18 U.S.C. § 554 – Smuggling goods from the United States

18 U.S.C. § 554 – Smuggling Goods from the United States

18 U.S.C. § 554 is a federal statute that prohibits the smuggling or attempted smuggling of goods out of the United States. This law makes it illegal to fraudulently or knowingly export items from the U.S. contrary to any laws or regulations. It also prohibits facilitating the transportation, concealment, or sale of such merchandise prior to exportation. Let’s break down the key aspects of this law.

What Does the Law Prohibit?

There are a few key prohibitions under 18 U.S.C. § 554:

• Exporting or attempting to export goods from the U.S. contrary to laws/regulations
• Receiving, concealing, buying, or selling goods intended for illegal export
• Facilitating the transportation, concealment, or sale of goods prior to illegal export

So in plain English, you can’t try to sneak goods out of the country illegally, help anyone else do so, or get involved with goods you know are meant for illegal export. This law is aimed at stopping smuggling.

What Kind of Penalties Does it Carry?

If convicted under 18 U.S.C. § 554, penalties can include:

• Up to 10 years in federal prison
• Fines under the federal sentencing guidelines
• Both fines and imprisonment

That’s a pretty hefty punishment for smuggling. The potential prison sentence is longer than for many other federal crimes. Fines can also be steep – over $250,000 in some cases.

What’s the Difference from Regular Smuggling?

There are other federal laws that prohibit smuggling goods into the U.S., such as 18 U.S.C. § 546. So how is §554 different? This law only applies to exporting items illegally out of the country. Smuggling stuff into the U.S. falls under separate statutes.

What Kind of Goods Does This Law Apply To?

Section 554 applies broadly to “any merchandise, article, or object.” So it covers both legal goods like cars, food, or clothes, and illegal ones like drugs, counterfeit items, or weapons. It can also include services like financial/technical data. Basically, if it’s an item of some kind, this law applies to smuggling it out of the U.S.

What Are Some Examples of Violations?

Some examples of conduct that could violate 18 U.S.C. § 554 include:

• Smuggling protected wildlife like eagle feathers out of the country
• Exporting cars or vehicle parts to avoid U.S. safety standards
• Sending weapons overseas illegally as military contraband
• Trafficking drugs or illegal substances abroad
• Transferring financial data or technology overseas unlawfully

As you can see, the law covers a wide range of goods and items. Anything exported illegally could potentially lead to charges.

What Are Some Key Court Decisions?

There are several notable court cases that have helped define 18 U.S.C. § 554 over the years:

• U.S. v. Ayesh (9th Cir. 2002) – The 9th Circuit held that exporting weapons on the U.S. Munitions List requires an export license, so doing so without one violates §554.
• U.S. v. Izurieta (11th Cir. 2013) – The court ruled exporting goods made using U.S. technical data controlled under the Export Administration Regulations (EAR) can constitute a §554 violation.
• U.S. v. Homa Int’l Trading Corp. (3rd Cir. 1968) – Exporting goods without proper country of origin labels was found to breach Customs regulations and violate §554.

These cases help define what kinds of exports are considered illegal under federal laws or regulations.

Are There Any Defenses?

It can be difficult to fight §554 charges, but some potential defenses include:

• No intent – The export was accidental or you didn’t know the goods would be exported.
• No illegal export – You can argue the goods were not actually exported illegally.
• Entrapment – Law enforcement pressured you into committing the crime.

The government has to prove you knew the exportation was illegal. But if the export did clearly break federal laws, it can be hard to claim lack of intent. An experienced criminal defense lawyer is often needed to contest §554 charges.

What About the First Amendment?

The First Amendment doesn’t provide a defense to §554 charges. Smuggling goods is not an expressive act protected by free speech. However, the law can raise concerns when it involves restricting information flows across borders. The Electronic Frontier Foundation has criticized applying §554 and other export laws to open-source encryption software.

Does This Only Apply to Individuals?

No, §554 applies to both individuals and corporations. Many cases involve companies illegally exporting goods abroad. Corporations can face even steeper fines in the millions of dollars for smuggling violations. Company officers and employees can also be charged personally for directing or assisting with illegal exports.

Conclusion

Smuggling goods out of America is a serious federal crime. 18 U.S.C. § 554 prohibits exporting products overseas illegally, which can result in stiff prison sentences and fines. This law applies to both physical goods and intangible data. If you’re ever accused of violating §554, be sure to consult an attorney experienced with federal criminal charges.