[Federal Register Volume 77, Number 130 (Friday, July 6, 2012)]
[Notices]
[Pages 40140-40141]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-16578]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF STATE

[Public Notice 7946]


Bureau of Political-Military Affairs; Statutory Debarment of 
Pratt & Whitney Canada Corporation Under the Arms Export Control Act 
and the International Traffic in Arms Regulations

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: Notice is hereby given that the Department of State, acting 
pursuant to section 127.7(c) of the International Traffic in Arms 
Regulations (``ITAR'') (22 CFR Parts 120-130), imposed a

[[Page 40141]]

statutory debarment on Pratt & Whitney Canada Corporation (``P&W 
Canada'') as a result of its conviction for violating section 38 of the 
Arms Export Control Act, as amended, (``AECA'') (22 U.S.C. 2778).

DATES: Effective Date: June 28, 2012.

FOR FURTHER INFORMATION CONTACT: Lisa Aguirre, Director, Office of 
Defense Trade Controls Compliance, Bureau of Political-Military 
Affairs, Department of State (202) 632-2798.

SUPPLEMENTARY INFORMATION: Section 38(g)(4) of the AECA, 22 U.S.C. 
2778(g)(4), prohibits the Department of State from issuing licenses or 
other approvals for the export of defense articles or defense services 
where the applicant, or any party to the export, has been convicted of 
violating certain statutes, including the AECA. The statute permits 
limited exceptions to be made on a case-by-case basis. In implementing 
this provision, Section 127.7 of the ITAR provides for ``statutory 
debarment'' of any person who has been convicted of violating or 
conspiring to violate the AECA. Persons subject to statutory debarment 
are prohibited 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 other approval is required.
    Statutory debarment is based solely upon conviction in a criminal 
proceeding, conducted by a United States Court, and as such the 
administrative debarment procedures outlined in Part 128 of the ITAR 
are not applicable.
    The period for debarment will be determined by the Assistant 
Secretary for Political-Military Affairs based on the underlying nature 
of the violations, but will generally be for three years from the date 
of conviction. Export privileges may be reinstated only at the request 
of the debarred person followed by 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. Unless export privileges are reinstated, however, the 
person remains debarred.
    Department of State policy permits debarred persons to apply to the 
Director, Office of Defense Trade Controls Compliance, for 
reinstatement beginning one year after the date of the debarment. Any 
decision to grant reinstatement can be made only after the statutory 
requirements of Section 38(g)(4) of the AECA have been satisfied.
    Exceptions, also known as transaction exceptions, may be made to 
this debarment determination on a case-by-case basis at the discretion 
of the Assistant Secretary of State for Political-Military Affairs, 
after consulting with the appropriate U.S. agencies. 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 interests; 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 that do 
not conflict with law enforcement concerns. Even if exceptions are 
granted, the debarment continues until subsequent reinstatement.
    Pursuant to Section 38(g)(4) of the AECA and Section 127.7(c) of 
the ITAR, the following person is statutorily debarred: Pratt & Whitney 
Canada Corporation, 1000 boul. Marie-Victorin Longueuil, Quebec, Canada 
J4G 1A1 (and all other Pratt & Whitney Canada Corporation locations); 
U.S. District Court, District of Connecticut; Case No. 3:12CR146(WWE).
    As noted above, at the end of the three-year period following the 
date of this notice, the above named entity remains debarred unless 
export privileges are reinstated. Debarred persons are generally 
ineligible to participate in activity regulated under the ITAR (see 
e.g., sections 120.1(c) and (d), and 127.11(a)). Also, under Section 
127.1(c) of the ITAR, any person who has knowledge that another person 
is subject to debarment or is otherwise ineligible may not, without 
disclosure to and written approval from the Directorate of Defense 
Trade Controls, participate, directly or indirectly, in any export in 
which such ineligible person may benefit therefrom or have a direct or 
indirect interest therein.
    Notwithstanding the information above, based on overriding national 
security and foreign policy concerns and after a thorough review of the 
circumstances surrounding the conviction and a finding that the 
appropriate steps have been taken to mitigate law enforcement concerns, 
the Assistant Secretary for Political-Military Affairs has determined 
to approve specific carve-outs from the statutory debarment of P&W 
Canada for the following categories of authorization requests:
    1. Support of U.S. Government programs;
    2. Support of coalition Operation Enduring Freedom; and
    3. Support of government programs for NATO and Major Non-NATO Ally 
countries.

All requests for authorizations, or use of exemptions, involving P&W 
Canada that fall within the scope of the specific carve-outs will be 
reviewed and action taken by the Directorate of Defense Trade Controls 
in the ordinary course of business. All requests for authorizations 
involving P&W Canada that do not fall within the scope of the carve-
outs must be accompanied by a specific transaction exception request. 
Any use of an exemption involving P&W Canada that does not fall within 
the scope of the carve-outs must be preceded by the approval of a 
transaction exception request by the Department prior to the use of the 
exemption. The decision to grant a transaction exception will be made 
on a case-by-case basis after a full review of all circumstances.
    This notice is provided for purposes of making the public aware 
that the person identified above is prohibited from participating 
directly or indirectly in activities regulated by the ITAR, including 
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 that do not fall 
within the carve-outs to the debarment. Specific criminal case 
information may be obtained from the Office of the Clerk for the U.S. 
District Courts mentioned above and by citing the court case number 
where provided.

    Dated: June 26, 2012.
Andrew J. Shapiro,
Assistant Secretary, Bureau of Political-Military Affairs, Department 
of State.
[FR Doc. 2012-16578 Filed 7-5-12; 8:45 am]
BILLING CODE 4710-25-P