Knowing some instances of what constitutes an infraction to the International Traffic in Arms Regulations goes a long way towards understanding this important regulatory regime. With that in mind, today we review some examples of ITAR violations. Some are obvious, while others demonstrate how easily companies can incur potential ITAR violations if they don’t have the right help.
What Is ITAR?
ITAR is short for International Traffic in Arms Regulations. This is a set of United States government regulations that control the export and import of defense-related articles, services, and technical data.
Under ITAR, these controlled items are listed on the United States Munitions List (USML), and their export is heavily regulated to prevent them from falling into the hands of unauthorized individuals or entities, including foreign governments and terrorists.
The U.S. Department of State’s Directorate of Defense Trade Controls (DDTC) is responsible for administering ITAR.
As you probably know, failing to comply with ITAR can result in severe penalties, including fines and imprisonment. But what does an ITAR violation look like? In the next sections, we’ll take a look at some examples.
To learn more about ITAR, read our previous blogs, “ITAR: Who is a U.S. Person?,” “Is ITAR Data CUI?,” and “What Are ITAR Countries?”
Examples of ITAR Violations
Below are some concrete examples of ITAR violations with links to the relative legislation.
Keep in mind that this is not a comprehensive list of ITAR violations, and its purpose is only to illustrate the importance of a thorough understanding of ITAR and its intricacies.
Failure to Register
All manufacturers of firearms, ammunition, or firearms components are required to register with the DDTC even if they don’t plan to export their products. Additionally, if these companies intend to export their products, they must get approval from the DDTC first.
Failure To Maintain Records
Companies that offer products, software, technical data, or services that are on the USML, are mandated to maintain records in accordance with the ITAR recordkeeping requirements. Failing to maintain or produce these records constitutes an ITAR violation.
To learn more about ITAR recordkeeping requirements (which include keeping records for five years, among others), see ITAR part 122.5, Maintenance of Records by Registrants.
Misrepresenting or Omitting Facts
False statements when exporting defense articles or providing defense services also violate ITAR. For example, this type of violation happens when a company exports defense-related items such as missile parts claiming that the components are covered by an export license obtained for non-defense articles.
See ITAR 127.2, Misrepresentation and Omission of Facts.
Discussing Technical Data or Information With Foreign Nationals
According to ITAR, an export of technical data can happen verbally or by email when discussing this type of information with a foreign national either abroad or in the United States. This includes presentations given to groups in situations such as conventions or conferences.
To learn more about this topic, take a look at ITAR part 120.56, Release.
Allowing Foreign Persons To Inspect Defense Articles in a Way That Reveals Technical Data
This means that an ITAR violation can occur even if a defense item does not leave the United States. The mere act of allowing a foreign national to inspect a defense article in a way that allows them to glean technical data constitutes a violation of ITAR.
For more information, see ITAR party 120.56, Release
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