How to Become ITAR Compliant

The cost of registering with ITAR, under the Directorate of Defense Trade Controls (DDTC), is determined by a three-tier structure.

Firstly, if the DDTC has not reviewed, adjudicated, or responded to any application, the cost is $2,250 per year.

Secondly, if the DDTC has reviewed, adjudicated, or responded to between 1 and 10 applications, the cost increases to $2,750 per year.

Lastly, if the DDTC has reviewed, adjudicated, or responded to more than 10 applications, the cost remains $2,750 per year but additional fees are added based on the number of applications.

When comparing the International Traffic in Arms Regulations (ITAR) and the Export Administration Regulations (EAR), several distinct differences can be highlighted:

1) Administrative Authority: The administration of ITAR falls under the jurisdiction of the U.S. Department of State, whereas the EAR is administered by the U.S. Department of Commerce. This difference in administrative oversight indicates that each regulation operates within different government departments, which can result in varying priorities and approaches.

2) Scope of Coverage: ITAR specifically pertains to military items and technologies that are considered crucial for national security. It encompasses defense articles, services, and technical data, as defined on the United States Munitions List (USML). On the other hand, EAR covers primarily commercial items, including dual-use goods and technologies that have both civilian and potential military applications. Its scope extends to dual-use items and technical data listed on the Commerce Control List (CCL).

3) Objectives: The primary purpose of ITAR is to ensure U.S. national security by controlling the export, import, and transfer of defense-related items and technologies. The regulation aims to safeguard military superiority and prevent the unauthorized spread of sensitive information or materials that could potentially pose a threat to national interests. However, EAR aims to strike a balance between national security concerns and the promotion of commercial and research objectives. It recognizes that while protecting U.S. security is essential, facilitating legitimate trade and innovation is also a critical consideration.

These differences demonstrate that ITAR and EAR are distinct regulatory frameworks with separate administrative authorities, areas of coverage, and objectives. Understanding these disparities is crucial for individuals or organizations engaged in international trade, especially when dealing with items or technologies that could have military implications.

The most common ITAR violations encompass various actions or oversights that go against the guidelines set by the International Traffic in Arms Regulations. These violations can be summarized as follows:

1. Deliberate non-compliance with ITAR regulations: This refers to knowingly and willfully disregarding or failing to abide by the stipulations outlined in ITAR.
2. Misrepresentations or omissions regarding ITAR-controlled items or data: This violation occurs when individuals or organizations provide false information or deliberately omit relevant details when dealing with items or data that fall under the jurisdiction of ITAR.
3. Accidental mistakes or oversight leading to the compromise of ITAR data: Sometimes, ITAR data can be put at risk due to unintentional errors or oversights. This violation includes instances where the necessary precautions were not taken to ensure the protection and security of ITAR-controlled information.

It is important to note that these are just some of the most common violations found within the realm of ITAR. Compliance with ITAR guidelines is crucial to maintaining the security and integrity of defense-related technologies and information.

The 2020 ITAR (International Traffic in Arms Regulations) amendment, implemented on March 9th, 2020 by the Department of State, introduced changes to the regulations regarding the storage and sharing of ITAR data. The aim of this amendment is to provide a more precise description of articles that possess significant military or intelligence advantages, or perform inherently military functions, thereby justifying their export and temporary import control under the USML (U.S. Munitions List).

With the amendment, certain criteria have been established to determine whether data stored in the cloud will be considered an export, thus requiring compliance with ITAR regulations. Firstly, the data must be unclassified. Secondly, it must be safeguarded using end-to-end encryption to ensure its protection against unauthorized access. Finally, the data must be cryptographically secured, ensuring that it stays safe from being accessed by foreign entities.

These changes have significant implications for organizations that deal with ITAR-regulated data. It provides a framework where certain ITAR data can be stored and shared in the cloud while remaining compliant with export control requirements. This allows organizations to take advantage of cloud storage solutions for ITAR data, as long as suitable security measures are implemented to prevent unauthorized access and ensure the safety of the data.

ITAR compliance has a significant impact on technology companies in various ways. It is an essential U.S. export control law that governs the manufacturing, sale, and distribution of technology. Its primary objective is to regulate access to specific types of technology and their associated data. The main concern is to prevent the disclosure or transfer of sensitive information to foreign nationals.

For technology companies, ITAR compliance can be particularly challenging, especially for global corporations. This is because they often need to transfer or store data related to specific technologies over the internet or outside of the United States to ensure smooth business processes. However, doing so requires careful adherence to ITAR regulations.

To comply with ITAR, technology companies have the responsibility to take necessary precautions and steps. They must ensure that all their manufacturing, sales, and distribution activities align with the requirements set forth by ITAR. This includes implementing appropriate safeguards to protect sensitive information from unauthorized access or disclosure.

Furthermore, technology companies must certify their compliance with ITAR regulations. This involves demonstrating that they have established robust processes and procedures for managing technology-related data. They may also need to obtain appropriate licenses or authorizations when dealing with restricted technologies or when exporting certain products.

Non-compliance with ITAR can have severe consequences for technology companies. Violations may lead to significant legal and financial penalties, as well as damage to a company’s reputation. Therefore, it is crucial for technology companies to understand and actively manage ITAR compliance requirements to ensure they protect sensitive information and avoid any legal ramifications.