ITAR Compliance Program Audits,
Third Party Validation
The Importance of ITAR Compliance Program Audits
External ITAR Compliance Program Audits are recommended by the Defense Trade Controls Office of Defense Trade Controls Compliance (DTCC). These audits provide an unbiased third party evaluation of an organization’s overall export compliance program and practices. Therefore, it is important that these reviews be conducted regularly to keep a compliance program running smoothly.
A compliance audit is also recommended by the Bureau of Industry and Security (BIS) for parties that deal in products that fall under Export Administration Regulations (EAR).
These assessments evaluate the effectiveness of current processes and check for inconsistencies in processes as they relate to changes in export regulations. They thereby provide valuable inputs for process improvement and risk assessment by identifying deficiencies before they result in violations.
Audits include evaluations of:
- Product classification
- Record keeping
- Shipping procedures
- Internal controls for compliance
- Order processing systems
- Adherence to license approval conditions
- Effectiveness of training programs.
- Corrective Action and Follow-up procedures
- Procedures for visits and employment of foreign nationals
The Cost of Non-Compliance
In recent years agencies of the federal government have stepped up their enforcement efforts to prosecute violators of export control laws and regulations. As a result, there are numerous companies that have faced criminal and civil prosecution for violation of the International Traffic in Arms Regulations (ITAR).
Even for minor incidents where penalties are not assessed, significant time and capital must be expended in Voluntary Self Disclosure and requisite follow up measures. These follow up measures must address the occurrence and prevent any subsequent similar violations. Additionally, failure to implement these steps can lead to penalties which can occur years after the initial incident if there is a recurrence. Because of this, ITAR Compliance Program Audits are an excellent investment for your business.
CVG Strategy ITAR Expertise
Contact CVG Strategy to schedule your ITAR Compliance Program Audit. CVG Strategy ITAR experts have over twenty years of experience in ITAR and related U.S. export controls.
Compliance to export law as relates to EAR and ITAR can be a challenge for any organization. We can develop a program tailored to the needs of your company that will protect your business’s reputation and ability to conduct business.
Our training staff can provide webinar and seminar ITAR Training to maintain your staff’s know how. Proper knowledge ensures that your compliance program is in sync with the latest developments in government regulations. We can also provide guidance for questions concerning ITAR and conduct Export Control Classification Determinations.
The CVG Strategy ITAR Store provides signs, badges, and visitor guides to keep your facility secure and ITAR compliant.
How Can We Help?
CVG Strategy supports businesses and organizations with Quality Management Systems, Test and Evaluation, Cybersecurity and Export Compliance.