ITAR is an extremely serious program, established by the US Congress (22 CFR, Chapter I, Subchapter M, Parts 120-130) to protect our defense technology. As such it falls under the broad National Security/Patriot Act umbrella and has the attention of a multitude of government agencies, including the Departments of State, Defense, Commerce, Homeland Security and Justice. Penalties are extremely severe and include imprisonment of those who knowingly ignore ITAR’s provisions.
Click here for the current version of the ITAR Regulations from the Directorate of Defense Trade Controls (DDTC) website. James Bartlett III of the Legal Department of Northrop Grumman publishes The Annotated ITAR, a compendium of regulations, legal precedents and a wealth of collateral information. This is available free of charge by emailing a request to him at James.Bartlett@ngc.com.
ITAR Compliance... it's more than just registration!
The ITAR Operational Assessment©
Your most critical step in developing an effective ITAR Program.
Penalties for ITAR/EAR Non-Compliance
The following table summarizes the penalties that can be assessed for violating various United States export control regimes. Export transactions can involve a number of additional laws and government policies. Accordingly, this information should not be viewed as an exhaustive listing of potentially applicable laws and corresponding penalty schemes. The penalty matrix information contained here is as of October 21, 2011, and is subject to change.
Penalties addressed here are in addition to other negative consequences of non-conformance, including bad press, loss of business, distraction from business and legal defense fees.
Penalty information and matrix courtesy and with permission of Goulston & Storrs PC.
Enforcement Action Risk Factors:
- An anonymous tip (e.g. disgruntled employee, competitor) has been received. Your chance of an enforcement inspection/investigation is 100%.
- You’re a supplier to a sanctioned company. A list of all subcontractors is provided to DDTC for use in follow-up enforcement actions.
- You have a DD2345 (Militarily Critical Technical Data Agreement) on file. This form is a prerequisite to being able to receive sensitive engineering data on defense components.
- Your Central Contractor Registration (CCR) NAICS code(s) reflect your firm as producing/providing defense related parts or services.
- Your website shows defense related photos and implies or states you provide defense parts and/or services.
- You’re a defense contractor with foreign workers.
- FBI - greatly expanded role.
- National Security and Anti-Terrorism Unit.
- Immigrations, Customs & Enforcement (ICE).
- US Defense Criminal Investigative Service.
- Defense Security Service.