ITAR and United States Defense On-Shoring Efforts
As more and more US defense companies are on-shoring their manufacturing operations, it’s imperative that they comply with ITAR standards.
We break down what ITAR is, how United States Defense manufacturers can ensure they are compliant, and why ITAR compliance is a driving factor in on-shoring efforts.
What is ITAR?
The International Traffic in Arms Regulation (ITAR) is a set of US regulations that control the manufacture, sale, and distribution of military and defense-related technologies on the United States Munitions List (USML).
The United States Government requires ITAR compliance from any company that manufactures, exports, or brokers defense technologies and services. In addition, ITAR regulations aim to prevent the disclosure and transfer of sensitive information to foreign governments and entities, and it seeks to protect against national security threats.
The regulations state that only United States citizens can access items on the list. However, if these items or data must be shared with non-US entities, ITAR mandates that companies obtain the proper export licenses.
The ITAR Compliance Process
There is no official certification process for being ITAR Compliant or Certified because companies are simply expected to comply with these regulations independently. However, ITAR is vague, so the government has more flexibility and control over military and defense-related technologies, articles, data, and services.
To be ITAR-compliant, you must:
- Register with the State Department’s Directorate of Defense Trade Controls (DDTC).
- Understand how ITAR applies to your articles, data, or services and fulfill any requirements
Businesses are responsible for developing, establishing, and maintaining ITAR compliance programs based on their unique products and risks.
ITAR Compliance and On-Shore Manufacturers
US defense companies that outsource their manufacturing must ensure that every company in their supply chain is ITAR compliant. For this reason, US defense companies should choose on-shore manufacturers because they are more likely to be ITAR compliant. As a result, there is a significantly lower risk of international data breaches.
It’s important to know that ITAR penalties can be extremely costly. Violations can result in up to $500,000 worth of civil fines per violation, up to $1 million in criminal penalties, and up to ten years of imprisonment per violation. To reduce the risk of ITAR violations and the costly fines that accompany those violations, working with on-shore manufacturers is the best option.
More and more US defense companies are choosing to repatriate their manufacturers and suppliers because of the financial and legal costs, along with the potential risks, of ITAR non-compliance.
ITAR-registered Domestic Manufacturers
To avoid the logistical and legal problems associated with dealing with non-ITAR-compliant manufacturers and suppliers, buying from domestic ITAR-registered manufacturers is your best option. SAT Plating is an ITAR-registered and compliant plating company based in Michigan. We can plate the most advanced composite and high-performance materials in the world.
SAT Plating specializes in plating high-performance plastics and works with a variety of industries, including aerospace, defense, medical, and industrial markets. Please contact us if you have any questions regarding the best plating service for your organization.