Kurt M. Campbell Deputy Secretary of State | Official Website
The U.S. Department of State has finalized an administrative settlement with Precision Castparts Corp. (PCC) of Lake Oswego, Oregon. This resolves 24 violations related to the Arms Export Control Act (AECA) and the International Traffic in Arms Regulations (ITAR). The settlement follows a comprehensive compliance review by the Office of Defense Trade Controls Compliance within the Bureau of Political-Military Affairs.
This agreement addresses PCC's unauthorized exports to foreign employees from countries including Bhutan, Burundi, El Salvador, Honduras, Mexico, and Peru. These exports involved tools such as wax pattern and core dies used in producing casting blades for gas turbine engines.
All violations were voluntarily disclosed and occurred before 2020. PCC cooperated with the Department’s investigation and has since improved its compliance program.
Under a 36-month Consent Agreement, PCC will pay a $3 million civil penalty. The Department has agreed to suspend $1 million if it is used for approved remedial compliance measures to enhance PCC's compliance program. Furthermore, PCC will appoint an Internal Special Compliance Officer for at least two years to oversee this agreement, which also requires an external audit of its ITAR compliance program.
The settlement underscores the Department’s commitment to national security and foreign policy by regulating technical data exports to foreign employees. It also emphasizes the necessity of exporting technical data only with proper authorization.
Documents related to the Consent Agreement will be accessible for public inspection at the Department of State's Public Reading Room and on its website under Penalties & Oversights Agreements.
For further information, contact the Bureau of Political-Military Affairs’ Office of Congressional and Public Affairs at pm-cpa@state.gov.
