IEEPA strengthens BIS enforcement for export violations
Senior U.S. Commerce Department officials praised a new law recently signed by President Bush that strengthens penalties for violations of the country’s export control regulations.
The International Emergency Economic Powers Enhancement Act also clarifies how civil penalties may be assessed for certain unlawful acts.
“The new law provides significant additional support for our cases, which we intend to apply in an equitable, deliberative and rigorous way,” said Mario Mancuso, the Commerce Department’s undersecretary for industry and security, in a statement. “Most important, we think the enhancements will better align incentives to improve overall compliance with our regulations.”
Significant changes to IEEPA include:
' Additional unlawful acts. Clarifies how civil penalties may be assessed against those who conspire to violate, or cause a violation of any license, order, regulation, or prohibition of title 50 of the U.S. Code.
' Administrative penalties. A civil penalty amounting to the greater of $250,000, or twice the value of the transaction that is the basis of the violation (enhanced penalties), may be imposed for each violation of IEEPA.
' Effective date/retroactivity. The new civil penalties apply to enforcement action that are pending, which BIS interprets an action to be if a final order has not been signed, or commenced on or after Oct. 16.
' Criminal penalties. Violators can be fined up to $1 million and/or up to 20 years in prison. Additionally, criminal liability is provided for anyone who “willfully conspires to commit, or aids or abets in the commission of” an unlawful act described in the statute.
' Effective date: The new criminal penalties apply to criminal enforcement actions occurring on or after Oct. 16.
In a press conference Thursday, Mancuso said he’s aware that the enhanced IEEPA penalty provision sent a “shockwave” through the export industry, and urged calm. “We don’t apply (maximum penalties) in an automatic way,” he said. ' Chris Gillis
IEEPA strengthens BIS enforcement for export violations
