U.S. Commerce Department Imposes a $2.12 Million Civil Penalty on McDonnell Douglas for Alleged Export Control Violations
 
November 19, 2001
 

The Bureau of Export Administration has imposed a $2.12 million civil penalty against McDonnell Douglas Corporation as part of a settlement of charges that the company violated federal export control laws. The penalty is the maximum fine possible for the alleged violations and is the second-largest civil fine ever imposed by the Commerce Department in an export control case. McDonnell Douglas was charged with submitting license applications containing false and misleading statements about the end-use and end-user of machine tools exported to China between 1994 and 1995; and with violating the conditions of its export licenses. The Department has already imposed a $1.32 million civil penalty and a denial of export privileges on a group of Chinese government-owned companies and their U.S. affiliates that had received the machine tools from McDonnell Douglas. In addition to the civil penalty, the Order and settlement agreement require that McDonnell Douglas' parent company, The Boeing Company, assume responsibility and liability for all exports under the Commerce Department's jurisdiction made or to be made by McDonnell Douglas.

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