UTC pays for export violations

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HARTFORD, Conn., June 29 (UPI) -- United Technologies Corp. is paying $55 million to the U.S. government for having violated U.S. export control regulations.

The amount is part of a resolution deal with the U.S. Department of Justice and U.S. State Department over "the improper export to China of modifications to Hamilton Sundstrand engine control software incorporated into P&WC helicopter engines from 2002-2005."

Pratt and Whitney Canada is a United Technologies subsidiary.

"Export controls are an integral part of safeguarding U.S. national security and foreign policy interests," United Technologies Chairman and Chief Executive Officer Louis Chenevert said. "As a supplier of controlled products and technologies to the Department of Defense and other domestic and international customers, we are committed to conducting business in full compliance with all export laws and regulations.

"We accept responsibility for these past violations and we deeply regret they occurred."

United Technologies voluntarily reported its violations of the State Department's International Traffic in Arms Regulations.

Under the resolution agreement with authorities, the company will invest $20 million in a compliance program.

United Technologies said $35 million of the $55 million penalty will be paid in cash over four years. Payment of the remainder is being "suspended suspended subject to certification and approval of qualifying compliance expenditures."