Does your Business Need an ITAR License?

ITAR stands for International Traffic in Arms Regulations. It consists of U.S. government regulations on import and export of defense-related products and services listed in a document called the United States Munitions List (USML). The USML changes periodically, so what was compliant five years ago may not be compliant now. ITAR states that any material or information pertinent to defense or military technologies can only be shared within the U.S. unless the State Department issues an exemption. If your business exports something that is, or could be on the USML, you should speak to an ITAR license consultant to determine your ITAR license needs. Penalties for Violation of ITAR If your business sells products or services not on the USML, you shouldn't begin exporting it without determining if you need an ITAR license. Many items with dual use (military and civilian) are subject to ITAR licensing requirements. If you're not sure if your product or service is on the USML, you can request a ruling from the Office of Defense Trade Controls. Violations can result in stiff civil and criminal penalties. Furthermore, violators can be refused export licenses afterwards. Keep in mind that a single ITAR licensing violation case may actually consist of multiple violations, and penalties apply to each violation. Competitive Advantage for ITAR Compliance ITAR compliance is a prerequisite for many companies engaged in international trade. Companies operating globally that are properly licensed have a competitive advantage, because customers are assured that seizures, penalties, and fines will not cause problems with trade operations. Having the proper export licenses and adhering to the many export requirements ultimately saves money and time and can prevent the problems that come with negative publicity. Having an ITAR audit may seem like a hassle, but it could ultimately be of great benefit to your international business. How do you Know if ITAR Applies to your Business? Sometimes it's not obvious whether your business's products and services come under ITAR jurisdiction. The USML changes periodically and some of the categories on it are quite broad. For example, many chemical agents are on the USML, and the USML has a category called "Miscellaneous," which could apply. Having an ITAR audit is more than just a feel-good formality. It could prevent you from violations that could harm your business and result in harsh legal penalties. What ITAR Experts can do for your Business Enlisting in the help of an ITAR license consultant lets you concentrate on running your business while an expert determines if ITAR applies to any of your products and services. Regulations are complex, and the USML undergoes changes, so it is not easy for a business owner or executive to stay on top of which products are subject to ITAR regulation. An independent consultant like those at Compliance Assurance, LLC, knows how to determine which, if any, ITAR regulations apply and how to obtain licensing if it is determined to be necessary. Because of far-reaching consequences of violations, ITAR compliance is one area where you should never cut corners.