The International Traffic in Arms Regulations governs the permanent and temporary export of defense related goods, technologies and services on the United States Munitions List (USML).
The U.S. Department of State, Directorate of Defense Trade Controls (DDTC) functions as both interpreter and enforcer of the ITAR, the goal of which is to safeguard the national security of the U.S. and its allies, and further U.S. foreign policy and economic objectives.
The primary governing statutes include 22 U.S.C. 2778 of the Arms Export Control Act (AECA) and Executive Order 11958, as amended.
ITAR Registration and Compliance
There are a number of steps to becoming registered and maintaining ITAR compliance:
more +
- Register with the State Department;
- Establish a written Company Export Compliance Policy and Procedure Manual;
- Determine the USML classification of your products, parts and technologies — including those on which your services are based;
- Submit license applications for all exports of controlled items well in advance of shipments or the start of defense-related projects, and ensure compliance with the terms of your license;
- Know whether any party you do business with, including those who may have access to the technology, does not fall under the definition of a U.S. person;
- Screen for denied parties;
- Ensure you have a Technology Control Plan in place; and
- Keep accurate records on all activities against State Department licenses and agreements.
Failure to comply with ITAR, or the terms of your license, triggers penalty provisions that include fines, denial of further exporting privileges, and jail terms of up to 30 years for the violator,
his executive and board. If these are not damaging enough, there are the marketplace consequences of ruined professional and corporate reputations.
How does ITAR affect your company?
If your company deals with military equipment, supplies, or technologies, ITAR regulations dictate that as the exporter it is your responsibility to ensure proper classification of controlled goods and to maintain compliance with the ITAR or face the consequences.
more +
ITAR requires that you "export" or share these items only with U.S. persons and organizations — unless you receive authorization by way of a license from the Department of State or otherwise qualify for a special exemption.
Exports include not only physical exports to other countries, but also “deemed exports” of controlled knowledge or know-how to foreign persons, both in the U.S. and abroad.
Failure to comply with the regulations or the terms of your license triggers ITAR penalty provisions which include fines, denial of further exporting privileges, and jail terms of up to 30 years for the violator, his executive and board.
If these are not damaging enough, there are the marketplace consequences: irreparable loss of customers and professional and corporate reputations.
Classification under the USML
The U.S. Munitions List (USML) categorizes goods and technologies governed by the ITAR. It consists of 21 categories from firearms and electronics, to vessels of war and missile technology,
to nuclear weapons and biological agents. more +
Some items in the USML are identified as Significant Military Equipment (SME), which are even more closely controlled and monitored. For example, parts and attachments for an automatic firearm are not considered SME,
but a fully automatic firearm is defined as SME.
Exporters of military defense items are generally familiar with the USML and the ITAR, however companies that export civilian items may not be aware that some of their products are "dual-use" items, and might fall under defense trade controls governed by other departments. Dual-use items are civilian products with military applications.
For example, electronic equipment or lenses manufactured for civilian cameras that are also used in military tracking devices.
How we can Help
Visual Compliance offers comprehensive ITAR solutions with the depth and breadth to implement and manage all aspects of ITAR, Wassenaar, EAR and OFAC compliance.
Solutions of particular relevance to companies in the ITAR space include:
- Classification & License Determination
- Restricted/Denied Party Screening
- License and License Activity Management
- Travelling Employee and Visitor Compliance
- Export Documentation Management
Visual Compliance world-class functionality reduces workload, streamlines processes, and establishes easy-to-access audit trails. Extraordinarily easy to use, content-comprehensive (with all revisions as they are published) and with full user support,
you'll enjoy rapid user uptake, and revolutionary reductions in training time and effort. Multiple deployment options extend your reach, capabilities and visibility,
and include integration with your key corporate technologies. With virtually no IT resources required, implementations are quick and easy.
For more Information
For more information, call toll-free 1-877-328-7866 and talk to one of our ITAR compliance consultants.
They'll help you analyze your requirements, evaluate your options, and provide focused demonstrations.
Or send an email.
Visual Compliance provides robust, cost-effective automation solutions and regulatory content to manage all of aspects of foreign trade compliance. With over 30 years of experience helping companies easily gain control and visibility over their compliance issues and processes,
our solutions are relied on by more than 4,000 companies at home, and abroad.
