RCGI-Do I Need to Register My Company with the DDTC under the ITAR

Did you know that The International Traffic in Arms Regulations affects more than just exporters? You may need to register with the Directorate of Defense Trade Controls even if you do not export.

Registration and the ITAR 

The Department of State is responsible for the export and temporary import of defense articles and services governed by the Arms Export Control Act (AECA). The International Traffic in Arms Regulations ("ITAR," 22 CFR 120-130) implements the AECA, and section 122 of the ITAR regulates the Registration of both Exporters AND Manufacturers. You must register with the Department of State if you manufacture or export United States Munitions List (USML)-controlled items also known as “defense articles” and “defense services”. 

    • Even if you never export – you must register
    • Just technical data – you must register
    • Defense services to foreign persons – you must register
    • Only one occasion of manufacturing or exporting or temporarily importing a defense article or furnishing a defense service – you must register 

The State Department wants to gather this information so they are aware of this activity for National Security reasons. 

Defining “Defense Articles” 

What is considered a defense article on the USML? The ITAR says “defense article” means anything controlled on the USML, The United State Munitions List. If it is listed on the USML, it is controlled by the ITAR, even if it is also on the Commerce Control List under the EAR. 

The ITAR controls “defense articles” (ITAR 120.6), which are: 

    • Items enumerated (specifically mentioned) on the USML, such as missiles, including some non-military items like satellites, materials and instrumentation.
    • Includes technology and software, electronics, protective equipment, some firearms.
    • Items “specially designed” or specifically designed for enumerated items or applications (catch-all)
    • Parts, components, accessories, etc. 

The ITAR also controls Technical Data (ITAR 120.10): 

  • Information required for the design, development, production, manufacture, assembly, operation, repair, testing, maintenance or modification of defense articles.
  • This includes information in the form of blueprints, drawings, photographs, plans, instructions and documentation
  • Software directly related to defense articles 

The ITAR controls Defense Services (ITAR 120.9), providing services related to items on the USML

Exemptions from Registration 

There are four exemptions from this registration requirement, listed in ITAR 122.1(b)

    • Officers of U.S. Government
    • Only produce unclassified tech data
    • All activities covered by Atomic Energy Act
    • Fabricate articles for scientific (R&D) purposes 

Registration Guidelines 

If you decide that you should register, you can follow the guidelines found in: www.pmddtc.state.gov/registration.Submit the following documents electronically: 

  • Form DS-2032 – downloaded from website
  • Copy of certificate of incorporation or authorization to do business
  • Electronic payment of fee (minimum $2,250) for the first year; subsequent years (minimum $2,500) include 10 free license applications; can increase based on number of license applications you apply for
  • Only register for one year at a time; annual registration required 

Registration just gets your organization set up to be involved in ITAR activities. Your organization needs to also designate individuals who have the lead responsibility for ITAR compliance, known as Empowered Officials. The Empowered Official must: 

  • U.S. citizen
  • Directly employed by the company
  • Employee having authority for policy or management
  • Designated written authorization from the organization to sign applications (Others can submit, only empowered official can sign)
  • Know the rules – ITAR, EAR, OFAC, etc. – must have some training
  • Have authority to enquire, verify and refuse without retribution within your company 

Redstone Government Consulting—DDTC/ITAR Support

For further information, contact Redstone Government Consulting. Our experts can assist you with the ITAR registration process, including determining eligibility, processing documentation, and designating Empowered Officials. We offer consulting packages which can include ITAR registration, training for your leadership team, and monitoring of your required registrations and renewals.

Written by Carolyn Turner

Carolyn Turner Carolyn Turner is an Export/Import Compliance Consultant at Redstone Government Consulting, Inc., specializing in international trade regulations, includingInternational Traffic in Arms Regulations(ITAR) andExport Administration Regulations(EAR) on the export side. She provides guidance on import compliance matters such as customs clearance, classification, free trade agreements, country of origin requirements, duty drawback, and supply chain analysis. Carolyn advises contractors on regulatory compliance and develops policies and procedures to support effective international trade operations.Since 2002, Carolyn has held roles including International Research Analyst, International Trade Specialist, and Assistant Director or Research and Training at the Alabama International Trade Center, where she conducted market analyses, and provided training and consulting to small and medium-sized businesses across all industry sectors. She also has experience in freight forwarding working as the NVO coordinator for both imports and exports. And she has also served as an Adjunct Professor at the University of Alabama, developing and teaching online International Business courses.Carolyn is a Licensed U.S. Customs Broker and a NASBITE Certified Global Business Professional. She is proficient in Spanish. Her skills include Incoterms, import and export documentation, ITAR/EAR, free trade agreements, compliance program development, and international finance.She holds a B.S. in Commerce and Business Administration and a Master’s in Management with a Global Business Concentration from the University of Alabama. Carolyn serves on the boards of the Japan America Society of Alabama, Destination Hoover International, and BIO Alabama, and is a member of the Export Alabama Alliance.

About Redstone GCI

Redstone GCI is a consulting firm focused on fulfilling the needs of government contractors in all areas of compliance. With a singular mission to help contractors through the multiple layers of “red tape,” we allow contractors to focus on what they do best – support their mission with the U.S. Government. We are home to a group of consultants made up of GovCon industry professionals, CPAs, attorneys, and retired government audit and acquisition professionals.

Our focus and knowledge of audit and compliance functions administered by DCAA and DCMA will always be at the heart of what we do. However, for the past decade, we’ve strategically grown to support other areas of the government contractor back-office with that same level of focus and expertise. We’ve added expertise in contracts management, subcontract administration, proposal pricing, various software systems, HR and employment law, property administration, manufacturing, data analytics/reporting, Grant specialists, M&A, and many other areas. When we see a trend in the needs of contractors, we act to ensure we can provide the best expertise in the market to fulfill those needs.

One thing our clients can be certain of is that with the Redstone GCI Team in your corner, there is no problem too big and no issue too technical for our team to tackle.

Topics: Government Regulations, Export & Import