Washington, Feb 24 (NationPress) The United States has indicated a significant uptick in the enforcement of export controls, cautioning that both businesses and individuals breaching dual-use technology regulations will encounter stricter penalties and heightened scrutiny.

During his testimony before the House Committee on Foreign Affairs’ South and Central Asia Subcommittee, David Peters, the Assistant Secretary for Export Enforcement at the Bureau of Industry and Security (BIS), remarked that the risks to U.S. technology have “never been greater.”

“Our adversaries are resolute in their efforts to access our leading dual-use technologies to undermine America’s economic and military dominance,” Peters conveyed to lawmakers in his prepared statement. “Export Enforcement (EE) is pivotal in safeguarding America’s technological advantage.”

He noted that the current administration is “intensifying enforcement actions across the board” under President Donald Trump and Commerce Secretary Howard Lutnick, characterizing a proposed 123% funding boost in the 2026 President’s Budget as “a groundbreaking and transformative America First initiative aimed at securing our Nation’s national security.”

Peters acknowledged that, despite Congress recently allocating additional resources, the enforcement capacity remains under pressure. “Nonetheless, our resources are stretched thin,” he stated, adding that BIS will focus on hiring more staff, enhancing analytics, fostering international partnerships, and implementing training programs to tackle what he termed an “evolving threat landscape.”

Pointing to recent developments, Peters mentioned indictments and arrests in Texas and Florida involving “individuals and entities engaged in the smuggling and unauthorized exports of advanced AI chips and GPUs.”

He also highlighted significant civil penalties imposed over the past year. BIS levied a $95 million fine against Cadence Design Systems for unlawfully exporting critical technology to companies listed on the Entity List, along with a $1.5 million penalty against Exyte Management for failing to prevent in-country transfers to listed entities.

“Just two weeks ago, we announced a $252 million settlement with Applied Materials for illegally exporting semiconductor manufacturing equipment to a company on the Entity List,” Peters noted, labeling it “a statutory maximum penalty and the second largest ‘stand-alone’ penalty ever enforced by BIS.”

He issued a stern warning: “My message regarding enforcement is unequivocal—adhere to the law or brace for the repercussions.”

At the same time, Peters argued that the existing financial penalties under the Export Control Reform Act (ECRA) are inadequate. Current maximum fines are set at twice the value of the unlawful transaction or around $374,000 per violation, compared to up to $1.2 million per violation under the Arms Export Control Act that governs military exports.

“In simple terms, ECRA’s financial penalties fall short in deterring and punishing malfeasance and fostering a culture of compliance among companies,” he remarked, adding that the administration is open to collaborating with Congress to discuss stronger penalties.

Peters observed that enforcement efforts yield substantial returns. In fiscal year 2025, EE received $87 million in funding but generated $192 million in criminal and administrative penalties, along with more than $81 million in criminal forfeitures and $5 million in restitution.

The BIS is responsible for overseeing the civil and criminal enforcement of U.S. dual-use export control laws, which pertain to technologies applicable in both commercial and military sectors.

In recent years, Washington has tightened restrictions on advanced semiconductor exports, especially those related to artificial intelligence and high-performance computing, amid escalating concerns about technology transfers to strategic competitors.