ITAR & Export Basics
Time: 7:30a.m.-4:30p.m. MST
What are ITAR and EAR?
ITAR (International Traffic in Arms Regulations) and the EAR (Export Administration Regulations) are export control regulations run by different departments of the US Government. Both of them are designed to help ensure that defense-related technology does not get into the wrong hands. An export license is a general term for both ITAR and EAR-controlled items in which the US Government has granted permission to transport or sell potentially dangerous items to foreign countries or parties.
Obtaining EAR and ITAR Compliance
To be ITAR or EAR compliant, a manufacturer or exporter whose articles or services appear on the USML or CCL lists must register with the U.S. State Department’s Directorate of Defense Trade Controls (DDTC). ITAR and EAR compliance can be problematic for a global corporation because the data related to a specific type of technology may need to be transferred over the Internet or stored locally outside the United States to make business processes flow smoothly. It is the responsibility of the manufacturer or exporter to take the necessary steps to certify that they are in compliance with the regulations.
Export control laws provide for substantial penalties, both civil and criminal. Failure to comply with ITAR can result in civil fines as high as $500,000 per violation, while criminal penalties include fines of up to $1,000,000 and 10 years imprisonment per violation. Under EAR, maximum civil fines can reach $250,000 per violation. Criminal penalties can be as high as $1,000,000 and 20 years imprisonment per violation.
The Department of State is responsible for the export and temporary import of defense articles and services governed by 22 U.S.C. 2778 of the Arms Export Control Act and Executive Order 13637. The International Traffic in Arms Regulations (“ITAR,” 22 CFR 120-130) implements the AECA.
The more stringent of the two sets of regulations was written for articles with direct defense-related applications. Articles specifically designed or otherwise intended for military end-use are enumerated on the United States Munitions List (USML) or the Missile Technology Control Regime (MTCR) Annex and therefore controlled by International Traffic in Arms Regulations (ITAR) which is administered by the Directorate of Defense Trade Controls (DDTC) at the State Department. Items, services, and information are all covered by the ITAR regulations. The most controlled items are Significant Military Equipment (SME) which have “capacity for substantial military utility or capability” such as tanks, high explosives, naval vessels, attack helicopters, etc which are noted on the USML with an asterisk. Some examples include; an export license (DSP-5), exchanging technical emails or teaching how to repair an ITAR-covered item which requires a Technical Assistance Agreement (TAA), and allowing a foreign company to manufacture an item requires a Manufacturing License Agreement (MLA).
Most other items not specifically listed in the USML, but with the capability to be used for either civilian or military purposes are considered “dual-use” and controlled under the Export Administration Regulations (EAR) which is administered by the Bureau of Industry and Security (BIS) at the Department of Commerce (DoC). The Commerce Control List (CCL) is the equivalent list at the DoC to the State Department’s USML. The CCL specifically controls for Chemical & Biological Weapons, Nuclear Nonproliferation, National Security, Missile Technology, Regional Stability, Firearm Convention, Crime Control, and Anti-Terrorism. The level of control depends on the country being exported to, destination party, end-use, and Export Control Classification Number (ECCN). Specifically, there are “600 Series” and “500 Series” items that are more strictly controlled than the rest of the CCL, but less strictly controlled than the articles on the USML.
Who should attend?
This introductory course is for business executives, international contracting specialists, contract managers and administrators, program and project managers, marketing professionals, engineers, and other technical personnel, newly appointed export compliance officers, logistics personnel, and legal and financial advisors.
Why go to this class?
- ITAR isn’t easy- you will need a guide to help you through.
- Online courses require no travel.
- This 1-day training is only on our calendar six times a year.
- Everything your company manufactures or offers services on is either subject to the ITAR or EAR Regulations.
- Failure to comply with ITAR can result in civil fines are as high as $500,000 per violation, while criminal penalities include fines of up to $1,000,000 and 10 years imprisonment per violation.