BIS Fines Princeton University for Export Violations, Orders Audit

Princeton University was fined $54,000 and ordered to audit its export control compliance program after committing 37 U.S. export violations, the Bureau of Industry and Security said in a Feb. 1 order. BIS said the university illegally exported “various strains and recombinants” of an animal pathogen, which were controlled for chemical and biological weapons reasons, to overseas research institutions without the required BIS licenses.

Between 2013 and 2018, Princeton exported $27,000 worth of pathogen strains and recombinants for research in countries including China, Japan, Israel, Singapore, the United Kingdom, Switzerland, France and South Korea. The exports, which violated the Export Administration Regulations, were controlled under three separate Export Control Classification Numbers.

As part of a settlement agreement, BIS said Princeton agreed to conduct an external and internal audit of its export control compliance program. The university must hire an independent third party with export control expertise to conduct the external audit, which will be submitted to BIS. Both the external and internal audits will cover one year of the university’s compliance activities, BIS said, and Princeton must provide the agency with a “detailed plan of corrective actions to be taken” and other export control compliance documents if the audits reveal any EAR violations. Princeton must also submit to BIS two reports outlining “enhancements” to its compliance program. If the university does not fulfill the audit or complete the other terms of the settlement, BIS said, it may deny Princeton's export privileges.

The university discovered the violations during an export compliance training session it conducted in 2018, Michael Hotchkiss, a Princeton spokesperson, said in a Feb. 2 email. Hotchkiss said each of the shipments “supported” U.S. government-funded research, adding that the university believes “most, if not all” of the exports would have received BIS licenses “if licenses had been sought.” He also said Princeton is currently implementing the “enhanced” compliance training required by the settlement agreement. “The university now regularly obtains export licenses for animal pathogen exports,” Hotchkiss said.

Kevin Kurland, BIS's acting assistant secretary for export enforcement, said the agency “strongly encourages research institutions to maintain robust export compliance programs,” adding that self-disclosures will help mitigate penalties. The case also highlights BIS's commitment to investigate export violations at research institutions and “hold them accountable,” said Jonathan Carson, the special agent in charge of the Office of Export Enforcement's New York Field Office.