If, you are doing business in the defense sector, you should require you should be ITAR compliant. When you are planning to export the defense items and technical data across the international borders, you should follow all the regulations that fall under the ITAR regulations. Some of the export companies realize that ITAR is very expensive and unnecessary at the same time. But in the true sense, it is the Law and everyone should abide with the export law and regulations to maintain legality in the trade. Violating the export rules force the business entities to pay the huge amount of penalties to the US government.
In case, if each and every transaction, there is the need to screen all the export parties and the associates. In the earlier days, most of the business entities screen their products and end-users with the help of various online means, but this process requires lot of time and expert knowledge. Falling to comply with the trade regulations has several consequences. The parties that are falling under the restricted party list have to pay huge amount of fines, face publicity loss, loss of reputation, prohibition to trade and withdrawal of the trade license.
What is the Meaning of Defense Objects
The items that come in this category include any item or any sort of technical data that come under the list of USML. The item that has an important military and or other applicability, any type of modification for the defense or the military purposes comes under the category of defense item. The technical data may be any sort of information that is necessary for the design and development, manufacture, operation, maintenance of the defense item, assembly, and repair and also testing of the item. ITAR compliance always needs the documented system as there are various working areas that require to be checked.
- HUMAN RESOURCE PROGRAM:
This sector includes training, consulting and hiring practices that require to be cleared as they are related as the ITSR controlled items. This program should define the rules over the hiring of citizen verification, training on the specific guidelines, employee responsibility, and the citizen verification.
- CORPORATE CONTROL PROGRAM:
All the major ITAR programs clearly find the corporate commitments that meet and maintain all the guidelines that fall under the ITAR regulations. This type of program generally identify the persons who are responsible for the overseeing of the export control program, duties and responsibilities for the main individuals who are responsible for the ITAR rules and the senior company management.
- INTERNAL AUDIT PROGRAM:
Once the exporter has developed the ITAR program, the internal audit process should be established for monitoring and implementing the effectiveness of the compliance program. This program has auditor training, yearly schedule of the audit activities and the documentation of audit reports.
Thus, it is clear from the above content that before planning to export technical data and defense articles, you should be ITAR compliant.