[Federal Register Volume 86, Number 188 (Friday, October 1, 2021)]
[Notices]
[Page 54502]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-21372]
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DEPARTMENT OF STATE
[Public Notice: 11546]
Bureau of Political-Military Affairs; Rescission of Statutory
Debarment of Dennis Haag Under the International Traffic in Arms
Regulations
ACTION: Notice.
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SUMMARY: Notice is hereby given that the Department of State has
rescinded the statutory debarment of Dennis Haag included in Federal
Register notice of April 25, 2018.
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 Sec. 38 of the AECA or 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 not to consider
applications for licenses or requests for approvals involving any
person who has been statutorily debarred. Persons subject to statutory
debarment are prohibited from participating directly or indirectly in
any activities that are subject to the ITAR.
Mr. Dennis Haag pleaded guilty to violating Sec. 38 of the AECA,
and the Department notified the public of the resulting statutory
debarment imposed pursuant to ITAR 127.7(c) via notice on April 25,
2018 (83 FR 18112). The notice provided that he and other debarred
persons were ``prohibited from participating directly or indirectly in
activities that are regulated by the ITAR.''
In accordance with ITAR 127.7(b), reinstatement may only be
approved after submission of a request by the debarred party. In
response to such a request from the debarred person for reinstatement,
the Department has conducted a thorough review of the circumstances
surrounding his conviction and has determined that he has taken
appropriate steps to address the causes of the violations sufficient to
warrant rescission of his statutory debarment. Therefore, pursuant to
ITAR 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 Mr. Dennis Haag, and the Department
hereby rescinds the notice of his statutory debarment.
The Department notes that the Federal Register notice of debarment
for the debarred party stated that ``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.'' (See 83 FR 18112). The Department is no longer
requiring that export privileges be reinstated pursuant to ITAR 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 from 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 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
127.11(b) (implementing the restrictions of Sec. 38(g)(4) of the
AECA).
This notice rescinds the statutory debarment of Dennis Haag but
does not provide notice of reinstatement of export privileges pursuant
to the statutory requirements of Sec. 38(g)(4) of the AECA and ITAR
127.11. As required by the statute, the Department may not issue a
license directly to any debarred persons 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 with respect to any debarred persons
will be made in accordance with the statutory and regulatory
requirements and will be the subject of a separate notice. All
otherwise eligible persons may engage in exports of defense articles
manufactured by him, or that incorporate any of his manufactured items
into defense articles for export, or otherwise engage in transactions
subject to the ITAR without providing prior written notification of his
involvement as otherwise required by ITAR 127.1(d) and the transaction
exception requirements of the Federal Register notice of statutory
debarment.
Timothy Betts,
Acting Assistant Secretary, Bureau of Political-Military Affairs.
[FR Doc. 2021-21372 Filed 9-30-21; 8:45 am]
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