US State Department alleges violations concerning export of micro-electromechanical technology in airliners

Boeing is trying to defuse a potential dispute with the US State Department, which is threatening to fine the company up to $47 million for allegedly allowing “significant military equipment” (SME) technology to be sold without an export licence to China and other countries in airliner deals between 2000 and 2003.

The State Department alleges more than 90 possible violations of the Arms Export Control Act and International Traffic in Arms Regulations and says it has been in negotiations with Boeing for several months. At the centre of the dispute is the use of a solid-state gyroscope microchip, the QRS-11, made by the Systron Donner Inertial division of California-based BEI Technologies.

The issue appears to concern the use of micro-electromechanical systems technology in the QRS-11, which is used in Thales Avionics’ integrated electronic standby instrument for several Airbus, Boeing, Bombardier and Embraer types. The QRS-11, described by its US manufacturer as a “gyro on a chip”, comprises one micro-machined piece and has no moving parts. Its lightweight, high-performance capability was originally developed for commercial applications, but has since transferred to military roles as a commercial-off-the-shelf product.

BEI says the unit is “fully qualified for use on numerous advanced aircraft, missile and space systems”. The QRS-11 can be used in missile seekers and optical line-of-sight systems, as well as for missile flight control and mid-course guidance, and continues to be classified by the State Department as SME.

The QRS-11, along with three other products, are listed on the BEI website as SME “under the International Traffic in Arms Regulations and, as such, requires either approval or prior notification to the Office of Defense Trade Controls, prior to the submission of any proposals for [these] products”. It also states: “An export licence must be obtained from the US Department of State before any of these products can be exported.”

Boeing says it “has been in discussions with the State Department for months concerning past deliveries of aircraft and spare parts with the QRS-11 sensor prior to the transfer of jurisdiction to the Commerce Department”.

The company allegedly declared on shipping certificates that no export licence was required, even after the US government had apparently told it otherwise, says the Seattle Times, which obtained a draft charging letter from the State Department. The paper claims Boeing exported 96 aircraft and 27 spare IMUs without licences.

In 2003, after the State Department became aware of the issue, a US presidential waiver allowed the delivery of two 737s to China Southern Airlines. In 2004, after petitioning from industry, the QRS-11 microchip was reclassified as a commercial item when packaged for civil avionics, while export control of sensors inside civil aircraft was transferred to the Department of Commerce.

Guy Norris / Los Angeles

Source: Flight International