ITAR & Export Compliance is a specialty of CVG Strategy’s ITAR Consulting services.
You will find that CVG Strategy’s ITAR Consulting is different than many other consultant’s ITAR Consulting services. Our ITAR & Export Compliance Specialists have managed manufacturing and distribution businesses in the past, and we have worked for multi-national organizations. CVG Strategy’s experts are not ex-government employees, they are practical operations folks very familiar with the needs and goals of small- to medium-sized operations. It is required that every one of our ITAR & Export Compliance Specialists take continuing education several times each year, and maintain their ECTI Accredited Export Compliance Professional-EAR® (EAR Export Controls) and ECTI Accredited Export Compliance Professional-ITAR® (ITAR Defense Trade Controls) certifications.
What is ITAR?
The International Traffic in Arms Regulations (ITAR) detail the regulations governing the export of defense related materials and technologies, including hardware, software, and services. Administered by the (DDTC) Directorate of Defense Trade Controls, (Department of State) the goal of ITAR is to safeguard U.S. national security and further U.S. foreign policy objectives and policies. It provides definitions of important terms, with information and procedures for registration, licenses, agreements, general policies, violations, penalties, and administrative procedures.
Under ITAR §122.1(a) a company is required to register if it manufactures defense articles or provides defense services even if the product is never exported.
What is the EAR?
The EAR (Export Administration Regulations) are the rules by which the (BIS) Bureau of Industry and Security (U.S. Department of Commerce). It regulates and controls exports of goods from the United States. All goods and services that are not covered under the State Department’s US Munitions (USML) list fall within the preview of the EAR, under the Commerce Control List (CCL). Now that Export Control Reform (ECR) is taking effect, attention to the EAR is even more important.
Taken from the BIS Website: the “BIS Mission: Advance U.S. national security, foreign policy, and economic objectives by ensuring an effective export control and treaty compliance system and promoting continued U.S. strategic technology leadership. The mission of the Bureau of Industry and Security (BIS) Export Enforcement is to protect U.S. national security, homeland security, foreign policy, and economic interests through a law enforcement program focused on: sensitive exports to hostile entities or those that engage in onward proliferation; prohibited foreign boycotts; and related public safety laws.”
Original authority was granted the BIS under the Export Administration Act of 1979, as amended, (Pub. L. 96-72, 93 Stat. 503, 50 U.S.C. app. 2401 – 2420). The International Emergency Economic Powers Act, as amended, (Pub. L. 95-223, 91 Stat. 1628, 50 U.S.C. 1701 – 1706) with additional authority granted from a series of Presidential Executive Orders added to the legislative support for the Export Administration Regulations.
Permanent Statutory Authority for U.S. Export Controls.
With limited exceptions, the ECA (Export Control Act of 2018) repeals the Export Administration Act of 1979, which lapsed in 1994 and has been statutorily authorized each year since pursuant to Executive Orders issued under the International Emergency Economic Powers Act (“IEEPA”). Accordingly, the ECA now serves as the permanent statutory authority for the U.S. Export Administration Regulations (“EAR”), which generally govern the export, reexport, and in-country transfer of commercial and dual-use commodities, software and technology, and which are administered by the Bureau of Industry and Security, U.S. Department of Commerce (“BIS”)
What about Anti-Boycott Regulations?
In the United States, anti-boycott regulations primarily deal with opposing restrictive trade practices against Israeli businesses. The Arab League formally requires member countries to boycott trade with Israel and trade with companies that trade with Israel based on an agreement it enacted in 1948. In response, the U.S implemented its anti-boycott laws in the mid-1970s to prevent U.S. companies from boycotting trade with Israeli companies. The law also prohibits the refusal to employ U.S. citizens because of their nationality, race or religion.
The Export Administration Act (EAA) sets forth the U.S. anti-boycott regulations and the criminal and civil penalties (fines, imprisonment, and denial of export privileges) for companies and employees who don’t comply with the law. The purpose of the regulations is to prohibit U.S. companies from implementing other countries’ foreign policies when those policies disagree with U.S. policy. The related 1977 Ribicoff Amendment to the Tax Reform Act of 1976, which is overseen by the Internal Revenue Service (IRS), denies tax benefits to companies that do not comply with anti-boycott laws.
What does Export Compliance mean to businesses?
If your company deals with defense equipment, supplies, services or technologies, the ITAR and Export Compliance regulations specify that you share these items only with U.S. persons and organization unless you receive authorization from the Department of State or qualify for a special exemption. If your company offers dual-use or specially classified items under the control of the Commerce Control List (CCL) and the Export Administration Regulations, similar restrictions on access are applicable. Companies and individuals may face potentially heavy fines or penalties for providing foreign persons with access to ITAR or EAR-protected and restricted items.
What is compliance?
- Registration with DDTC (if required)
- Active and documented compliance policy and procedures
- Denied parties watch list screening
- Internal audits and continuous improvement discipline
- Third-Party Audits – Annual
If you are part of a large corporation with an ITAR or EAR compliance related employees or a small company with a part-time compliance person, CVG Strategy has the compliance and training programs to fit your exact needs. We even serve as an outsourced Export Compliance Officer for some clients, who don’t have the bandwidth to dedicate to the function but need it done on a part-time basis where we can perform this on their behalf.
ITAR Consulting at CVG Strategy
CVG Strategy, LLC is recognized the world over as the premier provider of customized ITAR Consulting and ITAR & Export Compliance Programs and Training that addresses critical U.S. Government regulations, from Export Administration Regulations (EAR), to the International Traffic in Arms Regulations (ITAR) and Office of Foreign Asset Controls (OFAC) and other regulatory agencies and more.
How Can We Help?
Take a look around our site and contact us for more information on how we can help you meet your challenges.