RTX Corp, a major aerospace and defense company, has agreed to pay a $200 million fine to settle allegations of violating U.S. export laws, particularly by exchanging data and products with countries prohibited under the International Traffic in Arms Regulations (ITAR), including China. This decision was disclosed in U.S. State Department records dated Thursday.
The State Department’s investigation found that RTX failed to properly classify and control the export of defense articles, including some classified materials.
One significant incident involved the company mistakenly providing Chinese citizens with information about an F-22 Raptor Fighter Aircraft component. RTX employees misjudged the sensitivity of the information, leading to the unintentional export of restricted technology.
RTX Corp voluntarily disclosed these violations to the authorities. During a July 25 earnings call, RTX informed investors that it had allocated approximately $1 billion to resolve three separate legal issues, which were primarily identified during the integration of Rockwell Collins and Raytheon Co. into RTX. Friday’s $200 million fine is the first of these three legal matters.
RTX Corp will be required to implement rigorous compliance measures as part of the settlement. The company will retain independent compliance monitors over three years to ensure adherence to export control regulations. Half the fine, or $100 million, will fund this enhanced compliance program.
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