Honeywell to pay USD13 million to settle alleged export violations

US-based Honeywell International has agreed to pay USD13 million to settle allegations that it illegally sent technical defence drawings to China, which is barred from receiving such sensitive information, according to the US State Department.

Honeywell is based in the US state of North Carolina. (Getty Images)

The exported material “contained engineering prints showing dimensions, geometries, and layouts for manufacturing castings and finished parts for multiple aircraft, gas turbine engines, and military electronics”, the department said on 3 May. The drawings, whose transfer “harmed US national security”, showed engine parts for the F-22 and F-35 fighters, the B-1B bomber, and the CTS800 helicopter engine.

Honeywell was also accused of sending such drawings to Canada, Ireland, Mexico, and Taiwan without obtaining required American government approval.

The alleged violations, which took place from 2011 to 2015 and in 2018, occurred while the industrial conglomerate’s Aerospace business was asking parts suppliers for price quotes, the department said. The department alleged that Honeywell violated the Arms Export Control Act and the International Traffic in Arms Regulations.

In a statement, Honeywell insisted that its “designs were inadvertently shared during normal business discussions”. While the technical information “was assessed as having an impact on national security”, it is “commercially available throughout the world”, Honeywell asserted. “No detailed manufacturing or engineering expertise was shared”.

The department credited Honeywell with voluntarily reporting the alleged violations, co-operating with the department’s review of the matter, and improving its export control compliance programme. “For these reasons, the department has determined that it is not appropriate to administratively debar Honeywell at this time” from defence export activity, the department said.

Part of the penalty – USD5 million – has been suspended on the condition that Honeywell will use the funds to further enhance its compliance programme.