Background

The Bureau of Industry and security has issued a temporary denial order suspending the export privileges of three U.S.-based companies for 180 days for the unauthorized export to China of technical drawings and blueprints used to 3-D-print satellite, rocket, and defense-related prototypes. This type of information is subject to strict U.S. export controls due to its sensitivity and importance to U.S. national security.

BIS states that the companies, collectively utilizing the same rental mailbox, received export-controlled drawings from their domestic customers to 3-D-print requested items. Without their customers’ advance consent or knowledge, the companies provided these drawings to manufacturers in China to 3-D-print the items without the required U.S. government authorizations. The items were then imported into the U.S. to be provided to the ordering customers.

According to BIS, the TDO denies the three companies all of the export privileges described in part 764 of the Export Administration Regulations, which include applying for, obtaining, or using any license, license exception, or export control document, or engaging in or benefitting from such transactions. The order was issued for a renewable 180-day period and cuts off not only the companies’ ability to export from the U.S. but also their ability to receive or participate in exports from the U.S.

For more information U.S. export controls and how to ensure your company is in compliance, please contact attorney Kristine Pirnia at (202) 730-4964 or via email.

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