Factbox: What Are the Rules Airbus Admits to Breaking in U.S.? (excerpt)
(Source: Reuters; published Oct 31, 2017)
By Tim Hepher
Airbus says it has discovered and reported to U.S. authorities certain inaccuracies in past declarations to the State Department over the sale of defense goods and services under the International Traffic in Arms Regulations (ITAR).

ITAR is the official name for a 40-year-old set of rules governing the export of defense goods and data perceived to have implications for U.S. national security.

The rules were conceived in the Cold War mainly to prevent sensitive U.S. arms technology being sold or re-exported to countries deemed to be a risk, or covered by arms embargoes.

Countries currently on the ITAR blacklist include Belarus, China, Cuba, Iran, North Korea, Syria and Venezuela.

A further set of countries including Afghanistan and Iraq generally face restrictions, but may have ITAR-friendly export licenses issued on a case-by-case basis.

TRANSPARENCY

Aside from this main function, the ITAR rules impose secondary requirements for transparency and disclosure.

Companies dealing in ITAR-controlled goods must declare the use of sales agents or the payment of political contributions over $5,000 or commissions over $100,000 to the State Dept’s Directorate of Defense Trade Controls (DDTC).

These are set out in Part 130 of the ITAR regulations, the section of the rules that Airbus says it may have breached. (end of excerpt)


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