15 C.F.R. § 791.316 – Finding of violation.

(a) When issued.
1. (1) BIS may issue an initial finding of violation that identifies a violation if BIS:
  1. (i) Determines that there has occurred a violation of any provision of this subpart, or a violation of the provisions of any exemption, general authorization, specific authorization, regulation, order, directive, instruction, or prohibition issued by or pursuant to the direction or authorization of the Secretary pursuant to this subpart or otherwise under IEEPA;
  2. (ii) Considers it important to document the occurrence of a violation; and
  3. (iii) Concludes that an administrative response is warranted but that a civil monetary penalty is not the most appropriate response.
2. (2) An initial finding of violation shall be in writing and may be issued whether or not another agency has taken any action with respect to the matter.
(b) Response—(1) Right to respond. An alleged violator may contest an initial finding of violation by providing a written response to BIS.
(2) Deadline for response; default determination. A response to an initial finding of violation must be made within 30 days as set forth in paragraphs (b)(2)(i) and (ii) of this section. The failure to submit a response within 30 days shall be deemed to be a waiver of the right to respond, and the initial finding of violation will become final and will constitute final agency action. The violator may seek judicial review of that final agency action in Federal district court.
1. (i) Computation of time for response. A response to an initial finding of violation must be electronically transmitted on or before the 30th day after the date of delivery by BIS.
2. (ii) Extensions of time for response. If a due date falls on a Federal holiday or weekend, that due date is extended to include the following business day. Any other extensions of time will be granted, at the discretion of BIS, only upon specific request to BIS.
(3) Form and method of response. A response to an initial finding of violation need not be in any particular form, but it must be typewritten and signed by the alleged violator or a representative thereof, contain information sufficient to indicate that it is in response to the initial finding of violation, and include the BIS identification number listed on the initial finding of violation. A digital signature is acceptable.
(4) Information that should be included in response. Any response should set forth in detail why the alleged violator either believes that a violation of the provisions of this subpart did not occur and/or why a finding of violation is otherwise unwarranted under the circumstances. The response should include all documentary or other evidence available to the alleged violator that supports the arguments set forth in the response. BIS will consider all relevant materials submitted in the response.
(c) Determination—(1) Determination that a finding of violation is warranted. If, after considering the response, BIS determines that a final finding of violation should be issued, BIS will issue a final finding of violation that will inform the violator of its decision and may include a responsive administrative action other than a civil monetary penalty. Any action taken in a final finding of violation shall constitute final agency action. The violator has the right to seek judicial review of that final agency action in Federal district court.
(2) Determination that a finding of violation is not warranted. If, after considering the response, BIS determines a finding of violation is not warranted, then BIS will inform the alleged violator of its decision not to issue a final finding of violation.