What Does ITAR Compliance Mean?
The U.S. Government requires that any company that exports, manufacturers, and/or brokers defense articles or defense services remain in compliance with a strict set of regulations.
These regulations apply to commodities listed on the United States Munitions List (USML), and almost every company that works with these controlled items or technologies must first be registered with the Directorate of Defense Trade Controls (DDTC).
How To Become ITAR Compliant
A major point that gets companies in trouble is a failure to understand and apply what ITAR compliance really means. In a nutshell, it’s about registering with DDTC, meeting all other requirements of the regulations, implementing a comprehensive compliance program, receiving training, and then following your program on a day-to-day basis.
There are many layers to ITAR compliance, and your company must not violate ITAR regulations while also showing that your employees are educated and trained in various aspects of this complex set of rules.
The Myth: ITAR Certification
If you have been in business for any length of time then you have likely heard about “ITAR Certification” courses, and you may be surprised to learn that there is no such thing as an “ITAR certified company.”
To put it simply, this is one of those buzzwords we often hear in our industry, which doesn’t really mean anything.
Unlike some quality systems (e.g., ISO), there are no published ITAR certification requirements. Therefore, there are no certification bodies who can give you an “ITAR Seal of Approval.”
Even though many people confuse “certification” with “compliance,” it is important to know that there’s no independent certification body for ITAR. Unlike some quality systems (e.g., ISO, Nadcap, AS9100), you cannot hire any outside organization to “certify” your company for ITAR.
ITAR Compliance vs. Certification
Instead of thinking about a single “ITAR certification” for your business, you should instead focus on how to implement plans and systems to comply with the law. ITAR compliance is about understanding regulations and implementing a process to ensure your company does not inadvertently violate the regulations.
In the same way that an organization will analyze and pay its taxes every year (and sometimes hire an accountant to do this for them), so also will companies evaluate ITAR compliance and take active steps to comply (including, sometimes, hiring a consultant like Export Solutions to assist them).
| Topic | What it is / Means | What it is not or Common Misconceptions | Key Requirements / Actions |
|---|---|---|---|
| ITAR Compliance | Companies exporting, manufacturing, or brokering defense articles or services listed on the U.S. Munitions List (USML) must follow strict regulations. Must register with DDTC, implement compliance program, train employees, maintain records, avoid violations. | Not the same as “ITAR Certification.” There is no independent body to certify a company as “ITAR certified.” The term “ITAR Certification” is often a buzzword. | • Register with Directorate of Defense Trade Controls (DDTC)
• Establish a formal written compliance program • Secure management commitment • Provide awareness / training for relevant personnel • Maintain proper documentation & records • Audit processes • Investigate & report violations when needed |
| “ITAR Certification” Myth | Idea that a company can obtain a seal or label proving they are ITAR certified. | Doesn’t exist – no published ITAR certification standard, no certification bodies like those for ISO, Nadcap, etc. | Focus should be on achieving compliance via ongoing processes rather than obtaining a certification seal. |
| ITAR Compliance vs. Certification | Compliance means understanding and applying the law; having internal programs to prevent violations. | Certification implies a one-time badge or external verification which actually does not exist under ITAR. | • Understand regulations thoroughly
• Build and document compliant processes • Train staff regularly • Monitor, audit, adjust • Use experts or consultants if needed to evaluate or maintain compliance |
| Who Needs ITAR Registration | Any company that manufactures defense articles, or exports them, brokers them, or handles related technical data listed on USML. | Thinking that only big companies or manufacturers are affected. Even brokers or freight forwarders can be involved. | • Determine if your item or service is on USML
• Identify your role (exporter, manufacturer, broker, etc.) • Register with DDTC • Meet ongoing regulatory requirements for operations, training, documentation |
Be Sure That You Are ITAR Compliant
Don’t get caught in the trap that many businesses find themselves in! ITAR registration is a crucial step to achieve compliance, but registration is not enough in and of itself. ITAR compliance means much more than submitting the proper forms online and paying the annual fee to the DDTC.
You can’t risk an ITAR violation, and the best way to ensure your ongoing success is by partnering with the ITAR consultants at Export Solutions.
Take the first steps to secure your business and prevent unnecessary headaches so you and your employees can focus on your business.
Our ITAR specialists are standing by and ready to talk with you today!