginia (Alexandria), Docket # 99-CR-288-ALL.
    (5) Siraj International, Inc., February 17, 2000, U.S. District 
Court, Eastern District of Wisconsin (Milwaukee), Docket # 98-CR-189-
ALL.
    (6) Gia An Du a.k.a. Anthony Huynh, a.k.a. Simon Du, a.k.a. Gia 
Simon Du, March 2, 1999, U.S. District Court, District of Maryland 
(Baltimore), Docket #98-CR-462-ALL.
    (7) Michael Nathan Kitundu, November 10, 1999, U.S. District Court, 
Eastern District of Virginia (Alexandria), Docket # 99-CR-278-ALL.
    (8) Morris Rothenberg & Son, Inc. d.b.a. Rothco, July 19, 1999, 
U.S. District Court, Eastern District of New York (Uniondale), Docket # 
99-CR-564-ALL.
    (9) Far East Trading Company, Inc. a.k.a. FETCO, Inc., U.S. 
District Court, Eastern District of Virginia (Alexandria) Docket # 01-
CR-119-ALL.
    This notice is provided in order to make the public aware that the 
persons listed above are prohibited from participating directly or 
indirectly in any brokering activities and in any export from or 
temporary import into the United States of defense articles, related 
technical data, or defense services in all situations covered by the 
ITAR. Specific case information may be obtained from the Office of the 
Clerk for each respective US District Court, citing the court docket 
number where provided.
    Exceptions may be made to this denial policy on a case-by-case 
basis at the discretion of the Office of Defense Trade Controls 
pursuant to 22 CFR 126.3. However, such an exception would be granted 
only after a full review of all circumstances, paying particular 
attention to the following factors: whether an exception is warranted 
by overriding U.S. foreign policy or national security interest; 
whether an exception would further law enforcement concerns which are 
not inconsistent with the foreign policy or national security interests 
of the United States; or whether other compelling circumstances exist 
which are not inconsistent with the foreign policy or national security 
interests of the United States, and which do not conflict with law 
enforcement concerns.
    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 affair function is discretionary, it is 
excluded from review under the Administrative Procedure Act.

    Dated: January 3, 2002.
William J. Lowell,
Director, Office of Defense Trade Controls, Bureau of Political-
Military Affairs, Department of State.
[FR Doc. 02-5202 Filed 3-4-02; 8:45 am]
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