Any company or subcontractor that directly or indirectly sells products or services to the U.S. Department of Defense must be ITAR compliant.
What is ITAR Compliance?
Administered by the Directorate of Defense Trade Controls (DDTC), the International Traffic in Arms Regulations (ITAR) is the set of rules and regulations that govern exports of all defense-related materials, including services, software and hardware. ITAR compliance requires knowing the definitions of important terms, information and procedures for registration and licensing, and penalties, violations, general policies and administrative procedures.
Objectives of ITAR
The main objective of ITAR is to further U.S. foreign policy objectives, safeguard national security and advance the nation's economic interests by having an effective export control and treaty compliance system that promotes U.S. strategic technology leadership. In essence, ITAR specifies that companies that manufacture or deal with defense technologies, services, supplies and equipment may trade those items only with U.S. persons and entities, unless they qualify for a special exemption or obtain Department of State authorization.
Consequences of Non-Compliance
Individuals and companies that provide foreign persons with access to ITAR-restricted and protected items face major consequences for non-compliance. There is a complicated set of ITAR and U.S. export regulations. With regulatory agencies stepping up enforcement activities, organizations in the defense industry must ensure that they achieve ITAR compliance.
Check the U.S. Munitions List
To determine whether your organization must be ITAR compliant, check to see whether the items you intend to export are covered in the USML (U.S. Munitions List). If they are on the list, to receive the appropriate license or other types of approval for export, the company should review registration requirements, pay the fee and submit a registration statement.
U.S. entities in the business of manufacturing, brokering or exporting defense equipment or defense-related services also must register with the DDTC. Although the registration is required by the State Department, it does not automatically confer exporting rights or privileges on the registered entities.
Acheiving ITAR Compliance
The costs and challenges of achieving ITAR compliance can be overwhelming and are usually an unwanted distraction and strain on your company's resources. Like most decision-makers and business owners, you probably prefer to focus instead on running and expanding your business. In addition, you probably lack the necessary training and expertise to detect and fix ITAR compliance gaps in your organization.
Although establishing an ITAR compliance program can be a pain, the efforts are well worth it. You can mitigate and eliminate the pains of setting up such a program by leveraging E-N Computers'ITAR & Export Compliance consulting experts. We are hands-on professionals with years of experience in handling small- and medium-size businesses and enterprise-level operations.
E-N Computer's ITAR-compliance specialists can help you understand the complexities of ITAR, implementing an ITAR Compliance Manual and ITAR Training for your organization so your employees can manage regulatory requirements on a recurring basis.