ITAR Compliance

We understand that compliance is not a one-time event but a constantly evolving effort. That’s the concept at the core of our ITAR compliance-as-a-service approach to helping your organization obtain, manage, and maintain compliance.
As part of our International Traffic in Arms Regulations (ITAR) and Export Administration Regulations (EAR) compliance services, we offer guidance on ITAR/EAR and U.S. export control laws for your current operation and IT/Cybersecurity departments. All controls, policies, and procedures are validated by leveraging our network of legal support resources.

If your product is on the U.S. Munitions List (USML), the State Department has jurisdiction over your export activities. In that case, your company needs to be registered with the State Department, and you must apply for an export license through the State Department.

We can help you navigate this complex process so you can focus on other strategic aspects of your company.

We break the ITAR/EAR compliance process into three key interdependent phases.

This is what the process looks like when you choose us as your ITAR/EAR consulting partner:

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Discovery Gap Analysis

First, we understand your business operations and how ITAR data flows through your company, including departments, personnel, locations, computer systems, other technology, and possible subcontractors or suppliers. Simultaneously we evaluate your ITAR contract language requirements and make sure we fully understand your ITAR operation in detail, fulfilling a detailed dialogue questionnaire and diagrams of ITAR data flow.

Provisional Assessment

In this phase, our team reviews the findings gleaned during the Discovery Gap Analysis. We review diagrams, reports, and business ITAR data flow. We identify possible deficiencies and generate an ITAR/EAR action item list that requires immediate remediation.
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Remediation

  1. Prepare an ITAR Compliance Program for the Company
  2. Consultation with the Understanding of the client’s business, development of written policies, procedures, and a compliance handbook tailored to the specific requirements of the Company for the International Traffic In Arms Regulations (“ITAR”), Export Administration Regulation (“EAR”) and OFAC sanctions laws
  3. Educate all ITAR engaged personnel of ITAR and U.S. export control laws

In addition to updating your systems, security practices, and procedures, we provide education and help fully implement ITAR/EAR requirements.
Contact Our ITAR/EAR Experts
We break the ITAR/EAR compliance process into three key interdependent phases.

This is what the process looks like when you choose us as your ITAR/EAR consulting partner:

null

Discovery Gap Analysis

First, we understand your business operations and how ITAR data flows through your company, including departments, personnel, locations, computer systems, other technology, and possible subcontractors or suppliers. Simultaneously we evaluate your ITAR contract language requirements and make sure we fully understand your ITAR operation in detail, fulfilling a detailed dialogue questionnaire and diagrams of ITAR data flow.
null

Provisional Assessment

In this phase, our team reviews the findings gleaned during the Discovery Gap Analysis. We review diagrams, reports, and business ITAR data flow. We identify possible deficiencies and generate an ITAR/EAR action item list that requires immediate remediation.
null

Remediation

  1. Prepare an ITAR Compliance Program for the Company
  2. Consultation with the Understanding of the client’s business, development of written policies, procedures, and a compliance handbook tailored to the specific requirements of the Company for the International Traffic In Arms Regulations (“ITAR”), Export Administration Regulation (“EAR”) and OFAC sanctions laws
  3. Educate all ITAR engaged personnel of ITAR and U.S. export control laws

In addition to updating your systems, security practices, and procedures, we provide education and help fully implement ITAR/EAR requirements.
Contact Our ITAR/EAR Experts

ITAR Compliance Checklist

  • Consultation with your organization to understand your company’s business, as well as the development of written ITAR data flow and corresponding policies and procedures.
  • Identifying and classifying your goods using the US Munitions List within the scope requirements of ITAR.
  • Creating a compliance handbook tailored to the specific requirements of the company as it relates to ITAR, EAR, and OFAC sanctions laws.
  • Outlining steps for implementing the compliance program.
  • Risk assessment (identification of the greatest compliance risks present in your company).
  • Remediation: compliance steps to protect from the risks identified in point 5.

  • Employee ITAR/EAR compliance training.
  • Technology remediation and implementation overhaul (were needed).
  • Microsoft GCC High implementation with compliance configuration requirements.
  • Registering with the Directorate of Defense Trade Control and applying for an export license.
  • Fulfilling reporting requirements.
  • Creating and maintaining an export compliance program within your organization
  • Note that we offer fixed-fee costs for the Compliance Programs as well as interest-free payment plans.

ITAR FAQ

What happens if you violate ITAR?

According to the Arms Export Controls Act (AECA) and the International Traffic in Arms Regulation (ITAR), willful violations of the defense controls can be fined up to $1,000,000 per violation, or ten years of imprisonment, or both.

What are the most common ITAR violations?

The three most common ITAR violations fall into three categories:

  • Not having an internal compliance program or having your plan on paper only.
  • Not doing your due diligence about where your exports are going.
  • Not keeping complete and accurate records.

Who enforces ITAR?

The International Traffic in Arms Regulations (“ITAR,” 22 CFR 120-130) implements the AECA. The Directorate of Defense Trade Controls (DDTC) in the Bureau of Political-Military Affairs at the U.S. Department of State implements the ITAR including the United States Munitions List (USML).

What transactions are controlled by ITAR?

ITAR controls the manufacture, sale, and distribution of defense and space-related articles and services as defined in the United States Munitions List (USML).

How much does it cost to become ITAR compliant?

Tier 1: Annual flat fee of $3,000.00
First-time registrants (Manufacturers, Exporters and stand-alone Brokers).Registration renewals for stand-alone Brokers.

Registrants who did not receive an approved license or other authorization during the 12-month period, ending 90 days before the current registration expires.

Registrants who are wholly exempt from income tax pursuant to 26 U.S.C. 501(c)(3), such as non-profit organizations. These registrants must attach proof of such status (for example, an IRS certification form) for the fee to be reduced to a Tier 1 registration fee. The IRS certification must apply to all entities, subsidiaries, and affiliates listed in the registration submission.

Tier 1 Discount: Effective January 9, 2025, DDTC is instituting a one-year initiative for qualifying Tier 1 registrants who may petition DDTC for a $500 discount, for a total registration fee of $2,500.

 

Tier 2: Set fee of $4,000.00
Tier 2 applies to registrants who received 5 or fewer favorable determinations during the 12-month period ending 90 days before the current registration expires

 

Tier 3: A Calculated Fee
Tier 3 applies to registrants who received more than 5 favorable determinations during the 12-month period ending 90 days before the current registration expires.
The fee calculation formula is:
$4,000 + ($1,100 x the total number of approved licenses or other authorizations over 5)
If the fee calculated using the formula above is greater than 3 percent of the total value of all approvals, the fee will be revised to either 3 percent of the total value of all applications or $4,000, whichever is greater.

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Brea Networks, LLC (HQ)

451 W. Lambert Rd Suite 214, Brea, CA 92821
United States of America

Phone: (714) 592-0063

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