US Pledges Stricter And More Aggressive Export Control Enforcement Measures

The United States has signalled a decisive tightening of export control enforcement. Officials warned that companies and individuals breaching dual-use technology restrictions will face tougher sanctions and closer oversight.

Appearing before the South and Central Asia Subcommittee of the House Committee on Foreign Affairs, David Peters, Assistant Secretary for Export Enforcement at the Bureau of Industry and Security (BIS), stated that threats to American technology have ‘never been higher’.

He told lawmakers that adversaries are actively attempting to obtain sensitive dual-use innovations to erode US economic and military superiority.

Export Enforcement, he stressed, remains central to preserving the country’s technological advantage.

Peters confirmed that the administration under Donald Trump and Commerce Secretary Howard Lutnick is intensifying enforcement across all sectors.

The proposed 123 per cent funding increase in the 2026 President’s Budget represents what he described as a transformative national security investment.

Penalties And Prosecutions Intensify

Although Congress recently expanded resources, Peters acknowledged operational strain. BIS will prioritise recruitment, advanced data analytics, strengthened international coordination, and enhanced training to address evolving threats.

He cited recent indictments and arrests in Texas and Florida involving alleged smuggling and unauthorised exports of advanced artificial intelligence chips and graphics processing units.

Civil enforcement actions have also escalated. BIS imposed a $95 million penalty on Cadence Design Systems for unlawful exports to Entity List firms.

It fined Exyte Management $1.5 million for failing to prevent domestic transfers to restricted entities.

Two weeks ago, BIS announced a $252 million settlement with Applied Materials for illegally exporting semiconductor manufacturing equipment to a listed company.

Peters described it as the statutory maximum and the second-largest standalone BIS penalty. He warned plainly that violators must expect consequences.

Peters argued that penalties under the Export Control Reform Act remain inadequate. Current fines reach twice the transaction value or roughly $374,000 per breach.

By contrast, the Arms Export Control Act allows penalties up to $1.2 million per violation.

In fiscal year 2025, Export Enforcement operated on $87 million yet generated $192 million in penalties, over $81 million in forfeitures, and $5 million in restitution.

BIS oversees civil and criminal enforcement of US dual-use export laws. Washington has tightened semiconductor and AI export controls amid mounting concerns over strategic technology transfers.

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