Source: https://public-library.safetyculture.io/products/itar-compliance-checklist
Timestamp: 2020-02-26 23:19:45
Document Index: 743930524

Matched Legal Cases: ['§ 122', '§ 130', 'art 130', 'art 124', 'art 124', 'art 129', 'art 129', '§ 129', 'art 129', '§ 126', '§ 120', '§ 126', '§ 125', '§ 123', '§ 120', '§ 124', '§ 120']

ITAR Compliance Checklist - SafetyCulture
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Use this comprehensive checklist to conduct annual compliance audits and detect ITAR non-compliance based on export clearance requirements, ITAR-controlled technical data, use of ITAR exemptions, and more. This 60-item checklist has been designed for compliance officers to easily determine ITAR compliance based on 26 categories, including registration, licenses, and voluntary disclosure.
Has the company properly determined if its products being exported are on the U.S. Munitions List (“USML”) and subject to ITAR?
Has the company determined the proper classification for the product under the Export Administration Regulations (“EAR”)?
This could be under the 600 Series on the Commerce Control List (“CCL”) under Export Control Reform, under another CCL category or EAR99. If the company is not certain of the jurisdiction of a particular product it can submit a commodity jurisdiction request to DDTC.
Are any items listed as “Significant Military Equipment” and therefore subject to heightened ITAR requirements?
Has the company checked to see if jurisdiction for the item has been transferred to the Bureau of Industry and Security (“BIS”) under Export Control Reform?
Has the company maintained adequate records of the basis of its classification for each of its products?
Has the company complied with the ITAR recordkeeping requirements as set forth at 22 CFR § 122.5?
Is an export license required for a transaction?
If the shipment is to foreign subsidiaries or foreign offices of the company, an export license must still be obtained unless an exemption applies.
Export Licenses For Exports of Defense Articles
If an export license is required for a transaction, has the company obtained the license (e.g. DSP-5, DSP-6, DSP- 73, DSP-74)?
Has the company complied with the terms, conditions, and provisos set forth in the license?
ITAR–Controlled Technical Data and Software
Has the company disclosed ITAR-controlled technical data to Foreign Persons in the U.S. (including to employees) with a license or applicable exemption?
Has the company transferred technical data regarding ITAR-controlled items with a license or applicable exemption to 1) Foreign sales agents or marketing intermediaries; 2) Foreign prospective customers as part of marketing proposals; 3) Prime or subcontractors, suppliers, program partners; and 4) Persons in trade shows, marketing presentations?
Has the company transferred ITAR-controlled technical data to company employees who are Foreign Persons specifically authorized in the company’s Technical Assistance Agreements or other DDTC authorizations? (This includes in both foreign offices and in U.S. offices.)
Have company employees taken ITAR-controlled technical data in overseas travel, including in documents, laptop computers, PDA’s, iPhones, iPads and similar devices with a license?
Has the company NOT posted ITAR-controlled technical data or software on websites, chat rooms or transferred such items to Foreign Persons through e-mails, text messages, e-mail attachments, faxes, videos, telephone calls or other electronic communications?
Has the company performed any services for Foreign Persons related to any items on the USML, or items within the definition of Defense Services, with a Technical Assistance Agreement (“TAA”) or other applicable agreement approved by DDTC? (This includes services performed in the U.S. and overseas.)
Has the company performed services for a foreign military organization or foreign defense industry company in connection with an item regulated under the EAR?
Will the company be performing services for foreign military customers in connection with the sale of items subject to EAR?
Imports of Defense Items
Has the company imported any items on the USML in temporary import transactions or on the USML in permanent import transactions with a license?
Were all aspects of the import transaction within the terms, conditions, and provisos of such license?
Is the company registered with DDTC as a manufacturer and/or an exporter?
Has the company notified DDTC within 5 days of changes of the information set forth in its Registration Statement?
Does the company engage in brokering activities that require the company to register as a broker?
Debarred Party List Review
Has the company conducted reviews of all parties to its transactions involving ITAR-controlled items to verify that such parties are not listed on DDTC’s Debarred Parties List?
Has the company complied with the export procedures for its exports of ITAR-controlled hardware?
Has the company complied with the export procedures for exports of ITAR-controlled unclassified technical data?
Has the company complied with the export procedures for the performance of Defense Services?
Reexports and Retransfers
License/Agreement Administration
Has the company followed the requirements for the proper administration of licenses and agreements?
Has the company exported, reexported or retransferred an item that incorporates ITAR-controlled parts, components, attachments or accessories or is based upon ITAR-controlled technical data?
Reports For Sales Commissions, Fees and Political Contributions
Has the company or its Vendors (as defined at 22 CFR § 130.8) paid or offered to pay sales fees or commissions in connection with the sale of ITAR-controlled items in excess of $100,000, or political contributions in excess of $5,000?
Determine if the company is required to file the requisite reports with DDTC and comply with the other requirements
under 22 CFR Part 130.
Manufacturing License Agreements and Distribution Agreements
Is the company licensing ITAR-controlled technical data to permit the manufacture overseas of an item on the USML?
The company will most likely be required to enter into a Manufacturing License Agreement (“MLA”) approved by DDTC unless an exemption applies. See 22 CFR Part 124.
Has the company operated within the terms and conditions set forth in such agreements?
Has the company filed its annual reports with DDTC related to operations under the MLA?
Has the company maintained records related to its manufacturing of ITAR-controlled products as required under the MLAs?
Is the Company establishing a warehouse or distribution point abroad for defense articles exported from the U.S. for subsequent distribution to entities in a sales territory approved by DDTC?
The Company will most likely be required to enter into a Distribution Agreement (“DA”) approved by DDTC unless an exemption applies. See 22 CFR Part 124.
Has the company filed its annual reports with DDTC related to operations under the DA?
Has the company maintained records related to its manufacturing of ITAR-controlled products as required under the DAs?
Has the company engaged in “brokering” activity as defined at 22 C.F.R. Part 129?
Has it registered as a broker with DDTC?
has it obtained the requisite licenses, filed its annual reports, and complied with the other requirements under 22 CFR Part 129?
If the company retains third parties to engage in “brokering activity” on behalf of the company as defined in § 129.2(a) and (b), have such third parties registered with DDTC under 22 CFR Part 129?
Has the company relied on exemptions from requirements under ITAR?
Has the company complied with all of the applicable conditions for use of such ITAR exemptions?
Has the company maintained adequate records of its reliance on the exemptions in specific transactions as required under ITAR?
Proscribed Countries, Significant Military Equipment and Major Defense Equipment
Has the company engaged in any unauthorized transactions involving ITAR-controlled items with any of the “§ 126.1 Proscribed Countries”?
The company is required to report such transactions to DDTC.
Special heightened restrictions exist under ITAR for transactions involving: (i) the “proscribed countries” set forth at 22 CFR 126.1, including China (and will be subject to a policy of denial for license applications); (ii) items that are designated on the U.S. Munitions List as “Significant Military Equipment” (See 22 CFR 120.7); (iii) Major Defense Equipment (See 22 CFR § 120.8); and (iv) classified technical data and services (See USML Category XVII – Note for classified technical data the company will be subject to requirements under ITAR as well as under NISPOM).
Is the company relying on the exemption for Foreign Military Sales transactions set forth at 22 CFR § 126.6 (c)?
Has the company complied with all of the conditions applicable to the use of such exemption?
The company will be required to obtain a license or other authorization from DDTC unless another exemption applies.
Classified Defense Articles and Technical Data
Have the company’s exports of classified defense articles and technical data complied with the provisions of 22 CFR § 125.3 and 125.9, including use of DSP-85, as well as the NISPOM?
Classified articles, technical data and defense services not otherwise enumerated are listed on the USML under Category XVII
Obligations In Working With Subcontractors and other Program Partners
Will the Company be working with subcontractors, teaming partners or other independent parties in the transaction?
The company should coordinate with such parties regarding ITAR compliance in performing the transaction. Prime contractors are advised to verify that subcontractors are conducting their operations involving the transaction in compliance with ITAR requirements, including complying with registration requirements, obtaining licenses and TAA’s, reporting and recordkeeping requirements.
Congressional Notification For Defense Articles and Agreements
Has Congressional Notification been provided in connection with exports of defense articles that exceed the threshold amounts set forth at 22 CFR § 123.15, or major defense equipment as defined at 22 CFR § 120.8?
Has Congressional Notification been provided for TAA’s and MLA’s for manufacturing abroad defense items classified as Significant Military Equipment as set forth in 22 CFR § 124.11?
Parts and Components – Definition of “Specially Designed”
For parts, components, attachments, and accessories that are still covered under USML “catch-all” provisions following Export Control Reform, do such items fall within the definition of “Specially Designed” as set forth at 22 CFR § 120.41?
ITAR Items Acquired In Mergers and Acquisitions
Is the company undertaking acquisition transactions?
A common entry point for ITAR-controlled items into a company is through mergers and acquisitions. If a company acquires another company and the target company has items in its possession that are on the USML (including in the form of finished products, parts and components, research and development, inventory, or other items elsewhere in its supply chain), upon consummation of the acquisition the acquiring company will own the USML items and be subject to ITAR controls. This can occur regardless of whether the acquisition is structured as the purchase of stock, purchase of assets or merger. (In addition, if the target company has committed ITAR violations prior to the acquisition, the acquiring company could step into the target company’s shoes and become liable for such violations if proper precautions are not taken.)
Conduct detailed ITAR due diligence review of the target company prior to the acquisition to ascertain if there will be any impact on the acquirer related to ITAR following the completion of the acquisition transaction.
Procedure To Limit Illegal Diversion, Transshipment and Reexports
If a violation or possible violation has occurred, has the company considered submitting a voluntary disclosure to DDTC to reduce or mitigate potential penalties and eliminate past compliance risks?