State Details Debarment of Pratt & Whitney Canada for Export Violations
The State Department issued the official notice detailing its statutory debarment of Pratt & Whitney Canada in connection with Pratt & Whitney Canada’s conviction for its assistance to China in developing a military attack helicopter. The company will be prohibited for a period of at least 3 years from participating directly or indirectly in the export of defense articles, including technical data, or in the furnishing of defense services for which a license or other approval is required, State said.
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At the end of the 3-year period, which took effect June 28, Pratt & Whitney Canada will remain debarred unless export privileges are reinstated after a process of interagency consultations. Pratt & Whitney Canada may also apply for reinstatement beginning one year after the debarment date, State said.
“Carve-Outs” Granted for Some Activities; Otherwise, Exception Requests Required
State approved specific carve-outs from the statutory debarment of Pratt & Whitney Canada for the following categories of authorization requests:
- Support of U.S. Government programs;
- Support of coalition Operation Enduring Freedom; and
- Support of government programs for NATO and Major Non-NATO Ally countries.
All requests for authorizations, or use of exemptions, involving P&W Canada that fall within the scope of the specific carve-outs will be reviewed and action taken by the Directorate of Defense Trade Controls in the ordinary course of business, State said. All requests for authorizations involving P&W Canada that do not fall within the scope of the carve-outs must be accompanied by a specific transaction exception request, it said.
(See ITT’s Online Archives 12062907 for announcement of $75 million settlement in this case. See also ITT’s Online Archives 12070323 for the State Department’s guidance on how to handle exports after the Pratt & Whitney debarment.)