State Department Imposes ITAR Denial Policy on Blackwater

The State Department's Directorate of Defense Trade Controls (DDTC) published in today's Federal Register a notice advising that DDTC has imposed a general policy of denial on export licenses, ITAR authorizations and exemptions associated with Blackwater USA and its affiliates owned by EP Investments, LLC.

The denial policy exempts applications for licenses and other approvals that are in direct support of U.S. Government contracts and provides for case-by-case review of other types of authorizations and exemptions.

DDTC indicated that the policy of denial "is necessary to provide the U.S. Government with assurance that [Blackwater] is both capable and willing to comply with the AECA and ITAR and will do so."

DDTC indicated that it "recognizes the recent steps taken by [Blackwater] 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."