World Video | Defence | Foreign Affairs | Natural Events | Trade | NZ in World News | NZ National News Video | NZ Regional News | Search

 


State Department Concludes Settlement of Alleged Violations

State Department Concludes Settlement of Alleged AECA and ITAR Violations by Esterline Technologies Corporation

Media Note
Office of the Spokesperson
Washington, DC
March 6, 2014

________________________________________
The U.S. Department of State concluded an administrative settlement with Esterline Technologies Corporation of Bellevue, Washington, to resolve alleged violations of the Arms Export Control Act (AECA) (22 U.S.C. § 2778) and the International Traffic in Arms Regulations (ITAR) (22 C.F.R. Parts 120-130). Esterline agreed to enter into a consent agreement with the Department pursuant to ITAR Section 128.11. The agreement was reached following an extensive compliance review by the Department’s Office of Defense Trade Controls Compliance (DTCC) in the Bureau of Political-Military Affairs. This settlement addresses hundreds of alleged civil violations of the AECA and ITAR, and highlights the Department’s responsibility to protect U.S. defense articles, including technical data, and defense services from unauthorized use.

DTCC determined that Esterline demonstrated inadequate corporate oversight and failed to establish an adequate AECA and ITAR compliance program in its defense trade activity. Over the course of many years, Esterline and its operating divisions, subsidiaries, and business units disclosed to the Department hundreds of alleged AECA and ITAR violations consisting of unauthorized exports of defense articles, including technical data, and defense services; unauthorized temporary imports of defense articles; violations of terms and conditions of licenses or approvals granted; exports of defense articles in excess of quantity and value authorized; improper use of exemptions; and failure to file or filing of incorrect documentation with the Automated Export System.

DTCC’s compliance review concluded that many of these alleged violations occurred because Esterline did not properly establish jurisdiction over its defense articles and technical data, did not properly administer licenses and agreements, and had incomplete or poor recordkeeping. The alleged violations involved defense articles, technical data, and defense services that are or were controlled at the time of the alleged violations by the U.S. Munitions List under the following current or former categories: IV(h), VI(i), VI(f), VI(g), VII(g), VII(h), VIII(h), VIII(i), XI(a), XI(c), XI(d), XII(e), XII(f), XV(e), XV(f), XX(c), and XX(d).

Under the terms of a three year Consent Agreement with the Department, Esterline will pay a civil penalty of $20 million. The Department agreed to suspend $10 million of this amount on the condition the Department approves expenditures for self-initiated, pre-Consent Agreement remedial compliance measures and Consent Agreement-authorized remedial compliance costs. Additionally, Esterline will engage a Special Compliance Official to oversee the Consent Agreement, and Esterline will conduct two audits of its compliance program as well as implement additional compliance measures, such as improved policies and procedures, and additional training for employees and principals.

Esterline disclosed the alleged AECA and ITAR violations resolved under this settlement to the Department, acknowledged the serious nature of the alleged violations, cooperated with the Department, and implemented or has planned extensive remedial measures. For these reasons, the Department determined that an administrative debarment of Esterline was not appropriate at this time.

ENDS

© Scoop Media

 
 
 
 
 
World Headlines

 

Release Of 200 Nigerian Girls Held Captive By Boko Haram

UN envoy Gordon Brown welcomes release of 200 Nigerian girls held captive by Boko Haram More>>

Ban Calls For Immediate End To Hostilities In Northern Mali

Chadian UN peacekeepers heading to their base in Tessalit, northern Mali. Photo MINUSMA/Marco Dormino More>>

New UN Special Envoy On Ebola Response Visit To Sierra Leone

29 April 2015 – The United Nations World Health Organization ( WHO ) today said that surveillance and community engagement still require improvement in some areas of Guinea and Sierra Leone where new cases continued to surface, a day after the ... More>>

Somalia Registers Record Export Of Livestock In 2014

Somalia registers record export of livestock in 2014 due to trade boost with Gulf States More>>


United States: Riots In Baltimore – National Guard Sent In [graphic Images]

Riots have broken out in Baltimore following the funeral of Freddie Gray, a 25 year old black man who died from injuries sustained while in police custody. More>>

West Papua: “Lest We Forget”

AS Anzac approaches and Australians and New Zealanders remember those who fought and lost their lives on Anzac Day, it is hoped we will also remember the unfree people of the Pacific region and in particular those who are still suffering from human ... More>>

Iran: 81 Executions In One Week

Coincident with mass executions in the prisons of Ghezel-Hessar, Karaj and other cities, the anti-human regime of mullahs sent 16 other prisoners to the gallows in Mashhad and Birjand (northeastern Iran). Twelve of them were hanged collectively ... More>>

Al-Shabaab: Four Unicef Staff Killed In Somalia

Four UNICEF staff members have been killed in an attack on their vehicle in Garowe, Somalia. Four other UNICEF colleagues are in a serious condition. The IED (improvised explosive device) attack occurred when the staff were travelling from their guest ... More>>

UN: Suicide Attack In Jalalabad Condemned

NEW YORK/KABUL/GENEVA (18April 2015) – “I strongly condemn the brutal suicide attack that coincided with my visit to Jalalabad today,” said United Nations Assistant Secretary-General for Human Rights Ivan Šimonović during his visit to Afghanistan. ... More>>

Save The Children: STC Urges EU Leaders To Act To Prevent More Mass Drownings

Save the Children Urges EU Leaders to Act to Prevent More Mass Drownings at Sea. More>>

ALSO:

Japan: Independent Experts Slam Japan’s New Whaling Plan

Independent experts slam Japan’s new whaling plan and declare no more whales need to be killed for Antarctic research More>>

Gaza Strip: Attacks In The Border Areas

Following disengagement from the Gaza Strip in September 2005, Israel unilaterally and illegally established a so-called “buffer zone”, an area prohibited to Palestinians along the land and sea borders of the Gaza Strip. The precise area designated by ... More>>

Get More From Scoop

 
 
 
 
 
World
Search Scoop  
 
 
Powered by Vodafone
NZ independent news