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Ardel Engineering: ITAR Registered

April 15, 2015

What is ITAR? An Introduction

If your company is involved in the development of products for export, or imports certain items, you may have heard the term ITAR mentioned. ITAR or the International Traffic in Arms Regulations is a series of controls designed to restrict and regulate the export of products with defense industry applications.

The Department of State oversees ITAR and determines which items and services according the United States Munitions List (USML). Its purpose is preventing unclassified defense-related items from falling into the hands of unfriendly governments or groups.

ITAR has several implications for companies involved in the manufacture, sale, or export/import of defense-related items. In other words, any company having access to any defense-related articles, service or technical information is subject to ITAR and requires licensing by the State Department.

You would expect certain products to fall under the oversight of ITAR such as weapons, munitions or military vehicles. Other items are not so apparent. These include software, technical data and certain services that may include maintenance, repair or testing. This also includes items such as protective shelters or personnel equipment.

Wide Range of Implications

There is a broad reach to ITAR. Parts not appearing to have any defense value like a fabricated metal component may also qualify under ITAR if that component winds up in a larger military product. Even items used for civilian purposes may qualify under ITAR so long as the items were initially designed, developed, adapted or modified for a military application.

Companies meeting the ITAR requirements must register with the State Department. Once gaining approval, a company must avoid participation in activities including the transfer of technical data/software, services or exports of items on the USML list to foreign countries. Strict record keeping and reporting are mandated. Failure to comply creates many problems.

If your company falls under ITAR regulations and still exports non-defense related items, proceed cautiously as penalties for compliance violations are stiff. Companies may lose government contracts and be prevented from doing business with the government forever.

Additionally, fines are stiff, ranging up to $1 million per violation. For extreme violations, criminal sanctions including prison sentences up to 10 years for company officers, directors and employees are possible. Proper training and adherence to the regulations provide the only route to successful operation within ITAR.

Ardel Engineering is ITAR Registered

You can be assured that Ardel Engineering adheres to all ITAR requirements provided by the State Department. If you next project requires an ITAR registered company, please contact us today to see how Ardel Engineering can assist you.

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