Registration

The International Traffic in Arms Regulations (ITAR) and Export Compliance are two critical areas of regulation that any business dealing with defense-related articles and services must understand and adhere to. These regulations are designed to protect U.S. national security by controlling the export and import of defense-related articles and services.

Understanding ITAR and Export Compliance is not just about knowing the rules, but also about understanding the underlying principles and the potential consequences of non-compliance. This glossary aims to provide a comprehensive understanding of these complex regulations, breaking down the jargon into understandable terms and providing practical advice for businesses dealing with these regulations.

Understanding ITAR

The International Traffic in Arms Regulations (ITAR) is a set of United States government regulations that control the export and import of defense-related articles and services. The U.S. Government views the sale, export, and re-transfer of defense articles and defense services as an integral part of safeguarding U.S. national security and furthering U.S. foreign policy objectives.

The Directorate of Defense Trade Controls (DDTC), under the U.S. State Department, is the controlling agency for ITAR. It is responsible for enforcing ITAR and ensuring that businesses comply with its regulations.

Key ITAR Terms

Understanding ITAR begins with understanding its key terms. The 'U.S. Munitions List' (USML), for example, is a list of articles, services, and related technology designated as defense and space-related by the U.S. government. These items require export authorization from the State Department.

'Defense Articles' are any item or technical data designated in the USML. This includes software, technical data, and defense services. 'Defense Services' are the furnishing of assistance, including training, to foreign persons, whether in the U.S. or abroad, in the design, development, engineering, manufacture, production, assembly, testing, repair, maintenance, modification, operation, demilitarization, destruction, processing or use of defense articles.

ITAR Compliance

Compliance with ITAR is crucial for any business dealing with defense-related articles and services. Non-compliance can result in severe penalties, including fines, debarment, and even imprisonment. It's important to note that ITAR applies to all U.S. persons, wherever located, and to foreign persons subject to U.S. jurisdiction.

ITAR compliance involves several steps, including registering with the DDTC, understanding the USML, obtaining the necessary export licenses, maintaining proper records, and implementing a compliance program. Each of these steps is critical and requires a thorough understanding of ITAR regulations.

Understanding Export Compliance

Export Compliance refers to the set of laws, regulations, and policies that govern the export of certain goods, technology, and services from the U.S. These regulations are designed to protect U.S. national security, prevent the proliferation of weapons of mass destruction, and further U.S. foreign policy objectives.

The Bureau of Industry and Security (BIS), under the U.S. Department of Commerce, is the primary agency responsible for implementing and enforcing Export Compliance regulations. The BIS administers the Export Administration Regulations (EAR), which govern the export and re-export of most commercial items.

Key Export Compliance Terms

Understanding Export Compliance also begins with understanding its key terms. The 'Commerce Control List' (CCL), for example, is a list of items under the export control jurisdiction of the BIS. These items require an export license depending on the item, destination, end-use, and end-user.

'Export Control Classification Number' (ECCN) is a five-character alphanumeric code used to identify items for export control purposes. 'Deemed Export' refers to the release of technology or source code subject to the EAR to a foreign person in the U.S. Such release is "deemed" to be an export to the person's country or countries of nationality.

Export Compliance Procedures

Compliance with Export Compliance regulations involves several steps, including determining if the item is subject to the EAR, classifying the item using the ECCN, identifying the appropriate license exception, and maintaining proper records.

It's important to note that even if an item does not require a license for export, the exporter must still comply with all other EAR requirements. This includes record-keeping requirements and the prohibition on exports to embargoed countries and prohibited parties.

Registration Process

Both ITAR and Export Compliance require businesses to register with the respective controlling agency. For ITAR, this is the DDTC, and for Export Compliance, this is the BIS. Registration is the first step towards compliance and is a legal requirement for any business involved in the manufacture, export, or brokering of defense articles or services.

Registration does not confer any export rights or privileges, but it is a precondition for the issuance of any license or other approval for export. The registration process involves submitting a completed registration form, along with the appropriate fee, to the controlling agency.

ITAR Registration

ITAR registration involves submitting a completed DS-2032 form to the DDTC. The form requires information about the company, including its name, address, and ownership details, as well as information about the company's activities and the defense articles or services it deals with.

Once the DDTC receives the completed form and the registration fee, it reviews the application and, if approved, issues a registration code. This code is required for all future correspondence with the DDTC and for applying for export licenses.

Export Compliance Registration

Export Compliance registration involves submitting a completed BIS-711 form to the BIS. The form requires information about the company, including its name, address, and ownership details, as well as information about the items the company intends to export.

Once the BIS receives the completed form and the registration fee, it reviews the application and, if approved, issues a registration code. This code is required for all future correspondence with the BIS and for applying for export licenses.

Conclusion

Understanding ITAR and Export Compliance is critical for any business dealing with defense-related articles and services. These regulations are complex and require a thorough understanding to ensure compliance. Non-compliance can result in severe penalties, including fines, debarment, and even imprisonment.

This glossary has provided a comprehensive understanding of these regulations, breaking down the jargon into understandable terms and providing practical advice for businesses dealing with these regulations. By understanding and adhering to these regulations, businesses can protect themselves from penalties and contribute to U.S. national security and foreign policy objectives.