To amend the Export Control Reform Act of 2018 to increase the civil penalties that may be imposed under such Act.
Summary
H.R. 5853 proposes to amend the Export Control Reform Act of 2018 by increasing the civil penalties for violations. Specifically, it raises the maximum penalty from $300,000 to $1,200,000 and from twice to four times the value of the transaction. The increased penalties would apply to violations committed on or after the enactment date of the Act.
Expected Effects
The bill aims to deter violations of export control regulations by increasing the financial consequences. This could lead to stricter compliance with export laws and potentially impact international trade and national security. It may also generate more revenue for the government through increased fines.
Potential Benefits
- Increased deterrence of export control violations.
- Potential for enhanced national security through stricter export enforcement.
- Possible increase in government revenue from penalties.
- May level the playing field for businesses that comply with export regulations.
- Could strengthen the US's international standing by demonstrating commitment to export controls.
Potential Disadvantages
- Increased financial burden on businesses, especially smaller enterprises, that may inadvertently violate export regulations.
- Potential for over-penalization in cases of minor or unintentional violations.
- Possible chilling effect on legitimate export activities due to fear of high penalties.
- May lead to increased litigation and administrative costs.
- Could strain relationships with international partners if penalties are perceived as unfair or excessive.
Most Disadvantaged Areas:
Constitutional Alignment
The bill falls under the powers granted to Congress to regulate commerce with foreign nations (Article I, Section 8, Clause 3). It also relates to national security, which is an implied power of the federal government. The bill does not appear to infringe on any specific constitutional rights or freedoms.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).