Mobile Full Width Tablet Small Desktop
  • Home
  • Services
  • Our Story
  • Blog
  • Contact
  • Careers
  • Get A Quote
  • Home
  • Services
  • Our Story
  • Blog
  • Contact
  • Careers
  • Get A Quote

What is ITAR? What It Is, What It Is NOT and Resources for ITAR Registration

What is ITAR? What It Is, What It Is NOT and Resources for ITAR Registration

May 29, 2019 10:14 am

ITAR Registration, Manufacturing, Precision Sheet MetalITAR Registration – By Aimee Sukol, JD. MA, MS Ed., Meta Fab Outreach Specialist

 

ITAR Registration – An Introduction:

Many businesses don’t begin operations with US Defense applications in mind; however, others find growth opportunities that place them in the defense & international supply chain. Whenever a business engages the international supply chain, it must take into consideration federal rules that regulate trade.  To avoid penalties, ITAR registration shows that companies fundamentally understand their product/service and end-use customer.  This simple premise can guide growing manufacturers (or service providers) who pursue opportunities involving defense, exports, imports or related projects. In short, it doesn’t matter if you are a metal fabrication or steel manufacturer that produces thousands of parts – if even only 10 of those items are intended for a military tank, weapon or defense software, you must be ITAR registered.

A customer may want those in its supply chain to complete ITAR registration as a general practice even if the government doesn’t require it. Therefore, smaller companies should conduct a cost/benefit analysis to determine the relative value of these contracts with the cost of training and ITAR registration. Long term relationships and opportunities present compelling reasons to satisfy a customer’s requirements, but the process is an investment.

In the following, this article will explore basic terminology, provide a summary of how these terms are used, and offer resources for local ITAR training and assistance.

Terminology: 

ITAR: International Traffic In Arms Regulation (administered by DDTC)
EAR: Export Administration Regulations (administered by BIS at DoC)
USML: United States Munitions List (ITAR list of “Defense Articles)
SME: Significant Military Equipment
MLA: Manufacturing License Agreement
BIS: Bureau of Industry and Security
DoC: Department of Commerce
CCL: Commerce Control List (EAR list of regulated items, equivalent to USML)
ECCN: Export Control Classification Number
DDTC: Directorate of Defense Trade Controls (ITAR registration & CJ determinations)
TAA: Technical Assistance Agreement
EMS: Export Management System
AECA: Arms Export Control Act
AECA Debarred List: Maintained by State Department
Denied Persons List, Unverified List, and Entity List: Maintained by the DoC
Specifically Designated Nationals List: Maintained by the Treasury Dept
MTCR: Military Technology Control Regime
Dual Use: Items capable for either civilian or military purposes
Defense Article: An item (products/services) regulated by ITAR
Consolidated Screening List: Maintained by the US government that includes lists of the regulated bodies below.  Note that the Consolidated List may not reflect the most updated information.
600 Series and 500 Series: items more strictly controlled than others on the CCL, but less strictly controlled than items on the USML.
CJ: Commodity Jurisdiction
DS-4076:  The form a company completes and submits to the DDTC to determine which jurisdiction covers its product/service (ITAR or EAR).
DS-2032: ITAR registration form.
DSP-5: Export licenses for ITAR controlled articles.
End-Use Controls: Prohibit exports to certain countries

Regulatory Bodies

State Department maintains an AECA Debarred List
Commerce Department maintains a Denied Persons List, Unverified List and Entity List
Treasury Department maintains a Specifically Designated Nationals List

The above prohibit exports to specific countries.  You can review the Consolidated Screening List, but it may not reflect the most updated information.  Companies are held responsible for obtaining updated information.

Explaining ITAR

ITAR (International Traffic In Arms Regulation) regulates defense products, technical data, and services. Under federal rule 22 CFR §122.1, anyone who manufactures, exports, or imports defense products or services is required to register with the Directorate of Defense Trade Controls (DDTC) in the State Department.  It doesn’t matter if you don’t export or import, nor does it matter if you only produce one small item that is applied to defense, if your company produces anything (or provides a service, such as freight forwarding) intended for a military purpose, you must register.

Registration is accomplished by completing a statement of registration (DS-2032). Once registration is complete, the organization will receive a registrant code. Registrations are valid for 12 months from the date of issuance. Registration states that an organization is acknowledging and attesting that it is aware of what ITAR Registration requires of them and they are in compliance with these requirements.

ITAR Registration is administered by the DDTC at the State Department and the most controlled items are SME’s (Significant Military Equipment). As noted below, services (TAA) can be regulated by ITAR so if your business provides technical assistance or teaches others to repair an SME, then you must be ITAR registered.  Arrangements that call for a foreign company to manufacture an SME also require an MLA (Manufacturing License Agreement).

What is a Defense Article?

There are 21 categories covered on the USML (US Munitions List), which include, but not limited to companies that produce components, parts, software, or services used in defense applications. Examples include:

  • IT, software, data security
  • Federal contractors involved in defense, intelligence, security or energy
  • Subcontractors and associates in the international supply chain that produce parts, components, accessories, and attachments

ITAR Registration vs. EAR (Export Administration Regulations)

ITAR is more stringent than EAR because ITAR covers articles that have DIRECT defense-related applications.  EAR refers to other items that may not be on the USML but CAN be applied to civilian or military use, also known as “dual-use”.  As noted, ITAR is administered by the DDTC and EAR is administered by the BIS at the DoC.  The CCL specifically covers (for example) chemical & biological weapons, missile technology or crime control products.  The level of control depends on where the product is exported, destination party, end-use and the Export Control Classification Number (ECCN). 600 and 500 Series items fall under EAR, and while more strictly controlled on the CCL, these items will not be found on the USML.

Steps for ITAR Registration:

  1. Get help! A company can conceivably review the USML or CCL to see if its product or service falls under ITAR or EAR regulation by submitting a DS-4076.   However, DDTC rules cautiously and may determine a company is regulated under ITAR when it could justifiably be covered by EAR.  Seeking the assistance of an export control expert can prevent a company from being classified by more stringent ITAR regulations.
  1. For exports, set up an EMS (Export Management System) relevant to the amount of foreign revenue. It is important to classify and track all ITAR and EAR controlled articles and the date.
  1. Renewed annually from the date of registration, the cost to register under ITAR begins at $2,250.

Note: There is no such thing as “ITAR certification”.  Companies SHOULD obtain ITAR training to better understand and articulate rules and responsibilities to employees through the assistance of an attorney or consultant, but ITAR certification doesn’t exist.  ITAR is a matter of registration.

Resources:

  1. BIS provides ITAR training around the country. The next Portland-based training is SEPTEMBER 10-11TH.  The cost to register for ITAR training is $530.  To learn more visit: https://www.bis.doc.gov/index.php/compliance-a-training/current-seminar-schedule.
  1. Pacific NW Defense Coalition provides 1:1 assistance and training on exporting, importing, trade and related regulations including ITAR: pndc.us.
  1. Federal Publication Seminars, listing available training: https://www.fedpubseminars.com/Training/International-Contracting/?AspxAutoDetectCookieSupport=1
  1. Oregon Manufacturing Extension Partnership provides trade and ITAR training: omep.org
  1. Also, see your local economic development agency (City or State) to see if you qualify for financial assistance that covers training.

Conclusion:

In Conclusion, ITAR Registration itself may not be as complicated as understanding whether a company must register. Following registration, a company must track products, customers, uses, destinations, and revenue derived from contracts covered by ITAR Registration and EAR rules. Consequently, a cost-benefit analysis of contracts that require ITAR Registration is necessary.

Consequently, companies that are ready to register under ITAR should seek assistance to understand the process, costs, and rules.  Additionally, local business associations (examples listed above) and economic development agencies can provide affordable training and assistance. Operating a business can be overwhelming enough, so rather than become your own import/export/defense expert, seek help from those who specialize in these areas.

Citations:

Bureau of Industry & Security:
https://www.bis.doc.gov/index.php/compliance-a-training/current-seminar-schedule

The Balance:
https://www.thebalancesmb.com/are-you-itar-compliant-1953582

GovernmentRelations.com:
https://gov-relations.com/itar/

Directorate of Defense:
https://www.pmddtc.state.gov/?id=ddtc_kb_article_page&sys_id=249f7c0adb6cf7007ede365e7c9619fd

Thomas McVey, Williams Mullen: “Is My Company Required to Register Under ITAR?”:
https://www.williamsmullen.com/blog/my-company-required-register-under-itar

 

META FAB IS READY FOR YOUR PROJECT

Meta Fab is a world class, full service, concept to finished goods metal manufacturing house with customers around the world. Get a quote today!

Get a Quote

Meta Fab Blog

  • General
  • Resources
  • Trends
  • Current Events

Post Archives

  • March 2023
  • February 2023
  • January 2023
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019

META FAB IS READY FOR YOUR PROJECT

Meta Fab is a world class, full service, concept to finished goods metal manufacturing house with customers around the world serving the healthcare, computer, automotive, aviation, consumer electronics, computer peripheral, communications industries, among many more.

Get a Quote

Meta Fab

922 W. MAIN STREET
HILLSBORO, OR, 97123

Phone

503-640-2527

Email

SALES   @   METAFAB.COM

Site Links

  • Home
  • Services
  • Our Story
  • Blog
  • Contact
  • Careers
  • Get A Quote
© 2023 Copyright Meta Fab, Inc.  |  Terms and Conditions  |  Careers  |  Site by SkEye Studios

Get the Meta Fab Newsletter

Join 1,000's of other subscribers and get monthly updates and resources from Meta Fab.