[Federal Register Volume 69, Number 142 (Monday, July 26, 2004)]
[Notices]
[Pages 44563-44564]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-16589]


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DEPARTMENT OF STATE

[Public Notice 4769]


Bureau of Political-Military Affairs; Rescission of Debarment and 
Reinstatement of Eligibility To Apply for Export/Retransfer 
Authorizations Pursuant to Section 38(g)(4) of the Arms Export Control 
Act for Fuchs Electronics (Pty) Ltd

AGENCY: Department of State.

ACTION: Notice.

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SUMMARY: Notice is hereby given that the Department of State has fully 
rescinded the statutory debarment against Fuchs Electronics (Pty) Ltd.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 section 38(g)(4) of the Arms Export Control 
Act (AECA) (22 U.S.C. 2778) and section 127.11 of the International 
Traffic in Arms Regulations (ITAR) (22 CFR parts 120-130).

DATES: Effective July 14, 2004.

FOR FURTHER INFORMATION CONTACT: Robert W. Maggi, Managing Director, 
Directorate of Defense Trade Controls, Bureau of Political-Military 
Affairs, Department of State (202) 663-2700.

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.
    The Department of State implemented a policy of denial against 
Fuchs on June 8, 1994, after an indictment returned in the U.S. 
District Court for the Eastern District of Pennsylvania charged Fuchs 
with violating and conspiring to violate the AECA (see 59 FR 33811, 
June 30, 1994).
    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 statutorily debarred

[[Page 44564]]

Fuchs, including the Fuchs Electronics Division of Reunert Limited 
effective February 27, 1997 (see 62 FR 13933, March 24, 1997).
    A Federal Register notice was published on March 4, 1998 (63 FR 
10672) which temporarily suspended the statutory debarment against 
Fuchs. The Consent Agreement explicitly provided that if the compliance 
programs or any other parts of the agreement were not fully adhered to, 
debarment could be re-imposed. The Agreement also stated that the 
company would establish an internal compliance program and would 
provide an amount of money equivalent to suspended civil fines to the 
South African Government to support the effective implementation of its 
national export control regime.
    Section 38(g)(4) of the AECA permits rescission of debarment after 
consultation with the Secretary of the Treasury and 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.
    The Department of State has determined that Fuchs (Pty) Ltd has 
taken appropriate steps to address the causes of the violations and 
mitigate any law enforcement concerns. Therefore, in accordance with 
section 38(g)(4) of the AECA and section 127.11 of the ITAR, effective 
July 14, 2004, the debarment against Fuchs, including the Fuchs 
Electronics Division of Reunert Limited, is rescinded. The effect of 
this notice is that Fuchs, and any divisions, subsidiaries, associated 
companies, affiliated persons, and successor entities may participate 
without prejudice 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: July 14, 2004.
Lincoln P. Bloomfield, Jr.,
Assistant Secretary, Bureau of Political-Military Affairs, Department 
of State.
[FR Doc. 04-16589 Filed 7-23-04; 8:45 am]
BILLING CODE 4710-25-P