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Reminder-PW Canada statutory debarment


Recently we have gotten a lot of questions about the Pratt Whitney Canada 2012 statutory debarment. Following a June 28, 2012 guilty plea for violations of ITAR and Arms Export Control Act (AECA), the State Department issued a statutory debarment against Pratt Whitney Canada. This debarment would only affect PW Canada, not any other UTC subsidiary.    Under the debarment, new license applications submitted to DDTC will be presumed to be denied unless it falls in one of the three “Carve outs”. The “carve-outs” which are not subject to the statutory debarment and do not require a transaction exception request include: transactions in support of U.S. Government programs, Coalition Operation Enduring Freedom efforts, Government programs for NATO and Major Non-NATO Ally (ITAR §120.32. Other license applications can be submitted with a transaction exception request and will be reviewed on a case-by-case basis, where exporters must answer questions including “Is the exception warranted by overriding U.S. foreign policy or national security interests?.”

Additionally, it is important to note that this debarment effects only State, not Commerce licenses. Also, any State Department licenses and approvals granted before June 28, 2012 were not affected by this debarment.

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