3D Systems fined $20 million for US export violations

March 7, 2023

The US Department of State has concluded an administrative settlement with 3D Systems, Rock Hill, South Carolina, to resolve alleged violations of the US Arms Export Control Act (ACEA) and the International Traffic in Arms Regulations (ITAR). It was stated that a settlement, totaling $20,000,000, has been reached following an extensive compliance review by the Office of Defense Trade Controls Compliance in the Department’s Bureau of Political-Military Affairs.

The Department of State and 3D Systems agreement was in pursuant of ITAR section 128.11, to address alleged violations occurring between 2012-2018 involving the unauthorised exports of technical data to Germany, unauthorised exports and retransfers of technical data to China, a proscribed destination under ITAR section 126.1, unauthorised reexports of technical data to Taiwan, unauthorised exports of technical data to foreign-person employees, and the failure to maintain ITAR records.

Subscribe to our weekly newsletter
Sign up

Under the terms of the thirty-six month Consent Agreement, 3D Systems will pay a civil penalty of $20,000,000. The Department has agreed to suspend $10,000,000 of this amount on the condition that the funds will be used for Department-approved Consent Agreement remedial compliance measures to strengthen 3D Systems’ compliance programme. In addition, the company will engage an external Special Compliance officer for at least the first year of the Consent Agreement and will conduct two external audits of its ITAR compliance programme and implement additional compliance measures.

The settlement was said to demonstrate the Department’s role in strengthening US industry by protecting US-origin technical data from unauthorised exports. The settlement also highlights the importance of obtaining appropriate authorisation from the Department before exporting ITAR-controlled technical data.

The company cooperated with the State Department’s review and has been undertaking corrective actions to address the misconduct by expanding the scope of its internal investigation to cover exports of technical data, implementing remedial compliance measures, selling its business unit primarily responsible for ITAR activity, and signing a statute of limitations agreement tolling the statutory period. As such, 3D Systems will not be administratively debarred.


Download Metal AM magazine

In the latest issue of Metal AM magazine

Download PDF

Extensive AM industry news coverage, as well as the following exclusive deep-dive articles:

  • Metal powders in Additive Manufacturing: An exploration of sustainable production, usage and recycling
  • Inside Wayland Additive: How innovation in electron beam PBF is opening new markets for AM
  • An end-to-end production case study: Leveraging data-driven machine learning and autonomous process control in AM
  • Consolidation, competition, and the cost of certification: Insight from New York’s AM Strategies 2024
  • Scandium’s impact on the Additive Manufacturing of aluminium alloys
  • AM for medical implants: An analysis of the impact of powder reuse in Powder Bed Fusion

The world of metal AM to your inbox

Don't miss any new issue of Metal AM magazine, and get the latest industry news. Sign up to our twice weekly newsletter.

Sign up

Discover our magazine archive…

The free to access Metal Additive Manufacturing magazine archive offers unparalleled insight into the world of metal Additive Manufacturing from a commercial and technological perspective through:

  • Reports on visits to leading metal AM part manufacturers and industry suppliers
  • Articles on technology and application trends
  • Information on materials developments
  • Reviews of key technical presentations from the international conference circuit
  • International industry news

All past issues are available to download as free PDFs or view in your browser.

Browse the archive

Looking for AM machines, metal powders or part manufacturing services?

Discover suppliers of these and more in our comprehensive advertisers’ index and buyer’s guide, available in the back of Metal AM magazine.

  • AM machines
  • Process monitoring & calibration
  • Heat treatment & sintering
  • HIP systems & services
  • Pre- & post-processing technology
  • Powders, powder production and analysis
  • Part manufacturers
  • Consulting, training & market data
View online
Share via
Copy link
Powered by Social Snap