Penalties
The penalties for non-compliance are severe. With potential fines of hundreds of thousands of dollars for each civil violation of an EAR, ITAR or OFAC regulation, the cost of not closely adhering to export laws can easily climb into the millions of dollars.
Criminal penalties for willful misconduct are even harsher. In these cases, not only can the university be hit with major multi-million-dollar fines, but the researchers and administrators could also be sentenced to time in jail. In addition to the penalties noted below, export control violations can result in seizure and forfeiture of goods and denial of export privileges.
Penalties for Export Control Violations Committed by Individuals and Universities
UTC Table
| Law | Violator | Civil Penalties | Criminal Penalties |
|---|---|---|---|
| EAR | Individual | A fine of up to $12,000 for each violation, or up to $120,000 for violations involving items controlled for national security reasons | “Willful” — a fine of up to $250,000 and/or 10 years in prison “Knowing” — A fine of up to the greater of $50,000 or five times the value of the exports, and/or 5 years in prison |
| EAR | University | A fine of up to $12,000 for each violation, or up to $120,000 for violations involving items controlled for national security reasons | “Willful” — a fine of up to the greater of $1,000,000 or give times the value of the exports “Knowing” — A fine of up to the greater of $50,000 or five times the value of the exports |
| ITAR | Individual | A fine of up to $1,272,251 per violation | A fine of up to $1,272,251 per violation, and/or up to 10 years in prison |
| ITAR | University | A fine of up to $1,272,251 per violation | A fine of up to $1,272,251 per violation |
| OFAC | Individual | A fine of up to $55,000 per violation | A fine of up to $1,000,000 per violation, and/or up to 20 years in prison |
| OFAC | University | A fine of up to $55,000 per violation | A fine of up to $1,000,000 per violation |
Export Control Penalties | Export Control Links | Researcher’s Obligations in Export Control