Statutory Debarment Under the International Traffic in Arms Regulations

DEPARTMENT OF STATE

Office of Defense Trade Controls

[Public Notice 2055]

Statutory Debarment Under the International Traffic in Arms

Regulations

AGENCY: Department of State.

ACTION: Notice.

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SUMMARY: Notice is hereby given of which persons have been statutorily

debarred pursuant to Sec. 127.7(c) of the International Traffic in Arms

Regulations (ITAR) (22 CFR Parts 120-130).

EFFECTIVE DATE: Autust 29, 1994.

FOR FURTHER INFORMATION CONTACT:

Mary F. Sweeney, Acting Chief, Compliance Enforcement Branch, Office of

Defense Trade Controls, Department of State (703-875-6650).

SUPPLEMENTARY INFORMATION: Section 38(g)(4)(A) of the Arms Export

Control Act (AECA), 22 U.S.C. 2778, prohibits licenses or other

approvals for the export of defense articles and defense services to be

issued to a person, or any party to the export, who has been convicted

of violating certain U.S. criminal statues, including the AECA. The

term ``person,'' as defined in 22 CFR 120.14 of the International

Traffic in Arms Regulations (ITAR), means a natural person as well as a

corporation, business association, partnership, society, trust, or any

other entity, organization or group, including governmental entities.

The ITAR, specifically Sec. 126.7(e), defines the term ``party to the

export'' to include the president, the chief executive officer, and

other senior officers and officials of the license applicant; the

freight forwarders or designated exporting agent of the license

applicant; and any consignee or end-user of any item to be exported.

The statute permits certain limited exceptions to this prohibition to

be made on a case-by-case basis. 22 U.S.C. 2778(g)(4).

The ITAR, section 127.7, authorizes the Assistant Secretary of

State for Political-Military Affairs to prohibit certain persons

convicted of violating, or conspiring to violate, the AECA, from

participating directly or indirectly in the export of defense articles

or in the furnishing of defense services for which a license or

approval is required. Such a prohibition is referred to as a

``statutory debarment,'' which may be imposed on the basis of judicial

proceedings that resulted in a conviction for violating, or of

conspiring to violate, the AECA. See 22 CFR 127.7(c). The period for

debarment will normally be three years from the date of conviction. At

the end of the debarment period, licensing privileges may be reinstated

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 the

AECA, 22 U.S.C. 2778(g)(4).

Statutory debarment is based solely upon a conviction in a criminal

proceeding, conducted by a United States court. Thus, the

administrative debarment procedures, as outlined in the ITAR 22 CFR

part 128, are not applicable in such cases.

The Department of State will not consider applications for licenses

or requests for approvals that involve any person or any party to the

export 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

International Security Affairs 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. 22 CFR 127.7(d).

The Department of State policy permits debarred persons to apply

for reinstatement of export privileges one year after the date of the

debarment, in accordance with the AECA, 22 U.S.C. 2778(g)(4)(A), and

the ITAR, section 127.7. A reinstatement request is made to the

Director of the Office of Defense Trade Controls. Any decision to

reinstate export privileges can be made only after the statutory

requirements under section 38(g)(4) of the AECA have been satisfied

through a process administered by the Office of Defense Trade Controls.

If reinstatement is granted, the debarment will be suspended.

Pursuant to the AECA, 22 U.S.C. 2778(g)(4)(A), and the ITAR, 22 CFR

127.7, the Assistant Secretary for Political-Military Affairs has

statutorily debarred thirteen persons who have been convicted of

conspiring to violate or violating the AECA.

These persons have been debarred for a three-year period following

the date of their conviction, and have been so notified by a letter

from the Office of Defense Trade Controls. Pursuant to ITAR 127.7(c),

the names of these persons, their offense, date(s) of conviction and

court(s) of conviction are hereby being published in the Federal

Register. Anyone who requires additional information to determine

whether a person has been debarred should contact the Office of Defense

Trade Controls.

This notice involves a foreign affairs function of the United

States encompassed within the meaning of the military and foreign

affairs exclusion of the Administration Procedure Act. Because the

exercise of this foreign affairs function is discretionary, it is

excluded from review under the Administrative Procedure Act.

In accordance with these authorities the following persons are

debarred for a period of three years following their conviction for

conspiring to violate or violating the AECA (name/address/offense/

conviction date/court citation):

1. Zeljko Vusir c/o 645 Madison Ave., New York, NY 10022, 22 U.S.C.

2778 (violating the AECA), May 6, 1992, United States v. Ivan

Kapetanovic, et al., U.S. District Court, District of Arizona,

Criminal Docket No. CR-91-225-PHX-RGS

2. Mark Belinic, 7138 E. Buena Terra, Scottsdale, AZ 85257, 22

U.S.C. 2778 (violating the AECA), July 29, 1992, United States v.

Ivan Kapetanovic, et al., U.S. District Court, District of Arizona,

Criminal Docket No. CR-91-225-PHX-RGS

3. Bet-Air, Inc., 9000 N.W. 15th Street, Miami, FL 33172 18 U.S.C.

371 (conspiracy to violate 22 U.S.C. 2778), and 22 U.S.C. 2778

(violating the AECA), April 23, 1993 United States v. Bet-Air, Inc.,

U.S. District Court, Central District of California, Criminal Docket

No. CR-90-578-CR-MORENO(01)

4 Terrence Hall, 19400 West St. Andrews Drive, Hialeah, FL 33015, 18

U.S.C. 371 (conspiracy to violate 22 U.S.C. 2778), and 22 U.S.C.

2778 (violating the AECA), April 23, 1993 United States v. Bet-Air,

Inc., U.S. District Court, Central District of California, Criminal

Docket No. CR-90-578-CR-MORENO(01)

5. J. Randall Shute, 1475 Northwold Drive, Dunwoody, GA 30350,

(conspiracy to violate 22 U.S.C. 2778), April 28, 1993, United

States v. J. Randall Shute, et al., U.S. District Court, Northern

District of Georgia, Criminal Docket No. Cl-92-434-01-GET

6. Louis J. Kocurek, III, 121 Deerwood, San Antonio, TX 78209, 18

U.S.C. 371 (conspiracy to violate 22 U.S.C. 2778), April 28, 1993,

United States v. J. Randall Shute, et al., U.S. District Court,

Northern District of Georgia, Criminal Docket No. Cl-92-434-03-GET

7. Lance B. Ordway, 1153 Norfolk Drive, N.W., Ackworth, GA 30102, 18

U.S.C. 371 (conspiracy to violate 22 U.S.C. 2778), May 11, 1993,

United States v. J. Randall Shute, et al., U.S. District Court,

Northern District of Georgia, Criminal Docket No. Cl-92-434-02-GET

8. Bin Wu, Western Tidewater Regional Jail, 2402 Godwin Boulevard,

Suffolk, VA 23434, 18 U.S.C. 371 (conspiring to violate 22 U.S.C.

2778), and 22 U.S.C. 2778 (violating the AECA), September 17, 1993,

United States v. Bin Wu, et al., U.S. District Court, Eastern

District of Virginia, Criminal Docket No. 92-188-N

9. Jin Ping Li, Western Tidewater Regional Jail, 2402 Godwin

Boulevard, Suffolk, VA 23434, 18 U.S.C. 371 (conspiring to violate

22 U.S.C. 2778), and 22 U.S.C. 2778 (violating the AECA), September

17, 1993, United States v. Bin Wu, et al., U.S. District Court,

Eastern District of Virginia, Criminal Docket No. 92-188-N

10. Pinzhe Zhang, a/k/a ``Peter Zhang'', Western Tidewater Regional

Jail, 2402 Godwin Boulevard, Suffolk, VA 23434, 18 U.S.C. 371

(conspiring to violate 22 U.S.C. 2778), and 22 U.S.C. 2778

(violating the AECA), September 17, 1993, United States v. Bin Wu,

et al., U.S. District Court, Eastern District of Virginia, Criminal

Docket No. 92-188-N

11. Alexander Nikolic, 2247 N. Meade, Chicago, IL 60639, 18 U.S.C.

371 (conspiracy to violate 22 U.S.C. 2778), and 22 U.S.C. 2778

(violating the AECA), November 22, 1993, United States v. Bajro

Hukic, et al., U.S. District Court, Eastern District of Illinois,

Criminal Docket No. 91 CR 834-4

12. Kem and Associates, Incorporated, Highway 84, East, P.O. Box

155, McGregor, TX 76657-0155, 22 U.S.C. 2778 (violating the AECA),

December 14, 1993, United States v. Kem and Associates,

Incorporated, U.S. District Court, Western District of Texas,

Criminal Docket No. W-93-CR-075(2)

13. Bajro Hukic, a/k/a ``Bob Hukic'' and ``Bab Hucici'', 2005 S.

Ashland, Park Ridge, IL 60068, 18 U.S.C. 371 (conspiracy to violate

22 U.S.C. 2778), January 19, 1994, United States v. Bajro Hukic, et

al., U.S. District Court, Northern District of Illinois, Criminal

Docket No. -91CR-834-1

Dated: August 16, 1994.

William B. Robinson,

Director, Office of Defense Trade Controls, Bureau of Political-

Military Affairs, Department of State.

[FR Doc. 94-21266 Filed 8-26-94; 8:45 am]

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