US concludes USD 13 mln settlement with Honeywell over data transfers to foreign countries, including China

The American defense firm Honeywell International will pay a civil penalty of USD 13 million over allegations that it transferred technical military data to foreign countries, including China.

The US State Department announced it has reached a USD 13 million settlement with Honeywell International.

"The US Department of State has concluded an administrative settlement with Honeywell, the Charlotte, North Carolina-based company to resolve alleged violations of the Arms Export Control Act (AECA) and the International Traffic in Arms Regulations (ITAR)," US State Department said in a statement on Monday.

The Department of State and Honeywell have reached this settlement following an extensive compliance review by the Office of Defense Trade Controls Compliance in the Department's Bureau of Political-Military Affairs.

"The Department of State and Honeywell have reached an agreement pursuant to ITAR SS 128.11 to address alleged unauthorized exports and retransfers of ITAR-controlled technical data that contained engineering prints showing dimensions, geometries, and layouts for manufacturing castings and finished parts for multiple aircraft, gas turbine engines, and military electronics to and/or within Canada, Ireland, Mexico, the People's Republic of China, and Taiwan," the statement read.

The settlement demonstrates the Department's role in strengthening US industry by protecting US-origin defense articles, including technical data, from unauthorized exports.

Under the terms of the 36-month Consent Agreement, Honeywell will pay a civil penalty of USD 13 million. The settlement also highlights the importance of obtaining appropriate authorization from the Department for exporting controlled articles.

"The Department has agreed to suspend USD 5 million of this amount on the condition that the funds will be used for Department-approved Consent Agreement remedial compliance measures to strengthen Honeywell's compliance program," the statement said, adding, "in addition, for an initial period of at least 18 months, an external Special Compliance Officer will be engaged by Honeywell to oversee the Consent Agreement, which will also require the company to conduct one external audit of its compliance program during the Agreement term as well as implement additional compliance measures."

However, Honeywell voluntarily disclosed to the Department the alleged violations that are resolved under this settlement.

Honeywell also acknowledged the serious nature of the alleged violations, cooperated with the Department's review, and instituted a number of compliance program improvements during the course of the Department's review. For these reasons, the Department has determined that it is not appropriate to administratively debar Honeywell at this time, the statement added.

( With inputs from ANI )