S. 4883: To amend the Export Control Reform Act of 2018 to increase the civil penalties that may be imposed under that Act.

This bill would increase the civil penalties for violating the Export Control Reform Act of 2018, which governs U.S. rules on exporting certain sensitive goods, software, and technology.

What changes

• Raises the standard maximum civil penalty from $300,000 to $1,200,000 per violation.
• Changes one penalty formula from twice the value of the transaction to four times the value of the transaction.

What this means in practice

If a person or company breaks export-control rules, the government could fine them more heavily than under current law. The higher penalties would apply to violations of the Export Control Reform Act itself, as well as related regulations, orders, or licenses issued under that law.

When it would apply

The new penalty levels would apply only to violations committed on or after the date the bill becomes law.

Relevant Companies

• LMT — Lockheed Martin could be affected because it works with controlled defense and aerospace technologies and must comply with export-control rules.
• RTX — RTX could be affected for the same reason, since its aerospace and defense businesses handle export-controlled items and technology.
• NOC — Northrop Grumman may be directly impacted because it engages in defense work involving sensitive technologies subject to export controls.
• LHX — L3Harris Technologies could be affected due to its defense communications and electronics businesses, which are subject to export-control compliance.
• BA — Boeing may be affected because some of its aerospace and defense products and technology fall under export-control requirements.