What is one of the possible penalties for violation of the EAR?

Being placed on the Denied Persons List (DPL) is a significant penalty for violations of the Export Administration Regulations (EAR). The DPL is a list maintained by the Bureau of Industry and Security (BIS) that includes individuals and entities that are prohibited from participating in export transactions. When an entity or person is added to the DPL, it directly impacts their ability to engage in lawful exports, as exporters are forbidden from shipping items to anyone listed on this list.

This penalty is critical as it serves as a strong deterrent against the misuse of export licenses and compliance with export laws. It reflects the seriousness of the violation and underscores the government’s commitment to regulating sensitive technologies and exports for national security and foreign policy reasons.

Other options like increased export privileges, tax liabilities, or a freeze on assets may not be specifically linked to violations of the EAR in the same clear and direct manner that being placed on the DPL emphasizes the potential consequences of non-compliance.