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What is an ITAR Registered Company?

Tue, Dec 21, 2021 at 9:00AM

What is an ITAR Registered Company?

The United States government requires all manufacturers and brokers of defense products, services, or related technical data to be International Traffic in Arms Regulations (ITAR) compliant. If you work as defense contractors that fall under those categories, then knowing more about ITAR registration is essential. It is also a prerequisite to apply to the Directorate of Defense Trade Controls (DDTC) for licenses, Technical Assistance Agreements, and other authorizations.

Failure to register can result in significant delays in obtaining important licenses, as well as make it impossible to rely on ITAR exemptions. If you manage ITAR materials, it is your responsibility to assure that everyone in your supply chain has the proper registrations and follows ITAR procedures. Learn more about ITAR registered companies by reading below.

ITAR Compliant vs. ITAR Registered Companies

Many defense contractors claim that they are ITAR compliant but haven’t taken the proper steps to register with the Department of State. Simply following ITAR guidelines does not accomplish the same thing that registering does. ITAR requires that any defense manufacturing company that engages in the business of furnishing defense services registers and keeps their registration current with the Department of State, which maintains the goal of safeguarding national security and furthering foreign policy objectives.

What Does ITAR Registration Mean for Defense Contractors?

It is not enough to simply register with the DDTC to sell your products and services in the ITAR industry. You must also be sure to prevent violations of ITAR compliance regulations. Predictably, ITAR registered companies are expected to uphold appropriate regulations because violations can result in criminal or civil penalties, being barred from future exports, or imprisonment.

Per violation, civil fines can reach as high as $500,000 and criminal fines can be up to $1 million, as well as include 10 years of imprisonment.

ITAR and Technology Companies

As an important United States export control law, the ITAR affects the manufacture, sale, and distribution of technology. The objective of this legislation is to inhibit foreign access to specific types of technology and their associated data. As a result, ITAR can pose challenges for global corporations, since sensitive data related to specific technologies may need to be transferred over the internet or stored locally outside of the United States. As such, the responsibility to take the necessary precautions and steps to certify ITAR compliance lies with each defense contractor.

Recommendations for ITAR Compliant Security

Data security will have different requirements for each company, depending on their industry and services. However, here are some general practices to follow in order to secure ITAR data.

  • Maintain an information security policy.
  • Regularly test security systems and processes.
  • Protect sensitive data with encryption.
  • Implement strong access control measures.
  • Track and monitor all access to network resources and sensitive data.

If you are looking for ITAR registered companies to suit your needs, then EEI Manufacturing can meet IPC Class III and AS9100C requirements on any technology we offer, as well as being ITAR registered. As such, we offer advanced printed circuit board assembly to suit the needs of top tier military and defense companies across the United States. Contact EEI Manufacturing today to learn more.

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