If someone has a company that is involved in the export of any defence service, product, or related technical data, they are probably already familiar with ITAR – the International Traffic in Arms Regulations. If they are not, they should be.
These types of export control laws have been designed for preventing any type of unauthorized foreign nationals from being able to procure any type of sensitive information. Keep reading to learn more about ITAR compliance, who needs it, and the potential penalties for ignoring it.
Understanding ITAR Compliance
At a basic level, when a company is ITAR compliant, it means they have followed all the requirements set by the International Traffic in Arms Regulations. The issue with that is that there is no strict definition of what ITAR compliance is, besides adhering to the law. There are a few steps in this process.
This includes registering with the Directorate of Defense Trade Controls from the U.S. State Department. It is necessary to pay a non-refundable fee when registering. The next step is to acquire the necessary licenses for the items being exported. It is also necessary to make sure the procedures and policies are compliant with all ITAR requirements and ensure that the people at the facility understand ITAR and that they are trained in remaining compliant.
Who Needs to be ITAR Compliant?
All brokers, exporters, and brokers of defence services, articles, and related technical data are required to remain ITAR compliant. A defence article is anything that is listed on the United States Munitions List. Some of the items included on this list are firearms, combat shotguns, assault weapons, ground vehicles, launch vehicles, surface vessels of war, guns, and more.
Defensive services will fall into three primary categories. These include offering assistance, which includes training to any foreign person on anything that is related to various defence articles. This will include the development, design, maintenance, and manufacturing of these things. It also refers to providing any foreign entity with any type of controlled technical data and military draining for foreign forces or units.
There are also three main types of technical data. This includes information besides software used for the design, development, or manufacturing of any defence articles. This will include documentation, drawings, blueprints, and more. Also, all classified information related to the defence articles and any defence services listed above is included. Other items that are included are software that is directly related to the defence articles.
Any type of information that is commonly taught in schools or that is part of the public domain will not be considered as controlled technical data. Something else that is not considered includes marketing information or a general description of defence articles. To help a company or entity figure out if it must be ITAR compliant, there are guides provided by the Directorate of Defense Trade Controls. This guide is called: Getting Started with Defense Trade. Understanding the requirements will help ensure that the right steps are taken when it comes to being ITAR compliant.
