Washington, DC - The State Department has concluded an administrative settlement with Microwave Engineering Corporation (MEC) of North Andover, Massachusetts, to resolve an alleged violation of the Arms Export Control Act, 22 U.S.C. 2751 et seq., and the International Traffic in Arms Regulations (ITAR), 22 CFR Parts 120-130. The agreement was reached pursuant to ITAR § 128.11 and addresses the alleged unauthorized export of technical data to a foreign person employee of MEC from the People’s Republic of China, a country against which the United States maintains an arms embargo.
The settlement was reached following an extensive compliance review by the Department’s Office of Defense Trade Controls Compliance (DTCC) in the Bureau of Political-Military Affairs, and highlights the Department’s responsibility to protect U.S. defense articles, including technical data, from unauthorized export. It also highlights the importance of ensuring effective oversight of intra-company transfers of controlled items (including technical data), and the need to obtain appropriate authorization from the Department for such transfers to foreign person employees.
Under the terms of the Consent Agreement, MEC will pay a civil penalty of $100,000. The company voluntarily disclosed to the Department the facts addressed under this settlement, acknowledged the serious nature of the allegations, cooperated with the Department’s review, and implemented extensive remedial measures. For these reasons, the Department determined that an administrative debarment of MEC was not appropriate, and additional remediation (and related oversight) was not necessary.