Boeing announced Thursday that it has reached a $51 million settlement with the U.S. Department of State for a number of export violations, including the improper downloading of documents related to U.S. Department of Defense programs by Chinese employees in China.
The State Department said that between 2013 and 2017, three Chinese employees at a Boeing facility in China flew aircraft such as the F-18, F-15, and F-22 fighter jets, the E-3 Aircraft Warning and Control System, and the AH-3. They announced that they had downloaded technical data related to the program. 64 Apache attack helicopter and his AGM84E cruise missile.
Boeing operates in Australia, Canada, France, Germany, Hong Kong, India, Italy, Japan, Kenya, Morocco, Russia, Singapore, South Korea, Spain, and from 2013 to 2018 Thailand, Taiwan, Ukraine, and the United Kingdom.
According to the State Department, the administrative settlement covers illicit exports of technical data and resolves 199 violations of the Arms Export Control Act and International Traffic in Arms Regulations.
The State Department said the settlement “underscores the importance of exporting defense items only with appropriate authorization” and follows an “extensive compliance review” by the government.
Boeing said it is “complying with its trade control obligations and looks forward to working with the Department of State under the agreement.” The company added that it is committed to continuous improvement of its trade control compliance program.
According to the State Department, Boeing was also involved in the illegal export of some defense materials and technical data related to defense programs to a number of countries, including Israel, Turkey, and Lebanon.
Boeing voluntarily disclosed the violations, most of which occurred before 2020, and no confidential material was disclosed in government documents. The department said Boeing has cooperated and has “incorporated numerous improvements to its compliance program since the conduct in question.”
The settlement includes a three-year consent agreement and a $51 million civil penalty, $24 million of which will be suspended by the State Department and Boeing to use the funds to take corrective actions to strengthen its compliance program. I can do it.
The State Department added that Boeing will hire a special external compliance officer to oversee the agreement for at least two years, which will also require two external audits.
