Boeing to Pay $51M to Settle Alleged Export Control Violations

The State Department fined Boeing $51 million after the company allegedly violated a range of U.S. export controls, in the largest stand-alone civil fine by the Directorate of Defense Trade Controls in years. The violations, which mostly occurred before 2020, included illegal exports to foreign employees and contractors working in more than 15 countries; a trade compliance specialist fabricating an export license to illegally ship defense items abroad; and violations of the terms and conditions of other export licenses. Boeing voluntarily disclosed the violations between 2017 and 2022.

As part of a consent agreement released Feb. 29, Boeing must pay $27 million to DDTC within two years and use the remaining $24 million to make specific improvements to its compliance procedures. The company must also hire a DDTC-approved special compliance officer to oversee its compliance with the International Traffic in Arms Regulations.