ITAR Compliance

ITAR Compliance Services

The International Traffic in Arms Regulations (ITAR) is a set of U.S. government rules that control the import and export of various technologies, services, and articles on the U.S. Munitions List (USML).

Compliance with this strict set of regulations is vital because it helps to ensure defense technology and related technical data does not fall into the hands of those who want to harm the greater good of the United States.

As international trade continues to become more complicated, more companies are requiring that their supply chain be ITAR certified and ITAR compliant. Many companies assume that ITAR compliance requirements only relate to tanks, missiles, and weaponry, but these regulations apply to much more than this.

While ITAR applies to military applications, non-compliance can be used to many other applications, and there are severe penalties for companies who fall into noncompliance.

Who Needs To Be ITAR Compliant?

Any company that works with the U.S. military or defense-related products, along with sensitive data that could be applied to related data on the USML, must be aware of and fully compliant with ITAR.

While the main focus of ITAR governance applies to defense-related articles, this strict set of rules also apply to all companies with a wide range of products and services that are covered on the USML.

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The USML is made up of 21 categories of defense articles, services and technical data that is included in the Arms Export Control Act. The U.S. Department of State oversees the security of these items, and some of these categories include:

  • Firearms, Close Assault Weapons, and Combat Shotguns
  • Guns and Armament
  • Ammunition/Ordnance
  • Launch Vehicles, Guided Missiles, Ballistic Missiles, Rockets, Torpedoes, Bombs, and Mines
  • Explosives and Energetic Materials, Propellants, Incendiary Agents and Their Constituents
  • Surface Vessels of War and Special Naval Equipment
  • Ground Vehicles
  • Aircraft and Related Articles
  • Army Training Gear and Training
  • Personal Protective Equipment
  • Military Electronics
  • Fire Control, Laser, Imaging and Guidance Equipment
  • Materials and Miscellaneous Articles
  • Toxicological Agents, Including Chemical Agents, Biological Agents, and Associated Equipment
  • Spacecraft and Associated Articles
  • Atomic Weapons Related Articles
  • Classified Articles, Technical Data, and Defense Services Not Otherwise Enumerated
  • Directed Energy Weapons
  • Gas Turbine Engines and Associated Equipment
  • Submersible Vessels and Related Articles
  • Articles, Technical Data, and Defense Services Not Otherwise Enumerated

In simple terms, if your company is involved in any aspect with any of these products or services, then you need to be ITAR compliant, and your company must register with the DDTC.

Along with US State Department registration, you must also self-certify that your business possesses the knowledge needed to adhere to all of its requirements under the ITAR.

What Does The ITAR Mean For My Company?

Compliance with ITAR is complicated to understand, but overall it is important to know that registering your company with the DDTC and State Department is not enough because you must make sure that you do not breach ITAR compliance regulations in an ongoing manner.

While it is easy to see if your company deals with physical USML items, your company is also required to implement Export Control if you are involved with the supply chain of sensitive information that is involved any of the above issues. We found that most companies are violating at least one aspect of International Traffic in Arms Regulations controls.

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Trade regulations are constantly changing and your business needs to stay compliant with all policies. Our friendly and professional team of trade consultants are here to help you remain compliant in all areas of your business!

Your company is required to implement ITAR training and education for all employees if you provide products or services that have dual-use purposes that could be connected to USML items. Let’s take a look at some overlooked industries that could result in violations.

ITAR For Data Security Companies

Even if your company does not make missiles or tanks, you could be required to comply with ITAR since any technical data, stored in any form, related to a defense article or service, is subject to the ITAR.

Failing to comply with ITAR regulations also apply to data security, so if you operate in this industry, then you need to secure your ITAR-controlled data.

Regulatory responsibilities fall on your company if you send or receive data since data management and FTP providers are not considered an authorized “exporter of data” under current regulations. We work with many data companies to ensure they are compliant with ITAR, and here are some of the best practices to follow when securing ITAR data:

  • The critical thing about ITAR compliance that you must understand is that even if you are registered with the DDTC, the U.S. government requires that you not breach ITAR compliance regulations at any point of your business operations.
  • You are expected to educate and train your staff in ITAR regulations and implement processes to ensure compliance is not broken at any point. Violating the ITAR may result in civil, criminal, imprisonment, and even revoking your business authorization of future export or importation of goods.

ITAR Compliance For Technology Companies

Export control plays a vital role in preventing foreign governments from threatening our nation’s security, and the ITAR affects the manufacture, sale, and distribution of technology. The goal of this legislation is to control how sensitive information is accessed and applied to specific technology and associated data.

The U.S. government uses ITAR to prevent foreign governments from receiving and using different information, and as a result, ITAR can present significant challenges to corporations. This is because large corporations need to transfer data over the Internet or stored locally outside of the United States for business purposes.

In these cases responsibility falls on the manufacturer or exporter to ensure they meet ITAR compliance for different situations:

  • If you are involved with end-to-end military items or defense articles.
  • Regulates goods and technology intended to kill or defend against military settings.
  • Involved with elements associated with space-related technology.
  • House technical data to defense articles or services.
  • What Are The Penalties For ITAR Noncompliance?
  • ITAR compliance is a serious matter for your company, and a violation of ITAR can trigger severe civil penalties or criminal penalties. Once your company is registered with the DDTC, it is vital that your company compliance with all aspects of ITAR regulations.

Compliance violations can have sweeping effects on you as a business owner, and can lead to devastating impacts on your company like:

  • Civil fines as high as $500,000 per violation.
  • Criminal fines up to $1,000,000 and 10 years of imprisonment per violation.
  • Your company could have your export license revoked so you could be barred from exporting or importing in the future.

If you want your company to meet each requirement to ensure you comply with State Department regulations, then you need to provide that all aspects of your business and your entire supply chain adheres to Defense Trade Controls. Are you utilizing a bulletproof solution that aides in your company’s ITAR compliance efforts?

Your ITAR Compliance Specialists

For some people, ITAR compliance can seem like an overwhelming problem that’s too big to tackle. We can help you break it down into simple, easy-to-understand steps, and then work a plan to achieve your goals.

With a little effort and our expertise, your company can be well on its way to international ITAR business and – perhaps more importantly – a compliance program that really works.

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!

ITAR Compliance F.A.Q.s

Who needs ITAR?
Any company that manufactures defense articles or is involved in the export of these items (exporters, brokers, and freight forwarders) must ensure that they are registered with the DDTC and meet any other applicable requirements specified in the ITAR. A defense article is any item or technical data listed on the United States Munitions List (USML).

What is a Deemed Export?
Deemed exports involve the transfer of controlled items or information from one person to another. (Compared to the transfer of controlled items from one country to another.) As an example, if a U.S. citizen emails an ITAR-controlled blueprint to a French citizen, then export is “deemed” to have occurred from the United States to France. The U.S. controls deemed exports in similar ways to actual (physical) movement of items overseas.

What are ITAR controlled goods?
ITAR controlled goods, referred to as defense articles, are those items that are specifically identified in the United States Munitions List, or USML, which is a section within the ITAR.

This list includes descriptions of the items that are controlled. A defense article is any item or technical data listed on the United States Munitions List (USML).