BIS suspends export privileges for companies sending controlled drawings and blueprints to China
The US Bureau of Industry and Security (‘BIS’) says it has issued a temporary denial order (‘TDO’) suspending the export privileges of three US-based companies – Quicksilver Manufacturing Inc., Rapid Cut LLC, and U.S. Prototype Inc. – 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.’
The TDO describes how Quicksilver Manufacturing Inc., Rapid Cut LLC, and U.S. Prototype Inc., ‘collectively utilizing the same rental mailbox, received export-controlled drawings from their domestic customers to 3-D-print requested items,’ and that, ‘without their customers’ advance consent or knowledge, these drawings were provided to manufacturers in China to 3-D-print the items without the required U.S. Government authorizations. The items were then imported into the United States to be provided to the ordering customers.’
BIS said that ‘the information illegally sent to China included sensitive prototype space and defense technologies. This matter remains under investigation and customers of Quicksilver Manufacturing Inc., Rapid Cut LLC, and U.S. Prototype Inc. are encouraged to review their records to determine whether intellectual-property or export-controlled technology was provided and/or potentially compromised.’
BIS noted that ‘TDOs are some of the most significant civil sanctions BIS can issue, cutting off not only the right to export items subject to the EAR from the U.S., but also to receive or participate in exports from the United States or reexports of items subject to the EAR.’
