[Federal Register Volume 75, Number 164 (Wednesday, August 25, 2010)]
[Page 52385]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-21174]



[Public Notice 7128]

Bureau of Political-Military Affairs; Lifting of Policy of Denial 
Regarding ITAR Regulated Activities of Xe Services LLC, Formerly EP 
Investments, LLC (a/k/a Blackwater)

ACTION: Notice.


SUMMARY: Notice is hereby given that the Department of State is lifting 
the policy of denial regarding Xe Services LLC, formerly EP 
Investments, LLC (a/k/a Blackwater) imposed on December 18, 2008 (73 FR 
77099) pursuant to section 38 of the Arms Export Control Act (AECA) (22 
U.S.C. 2778) and section 126.7 of the International Traffic in Arms 
Regulations (ITAR).

DATES:  Effective Date: August 17, 2010.

FOR FURTHER INFORMATION CONTACT: Lisa V. Studtmann, Director, Office of 
Defense Trade Controls Compliance, Bureau of Political-Military 
Affairs, Department of State, (202) 663-2980.

SUPPLEMENTARY INFORMATION: Section 126.7 of the ITAR provides that any 
application for an export license or other approval under the ITAR may 
be disapproved, and any license or other approval or exemption granted 
may be revoked, suspended, or amended without prior notice whenever, 
among other things, the Department of State believes that 22 U.S.C. 
2778, any regulation contained in the ITAR, or the terms of any U.S. 
Government export authorization (including the terms of a manufacturing 
license or technical assistance agreement, or export authorization 
granted pursuant to the Export Administration Act, as amended) has been 
violated by any party to the export or other person having a 
significant interest in the transaction; or whenever the Department of 
State deems such action to be in furtherance of world peace, the 
national security or the foreign policy of the United States, or is 
otherwise advisable.
    On December 2, 2008, the Department of State placed EP Investments, 
LLC, now Xe Services LLC (a/k/a Blackwater) (hereafter referred to as 
Xe), including its subsidiaries or associated companies, under a policy 
of denial to ensure that Xe is both capable of and willing to comply 
with the AECA and ITAR.
    The Department of State has determined that Xe has taken 
appropriate steps to address the causes of its ITAR violations, 
identify compliance problems, and resolve alleged violations. Xe 
replaced senior management; established, in October 2008, an 
independent Export Compliance Committee to oversee its remedial 
compliance efforts; improved ITAR compliance procedures; conducted 
various ITAR training; and conducted a targeted ITAR audit to confirm 
the effectiveness of its compliance measures. Xe entered into a civil 
settlement with the Department to resolve outstanding violations, 
institute external compliance oversight, and continue and improve 
compliance measures.
    Therefore, the Department rescinds its denial policy against Xe and 
its subsidiaries and associated companies, effective August 17, 2010.

    Dated: August 18, 2010.
Andrew J. Shapiro,
Assistant Secretary, Bureau of Political-Military Affairs, Department 
of State.
[FR Doc. 2010-21174 Filed 8-24-10; 8:45 am]