US State Department: Settlement with Keysight

US State Department: Settlement with Keysight

U.S. Department of State Concludes $6.6 Million Settlement of Alleged Export Violations by Keysight Technologies, Inc.

Washington, DC (STL.NewsThe US Department of State released the following statement:

The Department of State has concluded an administrative settlement with Keysight Technologies, Inc. (Keysight) of Santa Rosa, California, 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 Keysight 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 Keysight have reached an agreement pursuant to ITAR § 128.11 to address alleged unauthorized exports of technical data, and in this case, software used for testing radar equipment on fixed or mobile platforms.  The settlement demonstrates the Department’s role in strengthening U.S. industry by protecting technical data from unauthorized exports.  The settlement also highlights the importance of obtaining appropriate authorization from the Department for exporting software as well as determining proper export jurisdiction.

Under the terms of the 36-month Consent Agreement, Keysight will pay a civil penalty of $6,600,000.  The Department has agreed to suspend $2,500,000 of this amount on the condition that the funds will be used for Department-approved Consent Agreement remedial compliance measures.  Also, Keysight must hire an outside Special Compliance Officer for a term of two years and conduct an external audit to assess and improve its compliance program during the Consent Agreement term.

Keysight disclosed to the Department the alleged AECA and ITAR violations.  However, the Department first alerted Keysight of misclassification concerns and advised Keysight to obtain proper classification for the software through a Commodity Jurisdiction request, which led to the discovery of the violations.  Keysight cooperated with the Department’s review, including submitting one disclosure that acknowledged the charged conduct, implemented remedial compliance measures, and signed a statute of limitations agreement tolling the statutory period.  For these reasons, the Department has determined that it is not appropriate to administratively debar Keysight 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 Penalties and Oversights Agreements section of the Directorate of Defense Trade Controls’ website.  For additional information, please contact the Bureau of Political-Military Affairs’ Office of Congressional and Public Affairs at pm-cpa@state.gov.

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