ITAR technology export violation

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

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#

Import Compliance Manuals, Export Compliance Manuals

Import Compliance Manuals, Export Compliance Manuals
9 Factors for Import or Export Compliance Part 2

2. The existence of a formal written compliance program.
http://www.ussc.gov/guidelines-manual/2011/2011-8b21

From sentencing guidelines insight on effective import export manual standard
8B2.1. Effective Compliance and Ethics Program
(a) To have an effective compliance and ethics program, for purposes of subsection (f) of §8C2.5 (Culpability Score) and subsection (c)(1) of §8D1.4 (Recommended Conditions of Probation – Organizations), an organization shall—
(1) exercise due diligence to prevent and detect criminal conduct; and
(2) otherwise promote an organizational culture that encourages ethical conduct and a commitment to compliance with the law.
Such compliance and ethics program shall be reasonably designed, implemented, and enforced so that the program is generally effective in preventing and detecting criminal conduct. The failure to prevent or detect the instant offense does not necessarily mean that the program is not generally effective in preventing and detecting criminal conduct.
(b) Due diligence and the promotion of an organizational culture that encourages ethical conduct and a commitment to compliance with the law within the meaning of subsection (a) minimally require the following:
(1) The organization shall establish standards and procedures to prevent and detect criminal conduct.
(2) (A) The organization’s governing authority shall be knowledgeable about the content and operation of the compliance and ethics program and shall exercise reasonable oversight with respect to the implementation and effectiveness of the compliance and ethics program.
4/17/15