By Mike Stone
WASHINGTON (Reuters) -RTX Corp 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 (NYSE:COL) and Raytheon (NYSE:RTN) 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.
