What does it mean to be ITAR compliant?

If you’re an MSP or consulting firm, you may want to understand what ITAR means and how it applies to your organization. For example, ITAR prohibits transferring ITAR-compliant data to foreign countries, making it more challenging to leverage managed I.T. service providers. In addition, many large MSPs and consulting firms utilize offshore labor, making it impossible for employees to access ITAR-compliant data. However, you may be able to choose a local MSP who can guarantee that foreign employees will not have access to any of your business’s sensitive information.

Access Control

In addition to compliance regulations, organizations must establish governance policies and access controls to protect their sensitive data. For example, itar-certified molders require organizations to notify all employees who might have access to sensitive data about U.S. defense systems. In addition, companies should tag technical data with ITAR notifications to prevent employees from accidentally revealing controlled information.

To comply with ITAR requirements, companies must identify their requirements and develop strategies to address them. For example, companies providing electronic components to the F-35 will have different needs than those providing USML program services. Therefore, they are using an ITAR risk assessment addition, using low companies to identify the most significant legal risks and focusing on minimizing them. In addition, a secure enclave enables a company to use sophisticated controls that require licenses for those who need them.

Risk Assessment

Conducting a Risk Assessment to be ITAR compliant requires a company to determine the requirements of the ITAR. These requirements vary according to the type of business, customer base, and country of operation. In addition, the risk assessment will evaluate strategies and policies to be implemented. 

Consider using consumer-grade software to manage and store data that requires ITAR compliance. Google Drive, Dropbox, Airtable, and Quick Base are examples of software solutions that are not ITAR-compliant. Additionally, ensure that any third-party contractor who handles sensitive data follows the ITAR rule. If you don’t, you may end up transferring controlled information abroad. To be sure you comply with the ITAR, use consumer-grade software to store and manage your sensitive data.


One of the biggest challenges businesses faces in implementing ITAR compliance programs. They must keep track of technical data and ITAR-controlled items. Failing to enforce the ITAR can result in hefty fines or even imprisonment. Because of this, businesses must choose a cost-effective and interoperable solution for recordkeeping. Here are some helpful tips for implementing an ITAR compliance program. Here are three reasons why you need to keep good records.

To become ITAR-compliant, companies must register with the DDTC. Registering with the DDTC acknowledges that the company understands the requirements of ITAR and that it meets those requirements when exporting USML goods and services. Companies must also register if they plan to supply parts or services to USML exporters. In some cases, registration does not guarantee compliance, but it does demonstrate that the company is committed to ITAR compliance.

Statement of Registration

An ITAR Statement of Registration is a legal document confirming that a company meets the regulations regarding export controls. It is required to be filed with the Department of State to do business in the U.S. Listed below are the different ITAR Statements and their respective purposes. If you are a contractor, you must check with the Department of State regarding ITAR compliance. You must include the substance of this clause in all subcontracts and contracts with subcontractors.

If you are not yet registered, you can apply for one. The U.S. Department of State’s website provides instructions on writing as an ITAR supplier. After completing the application process, you will receive a registrant code. Once approved, your registration will last for 12 months. The ITAR Guide highlights common change scenarios that organizations should be aware of. A company should also submit a statement of registration as ITAR compliant to maintain its status.

Penalties for noncompliance

If you are a company and you export defense or technical data, you must be aware of the various ITAR penalties that can be imposed. Noncompliance with the ITAR can result in a loss of export privileges, reduced business operations, and even criminal charges. In addition, depending on the severity of the violation, you may be required to hire a special compliance officer to monitor your company’s compliance program.

Business fines for noncompliance with ITAR regulations can reach $1 million. This is adjusted annually in January and may affect your company’s competitiveness. Individual penalties for violating ITAR regulations can also result in debarment or loss of export license. In addition, you may suffer a bad reputation for breaking the law.