Who Can Be Penalized? INDIVIDUALS and/or the ORGANIZATION!

Note:  The amounts indicated below are  2021/2022 figures, penalties are increased for inflation on an annual basis and may be increased by a change in regulation. 

Violations of the Export Control Reform (USC Title 50, Chapter 58, Subchapter 1)

Criminal Penalties (for willful violation):  Maximum $1,000,000 for each violation or imprisonment of up to twenty years, per violation, pr both.

Civil Penalties:  Fine of not more than $308,901 or an amount twice the value of the ransaction that is the basis of the violation with respect to which the penalty is imposed, whichever is greater; revocation of a license; prohibition on the person's ability to export, reexport, or in-country transfer any items controlled under this subchapter. 

Violations of International Traffic in Arms Regulations (ITAR)

Criminal Penalties (for willful violation): Maximum $1,000,000 for each violation or imprisonment of up to twenty years, per violation.

Civil Penalties: Maximum $1,163,217 for each violation

In addition, suspension or debarment from government contracts; seizure or forfeiture of the item; and/or revocation of export privileges.

Violations of the Export Administration Regulations (EAR)

Criminal Penalties (for willful violation): may result in the institution paying a fine of up to $1,000,000 or five times the value of the exports (whichever is greater) for each violation; and the individual may be fined up to $250,000 or be imprisoned for up to twenty years, or both, for each violation.

Criminal Penalties (for knowing violation): may result in the institution paying a fine of up to the greater of $50,000 or five times the value of the exports for each violation; and the individual may be fined up to the greater of $50,000 or five times the value of the exports or be imprisoned for up to five years, or both, for each violation.

Civil Penalties: include $12,000 for each violation or $120,000 for each violation for items involving national security or up to $311,562 for each violation involving sanction programs under the International Emergency Economic Powers Act (IEEPA); suspension or debarment from government contracts; seizure or forfeiture of the item; and/or revocation of export privileges.

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

• The denial of export privileges; and/or 
• The exclusion from exporting practice; and/or 
• Loss of federal funds
• Seizure/Forfeiture of goods.

Violations of Foreign Asset Control Regulations

International Emergency Economic Powers Act (IEEPA) Penalties

• Civil penalty: may result in the institution paying a fine of up to $311,562 per violation or twice the transactional value whichever is greater; and the individual may be fined up to $311,562 per violation or twice the transactional value whichever is greater.;
• Criminal penalty: may result in the institution paying a fine of up to $1,000,000 per violation; and the individual may be fined up to $1,000,000 or twenty years incarceration, or both per violation.

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

• The denial of export privileges; and/or
• The exclusion from exporting practice; and/or
• Seizure/Forfeiture of goods.

Criminal sanctions for willful violations and civil penalties may be imposed.