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The U.S. Department of State has concluded an administrative settlement with Island Pyrochemical Industries Corp. (IPI), to resolve three violations of the Arms Export Control Act (AECA), 22 U.S.C. § 2751 et seq., and the International Traffic in Arms Regulations (ITAR), 22 C.F.R. Parts 120-130.  The Department of State and IPI reached this settlement following an extensive compliance review by the Office of Defense Trade Controls Compliance in the Department’s Bureau of Political-Military Affairs.

The administrative settlement between the Department of State and IPI concluded pursuant to ITAR § 128.11, addresses the misrepresentation of material facts on export license applications and engagement in unauthorized brokering activities involving ITAR-controlled ammonium perchlorate, which is controlled under U.S. Munitions List Category V(d)(2), from the People’s Republic of China, a proscribed country for exports and temporary imports of defense articles and defense services, under ITAR § 126.1 at the time of the violations.

The settlement demonstrates the Department’s role in promoting the national security and foreign policy of the United States by controlling the export of defense articles.  The settlement also highlights the importance of obtaining the necessary authorization from the Department prior to engaging in brokering activities.

The Consent Agreement and related documents will be available for public inspection in the Public Reading Room of the Department of State and on the Penalties and Oversights Agreements section of the Directorate of Defense Trade Controls’ website.

For additional information, please contact the Bureau of Political-Military Affairs Office of Congressional and Public Affairs at pm-cpa@state.gov.

U.S. Department of State

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