ITAR Compliance Manual and effective control

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https://www.pmddtc.state.gov/compliance?id=ddtc_kb_article_page&sys_id=384b968adb3cd30044f9ff621f961941

FLIR case

ITAR Compliance Program failure (s)

Significant compliance program and internal control deficiencies that directly contributed to the violations.

Deficient ITAR expertise and senior leader oversight during violation period.

Failure to effectively investigate and discover uncover and disclose violations.

Frequency and repetitive nature of same violations.

Failure to implement remedial compliance measures represented to the department.

Need to have an effective compliance program and effective administration including review.

Avoid penalties ($30,000,000) and controls by having effective control.

Factors to consider in a strong compliance system.

  1. Whether the company has performed a meaningful risk analysis.
  2. The existence of a formal written compliance program.
  3. Whether appropriate senior organizational officials are responsible for overseeing the export compliance program.
  4. Whether adequate training is provided to employees.
  5. Whether the company adequately screens its customers and transactions.
  6. Whether the company meets recordkeeping requirements.
  7. The existence and operation of an internal system for reporting export violations.
  8. The existence and result of internal/external reviews or audits.
  9. Whether remedial activity has been taken in response to export violations.

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

ITAR technology export violation

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ITAR compliance risks

Unauthorized exports included the transfer of technical data

Significant improvements to its export compliance program that reduce the likelihood of future violations, including conducting internal and independent audits, conducting staff training on the ITAR (including more extensive training for personnel directly involved in export compliance), creating a fully documented compliance program (with formal procedures, checklists, and a compliance manual), and significantly increasing staff resources devoted to day-to-day compliance (including retaining an outside consultant to provide expert advice where needed). These steps were taken after the fact and should have been in place to prevent.

Posting drawings on website or sending to foreign supplier for quote can constitute an export without a license and bring penalties. Bright Lights USA

https://www.pmddtc.state.gov/sys_attachment.do?sysparm_referring_url=tear_off&view=true&sys_id=715d7289db99db0044f9ff621f961939

training tutorial

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

ITAR training points

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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#