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ITAR for Manufacturers: Compliance and Best Practices

ITAR Compliance and RegulationsEVS Metal has two International Traffic in Arms Regulations (ITAR)-registered metal fabrication and manufacturing facilities: Pflugrville (Austin), Texas; and Keene, New Hampshire.  ITAR registration is required by the U.S. State Department’s Directorate of Defense Trade Controls (DDTC) for all of its contracted manufacturers, exporters and brokers. Therefore, we thought it was time we covered some of the regulations concerning this important distinction including compliance, violations and what’s commonly known as the eCFR — Electronic Code for Federal Regulations.

 

ITAR Compliance

Ensuring compliance with ITAR is ultimately up to each individual organization once they are registered. Not staying compliance can result in some very high fines, as well as potential removal from the United States Munitions List (USML). Either (or both) of these could be very high prices to pay, so it’s in companies’ best interest to be in compliance at all times, to the best of their abilities.

 

What Are Best Practices for ITAR Compliance?

It is EVS’s belief that companies which certify under current ISO 9001 standards will likely have an easier time developing best practices for ITAR compliance, simply because there is so much crossover between the two. Truly understanding your business and ensuring many levels of transparency does a long way toward excellent outcomes for both ITAR and ISO programs. That being said, there are nine areas which the Directorate of Defense Trade Controls’s Office of Defense Trade Controls Compliance recommends be a part of an internal ITAR compliance control program. These are:

  • Organization Structure
  • Corporate Commitment & Policy
  • Identification, Receipt and Tracking of ITAR Controlled Items/Technical Data
  • Re-Exports/Retransfers
  • Restricted/Prohibited Exports and Transfers
  • Recordkeeping
  • Internal Monitoring
  • Training
  • Violations and Penalties

Failure to give attention to each of these areas increases the chances that companies may inadvertently end up in violation of ITAR regulations and be made to pay a penalty (as much as $1.5 million per violation (civil and criminal combined), or even be removed from the USML entirely.

 

More About ITAR

Looking for more detail about ITAR? Come back next week when we’ll cover the best practices in more detail.

 

About EVS Metal

EVS Metal is an American precision metal fabricator headquartered in Riverdale, NJ. Our machinists and operators utilize the latest technology to cut, bend and finish stand-alone items as well as parts for integration or assembly into more complex products. EVS Metal’s four ISO 9001:2015-certified locations comprise over 250,000 square feet of vertically-integrated manufacturing space and feature the most modern equipment available, from lasers and CNC machining centers to automated powder coating lines.

We serve a diverse customer base across North America, providing a range of services from ITAR-compliant, quick-turn prototypes to high-volume production runs. Request a personalized metal fabrication quote online or call (973) 839-4432 to speak with a specialist today.

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