Media Note
Office of the Spokesman
Washington, DC
July 8, 2009


The U.S. Department of State and Air Shunt Instruments, Inc., (Air Shunt) have reached an agreement to resolve violations of the Arms Export Control Act (AECA) and International Traffic in Arms Regulations (ITAR) committed by Air Shunt between September 2003 and January 2004.

Under the Consent Agreement signed this week to settle the case, Air Shunt agreed to pay a civil penalty of $100,000, of which $70,000 will be suspended on the condition that they have already applied that amount to self-initiated, pre-Consent Agreement remedial compliance measures; and the remaining $30,000 will be suspended on the condition that they will apply this amount to Consent Agreement-authorized remedial compliance measures. Additionally, Air Shunt will institute enhanced compliance measures, and will have two independent audits of its compliance program conducted prior to the termination of the Consent Agreement.

Air Shunt has acknowledged the seriousness of its conduct and has cooperated with the Department’s investigation, expressed regret for these activities and taken steps to improve its compliance programs. Air Shunt has also undertaken to make amends by implementing the remedial compliance actions specified in this Consent Agreement. For these reasons, the Department has determined that an administrative debarment of Air Shunt is not appropriate at this time.

The Consent Agreement, and related documents are available to public on the website of the Directorate of Defense Trade Controls (www.pmddtc.state.gov).





PRN: 2009/694