L3 settles alleged export violations

The U.S. Department of State has concluded an administrative settlement with L3Harris Technologies Inc. (L3Harris) of Melbourne, Fla., to resolve 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. State and L3Harris have reached this settlement following an extensive compliance review by the Office of Defense Trade Controls Compliance in the Department’s Bureau of Political-Military Affairs. The agreement was reached in pursuant to ITAR § 128.11 to address alleged unauthorized exports of defense articles, including technical data involving radios; providing a false statement regarding the promised payment of a commission; violating provisos, terms, and conditions of authorizations; and failing to properly manage temporary export licenses. Under terms of the 36-month Consent Agreement, L3Harris will pay a civil penalty of $13M. State suspended $6.5M of that amount on the condition that funds have or will be used for State-approved Consent Agreement remedial compliance measures. In addition, an external Special Compliance Officer will be engaged by L3Harris to oversee the Consent Agreement, which will also require the company to conduct two external audits of its compliance program during the agreement term as well as implement additional compliance measures. L3Harris voluntarily disclosed to the Department the majority of the alleged AECA and ITAR violations, which are resolved under this settlement. L3Harris acknowledged the serious nature of the alleged violations, cooperated, and instituted a number of compliance program improvements. State has determined that it is not appropriate to administratively debar L3Harris at this time. The Consent Agreement and related documents will be available for public inspection in the Public Reading Room of the Department of State and on the Penalties and Oversights Agreements section of the Directorate of Defense Trade Controls’ website (Department of State 09/23/19) Gulf Coast Note: L3 Technologies – operating as L3 Harris Technologies – entered into a May 2018 definitive agreement to sell its Vertex Aerospace business in Madison, Miss., to American Industrial Partners for $540M in cash. As part of the agreement, L3 will also sell its Crestview (Fla.) Aerospace and TCS business units, which are included in the Aerospace Systems business segment. https://www.state.gov/u-s-department-of-state-concludes-13-million-settlement-of-alleged-export-violations-by-l3harris-technologies-inc/