Meggitt-USA Settles with US State Dept.

Meggitt-USA Inc. has settled all allegations with the U.S. State Department that the company violated the Arms Export Control Act (AECA) and the International Traffic in Arms Regulations (ITAR).

 

The State Department itemized 68 charges against the company, which included violations of a number of ITAR sections that the government generally categorized as unauthorized exports, re-exports, and retransfers resulting from unfamiliarity with the ITAR and/or improper classification of articles; and failures related to the administration of licenses and agreements, including failure to maintain specific records involving ITAR-controlled transactions.

 

Many of the violations reportedly occurred in subsidiary companies prior to those companies being acquired by Meggitt.

 

As part of the settlement, Meggitt-USA officials have taken steps to improve compliance programs and implement significant remedial compliance actions as specified in the agreement. The company will pay a cash penalty of $25 million, but will not face administrative debarment at this time.