TITLE 50, APPENDIX - WAR AND NATIONAL DEFENSE
EXPORT REGULATION
HEAD
Sec. 2410. Violations
STATUTE
(a) In general
Except as provided in subsection (b) of this section, whoever
knowingly violates or conspires to or attempts to violate any
provision of this Act [sections 2401 to 2420 of this Appendix] or
any regulation, order, or license issued thereunder shall be fined
not more than five times the value of the exports involved or
$50,000, whichever is greater, or imprisoned not more than 5 years,
or both.
(b) Willful violations
(1) Whoever willfully violates or conspires to or attempts to
violate any provision of this Act [sections 2401 to 2420 of this
Appendix] or any regulation, order, or license issued thereunder,
with knowledge that the exports involved will be used for the
benefit of, or that the destination or intended destination of the
goods or technology involved is, any controlled country or any
country to which exports are controlled for foreign policy purposes
-
(A) except in the case of an individual, shall be fined not
more than five times the value of the exports involved or
$1,000,000, whichever is greater; and
(B) in the case of an individual, shall be fined not more than
$250,000, or imprisoned not more than 10 years, or both.
(2) Any person who is issued a validated license under this Act
[sections 2401 to 2420 of this Appendix] for the export of any good
or technology to a controlled country and who, with knowledge that
such a good or technology is being used by such controlled country
for military or intelligence gathering purposes contrary to the
conditions under which the license was issued, willfully fails to
report such use to the Secretary of Defense -
(A) except in the case of an individual, shall be fined not
more than five times the value of the exports involved or
$1,000,000, whichever is greater; and
(B) in the case of an individual, shall be fined not more than
$250,000, or imprisoned not more than 5 years, or both.
(3) Any person who possesses any goods or technology -
(A) with the intent to export such goods or technology in
violation of an export control imposed under section 5 or 6 of
this Act [section 2404 or 2405 of this Appendix] or any
regulation, order, or license issued with respect to such
control, or
(B) knowing or having reason to believe that the goods or
technology would be so exported,
shall, in the case of a violation of an export control imposed
under section 5 [section 2404 of this Appendix] (or any regulation,
order, or license issued with respect to such control), be subject
to the penalties set forth in paragraph (1) of this subsection and
shall, in the case of a violation of an export control imposed
under section 6 [section 2405 of this Appendix] (or any regulation,
order, or license issued with respect to such control), be subject
to the penalties set forth in subsection (a).
(4) Any person who takes any action with the intent to evade the
provisions of this Act [sections 2401 to 2420 of this Appendix] or
any regulation, order, or license issued under this Act [sections
2401 to 2420 of this Appendix] shall be subject to the penalties
set forth in subsection (a), except that in the case of an evasion
of an export control imposed under section 5 or 6 of this Act
[section 2404 or 2405 of this Appendix] (or any regulation, order,
or license issued with respect to such control), such person shall
be subject to the penalties set forth in paragraph (1) of this
subsection.
(5) Nothing in this subsection or subsection (a) shall limit the
power of the Secretary to define by regulations violations under
this Act [sections 2401 to 2420 of this Appendix].
(c) Civil penalties; administrative sanctions
(1) The Secretary (and officers and employees of the Department
of Commerce specifically designated by the Secretary) may impose a
civil penalty not to exceed $10,000 for each violation of this Act
[sections 2401 to 2420 of this Appendix] or any regulation, order,
or license issued under this Act [sections 2401 to 2420 of this
Appendix], either in addition to or in lieu of any other liability
or penalty which may be imposed, except that the civil penalty for
each such violation involving national security controls imposed
under section 5 of this Act [section 2404 of this Appendix] or
controls imposed on the export of defense articles and defense
services under section 38 of the Arms Export Control Act [22 U.S.C.
2778] may not exceed $100,000.
(2)(A) The authority under this Act [sections 2401 to 2420 of
this Appendix] to suspend or revoke the authority of any United
States person to export goods or technology may be used with
respect to any violation of the regulations issued pursuant to
section 8(a) of this Act [section 2407(a) of this Appendix].
(B) Any administrative sanction (including any civil penalty or
any suspension or revocation of authority to export) imposed under
this Act [sections 2401 to 2420 of this Appendix] for a violation
of the regulations issued pursuant to section 8(a) of this Act
[section 2407(a) of this Appendix] may be imposed only after notice
and opportunity for an agency hearing on the record in accordance
with sections 554 through 557 of title 5, United States Code.
(C) Any charging letter or other document initiating
administrative proceedings for the imposition of sanctions for
violations of the regulations issued pursuant to section 8(a) of
this Act [section 2407(a) of this Appendix] shall be made available
for public inspection and copying.
(3) An exception may not be made to any order issued under this
Act [sections 2401 to 2420 of this Appendix] which revokes the
authority of a United States person to export goods or technology
unless the Committee on Foreign Affairs of the House of
Representatives and the Committee on Banking, Housing, and Urban
Affairs of the Senate are first consulted concerning the exception.
(4) The President may by regulation provide standards for
establishing levels of civil penalty provided in this subsection
based upon the seriousness of the violation, the culpability of the
violator, and the violator's record of cooperation with the
Government in disclosing the violation.
(d) Payment of penalties
The payment of any penalty imposed pursuant to subsection (c) may
be made a condition, for a period not exceeding one year after the
imposition of such penalty, to the granting, restoration, or
continuing validity of any export license, permission, or privilege
granted or to be granted to the person upon whom such penalty is
imposed. In addition, the payment of any penalty imposed under
subsection (c) may be deferred or suspended in whole or in part for
a period of time no longer than any probation period (which may
exceed one year) that may be imposed upon such person. Such a
deferral or suspension shall not operate as a bar to the collection
of the penalty in the event that the conditions of the suspension,
deferral, or probation are not fulfilled.
(e) Refunds
Any amount paid in satisfaction of any penalty imposed pursuant
to subsection (c), or any amounts realized from the forfeiture of
any property interest or proceeds pursuant to subsection (g), shall
be covered into the Treasury as a miscellaneous receipt. The head
of the department or agency concerned may, in his discretion,
refund any such penalty imposed pursuant to subsection (c), within
2 years after payment, on the ground of a material error of fact or
law in the imposition of the penalty. Notwithstanding section
1346(a) of title 28, United States Code, no action for the refund
of any such penalty may be maintained in any court.
(f) Actions for recovery of penalties
In the event of the failure of any person to pay a penalty
imposed pursuant to subsection (c), a civil action for the recovery
thereof may, in the discretion of the head of the department or
agency concerned, be brought in the name of the United States. In
any such action, the court shall determine de novo all issues
necessary to the establishment of liability. Except as provided in
this subsection and in subsection (d), no such liability shall be
asserted, claimed, or recovered upon by the United States in any
way unless it has previously been reduced to judgment.
(g) Forfeiture of property interest and proceeds
(1) Any person who is convicted under subsection (a) or (b) of a
violation of an export control imposed under section 5 of this Act
[section 2404 of this Appendix] (or any regulation, order, or
license issued with respect to such control) shall, in addition to
any other penalty, forfeit to the United States -
(A) any of that person's interest in, security of, claim
against, or property or contractual rights of any kind in the
goods or tangible items that were the subject of the violation;
(B) any of that person's interest in, security of, claim
against, or property or contractual rights of any kind in
tangible property that was used in the export or attempt to
export that was the subject of the violation; and
(C) any of that person's property constituting, or derived
from, any proceeds obtained directly or indirectly as a result of
the violation.
(2) The procedures in any forfeiture under this subsection, and
the duties and authority of the courts of the United States and the
Attorney General with respect to any forfeiture action under this
subsection or with respect to any property that may be subject to
forfeiture under this subsection, shall be governed by the
provisions of section 1963 of title 18, United States Code.
(h) Prior convictions
(1) No person convicted of a violation of this Act [sections 2401
to 2420 of this Appendix] (or any regulation, license, or order
issued under this Act [sections 2401 to 2420 of this Appendix]),
any regulation, license, or order issued under the International
Emergency Economic Powers Act [50 U.S.C. 1701 et seq.], section
793, 794, or 798 of title 18, United States Code, section 4(b) of
the Internal Security Act of 1950 (50 U.S.C. 783(b)),(!1) or
section 38 of the Arms Export Control Act (22 U.S.C. 2778) shall be
eligible, at the discretion of the Secretary, to apply for or use
any export license under this Act [sections 2401 to 2420 of this
Appendix] for a period of up to 10 years from the date of the
conviction. The Secretary may revoke any export license under this
Act [sections 2401 to 2420 of this Appendix] in which such person
has an interest at the time of the conviction.
(2) The Secretary may exercise the authority under paragraph (1)
with respect to any person related, through affiliation, ownership,
control, or position of responsibility, to any person convicted of
any violation of law set forth in paragraph (1), upon a showing of
such relationship with the convicted party, and subject to the
procedures set forth in section 13(c) of this Act [section 2412(c)
of this Appendix].
(i) Other authorities
Nothing in subsection (c), (d), (f), (g), or (h) limits -
(1) the availability of other administrative or judicial
remedies with respect to violations of this Act [sections 2401 to
2420 of this Appendix], or any regulation, order, or license
issued under this Act [sections 2401 to 2420 of this Appendix];
(2) the authority to compromise and settle administrative
proceedings brought with respect to violations of this Act
[sections 2401 to 2420 of this Appendix], or any regulation,
order, or license issued under this Act [sections 2401 to 2420 of
this Appendix]; or
(3) the authority to compromise, remit or mitigate seizures and
forfeitures pursuant to section 1(b) of title VI of the Act of
June 15, 1917 (22 U.S.C. 401(b)).
SOURCE
(Pub. L. 96-72, Sec. 11, Sept. 29, 1979, 93 Stat. 529; Pub. L. 97-
145, Sec. 4(a)-(c), Dec. 29, 1981, 95 Stat. 1727; Pub. L. 99-64,
title I, Sec. 112, July 12, 1985, 99 Stat. 146; Pub. L. 100-418,
title II, Sec. 2426, Aug. 23, 1988, 102 Stat. 1361.)
REFERENCES IN TEXT
The International Emergency Economic Powers Act, referred to in
subsec. (h)(1), is title II of Pub. L. 95-223, Dec. 28, 1977, 91
Stat. 1626, which is classified generally to chapter 35 (Sec. 1701
et seq.) of Title 50, War and National Defense. For complete
classification of this Act to the Code, see Short Title note set
out under section 1701 of Title 50 and Tables.
Section 4(b) of the Internal Security Act of 1950 (50 U.S.C.
783(b)), referred to in subsec. (h)(1), was redesignated as section
4(a) of that Act, 50 U.S.C. 783(a), by Pub. L. 103-199, title VIII,
Sec. 803(2)(B), Dec. 17, 1993, 107 Stat. 2329.
PRIOR PROVISIONS
A prior section 2410, Pub. L. 91-184, Sec. 11, Dec. 30, 1969, 83
Stat. 846; Pub. L. 95-52, title II, Sec. 204, June 22, 1977, 91
Stat. 247, defining "person" and "United States person" for
purposes of the Export Administration Act of 1969, expired on Sept.
30, 1979.
AMENDMENTS
1988 - Subsec. (h). Pub. L. 100-418, Sec. 2426, designated
existing provisions as par. (1), inserted "this Act (or any
regulation, license, or order issued under this Act), any
regulation, license, or order issued under the International
Emergency Economic Powers Act," after "violation of", and added
par. (2).
1985 - Subsec. (a). Pub. L. 99-64, Sec. 112(a), inserted "or
conspires to or attempts to violate".
Subsec. (b)(1). Pub. L. 99-64, Sec. 112(b)(1), in provisions
preceding subpar. (A), substituted "Whoever willfully violates or
conspires to or attempts to violate any provision of this Act or
any regulation, order, or license issued thereunder, with knowledge
that the exports involved will be used for the benefit of, or that
the destination or intended destination of the goods or technology
involved is, any controlled country or any country to which exports
are controlled for foreign policy purposes" for "Whoever willfully
exports anything contrary to any provision of this Act or any
regulation, order, or license issued thereunder, with knowledge
that such exports will be used for the benefit of any country to
which exports are restricted for national security or foreign
policy purposes".
Subsec. (b)(2). Pub. L. 99-64, Sec. 112(b)(2), struck out
sentence which provided that for purposes of this paragraph,
"controlled country" means any country described in section 620(f)
of the Foreign Assistance Act of 1961.
Subsec. (b)(3) to (5). Pub. L. 99-64, Sec. 112(b)(3), added pars.
(3) to (5).
Subsec. (c)(1). Pub. L. 99-64, Sec. 112(c)(1), substituted
"Secretary (and officers and employees of the Department of
Commerce specifically designated by the Secretary)" for "head of
any department or agency exercising any functions under this Act,
or any officer or employee of such department or agency
specifically designated by the head thereof,".
Subsec. (c)(3), (4). Pub. L. 99-64, Sec. 112((c)(2), added pars.
(3) and (4).
Subsec. (e). Pub. L. 99-64, Sec. 112(d), inserted ", or any
amounts realized from the forfeiture of any property interest or
proceeds pursuant to subsection (g)," after "Any amount paid in
satisfaction of any penalty imposed pursuant to subsection (c)",
and inserted "imposed pursuant to subsection (c)" after "refund any
such penalty".
Subsecs. (g), (h). Pub. L. 99-64, Sec. 112(e)(2), added subsecs.
(g) and (h). Former subsec. (g) redesignated (i).
Subsec. (i). Pub. L. 99-64, Sec. 112(e)(1), (f), redesignated
former subsec. (g) as (i) and substituted "(f), (g), or (h)" for
"or (f)" in provisions preceding par. (1).
1981 - Subsec. (b)(1). Pub. L. 97-145, Sec. 4(a), in penalty
provisions, substituted separate penalties for individuals and
others in subpars. (A) and (B), for provisions prescribing a fine
of not more than five times the value of the exports involved or
$100,000, whichever was greater, or imprisonment of not more than
10 years, or both.
Subsec. (b)(2). Pub. L. 97-145, Sec. 4(b), in penalty provisions,
substituted separate penalties for individuals and others in
subpars. (A) and (B), for provisions prescribing a fine of not more
than five times the value of the exports involved or $100,000,
whichever was greater, or imprisonment for not more than 5 years,
or both.
Subsec. (c)(1). Pub. L. 97-145, Sec. 3(c), inserted exception
that the civil penalty for each violation involving national
security controls imposed under section 2404 of this Appendix or
controls imposed on the export of defense articles and defense
services under section 2778 of title 22 may not exceed $100,000.
EFFECTIVE DATE OF 1981 AMENDMENT
Section 4(d) of Pub. L. 97-145 provided that: "The amendments
made by this section [amending this section] apply with respect to
violations occurring after the date of the enactment of this Act
[Dec. 29, 1981]."
FOOTNOTE
(!1) See References in Text note below.
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