Table of Contents
This Manual is an example and is intended only as a guide. It does not purport to address all relevant trade compliance issues -
ITAR Regulations 120-130 - that may apply to a company’s exporting activities.
Use with the ITAR CD-ROM by Customs Compliance Consulting Inc. is recommended.
Corporate Statement
I ITAR Manager’s Responsibilities
Page 2
Page 3
Page 4 II. Management Responsibilities
III. Personnel:
IV. Manager of Production:
V. Sales/Marketing
VI. Computer Controls (IT) Information Technology
VII. EMPLOYEES
What Is an Export?
What are defense items?
(COMPANY) is registered by reason of ITAR
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ITAR definition of EXPORT
TWO AGENCY JURISDICTION
CLASSIFYING ITEMS:
Technical data
Defense Services
Public Domain
DEEMED EXPORT
Access to Facilities
VIII. AUDIT
IX. Compliance Violations Corrective Action
XIII ACME IT SECURITY POINTS
XV. ATTACHMENTS
XIV Service Provider Vetting – Forwarder
A. OAS IMPORT AUTHORIZATION REQUIREMENTS LIST
B. SAMPLE LETTER FOR ONE-TIME EXCEPTION REQUEST
C. CHECKLIST
D. Audit Steps
E. Training
X. Reporting Suspicious Inquiries and Violations
XI Organizational Structure
XII. The Manual should have these points as underlying elements
(COMPANY NAME) TECHNOLOGY CONTROL PLAN
SYNOPSIS OF EXPORT CONTROLS
Guideline for the Permanent Export, Temporary Export & Import of Firearms
APPENDIX
Employee Knowledge Questions
Best Practices of Compliant Companies
Five Components of Effective Internal Controls
Audit MODULE
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Provide procedures that enable ITAR compliance
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Assign compliance responsibilities
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Provide information that will identify ITAR transactions
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Provide mechanisms that establish recordkeeping controls, training and auditing procedures necessary for effective compliance
The (COMPANY) Manual and the ITAR CD* provide an overview of important areas that assist in establishing risk assessment and identification of operations involving ITAR.
Products and technology that require licensing are identified. License requirement decisions can be made and application to appropriate transactions will be applied.
(COMPANY) Organization
Exports involve goods and technology that are covered under Commerce, DOD and FAC.
Commodity jurisdiction requires that decisions be made as to which authority our export falls under. ITAR compliance CD-
ROM* pages 79 and 1266 provide information on commodity jurisdiction.
ITAR responsibilities are beyond just commercial export transactions and require additional resources to insure that (COMPANY) remains in compliance.
The primary responsible officer is ___________________ “identify the empowered official”**
The ITAR Manager is ____________________________ “identify the manager”
* Customs Compliance Consulting Inc.’s ITAR CD-ROM
** Empowered Official - An empowered official is authorized by a business enterprise to sign and process license applications on behalf of the company. An empowered official understands the provisions of ITAR. This individual has the authority within his/her company to inquire into any aspect of a proposed export and to verify the legality and accuracy of the information submitted for a transaction. An empowered official also has the authority to refuse to sign any license application without retribution from his/her company. This is important because an empowered official is held liable for any violations of ITAR. Also responsible for
INTERNAL AUDIT
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… can be transmitted via e-mail or during a telephone conversation. Regardless of the method used for the transfer, the transaction is considered an export for export control purposes. An item is also considered an export even if it is leaving the
United States temporarily, if it is leaving the United State but is not for sale, (e.g. a gift) or if it is going to a wholly-owned U.S. subsidiary in a foreign country. Even a foreign-origin item exported from the United States, transmitted or transshipped through the United States, or being returned from the United States to its foreign country of origin is considered an export. Finally, release of technology or source code subject to the EAR to a foreign national in the United States is "deemed" to be an export to the home country of the foreign national under the EAR. (* Deemed - reference ITAR Module Compliance CD-ROM page 700.) (See next page illustration.)
(Source, BIS web site http://www.bis.doc.gov/licensing/exportingbasics.htm
)
ITAR - 120.1 General authorities and eligibility.
Section 38 of the Arms Export Control Act (22 U.S.C. 2778) authorizes the President to control the export and import of defense articles and defense services. The statutory authority of the President to promulgate regulations with respect to exports of defense articles and defense services was delegated to the Secretary of State by Executive Order 11958, as amended (42 FR 4311). This subchapter implements that authority. By virtue of delegations of authority by the Secretary of State, these regulations are primarily administered by the Deputy Assistant Secretary for Defense Trade Controls and Managing Director of Defense Trade
Controls, Bureau of Political-Military Affairs.
What are defense items?
Defense article (see ITAR CD-ROM, page 77 Regs 120.6 and 120.9 page 81 also see 120.10 page 82)
(See next page 120.6 illustration.)
120.2 Designation of defense articles and defense services.
The Arms Export Control Act (22 U.S.C. 2778(a) and 2794(7)) provides that the President shall designate the articles and services deemed to be defense articles and defense services for purposes of this subchapter. The items so designated constitute the United
States Munitions List and are specified in part 121 of this subchapter. Such designations are made by the Department of State with the concurrence of the Department of Defense. For a determination on whether a particular item is included on the U.S. Munitions
List see 120.4(a).
(COMPANY) is registered by reason of ITAR
PART 122 REGISTRATION OF MANUFACTURERS AND EXPORTERS.
122.1 Registration requirements. a) Any person who engages in the United States in the business of either manufacturing or exporting defense articles or furnishing defense services is required to register with the Directorate of Defense Trade Controls. For the purpose of this subchapter, engaging in the business of manufacturing or exporting defense articles or furnishing defense services requires only one occasion of manufacturing or exporting a defense article or furnishing a defense service. Manufacturers who do not engage in exporting must nevertheless register.
ITAR definition of EXPORT
120.17 Export.
(a) Export means:
(1) Sending or taking a defense article out of the United States in any manner, except by mere travel outside of the United States by a person whose personal knowledge includes technical data; or
(2) Transferring registration, control or ownership to a foreign person of any aircraft, vessel, or satellite covered by the U.S.
Munitions List, whether in the United States or abroad; or
(3) Disclosing (including oral or visual disclosure) or transferring in the United States any defense article to an embassy, any agency or subdivision of a foreign government (e.g., diplomatic missions); or
(4) Disclosing (including oral or visual disclosure) or transferring technical data to a foreign person, whether in the United States or abroad; or
(5) Performing a defense service on behalf of, or for the benefit of, a foreign person, whether in the United States or abroad.
(6) A launch vehicle or payload shall not, by reason of the launching of such vehicle, be considered an export for purposes of this subchapter. However, for certain limited purposes (see 126.1) of this subchapter), the controls of this subchapter may apply to any sale, transfer or proposal to sell or transfer defense articles or defense services.
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Training
Security Awareness Training ITAR CD-ROM page 1340
DTC Overview ITAR CD-ROM page 1310
Case Study ITAR CD-ROM page 648
Deemed Exports ITAR CD-ROM page 700
Q & A ITAR CD-ROM page 1362
CRIB ITAR CD-ROM page 1296
Familiarity with ITAR Regs ITAR CD-ROM
Other as selected – (See illustration example ITAR CD-ROM of page 1806, next page)
Any article (and associated technical data) that has been specially designed, modified or configured for a military purpose is subject to ITAR jurisdiction.
An item that has been modified for use in an ITAR controlled article may be subject to ITAR.
History of product is important. Records may be efficient, recollection may be lost, time can be a problem as to whether an item is under ITAR control. Modifications to subcontractor may have placed article under ITAR. Placing information on website may open the door to a “deemed export” situation.
Example: - Wire harness. If the wire harness is generic and is not designed or modified specifically for use in a satellite or some other military application, then the wire harness is probably not subject to ITAR.
Check the jurisdiction examples – ITAR CD-ROM page 1266 as well as the ITAR Regs
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