Electro-Glass Products: Information for Exporters

Last Updated: May 19, 2008

This notice explains the Department’s policy regarding exports involving Electro-Glass Products.

On July 13, 2007, in the United States District Court for the Western District of Pennsylvania, Electro-Glass Products was found guilty of violating the Arms Export Control Act. On September 11, 2007, the Department published a Federal Register notice regarding this conviction and the resulting statutory debarment of Electro-Glass Products. The following guidance is intended to provide information concerning certain exceptions to this debarment.

Scope of the Debarment

• The debarment is applicable to Electro-Glass Products.

New Approvals

• New export authorizations requested by or involving Electro-Glass Products are subject to the debarment and a policy of denial will be applied, unless an exception – known as a “transaction exception” - is granted. Transaction exception requests are reviewed on a case-by-case basis.

Criteria for Transaction Exceptions

• Transaction exceptions may be granted with respect to this debarment on a case-by-case basis if the export would further:

1) Overriding U.S. foreign policy or national security interests;
2) Law enforcement interests that are consistent with foreign policy or national security interests of the United States; or
3) Other compelling interests that are consistent with the foreign policy or national security interests of the United States.

General Determination

• The Department has determined that it will generally grant transaction exceptions requested by third parties where Electro-Glass Products is a source or manufacturer listed on the license application until September 11, 2008 concerning the following categories:

1) Existing, pending and future authorizations in support of U.S. Government contracts or U.S. Government end-use;

2) Existing, pending and future authorizations for end-use by NATO Allies & Major Non-NATO Allies, and in support of hospital/medical/search and rescue service organizations of NATO Allies and Major Non-NATO Allies;

3) Existing, pending and future authorizations in support of our coalition partners or to otherwise support the war effort;

4) Existing, pending and future authorizations in support of foreign law enforcement activities when the export is part of a U.S. Government contract or the export is for foreign government end-use;

5) Existing, pending and future authorizations for end-use by the following close allies: Austria, Chile, Finland, Oman, Qatar, United Arab Emirates, Brunei and Sweden.

NOTE: Transaction exception requests for the above categories will be reviewed on a case-by-case basis. Exporters requesting a transaction exception for these circumstances should clearly state how the general requirements for a transaction exception have been met, and how their request falls within one or more of the five categories listed above.

The only exception to the case-by-case review will be pursuant to the § 123.4(a)(1) exemption by eligible third parties who have acquired items from Electro Glass for use in one of the five categories listed above. The § 123.4(a)(1) exemption may be used, in accordance with the provisions of § 123.4(a)(1), by such eligible parties for one of these five categories without submitting a transaction exception request.

Other Export Transactions

• The Department anticipates that there may be other export transactions that meet the criteria for granting a transaction exception. Exporters who want to apply for transaction exceptions for circumstances that fall outside of those outlined above should describe the circumstances in their application letter and provide relevant justification, including a specific description of how their request meets one or more of the three criteria for a transaction exception.