Why Does The United States Have Export Controls?
Certain destinations, organizations and individuals are subject to trade sanctions, embargoes and restrictions under U.S. law. The United States has export controls in place to protect national security interests and to promote its foreign policy objectives. The U.S. also participates in various multilateral export control regimes to prevent the proliferation of weapons of mass destruction and prevent destabilizing accumulations of conventional weapons and related material. ITAR is only one part of the web of laws & regulations prohibiting U.S. individuals and companies from engaging in business with prohibited & sanctioned countries and persons for various economic, financial, anti-terrorism and human rights issues.
What Is I.T.A.R.?
ITAR is an acronym for The International Traffic in Arms Regulations. It is the United States regulation that controls the manufacture, sale, and distribution of defense and space-related articles and services as defined in the United States Munitions List (USML). The United States Munitions List (USML) list also restricts all technical data including the plans, diagrams, photos, and other documentation used to build ITAR-controlled military gear.
Does My Company Have To Register With ITAR?
If your company manufactures, exports, imports or brokers any defense articles, including technical data, and/or furnishes defense services listed on the United States Munitions List (ITAR §121), The Arms Export Control Act requires that you register with the Directorate of Defense Trade Controls (DDTC) as described in ITAR §122 & §129. Registration is primarily a means to provide the U.S. Government with necessary information on who is involved in certain ITAR controlled activities. However, registration does not confer any export or temporary import rights or privileges. Registration is generally a precondition for the issuance of any license or other approval and use of certain exemptions.
Registration Requirements as per ITAR §122.1;
- Any person who engages in the United States in the business of manufacturing or exporting or temporarily importing defense articles, or furnishing defense services, is required to register with the Directorate of Defense Trade Controls under §122.2. For the purpose of this subchapter, engaging in such a business requires only one occasion of manufacturing or exporting or temporarily importing a defense article or furnishing a defense service. A manufacturer who does not engage in exporting must nevertheless register.
ITAR Prohibited Countries & Persons
ITAR Prohibited Countries Include: Afghanistan, Belarus, Central African Republic, Cuba, Cyprus, Eritrea, Fiji, Iran, Iraq, Cote d’Ivoire, Lebanon, Libya, North Korea, Syria, Vietnam, Myanmar, China, Haiti, Liberia, Rwanda, Somalia, Sri Lanka, Republic of the Sudan (Northern Sudan), Yemen, Zimbabwe, Venezuela, Democratic Republic of the Congo, as well as any UN Security Council arms embargoed country.
In addition to the prohibited countries, the US Commerce Department also maintains a “Denied Persons List” which is a list of individuals who are denied export privileges by the Commerce Department.
How To Determine If Your Company Require An Export License.
To determine whether or not a shipment, transfer of products, specifications or drawings or disclosure of information will require an export license, you must first consider what is being shipped, where it is going, and to whom it is being exported or disclosed to. Combined, the Treasury Department, the Commerce Department and the State Department list embargoes against 30 countries or territories.
Does Registering My Company Mean We Will Be ITAR Certified?
Merely registering your company with the U.S. State Department’s Directorate of Defense Trade Controls (DDTC) does not make your company ITAR certified or ITAR compliant. Your company must first understand and abide by ITAR regulations as it applies to all USML identified goods or services. You must also understand what is required to be ITAR compliant and then certify that you possess that knowledge. Only after registering & meeting all the requirements of ITAR can a company consider itself compliant and certify itself as such.
What Are The Requirements To Come Into Compliance with ITAR and Remain Compliant?
Registering your company with the Directorate of Defense Trade Controls (DDTC) to sell your products or services in the ITAR industry is just the start. ITAR requires that your company follow strict operating procedures and standards to protect all U.S. defense and military-related technologies, technical data, and defense services. To be considered compliant, your company must first establish policies and procedures to comply with ITAR regulations. This includes a robust & secure record-keeping requirement for all technical data including the plans, diagrams, photos, and other documentation used to build ITAR-controlled military gear. And ITAR regulations are clear: Only U.S. citizens can have access to any of the items on the USML list. Any deviation from this requirement requires preapproval in writing from the DDTC. Once your company is registered and you meet all the requirements of ITAR, you must be sure not to violate any ITAR compliance regulations. The expectation is that you have educated yourself & your employees and have been trained in meeting ITAR regulations. Penalties for violating ITAR regulations can result in criminal or civil penalties, being barred from future exports, and/or imprisonment.
Helpful Links:
To review ITAR, find out if you need to register, or to register, visit these government websites:
The U. S. Dept. of State, Directorate of Defense Trade Controls website: https://www.pmddtc.state.gov/ddtc_public
To See What Items Are Identified on The United States Munitions List (USML): https://www.ecfr.gov/cgi-bin/text-idx?node=pt22.1.121
The Rembar Company, LLC is ITAR-registered and compliant.
Rembar has been providing industry with molybdenum, tungsten, tantalum & niobium mill products & precision-machined parts since 1950. Learn more about us at www.rembar.com
