Visitor Badges for ITAR Compliance
Do you need Visitor Badges?
Do you wonder if you should have visitor badges that are ITAR Compliant for your visitors?
ITAR classified articles affect the sale, distribution, and manufacture of products covered under the USML for most technology and security companies. U.S. Law requires that you ensure that your business is International Traffic in Arms Regulations – ITAR Compliant by being aware of how your products and services are classified, and how this classification requires you to exhibit certail controls. Not only does the ITAR the products and services but if your product or service is not an ITAR Article found on the United States Munitions List – USML it will be included in Commerce Control List – CCL regulated by the Export Administration Regulations – EAR.
The violations for businesses that are found to be non-compliant can be substantial for the company, its owners and individual employees.
If you own a company or are a contractor who does business with the U.S. government, you are most likely aware if you are subject to a number of broad regulatory requirements under which ITAR articles that are in place to control and prevent information and technology from falling into the wrong foreign hands. The U.S. Government requires ITAR compliance from all manufacturers, exporters, and brokers of defense articles, defense services or related technical data. Your company and members of your company’s supply chain must be ITAR Compliant if they’re involved in the manufacture, sale or distribution of either goods or services covered under the USML or a component supplier to goods covered under the USML. The same apllies to CCL (EAR) Controlled articles depending on the specific controls as they are applied based on the Export Control Classification Number (ECCN).
International Traffic in Arms Regulations – ITAR
The ITAR was originally established to regulate military products and services, but it was later expanded to cover many products that are commercial in nature. Many items developed for military use have evolved into mainstream commercial products in the security, electronic, navigation, maritime, and aviation industries.
It can be difficult to determine if a product is subject to ITAR, which presents a challenge for many business owners, because aligning a product with the guidelines is hard to pinpoint. However, it is important to understand this distinction, especially if your firm (or your firm’s vendors) provides products and services to government customers.
At the core of the ITAR is the USML list of products, which names a wide variety of products, software, technical data and services subject to regulation. Companies with products and services regulated under ITAR are subject to registration requirements, restrictions on transfer of regulated software and technical data, or restrictions on the performance of defense services for foreign parties, are required to obtain export licenses and must meet specific record-keeping requirements.
ITAR in Contracts
The stipulation to be ITAR Compliant means that the company must be registered with the State Department’s Directorate of Defense Trade Controls (DDTC) and the company must understand and abide by ITAR as it applies to their USML linked goods or services. By registering, the company is certifying that they operate in accordance with ITAR when they agree to be a supplier for a USML prime exporter.
Increasingly, companies are requiring that ITAR compliance language be included in contracts, on purchase orders and requests for proposals. Nowhere in ITAR regulations is it spelled out what “ITAR certified” actually means, but generally ITAR compliance regarding technology and security companies affects the manufacture, sale, and distribution of technology and the control access to specific types of technology and associated data. In effect, the government is trying to prevent the disclosure or transfer of sensitive information to a foreign national.
As a result, ITAR can pose challenges for global corporations, since data related to specific technologies may need to be transferred over the Internet or stored outside of the United States in order to make business processes flow smoothly. The responsibility lies with the manufacturer or exporter to take the necessary precautions and steps to certify that they are, in fact, meeting ITAR compliance requirements.
Violations can result in criminal liability for a company discovered to be non-compliant, which could mean fines and possible imprisonment for the company’s owners and employees.
The ITAR regulates more than just physical export of products or services; the regulations also include a variety of activities that involve domestic commercial businesses.
When you have visitors at your facility, it is important that you restrict access to individuals who do not have the legal authority to view or interact with restricted articles including your company’s products or services. It is a “deemed export violation” if a foreign citizen were to visit your company and see an ITAR Product being built.
It is therefore important to have effective visitor management processes for your facility to control visitor access and to ensure that your employees know how they may interact with the visitor. Using ITAR visitor badges ensures that your visitor is properly identified so that the controls and protocols you have in place ensure proper handling of their visit and reduces the risk for a violation.
Your visitor badges should have one for citizens of foreign corporations or foreign citizens. Another for U.S. Persons with Escort Required and one for U.S. Persons No Escort Required.
Find out more about ITAR compliance and whether your company should be registered by contacting CVG Strategy, experts in ITAR and Export Compliance, for a consultation.
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