The Department of Commerce and Department of State have increased the civil monetary penalties for export violations to account for inflation. Regardless of when the violation occurred, it is important to recognize that these new amounts are retroactive and can be charged against each violation.
Here is a summary of the penalty increases:
The maximum amount for an EAR civil violation is now $307,922 or two times the value of the transaction (50 U.S.C. 4819), effective January 15, 2020.
Penalties for late AES filings are now $1,419 per day; with the maximum per violation increasing to $14,194. All other AES violations are now $14,194 (13 U.S.C. 304 & 13 U.S.C. 305(b)), effective January 15, 2020.
The penalty for Directorate of Defense Trade Controls (DDTC) civil penalties has increased to $1,183,736 per violation (22 U.S.C. 2778 (e)), effective January 14, 2020.
The adjusted penalty amounts serve as a reminder to keep your export compliance program and training up to date. Make sure you monitor your export transactions and processes, and if you do discover an export violation, consider making a voluntary disclosure.
Contact us and ask how to we can help you build a custom export compliance program.