Military exports, all Boeing violations
Boeing has agreed to pay a $51 million fine to the United States to resolve nearly 200 export violations, including the unauthorized export of technical data to China.
Boeing settles with the United States for weapons export violations.
The American aerospace giant has reached a $51 million settlement with the US State Department to resolve nearly 200 export violations, including the unauthorized export of technical data to China. This is what the State Department announced yesterday.
Boeing and the government reached the agreement after an “extensive compliance review” stemming from revelations by Boeing between 2017 and 2022 that some of its international employees and contractors had violated the Arms Export Control Act (Aeca), and consequently, the legislation on international trafficking in arms (ITAR).
Among the violations cited were Boeing's unauthorized export of defense items, as well as technical information exported to foreign employees and contractors. This included “unauthorized exports of technical data” to China. However, government documents do not mention the disclosure of classified material, Reuters reports.
THE MILITARY EXPORT VIOLATIONS COMMITTED BY BOEING
Boeing admitted between 2013 and 2018, additional unauthorized downloads of technical data occurred at company and partner offices in 18 countries and regions, including Australia, Canada, France, Germany, Hong Kong, India, Italy, Japan, Kenya, Morocco, Russia, Singapore, South Korea, Spain, Thailand, Taiwan, Ukraine and the United Kingdom. According to the US State Department, the plea agreement will cover as many as 199 cases of violations of the Arms Export Control Act and the International Traffic in Arms Regulations by Boeing.
THE VIOLATION CERTIFIED IN CHINA
The State Department said that from 2013 to 2017, three Chinese employees at Boeing factories in China downloaded technical data regarding programs including the F-18, F-15 and F-22 fighter aircraft, the warning and control system E-3 aircraft, the AH-64 Apache and the AGM84E cruise missile, Reuters notes.
According to the proposed letter of charge, these violations “caused harm to the national security of the United States.”
THE TERMS OF THE AGREEMENT
So, under the terms of the settlement, “Boeing will pay a civil penalty of $51 million.” Of that, $24 million will be suspended to allow Boeing to strengthen its compliance program, the State Department said.
BOEING'S POSITION
The US aerospace company said it was “committed to our trade control obligations and we look forward to working with the Department of State as part of the agreement”. The spokesperson added that the majority of the 199 violations “predate the significant improvements we have made to our trade controls compliance program since 2020.”
“We are committed to continually improving this program, and the compliance commitments reflected in this agreement will help us achieve that goal,” Boeing concluded.
For at least two years, the company will assign a special external compliance officer to oversee the deal, which will also require two external audits, according to the State Department.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/esportazioni-militari-tutte-le-violazioni-di-boeing/ on Fri, 01 Mar 2024 14:55:56 +0000.