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British Aerospace Company Receives BIS Warning Letter

U.K.-based aerospace manufacturer Vertical Aerospace said the Bureau of Industry and Security decided not to penalize it after determining the company likely violated U.S. export controls.

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The company submitted a voluntary self-disclosure to BIS in 2022, saying it “inadvertently” released export-controlled technology to four employees of a third party without “appropriate authorization” (see 2208250037). According to a recent SEC filing, the company said it received a letter from the BIS Office of Export Enforcement in early 2023 “confirming" that BIS "believed the referenced conduct constituted a violation(s) of the Export Control Reform Act.”

But BIS “decided not to refer this matter for criminal or administrative prosecution and closed the matter with the issuance of the warning letter,” Vertical Aerospace said. “The warning letter is in Vertical Aerospace’s record and will be considered if future violations occur.”

The company added that when it found out it may have illegally released controlled technology to the employees, “such access was terminated immediately upon discovery.”