ITAR training points

Three areas of export control laws. The International Traffic in Arms Regulations or ITAR, which is administered by the State Department. These apply to military products. The Export Administration Regulations or EAR, administered by the Commerce Department. These apply to commercial products that have some use in the military or intelligence area and the U.S. Sanctions Laws, administered by the Treasury Department’s Office of Foreign Assets Control.

The first cornerstone concept under ITAR – ITAR contains a list of products called the U. S. Munitions List (USML) If your product is on this list, it is subject to these controls. This is a key concept. If your product is on the list, everything else flows from this. If you look down the list, you will see that the majority of headings- a lot of the items in the beginning of the list are truly defense items: firearms, guns, explosives, naval vessels. But, if you look farther down the list, you will see that the categories start to overlap with commercial items – training, electronics, chemicals, satellites. So it is sometimes difficult to determine if your product is on the list or not

Another cornerstone concept is that these controls apply not just to physical products, but also to software and technical data, as well. So, if an item is on the list such as a navigational device – the software used to run that device is also on the list, and the technical data related to the device is on the list. Technical data refers to drawings, algorithms, manuals, any information on the design, manufacture, or use of the item. So, if the product is on the list, then the electronic files are on the list, the specification sheets, the technical manuals – are all on the Munitions List and subject to ITAR.

https://www.sbir.gov/tutorials/itar/tutorial-1#

Customs Broker Compliance – customs broker audit

ACS INPUT

CBP 7501 Example – Provide employee with copy of CBP 7501

Use as record/reference to input correct information into ACS

 Encourage Clients to develop Compliance Manuals

COMPLIANCE MANUAL SUPPORT

Factors to consider in a strong compliance system.

  1. Whether the company has performed a meaningful risk analysis. perform this
  2. The existence of a formal written compliance program.  have one
  3. Whether appropriate senior organizational officials are responsible for overseeing the export (applies to Import also) compliance program.  assess oversight by officer, document meetings
  4. Whether adequate training is provided to employees.  provide training and document
  5. Whether the company adequately screens its customers and transactions.
  6. Whether the company meets recordkeeping requirements.  check against requirement of Customs Regulations 111 and 163
  7. The existence and operation of an internal system for reporting import/export violations.    where have occurred document corrective actions
  8. The existence and result of internal/external reviews or audits.   document your record of audits
  9. Whether remedial activity has been taken in response to import/export violations. employee wrongful actions – document corrective actions taken

Focus on Training (Internal and External) 

                 Audit       (Internal and External)

Goal of Broker is to offer filing services “Customs Business” and also services promoting compliance in classification, valuation, admissibility and security (C-TPAT). *

*note CBP Audit has observed that Brokers should address this area (compliance and advice)

contact Clement Key, Gerald Maready, Retired FNISs, LCHB 704 664 1932

http://exportimportcompliance.com/index.php

Customs Broker Audit insight

From 31 broker penalty cases

Clustered results

incidents of accounting and financial deficiencies (more than one type) 39+

not properly maintaining employee list     17+

powers of attorney 14+

responsible supervision and control 8+

failed recordkeeping general 6+

lots of other issues not listed at this time = Above indicates where brokers should focus attention and of course follow Customs Regulations especially Part 111

 

need manual, focus on training and internal reviews – exercise responsible supervision