export compliance itar 3 of 3

Living With ITARLiving With ITAR

March 31, 2009

International Corporate Compliance LLC

Should you register?Should you register?

If you sell this or other items to a military or defense related organization, you need to register!


ExemptionsExemptions

Officers and employees of the United States Government acting in an official capacity.

Persons whose pertinent business activity is confined to the production of unclassified technical data only.


ExemptionsExemptions

Persons all of whose manufacturing and export activities are licensed under the Atomic Energy Act.

Persons who engage only in the fabrication of articles for experimental or scientific purpose, including research and development.


Domestic ConsiderationsDomestic Considerations

Export Control Technical Data Package (TDP) Technical data can only be released to

contractors who are authorized/certified by Defense Logistics Service Center.

This applies to all domestic (TDP) rated contracts whether you are prime or secondary.


Directorate of Defense Trade ControlsDirectorate of Defense Trade Controls Interagency group under State Department and

Defense Department Legislative authority found in 22CFR. US Munitions List found at:

http://www.pmddtc.state.gov/regulations_laws/documents/official_itar/ITAR_Part_121.pdf

http://www.pmddtc.state.gov/


ITAR – International Traffic in Armaments RegulationsITAR – International Traffic in Armaments Regulations All manufacturers, exporters, and brokers of defense

articles, defense services, or related technical data, as defined on the United States Munitions List (Part 121 of the ITAR) , are required to register with DDTC.

ITAR divided into 21 specific categories, the 21st being totally all inclusive and vagarious.

Registration does not confer any export rights or privileges, but is a precondition for the issuance of any license or other approval for export.


ITAR Registration RequirementsITAR Registration Requirements

Transmittal Letter The DS-2032 form, and attachments Documentation Fees Hint: Must submit one original and two copies of

all documentation.


Transmittal Letter / DS-2032Transmittal Letter / DS-2032 Download the Transmittal Letter making changes as

appropriate. Download at: http://www.pmddtc.state.gov/registration/documents/registration_transmittal_letter.doc

Download the DS-2032 and all attachments using only Internet Explorer at: http://www.pmddtc.state.gov/registration/documents/ds2032-complete.pdf

Note: All attachments are included.International Corporate Compliance LLC

DS-2032 AttachmentsDS-2032 Attachments Block 7 - Additional Directors, Officers, Partners, and O

wners Block 8 - Additional USML Categories Block 9 - Additional U.S. Subsidiaries Block 10 - Additional Foreign Subsidiaries Block 11 - Additional Parent Companies


Documentation Documentation

State Incorporation Certificate State Certificate of Good Standing State, County or City Business License State Articles of Incorporation, sole

proprietorship, partnerships, limited liability partnership/company, and corporations


FeesFees

The first tier will be a set fee of $2,250 per year for registrants registering with the Department for the first time.

The previous license application fee is now built into the registration fees.


RecordkeepingRecordkeeping

A person who is required to register must maintain records concerning the manufacture, acquisition and disposition (to include copies of all documentation on exports using exemptions and applications and licenses and their related documentation), of defense articles; of technical data; the provision of defense services; brokering activities; and information on political contributions, fees, or commissions furnished or obtained, as required by part 130 of this subchapter.


ComplianceCompliance

Any registered firm is strongly cautioned to implement a compliance program.

“Compliance Program Guidelines” contains suggested compliance elements and is available for download at: http://www.pmddtc.state.gov/compliance/documents/compliance_programs.pdf


Commodity JurisdictionCommodity Jurisdiction

What’s a CJ?A Commodity Jurisdiction is a binding decision as to which federal agency will have licensing authority concerning your product.Dual use commodities, i.e. civilian and military - Example – fasteners often bear milspec #’sA CJ can be extremely time consuming and contentious to obtain / registration not necessary.Hint: 9 Copies of all documentation required!


Deemed ExportsDeemed Exports Deemed exports are the most common violation

inasmuch as they often occur:1. At trade shows.2. At your facility.3. Through sales presentations or via technical

presentations.4. Please see my website for a download about

Deemed Exports.


Other Regulatory OrganizationsOther Regulatory Organizations

Bureau of Industrial Security, USDOC – http://www.bis.doc.gov

Office of Foreign Assets Control, Dept. of Treasury - http://www.treas.gov/

Nuclear Regulatory Commission (NRC) - http://www.nrc.gov/


Other Regulatory Organizationsto a lesser degree

Other Regulatory Organizationsto a lesser degree

Drug Enforcement Administration - http://www.usdoj.gov/dea/

Department of the Interior - http://www.doi.gov/

Food and Drug Administration - http://www.fda.gov/


Thank You!


www.ic2x.com
