What is ITAR and Why is it Important?

ITAR

Hallmark Nameplate is an approved supplier of the International Traffic in Arms Regulations (ITAR). This ensures that the company is held to high standards and produce military-grade products. But what is ITAR and what does it mean to be ITAR compliant?

What is ITAR?

ITAR is a set of regulations with the purpose of controlling the importation and exportation of defense-related goods that are listed on the United States Munitions List (USML). By controlling the importation and exportation of these munitions, the government is able to ensure that any defense-related technology is in the capable and trustworthy hands of companies like Hallmark Nameplate and not putting the American people in danger. These regulations are enforced through the Department of State.

Who Has to Register with ITAR?

Any manufacturers, exporters, or brokers of defense articles that work with services that are on the USML must register with the Directorate of Defense Trade Controls (DDTC), which is a part of the State Department. When going through the registration process, specific aspects of the business they conduct, such as who is involved in certain manufacturing, exporting, or brokering activities, must be provided to the United States government. Registering with the DDTC doesn’t give the organization the ability to export but it is a prerequisite to obtain a license or any other type of approval to be able to export.

How Do Companies Register with ITAR?

If a company registers with ITAR, they must send in their registration electronically to the DDTC and it is recommended they submit it 60 days in advance. The review time for registration typically lasts around 45 days. Once a company is approved with ITAR, they will receive a unique registration code. This code is made up of one letter followed by four or five numbers. If the registrant is a manufacturer or exporter, their code will begin with the letter M. If they are a broker, their code will begin with the letter K. The code is unique to the company that it has been issued to and is the sole property of that company. From the date the code is issued, it will be good for 12 months, at which time the company must renew their registration.

What Does It Mean to Be ITAR Compliant?

The terms “ITAR certified” and “ITAR compliant” are not used by ITAR. Being ITAR certified or ITAR compliant simply means registering with the DDTC to be able to sell products and services that are on the USML. If a company is ITAR compliant, they understand what it takes to follow the regulations of ITAR and hold themselves to those standards.

What is a Violation of ITAR and Penalties Thereof?

If the required license or written approval from the DDTC is not obtained, it is against the law to export, attempt to export, or transfer any products or services listed in the USML to a foreign end-user. It’s also illegal to import, attempt to import, or conspire to export or import any products or services listed in the USML to a foreign end-user. Additionally, anyone who engages in the business of brokering activities without a license or written approval by the DDTC or manufactures such materials without a license or approval is subject to penalties.

But what kind of penalties can be assessed for committing violations? Illegally exporting, importing, or transferring products and services listed on the USML to a foreign end-user without a license or written approval can result in fines, imprisonment, or both.

What Does ITAR Compliance Means for Hallmark Nameplate?

Hallmark Nameplate routinely partners with suppliers of the United States military as they produce nameplates, graphic overlays, and electronic assemblies. The fact that Hallmark Nameplate is ITAR compliant is an assurance that their products are properly tested and are capable of military-grade conditions. It also gives customers that supply the military the confidence that the nameplates, graphic overlays, and electronic assemblies are guarded as the government recommends.

If your business is a supplier for the United States military, it’s imperative that your manufacturing partner is ITAR compliant. That will ensure that each of their products and services are to the standard required by the Department of State and that they follow the proper protocols to avoid potential violations. Hallmark Nameplate is proud to be an ITAR compliant company ensuring that partners receive thoroughly tested and military-grade products.

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