The Arms Export Control Act (22 USC 2778 Section 38), allows the President of the United States to regulate import and exporting of federal services and articles.The President delegates export control oversight to the Secretary of State by Executive Order 13637.
Do you understand the ITAR restrictions?
Many companies find themselves facing criminal liability and penalties because their actions go against the overall goal of ITAR regulations. Corporations should take proactive measures to eliminate and minimize the liability that can expose the company.
At Watson & Associates, LLC, our attorneys and consultants work closely with corporate executives and management to make sure that their ITAR controlled products and services meet regulatory guidelines.
- Make sure your company is ITARS compliant and how to get itar certification
- Develop sound policies and controls to minimize the impact of government investigations
- Get help and legal guidance if you are doing business with the federal government
- Get legal advice and guidance with technical assistance agreements
What is ITAR? – Definition — ITAR Laws — What Does ITAR Controlled Mean?
International Traffic in Arms Regulations (ITAR meaning) regulates the important and export of DOD and defense type articles and services that are on the United States Munitions List (USML). ITAR laws implement each provision of the Arms Export Control Act (AECA). Having an ITARS professional that understands Title 22 (Foreign Relations) can be an important step when trying to understand the ITAR definitions.
The agency within the federal government that interprets and enforces ITAR compliance regulations is the Department of State Directorate of Defense Trade Controls (DDTC).
Given the new administration, the federal government has already increased its oversight to require contractors and supply chain members become and stay ITAR compliant or ITARS certified.
For your company, as a USML supplier to become ITAR compliant, it must register with DDTC and must also understand the various ITAR laws to stay compliant.
What does ITAR controlled mean? The ITAR statute and the Export Administration Regulations (EAR regulations) are the primary laws that impact technology manufacturing, sales, and distribution. See information on what does ITAR stand for.
Goal: Arms Export Control Act controls access to various types of technology and associated data. The goal of ITAR statutes is to prevent disclosure or transfer of sensitive material into the wrong hands. National security is the primary goal.
Commerce Control List: ITAR regulations contain the U.S. Munitions List which restricts certain services and articles. Export Administration Regulations (EAR) have a Commerce Control List of commercial items that are also regulated.
Severe ITAR Compliance Penalties
Export control and ITAR restriction laws have severe criminal and civil penalties. Businesses and manufacturers that fail to comply with ITAR regulations can be liable for fines up to $500,000 for each violation. Also, ITAR compliance penalties that are criminal in nature can be up to $1M and even include incarceration of 10 years for each violation.
What is ITAR Liability: Under Export Control Regulations, manufacturers in the export control business can be liable for $250,000.00 for each violation. EAR Criminal export control penalties can be as much as $1M for each violation and 20 years jail time. See also information about the North American Trade Agreement Act.
ITARS Compliance and Certification Help
Manufacturers and companies involved in the import-export business must submit a very concise ITARS certification package. After being ITAR certified, companies must still develop internal policies and controls to meet rigorous ITAR compliance thresholds.
Let us help you to avoid costly mistakes with ITAR restrictions.
For immediate help ITARS government investigations, civil and criminal penalties under ITAR rules and export control compliance, call our law office at 1-866-601-5518. FREE INITIAL CONSULTATION.