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37 Individuals Barred from Defense Trade for Export Violations

Thursday, November 07, 2013
Sandler, Travis & Rosenberg Trade Report

Effective Nov. 7, the Department of State has imposed statutory debarment under the International Traffic in Arms Regulations on 37 persons convicted of violating or conspiring to violate Section 38 of the Arms Export Control Act. As a result, these individuals 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. In addition, 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 State’s Directorate of Defense Trade Controls, participate directly or indirectly in any ITAR-controlled export in which such ineligible person may benefit or in which they may have a direct or indirect interest.

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 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 U.S. foreign policy or national security interests, or whether other compelling circumstances exist that are consistent with U.S. foreign policy or national security interests and that do not conflict with law enforcement concerns. Even if exceptions are granted, the debarment continues until subsequent reinstatement.

The period for debarment is generally 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. Unless export privileges are reinstated, the person remains debarred.

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