Boeing Agrees To A $51 Million Settlement W US State Department To Resolve Export Violations

Boeing has agreed to a $51 million settlement with the US State Department to resolve nearly 200 export violations, including the unauthorized transfer of technical data to China. The violations, dating back years, were voluntarily disclosed by Boeing, with specific infractions including the unauthorized export of defense items and technical information to foreign personnel. As part of the settlement, Boeing will pay a civil penalty, appoint an external compliance officer, and undergo audits to strengthen its compliance program.

As part of the settlement, Boeing will pay a civil penalty of $51 million, with $24 million of the penalty suspended to allow the company to enhance its compliance program. Additionally, Boeing will be required to appoint an external special compliance officer for at least two years and undergo at least two external audits of its compliance program. A spokesperson for Boeing expressed the company's commitment to fulfilling its trade control obligations, noting that most of the violations occurred prior to significant improvements made to its compliance program since 2020.

The settlement also addresses unauthorized downloads of technical data at Boeing and partner facilities in 18 countries from 2013 to 2018, including Australia, Canada, France, Germany, and others. The violations, involving breaches of the Arms Export Control Act and International Traffic in Arms Regulations, also extended to unauthorized exports of defense material and technical data to countries like Israel, Turkey, and Lebanon. Despite these infractions, the government documents did not allege the disclosure of classified material.
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Both Boeing and the State Department emphasized the importance of adhering to proper authorization procedures for exporting defense articles, with the settlement reflecting the outcome of an extensive compliance review. The agreement includes a three-year consent decree and the imposition of a $51 million civil penalty, a portion of which will be suspended to facilitate Boeing's implementation of remedial compliance measures.