Boeing has agreed to pay $51 million to settle numerous export violations with the U.S. State Department, including the improper downloading of sensitive documents related to U.S. defense programs by employees in China. 

The ​​settlement ​covers ​unauthorized exports ​to ​China ​and 17 other countries ​over ​several years​​.

According to the State Department, Boeing self-disclosed that between 2013 and 2017, three employees at Boeing facilities in China downloaded technical data on numerous military programs without authorization.

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• Boeing settles with U.S. State Dept for $51M over unauthorized defense tech exports.

• The ​​settlement ​covers 2013​-2018 violations, including improper downloads in China.

• ​Boeing admits violations involving exports to 18 countries, including ​​China.

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Boeing Pays $51 Million to Settle U.S. Export Violations Case

The ​programs included the F-15, F-18, and F-22 fighter jets, the E-3 airborne warning and control system, the AH-64 Apache attack helicopter, and the AGM-84E cruise missile​.

In addition to the violations in China, Boeing admitted to unauthorized exports of defense materials and data to Israel, Turkey, Lebanon, and other countries between 2013 and 2018. 

The ​State ​Department said ​this ​involved ​defense programs ​and ​technologies but ​did ​not ​include the ​disclosure of ​classified ​information​.​​

The settlement includes $51 million in civil penalties, of which $24 million is suspended as long as Boeing uses those funds to strengthen its export compliance program. 

Boeing will also be monitored by an external special compliance officer for two years and undergo two external audits.

“Boeing ​is committed to our trade controls obligations, and we look forward to working with the State Department under the agreement,” the company said in a statement. 

Boeing ​added that it has incorporated many improvements to its compliance program since these violations occurred, mostly before 2020.

​The ​​State ​​Department said the ​settlement ​​highlights ​the importance ​of ​tight ​controls ​on ​sensitive ​U​.​S​​​. defense technology exports and resolving the violations through a consent agreement. 

​The ​government’s ​investigation ​included an ​extensive review ​of ​Boeing’s compliance ​with ​export regulations​​.

​This​ agreement ​represents ​the culmination ​of U​.​S. ​government ​concerns ​​over technology transfers to China involving Boeing, one of the nation’s major defense contractors. 

​It ​underscores the ​​ongoing scrutiny of U.S. aerospace companies to ensure ​compliance ​with ​strict ​export regulations​, ​especially ​in ​​China​​​.