ITAR Violations

ITAR Violations & Your Business

The International Traffic in Arms Regulations (ITAR) controls the import and export of defense-related goods, technology, and data as listed on the United States Munitions List (USML). Everyone in the supply chain of these goods must remain compliant, whether manufacturers, distributors, or contractors.

These strict export controls apply to all international trade operations as defined in the USML, Part 121 of the International Traffic in Arms Regulations (ITAR):

  • A business of manufacturing
  • Exporters
  • Brokering activities of defense articles
  • Defense services
  • Related technical data

ITAR compliance does not have to be complicated, but companies must receive specific licenses and documentation, and they must be registered with the Directorate of Defense Trade Controls (DDTC).

ITAR Violations Are No Laughing Matter
A simple mistake can lead to serious ITAR violations. You deserve the best ITAR consultants to make sure your ITAR compliance program is maintained to keep you covered against potential ITAR fines and penalties.

ITAR Violations Carry Serious Consequences

Legal compliance with ITAR requires that your business follows all regulations, and you also need to keep updated on amendments and regulations. Even though most people think of physical goods when shipping USML items, compliance covers a broad range of technical data and services.

The United States Government takes ITAR compliance seriously.

ITAR carries massive repercussions for each violation, and your business could receive criminal penalties and civil fines if you fail to comply with any part of those regulations. While violations vary based on severity, type, and scope, there are some general guidelines that you should know when it comes to ITAR violations:

  • Business Fines: Violators can be fined up to $1 million per violation. The business entity will address these fines, and this substantial fine can significantly impact the company’s ability to compete in the market.
  • Personal Civil Penalties: The Secretary of State can choose to apply civil penalties up to $500,000 per violation to an individual.
  • Personal Criminal Penalties: Criminal penalties resulting in years of improvement often applied to violators who knowingly violate ITAR regulations.
  • Debarment or Loss of Export Licenses: In addition to monetary loss through fines, you could lose your ability to conduct business by losing your export license. If you violate ITAR regulations, then you could lose your ability to conduct business as a government contractor.
  • Business Disruption: Receiving sanctions and penalties for ITAR violations is a scary time for company leaders. Not only do you risk severe civil and criminal penalties, but violating the ITAR can also lead to disruptions across your business. Delayed shipments and damage to your brand’s reputation can lead to long-term impacts.

As an exporter of defense articles, you will be required to have sufficient organizational infrastructure to maintain compliance and have the resources to ensure you do not conduct a single violation, whether willful or unintentional.

How Can You Avoid ITAR Violations?

No matter the size, any infraction can spell disaster for you and your business, 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!

Is Your Business Prepared For An Investigation?
Companies are responsible for trade compliance, do you know what to expect if you are subject to a trade compliance audit? Save time and money today and let our trade experts help you avoid ITAR violations!

ITAR Violations F.A.Q.

What does the ITAR regulate?
In the simplest terms, the ITAR regulates the export of defense articles and defense services. In fact, the regulations control a wide array of products, services and technical data. This includes everything from body armor and electronics, to spacecraft, satellites, imaging systems and much, much more.

What are the penalties & fines for ITAR violations?

  • Business Fines: Violators can be fined up to $1 million per violation.
  • Personal Civil Penalties: Penalties up to $500,000 per violation to an individual.
  • Personal Criminal Penalties: Criminal penalties are often applied to violators.
  • Debarment or Loss of Export Licenses: Lose your ability to conduct business as a government contractor.
  • Business Disruption: Delayed shipments and damage to your brand’s reputation can lead to long-term impacts.

What are the most common ITAR compliance violations?

  • Willful failure to comply with ITAR
  • Unintended mistakes or oversight
  • Misrepresentations and omissions