BIS enforcement is at record levels
Is your company exposed?
In February 2026, BIS fined Applied Materials $252M for semiconductor equipment exports to China. In 2023, Seagate paid $300M for selling hard drives to Huawei. Penalties are per-violation, enforcement is accelerating, and no company is too small to be targeted. Run the self-audit checklist before regulators come knocking.
Real Companies. Real Consequences.
These are real enforcement actions from BIS, DOJ, and OFAC public records. From Fortune 500 companies to mid-size manufacturers — no one is exempt. Penalties are per-violation, and each shipment counts separately.
Seagate Technology
April 2023Shipped approximately 7.4 million hard disk drives worth $1.1 billion to Huawei after Huawei was added to the Entity List. BIS found 429 separate violations over a sustained period. Largest BIS civil penalty ever imposed.
EAR 744 — Entity List violations (429 counts)
Source: BIS Press Release, April 19, 2023
Applied Materials
February 2026Semiconductor equipment maker penalized for 56 violations involving illegal reexport of ion implanting equipment to SMIC in China via its South Korea subsidiary, without required licenses. Penalty equals twice the $126.3M transaction value — the statutory maximum. Second-largest BIS penalty ever.
EAR 744 — Entity List violations (56 counts)
Source: BIS Press Release, February 12, 2026
Cadence Design Systems
July 2025EDA software company pled guilty to conspiracy for selling hardware, software, and semiconductor design IP to the National University of Defense Technology (NUDT) — a Chinese military university on the Entity List — through a third-party intermediary from 2015-2021. $72.5M fine + $45.3M forfeiture (criminal), plus $91.3M BIS civil penalty.
EAR — 61 violations, unlicensed exports to Entity List
Source: DOJ / BIS Enforcement Action, July 28, 2025
3D Systems Corporation
February 20233D printing company emailed technical blueprints for aerospace and military electronics to its subsidiary in Guangzhou, China from 2012-2019. Settled with BIS ($2.77M), State Department DDTC ($20M ITAR), and DOJ ($4.54M). A clear case of uncontrolled deemed exports.
EAR + ITAR — Unlicensed technology exports to China
Source: BIS / State / DOJ Joint Settlement, Feb 2023
TE Connectivity
2024Global technology company penalized for unauthorized exports of items to PRC military electronics entities. TE Connectivity voluntarily self-disclosed the violations, which was a mitigating factor in the penalty amount.
EAR — Unauthorized exports to PRC military-linked entities
Source: BIS 2024 Year in Review
Haas Automation
January 2025CNC machine tool manufacturer fined for 41 EAR violations involving export of machine parts to Entity List parties in Russia and China. The parts were valued at just $29,254 — but BIS assessed penalties 85x the transaction value.
EAR 764 — Entity List violations (41 counts)
Source: BIS / OFAC Settlement, January 2025
Exyte Management GmbH
January 2026German semiconductor cleanroom builder penalized for 13 violations involving transfers of EAR-controlled items to Entity List parties. Demonstrates BIS enforcement reach extends to foreign companies handling US-origin technology.
EAR 764 — Causing EAR-controlled transfers to Entity List
Source: BIS Civil Penalty, January 2026
Teledyne FLIR
February 202619 violations involving thermal imaging camera exports to China and Hong Kong (2017-2024). Key issue: manipulated de minimis content calculations with a Chinese drone manufacturer to keep US-origin content below the 25% threshold. Plus Entity List exports and recordkeeping failures.
EAR — De minimis manipulation, Entity List violations (19 counts)
Source: BIS Final Order, February 26, 2026
LuminUltra Technologies
October 2025Canadian biotech company exported luminometers (water quality testing equipment) to Iran, deliberately concealing the true destination by routing shipments through a UAE freight forwarder. Classic transshipment/diversion scheme.
EAR — Iran embargo violations, concealment
Source: BIS Civil Penalty, October 2025
How Penalties Multiply
BIS penalties are assessed per violation. Each shipment, each transfer, each deemed export is a separate violation. What looks like a small compliance gap can become a multi-million dollar liability overnight.
The Compliance Checklist Most SMBs Fail
If you can't confidently answer "yes" to all of these, you have exposure. BIS doesn't care about your company size — they care about violations.
Do you export products, technology, or software outside the US?
Even cloud access by foreign nationals counts as an export under EAR deemed export rules.
Have you formally classified every item you export with an ECCN?
"We just mark everything EAR99" is the #1 compliance failure BIS finds during audits.
Do you screen every customer, consignee, and end-user against the CSL?
Entity List, SDN, Denied Persons, Unverified List — one miss is a violation.
Do you have a written Export Compliance Program (ECP)?
BIS offers significant penalty mitigation for companies with an ECP. Without one, penalties are maximized.
Can you produce classification records for the last 5 years?
15 CFR 762 requires you to retain export records for 5 years. "We can't find those files" is not a defense.
Do your foreign-national employees have Technology Control Plans?
Sharing controlled technology with foreign nationals in the US is a deemed export — even in your own office.
Do you know your red flags?
BIS Supp. 3 to Part 732 lists specific red flags. If you can't name them, you can't catch them.
Have you done a retrospective audit / lookback in the last 12 months?
Voluntary self-disclosure of violations discovered via lookback drastically reduces penalties.
BIS Enforcement Tracker
Real enforcement actions from BIS, DOJ, OFAC, and DDTC public records. All data sourced from official agency press releases and settlement documents.
| Date | Entity | Action | Penalty | Regulation |
|---|---|---|---|---|
| Feb 2026 | Applied Materials 56 violations — ion implant equipment to SMIC via S. Korea | Civil Penalty | $252M | EAR 744 |
| Feb 2026 | Teledyne FLIR 19 violations — thermal cameras to China, de minimis manipulation | Civil Penalty | $1M | EAR |
| Feb 2026 | Vizocom Military antenna specs shared with Chinese manufacturer | Civil Penalty | $374K | EAR |
| Jan 2026 | Exyte Management GmbH 13 violations — EAR99 items to SMIC Beijing | Civil Penalty | $1.5M | EAR 764 |
| Oct 2025 | LuminUltra Technologies Luminometers to Iran via UAE — concealment | Civil Penalty | $685K | EAR |
| Jul 2025 | Cadence Design Systems 61 violations — EDA software to PRC military university | Guilty Plea + Civil | $140M+ | EAR |
| Jan 2025 | Haas Automation 41 violations — CNC parts to Russia/China | Civil Penalty (BIS + OFAC) | $2.5M | EAR 764 |
| 2024 | TE Connectivity Unauthorized exports to PRC military entities | Civil Penalty | $5.8M | EAR |
| Apr 2023 | Seagate Technology 429 violations — 7.4M HDDs to Huawei | Civil Penalty | $300M | EAR 744 |
| Feb 2023 | 3D Systems Corporation Blueprints emailed to China subsidiary (2012-2019) | Multi-Agency Settlement | $27.3M | EAR + ITAR |
Sources: BIS press releases, DOJ announcements, Federal Register notices, OFAC SDN updates. Data reflects publicly available enforcement records. Updated periodically.
The Regulatory Landscape
US export controls are enforced by multiple agencies under overlapping regulatory frameworks. Understanding which regulations apply to your products is the first step toward compliance.
Export Administration Regulations (EAR)
Controls exports based on ECCN classification, Country Chart, and end-use/end-user restrictions. Covers everything from semiconductors to encryption software.
International Traffic in Arms Regulations (ITAR)
Controls items on the US Munitions List (USML). More restrictive than EAR — no license exceptions for most items. 3D Systems paid $20M in ITAR penalties.
Entity List (EAR Part 744, Supp. 4)
Exporting to an Entity List party without a BIS license is a violation. Seagate's $300M penalty was for Entity List violations. The list is updated regularly — if you're not screening, you're exposed.
Consolidated Screening List (CSL)
Includes Entity List, SDN List, Denied Persons List, Unverified List, and more. Must be screened before every transaction — customer, consignee, end-user, and intermediaries.
Deemed Export Rule (EAR 734.2(b))
Sharing controlled technology with a foreign national employee is considered an 'export' to their home country. Requires a Technology Control Plan (TCP) and may require a license.
Voluntary Self-Disclosure (VSD)
Companies that discover and voluntarily disclose violations receive significantly reduced penalties. BIS considers VSD a major mitigating factor. Not disclosing known violations is an aggravating factor.
ExChek Closes Every Gap
The ExChek Engine installs directly into your AI workflow. Every compliance task that caused the violations above — automated with human-in-the-loop approval.
ECCN Classification
Formal ECCN classification for every item in your catalog using live eCFR data. No more guessing EAR99.
Denied Party Screening
Real-time screening against all 14 USG restricted party lists. Entity List, SDN, DPL, Unverified — all of them.
License Determination
Country Chart analysis, License Exception eligibility (TMP, TSR, LVS, BAG, ENC), and application guidance.
Red Flag Assessment
Automated BIS Supp. 3 red flag checklist for every transaction. Catch diversion indicators before they become violations.
Export Documentation
SLI, commercial invoices, AES/EEI data elements — generated automatically with audit-ready formatting.
Retrospective Audit
Lookback analysis across historical shipments. Find violations before BIS does and file voluntary self-disclosures.
Get the Self-Audit Checklist
8 questions. 5 minutes. We'll email you the compliance checklist that most SMBs fail — with the specific gaps that lead to BIS penalties. No sales call. No waiting.
Free. Instant delivery. No sales call. Just the checklist.
Frequently Asked Questions
Who needs export compliance?
Any US company that exports products, software, or technology — including cloud-hosted software accessed by foreign nationals. If your product has an ECCN (even EAR99), you have compliance obligations. Foreign companies handling US-origin items are also subject to EAR.
What is a Temporary Denial Order (TDO)?
A TDO immediately revokes a company's ability to export. BIS can issue one without a trial. Your shipments stop, your customers can't receive orders, and your business grinds to a halt — often for years.
What are the maximum penalties?
Civil penalties can reach $374,474 per violation or twice the transaction value, whichever is greater. Criminal penalties go up to $1 million per violation and 20 years imprisonment. Penalties are per-violation — each shipment is a separate violation. Seagate paid $300M for 429 violations.
Can small companies really get fined millions?
Yes. Haas Automation was fined $2.5M for CNC parts worth just $29,254 — penalties 85x the transaction value. LuminUltra, a Canadian biotech, paid $685K. BIS penalties are based on the severity of the violation, not company size or shipment value.
What does the self-audit checklist cover?
8 critical compliance questions covering ECCN classification, denied party screening, Export Compliance Programs, recordkeeping, deemed exports, red flags, and retrospective audits. You score yourself instantly and know exactly where your gaps are — plus direct links to fix each one with the free ExChek Engine.
How is ExChek different from hiring a consultant?
ExChek is an engine that runs inside your AI workflow — classification, screening, documentation, and audit happen continuously, not once a year. It costs $0 for the free tier vs $50K+ for a consultant engagement.
What if we find violations during the audit?
That's actually the best outcome. BIS significantly reduces penalties for companies that self-disclose violations through Voluntary Self-Disclosure (VSD). Finding violations proactively is how you protect your company. 3D Systems' voluntary cooperation was a factor in their settlement terms.
What is the Disruptive Technology Strike Force?
Launched February 2023 by DOJ and Commerce, the DTSF targets illicit technology transfers to adversaries. It brought 26+ criminal cases in its first two years — 15 in 2024 alone — and expanded to 17 location units across the US. It specifically targets semiconductor, AI, quantum, and defense technology diversions.
Has BIS enforcement changed recently?
Yes, significantly. BIS ended its 'no admit, no deny' settlement policy — companies must now admit the underlying factual conduct. Commerce Secretary Lutnick has pledged a 'dramatic increase' in enforcement. The Applied Materials ($252M) and Cadence ($140M+) penalties in 2025-2026 signal a new era of record penalties.