Northrop Grumman Fined $400,000 For Illegal Exports

Northrop Grumman was fined $400,000 for illegal export of components for navigation equipment. The fine covers 131 violations of Export Administration Regulations.

BIS press release follows:

The Commerce Department’s Bureau of Industry and Security (BIS) announced today that Northrop Grumman Corporation (Northrop) of Los Angeles, Calif., has agreed to pay a $400,000 civil penalty to settle allegations that it committed 131 violations of the Export Administration Regulations, both in its own capacity and as successor to Litton Industries, Inc., which Northrop acquired in April 2001.

“This settlement is a reminder that comprehensive export control compliance is vital and obligatory. The Bureau of Industry and Security will continue to work with industry to increase awareness of the importance of comprehensive export control due diligence in corporate transactions, particularly in the post-9/11 environment,” said Mario Mancuso, Under Secretary of Commerce for Industry and Security.

The allegations primarily involved unlicensed exports of specially designed components for navigation equipment and module manufacturing data that were to destinations in the Philippines, Singapore, Malaysia, Italy, and the United Kingdom between January 1998 and September 2002.

Northrop voluntarily self-disclosed the violations and cooperated fully in the investigation. BIS considers voluntary self-disclosures to be a significant mitigating factor when negotiating settlements of administrative cases.