BIS Amends its Regulations to Reflect New $50,000 Maximum Civil Penalty for Violations of the EAR Under the IEEPA, Etc.
The Bureau of Industry and Security (BIS) has issued a final rule which amends the Export Administration Regulations (EAR) to reflect a maximum $50,000 civil monetary penalty for violations of the EAR during periods when the EAR are continued under the Export Administration Act (EAA) of 1979, as amended, the International Emergency Economic Powers Act (IEEPA), as amended, or other statutory authority.
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BIS states that this amendment conforms the EAR to amendments made to the IEEPA by the USA PATRIOT ACT Improvement and Reauthorization Act of 2005 (Public Law (P.L.) 109-177), which was enacted on March 9, 2006.
$50,000 Maximum Civil Penalty Available for Violations on/after March 9, 2006
As a result, for any violations of the EAR or license, order or authorization thereunder that occur on or after March 9, 2006 when the EAA is lapsed and IEEPA is the authorizing statute, BIS may impose a civil monetary penalty of up to $50,000 per violation.
Regulatory Changes Made by BIS Final Rule
BIS' final rule replaces the language in 15 CFR 764.3(a)(1)(i) that referred to the specific civil monetary penalty amounts authorized by the EAA with more general language explaining that a civil monetary penalty authorized by the EAA may be imposed, and in situations in which any provision of the EAR is continued by IEEPA or other authority, the maximum monetary civil penalty is that which is authorized by the applicable authority (without specifically mentioning the $50,000 maximum civil penalty amount).
This final rule also removes the footnote to 15 CFR 764.3(a) because the clarification to 15 CFR 764.3(a)(1)(i) obviates the need for the footnote.
BIS Contact - Melissa Mannino (202) 482-5301
BIS Final Rule (D/N 060721198-6198-01, FR Pub 08/04/06) available at http://a257.g.akamaitech.net/7/257/2422/01jan20061800/edocket.access.gpo.gov/2006/pdf/E6-12653.pdf