$2.7m enforcement action highlights ‘troubling’ 3D printing trend
The US Bureau of Industry and Security (‘BIS’) has said that, as part of a settlement agreement, it has ‘issued an order imposing an administrative penalty of $2,777,750 on 3D Systems Corp. (3D Systems)’ – and also ordered that the company ‘retain a third-party consultant and to complete two audits of its export controls compliance program.’
BIS says this resolves allegations regarding ‘19 violations by 3D Systems of the Export Administration Regulations (EAR) by exporting controlled aerospace technology and metal alloy powder to China without the required license, and by exporting controlled technology to Germany without the required license.’
BIS said: ‘[D]uring the time period at issue, 3D Systems provided 3D printing, cast urethane modeling, and injection molding services to customers across the United States and abroad. While 3D Systems maintained its own manufacturing facilities in the United States, it also regularly e-mailed design documents, blueprints, and technical specifications to its then-subsidiary’s office in China to generate a price quote for the services requested. The e-mails, which included controlled U.S. technology, constitute an export of technology subject to the EAR.’
BIS Office of Export Enforcement Director, John Sonderman said the action highlighted ‘a troubling trend’ of US companies to ‘offshore 3D printing operations and ignoring the export controls on the technical data sent overseas to facilitate the 3D printing.’
Sonderman added that the enforcement action ‘would not have been possible without a defense contractor coming forward when they noticed that a price quotation indicated that the quoted parts were to be manufactured in Asia using controlled technology.’
