ITAR Certified – Is that a Thing?

Is ITAR Certification Real?

What exactly does it mean to be ITAR Certified?  Does the US Government offer courses where at the end there is a quiz and if you pass you receive a certificate?  Is it equivalent to being a licensed Customs broker?

The answer to both questions is No.

Technically, there is no such thing as being ITAR Certified – at least not in the eyes of the US Government.  There is, however, a requirement to be compliant with all US regulations – including exports laws which include adhering to the International Traffic in Arms Regulations (ITAR).

Understanding ITAR Compliance vs. Certification

So why do some companies claim to be ITAR Certified?  Even having an image on their website claiming to be ITAR Certified?  I am not sure that I can answer those questions, but the questions that should be asked instead are:

1. Are you registered with the Directorate of Defense Trade Controls (DDTC)?
2. Do you have an Export Management and Compliance Program (EMCP) or ITAR Compliance Program (ICP) that outlines the key elements of an effective plan to adhere to the regulations?

As a reminder, any entity who is engaged in the manufacturing, exporting, temporary importing or brokering of defense articles (including technical data) or provisioning of defense services controlled by the ITAR, requires a yearly registration with DDTC which includes maintaining that registration going forward (if there is continued ITAR work).

It is important to keep in mind that registration is only the first step in ITAR compliance. Being ITAR registered does not ensure itar compliance does not mean that companies are ITAR compliant.

Building a Comprehensive ITAR Compliance Program

DDTC expects companies who become ITAR registered to understand the regulations and comply with those requirements on their own.  The reason behind this is because the US Government expects everyone to assist in the protection of our nation’s sensitive technologies.

This is further enforced within the registration application process where they ask (Question 10 on the DS-2032) if companies have an ITAR Compliance Program in place.

Having a program in place means learning what the ITAR requirements are, developing internal written procedures/policies/work instructions to comply with those regulations and implementing them prior to beginning any ITAR work.

Having a program in place is more than just a set of procedures that sit on someone’s desk or shared drive – it assists in the monitoring and control of exports and other regulated activities and instructs employees on the steps to take to accomplish that requirement.

It should also be tailored to your business, be regularly assessed and updated as needed and most importantly, be fully supported by senior management.  Afterall, compliance starts at the top!

Developing a Comprehensive ITAR Compliance Program

Per DDTC guidance, the first step on developing an export compliance program is to know your business, obligations and risk areas. Understanding whether your company is an exporter, manufacturer or broker; or a combination of the three.

This is a fundamental element to determine what key issues should be addressed in your company’s program.

A solid plan typically includes a Management Policy (remember – Compliance Starts at the Top and sets the tone for all employees that their Senior Management is committed to compliance), as well as addressing several departments where export compliance touches (ex. procurement, sales, shipping, IT, customer service).

Does that mean that if you are not in any of these departments that complying with the ITAR regulations does not apply to?

No, because it also affects travelers, mergers and acquisitions, finance, human resources, visitors/meetings and those that review contracts.

Common Pitfalls of ITAR Compliance

Being ITAR registered is only Step 1 to start your ITAR compliance journey.

Without a plan in place on how employees and companies are to comply with these set of export regulations leads to companies inadvertently violating the export control laws.  Some common pitfalls that could occur if you are ITAR registered but do not have a plan in place are:

• Having ITAR technical data sent from a US company to another US company without the proper IT controls (as spelled out in the ITAR);
• Granting access to the plant floor where ITAR items are being manufactured to non-US people without the proper export license in place (this includes foreign nationals working in the US for a US company);
• Not identifying which items fall under ITAR and inadvertently exporting them from the US

The Importance of a Compliance Plan

The bottom line – being ITAR registered is more than a check in the box. It requires all companies to have a plan to adhere to the regulations for all departments affected.

Having an export compliance plan that employees have been trained on and can easily access for guidance is key to full compliance programs avoiding inadvertent violations which can lead to penalties and the denial of export privileges.

Schedule a no-charge consultation with one of our experts today to ensure your organization meets all regulatory requirements.