[Federal Register Volume 72, Number 175 (Tuesday, September 11, 2007)]
[Notices]
[Pages 51884-51885]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-17902]


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DEPARTMENT OF STATE

[Public Notice 5932]


Reinstatement of Statutory Debarment Under the International 
Traffic in Arms Regulations

ACTION: Notice.

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SUMMARY: Notice is hereby given that the Department of State has lifted 
the statutory debarment against Equipment & Supply, Inc. (ESI) pursuant 
to Section 38 (g)(4) of the Arms Export Control Act (AECA) (22 U.S.C. 
2778).

DATES: Effective Date: Effective July 30, 2007.

FOR FURTHER INFORMATION CONTACT: David Trimble, Director, Office of 
Defense Trade Controls Compliance, Bureau of Political-Military 
Affairs, Department of State (202) 663-2477.

[[Page 51885]]


SUPPLEMENTARY INFORMATION: Section 38(g)(4) of the AECA (22 U.S.C. 
2778) and Section 127.11 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 the AECA and certain other U.S. 
criminal statutes enumerated at Section 38(g)(1)(A) of the AECA and 
Section 120.27 of the ITAR. A person convicted of violating the AECA is 
also subject to statutory debarment under Section 127.7 of the ITAR.
    In August 2004, ESI was convicted of one count of violating Section 
38 of the AECA and the ITAR. Mr. Andrew Adams, then president of ESI, 
separately pled guilty to one count of violating 18 U.S.C. Section 1361 
by attempting to commit depredation against property manufactured for 
the United States. Count one of Mr. Adams' indictment (02-CR-262) 
alleges that he attempted to export a defense article specifically 
designed or modified for use in the S-65 Sikorsky military helicopter. 
Subsequently, the Department of State statutorily debarred ESI (see 70 
FR 189, September 30, 2005). Because Mr. Adams is affiliated with the 
debarred entity, the presumption of denial for licenses or other State 
authorizations was applied to him as well.
    Section 38(g)(4) of the AECA permits termination of debarment after 
consultation with the other appropriate U.S. agencies 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 ESI 
has taken appropriate steps to address the causes of the violations and 
to mitigate any law enforcement concerns. Therefore, in accordance with 
Section 38(g)(4) of the AECA, the debarment against ESI was rescinded, 
effective July 30, 2007. The presumption of denial for licenses or 
other State authorizations applied to Mr. Adams has also been lifted. 
The effect of this notice is that ESI and Mr. Adams may participate 
without prejudice in the export of defense articles and defense 
services subject to Section 38 of the AECA and the ITAR.

    Dated: August 22, 2007.
Stephen D. Mull,
Acting Assistant Secretary of State, Bureau of Political-Military 
Affairs Department of State.
 [FR Doc. E7-17902 Filed 9-10-07; 8:45 am]
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