[Federal Register Volume 84, Number 42 (Monday, March 4, 2019)]
[Notices]
[Pages 7411-7412]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-03595]


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DEPARTMENT OF STATE

[Public Notice: 10686]


Bureau of Political-Military Affairs; Rescission of Statutory 
Debarment of Rocky Mountain Instrument Company Under the International 
Traffic in Arms Regulations

SUMMARY: Notice is hereby given that the Department of State has 
rescinded the statutory debarment of Rocky Mountain Instrument Company 
included in Federal Register notice of September 8, 2010.

DATES: Rescission as of March 4, 2019.

FOR FURTHER INFORMATION CONTACT: Jae Shin, Director, Office of Defense 
Trade Controls Compliance, Bureau of Political-Military Affairs, 
Department of State (202) 632-2107.

SUPPLEMENTARY INFORMATION: Section 38(g)(4) of the Arms Export Control 
Act (AECA), 22 U.S.C. 2778(g)(4), prohibits the issuance of 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 the AECA and certain other U.S. criminal statues enumerated 
in Sec.  38(g)(1) of the AECA. In addition, Sec.  127.7(b) of the 
International Traffic in Arms Regulations (ITAR) provides for the 
statutory debarment of any person who has been convicted of violating 
or conspiring to violate the AECA. As stated in this provision, it is 
the policy of the Department of State not to consider applications for 
licenses or requests for approvals involving any person who has been 
statutorily debarred. Persons subject to statutory

[[Page 7412]]

debarment are prohibited from participating directly or indirectly in 
any activities that are subject to the ITAR.
    In June 2010, Rocky Mountain Instrument Company (``RMI'') pleaded 
guilty to violating the AECA. On September 8, 2010, the Department 
notified the public of a statutory debarment imposed on RMI pursuant to 
ITAR Sec.  127.7(c) related to RMI's criminal conviction via notice in 
the Federal Register (75 FR 54692). The notice provided that RMI was 
``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.'' 
On May 9, 2016, the Department modified this statutory debarment to 
allow specific exceptions to the debarment of RMI without the 
submission of a transaction exception request as an element of the 
application, available to persons other than RMI but excluding persons 
acting for or on behalf of RMI in contravention of ITAR Sec.  127.1(d).
    In accordance with ITAR Sec.  127.7(b) of the ITAR, reinstatement 
may only be approved after submission of a request by the debarred 
party. In response to such a request from RMI for reinstatement, the 
Department has conducted a thorough review of the circumstances 
surrounding the conviction, and has determined that RMI has taken 
appropriate steps to address the causes of the violations to warrant 
rescission of the notice of statutory debarment of RMI. Therefore, 
pursuant to ITAR Sec.  127.7(b) the Department determines it is no 
longer in the national security and foreign policy interests of the 
United States to maintain the policy as applied to RMI, and the 
Department hereby rescinds the notice of RMI's statutory debarment.
    The Department notes that the Federal Register notice of debarment 
for RMI stated that ``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.'' (75 FR 54693). The Department is no longer 
requiring that export privileges be reinstated pursuant to ITAR Sec.  
127.11 and Sec.  38(g)(4) of the AECA prior to the rescission of 
statutory debarment. This change in policy recognizes that the 
circumstances warranting statutory debarment may be different than 
those warranting the revocation of export privileges. The Department 
may find, as it does in this instance, that the national security and 
foreign policy interests of the United States are not advanced by 
maintaining the Department-imposed ITAR Sec.  127.7(b) prohibition on 
persons convicted of violating or conspiring to violate the AECA from 
``participating directly or indirectly in any activities that are 
subject to [the ITAR]'' and where the debarred person may not meet the 
requirements of ITAR Sec.  127.11(b) (implementing the restrictions of 
Sec.  38(g)(4) of the AECA).
    This notice rescinds the statutory debarment of RMI but does not 
provide notice of reinstatement of export privileges for RMI pursuant 
to the statutory requirements of Sec.  38(g)(4) of the AECA and ITAR 
Sec.  127.11. As required by the statute, the Department may not issue 
a license directly to RMI except as may be determined on a case-by-case 
basis after interagency consultations, a thorough review of the 
circumstances surrounding the conviction, and a finding that 
appropriate steps have been taken to mitigate any law enforcement 
concerns. Any determination by the Department regarding the 
reinstatement of export privileges for RMI will be made in accordance 
with these statutory and regulatory requirements and will be the 
subject of a separate notice. All otherwise eligible persons may engage 
in exports of RMI manufactured defense articles, incorporate RMI 
manufactured items into defense articles for export, or otherwise 
engage in transactions subject to the ITAR without providing prior 
written notification of RMI's involvement as otherwise required by ITAR 
Sec.  127.1(d) and the transaction exception requirements of the 
Federal Register notice of statutory debarment (75 FR 54693).

    Dated: February 4, 2019.
Andrea L. Thompson,
Under Secretary, Arms Control and International Security, Department of 
State.
[FR Doc. 2019-03595 Filed 3-1-19; 8:45 am]
 BILLING CODE 4710-25-P