L3Harris agrees to $13 million settlement following ITAR violations

L3Harris Technologies has agreed to pay $13 million to settle allegations that Harris, before the merger, violated the Arms Export Control Act and the International Traffic in Arms Regulations.

According to a proposed charging letter posted by the State Department, the company’s violations were "in connection with unauthorized exports of defense articles" and violations of agreements and licenses. The State Department said it alleged 131 violations.

Among the violations detailed in the proposed charging letter are the unauthorized exports of technical data in the form of software, unauthorized exports of tactical radios and unauthorized exports of military electronics to Canada.

In another example, the State Department says that in January 2019, Harris temporarily exported without authorization the T7 Remote Control Vehicle to Thailand, Singapore and Germany.

In a consent agreement signed by R. Clarke Cooper of the State Department on Sept. 19 and Bill Brown, L3Harris’ chief executive, on Sept. 17, the State Department notes that Harris shared many of the issues through voluntary disclosures. However, the department also writes the company did not voluntarily disclose other matters, "to include violations the Department uncovered."

The order issued by the State Department says the $13 million figure will cover a "complete settlement of the civil violations" outlined in the proposed charging letter.

Of that total, $2.5 million must be paid to the State Department within 10 days, another $2 million within one year and another $2 million no later than two years after the order. The order says the remaining $6.5 million "will be assessed for remedial compliance measures" and "suspended on the condition that Respondent applies this amount to self-initiated, pre-Consent Agreement remedial compliance measures undertaken prior to the date of this Order and to Consent Agreement-authorized remedial compliance costs."

The order notes that if the company does not apply these funds to remedial compliance measures, it may be required to pay the State Department immediately.

In a statement, an L3Harris spokesman said the agreement "will not result in any administrative debarment, interruption of obtaining license authorizations, nor disrupt exports."

"As noted in the agreement, the company voluntarily disclosed a majority of the alleged violations, cooperated with the State Department's review, and began instituting self-initiated compliance improvements prior to the settlement," the statement said.