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ARTICLE · 23 APRIL 2006

Government Boosts Export Violation Penalties

Foley & Lardner LLP
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The cost of violating the Export Administration Regulations (EAR) and most U.S. trade sanctions programs just got a lot higher. As part of the recent extension of the USA Patriot Act, Congress increased fines for civil violations of the International Emergency Economic Powers Act (IEEPA) from $11,000 to $50,000.

United StatesGovernment, Public Sector
Foley & Lardner
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The cost of violating the Export Administration Regulations (EAR) and most U.S. trade sanctions programs just got a lot higher. As part of the recent extension of the USA Patriot Act, Congress increased fines for civil violations of the International Emergency Economic Powers Act (IEEPA) from $11,000 to $50,000. Penalties for willful violations of the Act also got stiffer, increasing from 10 to 20 years imprisonment.

IEEPA is the statutory authority under which the EAR have continued in force. It also provides the statutory basis for most of the regulations administered by the Office of Foreign Assets Control (OFAC), including the embargoes on Iran and Sudan and the terrorism and drug trafficking regulations. U.S. sanctions against Cuba are based upon the Trading With the Enemy Act (TWEA); violations of those regulations remain unchanged at $65,000 per transaction. Penalties for violations of the International Traffic in Arms Regulations (ITAR) also remain unchanged at $500,000 per

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