Export Compliance: What are the Penalties for Export Violations?
 

Noncompliance can have serious consequences. Criminal and administrative penalties can be levied, depending upon the nature and severity of the violation. SAO could lose current and/or future licensing privileges, AND administrative and criminal penalties can be levied against both SAO and individual employees.

Criminal Sanctions

Knowing Violations

Where it can be shown that an individual has reason to suspect an action might be in violation of U.S. export control laws and regulations, but proceeds without verification, the penalty, per offense, can be imprisonment for up to five (5) years plus a fine of the greater of $50,000 or five (5) times the value of the exports involved.

Willful Violations

Where it can be shown that an individual has knowledge that the export will be used for the benefit of a sensitive country (to which exports are restricted), the penalty, per violation, can be imprisonment for up to ten (10) years or a fine of up to $250,000, or both. For firms, the penalty for each violation can be the greater of $1 million or up to five (5) times the value of the exports involved.

In addition, the Comprehensive Crime Control Act gives the courts authority to increase substantially the Export Administration Act's criminal penalties.

Administrative Sanctions

For each violation of Export Administration Regulations, any or all of the following may be imposed:

  • Revocations of export licenses. General denials of export privileges.
  • Exclusion from practice.
  • Imposition of fines of up to $10,000 per violation (for a violation of national security export controls, up to $100,000).

For more information, see:

 
 

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