ITAR can be difficult to understand for those unfamiliar with its lengthy regulations and applications. Stay updated on the latest news through our Compliance Corner.
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9 Responses
Our firm will be exporting internationally. This will be our first export, and not 100% sure about ECCNs, and whether a license will be required. Can you shed some light on this topic.
Great question and would be glad to help assist.
First, you will need to have your items classified correctly to ensure they have all the key elements for exporting internationally. While you show some knowledge regarding the Export Control Classification Number (ECCN), you must also consider the part description, quantity, country of origin, tariff codes, values, and Incoterms as other integral parts for the shipment of an item.
Either way, licensing of a component, part, software, or data is influenced by its original design intent. Once that is established a regulatory agency, such as the US State Department for ITAR items, or US Commerce Department for EAR items will govern the licensing attributes associated with the part itself.
If the item is on the ITAR, you will very likely need a license to authorize further exports of that material. If it is the EAR, a series of end user, end country, and item specific classification review will help determine the ability to exercise a exception or if the transaction will ultimately need a US Government authorization in place prior to any export (oral, visual or physical)
We are happy to assist at Cruzer LCC to navigate all these areas!!
What can you tell me about sub-licenses? What is one? Can a foreign company hire other companies to do services under an authorized TAA?
A sublicensee is a party that is authorized to take delivery of defense articles or services under the International Traffic in Arms Regulations (ITAR). This includes the responsibility to ensure that the licensed items are not further disclosed or transferred to unauthorized parties without prior approval from the U.S. government.
If you are an authorized foreign entity as part of a license of Technical Assistance Agreement (TAA) and have a sublicensee, they should be already recognized and authorized and must comply with ITAR regulations and may be required to submit additional documentation or certifications to maintain their authorization.
Hello,
As a Foreign Company can I do my own ITAR compliance without a U.S. company who is registered with the DDTC?
Hi,
Thanks for your question. In short, it’s not advised for the following reasons:
If you’re conducting ITAR, for your employees or someone else’s employees, why?
Are you supporting a defense service on US defense articles? If yes, please contact your U.S. ITAR compliance company. To many unknowns and the experts will advise you, to ensure you don’t violate US export laws. Thanks. We’re here to help
In short, it’s not advised. Most likely if a foreign company is providing ITAR training to its employees or another companies employees, one or both of the foreign firms are conducting a defense service on U.S. defense articles. There could be many concerns with this scenario, one that would require a registered U.S. company with knowledge in U.S. export compliance to address. Such things as: who are the parties involved, Nationalities of the parties, The defense articles in question, is there authorization from the Directorate of Defense Controls (DDTC), is it needed? To many unknowns for a foreign entity to completely understand. Please contact us, if we can be of service. Thank you for your comment.
As a non-US entity, you can request from DDTC an authorization to operate; however, for license submission and authorization, you will need a US entity in place to support the license application.
As a non-US entity, you can request from DDTC an authorization to operate; however, for license submission and authorization, you will need a US entity in place to support the license application. This would not limit you form operating with ITAR compliance in place; however, I recommend utilizing a US entity, who is familiar with ITAR controls and implementation, to assist in your program efforts.