U.S. Department of State Concludes $13 Million Settlement of Alleged Export Violations by L3Harris Technologies, Inc.

Washington, DC (STL.News) – The US Department of State released the following statement:

The U.S. Department of State has concluded an administrative settlement with L3Harris Technologies, Inc. (L3Harris) of Melbourne, Florida, 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.  The Department of 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 Department of State and L3Harris have reached an agreement 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.

The settlement demonstrates the Department’s role in strengthening U.S. industry by protecting U.S.-origin defense articles, including technical data from unauthorized exports.  The settlement also highlights the importance of obtaining appropriate authorization from the Department for exporting controlled articles.

Under the terms of the 36-month Consent Agreement, L3Harris will pay a civil penalty of $13 million.  The Department has agreed to suspend $6.5 million of this amount on the condition that the funds have or will be used for Department-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 also acknowledged the serious nature of the alleged violations, cooperated with the Department’s review, and instituted a number of compliance program improvements during the course of the Department’s review.  For these reasons, the Department has determined that it is not appropriate to administratively debar L3Harris at this time.