State Department Issues $13 Million Settlement Order for Export Violations

L3 Harris Technologies reached a $13 million settlement with the State Department for violating the Arms Export Control Act and the International Traffic in Arms Regulations, according to an order released Sept. 23 by the Directorate of Defense Trade Controls. The violations by Harris Corporation, a technology and defense contractor, occurred before it officially merged in July with L3 Technologies, an aerospace and defense company.

Harris violated U.S. export controls several times in its actions, including the illegal export of technical data “in the form of software,” and the unlicensed exports of tactical radios, military electronics and more between 2014 and 2019, according to a charging letter. The company also gave false statements on a technical assistance agreement and failed to report violated “license provisos” to DDTC within the required time frame, the letter said.

The company agreed to implement “remedial measures” for three years, according to a consent agreement, which includes an improved compliance program, increased oversight over ITAR and AECA-related activities, more frequent internal reviews and an appointed official approved by the DDTC to ensure compliance with the agreement. The official will monitor the company’s compliance program and provide regular status reports to the DDTC. L3 Harris will also be required to undergo two audits performed by auditors approved by the DDTC. The company also agreed to on-site reviews by the State Department while the consent agreement remains in effect.

The State Department will not debar the company because it “expressed regret” for the violations, took steps to improve its compliance program and agreed to “significant additional remedial compliance actions.”

The State Department said $6.5 million of the $13 million settlement will be suspended so long as L3 Harris applies the same amount to self-initiated “remedial compliance measures,” the order said. If the money is not “appropriately” applied to strengthening its compliance, L3 Harris may be forced to pay the money directly to the State Department.