Export Control in the News: AeroFlex’s ITAR Settlement and Standards for Export Compliance

The latest A&D news: Aeroflex’s $8 million dollar settlement with the U.S. Department of State for violations of the Arms Export Control Act (AECA) and the International Traffic in Arms Regulations (ITAR).

The State Department reported it conducted an “extensive compliance review” and discovered “inadequate corporate oversight and a systemic and corporate-wide failure” which resulted in unauthorized exports and re-exports of electronics, microelectronics and related technical data that are subject to ITAR.

As part of its settlement with the State Department, if Aeroflex can demonstrate compliance with AECA and ITAR for both physical exports and technical data, the state department will waive $4 million of the $8 million civil penalty.

This is yet another event in a history of violations that point to the need for standards that allow companies to control how they share data across applications and systems. A&D recognizes this problem and is currently working on a solution. Check out this 5-minute overview of  the Transglobal Secure Collaboration Program, a coalition of government agencies, A&D companies, and software vendors. This video describes TSCP’s Information Labeling and Handling (ILH) initiative, which promises to help prevent future export violations for ITAR technical data, once the ILH specification is broadly adopted.

EK Koh, Vice President of Solution Management, is responsible for industry-focused solution offerings at NextLabs. He works closely with industry experts to address problems in industries such as Financial Services, Aerospace and Defense, Manufacturing, Healthcare, Life Sciences, and Energy.

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