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RTX to pay $200 million fine for export mistakes, US State Department says
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RTX to pay $200 million fine for export mistakes, US State Department says
Sep 1, 2024 12:44 AM

WASHINGTON, Aug 30 (Reuters) - RTX Corp ( RTX ) will pay

a $200 million fine to settle allegations it violated export

laws by exchanging data and products with prohibited countries

including China, U.S. State Department records dated Thursday

said.

The fine stems from failure to abide by the

International Traffic in Arms Regulations (ITAR) by poorly

classifying and controlling exports of defense articles,

including classified ones, the documents said.

RTX voluntarily disclosed its mistakes and told

investors on its July 25 earnings call that the company had

aside about $1 billion to resolve three separate matters related

to export violations "primarily identified during the

integration of Rockwell Collins and Raytheon Co. into RTX."

The State Department notification released on Friday was

the first of the three.

"As part of the resolution of each of these three

matters, we will be required to retain independent compliance

monitors over the three-year term of the agreements," the

company said on the call.

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