Boeing Settles Export Violations with $51M Civil Penalty

Boeing, the US aerospace company, has agreed to pay a $51 million civil penalty to the United States to settle export violation charges related to the unauthorized export of defense articles to multiple countries, including China.

According to the proposed charging letter from the State Department, three Chinese employees at Boeing facilities in China allegedly downloaded export-controlled technical data related to various Defense Department assets from 2013 to 2018, including aircraft like the F-18, F-15, and F-22.

It was also mentioned that during that same period, an undisclosed number of foreign workers at facilities in 18 countries, including Russia, downloaded export-controlled data on 80 occasions.

The US government stated in a document that certain unauthorized exports to the PRC caused harm to US national security, referring to China by the initials of its official name, the People’s Republic of China.

“The US Government has determined that an unauthorized export to Russia posed a potential threat to US national security.”

Boeing has agreed to a 36-month consent agreement where they will pay a $51 civil penalty to settle 199 violations of the Arms Export Control Act and International Traffic in Arms Regulations.

The State Department has decided to withhold $24 million with the requirement that it is allocated to enhance Boeing’s compliance program.

Boeing Strengthens Compliance and Security

 

Boeing has also agreed to appoint an external compliance officer to supervise the consent agreement for a minimum of two years.

During this period, the company must undergo two external audits of its ITAR compliance program.

The State Department stated that the settlement showcases its commitment to advancing national security and foreign policy by regulating the export of defense articles.

This settlement emphasizes the significance of exporting defense articles only with proper authorization from the Department.