Export Controls: Penalties

Introduction

This topic presents an overview of legal authorities and penalties for export control violations.

The Export Administration Regulations

The Export Administration Regulations (EAR) provides the following sanctions:

Criminal Sanctions

Willful Violations

University

A fine of up to the greater of $1,000,000 or five times the value of the exports for each violation.

Individual

A fine of up to $250,000 or imprisonment for up to ten years, or both, for each violation.

Knowing Violations

University

A fine of up to the greater of $50,000 or five times the value of the exports for each violation.

Individual

A fine of up to the greater of $50,000 or five times the value of the exports or imprisonment for up to five years, or both, for each violation.

Civil (Administrative) Sanctions

The imposition of a fine of up to $12,000 for each violation, except that the fine for violations involving items controlled for national security reasons is up to $120,000 for each violation.

Additionally, for each violation of the EAR any or all of the following may be imposed:

• The denial of export privileges; and/or

• The exclusion from practice; and/or

• Seizure/Forfeiture of goods.

The International Emergency Economic Powers Act

The International Emergency Economic Powers Act (IEEPA) sanctions are as follows:

Criminal Sanctions

University

A fine of up to $1,000,000 for each violation.

Individual

A fine of up to $1,000,000 or imprisonment for up to twenty years, or both, for each violation.

Civil (Administrative) Sanctions

University

A fine of up to $250,000 for each violation, or twice the value of the transaction, whichever is greater.

Individual

A fine of up to $250,000 for each violation, or twice the value of the transaction, whichever is greater.

Additionally, for each violation of the IEEPA any or all of the following may be imposed:

• the denial of export privileges; and/or

• the exclusion from practice; and/or

• seizure/forfeiture of goods.

NOTE: Penalties associated with violations of the Export Administration Regulations presently fall under the purview of IEEPA, pending reauthorization of the Export Administration Act (EAA).

The International Traffic in Arms Regulations

The International Traffic in Arms Regulations (ITAR) provides the following sanctions:

Criminal Sanctions

University

A fine of up to $1,000,000 for each violation

Individual

A fine of up to $1,000,000 or up to ten years in prison, or both, for each violation.

Civil Sanctions

University

A fine of up to $500,000 for each violation.

Individual

A fine of up to $500,000 for each violation.

Additionally, for any violation of the ITAR either or both of the following may be imposed:

• the denial of export privileges; and/or

• seizure/forfeiture of goods.

The Office of Foreign Assets Control

The Office of Foreign Assets Control (OFAC) provides the following sanctions:

Criminal Sanctions

University

A fine of up to $1,000,000 for each violation.

Individual

A fine of up to $1,000,000 or up to twenty years in prison, or both, for each violation.

Civil Sanctions

University

A fine of up to $55,000 for each violation.

Individual

A fine of up to $55,000 for each violation.

Additionally, for any violation of the OFAC regulations, seizure and forfeiture of goods may result.