The International Traffic in Arms Regulations control the export of defense articles, defense services, and related technical data. Unlike most compliance frameworks, ITAR violations carry criminal penalties—including prison time and fines up to $1 million per violation. Civil penalties reach $500,000 per violation.
For companies handling defense-related technology, ITAR creates specific requirements around who can access technical data, where that data can be stored, and how it can be transmitted. This guide covers what ITAR actually regulates, registration requirements, technical data handling, cloud computing considerations, and practical compliance steps.
ITAR governs three categories: defense articles, defense services, and technical data related to those articles and services. The regulations implement the Arms Export Control Act, with the State Department’s Directorate of Defense Trade Controls (DDTC) serving as the regulatory authority.
Defense articles are items specifically designed, developed, configured, adapted, or modified for military application. The U.S. Munitions List (USML) enumerates controlled items across 21 categories.
Items not on the USML may still be controlled under the Export Administration Regulations (EAR) administered by the Commerce Department. Jurisdiction determination—whether an item falls under ITAR or EAR—is a critical first step.
Defense services include furnishing assistance (including training) to foreign persons in the design, development, engineering, manufacture, production, assembly, testing, repair, maintenance, modification, operation, demilitarization, destruction, processing, or use of defense articles.
Providing technical assistance to foreign nationals—even employees in the U.S.—can constitute a defense service requiring authorization.
Technical data includes information required for the design, development, production, manufacture, assembly, operation, repair, testing, maintenance, or modification of defense articles. This encompasses blueprints, drawings, photographs, plans, instructions, and documentation.
Critically, technical data also includes software directly related to defense articles. Source code, object code, and related documentation for ITAR-controlled systems fall under technical data restrictions.
What’s not technical data: General scientific, mathematical, or engineering principles taught in schools. Marketing materials. General system descriptions. Basic operational information available to the public.
ITAR’s “deemed export” provision creates obligations that catch many organizations off guard. Releasing or transferring technical data to a foreign person in the United States is “deemed” an export to that person’s country of nationality.
If your company has ITAR technical data and employs foreign nationals, those employees cannot access that data without proper authorization—even if they’re sitting in your U.S. office with security clearance for other programs.
This affects hiring decisions, access controls, and system architecture. Organizations must either obtain licenses for foreign national access, exclude foreign nationals from ITAR programs, or implement technical and physical controls preventing access.
Most organizations handling ITAR data with foreign national employees implement Technology Control Plans (TCPs). These plans document how the organization will prevent unauthorized deemed exports through physical access controls, network segmentation, personnel controls, and training.
Before engaging in any manufacturing, exporting, or brokering of defense articles or services, organizations must register with DDTC. Registration is mandatory—it’s not optional and doesn’t depend on whether you actually export anything.
Any U.S. person who engages in the business of manufacturing or exporting defense articles or furnishing defense services must register. This includes manufacturers who only sell domestically (because you’re still “manufacturing” defense articles), companies providing defense services to foreign persons, and brokers facilitating defense trade.
Registration requires submitting DDTC Form DS-2032 with supporting documentation, paying registration fees (currently tiered based on business activities), undergoing DDTC review and approval, and renewing annually.
Registration doesn’t authorize exports—it establishes your eligibility to apply for export licenses.
Fees depend on registration tier. As of current rates, new registrations start around $2,250 annually, with higher tiers for more complex activities.
IT GOAT provides specialized support for organizations handling ITAR-controlled technical data.
Compliance assessments evaluate your current IT environment against ITAR requirements, identifying gaps in access controls, data handling, and cloud architecture.
Technology Control Plan development documents controls preventing unauthorized access by foreign nationals, supporting deemed export compliance.
Cloud architecture designs and implements ITAR-compliant cloud environments using authorized services and appropriate access controls.
Access management implements technical controls limiting ITAR data access to authorized U.S. persons, including network segmentation, identity management, and audit logging.
Email and collaboration security deploys ITAR-compliant communication tools that protect technical data in transit and at rest.
Exporting defense articles, providing defense services, or disclosing technical data to foreign persons requires authorization. Several authorization types exist.
The standard license for permanent export of defense articles to foreign end-users. Applications specify the items, quantities, end-users, and end-use.
Authorizes temporary export of defense articles that will return to the U.S.—for demonstrations, trade shows, repairs, or similar purposes.
TAAs authorize the provision of defense services or disclosure of technical data to foreign persons. Required when you’re providing technical assistance, training, or sharing technical data with foreign entities.
MLAs authorize foreign manufacture of defense articles. Required when licensing foreign companies to produce ITAR-controlled items.
Certain exports qualify for exemptions from licensing requirements. Common exemptions include exports to Canada (with conditions), certain government-to-government transfers, and public domain information. Exemptions have specific requirements—misapplying an exemption creates the same liability as unlicensed export.
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Effective ITAR compliance requires systematic attention to registration, classification, authorization, and controls.
Determine which items, services, and data your organization handles that fall under ITAR. This requires reviewing USML categories, analyzing technical specifications, considering item history and modifications, and when uncertain, obtaining DDTC commodity jurisdiction determinations.
Maintain documentation supporting classification decisions.
Register with DDTC before manufacturing or exporting defense articles or providing defense services. Build registration renewal into your compliance calendar.
Identify employees who need access to ITAR technical data. Verify citizenship/nationality and authorization status. Implement Technology Control Plans if employing foreign nationals. Document access authorization and train personnel on handling requirements.
Control physical access to areas where ITAR data is stored or processed. Implement visitor controls for facilities handling controlled information. Mark controlled materials appropriately.
Implement access controls limiting technical data access to authorized personnel. Encrypt data at rest and in transit. Use ITAR-compliant cloud and email services. Maintain audit logs of access to controlled data. Establish secure disposal procedures for controlled materials.
Establish procedures for processing export requests and determining authorization requirements. Maintain records of all exports, licenses, and agreements. Implement screening against denied parties and embargoed destinations.
Train relevant personnel on ITAR requirements, classification, handling procedures, and reporting obligations. Document training completion and refresh periodically.
Conduct regular audits of ITAR compliance. Monitor for unauthorized access or transmission of controlled data. Review cloud and IT systems for compliance with handling requirements.
Possibly yes. DDTC registration is required for manufacturers of defense articles even if you only sell domestically. Also, “deemed exports” to foreign national employees can trigger ITAR obligations without any physical export.
ITAR (State Department) controls items on the U.S. Munitions List—items specifically designed for military application. EAR (Commerce Department) controls dual-use items with both commercial and military applications. Jurisdiction determination identifies which regime applies to specific items.
Not without authorization. A Technical Assistance Agreement or other authorization must be in place before foreign nationals can access ITAR technical data—even if they’re permanent residents or employees with security clearances for other programs.
Generally no. Standard cloud services don’t provide the U.S.-only data residency and U.S.-person-only access required for ITAR compliance. ITAR-compliant cloud offerings (AWS GovCloud, Azure Government, etc.) are necessary for ITAR technical data.
Consider voluntary disclosure to DDTC. Voluntary disclosure demonstrates good faith and typically results in reduced penalties. Consult with legal counsel to assess the violation and determine appropriate response.
ITAR requires retention of records related to exports, manufacturing, and technical data disclosures for five years from the date of the transaction. Some organizations retain longer based on contract requirements or litigation considerations.
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ITAR controls the export of defense articles, services, and technical data—with criminal penalties for violations, including:
These requirements apply to manufacturers of USML items, providers of defense services, and any organization with ITAR technical data or foreign national employees who might access it.
Criminal penalties reach $1 million and 20 years imprisonment. Civil penalties reach $500,000 per violation regardless of intent.
Work with IT GOAT to implement ITAR-compliant infrastructure and Technology Control Plans.