Bureau of Political-Military Affairs; Statutory Debarment Under the International Traffic in Arms Regulations, 2291 [E6-330]

Agencies

• DEPARTMENT OF STATE

[Federal Register Volume 71, Number 9 (Friday, January 13, 2006)]
[Notices]
[Page 2291]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-330]



[[Page 2291]]

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

DEPARTMENT OF STATE

[Public Notice 5273]


Bureau of Political-Military Affairs; Statutory Debarment Under 
the International Traffic in Arms Regulations

ACTION: Notice.

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

SUMMARY: Notice is hereby given that the Department of State has 
imposed statutory debarment pursuant to section 127.7(c) of the 
International Traffic in Arms Regulations (``ITAR'') (22 CFR Parts 120 
to 130) on persons convicted of violating or conspiring to violate 
section 38 of the Arms Export Control Act (``AECA'') (22 U.S.C. 2778).

EFFECTIVE DATE: Date of conviction as specified for each person.

FOR FURTHER INFORMATION CONTACT: David Trimble, Director, Office of 
Defense Trade Controls Compliance, Bureau of Political-Military 
Affairs, Department of State (202) 663-2700.

SUPPLEMENTARY INFORMATION: Section 38(g)(4) of the AECA, 22 U.S.C. 
2778, prohibits licenses and other approvals for the export of defense 
articles or defense services to be issued to persons, or any party to 
the export, who have been convicted of violating certain statutes, 
including the AECA.
    In implementing this section of the AECA, the Assistant Secretary 
for Political-Military Affairs is authorized by section 127.7 of the 
ITAR to prohibit any person who has been convicted of violating or 
conspiring to violate the AECA 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. This prohibition is referred to as ``statutory 
debarment.''
    Statutory debarment is based solely upon conviction in a criminal 
proceeding, conducted by a United States Court, and as such the 
administrative debarment proceedings outlined in Part 128 of the ITAR 
are not applicable.
    The period for debarment will be determined by the Assistant 
Secretary of State for Political-Military Affairs based on the 
underlying nature of the violations, but will generally be for three 
years from the date of conviction. At the end of the debarment period, 
licensing privileges may be reinstated only at the request of the 
debarred person following 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 licensing 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, in 
accordance with section 38(g)(4) of the AECA and section 127.11(b) of 
the ITAR. Any decision to grant reinstatement can be made only after 
the statutory requirements under 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-base basis at the discretion 
of the Assistant Secretary of State for Political-Military Affairs. 
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 of the AECA and section 127.7 of the ITAR, 
the Assistant Secretary of State for Political-Military Affairs has 
statutorily debarred the following persons for a period of three years 
following the date of their AECA conviction:
    (1) Jesus Arredondo-Sanchez (a.k.a. Jesus Arredondo), June 21, 
2004, U.S. District Court, District of Arizona (Phoenix), Case 
: CR 03-00524-001-PHX-FJM.
    (2) Omar Carrillo, October 7, 1999, U.S. District Court, Southern 
District of Texas (Laredo), Case : 5:99CR00241-001.
    (3) Carlos Alberto Correa-Arango, August 31, 2005, U.S. District 
Court, Southern District of Florida (Miami), Case : 05-60122-
CR-HUCK.
    (4) Kozo Wada, June 9, 2005, U.S. District Court, District of 
Oregon (Portland), Case : Cr. 03-96-BR.
    (5) Atallah Adwani, September 24, 2003, U.S. District Court, 
Southern District of Ohio (Cincinnati), Case : CR-1-02-71-1.
    (6) Summit Marketing, Inc., October 24, 1997, U.S. District Court, 
District of Massachusetts (Boston), Case : 1:96CR10326-002-
REK.
    As noted above, at the end of the three-year period, the above 
named persons/entities remain debarred unless licensing 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)). The Department of State will not consider applications 
for licenses or requests for approvals that involve any person who has 
been convicted of violating or of conspiring to violate the AECA during 
the period of statutory debarment. Persons who have been statutorily 
debarred may appeal to the Under Secretary for Arms Control and 
International Security for reconsideration of the ineligibility 
determination. A request for reconsideration must be submitted in 
writing within 30 days after a person has been informed of the adverse 
decision, in accordance with 22 CFR Sections 127.7(d) and 128.13(a).
    This notice is provided for purposes of making the public aware 
that the persons listed above are prohibited from participating 
directly or indirectly in 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. Specific 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.
    This notice involves a foreign affairs function of the United 
States encompassed within the meaning of the military and foreign 
affairs exclusion of the Administrative Procedure Act. Because the 
exercise of this foreign affairs function is discretionary, it is 
excluded from review under the Administrative Procedure Act.

    Dated: January 9, 2006.
John Hillen,
Assistant Secretary for Political-Military Affairs, Department of 
State.
[FR Doc. E6-330 Filed 1-12-06; 8:45 am]
BILLING CODE 4710-25-P