The Department of State reached an administrative agreement with Airbus SE to resolve the alleged civil violations of the Arms Export Control Act (AECA), 22 U.S.C. § 2751 et seq., and the International Traffic in Arms Regulations (ITAR), 22 C.F.R. Parts 120-130. The Department of State and Airbus SE reached this settlement following an extensive compliance review by the Office of Defense Trade Controls Compliance in the Department’s Bureau of Political-Military Affairs.

The Department of State and Airbus SE reached an agreement pursuant to ITAR § 128.11 to address providing false statements on authorization requests; the failure to provide accurate and complete reporting on political contributions, commissions, or fees that it paid, or offered or agreed to pay, in connection with sales; the failure to maintain records involving ITAR-controlled transactions; and the unauthorized re-export and retransfer of defense articles.

The settlement demonstrates the Department’s role in strengthening U.S. industry by protecting U.S.-origin defense articles, including technical data from unauthorized exports. The settlement highlights the importance of obtaining appropriate authorization from the Department for exporting controlled articles and providing timely and accurate reporting of payment of fees related to the sale of defense articles to the armed forces of a foreign country or international organization.

Under the terms of the 36-month Consent Agreement, Airbus SE will pay a civil penalty of $10 million. The Department agreed to suspend $5 million of this amount on the condition the funds have or will be used for Department-approved Consent Agreement remedial compliance measures. In addition, an external Special Compliance Official will be engaged by Airbus SE to oversee the Consent Agreement, which will also require the company to conduct two external audits of its compliance program during the Agreement term as well as implement additional compliance measures.

Airbus SE voluntarily disclosed to the Department the alleged AECA and ITAR violations, which are resolved under this settlement. Airbus SE also acknowledged the serious nature of the alleged violations, cooperated with the Department’s review, and instituted several compliance program improvements during the Department’s review. For these reasons, the Department has determined that it is not appropriate to administratively debar Airbus SE at this time.

The Consent Agreement and related documents will be available for public inspection in the Public Reading Room of the Department of State and on Penalties and Oversights Agreements section of the Directorate of Defense Trade Controls’ website.

For additional information, please contact the Bureau of Political-Military Affairs’ Office of Congressional and Public Affairs at pm-cpa@state.gov.