State Department concludes $3m export violations settlement with Oregon firm
The US State Department has reached a $3 million administrative settlement with Oregon-based Precision Castparts Corp (‘PCC’) to resolve multiple alleged violations of export control regulations.
The agreement addresses 24 alleged violations of the Arms Export Control Act (AECA), 22 U.S.C. § 2751 et seq., and the International Traffic in Arms Regulations (‘ITAR’), 22 C.F.R. parts 120-130.
The settlement was reached ‘following an extensive compliance review by the Office of Defense Trade Controls Compliance in the Department’s Bureau of Political-Military Affairs,’ the Department said in a media note, 7 October.
The violations involved ‘unauthorized exports to foreign person employees from Bhutan, Burundi, El Salvador, Honduras, Mexico, and Peru pertaining to tools (specifically, wax pattern and core dies) and wax patterns consumed in the subsequent production of casting blades used in gas turbine engines,’ it explained.
PCC voluntarily disclosed the violations, which occurred before 2020. The company has cooperated with the Department’s review and has since improved its compliance programme.
Under the terms of the 36-month Consent Agreement, PCC will pay a $3 million civil penalty. The State Department has agreed to suspend $1 million of this amount, provided the funds are used for ‘Department-approved Consent Agreement remedial compliance measures to strengthen PCC’s compliance program.’
The agreement also requires PCC to appoint an Internal Special Compliance Officer (‘ISCO’) for a minimum of two years to oversee the Consent Agreement, which will also require an external audit of its ITAR compliance program and implementation of additional compliance measures.
The settlement ‘demonstrates the Department’s role in furthering the national security and foreign policy of the United States by controlling the export of technical data to foreign person employees,’ and ‘highlights the importance of exporting technical data only pursuant to appropriate authorization from the Department,’ the State Department emphasised.
