International Trade Law News /title <!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Strict//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-strict.dtd"> <html xmlns="http://www.w3.org/1999/xhtml" xml:lang="en" lang="en"> <meta name="verify-v1" content="6kFGcaEvnPNJ6heBYemQKQasNtyHRZrl1qGh38P0b6M=" /> <head> <title>International Trade Law News

« Home | CIT Holds that Byrd Amendment Funds Not Applicable... » | BIS Publishes 2005 Annual Report » | CAFTA-DR Certificate of Origin Form » | ITC to Conduct Factfinding Investigation on U.S. T... » | Next NCITD Meeting to be Held on April 6, 2006 » | U.K. Imposes Fine on Company for Unlicensed Export... » | Legislation Introduced to Hire More CBP Import Spe... » | Goods From Honduras and Nicaragua now Eligible for... » | Secretary of Homeland Security Discusses Shipping ... » | USTR Issues 2006 National Trade Estimate Report on... » 

April 09, 2006 

DDTC Imposes Record Penalties on Boeing and Others for ITAR Violations

The Seattle Times reports on Boeing's recently completed $15 million settlement with the State Department's Directorate of Defense Trade Controls (DDTC) for violating the International Traffic in Arms Regulations (ITAR) by making unlicensed foreign sales of commercial aircraft containing the controlled QRS-11 gyrochip.

The article describes the commodity jurisdiction history of the QRS-11 and notes that the State Department had determined that the gyrochip was covered by the U.S. Munitions List as early as 1993. However, "Boeing continued the exports even after the State Department told the company to stop" and Boeing's "lawyers advised that the State Department 'did not have jurisdiction' to regulate the exports." The article quotes a Boeing spokesman as saying that "In hindsight, we should have handled it differently" and "we would handle it differently today."

Separately, DDTC also entered into a consent agreement with Goodrich Corporation and L-3 Communications imposing a $7 million penalty to settle alleged violations of the ITAR. Among other things, DDTC alleged that Goodrich and L-3, including L-3's subsidiary, L-3 Communications Avionics, Inc., formerly a subsidiary of Goodrich known as Goodrich Avionics Systems, Inc., violated the ITAR by omitting material facts from a commodity jurisdiction for a product containing QRS-11 gyrochips and making unauthorized exports of such products. Under the consent agreement, Goodrich will pay a civil penalty of $1,250,000 and L-3 will pay a civil penalty of $2,000,000. The remainder of the penalty will be spent on remedial compliance measures. Both companies are also required to appoint qualified individuals to serve as Special Compliance Officers for three years.

Labels: ,


Editor

Subscribe

Subscribe to our confidential mailing list

Mobile Version

Search Trade Law News

International Trade and Compliance Jobs

Jobs from Indeed

Archives

Categories

Disclaimer

  • This Site is presented for general informational purposes only and does not constitute legal advice. No attorney-client relationship is formed when you use this Site. Do not consider the Site to be a substitute for obtaining legal advice from a qualified attorney. The information on this Site may be changed without notice and is not guaranteed to be complete, correct or up-to-date. While we try to revise this Site on a regular basis, it may not reflect the most current legal developments. The opinions expressed on this Site are the opinions of the individual author.
  • The content on this Site may be reproduced and/or distributed in whole or in part, provided that its source is indicated as "International Trade Law News, www.tradelawnews.com".
  • ©2003-2015. All rights reserved.

Translate This Site


Powered by Blogger