ITAR Compliance Software and USML Classification

“A very good investment to help avoid selling to unauthorized parties.”

DIRECTOR OF GLOBAL COMPLIANCE, INSTRUMENTATION, COLUMBUS

ITAR Compliance Software for all your trade compliance needs

Our ITAR compliance software can help you navigate the International Traffic in Arms Regulations (ITAR), which govern the permanent and temporary export of defense related goods, technologies, and services on the United States Munitions List (USML).

eCustoms’ Visual Compliance suite of Export Classification solutions offer comprehensive ITAR compliance with the depth and breadth to implement and manage all aspects of Wassenaar, EAR, OFAC, and ITAR compliance.

Software of particular relevance to companies in the ITAR space include:

Visual Compliance reduces workload, streamlines processes, and establishes easy-to-access audit trails. Extraordinarily easy to use, content-comprehensive software (with all revisions as they are published) and 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, implementation is quick and easy.

ITAR Compliance and Registration

The U.S. Department of State, Directorate of Defense Trade Controls (DDTC) functions as both interpreter and enforcer of ITAR compliance, 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.

There are a number of steps to becoming registered, gaining ITAR certification, and maintaining ITAR compliance:

Register with the State Department;
Establish a written Company ITAR Compliance Export Policy and Procedure Manual;
Determine the USML classification of your products, parts and technologies—including those on which your services are based;
Submit export license applications for all exports of controlled items well in advance of shipments or the start of defense-related projects, and ensure ITAR 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 an ITAR Technology Control Plan in place; and
Keep accurate records on all activities against State Department licenses and agreements to prove ITAR / USML compliance.

Failure to maintain ITAR compliance, 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, their executive, and board. If these are not damaging enough, there are the marketplace consequences of ruined professional and corporate reputations.

More detailed information about the laws and regulations that govern Defense Trade, including the Arms Export Control Act (AECA), the ITAR, and the United States Munitions List (USML) can be found on the Directorate of Defense Trade Controls website.

How do ITAR regulations 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 USML classification of controlled goods and to maintain ITAR compliance or face the consequences.

ITAR regulations require that you “export” or share these items only with U.S. persons and organizations—unless you receive authorization licenses from the Department of State or qualify for a special exemption. Exports include physical exports to other countries, and “deemed exports” of controlled knowledge or know-how to foreign persons, both in the U.S. and abroad especially if those items are subject to defense trade controls.

Failure to maintain ITAR compliance 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 United States Munitions List (USML) categorizes goods and technologies governed by ITAR regulations. The USML consists of 21 categories from firearms and electronics, to vessels of war and missile technology, nuclear weapons, and biological agents.

Some items in the USML are identified as Significant Military Equipment (SME), which are even more closely controlled and monitored through defense trade controls. For example, parts and attachments for an automatic firearm are not considered SME, but a fully automatic firearm is defined as SME and would be classified under defense trade controls.

Exporters of military defense items are generally familiar with the USML, ITAR regulations and ITAR compliance; however, companies that export civilian items may find 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.

International Traffic in Arms Regulations (ITAR)