Compliance with U.S. import and export regulations has never been more critical—or more costly. Over the past six months, the number of penalties issued by the U.S. Department of Commerce for trade violations has surged, with fines set to increase further.
Among the penalties being raised are those related to the import and export of seafood and wildlife, foreign trade zones, and violations of the 2018 Export Controls Act. While individual fine increases may seem minor—rising by a few hundred dollars per violation—the overall trend signals stricter enforcement and a growing financial risk for businesses engaged in international trade.
Why Compliance Matters More Than Ever
Experts warn that businesses can no longer afford to take a reactive approach to trade compliance.
Hugo Pakula, CEO of Tru Identity and a leading customs expert, stressed the importance of proactive compliance, stating:
“It has never been more important to stay ahead of non-compliance—and it has never been more costly [not to comply].”
Pakula further noted that the new penalties will apply retroactively to violations that occurred before January 15, 2025, making it crucial for businesses to assess their past transactions for potential risk.
Trade law firm Sandler, Travis & Rosenberg detailed the upcoming fine increases, including a hike in the maximum penalty for violating the 2018 Export Controls Act from $364,992 to $374,474.
While these adjustments may seem small, they come as part of a broader crackdown on trade violations, raising concerns for importers, exporters, and supply chain managers.
Rising Enforcement: What Experts Are Seeing
Several industry leaders have observed a noticeable uptick in enforcement activity.
- Silvia Carter, an expert in export and cross-border e-commerce, noted that “the rules keep on changing… increasing financial risk” for businesses.
- Kyle Grobler, Global Trade Compliance Manager at TE Connectivity, emphasized that compliance violations are becoming more frequent and costly:
“I have seen more fines and penalties over the last six months of my career than ever before.”
“The cost of violating these regulations is just not worth it.”
Grobler urged businesses to foster a culture of compliance rather than waiting until penalties are issued.
The Bigger Picture: National Security and Regulatory Crackdowns
The increased penalties align with the U.S. government’s broader efforts to prevent bad actors from exploiting global trade networks.
A March 2024 tri-seal notice issued by the Departments of Commerce, Justice, and Treasury underscored concerns about how “malign regimes and other bad actors” could use the interconnected global marketplace to undermine U.S. national security.
This renewed focus on enforcement means businesses must take compliance seriously—not just as a regulatory necessity, but as a strategic risk management measure.
How Businesses Can Stay Compliant
With fines rising and enforcement tightening, companies engaged in international trade must prioritize compliance by:
✔ Conducting Regular Audits – Businesses should review past transactions to identify and correct potential compliance risks before they result in penalties.
✔ Staying Informed on Regulatory Changes – U.S. trade laws are evolving rapidly, and businesses must actively track updates to avoid unintentional violations.
✔ Implementing Robust Compliance Programs – Establishing clear procedures and training employees on trade regulations can significantly reduce risk.
✔ Leveraging Trade Compliance Experts – Working with customs brokers, legal advisors, and compliance specialists can help businesses navigate complex regulations.
Conclusion
The U.S. government’s increased scrutiny of import and export compliance is a wake-up call for businesses operating in international markets. With penalties rising and enforcement ramping up, companies can no longer afford a lax approach to compliance.
By staying informed, proactively addressing risks, and investing in strong compliance frameworks, businesses can protect themselves from costly violations and maintain smooth, uninterrupted trade operations.