What is ITAR Compliance?
ITAR, short for the International Traffic in Arms Regulations, are a set of rules and regulations enforced by the United States which must be followed when dealing with defence-related products across the supply chain.
Why are there ITAR regulations?
The purpose of ITAR regulations is to ensure that products aren’t sold to foreign entities which could potentially threaten the national security of the US or allied countries – which includes Australia. Essentially, it’s a way to protect dangerous weapons or sensitive data from falling into the wrong hands.
Who has to be ITAR compliant?
The short answer is everyone who is involved across the supply chain process of defense articles, services or related technical data. That includes all manufacturers, exporters, and brokers,
So, even if you’re an Australian-based supply chain specialist like us at McHugh & Eastwood, it’s incredibly important to stay compliant.
These products are listed in the United States Munitions List (USML), which acts as a guide to every type of defense-related product. The best way to find out if your company needs to be compliant is to see if your product is listed in the USML.
How do I become ITAR compliant?
If the products your company is selling are listed on the USML, you must register with the Directorate of Defence Trade Controls (DDTC). But registering with the directorate of Defence Trade Controls does not mean you automatically have complied with the regulations, so it is important to also implement ITAR-compliant practices within your own processes.
Why is it important?
If you are not registered with the DDTC or compliant to ITAR procedures, you could face huge civil fines of up to $500,000 USD (per violation) or even imprisonment.