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3/3/2024, 5:00 PM

Boeing pays 51 million dollars: Settlement in dispute over US export violations

Boeing Under Scrutiny for Unauthorized Data Export: Corporation Willing to Cooperate and Views Settlement Positively.

The aircraft manufacturer Boeing announced a deal with the U.S. Department of State on Thursday (local time) – however, it was not about a new aircraft or a large order volume. Instead, the company now has to pay a fine of 51 million U.S. dollars to settle numerous export violations. This was stated in a release from the department.

The Violations Total 199 Cases and Relate to the Law on the Control of Arms Exports and International Regulations on Arms Trade. According to the State Department, three Chinese employees downloaded technical data without authorization at Boeing facilities in China between 2013 and 2017. These pertain to programs such as the F-18, F-15, and F-22 fighter jets, the E-3 airborne warning and control system, the AH-64 Apache attack helicopter, and the AGM-84E cruise missile.

Boeing stated in a statement that unauthorized technical data from Boeing and partner companies was also downloaded in 18 other countries, including Russia, France, Japan, and Germany. However, the company emphasized that most of the violations occurred before 2020.

As part of the settlement, Boeing has now entered into a three-year agreement in which 24 million US dollars of the penalty will be suspended so that the company can use funds to improve its compliance program. The company expressed its willingness to cooperate with the State Department and declared its commitment to comply with trade control.

The Ministry Praised Boeing's Cooperation and Added that Since the Incidents, the Company has Implemented Numerous Improvements in its Compliance Program. It Will Also Appoint an External Compliance Officer for the Next Two Years to Ensure that the Agreement is Adhered to.

The significance of exporting defense goods with the appropriate authorization was underscored by this case. The company was sentenced to pay a fine and must now also comply with the terms of the agreement to avoid such violations in the future.

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