What is ITAR compliance? The International Traffic in Arms Regulations (ITAR) are, as the title indicates, rules governing trade in munitions. While that summary is accurate, it leaves many open questions. What are \u201cmunitions\u201d? How is trade in munitions defined? Who is engaged in such trade, what authorizations are United States exporters and foreign re-sellers required to obtain and how do they get them? What procedures are required for ITAR compliance?<\/p>\n
Not all munitions are subject to the ITAR, and certain items that are would not be considered munitions in the popular sense of the term. For ITAR purposes, qualifying items are identified on the United States Munitions List (USML). The USML is divided into 21 categories, each of which covers broadly similar articles (for example, military aircraft and designated sub-assemblies). Each USML category also describes technical data \u2013 that is, controlled information relating to munitions \u2013 in its purview.<\/p>\n
One feature of the ITAR that caused much confusion among exporters was the \u201ccatch-all\u201d coverage of parts and components specially designed or modified for another USML article. This description caught many items that may have been adapted for use as munition parts, but were not weapons in themselves and indeed may have been nearly indistinguishable from parts for civilian applications.<\/p>\n
Due to implementation of Export Control Reform changes, the ITAR now has a less restrictive definition of when parts and components are \u201cspecially designed\u201d for USML articles. In tandem with this change, the majority of parts and components have been moved from the USML to Commerce Department jurisdiction. Even after these reforms were put into place for most USML categories; however, a substantial number of parts remains subject to ITAR compliance.<\/p>\n
The ITAR impose strict requirements on transactions involving USML hardware and technical data. With limited exceptions, State Department authorization is required for exports and temporary imports of USML items. Defense trade treaties with Australia and the United Kingdom resulted in special rules for those countries. Another area of ITAR coverage is provision of defense services, which can include military training and other assistance. U.S. exporters of USML items also must register annually with the State Department, and non-exporting producers are required to as well. The ITAR also govern trade in munitions that are not of U.S. origin, when engaged in by United States persons and their foreign affiliates.<\/p>\n