ITAR Compliance for Manufacturers: The Ultimate Guide

Registration by the Department of State

To achieve ITAR compliance, manufacturers of defense articles must register with the DDTC. This includes submitting a completed registration form and paying a fee to the DDTC. This registration form requires comprehensive information on a manufacturer’s organizational structure, ITAR-related activities, and ownership. After obtaining approval, the manufacturer is given a registration code, which must be included in all documents related to exports. The registration code of a manufacturer starts with an “M,” followed by 4/5 digits. This code is proprietary to the manufacturer. However, registration doesn’t authorize the registrant to export ITAR-controlled technical data or items; they must still achieve compliance with other requirements.

Proper classification

The other critical requirement for ITAR compliance is a proper classification of ITAR-controlled technical data, services, and articles. Manufacturers should accurately determine if their items and technical data are under ITAR jurisdiction. This helps determine if they need an export license and should meet other ITAR requirements. Classification involves analyzing the technical data or specifications of an article and its intended use to determine if it falls under the CCL or the USML. Technical data and articles on the USML are subject to ITAR, while those on the CCL are subject to EAR . A proper classification assists a manufacturer in determining whether an export license is necessary. It also aids in achieving ITAR compliance with other requirements such as recordkeeping, documentation, and training. Additionally, manufacturers of ITAR-controlled items should maintain updated records of their classification determinations to show ITAR compliance.

Obtaining licenses

Manufacturers of USML items must get approvals and licenses from DDTC before engaging in activities under ITAR jurisdiction. The license application process entails submitting comprehensive information about the item or technical data. This includes its destination, classification, and intended end-use. Each license application is reviewed by the DDTC on a case-by-case basis, meaning the approval process takes time. The manufacturer should also comply with any restrictions or conditions specified under the license, including reporting requirements and end-use restrictions.

Training and documentation

Manufacturers should provide training to all their employees engaged in activities that fall under ITAR jurisdiction. They should also maintain a comprehensive documentation of their training programs. Documentation is critical for ITAR compliance. Thus, manufacturers should maintain up-to-date and accurate records of their ITAR-related activities. These include but are not limited to licensing information and classification determinations. Such documents can help the manufacturer demonstrate ITAR compliance and respond to any audits or inquiries by regulatory agencies.

Record keeping

To be ITAR compliant, manufacturers must maintain up-to-date and accurate records of all their activities that fall under ITAR purview. Such records include, sales, exports, and records of any other transfers of ITAR-controlled technical data and items.  These records must be kept in a way that they are not only accessible but also understandable to authorized personnel. They should be maintained for 5 years at a minimum. Additionally, manufacturers should secure and protect the records from unauthorized disclosure or access to avoid any potential financial and legal consequences.

Adherence to end-use limitations

Manufacturers ITAR-controlled items must conduct due diligence on their partners, customers, and other end users to comply with end-use limitations. This ensures the entities to a transaction are legitimate and authorized. They should also keep records of the due diligence efforts. Further, the manufacturers should implement necessary measures to monitor and prevent the diversion of or unauthorized use of ITAR-controlled technical data and items.