What Is International Traffic in Arms Regulations ITAR?
ITAR Compliance: What Is It, Who Needs This and Penalties when you ignore it
The International Trade in Arms Regulations (ITAR) is undoubtedly already available to you if your company is involved in the selling of some combat equipment, installations, or related technical information. And if you don’t, then you’re going to be! Such export control laws have the function of prohibiting illegal foreign nationals from supplying any classified details. We discuss what ITAR entails and who needs to deal with it, and the consequences for violating it.
ITAR Compliance is for you
Compliance with ITAR in the most precise form means following all the requirements set out in the International Weapons Trading Regulations (ITAR). The tricky part is that there is no clear concept of ITAR compliance, other than complying with the rules. Below are the basic measures:
- Sign up to U.S. Combat export legislation directorate, state department. The cost of enrollment is non-refundable.
- Use the correct licenses for the products that you want to sell.
- Verify all the procedures and methods are compliant with ITAR.
- Make sure everybody in your facility understands ITAR and is knowledgeable on how to remain compliant with your policies and procedures.
So, if it sounds a bit vague, it is! What comes down to it is that you are responsible for ensuring compliance with all relevant ITAR guidelines. There is no such thing as ITAR compliance testing from third parties — you have to set up the processes correctly and only make sure that the laws are observed. One part of enforcement with ITAR is that everyone’s citizenship has to be verified before they have access to classified details. That is where a visitor management system blends perfectly. You can not only ask for clarification of citizenship status in a guest management program.
That ensures that you can still see at a glance who’s at your facility. They may also use a patient control program to gather signatures on the required legal documents, such as NDAs and Software Management Plans, as well as keep track of whoever uses the building. Learn all of these and other facets of the different management systems.
The Export Administration Regulations - how ITAR fits together.
The EAR is the Department of Commerce’s rules on exports. The purpose of these laws is to control products of a commercial nature-but they are useful in some military applications. For some substance classes, there are two sets of laws, two divisions. One is military and one is commercial. A clear illustration of whether a triggered spark gap is known to be a commercial product. A triggered spark gap is an operating device used by hospitals to blast the kidneys stones. It is a very thin device with a very hot tip and this destroys the kidney stone of the body. It also so happens that to detonate a nuclear bomb, you can also use a triggered spark gap. The U.S. government is concerned that this device might be used by a foreign nation to detonate a nuclear weapon and placed the item under EAR export controls.
There was in fact an export situation on triggered spark gaps. This is not a military commodity today, it was not produced for military use, and it was not used for military financing. It was developed for use in the healthcare sector and is therefore NOT governed under ITAR. While it can also be used for the purposes of fighting and defense and is subject to EAR.
The FAQs further specify that, with the degree that exporters and/or foreign entities are in proper faith adopting the frameworks proposed which have been revised by the law of 2015 on the procurement by defense services by U.S. persons overseas, which, amongst other items, included an exception for a U.S. contractor of any foreign person under certain circumstances, DDTC would generally consider the delivery for defense services by the U.S.
For more clarity on, inter alia, the specific information needed for the authorization request and the conditions to be fulfilled before the authorization request is sent, please see the full text of the FAQs.
Advantages of ITAR
Nonetheless, companies still overlook this regulation which can often be an essential aspect of a company’s marketing plan. Good compliance with ITAR can improve an organization’s reputation and give it a leg up in a dynamic business environment.
International markets will combat domestic sales decline
Although the United States security sector is shrinking, overseas business is on the rise. Most international military organizations choose to buy the top security equipment and facilities provided by U.S. companies in Europe, the Middle East, Latin America, and Asia for delivery. Yet U.S. export laws regulate the sale of military products and/or services and, without proper compliance experience, entering such markets may result in a significant legal risk. Though, because the company has now developed regulatory capabilities with ITAR, it will aggressively pursue this sector and if certain businesses do not, it will also have the potential to exploit these opportunities. Again, a successful compliance program created with ISO Pros would offer the organization a substantial advantage over the other companies in looking for defense market opportunities.
ITAR enforcement is also important for attack and defense. Good security enforcement protocols deter violations, regulatory disputes, and contract damages. On offense, offering a strategic advantage in a tough business setting.
ITAR For Your Defense Executives
We have experts ready to help your defense executives to understand what ITAR means in their enterprises. Our team offers a straightforward, non-technical summary of the core concepts of ITAR, as well as the recent export control laws. They are great at dealing with senior executives, as well as compliance employees and corporate counsel.
ISO Pros assist ITAR compliance by helping customers to define important data that will help their company to make choices on how to manage and administer such data. Investing in these systems will offer a buffer with ‘reasonable measures’ in the case of a violation of ITAR regulations.
- Growing the awareness of a user to their duty to manage exports
- Facilitate identification of the correct papers with their amount of export control
- Provide autonomous ‘test and deliver’ at user level clearance
- Allow domain clearance checks to ensure intelligence is provided by the appropriate external organizations
- Take advantage of certain third party technology which can help to secure your records.
You can be sure that ISO Pros has your best interests at heart. We know how easy it is to contravene the ITAR but also how simple it can be to put the correct measures in place to secure your business and more.