[Federal Register Volume 69, Number 36 (Tuesday, February 24, 2004)]
[Notices]
[Pages 8511-8512]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-4003]


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DEPARTMENT OF STATE

[Public Notice 4628]


Bureau of Political-Military Affairs; Administrative Debarments 
Involving Kam-Tech Systems, Ltd. and David Menashe

AGENCY: Department of State.

ACTION: Notice.

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SUMMARY: Notice is hereby given that the Department of State has 
imposed administrative debarment pursuant to section 127.7(a) and 
(b)(2) of the International Traffic in Arms Regulations (``ITAR'') (22 
CFR parts 120 to 130) on persons convicted of a violation of such as to 
provide a reasonable basis for the Directorate of Defense Trade 
Controls to believe that the violators cannot be relied upon to comply 
with the Arms Export Control Act (``AECA'') (22 U.S.C. 2778) or the 
ITAR in the future and which violation was established in accordance 
with part 128 of the ITAR.

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

FOR FURTHER INFORMATION CONTACT: David Trimble, Director, Directorate 
of Defense Trade Controls Compliance, Bureau of Political-Military 
Affairs, Department of State (202) 663-2700.

SUPPLEMENTARY INFORMATION: Section 127.7 of the ITAR authorizes the 
Assistant Secretary of State for Political-Military Affairs to issue an 
Order for Administrative Debarment against any person who has been 
found pursuant to Part 128 of the ITAR to have committed a violation of 
the AECA or the ITAR of such character as to provide a reasonable basis 
for the Office of Defense Trade Controls Compliance to believe that the 
violator cannot be relied upon to comply with the AECA or ITAR in the 
future. Such an Order of Debarment prohibits the subject from 
participating directly or indirectly in the export of defense articles 
or defense services for which a license or approval is required by the 
ITAR.
    The period for debarment will normally be three years from the date 
of Order. At the end of the debarment period, licensing privileges may 
be reinstated only at the request of the debarred person following the 
necessary Departmental review. Unless licensing privileges are 
reinstated, the person/entity will remain debarred.
    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 debarred person.
    Pursuant to section 38 of the AECA and section 127.7(a) and (b)(2) 
of the ITAR, the following persons have been administratively debarred 
by the Assistant Secretary of State for Political-Military Affairs for 
a period of three years effective the date the Order is signed by 
Assistant Secretary of State for Political-Military Affairs:
    (1) Kam-Tech Systems, Ltd. (``Kam-Tech''), an Israeli company 
located in Tel Aviv, Israel, and
    (2) David Menashe (``Menashe''), owner and business manager of Kam-
Tech.
    Kam-Tech and Menashe pleaded guilty and, on June 18, 2003, were 
convicted of making false statements to the Bureau of Customs and 
Border Protection, U.S. Department of Homeland Security (formerly 
United States Customs Service (USCS)) in violation of 18 U.S.C. 1001. 
(U.S. District Court, Central District of California (Western 
Division), Docket  03-CR-139-ALL.) Under the plea agreements 
entered in connection with the prosecution, Kam-Tech and Menashe agreed 
to a statement of facts that they caused a package to be shipped to the 
United States bearing an air waybill that falsely stated the contents 
consisted of ``samples for evaluation'' and were valued at $245, when 
the defendants knew the package contained an AIM-9 Missile Seeker 
Section valued at $19,600 and that this defense article was to be 
transshipped to

[[Page 8512]]

China. They further agreed to administrative debarment under section 
127.7(a) and (b)(2) of the ITAR on the basis of the aforementioned 
statement of facts and to waive all rights under Part 128 of the ITAR, 
including the provision for issuance of a charging letter and all 
rights to seek administrative or judicial consideration or review or 
otherwise to contest the validity of the Order of Debarment. The 
Directorate of Defense Trade Controls believes that the actions of Kam-
Tech and Menashe support a finding of a violation of section 127 of the 
ITAR of such character that neither could be relied upon to comply with 
the ITAR in the future. Furthermore, as set forth above, such violation 
was established in accordance with part 128 of the ITAR.
    As noted above, at the end of the three-year period, the above 
named persons will remain debarred unless licensing privileges are 
reinstated.
    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 U.S. 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 Directorate of Defense Trade Controls. 
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 that are consistent with the foreign 
policy or national security interests of the United States; or whether 
other compelling circumstances exist that are consistent with the 
foreign policy or national security interests of the United States, and 
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 affairs function is discretionary, it is 
excluded from review under the Administrative Procedure Act.

    Dated: February 1, 2004.
Lincoln P. Bloomfield, Jr.,
Assistant Secretary, Bureau of Political-Military Affairs, Department 
of State.
[FR Doc. 04-4003 Filed 2-23-04; 8:45 am]
BILLING CODE 4710-25-P