QUESTIONS?
As a former defense company employee, I remember when our company would schedule a guided tour for many of our client visitors or foreign national contract employees.
Most employees would not mind being the babysitter tour guide, as we were referred to, but occasionally there were those who felt it wasn’t their job to escort others and that the current security procedures in place were sufficient enough to keep visitors from going into unauthorized areas.
In a previous article, I explored and discussed what the International Traffic In Arms Regulations (ITAR) are, why they exist, and what items (by category) they control.
In summary, the Arms Export Control Act (AECA), 22 U.S. 2778, authorizes the President to designate items that could be considered defense articles and services. These items constitute the United States Munitions List (USML).
A variety of U.S. laws and regulations exist to monitor and controls exports from the United States. These laws and regulations are designed to comply with trade agreements, embargoes, sanctions and other political measures the U.S. has with other countries. Most importantly, the laws and regulations are designed to protect U.S. national security so the most sensitive information and technology don't get into the wrong hands.
This is where the International Traffic in Arms Regulations (ITAR) come in. ITAR is part of a web of laws and 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.
In October 2009, the State Department’s Directorate of Defense Trade Controls (DDTC) began accepting electronic export licensing agreements via the D-Trade system. Exporters are still allowed to submit agreements via paper form, but it is estimated that electronic submission will be mandated at some point in 2010.
My consulting firm is contracted to work with many diverse companies, both commercial and defense related, to perform compliance risk assessments and audits in the EAR, ITAR and related regulatory areas.
I applaud those companies for being proactive in their compliance programs. I also believe every company should conduct a risk assessment at least once a year or more frequently based on its commodities, activities and exposures.
Today, many defense companies have already expanded their client base worldwide by selling their military goods or services abroad. While this may be good business for the company, it may not be good for the national security of the United States.
All businesses dealing in exports or imports of defense articles and services of any nature must first always ensure that they are fully compliant within the rules and regulations of the United States Department of State, Directorate of Defense Trade Controls, the International Traffic in Arms, the United States Munitions List, the United States Code, and the Code of Federal Regulations.
In previous articles, we explored what the International Traffic In Arms Regulations (ITAR) are and the items controlled under the United States Munitions List (USML).
To help you understand the registration requirements of ITAR, it’s worth stating again the reasons why the ITAR exists.