Who must be ITAR registered?
I have always encounter misconceptions about the International Traffic in Arms Regulations (ITAR). Among the most important sources of confusion is registering as a Manufacturer, Exporter or Broker under the ITAR. Let’s clear up the confusion and shed some light on the matter.
Let me begin by saying that under the ITAR, “Anyone that engages within the us within the business of either manufacturing or exporting defense articles or furnishing defense services is required to register with the Directorate of Defense Trade Controls.” (122.1(a))
This applies to everyone, albeit you simply decide to manufacture or export just one occasion. It also applies to manufacturers who ONLY manufacture and don't export.
We often hear people say, “I’ve been manufacturing for several years, and I’ve never registered.” which will be the case, but under the ITAR if you're manufacturing defense articles you're required to register with the Directorate of Defense Trade Controls (DDTC). Failing to try to to so violates regulations and will also cause you to lose business. Many defense contractors have begun requesting verification that their suppliers are registered and can move their business to an ITAR registered supplier if a corporation refuses to register.
What is the ITAR?
The International Traffic in Arms Regulations control the export and import of defense articles including items, services and technology. The regulatory text of the ITAR are often found in 22 C.F.R. Chapter I, Subchapter M, Parts 120-130.
Within the ITAR you'll find the us Munitions List (USML). The USML provides an inventory of all items controlled within the ITAR and may be found partially 121.
What does a corporation need to do to register?
To register, the corporate must submit an entire registration package to the Office of Defense Trade Controls Compliance (DDTC). The registration package includes:
Statement of Registration – Form DS-2032
State Incorporation Certificate, State Certificate of excellent Standing, or State of Incorporation, Sole Proprietorship, Partnership, indebtedness partnership/company and corporations.
How much does it cost?
There is a 3-tier fee for applications for renewal registrations. If you're a primary time registrant, the present application fee is going to be $2,250. For renewals:
If DDTC has not reviewed, adjudicated or issued a response to any application the present applicable fee is $2,250 per annum.
If DDTC has reviewed, adjudicated or issued a response to between 1 and 10 applications the present application fee is $2,750 per annum.
If DDTC has reviewed, adjudicated or issued a response to quite 10 the fee is $2,750 plus a further fee supported the amount of applications.
Tip: Companies that are processing a registration renewal should use the shape DS-2032 directly from the pmddtc.state.gov website to make sure your registration application are going to be processed during a timely manner. Many companies re-use the previous year’s application and there are several changes to the present form that weren't included in previous versions.