HR5853-119

What This Bill Does

This bill tightens civil penalties under the Export Control Reform Act of 2018. It amends section 1760(c)(1)(A) by raising one maximum civil penalty from $300,000 to $1,200,000. It also increases the alternative transaction-value penalty from twice the value of the transaction to four times the value of the transaction.

The change applies to violations of the Export Control Reform Act, and violations of regulations, orders, or licenses issued under that Act, committed on or after enactment. That means the bill does not rewrite export-control licensing rules directly; it increases the civil financial exposure for future violations of the existing export-control regime.

Who Benefits and How

BIS export enforcement officials benefit from higher penalty ceilings that can strengthen settlement leverage and deterrence. Federal national-security officials benefit if larger penalties discourage illegal transfers of controlled items, technology, software, or services. Export-control compliance attorneys benefit from increased demand for penalty-risk analysis and internal compliance advice. Companies that already invest in export compliance benefit if competitors face stronger consequences for violations. Congressional oversight committees benefit from a clearer statutory penalty increase for future ECRA violations.

Who Bears the Burden and How

Exporters subject to ECRA controls face higher civil penalty exposure for violations committed after enactment. Companies handling controlled technologies must strengthen screening, license compliance, recordkeeping, and employee training to avoid larger penalties. Freight forwarders and intermediaries involved in controlled exports face higher risk if they participate in violating transactions. BIS administrative enforcement staff must apply the new penalty ceilings in investigations, charging decisions, settlements, and penalty calculations. Small exporters may bear higher compliance costs because the downside risk of a violation rises sharply.

Key Provisions

• Provides a fixed Export Control Reform Act civil penalty maximum of $1,200,000 instead of $300,000.
• Modifies the alternative transaction-value penalty from twice the value of the transaction to four times the value.
• Requires the increased penalties to apply to future violations of ECRA and regulations, orders, or licenses issued under ECRA.
• Provides stronger civil deterrence without changing the underlying export-control licensing categories.