ITAR/EAR Compliance

What are the Risks?

Failure to comply with ITAR / EAR can be harmful to national security and U.S. foreign policy. It may result in other costs including severe civil & criminal penalties (potential incarceration), damage to reputation and loss of export licenses.

Consequences of Non-Compliance

The release of information to a foreign national is considered a “deemed export” under EAR, and although ITAR doesn’t use that specific term, EAR’s definition of “deemed export” is aligned with how ITAR assesses the transfer of information to foreign nationals. Information release under ITAR is defined as, “… the oral, visual or documentary disclosure of technical data by US persons to foreign persons.”

It’s easy to see that information release violations of ITAR & EAR, and failure to secure data, are serious matters. They can also be disastrous for national security and your organizational reputation. The government views these breaches & transfers of information as potentially causing severe damage to the United States and may impose civil and criminal penalties if a breach occurs. Violations can result in hundreds of millions in fines. Your organization may also have export licenses revoked or rejected, limiting or eliminating your ability to engage in critical activities! 

How We Help

Controlling the location and flow of information is mandatory to assure both ITAR and EAR compliance. 

By partitioning data and limiting access, through network management, encryption, password, magnetic and even biometric tools, Future Networking helps assure compliance in these areas.

What is ITAR / EAR Compliance?

The Directorate of Defense Trade Controls (DDTC) is the government agency responsible for outlining the International Trade in Arms Regulations (ITAR). ITAR governs the export of military, weapons, and space related items and services as specified on the US Munitions List (USML). To ensure compliance with ITAR, the DDTC strongly encourages registered exporters, manufacturers, brokers, and others engaged in defense trade, to maintain programs that assist in the monitoring and control of exports and other regulated activities. 

The Bureau of Industry & Security (BIS) is the government agency responsible for outlining the Export Administration Regulations (EAR). EAR covers the export of non-ITAR commercial goods & services including so-called “dual-use” items, which are commercial items that may also have military applications or other sensitive uses under the Commerce Control List (CCL).

Put simply, ITAR governs exports made specifically for defense or aerospace purposes, whereas EAR governs exports that may be used for defense purposes or may be considered sensitive for other reasons.

The International Traffic in Arms Regulations (ITAR)

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 (AECA) and Executive Order 13637. The International Traffic in Arms Regulations (“ITAR,” 22 CFR 120-130) implements the AECA. The ITAR is available from the Government Printing Office (GPO) as an annual hardcopy or e-document publication as part of the Code of Federal Regulations (CFR) and as an updated e-document.

What is an export?

    • Sending or taking a defense article out of the U.S. in any manner.
    • Disclosure, including oral or visual disclosure, or transfer of technical data to a foreign person whether in the U.S. or abroad,
    • Performance of a defense service on behalf of, or for the benefit of a foreign person whether in the U.S. or abroad,
    • Disclosure, including oral or visual disclosure, or transfer in the U.S. of any defense article to an embassy, agency, or subdivision of a foreign government,
  • Transfer of registration, control or ownership to a foreign person of any aircraft, vessel, or satellite covered by the U.S. Munitions List, whether in the U.S. or abroad. 

Who is a foreign person?

    • Any natural person who is not a lawful permanent resident of the U.S. or who is not a protected individual,
    • Any foreign corporation, business association, partnership, trust, society, or other entity that is not incorporated or organized to conduct business in the U.S.,
  • International organizations, foreign governments, and any agency or subdivision of a foreign government. 

What is a defense service?

  • Furnishing of assistance, including training, to foreign persons, in the U.S. or abroad, in the design, development, engineering, manufacture, production, assembly, testing, repair, maintenance, modification, operation or use of defense articles,
  • Furnishing of technical data to foreign persons in the U.S. or abroad,
  • Military training and advice.

Additional Information

  1. International Trade in Arms Regulations (ITAR)
  2. US Munitions List (USML)
  3. Export Administration Regulations (EAR)
  4. https://www.pmddtc.state.gov/ddtc_public?id=ddtc_kb_article_page&sys_id=24d528fddbfc930044f9ff621f961987
  5. Arms Export Control Act (AECA)
  6. https://www.nsa.gov/business/programs/export-control-policy/