18 December 2008

[Federal Register: December 18, 2008 (Volume 73, Number 244)]
[Notices]               
[Page 77099]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr18de08-130]                         


[[Page 77099]]

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DEPARTMENT OF STATE

[Public Notice 6458]

 
Policy of Denial Regarding ITAR Regulated Activities of EP 
Investments, LLC (a/k/a Blackwater)

AGENCY: Department of State.

ACTION: Notice.

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SUMMARY: Notice is hereby given that the Department of State has 
imposed a policy of denial with certain exceptions concerning EP 
Investments, LLC pursuant to section 38 of the Arms Export Control Act 
(AECA) (22 U.S.C. 2778) and section 126.7 of the International Traffic 
in Arms Regulations (ITAR). The Department of State is providing this 
information as a matter of courtesy to interested parties given the 
specific circumstances presented.

DATES: Effective Date: December 2, 2008.

FOR FURTHER INFORMATION CONTACT: David C. Trimble, Director, Office of 
Defense Trade Controls Compliance, Directorate of Defense Trade 
Controls, Bureau of Political-Military Affairs, Department of State 
(202) 663-2807.

SUPPLEMENTARY INFORMATION: Section 126.7 of the ITAR provides that any 
application for an export license or other approval under the ITAR may 
be disapproved, and any license or other approval or exemption granted 
may be revoked, suspended, or amended without prior notice whenever, 
among other things, the Department of State believes that 22 U.S.C. 
2778, any regulation contained in the ITAR, or the terms of any U.S. 
Government export authorization (including the terms of a manufacturing 
license or technical assistance agreement, or export authorization 
granted pursuant to the Export Administration Act, as amended) has been 
violated by any party to the export or other person having a 
significant interest in the transaction; or whenever the Department of 
State deems such action to be in furtherance of world peace, the 
national security or the foreign policy of the United States, or is 
otherwise advisable.
    The Department of State has determined that a policy of denial 
regarding EP Investments, LLC (a/k/a Blackwater and hereafter referred 
to as EPI), including its subsidiaries or associated companies, is 
necessary to provide the U.S. Government with assurance that EPI is 
both capable and willing to comply with the AECA and ITAR and will do 
so. The Department recognizes the recent steps taken by EPI to improve 
its compliance program, for example setting up the Export Compliance 
Committee (ECC), and has tailored the policy of denial accordingly to 
leverage these measures by permitting certain exceptions to be made. 
The policy of denial is as follows:
    (1) There is a presumption of denial for all new authorizations 
submitted by EPI, except concerning applications for licenses and other 
approvals that are in direct support to the U.S. Government, provided 
that EPI, or one of its subsidiaries listed in its registration, has a 
direct contract with the U.S. Government, and:
    (a) Along with each application, EPI's Export Compliance Committee 
(ECC) submits a letter certifying to the accuracy of the information in 
the submission, and that the training and internal controls necessary 
to implement the authorization are in place;
    (b) For each authorization, the ECC must provide reports to the 
Office of Defense Trade Controls Compliance (DTCC) thirty (30) and then 
sixty (60) days after export activities have commenced certifying that 
all provisions of the approval have been complied with, all training 
necessary to implement the authorization was done, and that appropriate 
internal controls are in place.
    (2) All other new authorizations, those that are not in direct 
support of a U.S. Government contract, are subject to a presumption of 
denial. Transaction exception requests will be considered on a case by 
case basis as follows:
    (a) The request for an exception to the denial policy must address 
why the request is based on overriding U.S. national security, foreign 
policy or law enforcement grounds or present other compelling reasons;
    (b) Along with the request for an exception, the ECC must submit a 
letter certifying to the accuracy of the information in the application 
submission, and that the training and internal controls necessary to 
implement the authorization are in place; and
    (c) If the transaction exception is granted, for each 
authorization, the ECC must provide reports to DTCC thirty (30) and 
then sixty (60) days after export activities have commenced certifying 
that all provisions of the approval have been complied with, all 
training necessary to implement the authorization was done, and that 
the appropriate internal controls are in place.
    (3) EPI, including all of its subsidiaries, are considered 
ineligible to use ITAR exemptions. Transaction exception requests to 
use ITAR exemptions will be accepted and considered on a case by case 
basis.
    (4) Current authorizations, licenses in support of current 
authorizations and minor amendments to existing authorizations will not 
be subject to a policy of denial.

    Dated: December 11, 2008.
Frank J. Ruggiero,
Acting Assistant Secretary of State for Political Military Affairs, 
Department of State.
 [FR Doc. E8-30127 Filed 12-17-08; 8:45 am]

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