The Bureau of Industry and Security (BIS) has simplified voluntary reporting of export violations. The revisions to the Export Administration Regulations (EAR) streamline the process and update penalty guidelines to better reflect the severity of the offense. These amendments are meant to motivate exporters to report violations sooner rather than later.
Voluntary Report Changes
- Dual-Track Processing: Minor or technical violations will be resolved within 60 days, while significant ones will be handled by enforcement attorneys.
- Streamlined Submission: Companies can submit minor or technical violations with an abbreviated narrative and bundle multiple violations into one quarterly submission.
- Increased Transparency: Entities that deliberately hide significant violations will face harsher penalties.
- Return of Unlawful Exports: Anyone can report violations and request permission to return unlawful exports.
Revised Penalty Guidelines
- Increased Discretion: The Office of Export Enforcement (OEE) can adjust penalties based on individual circumstances.
- Non-Monetary Resolutions: Cases with non-egregious conduct may receive non-monetary penalties.
- Human Rights Considerations: Enabling human rights abuse will be considered when assessing penalties.
- Exceptional Cooperation: Disclosing others’ misconduct leading to enforcement action will be rewarded.
These changes aim to encourage companies to report export violations promptly and honestly. With a nearly 80% increase in significant voluntary self-disclosures (VSDs) and 30% more industry tips leading to actionable leads, it’s clear these efforts are paying off. Reach out to Mohawk Global Trade Advisors for expert VSD filing and compliance guidance.