H.R. 5853: To amend the Export Control Reform Act of 2018 to increase the civil penalties that may be imposed under such Act.

This bill aims to amend the Export Control Reform Act of 2018 by increasing the civil penalties linked to violations of the Act. Specifically, it proposes two main changes:

Increased Civil Penalties

The bill suggests:

• Raising the maximum civil penalty for violations from $300,000 to $1,200,000.
• Changing the penalty structure from being based on twice the value of the transaction to four times the value of the transaction.

Applicability of the Amendments

The amendments would apply to any violations occurring on or after the date the bill is enacted. This means that any violations of the Export Control Reform Act or its subsequent regulations, orders, or licenses would be subject to the increased penalties mentioned above.

Overall Impact

This legislation seeks to strengthen enforcement mechanisms associated with export control laws by imposing higher penalties, potentially affecting companies that engage in international trade, particularly in sensitive or controlled goods.

Relevant Companies

• BA: The Boeing Company - Involved in international arms exports and could be significantly affected by higher penalties for violations of export control regulations.
• RTX: Raytheon Technologies Corporation - As a defense contractor, it engages in exports that may be monitored under the amended regulations, potentially facing increased penalties.
• LMT: Lockheed Martin Corporation - Similar to Boeing and Raytheon, Lockheed Martin's defense exports could result in higher penalties if violations occur.