This blog provides a comprehensive overview of International Traffic in Arms Regulations (ITAR) compliance, including what it means for your organization, experts' thoughts and recommendations, frequently asked questions, and more.
What is ITAR Compliance?
ITAR compliance is compliance with the International Traffic in Arms Regulations (ITAR) which controls the export and import of defense-related articles and services on the United States Munitions List (USML). According to the U.S. Government, all manufacturers, exporters, and brokers of defense articles, defense services, or related technical data must be ITAR compliant. Therefore, more companies are requiring their supply chain members to be ITAR compliant as well.
For an organization involved in the manufacturing, sale, or distribution of goods or services covered under the USML, or a component supplier to goods covered under the United States Munitions List (USML), the stipulation or requirement of being “ITAR certified (compliant)” means that the organization must be registered with the State Department’s Directorate of Defense Trade Controls (DDTC) if required as spelled out on DDTC’s website. Additionally, the company must understand and abide by the ITAR as it applies to their USML-linked goods or services. The organization itself is certifying that it operates in accordance with the ITAR when it accepts being a supplier for the USML prime exporter.
In other words, organizations must register with the DDTC and know what is required of them to be ITAR compliant, therefore certifying that they possess that knowledge.
What Does ITAR Compliance Mean for My Organization?
Overall, it is important to understand that registering with the DDTC to sell your products or services in the ITAR industry is not enough; you must be sure not to violate ITAR compliance regulations. The expectation is that complying organizations' employees are educated and trained in ITAR regulations. Keep in mind that ITAR violations may result in criminal or civil penalties, being barred from future exports, and/or imprisonment, including:
- Civil fines as high as $500,000 per violation
- Criminal fines of up to $1,000,000, 10 years imprisonment, or both per violation
ITAR Compliance and Technology Companies
As an important U.S. export control law, the ITAR affects the manufacturing, sale, and distribution of technology. The goal of the legislation is to control access to specific types of technology and their associated data. Overall, the government is attempting to prevent the disclosure or transfer of sensitive information to a foreign national. As a result, ITAR compliance can pose challenges for global corporations, since data related to specific technologies may need to be transferred over the internet or stored locally outside of the United States to make business processes flow smoothly. The responsibility lies with the manufacturer or exporter to take the necessary precautions and steps to certify that they are, in fact, meeting ITAR compliance requirements.
Specifically, ITAR [22 CFR 120-130]:
- Covers military items or defense articles
- Regulates goods and technology designed to kill or defend against death in a military setting
- Includes space-related technology because of application to missile technology
- Includes technical data related to defense articles and services
- Involves strict regulatory licensing and does not address commercial or research objectives
Updates to ITAR Compliance
Like other laws that regulate sensitive data, ITAR is regularly updated and refined based on expert and industry feedback. The following are a few examples of updates from the past several years particularly relevant to ITAR-compliant organizations:
90 FR 5594 - Effective 9/15/2025
As an ongoing part of the Export Control Reform efforts, this interim final rule ensures that the USML only includes items that warrant ITAR control, removing commercially available items, adding new items that do, and clarifying some specific entries. This targeted approach directly affected what items are subject to ITAR.
90 FR 29720 - Effective 7/7/2025
This final rule updates the ITAR with respect to certain countries. It is a significant change as it officially recognizes new NATO members (Finland and Sweden) and amends other country-related regulations to align with recent United Nations Security Council resolutions (UNSCRs).
89 FR 66210 - Effective 9/16/2024
This rule significantly expanded the definition of "activities that are not exports, reexports, retransfers, or temporary imports." This provides greater clarity and flexibility for the movement of defense articles in specific scenarios, such as during deployments or training exercises by authorized foreign armed forces.
89 FR 67270 - Effective 9/1/2024
Arguably the most significant recent update to ITAR, this interim final rule created a broad exemption for defense trade and cooperation between the United States, Australia, and the United Kingdom. This rule substantially reduces the need for licenses and other authorizations for certain defense articles and services traded between authorized users in these three countries. This new exemption is located at ITAR § 126.7.
88 FR 39323 - Effective 6/15/2023
As one of the first rules released in relation to the State Department's revision project, this imposed a debarment on individuals convicted of violating the Arms Export Control Act (AECA). It establishes a presumption of denial for licenses or other approvals involving such individuals which, along with statutory debarment, effectively prohibits them from participating directly or indirectly in any activities that are regulated by the ITAR. Reinstatement after the three-year period is not automatic, and in all cases, the debarred person must submit a request to the Department of State for approval before engaging in any activities subject to the ITAR.
Data Security Recommendations for ITAR Compliance
Now that you know the significance of ITAR compliance and the penalties for failing to comply, it is important to understand how to secure your ITAR-regulated data. While all organizations will have different data security requirements, the following are considered general best practices to follow in securing ITAR-regulated data:
- Maintain an information security policy
- Build and maintain a secure network by installing and maintaining firewall configuration to protect data
- Avoid the use of vendor-supplied passwords and other security defaults
- Assign a unique ID to each person with computer access
- Regularly test security systems and processes
- Protect sensitive data with end-to-end encryption
- Regularly monitor and test networks
- Implement strong access control measures
- Track and monitor all access to network resources and sensitive data
- Maintain a vulnerability management program
- Implement measures to prevent the loss of ITAR-controlled data
The above list is not exhaustive but is meant to provide a starting point for securing sensitive data and maintaining ITAR compliance. By following and adopting these measures, your organization can ensure that ITAR data is still accessible while staying protected against loss or unauthorized access.
Experts Weigh in on ITAR Compliance
Here’s a look at what the experts have to say about ITAR compliance:
1. Certification is a myth.
“Many have heard the term ‘certified’ in relation to ITAR. In reality, there is no such thing as being ITAR certified. There is only a regulatory requirement to be registered and a company’s obligation to be compliant. The confusion comes when you receive a letter from your customer asking you to ‘certify’ that your business is ITAR compliant. What they are really asking is, ‘Are you registered for ITAR and do you have an established compliance program with all required controls in place?’”
— Mark Bleckley, Associate Director - Van Andel Global Trade Center
Read more: What It Really Means to be ITAR Compliant: Why You Should Stop Saying You Are ITAR Certified
2. Classify your sensitive ITAR data.
"Classifying items under the USML and CCL requires a thorough understanding of the regulations and the specific criteria outlined in each list... Seek advice from export control experts or legal professionals who specialize in this area. They can provide guidance on interpreting the lists, understanding the criteria, and determining the appropriate classification."
— Darren Osborne, President - Govology.com; Former Counselor and Program Manager - APEX Accelerator Procurement
With this in mind, however, classifying sensitive data is often a task much easier said than done — even with expert help. Ergo, implementing a data classification solution for ITAR compliance that enables the efficient and secure sharing of sensitive information is paramount. Fortra's Data Classification identifies ITAR data, heightens awareness around how it is stored and transmitted, facilitates streamlined auditing, and enhances your organization's existing security measures.
3. Use a checklist.
“An ITAR compliance checklist is a tool used by arms suppliers to easily determine if they are ITAR compliant, establish an identification system for ITAR-controlled products, and implement an effective ITAR compliance program.”
— Jona Tarlengco, Researcher - Safety Culture
Read more: Top 3 ITAR Compliance Checklists
Following these tips and best practices will ensure ITAR compliance, even as the regulations are updated and refined.
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