Export of defense-related articles and services is one of the few areas in the manufacturing sector that is not only heavily regulated, but infamous for its heavy fines and penalties for export violations. An export control violation can lead to serious penalties, damaging publicity, and the possible loss of exporting privileges. As a result, executives realize that export control compliance is essential to any corporate risk management strategy.
The International Traffic in Arms Regulations (ITAR) stipulates that defense articles (which includes the associated documentation) mentioned in the United States Munitions List (USML) may not be sold to foreign (non-US) persons, unless explicit authorization from the Department of State is received or an exemption is invoked. The Export Administration Regulations (EAR) spells out requirements for the export of dual-use equipment, including requirements for controlling access to related documentation.
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