Boeing Co. (NYSE:BA) has agreed to pay a $51 million penalty to settle a U.S. administrative charge related to unauthorized exports of technical data to countries including China and Russia.
What Happened: The settlement, announced by the U.S. State Department on Thursday, resolves nearly 200 violations of the Arms Export Control Act and the International Traffic in Arms Regulations laws, reported the Financial Times.
The violations, which occurred between 2013 and 2017, were found to have “caused harm to U.S. national security” by the State Department. The exports to Russia, during a period of restrictive measures on defense exports, “created the potential for harm to U.S. national security.”
Boeing disclosed these violations between 2017 and 2022, leading to an “extensive compliance review.” The company’s international employees and contractors were found to have been violating the law.
The majority of violations occurred before President Joe Biden implemented export controls aimed at preventing Chinese access to U.S. technology. Additionally, they occurred before Boeing revised its trade controls compliance program in 2020.
The settlement covers a range of incidents, including unauthorized exports and retransfers of technical data to foreign employees and contractors, unauthorized exports of defense articles, and ...