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Export Compliance: Ask The Experts

 

 

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We intend to export XI(d) technical data loaded onto a COTS computer (classified as 4A994). Should the computer be classified as 3A611.x because it has been modified by the ITAR-controlled data?

If the technical data is merely loaded onto a standard computer that has not otherwise been modified,  the computer does not become 3A611.x. The computer retains its original EAR99, 4A994 or 4A003 classification. The ITAR technical data retains its XI(d) classification.


Are there any specific instructions on scrapping ITAR controlled items in the ITAR regulations? Like, "must not be recognizable as the original item?" In our case, our scrap company is in New Hampshire; they grind it up and sell as scrap. I was wondering if there was an ITAR reference that could be incorporated into procedures.

There are no ITAR issues if there are no exports. The ITAR does not address your issue directly.  
 
The ITAR does not control something that is not on the USML. So, I assume you are looking at what needs to be done so an item on the USML becomes something that is no longer an item on the USML. First, I will say it depends on the item. While I do not know the exact details of the grinding process, many USML items (examples, pump, printed circuit board, electronic component, radio, rifle, night vision goggles) that are ground up into tiny pieces cease to be USML items. On the other hand, if a certain powder or propellant is USML controlled based on its chemical nature/performance/properties, then I do not think grinding it up would cause it to cease to be a USML item.


I want to establish a transit stock in Germany for my potential customers. I will export software and IT accessories and keep it on my transit stock, until it's delivered to the end customer in former soviet countries. From an export compliance perspective, I do not know my end user when exporting to Germany and just making stock building. No BIS authorization is required when the "ship to" is Germany. But do I still need to report CCL items when they go to other countries from Germany?

Generally speaking, the same US requirements apply to shipping a US item from Germany to X as would apply when shipping the same item from the US to the same X.  So, for example, if I need an export license to export my item from the US to the Crimea region in Ukraine, I need a reexport license to send the same item from Germany to the Crimea region of Ukraine.


I am the owner of a small, contract machine shop located in the US. All my employees are US citizens. We build to customer drawings, many of which fall under ITAR restrictions. My customer assembles my components, along with others we do not supply, into complicated hydraulic valves and then sells them to a “Prime” defense contractor. A local businessman, who is a US citizen, approached me and offered to buy my business. He is a minority shareholder in a local corporation, the majority shareholder is a resident of India, and is not a US citizen. The non-US citizen would not have any responsibilities at the shop, he is basically an investor. My company is not currently ITAR registered. What steps would I have to take to sell my business and ensure ITAR compliance?

If you build ITAR controlled items to customer's ITAR documents and specs, you must register with DDTC per ITAR Part 122. Once registered, ITAR 122 requires that you notify DDTC prior to selling your business to a foreign person.