The Department of Commerce announced April 24 that it has submitted legislation aimed at strengthening export controls by reauthorizing and expanding the Export Administration Act, which expired in 2001. According to a DOC fact sheet, the Export Enforcement Act of 2007 would revise and renew the export enforcement and violation provisions of the EAA while enhancing enforcement authorities for combating illicit exports of dual-use items that have predominantly civilian uses but can also have military, proliferation and terrorism-related applications.
The proposed legislation would provide a stronger statutory authority for U.S. export controls on dual-use items. The current authority derives from invoking the International Emergency Economic Powers Act, but the enforcement authorities and penalties available under IEEPA are not as strong as those afforded in the EAA. As a result, the DOC states, export enforcement investigations done by the Bureau of Industry and Security are severely hampered and prosecutors are sometimes reluctant to bring criminal indictments for export control violations. In addition, the ability of the U.S. to lead other countries to adopt comprehensive export control legislation is undercut by the absence of a current EAA.
According to the DOC, the administration’s legislative proposal includes the following provisions.
• The EAA would be renewed for five years after the date of enactment.
• Civil and criminal penalties for violators of export control laws would be substantially increased over those presently authorized by the IEEPA. Maximum corporate penalties for criminal violations would increase from $50,000 to the greater of $5 million or ten times the value of the exports involved.
• DOC special agents would have statutory overseas investigative authority and expanded undercover authorities.
• Provisions protecting confidential business information would be made permanent.
• The list of criminal violations upon which a denial of export privileges may be based would be expanded.
