At the core of the International Traffic in Arms Regulations, or ITAR, is a list of products called the U.S. Munitions List (“USML”). The USML contains a wide array of products as well as software, technical data and services. If a company’s product, software, technical data or services are identified on the list, the company is subject to the ITAR requirements and may become subject to one or more of the following:
Registration - the company must register with the U.S. State Department, even if it does not export any of its products;
Transfer of Technical Data And Software to Foreign Nationals – the company is prohibited from transferring software or technical data on the USML to foreign nationals, either in the US or abroad, without an export license;
Defense Services – the company is prohibited from performing services for foreign parties related to items on the USML, either in the US or abroad, without obtaining a State Department authorization called a Technical Assistance Agreement (“TAA”);
Export License – the company is prohibited from exporting products listed on the USML without obtaining an export license;
Temporary Imports – The company is prohibited from importing defense items listed on the U.S. Munitions List in temporary import transactions without obtaining a temporary import license;
Recordkeeping Requirement – the company is required to maintain records in accordance with the ITAR recordkeeping requirements;
Brokering – the company is prohibited from brokering the sale of defense items without complying with the DDTC brokering requirements;
Third Party Transfers - the company is prohibited from having goods and IP transferred from one country to another without DDTC approvals.
Selling products and services to government customers, especially in the defense industry, has become a global business. In order to remain competitive in this arena, a company must understand the rules that govern this business sector – it must incorporate the ITAR procedures into its business model. Avonis is registered by the State Department and can help.