Department of Commerce Increases Civil Monetary Penalties for 2022

The U.S. Department of Commerce (Commerce) is increasing each civil monetary penalty within Commerce's jurisdiction for 2022 by 6.2 percent. The increases become effective on Jan. 15, 2022.¹ Note that the 2022 adjustments will apply to any civil penalties assessed after the effective date, including those whose associated violation occurred prior to Jan. 15, 2022. 

The adjustments are required by the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Debt Collection Improvement Act of 1996 and further amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. The penalties are increased based on the cost-of-living adjustment, which is the percentage by which the Consumer Price Index (CPI) for the month of October 2021 exceeds the CPI for the month of October 2020.

International trade related penalty increases include the following:

Bureau of Industry and Security

• 50 U.S.C. 1705(b), International Emergency Economic Powers Act (2007), per violation maximum from $311,562 to $330,947
• 50 U.S.C. 4819, Export Controls Act of 2018 (2018), per violation maximum from $308,901 to $328,121

Bureau of Economic Analysis

• 22 U.S.C. 3105(a), International Investment and Trade in Services Act (1990); failure to furnish information, minimum from $4,876 to $5,179; maximum from $48,762 to $51,796

Census Bureau

• 13 U.S.C. 304, Collection of Foreign Trade Statistics (2002); each day's delinquency of a violation: not-to-exceed maximum per violation from $1,436 to $1,525; maximum per violation, from $14,362 to $15,256
• 13 U.S.C. 305(b), Collection of Foreign Trade Statistics (2002), per violation maximum from $14,362 to $15,256

International Trade Administration

• 19 U.S.C. 81s, Foreign Trade Zone (1934), per violation maximum from $3,011 to $3,198
• 19 U.S.C. 1677f(f)(4), U.S.-Canada Free Trade Agreement Protective Order (1988), per violation maximum from $216,628 to $230,107

National Technical Information Service

• 42 U.S.C. 1306c(c), Bipartisan Budget Act of 2013, per violation minimum from $1,012 to $1,075; maximum total penalty on any person for any calendar year, excluding willful or intentional violations, from $252,955 to $268,694

For any questions about Commerce's adjustments to civil penalties, contact the authors or another member of Holland & Knight's International Trade Group.

Notes

¹ Civil Monetary Penalty Adjustments for Inflation, 87 Fed. Reg. 157 (Jan. 4, 2022).

Information contained in this alert is for the general education and knowledge of our readers. It is not designed to be, and should not be used as, the sole source of information when analyzing and resolving a legal problem, and it should not be substituted for legal advice, which relies on a specific factual analysis. Moreover, the laws of each jurisdiction are different and are constantly changing. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. If you have specific questions regarding a particular fact situation, we urge you to consult the authors of this publication, your Holland & Knight representative or other competent legal counsel.