ITAR Explained: Why It Matters for U.S. Companies
The International Traffic in Arms Regulations (ITAR) is a set of U.S. government regulations designed to control the export and import of defense-related articles and
The International Traffic in Arms Regulations (ITAR) is a set of U.S. government regulations designed to control the export and import of defense-related articles and
The International Traffic in Arms Regulations (ITAR) governs the export, import, and brokering of defense articles, services, and data. Compliance with ITAR is crucial to ensure national security and avoid penalties such as fines, debarment, and potential criminal charges. This article provides comprehensive guidance for compliance managers to help you navigate the complexities of ITAR and prevent violations.
In 2007, ITT was fined $100 million for illegally exporting night vision technology. ITT thought that they could work around the imposed restrictions. However, the government didn’t agree with how they interpreted the rules. In April 2018, FLIR Systems was fined $30 million by the State Department for transferring USML data to employees holding dual nationalities. FLIR was also instructed to implement a better compliance strategy and hire a third party to oversee the agreement with Department as part of the penalty. Because of illegally exporting technical drawings of the missile, tanks, and aircraft components to countries like China, the State Department fined Honeywell International $13 million.
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