Export Compliance ITAR 3 of 3


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Export Compliance ITAR 3 of 3

  1. 1. Living With ITAR March 31, 2009 International Corporate Compliance LLC
  2. 2. Should you register? <ul><li>If you sell this or other items to a military or defense related organization, you need to register! </li></ul>International Corporate Compliance LLC
  3. 3. Exemptions <ul><li>Officers and employees of the United States Government acting in an official capacity. </li></ul><ul><li>Persons whose pertinent business activity is confined to the production of unclassified technical data only. </li></ul>International Corporate Compliance LLC
  4. 4. Exemptions <ul><li>Persons all of whose manufacturing and export activities are licensed under the Atomic Energy Act. </li></ul><ul><li>Persons who engage only in the fabrication of articles for experimental or scientific purpose, including research and development. </li></ul>International Corporate Compliance LLC
  5. 5. Domestic Considerations <ul><li>Export Control Technical Data Package (TDP) </li></ul><ul><li>Technical data can only be released to contractors who are authorized/certified by Defense Logistics Service Center. </li></ul><ul><li>This applies to all domestic (TDP) rated contracts whether you are prime or secondary. </li></ul>International Corporate Compliance LLC
  6. 6. Directorate of Defense Trade Controls <ul><li>Interagency group under State Department and Defense Department </li></ul><ul><li>Legislative authority found in 22CFR. </li></ul><ul><li>US Munitions List found at: http://www.pmddtc.state.gov/regulations_laws/documents/official_itar/ITAR_Part_121.pdf </li></ul><ul><li>http://www.pmddtc.state.gov/ </li></ul>International Corporate Compliance LLC
  7. 7. ITAR – International Traffic in Armaments Regulations <ul><li>All manufacturers, exporters, and brokers of defense articles, defense services, or related technical data, as defined on the United States Munitions List (Part 121 of the ITAR) , are required to register with DDTC. </li></ul><ul><li>ITAR divided into 21 specific categories, the 21 st being totally all inclusive and vagarious. </li></ul><ul><li>Registration does not confer any export rights or privileges, but is a precondition for the issuance of any license or other approval for export. </li></ul>International Corporate Compliance LLC
  8. 8. ITAR Registration Requirements <ul><li>Transmittal Letter </li></ul><ul><li>The DS-2032 form, and attachments </li></ul><ul><li>Documentation </li></ul><ul><li>Fees </li></ul><ul><li>Hint: Must submit one original and two copies of all documentation. </li></ul>International Corporate Compliance LLC
  9. 9. Transmittal Letter / DS-2032 <ul><li>Download the Transmittal Letter making changes as appropriate. Download at: http://www.pmddtc.state.gov/registration/documents/registration_transmittal_letter.doc </li></ul><ul><li>Download the DS-2032 and all attachments using only Internet Explorer at: http://www.pmddtc.state.gov/registration/documents/ds2032-complete.pdf </li></ul><ul><li>Note: All attachments are included. </li></ul>International Corporate Compliance LLC
  10. 10. DS-2032 Attachments <ul><li>Block 7 - Additional Directors, Officers, Partners, and Owners </li></ul><ul><li>Block 8 - Additional USML Categories </li></ul><ul><li>Block 9 - Additional U.S. Subsidiaries </li></ul><ul><li>Block 10 - Additional Foreign Subsidiaries </li></ul><ul><li>Block 11 - Additional Parent Companies </li></ul>International Corporate Compliance LLC
  11. 11. Documentation <ul><li>State Incorporation Certificate </li></ul><ul><li>State Certificate of Good Standing </li></ul><ul><li>State, County or City Business License </li></ul><ul><li>State Articles of Incorporation, sole proprietorship, partnerships, limited liability partnership/company, and corporations </li></ul>International Corporate Compliance LLC
  12. 12. Fees <ul><li>The first tier will be a set fee of $2,250 per year for registrants registering with the Department for the first time. </li></ul><ul><li>The previous license application fee is now built into the registration fees. </li></ul>International Corporate Compliance LLC
  13. 13. Recordkeeping <ul><li>A person who is required to register must maintain records concerning the manufacture, acquisition and disposition (to include copies of all documentation on exports using exemptions and applications and licenses and their related documentation), of defense articles; of technical data; the provision of defense services; brokering activities; and information on political contributions, fees, or commissions furnished or obtained, as required by part 130 of this subchapter. </li></ul>International Corporate Compliance LLC
  14. 14. Compliance <ul><li>Any registered firm is strongly cautioned to implement a compliance program. </li></ul><ul><li>“ Compliance Program Guidelines” contains suggested compliance elements and is available for download at: http://www.pmddtc.state.gov/compliance/documents/compliance_programs.pdf </li></ul>International Corporate Compliance LLC
  15. 15. Commodity Jurisdiction <ul><li>What’s a CJ? </li></ul><ul><ul><li>A Commodity Jurisdiction is a binding decision as to which federal agency will have licensing authority concerning your product. </li></ul></ul><ul><ul><li>Dual use commodities, i.e. civilian and military - Example – fasteners often bear milspec #’s </li></ul></ul><ul><ul><li>A CJ can be extremely time consuming and contentious to obtain / registration not necessary. </li></ul></ul><ul><ul><li>Hint: 9 Copies of all documentation required! </li></ul></ul>International Corporate Compliance LLC
  16. 16. Deemed Exports <ul><li>Deemed exports are the most common violation inasmuch as they often occur: </li></ul><ul><li>At trade shows. </li></ul><ul><li>At your facility. </li></ul><ul><li>Through sales presentations or via technical presentations. </li></ul><ul><li>Please see my website for a download about Deemed Exports. </li></ul>International Corporate Compliance LLC
  17. 17. Other Regulatory Organizations <ul><li>Bureau of Industrial Security, USDOC – http://www.bis.doc.gov </li></ul><ul><li>Office of Foreign Assets Control, Dept. of Treasury - http://www.treas.gov/ </li></ul><ul><li>Nuclear Regulatory Commission (NRC) - http://www.nrc.gov/ </li></ul>International Corporate Compliance LLC
  18. 18. Other Regulatory Organizations to a lesser degree <ul><li>Drug Enforcement Administration - http://www.usdoj.gov/dea/ </li></ul><ul><li>Department of the Interior - http://www.doi.gov/ </li></ul><ul><li>Food and Drug Administration - http://www.fda.gov/ </li></ul>International Corporate Compliance LLC
  19. 19. Thank You! International Corporate Compliance LLC www.ic2x.com International Corporate Compliance LLC