Often larger aerospace OEMs/Primes ask us to assist or mentor a key sub-tier supplier in achieving ITAR Compliance. Once we are introduced (to the supplier) we start by having a conversation with the senior executives on what they manufacturer, number of employees etc., but inevitably during that first phone call we are asked straight-out “How to we become ITAR compliant?”. Now I don’t mind this question, but unless the executives have a full understand the consequences of violating the ITAR or EAR, they usually don’t see the necessity of fully implementing the steps listed below. So, for all those sub-tiers who think DDTC registration is all you need to have to be compliant, AEI wanted to publish ITAR Compliance 101, a list of steps toward compliance.
In a nutshell the steps toward compliance include:
- Reading, gaining knowledge of the regulations (This is continuous)
- DDTC Registration
- Determining the classification of the item, data or service your organization offers.
- Training general employees and compliance personnel
- Determining processes for accessing controlled items by U.S. and Non-U.S. Person Employees
- Screening of customers
- Validating eligible suppliers
- Determining Licensing, agreements or use of exemptions
- Complying with Customs
- Recording Keeping
- Internal Auditing
Over the next few weeks I will include details of each of the steps listed below. Today’s installment is Step 1.
Step 1: Reading the ITAR
Reading Assignment #1:
Part 120 Purpose and Definitions
** Company executives and compliance personnel should take special care in reading and comprehending § 120.25 (a)(3) **
Reading Assignment #2:
Part 122 Registration of Manufacturers and Exporters
Reading Assignment #3:
§ 127.1 Violations
§ 127.2 Misrepresentation and Omission of Facts
§ 127.3 Penalties for Violations
Now if you have completed the reading assignments you should understand that this is just the beginning, there is much more to read, including the remainder of the ITAR, the FTR and EAR.
Please contact me with any questions or concerns.