§305 — Title 13 Census | U.S. Code

Summary

Knowingly failing to file, or filing false or misleading export information using the Shippers Export Declaration (SED) or the Automated Export System (AES), or using those forms to help illegal activity, can lead to a fine of up to $10,000 for each violation, up to 5 years in jail, or both. If someone is convicted, they must also give up any interest in the goods involved, any property used to make the export, and any money made from the illegal act. The Secretary of Commerce (and designated officers) can also impose civil fines up to $10,000 per violation, on top of other penalties. A person facing a civil penalty must get a written complaint and may ask for an administrative hearing. If the fine is not paid, the Secretary can ask the Attorney General to sue to collect within 5 years of the final order. The Secretary can reduce or cancel penalties for non-willful mistakes or other reasons. If another agency is given these duties, that agency’s rules apply. Collected penalties go to the Treasury. Commerce may name investigators and Customs may help enforce these rules. The criminal fines here are not subject to the limits in 18 U.S.C. 3571.

Title 13, §305

Census — Source: USLM XML via OLRC

(a)(1)Any person who knowingly fails to file or knowingly submits false or misleading export information through the Shippers Export Declaration (SED) (or any successor document) or the Automated Export System (AES) shall be subject to a fine not to exceed $10,000 per violation or imprisonment for not more than 5 years, or both.

(2)Any person who knowingly reports any information on or uses the SED or the AES to further any illegal activity shall be subject to a fine not to exceed $10,000 per violation or imprisonment for not more than 5 years, or both.

(3)Any person who is convicted under this subsection shall, in addition to any other penalty, be subject to forfeiting 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.

(b)The Secretary (and officers of the Department of Commerce specifically designated by the Secretary) may impose a civil penalty not to exceed $10,000 per violation on any person violating the provisions of this chapter or any rule, regulation, or order issued thereunder, except as provided in section 304. Such penalty may be in addition to any other penalty imposed by law.

(c)(1)Whenever a civil penalty is sought for a violation of this section or of section 304, the charged party is entitled to receive a formal complaint specifying the charges and, at his or her request, to contest the charges in a hearing before an administrative law judge. Any such hearing shall be conducted in accordance with section 556 and 557 of title 5, United States Code.

(2)If any person fails to pay a civil penalty imposed under this chapter, the Secretary may request the Attorney General to commence a civil action in an appropriate district court of the United States to recover the amount imposed (plus interest at currently prevailing rates from the date of the final order). No such action may be commenced more than 5 years after the date the order imposing the civil penalty becomes final. In such action, the validity, amount, and appropriateness of such penalty shall not be subject to review.

(3)The Secretary may remit or mitigate any penalties imposed under paragraph (1) if, in the Secretary’s opinion—

(A)the penalties were incurred without willful negligence or fraud; or

(B)other circumstances exist that justify a remission or mitigation.

(4)If, pursuant to section 306, the Secretary delegates functions under this section to another agency, the provisions of law of that agency relating to penalty assessment, remission or mitigation of such penalties, collection of such penalties, and limitations of actions and compromise of claims, shall apply.

(5)Any amount paid in satisfaction of a civil penalty imposed under this section or section 304 shall be deposited into the general fund of the Treasury and credited as miscellaneous receipts.

(d)(1)The Secretary of Commerce may designate officers or employees of the Office of Export Enforcement to conduct investigations pursuant to this chapter. In conducting such investigations, those officers or employees may, to the extent necessary or appropriate to the enforcement of this chapter, exercise such authorities as are conferred upon them by other laws of the United States, subject to policies and procedures approved by the Attorney General.

(2)The Commissioner of Customs 11 See Change of Name note below. may designate officers or employees of the Customs Service to enforce the provisions of this chapter, or to conduct investigations pursuant to this chapter.

(e)The Secretary of Commerce shall promulgate regulations for the implementation and enforcement of this section.

(f)The criminal fines provided for in this section are exempt from the provisions of section 3571 of title 18, United States Code.

Notes & Related Subsidiaries

Editorial Notes

Amendments

2002—Pub. L. 107–228 substituted “Penalties for unlawful export information activities” for “Violations, penalties” in section catchline and amended text generally. Prior to amendment, text read as follows: “Any person, including the owners or operators of carriers, violating the provisions of this chapter, or any rule, regulation, or order issued thereunder, except as provided in section 304 above, shall be liable to a penalty not to exceed $1,000 in addition to any other penalty imposed by law. The amount of any such penalty shall be payable into the Treasury of the United States and shall be recoverable in a civil suit in the name of the United States.”

Statutory Notes and Related Subsidiaries

Change of Name

Reference to Commissioner of Customs deemed to be reference to Commissioner of U.S. Customs and Border Protection pursuant to section 802(d)(2) of Pub. L. 114–125, set out as a note under section 211 of Title 6, Domestic Security.

Transfer of Functions

For

Transfer of Functions

, personnel, assets, and liabilities of the United States Customs Service of the Department of the Treasury, including functions of the Secretary of the Treasury relating thereto, to the Secretary of Homeland Security, and for treatment of related references, see section 203(1), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set out as a note under section 542 of Title 6. For establishment of U.S. Customs and Border Protection in the Department of Homeland Security, treated as if included in Pub. L. 107–296 as of Nov. 25, 2002, see section 211 of Title 6, as amended generally by Pub. L. 114–125, and section 802(b) of Pub. L. 114–125, set out as a note under section 211 of Title 6.

§305 Penalties for Unlawful Export Information Activities

Summary

Title 13, §305

Notes & Related Subsidiaries

Editorial Notes

Amendments

Statutory Notes and Related Subsidiaries

Change of Name

Transfer of Functions

Transfer of Functions

Citations & Metadata