Manufacturers that produce parts, components, or technology for military or defense applications are subject to ITAR – the International Traffic in Arms Regulations. Depending on the type of components or products your facility builds, you need to understand what ITAR entails, how it affects your business, and how to avoid potential consequences for non-compliance. Let’s look at why ITAR matters and how manufacturers can ensure compliance.
What is ITAR?
ITAR is a set of U.S. government regulations that controls the export and import of defense-related products, components, services, and technical data that is listed on the U.S. Munitions List (USML). The regulations are administered by the Department of State, Directorate of Defense Trade Controls (DDTC). When it comes to ITAR, exports also include sharing of technical data with non-U.S. citizens, regardless of if they are in the U.S. or not. If emails, files, or verbal conversations contain ITAR-controlled information, they are considered an export if you are speaking with or sending to a foreign national.
Why ITAR Compliance Matters for Manufacturers
There are many reasons why ITAR is important for manufacturers. ITAR exists to protect national security by preventing sensitive or classified defense technology from hostile countries. By controlling the data and products, manufacturers play a direct role in safekeeping military capabilities. Many aerospace and defense contracts require ITAR compliance, so manufacturers can lose business by not adhering to regulations. Suppliers who lack ITAR registration create serious risks including:
- Regulatory violations resulting in severe legal consequences, fines, and contract cancellations
- Security breaches exposing sensitive technical data to unauthorized foreign entities
- Program delays that trigger production stoppages, requalification requirements, or even loss of contract awards
How to Ensure ITAR Compliance
Here are some key steps to ensuring ITAR compliance:
- Understand if your products are controlled by ITAR by reviewing the U.S. Munitions list of products and components
- Register with the Directorate of Defense Trade Controls
- Ensure you have security protocols in place to only provide access to controlled information to authorized U.S. citizens and restrict access to files, networks, and visitors to your facility
- Training for your team to understand ITAR regulations, violations, and compliance
- Keep detailed documentation for exports, communications, and internal compliance procedures
ITAR compliance is vital for manufacturers to not only avoid penalties but to also protect sensitive technology, build partnerships with contractors and government agencies, and ensure compliance. SIS has ITAR-certified solutions for your business, with ITAR and ISO 9001:2015 certifications. By choosing SIS, you ensure your program is protected – every component we produce is built under strict ITAR and ISO protocols, safeguarding both your mission and your compliance standing. Our products meet military-grade standards with secure, precise manufacturing in U.S.-based facilities. Talk to our team about ITAR-compliant electronic assemblies, graphics, and more.