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Compliance   19 min read

ITAR Compliance Requirements: Software & Strategy Guide

June 9, 2022

ITAR compliance is enforced for companies that provide products or services related to US defense and military technologies. Regulations are strict and there are heavy fines and penalties associated with non-compliance. Fortunately, comprehensive automated visitor management systems provide solutions that assist with ITAR compliance. 

Use this International Traffic in Arms Regulations primer to inform your compliance strategy and tools. 

 

What Is ITAR Compliance? 

The International Traffic in Arms Regulations (ITAR) is a strict set of export control laws enforced by the US Department of State. These laws control the import and export of defense and military-related technologies defined in the US Munitions List (USML).  

Careful measures protect national security and prevent sensitive data from falling into the wrong hands. ITAR compliance is required for any entity involved in manufacturing or exporting defense articles or providing defense services.  

These entities ⁠— including companies, universities, research labs, and defense contractors ⁠— must comply with ITAR or face significant penalties, including civil fines of up to $500,000, criminal fines of up to $1,000,000, and up to 10 years of imprisonment per violation. In addition, the US government may prohibit a non-compliant company from participating in any future import or export of defense articles. 

The Benefits of Compliance in Visitor Management 

An automated visitor management system has multiple benefits that deliver on important aspects of ITAR compliance. 

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Protecting Critical Military Technologies 

Any vulnerability in military technologies and intel is a threat to the facility and national security. You must employ tools to control and secure software, hardware, and sensitive military technologies. Compliant visitor management software is a turnkey solution for businesses dealing with critical national defense technologies to adhere to ITAR by screening facility entrants. 

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Preventing Unauthorized Access with Deny Lists 

Screening entrants against ITAR deny lists is vital in all facilities related to importing, exporting, or manufacturing USML technologies. This process keeps your facility safe from the infiltration of known bad actors, as well as the potential repercussions and penalties.  

Especially in high traffic and secure buildings, you need a method to quickly and accurately screen entries for threats. Watchlist database integrations enhance workplace security and compliance. 

Incorporate custom and ITAR-specific lists in your visitor management platform to automate the screening of everyone entering secure facilities. Verify and validate identification and credentials. Screen for authorized personnel or restricted parties at ITAR meetings and projects. Manufacturers can simplify the process of screening applicants against lists for their ability to access ITAR and USML-related materials.   

Upgrade your workplace security with denied parties lists.

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Creating a Formal Process for Visitor Monitoring 

For your business to comply with control regulations set forth by the US Department of Defense, you must maintain a formal process to monitor all visitors to your facility. Automated visitor control systems streamline the gathering and storing of all required documentation. 

Visitor monitoring systems can incorporate digital documents such as NDAs and liability waivers, collecting e-signatures for easy recall. They can also integrate with existing security systems, surveillance, and access control. Altogether, innovative visitor monitoring tools mean a more secure, accurate, and user-friendly process. 

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Working With Foreign Organizations in the Supply Chain 

It is of utmost importance to US national security that the sale and export of defense articles to foreign countries and international organizations is closely monitored, meticulously documented, and executed with the highest level of security.  

Digital visitor monitoring automates the collection of screening records, ensuring all contractors were screened against ITAR deny lists. 

The ITAR Compliance Checklist 

Keep your facilities and worksites ITAR-ready with this compliance checklist. Please note that the following is not legal advice but rather a guideline for ITAR compliance. Understanding the specific details relevant to your region, industry, and processes is essential. 

1. Identify USML Status 

Determine if the product or service you provide is on the USML, placing it under the jurisdiction of the State Department and requiring it to comply with ITAR. 

2. Understanding ITAR Components 

Review ITAR to ensure your understanding of its various components. ITAR is broken down into 11 parts: 

  1. ITAR Part 120 — Purpose and Definitions 
  2. ITAR Part 121 — The United States Munitions List 
  3. ITAR Part 122 — Registration of Manufacturers and Exporters 
  4. ITAR Part 123 — Licenses for the Export of Defense Articles 
  5. ITAR Part 124 — Agreements, Off-Shore Procurement and Other Defense Services 
  6. ITAR Part 125 — Licenses for the Export of Technical Data and Classified Defense Articles 
  7. ITAR Part 126 — General Policies and Provisions 
  8. ITAR Part 127 — Violations and Penalties 
  9. ITAR Part 128 — Administrative Procedures 
  10. ITAR Part 129 — Registration and Licensing of Brokers 
  11. ITAR Part 130 — Political Contributions, Fees, and Commissions

3. DDTC Registration

Register with the Directorate of Defense Trade Control (DDTC), ensuring that the export of defense articles, services, and technologies advances US national security and adheres to regulations.  

4. Classification 

Classify your products or services according to the USML. 

5. End Use 

Ensure you know your products' intended end-users and how they will use your product. 

6. Application 

Apply for an export license through the US State Department.  

7. Reporting & Documentation 

Ensure you fulfill all reporting requirements laid out by ITAR. Your documentation must be organized, easily accessed, and available for inspection by the DDTC at any time.  

8. Develop ECP 

Create and maintain an Export Compliance Program (ECP), which the Office strongly advises of Defense Trade Controls Compliance. Organizations should create this program with a specific understanding of their business works. As well as identifying your particular areas of risk. Your ECP should be documented in writing, tailored to your business, reviewed regularly, updated when necessary, and adhered to by your company's management. 

Visitor Management Technology for ITAR Screening 

Visitor management and screening are integral to the ITAR compliance process. iLobby completely handles and automates this requirement, reducing the burden on your compliance and audit processes and providing efficiency and speed throughout your daily activities of processing people in and out of your environment. 

iLobby is the global leader in enterprise visitor management, allowing companies and contractors working with the defense industry to track, monitor, and manage visitors to their facilities. With this intuitive, comprehensive system, you can maintain compliance with ITAR regulations while ensuring the user experience is as simple as possible. 

Schedule a demo today and discover how iLobby will transform workplace management for your organization. 

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