To amend the Export Control Reform Act of 2018 to increase the civil penalties that may be imposed under such Act.
- Bill Number
- H.R. 5853
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Foreign Trade and International Finance
- Status
- Introduced
- Latest Action
- 2026-04-22: Ordered to be Reported by the Yeas and Nays: 44 - 0.
- Last Updated
- 2026-06-02T13:03:54Z
AI-Generated Summary
Purpose
This bill, H.R. 5853, aims to strengthen enforcement of U.S. export control laws by increasing the maximum civil penalties for violations under the Export Control Reform Act of 2018. Export controls are rules that regulate the export of certain goods, technologies, and services to protect national security, foreign policy, and economic interests.
Key Provisions
- Amendment to Penalties: The bill modifies Section 1760(c)(1)(A) of the Export Control Reform Act of 2018.
- Raises the maximum civil penalty per violation from $300,000 to $1,200,000.
- Increases the alternative penalty (based on transaction value) from twice the value of the violating transaction to four times that value.
- Applicability: The changes apply only to violations occurring on or after the date the bill becomes law. (Civil penalties are financial fines imposed by the government for breaking these rules, without involving criminal charges.)
Significant Changes to Existing Law
- The original Export Control Reform Act of 2018 set a cap of $300,000 per violation or twice the transaction value, whichever is greater.
- This bill quadruples the flat penalty amount and doubles the multiplier for transaction-based penalties, making fines significantly harsher to deter non-compliance.
Potential Impacts
- On Government Agencies: Agencies like the Department of Commerce (which enforces export controls) may see improved deterrence of violations, potentially reducing illegal exports of sensitive items and easing enforcement workload through higher penalties.
- On Citizens and Businesses: U.S. companies, exporters, and individuals involved in international trade could face steeper financial risks for errors or intentional breaches, encouraging stricter compliance with export rules.
- On International Relations: By toughening penalties, the U.S. signals a firmer stance on controlling exports of dual-use technologies (items with both civilian and military applications), which could influence trade with countries of concern and strengthen global non-proliferation efforts.
Main Stakeholders Affected
- U.S. Exporters and Businesses: Particularly those in tech, defense, and manufacturing sectors dealing with controlled goods.
- Government Enforcement Bodies: Such as the Bureau of Industry and Security (BIS) under the Department of Commerce, which handles investigations and penalties.
- International Trade Partners: Foreign entities or governments involved in U.S. exports, as stricter enforcement may slow or alter trade flows.
Notable Legal, Constitutional, or Political Implications
- Legal: Enhances administrative enforcement without altering criminal penalties (which remain separate under the Act), providing regulators with a stronger tool for civil actions. No changes to due process or appeal rights.
- Constitutional: Aligns with Congress's authority to regulate foreign commerce (under Article I, Section 8 of the U.S. Constitution), with no apparent conflicts to individual rights like free speech or property.
- Political: Reflects bipartisan support (introduced by Reps. Mast and McCaul) for bolstering national security amid global tensions, potentially setting a precedent for future increases in regulatory fines across trade laws.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (2)
Rep. McCaul, Michael T. [R-TX-10], Rep. Lawler, Michael [R-NY-17]
Recent Actions
- 2026-04-22: Ordered to be Reported by the Yeas and Nays: 44 - 0.
- 2026-04-22: Committee Consideration and Mark-up Session Held
- 2025-10-28: Referred to the House Committee on Foreign Affairs.
- 2025-10-28: Introduced in House
- 2025-10-28: Introduced in House
Bill Versions
- To amend the Export Control Reform Act of 2018 to increase the civil penalties that may be imposed under such Act. — issued 2025-10-28 — PDF (2 pages)