The State Department fined Esterline Technologies, an aerospace and defense technology company, $20 Million for inadequate export controls that led to the unauthorized export of defense articles and technical information.
DTCC [Office of Defense Trade Controls Compliance] concluded that many of the 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. The U.S. Munitions List, administered by the State Department as part of the International Traffic in Arms Regulations, consists of categories of defense articles and services that cannot be exported without a license issued by the department.
Under the agreement, Esterline will engage a “special compliance official” to oversee the terms of the agreement including two audits of its compliance program that will include implementing additional compliance measures, such as improved policies and procedures, and additional training for employees and principals.
Esterline will avoid administrative debarment because of its cooperation with the government, disclosure and acknowledgement of the serious nature of the alleged violations, and the steps the company has taken to implement extensive remedial measures.
Why is Trade Compliance important? Failing to comply with U.S. Export Control laws can have significant impacts on your business.
If you have trade compliance questions, please contact us at Superior Freight Services, Inc. at superior@supfrt.com
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