Full Normalization of U.S.-South African Defense Trade

As indicated in Federal Register Notice 4768, the Department of State has fully rescinded the statutory debarment against the Armaments Corporation of South Africa Ltd. (Armscor), the Denel Group (Pty) Ltd. (Denel), and their divisions, subsidiaries, associated companies and affiliated persons, and successor entities.

During the apartheid era, these firms violated and conspired to violate the Arms Export Control Act (AECA) by engaging in the transfer of U.S. Munitions List-controlled items without the required approval of the Department of State. Pursuant to the AECA and the International Traffic in Arms Regulations (ITAR), following entry of criminal pleas in a U.S. District Court, the Department of State determined, on February 27, 1997, that these firms were ineligible to benefit from arms export licenses granted by the Department of State’s Directorate of Defense Trade Controls.

Their debarments were temporarily suspended a year later based on remedial actions taken in furtherance of the 1997 Agreement Between the Government of the United States and the Government of the Republic of South Africa Concerning Cooperation on Defense Trade Controls.

Debarment was rescinded after the Department of State determined that the firms had met all requirements specified in the bilateral agreement. As a result, the companies may participate, without prejudice in defense trade exports or transfers, and the defense trade relationship between the United States and South Africa is now fully normalized.

The decision to rescind the debarment of a third South African entity, Fuchs Electronics (PTY) and associated companies, that was involved in the same case will also be announced in an upcoming Federal Register notice.

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