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Exploring ITAR
By Mark L. Casey | February 25, 2010
U.S. companies that develop products and intellectual property (IP) with military and defense applications are not permitted to sell or export that technology outside of the U.S. It is obviously in the national interest to not provide our enemies or potential enemies with weapons or technology that can be used against us or our allies.
There are two sets of laws that control the export of such technology:
- International Traffic in Arms Regulations (ITAR), and
- Export Administrative Regulations (EAR)
Going well beyond controlling the active export of such technology, these laws also seek to ensure that firms protect their IP from espionage and theft.
The US Department of State contains the Directorate of Defense Trade Controls (DDTC website). From their website:
“All manufacturers, exporters, and brokers of defense articles, defense services, or related technical data, as defined on the United States Munitions List…are required to register with DDTC.”
In addition to the required DDTC registration, many firms invest in compliance programs to ensure that their information systems and documentation are controlled and protected from improper disclosure in a way that would violate the law. One of the firms we represent at Baselodge Group is Extrusion Technology (X-Tech). They have recently announced that they have achieved ITAR compliance certification. As a custom manufacturer of products for their customers, X-Tech can assure their defense and security customers that their IP will be handled properly.
There are many good resources on the web to learn more about ITAR and EAR. The most direct source is the DDTC website. Another good resource is www.exportrules.com. If your firm’s products fall into the categories described on the United States Munitions List, you need to get up to speed on ITAR and EAR fast. If your products are on the list and if you outsource some or all of the manufacturing of the products, you should be in conversation with your contract manufacturer about their ITAR registration and compliance.
Topics: Agency Certifications, Contract Manufacturing, Defense, Electronics Manufacturing, Export, Information Technology (IT), Security, Supply Chain Management, Terrorism | 1 Comment »
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February 25th, 2010 at 12:47 pm
[...] For more on ITAR and related topics, check out my article on Artful Sourcing. [...]