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.


© Scoop Media

World Headlines


Haiti: $5 Million To Kick-Start Aid In Wake Of Hurricane Matthew

UN emergency fund allocates $5 million to kick-start assistance in wake of Hurricane Matthew More>>


Not Helen Clark: António Guterres Favourite For Next UN Secretary-General

Former Portuguese Prime Minister António Guterres has emerged as the clear favourite to become the next United Nations Secretary-General following the sixth secret ballot held today by the UN Security Council, which is expected to take a formal decision tomorrow and forward Mr. Guterres’ name to the 193-Member General Assembly for final confirmation. More>>


Preliminary Results: MH17 Investigation Report

The Joint Investigation Team (JIT) is convinced of having obtained irrefutable evidence to establish that on 17 July 2014, flight MH-17 was shot down by a BUK missile from the 9M38-series. According to the JIT there is also evidence identifying the launch location that involves an agricultural field near Pervomaiskyi which, at the time, was controlled by pro-Russian fighters. More>>


At The UN: Paris Climate Agreement Moves Closer To Entry Into Force

The Paris Agreement on climate change moved closer toward entering into force in 2016 as 31 more countries joined the agreement today at a special event hosted by United Nations Secretary-General Ban Ki-moon. More>>



Gordon Campbell: On The End Game In Spain (And Other World News)

The coverage of international news seems almost entirely dependent on a random selection of whatever some overseas news agency happens to be carrying overnight... Here are a few interesting international stories that have largely flown beneath the radar this past week. More>>

Amnesty/Human Rights Watch: Appalling Abuse, Neglect Of Refugees On Nauru

Refugees and asylum seekers on Nauru, most of whom have been held there for three years, routinely face neglect by health workers and other service providers who have been hired by the Australian government, as well as frequent unpunished assaults by local Nauruans. More>>


Other Australian Detention

Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news