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The State Department announced on Monday that Precision Castparts, the Oregon-based metal components manufacturer specializing in aircraft engines, generators, and other industrial equipment, has agreed to a $3 million settlement for violating U.S. export restrictions on parts for gas turbine engines.
Precision Castparts Export Violations
Precision Castparts, historically located in Portland, is owned by Warren Buffett’s investment firm, Berkshire Hathaway, moved its headquarters from South Portland to Lake Oswego in 2022 to better fit the company’s long-term space needs.
The State Department indicated that export violations took place sometime prior to 2020 but Precision Castparts had disclosed the violations voluntarily.
The export violation related to components including wax patterns and core dies that were accessed by employees from Bhutan, Burundi, El Salvador, Honduras, Mexico, and Peru. Precision Castparts alleged that the components never left the U.S.
Precision Castparts spokesperson David Dugan said that during the integration of a newly acquired business, Precision Castparts identified employees who were legally eligible to work in the U.S. but did not meet the federal definition of a “U.S. person” for export purposes.
The company said it took action immediately to comply with U.S. export control laws. They also disclosed the discovery voluntarily. He said the company takes its trade compliance and other regulatory obligations very seriously.
Precision Castparts is committed to the continuous strengthening of its systems and processes.
Precision Castparts Settlement
In terms of the $3 million settlement, $1 million of Precision Castparts’ penalty is suspended provided the company spends that amount to improve its compliance with federal export laws.
A special compliance officer will also be appointed by Precision Castparts to oversee the implementation of the agreement.
By limiting the sale of certain advanced products and technology to other countries, export restrictions are designed to protect national security.
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