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Client Alert—Major Export Controls Penalty Signals New Scrutiny of Defense Sector Outsourcing
12-Apr-2007
by Nancy A. Fischer, Sanjay Jose Mullick
On March 28, 2007, the U.S. Department of Justice announced that ITT Corporation had agreed to pay fines totaling $100 million for unauthorized exports of night vision equipment technology to offshore vendors to whom it had outsourced aspects of their production. On April 11, 2007, the U.S. Department of State announced that ITT’s Night Vision Division would also be prohibited from exporting defense-related equipment and technologies for up to three years. These penalties send a clear message that the U.S. government will be looking closely at outsourcing in the defense sector. Companies engaged in such outsourcing should ensure that they are compliant with U.S. export controls.
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