What is considered ITAR? Historically, the answer to that question has been very far-reaching and intentionally broad – encompassing a wide array of end items, sub-assemblies, components, materials and services. However, a recent proposed rule by the DDTC (and a concurrent rule from BIS), is proposing to change all that. If made final, this new…
Yesterday it was announced that United Technologies (UTC) and two of its subsidiaries – Pratt & Whitney Canada and Hamilton Sundstrand – have entered into a consent agreement with the U.S. Department of State. The companies will pay $75 million in ITAR violation penalties, to settle a total of 576 separate charges alleging wrongdoing. According…
Earlier this week, I was updating our list of common ITAR exemptions and noticed that several have been added in recent weeks or months. As with most exemptions, these are narrowly defined and you, as the exporter, must be careful to meet all criteria outlined in the ITAR before proceeding. Some of the recent ITAR…
ITAR compliance is agreeably difficult, and exemptions are not “exempt” from this conundrum. Take, for example, the export of defense articles and technical data. When you export articles and technical data to support that article, they are considered completely separate items and require a separate authorization under the ITAR regulations. This rule is a bit…
Earlier this month, DDTC made final a new exemption for certain exports to the United Kingdom in §126.17 of the ITAR. This exemption is pursuant to the recent Defense Trade Cooperation Treaty between the United States and the United Kingdom. How much is this new exemption going to help your company’s ITAR compliance? And more…
Less than two months after they were added to the Excluded Party List System (EPLS), it now appears that the last of the freight forwarders have been removed from the EPLS – paving the way for a return to “business as usual” for exporters who were being restricted from certain trade activities involving these forwarders…
An Australian man and his company have been charged with several counts of violating the EAR and ITAR (as well as OFAC trade embargoes). The charges point to an alleged scheme to export restricted items from the U.S. to Australia, for transshipment to Iran, in violation of numerous export control regulations. According to the Department…
Sanctions Imposed On ITAR Freight Forwarders Earlier this month, the Department of the Air Force imposed a sanction against six freight forwarding companies who allegedly engaged in anti-trust price-fixing. (UPDATE: That list has now been reduced to five.) As a result, these forwarders are debarred from engaging in government contracts. (And as a result of…
Many clients are surprised when they start working on their export policy by the amount of flexibility there is – particularly when it comes to how they comply with the regulations. This most often occurs during the development or improvement of a company’s export compliance procedures. The basic goals of ITAR and EAR are relatively…
We get a lot of questions from clients about what to do if they use suppliers who are not registered with DDTC to perform ITAR-related work. This presents an interesting dilemma. Although it’s clear that the supplier is violating Section 122.1 of the ITAR, is the company who sends that supplier ITAR-controlled work also violating…