Export violation fines would quadruple under House bill HR 5853

What does this do?

HR 5853 would increase the maximum fine for violating U.S. export control laws from $300,000 to $1.2 million per violation, or from twice to four times the value of the illegal transaction, whichever is greater. The higher penalties would apply only to violations occurring on or after the date the bill becomes law. Past violations would not be affected.

Who does it affect?

The bill directly affects businesses, manufacturers, researchers, and individuals who deal in goods or technology requiring a U.S. export license, including advanced electronics, software, weapons components, and certain industrial equipment. Companies involved in international trade, particularly in defense, technology, or manufacturing, face the most exposure.

Why does it matter?

The stated goal is to make penalties large enough to discourage illegal exports of controlled items. Raising the fine ceiling increases the financial risk for anyone who violates export control rules going forward.

What does it cost, and who pays?

• Current max fine: $300,000 per violation
• New max fine: $1.2 million per violation
• Transaction multiplier rises from 2x to 4x