ITAR/EAR

More than ever before, companies today need to comply with all the U.S. export regulations. Compliance with the International Traffic in Arms Regulations (ITAR) is both necessary and worthwhile to include an ITAR Compliance Program and/or an ITAR Compliance Manual. Enforcement actions by regulatory agencies are increasing. Companies and their decision-makers face exceptionally high legal fines and even criminal penalties for ITAR violations and can suffer considerable business and public relations consequences as well.

The burden and costs of attaining and maintaining an effective ITAR compliance program may appear overwhelming and intimidating – an unwanted distraction from running and growing your business, and a strain on company resources that are already strained to capacity. Most businesses lack the necessary expertise to identify all their ITAR compliance gaps and vulnerabilities and very few have a complete understanding of the options and solutions available. Establishing a Corporate ITAR Compliance Program is not easy, however QSG Consultants can minimize the pain. We have assisted many companies across the U.S. to achieve and maintain an ITAR compliance program including implementing an ITAR Compliance Manual and ITAR Training.

What is ITAR?
The International Traffic in Arms Regulations (ITAR) detail the regulations governing the export of defense related materials and technologies, including hardware, software, and services.  Administered by the (DDTC) Directorate of Defense Trade Controls, (Department of State) the goal of ITAR is to safeguard U.S. national security and further U.S. foreign policy objectives and policies.  It provides definitions of important terms, with information and procedures for registration, licenses, agreements, general policies, violations, penalties, and administrative procedures.

Under ITAR §122.1(a) a company is required to register if it manufactures defense articles or provides defense services even if the product is never exported.

What is the EAR?
The EAR (Export Administration Regulations) are the rules by which the (BIS) Bureau of Industry and Security (U.S. Department of Commerce).  It regulates and controls exports of goods from the United States. All goods and services that are not covered under the State Department’s US Munitions (USML) list fall within the preview of the EAR, under the Commerce Control List (CCL).  Now that Export Control Reform (ECR) is taking effect, attention to the EAR is even more important.

What does it mean to businesses?
If your company deals with defense equipment, supplies, services or technologies, the ITAR and Export Compliance regulations specify that you share these items only with U.S. persons and organization unless you receive authorization from the Department of State or qualify for a special exemption.  If your company offers dual-use or specially classified items under the control of the Commerce Control List (CCL) and the Export Administration Regulations, similar restrictions on access are applicable.  Companies and individuals may face potentially heavy fines or penalties for providing foreign persons with access to ITAR or EAR-protected and restricted items.

What is compliance?

  • Registration with DDTC (if required)
  • Active and documented compliance policy and procedures
  • Denied parties watch list screening
  • Internal audits and continuous improvement discipline
  • Third-Party Audits – Annual

If you are part of a large corporation with an ITAR or EAR compliance related employees or a small company with a part-time compliance person, QSG has the compliance and training programs to fit your exact needs.

QSG is a corporation established in 1993 and has many companies with audits/assessments, training, licensing support and procedures.  We are experts in compliance with the International Traffic in Arms Regulations (ITAR) and the Export Administration Regulations (EAR)!

Would you like to know more about how we can help?  Contact us for more information on how we can help you meet your objectives.

 

Always Keep Improving!