October 10, 2019 · Matthew Goldstein
HEXDI Integrates L3Harris Technologies Consent Agreement
Pursuant to the terms of a September 2019 Consent Agreement entered into by the Department of State and L3Harris Technologies, Inc. (“L3Harris”) [FN 1], the Department of State and L3Harris agreed to settle administrative proceedings for alleged violations of the Arms Export Control Act arising from activities by Harris Corp. prior to the recent merger between L3 Technologies Inc. and Harris Corp.
As part of the Consent Agreement, L3Harris agreed to institute a variety of remedial measures and to pay a civil penalty of $13 million dollars, $6.5 million of which is suspended for the costs of remedial compliance measures. It also agreed to perform external audits of its compliance program during the Agreement term and implement certain compliance measures.
HEXDI has integrated 12 additional government standards reflected in the remedial measures contained in the L3Harris Consent Agreement, which are now included in HEXDI modules 1 through 12. Many of these standards appeared in previous Department of State Consent Agreements, which are already integrated in HEXDI.
[FN 1] See DDTC Consent Agreement, L3Harris Technologies, Inc. (2019), available at www.pmddtc.state.gov/ddtc_public
This case is also indexed in HEXDI's Cost of Non-Compliance dataset, alongside other public export-control and sanctions enforcement actions.
The above is not intended as an exhaustive list of restrictions that may apply to a particular transaction nor advice for a specific transaction because the specifics of an individual case may implicate application of other U.S. laws as well as foreign laws that carry added or different requirements. In addition, U.S. export control and sanctions laws are frequently subject to change. Such changes can affect the continued validity of the information above.