The importance of the correct classification and monitoring of ITAR-led articles and agreements cannot be sufficiently emphasized. Compliance with U.S. export rules is based on the correct classification of the item in question or technology. As noted above, many of the violations in the United Technologies case are due to the misclassification of defense items. It is equally important to correctly identify or identify ITAR items. How do you identify physical products under ITAR control? Are they stored, labelled or otherwise designated as ITAR in a separate area or are they mixed with non-ITAR products? How do you record and identify itar-controlled technology that is maintained electronically? Each of these issues, for which there is no due process, can lead to accidental offences. Non-compliance with agreements approved by the DDTC, such as TAAs, MLAs and WDAs, made a significant proportion of the offending offences. Companies such as Pratt & Whitney U.S. have committed significant violations of agreements approved by DDTC. For example, exceeding the scope of an AAT through training in engine design, development and production; exceeding the scope of several MLAs by the unauthorized manufacture of engine blacksmiths, the unauthorized provision of defence services, and the unauthorized transfer of technical data and defence services to sub-licences; and to exceed the value of three MLAs by $35 million. Other problems have been unauthorized transfers and unauthorized access of foreign nationals to unauthorized persons, including by foreign licensees, IT contractors and unauthorized personnel. It was announced yesterday that United Technologies (UTC) and two of its subsidiaries – Pratt & Whitney Canada and Hamilton Sundstrand – have reached an agreement agreement with the US State Department. The companies will pay $75 million in ITAR violations to settle a total of 576 separate charges for alleged misconduct.
As a result, the UTC Ministry proposed a consolidated administrative transaction decision that would ensure immediate, comprehensive and effective corrective actions in the company`s many business units and subsidiaries. Among the civil offenses that have been settled by UTC are several of them that arise from the unauthorized determination in 2002 and 2003 of the American origin, ITAR-operated engine software for military combat helicopters in the People`s Republic of China. Alongside the administrative comparison, UTC also agreed with the US Department of Justice to clarify the criminal allegations related to these transactions. Pratt & Whitney Canada Corporation (P&W Canada), a subsidiary of UTC, has pleaded guilty in the United States. Connecticut District Court for a criminal offense under the AECA and iTAR, while UTC, Hamilton Sundstrand and P&W Canada have also reached an agreement on deferred prosecutions of these and other related counts. UTC and the Ministries of State and Justice coordinated the resolution of civil and criminal cases. The approval agreement and related documents will be made available to the public on the Trade Controls Directorate website under www.pmddtc.state.gov/compliance/consent_agreements.html. Remember that people who sleep or faint due to alcohol or other drug use are unable to work and cannot consent to any sexual activity. Individuals may also be awake and somewhat functional and still be unable to work and unable to give consent.
The State Department says the consent agreement is not just about illegal exports, but also “false and late disclosures in the United States. The government on these illegal exports and many other compliance failures. While voluntary data was recognized as mitigating factors, it decided to charge the company with 576 offenses “given the damage to national security and the systemic, lengthy, and repeated nature of some offenses,” he said in a proposed indictment letter . . .