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International Traffic in Arms Regulations, or ITAR is an important section of regulations under Title 22 of the Code of Federal Regulations. ITAR regulations focus on the import and export controls for products and services which are defense related. These regulations are yet another layer of our nations network dedicated to the protection of US national security and foreign policy.
Typically, products and services subject to ITAR regulations are military products and services. However, the line between military products and services and commercial products and services has blurred. This is true because of the endless list of technologies that began as military and were incorporated into our everyday commercial usage products. This graying of the lines can make it more difficult to determine applicability. Items appearing on the USML (U.S. Munitions List) will be subject to ITAR regulations. Defense services will be subject to ITAR regulations. Some technical data and software will be subject to ITAR regulations.
When products, services and technical data are subject to ITAR regulations, it is imperative to realize that these items CANNOT be exported in the conventional sense. Exporters of items subject to ITAR regulations must first register with the U.S. Department of State. Additionally, an export license MUST be obtained for any items appearing on the USML.
Note that failure to be in compliance with ITAR regulations can be catastrophic to companies. The nature of these violations leads to rather extreme penalties at the disposal of the enforcement community. Criminal violations can lead to 10 years imprisonment and up to $1,000,000.00 per violation. Because of this, it is extremely important for US companies to understand whether their products, services and technical data/software is subject to ITAR regulations.
JAS USA Compliance Team is well versed in ITAR regulations. Our experience in supporting our own internal vertical JAS GLS (Government Logistics Services) has allowed us to be on the cutting edge of this niche market sector. Need help? Contact us today!
An announcement was published on July 29, 2020 that user fees within the Consolidated Omnibus Budget Reconciliation Act (COBRA) will take place effective October 1, 2020. The minimum merchandise processing fee will change from $26.79 to $27.23 and the maximum will change from $519.76 to $528.33. The ad valorem rate of 0.3464% will not change. Additional user fees are also increasing.
The Office of the U.S. Trade Representative has announced that 14 products from the Section 301 exclusion list scheduled to expire July 31st will continue to be excluded through December 31, 2020. Additionally, there are other products on the list that expired on July 31st. Comments are currently being accepted for three sets of exclusions that are scheduled to expire October 2, 2020. Comments can be submitted by clicking HERE
On July 14, 2020, the President signed an Executive Order that requires Hong Kong to be treated as the People’s Republic of China (PRC) for the purposes of the Arms Export Control Act (AECA). Hong Kong is now considered to be included in the entry for China under section 126.1(d)(1) of the ITAR and therefore subject to a policy of denial for all transfers subject to the ITAR. The U.S. government is taking this action because the Chinese Communist Party has fundamentally undermined Hong Kong’s autonomy and thereby increased the risk that sensitive U.S. items will be illegally diverted to the PRC.