What is ITAR Compliance?

What is a ITAR Compliance

ITAR Compliance Definition

ITAR compliance means that organizations (wholesalers, contractors, software/hardware/technology vendors, third-party suppliers) which sell, manufacture, and distribute services or products must abide by the rules and specifications set forth by the International Traffic in Arms Regulations (ITAR).

To become ITAR compliant, organizations can register with the State Department’s Directorate of Defense Trade Controls (DDTC). Once registered and accepted, companies and vendors will understand what is required of their organization to be ITAR compliant. It is the company’s responsibility to make sure the ITAR specifications are followed–making sure their service or product falls within ITAR compliance rules and regulations.

FAQs

Who needs to comply with ITAR?

Any organization that manufactures, sells, or distributes United States defense articles, defense services, or related technical data must be ITAR compliant.

*Source: https://www.spadetechnology.com/what-is-itar-compliance-and-who-needs-to-get-it/

What is subject to ITAR control?

Defense articles, goods and technology designed for military setting, and related technical data are subject to ITAR control. This includes:

  • Firearms and ammunition
  • Materials, chemicals, microorganisms, and toxins
  • Military vehicles
  • Aircraft and associated equipment
  • Spacecraft systems
  • Classified articles, technical data, and defense services

*Source: https://research.ncsu.edu/administration/compliance/research-compliance/export-controls/export-controlled-items/

How much does it cost to become ITAR compliant?

Companies must register with the Office of Defense Trade Controls Compliance (DTCC) to become ITAR compliant. The application fee is $2,250 for first time registrants. Renewal fees range between $2,250 and $2,750 per year.

The internal cost for companies varies depending on the existing practices and policies that are in place.

*Source: https://tradeconsulting.com/who-needs-to-be-itar-registered/

The Cost
of
Mistakes

Delivering new products to market is challenging. And It is difficult to see the cost impact of one or more mistakes.

Try our calculator to estimate the impact on your business. Input your business details, select a challenge, and see the real-world cost impact as validated by our customers.