U. S. Government Penalties for Export Violations
Criminal: The Justice Department may impose a fine of up to one million dollars ($1,000,000) and imprisonment for up to ten years, or both, for each violation of the Arms Export Control Act (22 U.S.C. 2778 & 2779), Sections 38 and 39. The Criminal Fine Enforcement Act of 1984 also applies.
Civil: The Justice Department may levy a fine of up to five hundred thousand dollars ($500,000) for each violation involving defense trade control regulations. Additional civil penalties may be imposed at the discretion of the DoS.
Administrative: The penalty for administrative violations may include revocation, suspension or amendment of any license or other approval granted by the DoS under the International Traffic in Arms Regulations (ITAR) or by the DoC under the Export Administration Regulations (EAR).
Suspension: Both the DoS and the DoC may place a company under interim suspension if they believe that grounds for debarment exist.
Debarment: Both the DoS and the DoC may debar, often for a period of up to three years (or more), the company or individuals from participating in the export of defense articles, including technical data, or from furnishing defense services.
Prohibition from accepting Department of Defense (DoD) Contracts: Debarment of a company normally prohibits that company from accepting or performing contracts for the DoD.
Seizures and Forfeitures: The U.S. Customs Service is authorized to seize any hardware (dual use/commercial or defense article) or technical data technology/software) which is removed or attempted to be removed from the U.S. in violation of the law. (Note: It is important to note that export violations generally affect the compliance record of the exporter of record and not the freight forwarder.) Articles seized may be forfeited and fines may be levied.