ITAR Certification – Is it Real?

Is ITAR certification real?

What exactly does it mean to be ITAR certified? Does the US government offer courses that have a test at the end and if you pass you will receive a certificate? Is it the same as a licensed customs broker?

The answer to both questions is “no.”

Technically, there is no such thing as an ITAR certification—at least not as far as the U.S. government is concerned. However, all U.S. regulations, including export laws, must be followed, including compliance with the International Traffic in Arms Regulations (ITAR).

Learn about ITAR compliance and certification

So why do some companies claim to be ITAR certified? There is even a picture on their website claiming to be ITAR certified? I’m not sure I can answer these questions, but the questions that should be asked are:

1. Are you registered with the Directorate of Defense Trade Controls (DDTC)?
2. Do you have an Export Management and Compliance Plan (EMCP) or an ITAR Compliance Plan (ICP) that outlines the key elements of an effective program for compliance?

As a reminder, any entity engaged in the manufacture, export, temporary import or brokerage of ITAR-controlled defense articles (including technical data) or the provision of defense services is required to register with the DDTC on an annual basis, including maintaining the registration going forward (if there is an ongoing ITAR work).

It’s important to remember that registration is only the first step in ITAR compliance. Registration with ITAR does not ensure that a company complies with ITAR requirements, nor does it mean that the company complies with ITAR requirements.

Establish a comprehensive ITAR compliance program

DDTC expects ITAR-registered companies to be aware of these regulations and to comply with these requirements themselves. The reason behind this is because the US government wants everyone to help protect our nation’s sensitive technology.

This is carried out further during the registration application process where they will ask (Question 10 on the DS-2032) whether the company has an ITAR compliance program in place.

Planning means understanding the requirements of ITAR, developing internal written procedures/policies/work instructions to comply with them, and implementing them before starting any ITAR work.

Having a plan is more than just a set of procedures sitting on someone’s desk or on a shared drive, it helps monitor and control exits and other regulated activities and instructs employees on what steps to take to achieve that requirement.

It should also be tailored to your business, regularly reviewed and updated as needed, and most importantly, fully supported by senior management. After all, compliance starts at the top!

Develop a comprehensive ITAR compliance plan

According to DDTC guidance, the first step in developing an export compliance program is to understand your business, obligations and risk areas. Find out whether your company is an exporter, manufacturer or broker; or a combination of the three.

This is an essential element in determining which key issues should be addressed in the company’s plan.

A solid program typically includes management policies (remember – compliance starts at the top and sets the tone for all employees that senior management is committed to compliance), as well as the many steps involved in addressing export compliance. departments (e.g. purchasing, sales, shipping, IT, customer service).

Does this mean that if you are not in one of these sectors, compliance with ITAR regulations does not apply?

No, because it also affects travelers, M&A, finance, HR, visitors/meetings, and those reviewing contracts.

Common pitfalls of ITAR compliance

Registering for ITAR is only the first step in starting your ITAR compliance journey.

Failure to have a plan in place for how employees and the company will comply with these export regulations can result in companies inadvertently violating export control laws. If you have ITAR registration but don’t have a plan in place, some common pitfalls can arise:

• Sending ITAR technical data from one U.S. company to another without appropriate IT controls (as described in the ITAR);
• Allowing non-U.S. persons (including foreign nationals working in the United States for U.S. companies) without appropriate export licenses to enter factory floors where ITAR items are produced;
• Failure to identify items falling under ITAR jurisdiction and inadvertently exported from the United States

The Importance of Compliance Programs

The bottom line is – getting ITAR registration is more than just a tick-box. It requires all companies to develop plans to comply with regulations in all affected sectors.

Having an export compliance program in which employees are trained and have easy access to guidance is key to a comprehensive compliance program that can avoid inadvertent violations that can lead to penalties and denial of export privileges.

Schedule a free consultation with one of our experts today to ensure your organization meets all regulatory requirements.