Many organizations believe ITAR only applies when shipping products overseas.
That assumption is dangerous.
Under ITAR, you can violate export laws without shipping anything at all. Simply allowing a foreign national to access controlled technical data inside the United States can be considered an export.
This is called a deemed export.
If your company handles defense articles or technical data, understanding deemed exports is critical.
What Is a Deemed Export Under ITAR?
A deemed export occurs when ITAR controlled technical data is released to a foreign person, even if that person is physically located in the United States.
ITAR regulates access, not just shipment.
Controlled data can include:
- Engineering drawings
- Blueprints
- CAD files
- Technical manuals
- Software source code
- System specifications
- Defense related design data
If a non U.S. person gains access to this information without authorization, it is treated as an export to their country of nationality.
No package needs to cross a border.
Access alone can trigger a violation.
Who Is Considered a Foreign National Under ITAR?
Under ITAR, a foreign person includes:
- Non U.S. citizens
- Lawful permanent residents who are not U.S. persons
- Dual nationals
- Foreign contractors
- International visitors
- Temporary visa holders
This applies even if they are physically working inside your U.S. facility.
ITAR focuses on citizenship status, not location.
Many companies assume that being inside the United States removes export risk. It does not.
How Deemed Exports Commonly Happen
Deemed export violations are often unintentional.
They typically occur through:
- Shared network drives containing ITAR files
- Unrestricted access to engineering systems
- Emailing controlled documents internally
- Allowing foreign interns or contractors into restricted areas
- Cloud storage without proper access controls
- Screen sharing during technical meetings
One unsecured folder can expose your organization to regulatory risk.
Why Deemed Export Violations Are Serious
ITAR penalties are severe.
Violations can result in:
- Civil fines reaching hundreds of thousands of dollars per violation
- Criminal charges
- Loss of export privileges
- Debarment from defense contracts
- Reputational damage within the Defense Industrial Base
Even accidental violations can trigger enforcement action.
The government evaluates whether your organization had adequate compliance controls in place. Intent does not eliminate liability.
How to Prevent Deemed Export Violations
Preventing deemed exports requires operational discipline.
Organizations should implement:
Access Controls
Restrict ITAR technical data to verified U.S. persons.
Personnel Screening
Verify citizenship status before granting system access.
ITAR Compliant IT Systems
Segment controlled data and implement strict role based access.
Visitor Controls
Monitor and restrict access to engineering spaces and production areas.
Training Programs
Educate employees on export control rules and deemed export risks.
Documented Compliance Policies
Maintain written procedures and enforce them consistently.
ITAR compliance is not just paperwork. It must be embedded into daily operations.
ITAR vs. Physical Exports: The Common Misunderstanding
Many organizations invest heavily in physical shipping controls but ignore internal data exposure.
The greater risk today is digital.
Technical data is shared through:
- Cloud platforms
- Collaboration tools
- Remote work systems
If access is not controlled properly, the violation happens instantly.
No customs form. No shipping label. Just access.
Why ITAR Governance and Technical Controls Must Work Together
True ITAR compliance maturity moves beyond registration.
It requires:
- Governance oversight
- Defined policies
- Secure IT infrastructure
- Ongoing monitoring
- Continuous employee awareness
Organizations that treat ITAR as a one time registration step remain exposed.
Those that build operational controls reduce enforcement risk and protect contract eligibility.
Conclusion: Access Is Export
If your organization handles defense related technical data, you must control who can see it.
Under ITAR, access equals export.
Deemed exports are one of the most overlooked compliance risks in the defense sector. The companies that understand this early implement proper access controls, restrict foreign national exposure, and protect their standing in the Defense Industrial Base.
The companies that ignore it often learn the hard way.
How Brea Networks Helps Defense Contractors Meet ITAR Compliance Requirements
For companies supporting the U.S. Department of War, compliance with the International Traffic in Arms Regulations (ITAR) is not optional it is mission critical. ITAR governs how defense related technical data is stored, accessed, transmitted, and protected, especially when working within the Defense Industrial Base (DIB).
At Brea Networks, we specialize in helping defense contractors and subcontractors build and operate secure, compliant IT environments that align with ITAR requirements and support long term regulatory readiness.
A 100% U.S. Person Workforce
One of the foundational requirements of ITAR is controlling access to defense related technical data. Brea Networks is staffed by 100% U.S. Persons, ensuring your controlled unclassified information and exportcontrolled data remain protected under ITAR access rules.
ITAR Compliant Managed IT and Security Services
Brea Networks operates as an ITAR compliant MSP and MSSP, providing managed services designed specifically for defense contractors that need secure infrastructure, monitoring, and compliance driven operations.
Secure Operations Built Entirely on GCC High
We operate 100% within Microsoft GCC High, the cloud environment purpose for DoW dep contractors handling sensitive data. This ensures our systems and workflows align with federal expectations and support export controlled data protection.
FedRAMP Moderate and High Compatible Solutions
All Brea Networks solutions are designed to be ITAR compatible and based on platforms that meet FedRAMPfe Moderate or High security baselines. This provides defense contractors with a secure foundation for regulated operations.
Complete ITAR Documentation and Operational Support
Compliance is not just technical — it is procedural. Brea Networks helps contractors develop full ITAR compliance documentation, including:
- ITAR Operations Manuals (typically 175–200 pages)
- Internal policies and governance frameworks
- SOPs (Standard Operating Procedures)
- Forms, workflows, and compliance processes
- Practical systems for managing export controlled environments
We help ensure your organization can demonstrate compliance, not just claim it.
In House ITAR Specialists and Legal Support
Brea Networks maintains dedicated ITAR compliance specialists internally, supported by experienced ITAR legal counsel. This gives our clients both the technical and regulatory expertise needed to confidently navigate complex compliance requirements.
International ITAR and Export Permit Experience
Many defense suppliers operate globally. Brea Networks has real world experience supporting international ITAR compliance, including:
- ITAR export permit setup
- Secure ITAR environments for international organizations
- Support for foreign owned companies working within U.S. defense regulations
Fast, Executable Compliance Packages
Every contractor’s timeline is different. Brea Networks offers ITAR compliance execution packages that can be delivered as quickly as:
- 1 week under FastTrack requirements
- Up to 90 days for full operational buildout
We scale based on your program needs, contract deadlines, and audit readiness goals.
Provided Experience with the DDTC
We have direct experience supporting compliance activities involving the U.S. Department of State’s Directorate of Defense Trade Controls (DDTC), ensuring clients are prepared for real regulatory expectations.
Partner With Brea Networks for ITAR Ready Operations
Whether you are a prime contractor, subcontractor, or international defense supplier entering the U.S. market, Brea Networks provides the expertise, secure infrastructure, and compliance documentation needed to operate confidently under ITAR.
If your organization needs to establish or strengthen its ITAR compliance posture, our team is ready to help.
Contact Brea Networks today to build a secure, compliant ITAR environment built for the Defense Industrial Base.
