Resolutions of Export Control Violations

Raytheon: Resolution of Export Control Violations in 2013

United States views on international law [1] in relation to Raytheon: Resolution of Export Control Violations: On April 30, 2013, the State Department announced the resolution of an enforcement action against Raytheon Company. A Department media note, available at (Secretary of State website) state.gov/r/pa/prs/ps/2013/04/208655.htm, summarizes the administrative agreement reached with Raytheon to address its violations of the Arms Export Control Act (“AECA”) (22 U.S.C. § 2778) and the International Traffic in Arms Regulations (“ITAR”)(22 C.F.R. parts 120-130), including the payment of $8 million in civil penalties and remedial expenditures:

The Department's Office of Defense Trade Controls Compliance in the Bureau of Political-Military Affairs determined that Raytheon's numerous violations demonstrated a recurring, corporate-wide weakness in maintaining effective ITAR controls. Over the course of many years, Raytheon business units have disclosed to the Department hundreds of ITAR violations, largely consisting of failures to properly manage Department-authorized agreements and temporary import and export authorizations. The violations included inaccurate tracking, valuation and documentation of temporary exports and imports of controlled hardware, manufacture of such hardware by Raytheon's foreign partners in excess of the approved amounts, and failures to timely obtain and submit required documents. Raytheon repeatedly discovered and disclosed such violations to the Department, in some cases finding that previously reported remedial measures failed to prevent or detect additional similar violations subsequently disclosed.

Some Aspects of Raytheon: Resolution of Export Control Violations

Under the terms of a four year Consent Agreement with the Department, Raytheon will pay a civil penalty of $8 million. The State Department agreed to suspend $4 million of this amount on the condition that the funds have or will be used for Department-approved pre- and post-Consent Agreement remedial compliance measures. In addition, an external Special Compliance Official will be engaged by Raytheon to oversee the Consent Agreement, which will also require the company to conduct two external audits of its compliance program during the Agreement term as well as implement additional compliance measures.

Developments

Raytheon disclosed nearly all of the ITAR violations resolved in this settlement voluntarily to the Department, acknowledged their serious nature, cooperated with Department reviews, and implemented or has planned extensive remedial measures. For these reasons, the Department has determined that an administrative debarment of Raytheon is not appropriate at this time.

Meggitt-usa, Inc. : Resolution of Export Control Violations in 2013

United States views on international law [1] in relation to Meggitt-usa, Inc. : Resolution of Export Control Violations: On August 23, 2013, the State Department announced the conclusion of an administrative settlement with Meggitt-USA, Inc. to resolve alleged violations of the AECA and ITAR. A Department media note, available at (Secretary of State website) state.gov/r/pa/prs/ps/2013/08/213483.htm, provides further information about the settlement:

Over the course of several years, Meggitt subsidiaries and business units disclosed to the Department hundreds of ITAR violations beginning in the mid1990s, largely involving the unauthorized export of defense articles, including technical data, the unauthorized provision of defense services, violation of the terms of provisos or other limitations of license authorizations, and the failure to maintain specific records involving ITAR-controlled transactions.

Some Aspects of Meggitt-usa, Inc. : Resolution of Export Control Violations

Under the terms of the 30-month consent agreement with the Department, Meggit is assessed a civil penalty of million, of which million will be paid in installments and the remainder suspended on the condition the Department approves expenditures for self-initiated, pre-consent agreement remedial compliance measures and consent agreement-authorized remedial compliance costs. In addition, an Internal Special Compliance Official will be engaged by Meggitt to oversee the consent agreement, which will also require the company to implement additional compliance measures, including enhanced policies and procedures, to review external audit programs and conduct audit measures pursuant to the agreement, to review jurisdictional determinations of commodities, and report on system upgrades and improvements.

Developments

Meggitt disclosed nearly all of the ITAR violations resolved in this settlement voluntarily to the Department, … and implemented or has planned extensive remedial measures throughout its subsidiaries. For these reasons, the Department determined that an administrative debarment or suspension of Meggitt was not appropriate at this time.

Resources

Notes

1. Meggitt-usa, Inc. : Resolution of Export Control Violations in the Digest of United States Practice in International Law

Resources

Notes

1. Raytheon: Resolution of Export Control Violations in the Digest of United States Practice in International Law