ITAR and EAR

The International Traffic in Arms Regulations ("ITAR") control the export, import, sharing, and use of items and information found on the United States Munitions List. While it might seem the "Munitions List" would be specific to military items, its scope actually encompasses a great deal of technology. Consequently, it is essential for every company in high tech to understand ITAR and whether its business operations fall within the scope of ITAR.

The enforcement of ITAR falls within the jurisdiction of the Department of State. The penalties for violating ITAR can be quite severe with a single violation of ITAR providing for a fine of not more than $1,000,000, imprisonment of not more than 20 years, or both.

So, what is an ITAR violations? The export or attempted export from the United States of any defense article or technical data can result in an ITAR violation. ITAR can also be violated by providing a "defense service" for which ITAR requires a license or written approval. Beyond export, the import of a defense article into the United States without a proper license can give rise to an ITAR violation. In fact, the export, import, reexport, retransfer, or furnish of any defense article, technical data, or defense service without a license or written approval can constitute an ITAR violation.

The foregoing represent only some of the possible ITAR violations. In short, there simply does not exist enough room to adequately address all of the ITAR nuances. Consequently, anyone with any exposure to ITAR must consult with an ITAR attorney. s

A company utilizing technology must first determine whether their technology falls within the scope of ITAR and the United States Munition List. This happens to be more than simply the actual hardware or software. It involves the technical information associated with it. Moreover, it could involve even a component of a large product. Mudd Law can help you make this determination.

Next, the company must determine whether the business operations fall within the scope of ITAR. Should the company employ only United States citizens within the United States, do business only within the United States, purchase parts from only within the United States, ship product to locations only within the United States, and refrain from sharing any piece of inforation related to the technology outside the United States, the company may be fine. However, you should retain ITAR counsel to help make this determination.

Given the nuances and detail involved in some of these determinations, our firm invests the time to learn about its clients. We want to know our clients, their businesses, and their products and services.