Bureau of Industry and Security (BIS) Commerce Department and Department of State have adjusted their civil monetary penalties to account for inflation. Below is a summary of the increases.
EAR Civil Violations
- Maximum civil monetary penalties for violations of the Export Controls Act of 2018 from $328,121to $353,534. Effective January 15, 2023.
AES Filings
- 13 U.S.C. 304, Collection of Foreign Trade Statistics (2002), each day’s delinquency of a violation; total of not to exceed maximum per violation, from $1,525 to $1,643; maximum per violation, from $15,256 to $16,438.
- 13 U.S.C. 305(b), Collection of Foreign Trade Statistics (2002), violation, maximum from $15,256 to $16,438. Effective January 15, 2023.
ITAR Violations
- Amended in accordance with section 9708 of Public Law 117-263, the new maximum penalty under 22 U.S.C. 2778 (22 CFR 127.10(a)(1)(i)) is the greater of $1,200,000 or the amount that is twice the value of the transaction that is the basis of the violation with respect to which the penalty is imposed. Effective January 11, 2023.
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.