You will want to discuss this whole topic with your organization’s legal staff, and will probably also want to mention this discussion thread to them.
Not complying with applicable export and import regulations, and with other applicable regulations—whether at a border crossing, or elsewhere—can end badly, either for the individuals involved, or quite possibly for the individuals and the organization involved.
I’d expect that not having device access would result in device seizure and detention. They’re just going to keep the device. And quite probably also keep the bearer—a person that might be called a “mule” in some similar contexts—in custody, pending compliance with their demands. Or forever, if they’re inclined.
If your environment and your applications require data security past what Apple offers, or if y’all are transporting sensitive data across international borders, you will want and need legal and technical and organizational policy review. This includes practices, software, and hardware all appropriate, and preferably also compliant with all applicable regulations.
For this topic, either review your organization’s existing policies where it covers this topic, or you will want and need to consult with your organization’s legal staff to address this topic.
I would not want to knowingly be holding a device containing sensitive, restricted, or prohibited data at any national border, whether or not I could gain access to the device contents.
IANAL