3D Systems Corporation to Pay $20 Million for Export Violations

US-based 3D printing company 3D Systems Corporation was just fined 20 million dollars for violating export regulations.

According to the US Department of State’s Defence Trade Compliance Control, the company has violated the Arms Export Controls Act, and the International Traffic in Arms Regulations(ITAR).

The violations conducted between 2012-18 involved the export of confidential and unauthorized technical data to German, Chinese, & Taiwanese entities and individuals. The violations are made serious by the fact that the data was exported on multiple occasions. In addition, the company has failed to maintain its ITAR records.

Currently, the US has offered a Consent agreement to the company, wherein, they have to pay $20 million to the US government. However, half of this penalty totaling $10 million will be forgiven if 3D Systems Incorporated actively strengthens its compliance program in cooperation with the Government in the next 3 months. This decision by the US government is historical, since it marks one of the first times where exports of technical data are a part of compliance measures.

The company itself is actively participating in implementing proper measures, selling the unit responsible for the ITAR violation and signing a statute of limitations for the statutory period of 3 months.

If 3D Systems fails to pay up or comply with the Department’s requirements, it will be debarred and sanctioned further. To avoid potential violations like 3D Systems, you should consider signing up to Trademo Sanctions Screener.