News
Print PDF

State Dept. to Consider Export Transactions Involving Debarred Company

Monday, May 09, 2016
Sandler, Travis & Rosenberg Trade Report

The State Department has announced that as of May 9 it will consider license applications for the indirect participation of Rocky Mountain Instrument Company in certain transactions subject to the Arms Export Control Act without the submission of a transaction exception request as an element of the application. However, this notice does not reinstate export privileges for RMI or rescind its statutory debarment.

Under that debarment, which was imposed in September 2010, RMI is 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. Exceptions may be made to this debarment on a case-by-case basis, but even if exceptions are granted the debarment continues until subsequent reinstatement.

Having found that appropriate steps have been taken to mitigate law enforcement concerns, State has determined to approve specific exceptions from RMI’s debarment that will be available to persons other than RMI but not persons acting for or on behalf of RMI in contravention of ITAR § 127.1(d), for the following categories of authorization requests.

- applications submitted by persons other than RMI for the export or temporary import of defense articles manufactured by RMI (i.e., where RMI is identified as a source or  manufacturer)

- applications submitted by persons other than RMI for the export or temporary import of defense articles manufactured by persons other than RMI that incorporate a defense article manufactured by RMI as a component, accessory, attachment, part, firmware, software or system

- the use of other approvals by persons other than RMI for the export or temporary import of defense articles described in the above categories

- applications submitted by persons other than RMI for agreements identified in ITAR Part 124 in which RMI is identified as a U.S. signatory to the agreement

All such requests for authorization or use of exemptions involving RMI will be reviewed and action taken in the ordinary course of business and do not require the submission of a separate transaction exception request but should include reference to, or a copy of, this notice.

All requests for authorizations involving RMI that do not fall within the scope of the above categories must be preceded by the approval of a transaction exception request by State. The decision to grant a transaction exception will be made on a case-by-case basis after a full review of all circumstances.

To get news like this in your inbox daily, subscribe to the Sandler, Travis & Rosenberg Trade Report.

Customs & International Headlines