Among the penalties for its 131 alleged violations, L3Harris faces a civil fine of $13 million, of which $6.5 million may be suspended if the company puts the money into corrective compliance fees in accordance with the agreement. It is important to note that the penalties in the agreement apply to the “agents and successors” of the business, which means that the terms of the approval agreement apply to the buyer, even if the business is sold or is part of a merger. [2] Definition of agreement agreements, sanctions and surveillance agreements, arms control directorate, www.pmddtc.state.gov/ddtc_public?id=ddtc_kb_article_page&sys_id=384b968adb3cd30044f9ff621f961941. Another important indication of the L3Harris approval agreement is the fact that DDTC`s investigation comes from a board of a DoD agency, DTSA. Companies should be aware that regulators within different executive departments can and will be able to communicate with each other in order to pursue the objectives of joint export controls. When DTSA contacts DDTC, DDTC may also contact the Department of Commerce`s Office of Industry and Security (“BIS”) on matters within the agency`s jurisdiction. The L3Harris agreement serves as a reminder to businesses, who participate in the production or export of defence-related products, that their export compliance programs should be holistic and will cover all potential rules regarding the trade of the agencies concerned, including, but without limitation, doD, DDTC, BIS, the Treasury Department of Foreign Asset Control, which manages U.S. sanctions rules, and the U.S. Census, which manages U.S. trade rules. On September 19, 2019, the U.S. Commercial Defence Controls Directorate (DDTC) entered into an approval agreement with L3Harris Technologies, Inc.

(“L3Harris”) for alleged violations of the Arms Export Control Act (“AECA”) and the International in Traffic Arms Regulations (“ITAR”). L3Harris, an aerospace and defence technology company, allegedly committed offences involving the unauthorized export of defence articles and technical data, as well as failure to provide accurate and complete reports and licensing violations. [1] See In the Matter of: L3Harris Technologies, Inc., Order, United States Department of State Bureau of Political-Military Affairs (September 19, 2019), www.pmddtc.state.gov/sys_attachment.do?sysparm_referring_url=tear_off&view=true&sys_id=43579882db44c0107ede365e7c9619cc. The L3Harris Approval Agreement demonstrates the importance of a strong compliance program to prevent export violations and act as a mitigating factor in cases where an unintentional error occurs despite the existence of a well-maintained compliance program.