BOEING said on Thursday it had reached a US$51 million settlement with the US State Department for numerous export violations including Chinese employees in China improperly downloading documents related to US Defence Department programmes.
The State Department said from 2013 through 2017 three Chinese employees at Boeing facilities in China downloaded technical data involving programmes including 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 AGM84E cruise missile.
Boeing said there were additional unauthorised downloads of technical data at Boeing and partner facilities in 18 countries, including Australia, Canada, France, Germany, Hong Kong, India, Italy, Japan, Kenya, Morocco, Russia, Singapore, South Korea, Spain, Thailand, Taiwan, Ukraine and the United Kingdom from 2013 to 2018.
The administrative settlement covers unauthorised 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 State Department said the settlement “highlights the importance of exporting defence articles only pursuant to appropriate authorisation” and followed “an extensive compliance review” by the government.
Boeing said it was “committed to our trade controls obligations, and we look forward to working with the State Department under the agreement.” The company added it was committed to continuous improvement of its trade controls compliance programme.
Boeing also engaged in some unauthorised exports of defence material and technical data related to defence programs to a number of countries including Israel, Turkey and Lebanon, the State Department said.
Boeing voluntarily disclosed the violations, which mostly occurred before 2020, and the government documents did not allege disclosure of classified material. The department said Boeing cooperated and “has incorporated numerous improvements to its compliance programme since the conduct at issue.”
The settlement includes a three-year consent agreement and US$51 million civil penalty, of which US$24 million will be suspended by the State Department so Boeing can use the funds for remedial compliance measures to strengthen its compliance programme.
For at least two years, Boeing will engage an external special compliance officer to oversee the agreement, which will also require two external audits, the State Department added. REUTERS
