# Termination of Statutory Debarment and Reinstatement of Eligibility To Apply for Export/Retransfer Authorizations Pursuant to Section 38(g)(4) of the Arms Export Control Act for Orbit/FR, Inc.
**ACTION:**
Notice.
**SUMMARY:**
Notice is hereby given that the Department of State has terminated the statutory debarment against Orbit/FR, Inc. pursuant to Section 38(g)(4) of the Arms Export Control Act (AECA) (22 U.S.C. 2778) and § 127.11 of the International Traffic in Arms Regulations (ITAR) (22 CFR Parts 120-130).
**EFFECTIVE DATE:**
August 29, 2005.
**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 38(g)(4) of the AECA and Section 127.11 of the ITAR prohibit the issuance of export licenses or other approvals to a person, or any party to the export, who has been convicted of violating the AECA and certain other U.S. criminal statutes enumerated at section 38(g)(1)(A) of the AECA and § 120.27 of the ITAR. A person convicted of violating the AECA is also subject to statutory debarment under § 127.7 of the ITAR.
In March 2000, following entry of a guilty plea in November 1999, Orbit/FR was convicted of two counts of violating the AECA and the ITAR (U.S. District Court, Eastern District of Pennsylvania, Criminal Docket No. CR 99-560). Based on this conviction, Orbit/FR was statutorily debarred pursuant to Section 38(g)(4) of the AECA and § 127.7 of the ITAR and, thus, prohibited from participating directly or indirectly in exports of defense articles and defense services. Notice of debarment was published in the *Federal Register* (65 FR 13072, March 10, 2000).
Section 38(g)(4) of the AECA and § 127.11 of the ITAR permit termination of debarment after consultation with the other appropriate U.S. agencies and 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. Orbit/FR has taken steps to address law enforcement concerns, including entering a Consent Agreement with the Department of State whereby Orbit/FR will pay civil penalties in cash and remedial compliance measures. The Department of State has determined that Orbit/FR has taken appropriate steps to address the causes of the violations and to mitigate any law enforcement concerns. Therefore, in accordance with Section 38(g)(4) of the AECA and § 127.11 of the ITAR, the debarment against Orbit/FR is rescinded, effective August 29, 2005. The effect of this termination is that Orbit/FR and its affiliates may participate without prejudice in the export of defense articles and defense services subject to certain provisions of the AECA, the ITAR and the Consent Agreement.
Dated: August 29, 2005.
Rose M. Likins,
Acting Assistant Secretary of State for Political-Military Affairs, Department of State.