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


Binoy Kampmark: The Fall Of Tony Abbott

The question was one of timing. The Coalition had been registering losses in poll after poll. The Abbott style hardly improved after a spill was forced on the party. Despite claiming that he would be ushering in a spring clean, he continued bypassing ministers and MPs... More>>



Pacific.Scoop: Smaller Pacific States Call For Coal Moratorium

PNG Loop: Leaders of the Pacific Smaller Island States have called on all nations – especially the advanced economies in the region – to rise to the challenge of climate change. They want to steer the world on a path where climate change is no longer a threat to earth. More>>


Austria And Germany To Take In Thousands Of Refugees

UN hails decision by Austria and Germany to take in thousands of migrants and refugees at Hungary border More>>

On International Day, Ban Calls On People Everywhere To Act

On International Day, Ban calls on people everywhere to act charitably in the face of human suffering More>>

Peace Deal ‘first Step’ In Resolving South Sudan Crisis

Children at a protection of civilians site in Juba, South Sudan, run by the UN Mission, perform at a special cultural event in March 2015. UN Photo/JC McIlwaine More>>

Yemen: Killing Or Maiming An Average Of Eight Children A Day

Killing or maiming an average of eight children a day, ‘brutal’ Yemen conflict must end – UNICEF More>>

Changing Habits/behaviours Key To Overcome Vaccine Hesitancy

Vaccine hesitancy can be caused by factors such as negative beliefs based on myths, misinformation. Fear of needles can be a factor for refusal. Photo: PAHO/WHO More>>

Burundi: Ban Condemns Assassination Of Senior Army Officer

Refugees from Burundi in South Kivu, Democratic Republic of the Congo (DRC). Photo: OCHA/Naomi Frerotte United Nations Secretary-General Ban Ki-moon has condemned the assassination Burundi’s former Army Chief of Staff, Colonel Jean Bikomagu, who ... More>>

Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news