Export control violations cost Raytheon

May 2, 2013 at 3:03 PM
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WASHINGTON, May 2 (UPI) -- Raytheon is paying the U.S. government $8 million in penalties and remedial expenditures for alleged civil violations of export controls.

The U.S. State Department said an administrative agreement was reached following extensive enforcement review of "hundreds" of alleged violations of the Arms Export Control Act and the International Traffic in Arms Regulations.

"The department's Office of Defense Trade Controls Compliance in the Bureau of Political-Military Affairs determined that Raytheon's numerous violations demonstrated a recurring, corporate-wide weakness in maintaining effective ITAR controls," the State Department said in its announcement of the agreement.

"Over the course of many years, Raytheon business units have disclosed to the department hundreds of ITAR violations, largely consisting of failures to properly manage department-authorized agreements and temporary import and export authorizations."

The department said violations included inaccurate tracking, valuation and documentation of temporary exports and imports of controlled hardware; manufacture of such hardware by Raytheon's foreign partners in excess of approved amounts; and failures to timely obtain and submit required documents.

Raytheon apparently discovered the violations and reported them to the State Department.

The four-year Consent Agreement obligates Raytheon to pay a civil penalty of $8 million. However, the State Department agreed to suspend payment of half that amount if the funds have or will be used for "department-approved, pre- and post-Consent Agreement remedial compliance measures."

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