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Frequently Asked US Export Controls Questions

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View past FAQ's in our 2010 Archive

What does EAR stand for?

Export Administration Regulations.

What does ITAR stand for?

International Traffic in Arms Regulations

I am just exporting a pocket calculator, does the EAR say I have to get a license?

An export license may be required if any of the following are present in your transaction:

  • the item you are exporting has an ECCN that requires a license for the country OR
  • any party in the transaction is on a US prohibited parties list or denial lists OR
  • the item will be used in a prohibited nuclear, missile, or chemical/biological weapons activity OR
  • your export is to Cuba, Iran, North Korea, Sudan or Syria OR
  • you are exporting to a military end-use in China and your item is in an ECCN that requires a license for a military end-use in China OR
  • there is something suspicious about the transaction that raises a red flag that one of the above may be true

How can I tell if my item is covered by the EAR or the ITAR or both?

Generally an item is never covered by both. The first step is to go to the United States Munitions List (USML) if the USML describes your item then it is under ITAR jurisdiction, even if it is described in the Commerce Control List.

Do you have a list of export acronyms?

We offer a complete list of export acronyms which is also provided in our comprehensive seminar manuals. Seminar participants receive this manual and we also sell our manuals to individuals who are unable to attend our live or online EAR and ITAR training.

We have an affiliate company in Switzerland that is licensed to produce and sell one of our proprietary alloys (aluminum). Our company in the US submitted a CJ request for this alloy and it has been deemed an ITAR Controlled item under USML Category XIII (e).

Our Switzerland affiliate wants to produce this alloy and sell it to other foreign countries (not to US) according to US MIL-DTL-32341 specifications. Can our Swiss company do this? Thanks in advance for your clarification regarding this question.

The use by a foreign person outside of the United States to produce an alloy according to US MIL-32341 specifications that are freely available to any member of the public without restriction does not require ITAR authorization.

If you provide assistance to a foreign person (e.g., your Switzerland affiliate) to produce a US origin or non-US origin "defense article," then most likely you would be providing an ITAR "defense service" which normally requires ITAR authorization.  If you export "technical data" to the foreign person you normally would have to get ITAR authorization.

The ITAR definition of "technical data" excludes a mil spec that is freely available to anyone without restriction (e.g., over the internet).  However, if you help someone use such a mil spec to produce a US or non-US origin defense article, you likely are providing an ITAR "defense service" which requires authorization.

What are the licensing requirements for a foreign national of an international company with business units in the US for which the foreign national will analyze non-licensable EAR controlled items using a licensable ITAR controlled item at the US facility?

Will this require an export license or is it exempt from licensing?

I am not sure if I understand exactly everything going on here.  A human "foreign person," as defined by the ITAR, will have access to EAR items that do not require a license for that human's country and will have access to an ITAR "defense article" in the United States. 

The question is, is there an ITAR "export" here.  Go to ITAR 120.17 for the definition of "export."  I see two possible issues: 

First, will the foreign person's access to the "defense article" result in the export of "technical data" to the foreign person?  So, will the foreign person get technical data in written, electronic or oral form related to the defense article, and will the foreign person be able to absorb or see technical data as a result of being able to use the defense article.  (Note:  Any information that is ITAR "public domain" is not ITAR "technical data" so if the foreign person only absorbs "public domain" information there is not an ITAR export of technical data.)

Second, is the foreign person receiving a "defense service" (see ITAR 120.9) while in the United States.  Even if there is no export of technical data (for example, all of the information is "public domain"), if the US company provides assistance related to the operation of a defense article, then the US company is providing a defense service.

If there is a technical data export or a defense service issue, you need ITAR authorization.  There is not enough information in your question to tell you whether you are eligible to do it under an ITAR exemption or whether you would have to get DDTC to approve a license or agreement for this activity.

In regard to 3rd country nationals to a Training Assistance Agreement I understand the limits, provisos, and unique issues of not only nationalities, but place of birth as well.

My question is for the Employees of Non-US End-Users and Consignees to a Training Assistance Agreement.

1. For instance if a United Arab Emirate National is a Consignee nationality authorized by the TAA to assist in an export…..Does it matter if the individual was born in a proscribed country?

2. If so, What are the requirements for ITAR compliance?

Thanks in advance for your time and consideration. Any information you can provide will be greatly appreciated.

The ITAR does not tell you how to determine the country or countries you should attribute to a specific "foreign person."  The ITAR does not say you should use country of birth or citizenship.  DDTC has refused to use the ITAR to address this issue.

In various places outside of the ITAR DDTC has said things such as country of birth is a factor when considering nationality.  That is not definitive and is not a definition.  For example, if a person is born in the PRC and leaves at age of one month and never returns, is that person a PRC national?  Or what if a person was born in the UK and has UK citizenship but visits the Chinese Army in China every other month? 

So, because DDTC will not give you an ITAR definition, that means your company, like every other company, should determine who you are going to determine what country to attribute to a human who is a "foreign person."  Some companies just look at passport/citizenship and other companies look at passport/citizenship and country of birth, other companies look at passport/citizenship and then determine on a case-by-case basis when country of birth should influence the decision.  Some companies are in countries where it is illegal to ask about a person's country of birth so they might not want to violate local laws in order to try to comply with a vague and intentionally undefined ITAR concept.

Your company should decide how it wants to handle this.  I find many companies have a policy of looking at citizenship/passport and do not ask for other information.  That is reasonable and defend-able.  If DDTC ever contacts your company individually and tells you how it wants your company to deal with this, you should do what DDTC says unless you can negotiate something else.

So, finally, to answer your question, if your company policy is to use country of birth, then a UAE citizen who was born in the PRC should be treated as being two countries, the UAE and the PRC.  If the PRC is not approved under the agreement, that person may not be involved in the ITAR-controlled activities authorized by the agreement.

I would appreciate gaining more knowledge and know how of export compliance regulations to Monrovia, Liberia.

We are a manufacturing company of medical instruments which are classified as EAR99. We are interested in exporting to Liberia and have reviewed the SDN list, our potential customer is not listed.

Please point me in the right direction with regards to US compliance regulations and required documentation (i.e. commercial invoice, packing list, etc.)

You are on the right track.  The Export Administration Regulations (EAR) and the various regulations administered by the Office of Foreign Assets Control have primary jurisdiction over your transaction.  Download the free Export Compliance Dashboard at www.learnexportcompliance.com and it will direct you to those regulations.  Exports of EAR99 for final destination Liberia is not subject to significant US restrictions as long as none of the parties in the transaction are on any of the US denial lists (there are other lists in addition to the SDN list you mentioned).  You may access those lists on the Dashboard too.

Regarding export documentation, Part 758 of the EAR is a key place to look and also look at the Foreign Trade Regulations, which once again you may access on the Dashboard.

My question is that we have a lot of brokers that send us ITAR units, but we ship them back to the broker and then the broker ships them back to the customer that is foreign military. Do I need to have an exemption statement listed on their packing slips? If so, what exemption are they?

Before we can answer your questions we will need to know the following things:

1) What countries are the brokers in? USA

2) What does your company do with the units? REPAIR

3) When you say the brokers send the units to you do they always send them to you in the United States? YES

There are no ITAR requirements for transferring items to parties in the United States unless the party is a foreign government or its agents/representatives or unless you are transferring items to a party who is going to export them for you.  (I will assume you are caught by either of the exceptions I just mentioned.  Let me know if that is an incorrect assumption.)

So, when there are no ITAR requirements, you do not use an ITAR exemption when you transfer items to parties in the United States.  Even though there is no ITAR requirement, it might be a prudent policy and procedure to do one or both of these things even though they are not required by the ITAR:

1) Have a written agreement between you and each broker in which the broker acknowledges it is responsible for ITAR compliance specifically, and export compliance in general, for any items it receives from you and subsequently exports.  Include in the agreement a clause in which the broker agrees not to show you as exporter or USPPI on any document.

2) When you deliver ITAR items to a party in the United States, have a clear and obvious statement on the documents that accompany the items saying the items are controlled by the ITAR.

Is a company required to provide a report of exemptions?  I know reporting must be kept to monitor the # of shipments and ensure we are not going over the 24 max limit. If reporting is required, what data must be included on the report?

Generally you do not have to provide a report to DDTC when you use exemptions but you do have to keep records of all exports under an exemption.  Here are some key exceptions to that general rule:

--Certain exemptions specifically require a report of some sort.  The reporting requirements are specifically stated in the provisions of the exemptions.  For example, 123.16(b)(4) requires that the exporter make a specific certification/report to Customs, and the Canadian defense services exemption in 126.5(c) requires semi-annual report to DDTC.

--123.22(b)(3) describes certain reporting requirements for exports pursuant to an agreement (you use an exemption when you make an export authorized by an agreement) and exports pursuant to exemptions and licenses.

--When you export under an exemption pursuant to an agreement, the agreement itself or the provisos to the agreement may require some sort of reporting.

--123.22 also talks about AES filing requirements for exemptions.  (I am not sure if you consider filing AES to be a report.)

Can goods classified as SME use the Canadian exemption?   Cat. XII(a)  I've received two different answers from DDTC and the regs are not clear here.  But NGC put out an article on Canadian exemption which stated if your good was classified as SME you could not use CAN exemption. I need some clarification of the ITAR regs.

There are four separate Canadian exemptions, each with their own set of rules.  In certain cases, certain SME is eligible because that is what the ITAR says.  Here is the situation for each of the four Canadian exemptions:

Here is what the ITAR says.

126.5(a) Temporary Imports:  The defense articles have to be unclassified.

126.5(b) Permanent and Temporary Exports:  The defense articles that may not be exported under this exemption are those listed in (b)(1) - (b)(21)--none of those paragraphs exclude all SME.  126.5(b)(11) excludes Category XII(c) in certain cases but does not exclude Category XII(a).  126.5(b) says that non-transfer and use assurances are required for all SME exported under 126.5(b), so it is telling you if you export XII(a) to make sure you have that (and that also implies that certain SME is eligible).

126.5(c) Defense Services:  This exemption says it uses the same item exclusion list as in the export exemption in 126.5(b)(1) - (21).  There are a lot of additional restrictions on the data and defense services that are eligible.

126.5(d) Retransfer in Canada:  This exemption refers back to items eligible for export to Canada under the export exemption so it uses the same item based restrictions as the underlying export exemption.

 If a company does not bring goods into the USA under an ITAR exemption, in addition to filing a voluntary disclosure, I assume we would need an export license to export (return) the goods?

You would not do a normal voluntary disclosure in most cases. See http://www.pmddtc.state.gov/licensing/documents/WebNotice_TemporaryImportViolations.p

What requirements are needed to ship automation equipment from the USA to Europe (Poland Specifically)? What requirements need to be met?

Your question is too vague to answer. It is like saying, "My company makes automation equipment, how much tax do we have to pay?"

These things can cause there to be an export license requirement:

1) Is the item on a export control list?

2) Are any of the parties involved on a US denial list?

3) Will the item be used in a prohibited activity?

4) Are Cuba, Iran, Sudan, Syria or North Korea involved?

5) Is there anything suspicious about the transaction.

Seeking to export coated abrasives from the USA to Iran. Under the current administration, are there export controls or sanctions on this product?

Generally speaking all exports from the United States to Iran require a US export license and the government generally will deny applications for all items except, for example, for food and certain medical items. 

Also, the US imposes nearly the same rules on US origin products outside the United States being reexported from, for example, Canada, to Iran.  The US also imposes rules on non-US origin items that have US content or that were produced using US technology.

And, if you are a US person, you may not be involved in transactions with Iran or entities owned, controlled or acting on behalf of Iran.  For example, you may not approve or facilitate any transaction with Iran, even if the transaction is a shipment of German tables from Germany to Iran.

I am a UK citizen, living and working in the UK. I have recently started my own limited company, Coldharbour (registered in the UK), so that I can contract directly to a US Defense company as a Sales, Marketing and BD person for Europe and the Middle East. The company in question tells me that I must register with DDTC as a broker in order for them to raise the necessary export licenses (DSP-5 and, eventually, a TAA). My question is, do I really need to register?

Based on what you said, and lacking further details, it certainly sounds like you could be a "broker" under the International Traffic in Arms Regulations (ITAR).  If you are an ITAR "broker" you have to register and submit annual reports to the US Government.  In addition, certain "brokering activities" require prior US Government authorization or prior notification to the USG.  Check out ITAR Part 129 to see if you are an ITAR "broker" as the ITAR defines it.

Is it acceptable to use the 126.4(c) exemption when you are exporting ITAR controlled items to US Forces located in Afghanistan and Iraq?

The 126.4(c) exemptions says you may use it when you cannot get an approved export license in a timely manner.  Generally speaking, the State Department approves applications for US Forces in Iraq and Afghanistan in a couple of days so State generally thinks that you cannot use the exemption except in an extreme emergency.  See www.pmddtc.state.gov for guidance on how to apply for licenses for US Forces in Iraq and Afghanistan so you will get the expedited license processing.

If I understand export compliance and the ITAR, then if I use government standard and cleared top secret AES 128 encryption to send data to a database that is stored overseas so that I have top secret data at rest encryption, and I hold the encryption keys in the US. Am I still in ITAR compliance? According to Safe Harbor Provisions, lost encrypted data is not considered lost data. Therefore, data at rest encryption even on a server overseas is still in ITAR compliance. Is this correct?

The ITAR does not have words that support your position.

The ITAR definition of export in 120.17 says that "sending a defense article out of the US" is an "export."  ITAR controlled technical data is a defense article.  Nothing in the ITAR says that if you encrypt ITAR tech data it is no longer ITAR tech data, just like if you lock up a bomb in a box that is impossible to open, the bomb does not cease to be a defense article.  Nothing in the ITAR says that the definition of export does not apply to encrypted tech data.

Regarding your reference to Safe Harbor. etc., you are using non-ITAR rules and principles to determine the scope of ITAR jurisdiction, which is not recommended.

Now, I will say that the fact that ITAR tech data is encrypted is a factor that may mitigate against serious penalties in the case where your company violates the ITAR by inadvertently exporting encrypted technical data. 

But, I would not call Customs and State and tell them "Hey, I am about to export ITAR tech data that has been powerfully encrypted to a database overseas and you cannot stop me because it is not an "export" as defined in the ITAR."

What you might consider doing is sending a General Correspondence letter to State and ask State to give you a binding ruling on your question.  I hope you are successful.  Even more than that, I hope you will share the results with us.

If I am sending ITAR controlled material to a domestic location in the U.S. am I obligated to ask them who their end customer is? Are they obligated to tell me?

The ITAR does not require that you ask and it does not require that they tell you.

It is a good practice to either ask for that information or get the other party to agree in writing that they will comply with the ITAR as it related to the defense articles you send to them.  It is a good policy to always advise other US companies when you send them ITAR controlled "defense articles."  Another US company may have commercial or competitive reasons for not wanting to tell you who their customer is so telling them your items are defense articles and getting them to agree to comply is reasonable and is doing more that the ITAR requires.

If you suspect they are going to do something illegal, you should not proceed.

I work for a company that manufacturers product under 9A991. We have recently been bought by a foreign firm. What should be my next move in regards to TCP? We did not have a policy in place due to the fact that we had not employed a foreign person.

You did not tell us the ECCN for your technical data/technology so we have to answer this in a bit of an open ended fashion:

1) Determine the ECCN for all of your technical data/technology.  (I assume you do not have anything controlled by the ITAR.)

2) Determine if any of the ECCNS for your technical data/technology require an export license for:

    --The country in which the foreign firm that bought you is located, or

    --The nationality of any of the employees of the foreign firm.

3) If there are no instances of a license being required, then just train your foreign owner about issues related to reexporting your tech data/technology and issues related to release of to foreign nationals for which a license would be required.

4) If you find any instances where your tech data/technology requires a license for the country or the nationalities of any of the employees, put in place procedures in you US and foreign locations so that the foreign company/foreign nationals do not have access to license-required data.  This includes preventing access to data electronically via a server, email etc.  It also includes preventing access to tangible data on paper.  It also includes intangible access to data via oral disclosure in conversations or visual disclosure of data  during visits to your facility.   You should also do the things described in 3.

What is the State Department's (DDTC) rule/position regarding foreign national "domain administrators" (with system alerts in place to identify if they try to access or change security for ITAR secured files/employee access)?

I have not heard of a State Department official position--i.e., an official written interpretation of the ITAR signed by the DDTC Director.

According to the ITAR, an export occurs if you disclose or transfer technical data to a foreign person in the United States or abroad.  So, technically speaking, the fact that a foreign person could get ITAR tech data does not mean a violation has occurred--the violation occurs when your company actually transfers or discloses the tech data to the foreign person. 

It is also an export to send a defense article (which includes tech data) out of the US--it does not matter if a foreign person sees the data for that export to occur.

As a practical matter, it makes sense to put in place security measures so ITAR tech data does not leave the United States without approval and so that foreign persons do not get access to ITAR tech data without approval.  I would not want to have to defend my company if foreign persons or persons outside the United States can have access to tech data even if there is no proof that an actual export has occurred.  I prefer to have procedures in place that err on the cautious side on this point.

Our US owned small business utilizes sales representatives. We have identified a sales representative (defined as "broker" for the purpose of ITAR regulations) in India that we would like to utilize to sell our products (commercial and military applications). The "broker" is not a US person or located in a US jurisdiction. Are they required to register with DDTC as a broker?

DDTC wants that party in India to register if they are a "broker" of "defense articles" subject to ITAR jurisdiction.

My company is ITAR certified. We are doing ITAR work for another ITAR certified company. We need to send the material to another US company to complete one or more steps in the process. Is the third party company required to be ITAR certified?

I am not sure what you mean by "ITAR certified."  If you mean you sent your registration form and money into the State Department and State gave you your registration code, then your company is "registered."  Registration does not certify anything--it just means you filled out the registration form correctly and paid the correct amount of money as required by the ITAR. Similarly, when you send in your form and money to pay your federal taxes, you are not IRS certified.

 The ITAR requires that any company in the United States who exports OR manufactures "defense articles" has to register with State.  If a company is an ITAR “broker," it has to register as a broker, separately and in addition to the ITAR exporter or manufacturer registration.

I attended a seminar in Montreal last year and today my activities will include repairing items (EAR classified) which are in Brazil. I will send the materials from Brazil to the repair facility in the USA and I would like to learn more about the export license to return the repaired materials to Brazil. Is there any manual or website which explains this repair process for EAR items?

The first step is to determine the ECCN.  If the ECCN is eligible for NLR for Brazil, you may use NLR to send the items from the US to Brazil.  If the items are not eligible for NLR, then License Exception RPL would authorize the return of the items to Brazil in most cases.  Check EAR 740.10(b) for the details of RPL.

Is there a restriction on selling internet based radio devices to Indian customers? The frequency of operation will be in the UHF band. We have a customer who needs our radios and we intend to verify if we can ship the product to them. They are a robotics company and will use the radios to control their robots.

A US export license would be required if any of these issues are present:

  • The items are in ECCNs that require a license for the country or the items are on the US Munitions List
  • Any of the parties in the transaction are on a US prohibited parties list
  • The items are intended directly or indirectly for a prohibited nuclear, missile, or chemical/biological weapon related end use
  • Cuba, Iran, Sudan, Syria or North Korea are involved directly or indirectly
  • There is something suspicious about the transaction that indicates that the above might be true

Is it permissible to ship ITAR controlled and EAR controlled items in the same shipment? What are the advantages/disadvantages of "mixed" or "commingled" shipments?

It is possible to do it but it will complicate your export paperwork significantly.  If possible, I would avoid doing it.

What is the export code (ECCN) for rubber grommets? Can these be classified as EAR99?

Often, but not always, they are EAR99.   For example, if they are specially designed for something, they could have a different ECCN or be on the US Munitions List.

We have a customer who wants us to show we are ITAR registered and compliant and we have the registration code from the U.S. Department of State.  Is that code proprietary?  Can we forward that statement to the customer as proof?

State's guidance is that the code is proprietary to the registrant (http://www.pmddtc.state.gov/registration/registration_code.html), but it is really your call as to whether you want to share it or not. Someone with your code could use it to look up the status of certain pending cases you might have with State.

As an alternative to providing the code you could give the customer a copy of your most recent registration renewal letter from State with the code redacted. I think that would satisfy the vast majority of people.

Also, remember that being registered does not in and of itself demonstrate full compliance with the ITAR.

Do the same dual and third national restrictions apply to ITAR Controlled Data and Hardware if it is received under a DSP-5 or DSP-73 as opposed to a TAA?

The same principals apply to access to tech data exported under a DSP-5 or TAA.  Single country nationals who have only the same nationality as the country of the authorized recipient entity may have access to the tech data unless the approval authorizes other nationalities.

Other navigation direction finding equipment, airborne communication equipment is classified under the ECCN 7A994 on CCL along with the QRS11–00100–100/101. Does this mean that if the QRS is integrated into, and included as an integral part of a commercial primary or standby instrument system of the type described in ECCN 7A994, or aircraft of the type described in ECCN 9A991 it requires a license? It's impossible to find out if every single item classified under the ECCN 7A994 has or hasn't had a QRS sensor incorporated?

When the QRS-11 is in an item made outside of the United States and it meets these criteria in 734.4()(3)(1) - (iii), the non-US origin item takes on a US classification control level of 7A994 or 9A991. In other cases, the QRS-11 or a non-US item that incorporates a QRS-11 is controlled by the ITAR.

Here are the regs:

734.4(a)(3) There is no de minimis level for foreign made:
(i) Commercial primary or standby instrument systems of the type described in ECCN 7A994 on the  Commerce Control List (Supplement No. 1 to part 774 the
EAR) when the systems integrate QRS11- 00100-100/101 Micromachined Angular Rate Sensors;
(ii) Commercial automatic flight control systems when the systems integrate QRS11- 00050-443/569 Micromachined Angular Rate Sensors; and
(iii) Aircraft of the type described in ECCN 9A991 when such aircraft incorporate a primary or standby instrument system integrating a QRS11-00100-100/101 sensor or an automatic flight control system integrating a QRS11-00050443/569 sensor.

Note to Paragraph (a)(3): QRS11 Micromachined Angular Rate Sensors are subject to the export licensing jurisdiction of the U.S. Department of State, Directorate of
Defense Trade Controls, except when the QRS11-00100-100/101 version of the sensor is integrated into and included as an integral part of a commercial primary or
standby instrument system of the type described in ECCN 7A994, or aircraft of the type described in ECCN 9A991 that incorporates a commercial primary or standby instrument that has such a sensor integrated, or is exported solely for integration into such systems; or when the QRS11-00050-443/569 is integrated into a commercial automatic flight control system of the type described in ECCN 7A994, or aircraft of the type described in ECCN 9A991 that incorporates an automatic flight control system that has such a sensor integrated, or is exported solely for integration into such a system.

How should equipment in the UK which contains an ITAR component that needs to be tested at a site that was once 100% Government owned but is now a Government Owned/Commercially Operated (GOCCO) site be treated? Is the GOCCO treated the same as the original government body or does a license now need to be amended to include the GOCCO?

If it is a UK Government facility, take a look at 123.9(e).  That applies if the retransfer is to the UK Government (or to NATO or other eligible governments).  I do not know enough of the facts of your situation to know if you can use 123.9(e). 

If not 123.9(e), then we need to know how the component got to its present location.  If it got there under a DSP-5, you could do a General Correspondence (GC) request for retransfer authorization.

Domestic shipping of ITAR controlled material from one US company to another, both of which are ITAR registered, is it required that the shipper company notify the receiver company that the material is ITAR controlled?

Nothing in the ITAR says you have to notify the US recipient of ITAR items.  Doing so, however, is a prudent practice to help the recipient recognize when it receives ITAR items.  Importantly, failure to do so is not an ITAR violation.

I have a DSP-5 (2009) with Canada only for marketing and TD. Technical discussions are planned and it has come up that and there may be a few dual nationals (Canada/Poland for example). How would the export to Poland be authorized under the current DSP-5? Would I need to submit a new request under the new rules (DN)?

Your license, unless it specifies otherwise, authorizes the defense articles to go to the Canadian company and its Canadian nationals. 

The Canadian company may allow its dual nationals to have access to the defense articles under the new 126.18 exemption.  If the Canadian company does not have the required compliance procedures in place to use the 126.18 exemption, then you may apply for a new DSP-5 authorizing the nationalities in question.

We are a US company and want to import a fuel cell and a DC converter into the US for an ITAR project. Is this allowed? What paperwork (e.g. export license, ITAR documents) are required?

You need DDTC authorization for temporary imports of "defense articles" as defined by the ITAR.

You need DDTC authorization if you are going to export ITAR controlled technical data in any activities, including exporting ITAR tech data as part of the procurement process.

If you will be exporting tech data controlled by the Export Administration Regulations (EAR), then you need to comply with the EAR.

We are a foreign company employing both TCN's and US personnel providing defense services to a foreign government. We are a signatory on TAA's that authorize us to provide defense services. However, someone said that the TAA does not cover US personnel since they are employed by a foreign company and that each US person employed by our foreign company needs to have individual licenses whether by registering with the State or being employed by a US company. Do TAA's give approval for US citizens employed by a foreign company or is individual authorization required?

1) If you are talking about US persons you employ:

Arguably, no authorization is required for retransfers to US persons or to the United States (other than temporary imports into the United States), but the ITAR is not crystal clear on this.

If you want to take a conservative approach, the US party could add the United States as an authorized nationality to whom you may restransfer ITAR tech data in the same fashion as it could add Saudi Arabia or France. Alternatively, you could use the new foreign person exemption that entered into force in August 2011 if the TAA holders amend its TAA to authorize that. If the US TAA holder does not want to amend its TAA, you may submit a General Correspondence (GC) request to do so, but I suspect DDTC would rather see this done through the TAA.

2) If you are talking about US persons employed by another company:

Arguably, no authorization is required as stated above. 

If the other company is named as an authorized recipient (signatory or sub-licensee) on the TAA, then the same principals described in 1) above are true.  If the other company is not named as an authorized recipient on the TAA, the US TAA holder could add that company to the TAA and take the appropriate steps regarding the dual and third country nationals (including US).  If the US party does not want to do that, you could submit a GC and address all nationalities required, but again I suspect DDTC would prefer to see it done through the TAA.

If my company has the opportunity to sell a confirmed USML Category VIII.h for civil FAA certified applications, will the Civil FAA exception (standard part, integral part & FAA certified platform) to VIII of the ITAR allow the jurisdiction of the article to become be reversed and confirmed dual-use?

Yes.  When all three of those criteria are met, it is no longer on the USML.  If, for example, you want to export it before it qualifies for the FAA cert, it is still on the USML.

We are a UK aerospace company making parts for delivery to another UK company (BAE). If we manufacture an ITAR restricted part and ship it to the UK customer (BAE) do we still need the ITAR license? Or is it the customers, (BAE), responsibility dependent on where they ship it to?

Scenario:

The assumption for this scenario is, this transaction will occur between US companies involving only US persons (non-export). A manufacturer receives an unclassified (not secret but military) ITAR marked Assembly level drawing (parent) from a customer. In order to build a single component/part which is called out on the original Assembly drawing (parent), the manufacture creates a new Component level drawing (child). The manufacturer uses its name on the drawing, different part #'s, and ensures there is no link back to the original (parent) Assembly level drawing.

First Question: Does this new Component level drawing (child) need to be marked as ITAR controlled?

Second Question: If the answer to the first question is Yes, then what is the obligation of the manufacturer when acquiring raw material for this component/part from its suppliers/vendors?

Third Question: What is the obligation of the manufacturer if they decide to sub contract out to another manufacturer to have the component/part made?

Fourth Question: How does this scenario affect EAR 99 with NLR.

First Answer: If the parent item is a defense article, it is likely that the child item is specially designed for an ITAR item which means the child is a defense article.  That means the child drawing is ITAR controlled.  The ITAR does not require that you mark drawings as ITAR controlled unless you export them.  It is a prudent business practice to do so even though it is not required.

Second Answer: The ITAR does not require that you notify other US parties that you are acquiring raw materials to make an ITAR item.   I would assume much of the raw materials are not ITAR, but I cannot tell here.  If you give suppliers ITAR tech data (e.g., drawing), it would be a prudent business practice to let them know you are giving them ITAR tech data.  If you export ITAR tech data, you must tell the recipient the tech data is ITAR controlled by marking the tech data or cover letter.

Third Answer: Assuming you are doing this in the US, the ITAR does not require that you notify the other US manufacturer.  It would be a prudent business practice to notify them.

Fourth Answer: I don't know what you are asking

Can you clarify when a manufacturer would also need to register as a broker? Specifically, do I need to register to sell the products I manufacture or only if I sell the products that someone else manufacture?

You need to register if you provide assistance to another person to help them sell defense articles.

If you just sell defense articles for yourself, regardless of who makes the defense articles that probably does not create a requirement to register as a broker.

We are registered with the DDTC and will be purchasing defense articles (ITAR controlled) of non-US origin from a company in the UK. Upon arrival at our facility in the US we will ship the goods to Denmark. Aside from following UK regulations will we need an export license from the DDTC in order to ship these parts to Denmark? If so, why type of license is required?

The type of license required (for example, permanent export, temporary export) is required in this case as would be required if you were exporting US origin defense article.

My company has two locations in the US. When we first wanted to get into ITAR work we registered as required. Do both sites need to register? We actually do most of the ITAR work at one of our sites while not so much at the other.

Typically the corporation registers as a corporation and identifies all of the sites in the registration.  If you only identified one site, you should immediately update your registration with that information.

My company is ITAR registered. If we need to send ITAR material to another company in the US to complete one or more steps in the process is the other company required to be ITAR registered?

The ITAR requires that any company who manufactures defense articles register with DDTC.  If those other companies are doing part of the manufacturing process, the ITAR requires that they register.

I'm visiting Los Angeles shortly and am thinking of getting a Leopold range finder. Will I be ok to take it out of the country? I don't want to be stopped for something illegal on the way out!

It depends on the rangefinder. I suggest you contact the manufacturer before you buy the item and ask the manufacturer to tell you what export controls apply to the rangefinder you want.

If an American citizen, temporarily working in France, is exposed to French military technology (blueprint or specification), will it create the need to have the ITAR applied to the technology/item?

No.  The act of a US person seeing non-US origin technical data does not cause the non-US technical data to become subject to ITAR jurisdiction.

We are a manufacturer and get repeat orders under the same P.O. # but these repeat orders may be placed over several months. Under the EAR, do we have to screen the customer and contact person(s) each time a repeat order is placed? Do we even need to screen the contact person at all who works for these companies that we do screen? Do the rules change under the EAR if these were new orders with a different P.O. each time? Do I need to screen the customer each time? Do I need to screen the contact person each time? Can you point me to the EAR regulation that states the requirements for my situation?

By "screening," I assume you mean screening against the various US prohibited parties lists.

The EAR does not require that you screen against the prohibited parties lists.  The EAR, and depending on the list, other regulations, merely prohibits you from being involved in activities with parties on the lists.  It is similar to speed limit laws on the highway--the laws say you may not exceed the speed but the law does not tell you that you have to check your speedometer and it does not tell how often to check your speedometer.

So, it comes down to your decision as what prudent screening procedure you want to implement based on the way you do business and your assessment of your risks and your risk tolerance.  Some concepts to consider:

--Screen all known parties--suppliers, customers, forwarders, banks, etc.

--Choose between:

1) Transaction screening (e.g., Screen immediately prior to purchase, signing contract, export, etc.) or

2) Batch screening (e.g., screen all parties you deal with today and designate them as clean--you do not have to screen individual transactions if all parties involved are in your clean list.  You need to screen all new parties before you add them to the clean list and then every time the US Government makes a change to one of the lists, screen that change against your clean list).

There are unlimited variations on transaction or batch screening and combinations of them too.  The bottom line is the rules say you may not participate in a transaction with someone on a list.  The rules do not tell you how to screen. 

And, for the record, the restrictions on the parties on the list many vary depending on which list a party is on or what specific restrictions the US Government has placed on the party.  It is not actually as simple as saying the rules say you may never be involved in a transaction with a party on the lists.  Some companies implement a company policy of never dealing with someone on one or any of the lists.

Can you tell me what a company should be doing about dual nationals who will be working on programs that involve ITAR technical data?

It depends on the nationalities of the dual nationals. If a dual national has US citizenship, permanent resident status, or protected status, that dual national is a US person. If a dual national does not have US citizenship, permanent resident status, or protected status, that person is a foreign person.  Get a foreign national DSP-5 license for each individual who is considered a foreign person.  The DDTC website has guidance on that.

If a part/product is classified as a “commercial item” does that have any bearing on whether or not it will be cover under the ITAR?  Can a “commercial” or “COTS” item still be classified under the USML and subject to ITAR requirements?

Not really.  Commercial and COTS items can be on the USML and controlled by the ITAR.  If it is on the USML, it makes no difference if it is COTS, commercial, off the shelf, etc.

If a standard catalog industrial product (not subject to the ITAR) is modified for a foreign military vehicle, then that would still then be subject to the ITAR (USML VII)? If the product is purchased by and modified by an independent distributor to the foreign country is there a potential classification issue?

If the foreign military vehicle is described in Category VII, then industrial product modified for that vehicle is likely in Category VII.  You determine jurisdiction based on what you are exporting because your issue is the export from the United States. So, if you export an item that is not on the USML with knowledge that it will be modified overseas for a military vehicle, you do not have ITAR issues, unless you help the foreign party do the modification.

What is the most effective away of browsing the Federal Register to receive results pertaining only to export compliance issues for specific business/individuals?

I find it to be easier to go to the key US Government websites to look for Federal Register notices.  As a starter I suggest, www.bis.doc.gov, www.pmddtc.state.gov, and http://www.treasury.gov/resource-center/sanctions/OFAC-Enforcement/Pages/OFAC-Recent-Actions.aspx.

Is it possible for us as a Norw company or our customer, the Norw Defence, to apply for an ‘open’ ITAR licence for specific equipment, for instance a licence covering several years or several purchase orders for the same type of equipment?

Generally speaking, the State Department (DDTC) does not issue the type of open licenses that we see some European governments issue.

Normally, the applicant for an ITAR DSP-5 export license must be in the United States.  Parties outside of the United States usually may apply for "General Correspondence" licenses for reexports and retransfers. 

Over the years, some foreign (i.e., non-US) governments have used large export licenses that said something like "1 Lot of Various Spare and Replacement Parts to the Support the F-XX Fighter for a [large dollar amount]."   In some cases the foreign government will appoint a US freight forwarder or other US party to be the applicant or exporter. 

DDTC's willingness to issue such licenses changes to some extent over time.  I have heard that such licenses somewhat fell out favor for a while. 

You don't know what they think today about the concept of issuing large bulk licenses like this unless you ask DDTC today.  Their answer may well depend on the government involved (Norway is fairly favorable), the parties involved, and the items involved.

So, I suggest that the Government of Norway approach DDTC on this since they may get a more favorable response than a company.  The second best option would be for you or somebody from a company to ask DDTC the question.

My company is a global provider of Video Conference Systems. My question pertains to commercial invoicing. If we take many different items to make a "Small Conference Room", can we make a part number for the one item, the "Small Conference Room"? Or is it best to itemize out all of the gear individually. I would think the latter because what ECCN/HTS would we use for the "Small Conference Room", if we were able to do it that way?

There can be a distinction between what is required and what might be good business practice.

US export regulations do not tell you exactly how to describe the item on your commercial invoice or how to determine how to apply your part numbers.  Various business reasons will shape how you want to describe the items and for convenience reasons you may want to make your invoice (and other) descriptions be something that is easy for import and export government officials to understand so they can readily assess their compliance concerns.  It is not a violation of US export regulations to have an unclear or vague description on your invoice but it is not a good idea.

There could be a whole host of issues related to how you determine the ECCN and HTS for what you are exporting--too many potential issues to address in detail without knowing a lot more about the item/items in question.

UK Origin goods exported to the US with the intention to re-export to another country. How do I go about getting accurate export information for the parts? The UK manufacturer keeps telling me that the US controls do not apply to the goods. And, it is very difficult for me to self-classify the items.

US export controls apply to all items when they are in the United States, regardless of the origin of the items. 

Your question is a business question, not a regulatory question:  How do you force another company to give you information?   The US regulations do not require that the UK company give you such information.  So it comes down to what you can negotiate with the UK company.  For the future, you could include in your contract or PO a requirement that they give you this information.  

You also have to consider the issue of whether the UK company would be able to accurately classify the item under US regulations.  If you are the US exporter, you are responsible for the export.  If the UK company incorrectly tells the item is EAR99 and you export it as NLR, that is your violation.  So, maybe you would be better off classifying the item yourself based on technical information the UK company gives you.

I am a British national and hold full UK British citizenship from birth. I would like to apply for an OCI (Overseas Citizenship of India) card to make travelling to India easier. I believe the OCI is NOT classed as dual citizenship and hence on ITAR registers I should be still considered as British/UK citizen. Hence...is, my ITAR status affected by applying for an OCI?

Good question.  The ITAR does not define citizenship, nationality, dual-national status, etc.  DDTC has said it will consider all relevant factors. 

I do not know the answer to your question.  Obviously, the safe approach would be to say that if you got that partial or semi-Indian citizenship then you would be a dual UK-Indian national for ITAR purposes.  If you want to know for sure, send a General Correspondence letter to DDTC and ask the question.

We have received a DSP-83 for an order (ITAR controlled items) to be shipped overseas and will need to apply for a license. Do we still need an End-user letter even though on Section 7 of the DSP-83 form, it basically states what an End user letter would say, plus it has the official seal of the end-user? Would it be acceptable if we just have the DSP-63, and a PO from the company buying from us, since we will ship directly to end-user?

You need something in writing, preferably signed, that states the end user, end use, quantity, value, and country--that is sometimes called a verification of purchase.  It can be in a PO, letter of intent or other document.

We are a company registered with the DDTC. If we are modifying a product to go inside an ITAR controlled item, are we required to confirm if our customer is registered with the DDTC?

The ITAR does not require that you do that.  DDTC, of course, would like you to do it but DDTC so far has not revised the ITAR to make it a requirement.

If I am selling a UK designed & owned product to a US customer/US government is it ok to put the ITAR statement on all of the copies of the drawings that I send to my customer even though they will remain UK property?

Purely UK origin "defense articles" (including data) are subject to ITAR jurisdiction while it is in the US.

The ITAR does not require that you put ITAR markings on items (regardless of whether they are US or non-US origin) that move from one US party to another US party. 

You may put the ITAR markings on the UK data if you wish.  It is a prudent practice to do so even if it is not required.

This question is regarding permanently importing purchased overseas surplus US military ITAR Cat VIII articles from the US government. ITAR 120.5 refers to ATF CFR 127 Part 447. However, Part 447.21, The U.S. Munitions Import List specifies that Category VIII (b) through (j) of the Munitions List is deleted as inapplicable to imports. CFR 127 Part 447.53 Exemptions doesn't seem usable because it refers to "articles on the U.S. Munitions Import List" and Category VIII (b) through (j) having been deleted are not on the US Munitions Import List. What would be the correct process to permanently import purchased US USML goods that have been deleted from the US Munitions Import list?

The ITAR does not prohibit permanent imports so it does not require licenses or authorizations for permanent imports. 

As a practical matter, you should just keep the records you have, or will have, related to the permanent import such as the Customs import documents, shipping documents, documents related to the commercial transaction, and the surplus purchase docs.

A manufacturer got the export license from State of Department and we are a foreign consignee in the license. They shipped out a part of the items described in the license to the end user in overseas. Now they just denied shipping the remained items since they don't want to continue business with us because of its internal matter. My question is: Isn't it the manufacturer's violation of ITAR if he does not complete the shipment of all the remained items according to the export license? Would you please show me the concerned article in ITAR if so?

It is not an ITAR violation to decide to not export the things on your US export license.

We are a Foreign company issuing RFP's to US companies whose products are export controlled (both ITAR and EAR). We will be requesting a technical section with detailed technical data be provided within the response and understand a license will be required. We have received various responses from the US companies i.e. 1) DSP-5 in response to RFP but must have official RFP; 2)"Marketing" Tech Data DSP-5 with no need for RFP; 3)cannot provide data without TAA in place. Understanding that providing tech data is really considered a defense service, the TAA would seem to be the best route however... What is the difference between a license providing tech data in response to a RFP vs. a "Marketing" tech data license. What type of info can be provided under each? Also, since we will be presenting this data in a proposal we are preparing for submittal to a different foreign company, shouldn't the US companies have the names of all parties that will have access to the data? Would we be the end user and our proposal be considered a re-export of the data?

A license normally authorizes the export of discrete technical data and documents.  An agreement gives more flexibility for technical interchange, discussion and true defense services. 

A DSP-5 to send you technical data authorizes whatever the company requests minus whatever DDTC removes via proviso.  A DSP-5 for marketing license normally authorizes fairly non-sensitive data for marketing purposes to multiple recipients. Normally, in the situation you described a company would not do a marketing license but would do a DSP-5 for what could be much more detailed tech data and technical data more specific to your one situation than you would usually see in a marketing license.  The company that said it needs a TAA is asking for the most flexible approval option--the TAA will authorize whatever tech data and defense services the applicant requests minus anything DDTC excludes by proviso. 

Generally, marketing DSP-5 has narrowest scope of eligible data, DSP-5 has a wider scope, and TAA has the widest possible scope of tech data plus real defense services.

I cannot guess why a specific company may have chosen one approach over another approach.  If the decision is an informed decision, they a company may be going with an approach that has served it best in the past.

I recommend you give the US companies a description of what you plan to do with the technical data (i.e., pass it on to other companies and other nationalities) so they can address that in their license application.  Yes, the US companies should be asking for that, but it is in your interest that you give them the information and ask them to get an export approval that authorizes what you need.

My customer in the UK is requesting copies of all licenses pertaining to them. Can I send a copy of an approved DSP5 overseas?

Usually you may send them a copy. 

The ITAR does not regulate the export of approved licenses unless:

--The approved license includes technical data.  Most approved licenses include a description of technical data but not technical data.

--In some cases the license will have a classified proviso that you may not share.

--In some cases a proviso will explicitly state that you may not share that proviso with a foreign party.

If we sell an ITAR product under an FMS sale, when it comes time to return the product for repair/overhaul what do I need to do regarding licensing or exemption use to get the hardware in and returned. Assuming I use the TAA as authorization for the defense service.

There are many ways to approach this and I cannot tell you the best way without more fact.  ITAR 126.6(b) is the FMS exemption for transfers of defense articles and defense services covered y an FMS contract "during the period which the FMS Letter of Offer and Acceptance (LOA) and implementing USG FMS contracts and subcontracts are in effect and serve as authorization for the transfers hereunder in lieu of a license."  The transfer has to be made by the foreign government or its authorized freight forwarder. 

If what you want to do is not authorized by the FMS exemption, then you may look at the 123.4 temporary import exemption.  If it is coming in from Canada you could look at the Canadian temporary import exemption 126.5(a) to bring the hardware into the US and return in conjunction with the Canadian defense services exemption 126.5(c), the allies maintenance exemption 124.2(c), or a TAA to authorize the defense service involved in providing the repair/overhaul services.  Another alternative would be a DSP-61 for the hardware movement plus a separate authorization for the defense service.

We have been contacted to provide a defense service on a foreign origin air craft. We will get the TAA for the defense service but do I need a DSP 61 to bring in the air craft or can I use the TAA as my import/export vehicle for the hardware?

You likely need a DSP-61.  But, I never know what a TAA authorizes unless I read the TAA.  If your TAA explicitly authorizes the temporary import and return of the foreign origin aircraft, you may use your TAA.  Most TAAs do not authorize that.

Does ITAR require that a company that manufactures 'defense articles" have all visitors US and Foreign checked on the BIS Denied Person List?

No.  The ITAR does not require screening of all visitors, US and foreign. 

Since you did not tell us if you are in the US and you did not identify the origin and nature of your defense articles, we have to make this answer generic.

The key issue is whether you will do an activity subject to ITAR restrictions, such as export, reexport, retransfer.  If a visitor comes to your facility to change the light in the conference room just inside the front door of your facility and has no access to defense articles, it is unlikely that person will be doing something subject to ITAR restrictions.  If you fail to screen, you probably are ok.

If you plan to give the person ITAR-controlled technical data, it would be prudent to determine the person's nationality and, depending on the circumstances, screen that person. 

In all cases, you could choose to reply upon luck instead of screening, but I do not recommend that.

So, companies implement a wide range of visitor policies involving determining the nationality of a visitor and screening visitors against the various prohibited parties lists.  Some US companies only screen foreign person visitors.  Some US companies screen all visitors.  What you decide to do has to be based on your assessment of your situation and the resources you have. 

Another issue is that you referred to only one of the many US Government prohibited parties lists that you should be using.  The exact rules applicable to the various lists differ somewhat, but if you screen, you should screen against all of the lists.

There is no one-size-fits-all approach.

Does ITAR require that all visitors US and Foreign sign an NDA?

No.  The ITAR does not require that all visitors, US and foreign, sign an NDA.

Once again, we lack a lot of details here.  Generically speaking, it is difficult for me to think of a case where the ITAR itself requires an NDA other in some cases the use of an exemption may require an NDA-type document.  Certain DDTC-approved licenses or agreements may require NDAs.

Certain companies use NDAs as part of their internal procedures either because they are required by the ITAR, a license, or an agreement, or because the company wants to get them even though they are not required.

We are in the UK and incorporate an ITAR-controlled camera assembly (VIIc) into our end-item. In a particular instance, the item is licensed only for 'our use and evaluation' (we are quality testing a new product line).

The next licenses will request use for 'trials and demonstration' by named end-users, but in the meantime is there anything to stop us demonstrating our kit on the current license, given that we will retain possession and the people being demonstrated to will have no access to, or control of, the ITAR part directly, but will see its functionality in the context of our kit?

This is a close call.  You may do only what the approved license says you may do.  If it says you may incorporate the camera for your use and evaluation, then the license does not authorize you to do a demo of the camera for someone else’s evaluation.  

You may submit a GC requesting retransfer authorization to change the end-use so you may do what you wish to do with this camera. 

For future US license application, you should give the applicant an end-use description that includes all the things that you want to do, such as the type of demonstration you had hoped you could do under the approved license in question.

I have some questions about Country Groups.  Some are in multiple Groups and then some are in one and there are like 4 parts and there is an X in some of the fields so does an X mean no or what? A good example is Cuba if you can explain that one this would be great.

Some countries are in more than one country group.  For example, Cuba is in country groups D:2, D:3, E:1, and E:2.  Cuba is not in country groups D:1 or D:4 because there is no X in the D:1 or D:4 columns. 

Many countries are in more than one country group.  Argentina, for example, is in country groups A:2, A:3, A:4 and B.

If the EAR says you can do something for Country Group B, then you can do it for Argentina because it is in Country Group B in addition to other country groups.

9A991 when I look at the ECCN number it states controlled for AT and UN applies to 9A991.a. What does UN mean?  It is not on the country chart.  If I was asked what 9A991 is controlled for can I just say Anti-Terrorism (AT)?

UN = United Nations Embargo.  When an ECCN has UN controls it usually specifies those controls in the ECCN, which is the case in 9A991.  To determine exactly what UN controls apply to a country named as being subject to UN controls, normally you go to EAR Part 746.So, for 9A991.a destined to Rwanda; you would go to 746 and look at the Rwanda rules in 746.

Do you have to keep all email correspondence for NLR to Canada and to everywhere else as well in regards to export documentation?  My company does not and wanted to know for sure.

EAR Part 762 generally requires that you keep all records related to all exports, including EAR99 exports to Canada.

Are fuel filters on the USML? I did not find them there.  In your lecture I just have them down as components to a military item so if for a military item would you be able to assign this and USML number or no? Also if going to China would the Military End-Use Rule require a license or would it be a violation of trading with the enemy act? 

The words "fuel filters" and "pumps" may not be in the USML, but there are many categories in the USML that control parts, components, etc.  Specially designed or modified for something names on the USML.  So, a fuel pump specifically designed for a military aircraft and a fuel filter specially designed for a military aircraft could be controlled in paragraph VIII (h) on the USML.

The China military end use restrictions depend on the ECCN of the item.  If the item is not in an ECCN listed in the China military end use rule, then the rules do not apply.  For example an EAR99 fuel filter may go to a military end use in China as NLR.

Does each TSU, CIV and LVS all depend on the Export Classification Control Number or none of them?

The ECCN of an item may impact its eligibility for those license exceptions.

How long are EAR licenses good for?  I know DOD licenses are good for 10 years but would like to know for EAR licensing and if you go by approved date or expiration date?

BIS licenses are good for approximately 2 years and expire on the expiration date shown on the license.

I have a question as to how a foreign produced product is classified in the event it needs to be returned to the country of origin for repair? Since we may not have access to the specifications and the foreign manufacturer has no idea what an ECCN is, what is the solution if the product has to be temporarily exported?

It is difficult to classify an item that you have not manufactured because you might not have the technical details or in-house technical experts that a manufacturer would have.  Unfortunately, the EAR does not give you any relief. 

One approach to determine the ECCN is to try to find the paragraphs in the CCL that might apply to your item.  For example, if I am classifying a camera, I would look at ECCNs 6A003, 6A203, 6A993 and 6A002 (as it relates to 6A003), and extract from the list of items controlled the paragraphs that might apply to the camera.  I would then put those paragraphs in an email to the foreign manufacturer.  I would as the foreign manufacturer to tell me which of the paragraphs in the list apply to the camera.  Even if the foreign manufacturer does not know ECCNs and the CCL, it will have the technical details required to determine which paragraphs apply.  Once I get that reply from the foreign manufacturer, it (usually) is fairly easy to determine the ECCN and paragraph. 

FYI, in some cases, the precise ECCN might not matter because you may be able to use 740.9(b)(3) in License Exception TMP to export the foreign origin item back to where it came from.  You still would have to know enough about the item to make sure your item is not excluded from eligibility by 740.9 or 740.2.

I have a customer located in Bedford MA that bought product form our company and they want us to send it to their customer in France. Is this considered an export even if the customer in MA (USA) is paying for the shipping.

Yes this is an export.  If you are the party in control of the shipment leaving the country you are the exporter and responsible for compliance.

We’re exporting a software with an ECCN of EAR99 item and an item with ECCN 5D002. In the US we would typically use - NLR for license exemption. What will be the equivalent of these exemption codes in the UK?

The EAR does not have "license exemptions."  The EAR has license exceptions and it has NLR, both of which indicate your export does not require an export license.

 The UK regulations have some similar export authorizations.  For example, the UK has export licenses, Open Individual Export Licenses, and Open General Licenses.  For more information go to UK Government BIS website.

Is a US company subject to ITAR regulations and compliance if they bring vetted US citizens over to Australia to work as consultants for the Australian Department of Defense in order to provide guidance on areas such as Risk Management, Security Assessment and Training or is such a company exempt given the new/upcoming Defense Trade Cooperation Treaty?

Someday the new treaty might change things, but it is difficult to predict the future.  If and when the US changes the ITAR to implement changes for Australia, we can look at the new rules.

Under the current situation, the key question is whether you are providing a "defense service."  I cannot say whether you would be providing a defense service without knowing all the details of what they will be doing. 

I suggest you find out the details of everything they will be doing and see if anything they do is a "defense service," as defined below.  If you will be providing a "defense service," you like will require authorization (an agreement or a license) unless an exemption is available.

§ 120.9 Defense service.
(a) Defense service means:
(1) The furnishing of assistance (including training) to foreign persons, whether in the United States or abroad in the design, development, engineering, manufacture, production, assembly, testing, repair, maintenance, modification, operation, demilitarization, destruction, processing or use of defense articles;
(2) The furnishing to foreign persons of any technical data controlled under this subchapter (see § 120.10), whether in the United States or abroad; or

(3) Military training of foreign units and forces, regular and irregular, including formal or informal instruction of foreign persons in the United States or abroad or by correspondence
courses, technical, educational, or information publications and media of all kinds, training aid, orientation, training exercise, and military advice.

My company wants to export software services to a USA based company for which the US Based company is asking for an Export Compliance Certificate to USA. What do I need to do?

I have never heard of something called an Export Compliance certificate to USA.  I suggest you ask them what they are talking about and ask them to tell you the specific regulations or laws that cover it.

Is there an acceptable downloadable form that states that we are not shipping export controlled items out of the country?

I do not know of any such form.  I am not sure what you mean by acceptable.  There is no US regulatory requirement for such a form.  If you give us an idea of what you would like to communicate in the form, we might be able to suggest some words to use.

This is similar to another question, but after reading Part 129 of the ITAR I am still a bit confused. We have sales representatives worldwide that do not work for our company but have commission-based agreements with our company (brokers, by definition in the ITAR). These representatives help us sell our ITAR and non ITAR-controlled products. All these representatives overseas are not U.S. Persons. Do these foreign persons have to register with the DDTC as brokers?

If they meet the ITAR definition of broker, they have to register.  The rules apply to foreign persons as well.  The mere fact that they are sales agents is not enough to determine if they meet the definition of broker.

My company is incorporated in a Middle Eastern country with very close ties to the USA. We provide military training that clearly falls under sec. 120.9. Because the company is a "foreign person" it cannot obtain a TAA. Our problem is that several instructors and management are U.S. persons. Would a General Correspondence letter for the company cover its employees so that they do not need TAAs individually?

I am not sure if a foreign person outside of the United States is covered by "defense service" as defined in ITAR 120.9.  I do not know all the facts so I cannot say one way or another but I suggest you take a close look at that.  Having an American president of your Middle Eastern company does not automatically mean that 120.9 applies when you do military training.  The scenario you raised is one of the many areas where the ITAR is not clear--different people see your issue in different ways.

(Note:  The proposed change to 120.9 would address this issue more clearly and would make it more likely that what you are doing is not caught by 120.9.)

In any event, if in the course of the activities in question, you retransfer technical data subject to ITAR jurisdiction, the retransfer may require authorization even if you are not caught by 120.9.  I suggest you use a General Correspondence letter to request any required ITAR authorization.

What exact U.S. restrictions apply to an entity included in the US "entity list"? In particular what kind of ban of export privileges: denial of export license? De minimis calculation (10% or 25%) if this entity is located in Europe?

 Where can we find the notification of BIS further to the addition of a company in the US Entity list? Can we know the reason why it has been added to this list?

The Entity List imposes additional EAR license requirements on specifically identified persons (individuals as well as legal persons like businesses and other entities) which BIS believes are acting contrary to US national security or foreign policy interests. Export, reexports and in-country transfers are all subject to the identified license requirements. The exact license requirements vary based on the entity. For some entities, all items subject to the EAR trigger a license requirement. In other cases, EAR99 items may be permitted without a license, though BIS warns that the transaction with a listed entity should still be treated as a red flag.

Entity List license requirements do apply to reexports of non-US made items subject to the EAR as a consequence of the de minimis rule. Whether the 10 percent or 25 percent de minimis threshold applies depends upon the country where the entity is located. For example, the shipment of an item made in Belgium containing 15 percent US controlled content to Serbia is not a reexport subject to the EAR. This continues to be the case even if the recipient in Serbia is on the Entity List.

You can register for email notifications from BIS, including updates to the Entity List at https://www.bis.doc.gov/forms/emailnotification.htm. BIS does not generally make public the reason why a person is added to the list, though this can sometimes be inferred from public sources.

Do you know if there is more up-to-date information on nano-technology than the article “Dual-Use Export Controls on Nanotechnology” in the Spring 2008 issue of Nanotechnology Law and Business? We have a potential licensing agreement with a Japanese organization.

The most up-to-date information is in the current EAR and ITAR. Nanotechnology is a broad term that includes items that require ITAR exports licenses, EAR export licenses and items that require no export licenses. The requirements and restrictions depend on the nature of what is being exported, the parties and countries involved and the activities involved.

Are there export controls on EAR items sent from a US company to its own subsidiary in a foreign country?

Yes. For the most part, the same export controls apply when a company exports items from the United States to its foreign subsidiary as when it exports to other parties. There are a few limited exceptions here and there such as EAR encryption exports to affiliates and ITAR temporary exports to subsidiaries.

Do you need to do an AES filing for TAA's or deemed exports? I am getting different answers on this question. According to the Census Bureau, AES filings occur on physical items, not technical data. Any information is appreciated.

1) For deemed exports under a DSP-5: See ITAR 123.22(b)(3)(i)

  • DSP-5 technical data export license is retained by the exporter and the applicant must report the shipment to DDTC.
  • The Applicant must self-endorse/validate the license when the data is exported, and after all of the technical data is exported, return endorsed license to DDTC.
  • See example report below.

2) For exports under a TAA: See ITAR 123.22(b)(3)(ii) –

  • The applicant must notify DDTC prior to the initial export. No other reports are required unless you export technical data via a US port (e.g., sending paper documents by courier).
  • See example report below.

Example Data Report (keep it simple and cite the ITAR paragraph that requires reporting):

DDTC
Attn: Technical Data Export Notice Pursuant 22 CFR 123.22(b)(3)(ii)

Ladies and Gentleman:
Pursuant to 22 CFR 123.22(b)(3)(ii) and the interim www.pmddtc.state.gov web guidance as posted in March 2009, we hereby provide notice of the first shipment of technical data under DDTC approved TAA 1234-56. The shipment occurred on May 23.
Feel free to contact us if you have any further questions.

Can the foreign signatories continue to exchange amongst themselves controlled data that they have received under a TAA, after this TAA has expired?

The activities authorized by a TAA may not continue after the TAA expires unless there is another ITAR authorization for such activities.

Our company makes very simple circuit cards using commercially available processes. Occasionally a military customer will send us a drawing with an ITAR marking (the only reasons seems to be a reference in the drawing to higher level assemblies).

We are only in the US, we only have US persons working on the parts. We keep all ITAR files safe, segregated, and in house. We never export products. These ITAR products only go to the US defense customers who order them.

Is it really required to register in this case - no export and simple common commercial processes - but made for a military use?

The ITAR requires that all parties who manufacture hardware "defense articles" register with DDTC, regardless of the value or significance of the "defense articles" being manufactured. While we cannot determine with certainty whether the items you are making are, in fact, "defense articles" without knowing more details about the items, it sounds like they are.

In your blog Mrs Anna Barone July 13th, 2011 at 2:11 pm posted updated guidelines for DSP-73 and DSP-61 License Applications.

My question is: Our government that is the end user wants to bring ITAR controlled items into US bases and ranges for a joint exercise with other nations including USAF. We will carry the ITAR items on our own aircraft and will always have the possession of the items at the base. The items will not be transferred to any other user. Do we still have to have a license to temporary import the items?

Anna Barone wrote:
DSP-61 – Temporary Import License Applications: Return to Country of Origin (22 CFR 123.3(a)(1))

For transactions relating to military exercises at U.S. bases/ranges, the license application must be supported by documentation from the foreign government identifying the participation of the foreign country in the exercise. The license application must specifically identify the name of the military exercise. These application types should be submitted by a foreign embassy on behalf of their military. Any exception must be explained in a letter of explanation describing the circumstances.

If you will bring the defense articles into the United States you still need to get the DSP-61, even if you are doing it as part of a program for your government.

Retransfer of equipment under the ITAR has been approved and given authorization to ship to the new end user. The new end user is attending training courses in the UK to configure the equipment.

Does this warrant an amendment to the original TAA to include the new end user? Or would a (GC) General Correspondence requesting approval for the new end users to have access to technical information on the training course suffice?

This is difficult to answer without seeing the full scope of what the TAA approves.  Here are some key points:

  • If the US TAA applicant is doing the training course in the UK, that should be covered by the TAA.
  • If a UK party is doing the training using US ITAR technical data received under the TAA, that could be covered by an amendment to the TAA or by a GC requesting authorization.  The first approach is probably the better, but if the US TAA applicant does not want to amend the TAA, the UK training party could submit the GC.

 

I have just joined a UK subsidiary of a US based company. We are working on a US Military project, manufacturing assemblies using UK and US technology and have appropriate approvals (TAAS, MLAs etc.) in place. We are also incorporating UK produced COTS products, that have not been modified in anyway, into the higher assembly. Please advise if the UK, unmodified, COTS components then become subject to ITAR? If so, does the classification of ITAR remain against that component if that part is removed from the higher assembly?

The ITAR applies to items produced in the UK if the items:

  • Contain any ITAR controlled content;
  • Were produced using ITAR controlled technical data or defense services; or
  • Are specifically mentioned and restricted in any DDTC approval (e.g., license, agreement).

For example, if you purchase standard bolts designed for automobiles and made in the UK, the ITAR does not apply to those items even if you plan to install them in a US battle tank. So, you may send such bolts to other countries without ITAR reexport/retransfer requirements.

I was born in Hong Kong which was a British dependent territory. I held British (Overseas) nationality until 2012 when I became a British citizen. I lived in the UK since 1989. I worked for a company which regularly handles ITAR products. I have been told that I cannot handle ITAR data without an approved TAA as I classify as a dual national due to my place of birth. Since I was born in a British dependent territory, do I have a case to get my ITAR restriction lifted?

The ITAR does not say how we should determine the nationality of a human being. DDTC has refused to address this in the ITAR. What you have been told is not an unusual company approach to defining your nationality. If you work for a UK company and want access to defense articles and defense services it receives under TAAs, there are 3 options to get you authorization to access those defense articles and defense services:

1) Ask the TAA applicant(s) to add Hong Kong as an authorized nationality under their respective TAA(s);

2) Your company implements procedures to use the 126.18 exemption for your nationality; or

3) Your company sends in a General Correspondence application to DDTC asking DDTC whether you may be treated as a UK-only national and, if DDTC says not, then in the same GC asking DDTC to grant authorization for you to have access to the pertinent defense articles and defense services.

I am presently employed by a company in Saudi Arabia that does Military Aircraft Engine Overhaul work. At present the plant works on or will begin work on P&W F100, PT6, MTU/Rolls-Royce RB199 (specific Modules) and Rolls-Royce T56/501-D22A Engines. My question is: If we have visitors, of any Nationality, is it necessary to cover Engines in various stages of Assembly/Disassembly? Is it necessary to cover Proprietary tooling? We require that all visitors be escorted at all time and do not allow photography or note taking of any kind including sketching, measuring etc. This has been a point of confusion for some time so thought I would try to find out once and for all.

The key ITAR issue is you may not transfer/reveal/release ITAR technical data to unauthorized persons--this includes, visual, oral, document and any other form of tech data transfer. It is key that ITAR controlled tech data is involved. Without knowing the nature of your facility, your visits, your visitors, etc., we cannot tell you exactly what to do, but we can frame the issues for you.

Let's assume you are working on an ITAR-controlled engine.

If you take a foreign national visitor up to a work stand where engine resurfacing is going on, that visual observation likely would involve the transfer of ITAR technical data plus anything you say about what is going on could involve ITAR tech data--you need to get approval for that or prevent it from happening.

If someone is standing in your factory and from 50 meters (150 feet) away the visitor sees the same thing, then in many cases the person would not be close enough to receive/obtain ITAR technical data about the coating process from what it sees. (Of course, you could still have issues related to the oral transfer of ITAR tech data, document transfer, etc.)

At the end of the day, it all comes down to what the visitors see, hear, observe, receive, etc. Some companies, for example, have certain areas of their factories where they can take foreign national visitors and other prohibited areas.

The ITAR does not prohibit the release of information that is not ITAR technical data such as "public domain," "basic marketing on function and purpose," "general system descriptions."

So ultimately, to compliment the procedures you have in place, you may wish to either develop specific guidelines for all areas of your facility or when your export compliance group approves a visit it first understand what the visit will involve and then it issues a specific visit approval that says what may happen and what may not.

When is a signatory on someone else's export license or export agreement necessary or beneficial?

Your question is extremely general and open ended. The answer for your situation depends on the facts of your situation: what country are you in, what do you want to do, what defense articles and defense services are involved?

In most cases, you cannot be a signatory on some else's export license.

Agreements do have signatories. It generally is useful to be a signatory on someone else's agreements when you need to have direct contact with the applicant for purposes of exchanging technical data and receiving defense services. "Sublicensees" as defined in the DDTC "Agreement Guidelines" (which means they are not signatories) may not receive tech data or defense services directly from the applicant.

Can we use a foreign company’s letter stating they will comply with all US DOC/BIS regulations in lieu of end use statements for EAR-99 items? The company claims hundreds of other US companies accept this.

The EAR generally does not require that you obtain end-use statements for EAR99 so I assume your company has put in place a policy to require end use statements. Your company may implement that optional compliance procedure if it wishes. Your company should further develop its policy and procedures to address the question of whether it will accept other assurances in lieu of the end use statement.

In deciding whether to accept the letter, you have to evaluate the risk factors such as the nature of the foreign company and its activities, sensitivity of the products/technologies involved, countries involved, and presence of any red flags.

Company X is registered with an ITAR status and they comply with the regulations and only employ local born local citizens in the country of production and shipping. Company X outsources work to company Y. Company Y is not ITAR registered but do the regulations extend automatically around company Y as a third party? If so, is this stated anywhere in US export regulations?

You did not give the details of what is involved in the outsourced work but we can tell you the following: 122.1(a) of the ITAR requires that any party that exports or manufactures defense articles or furnishes defense services must register with DDTC. So if company Y makes defense articles for company X, then company Y must register unless it meets one of the exemptions (e.g., company Y's only ITAR relate activity is the production of ITAR controlled technical data). The ITAR extends to all parties who engage in ITAR regulated activities.

We are purchasing military equipment from suppliers worldwide and they will arrange to ship those goods we procured directly to our customer end-user. We have not yet confirmed that we will procure these items from these suppliers and have not yet asked for confirmation if they are subject to ITAR.


If they are subject to ITAR and we procure from these suppliers and they deliver their products which contain ITAR, does this mean that we, as a prime or non-prime contractor, will be a broker and does this relate to brokering activities?

A lot of details about your activities would be required to answer your question with a definite yes or no.  Here are two important points that should point you in the right direction:

  • If you are a "US person" and you facilitate the sale of transfer of "defense articles" on behalf of another person you must register as a broker.
  • If you are a "foreign person" and you facilitate the sale or transfer of "defense articles" subject to ITAR jurisdiction on behalf of another person, you must register as a broker.

Under ITAR Laws and Regulations, what is the status of a US Person working for a foreign company? Are they still considered a US Person or are they now considered a Foreign Person?

In the ITAR, "foreign person" includes a company incorporated outside of the United States (even if it 100% owned by a company in the United States). 

So, let's say a US citizen is working for a "foreign person,"   when a US company wants to give ITAR technical data to that US citizen as part of that US citizen's job with the foreign person, the US company should consider the US citizen to be a foreign person--the same foreign person as the company incorporated outside of the United States.   

This has significant practical ramifications for larger corporations where one day US citizen Sally is working for the US parent company in Chicago and the next day Sally is working for the US company's wholly-owned subsidiary incorporated in the UK.  One day Sally is an ITAR US person and the next day you need to treat her as an ITAR foreign person.

Now, to complicate things a bit, some companies take the approach that if you give ITAR technical data to Sally while she is in the United States and you are sure she will not export it or make it available to anyone in her foreign person company, maybe there is no ITAR export.  For example, maybe Sally comes to observe a test and absorbs ITAR technical data while doing so.  All she will tell her foreign person employer is "yes it passed the test" or "no, it did not pass the test." It could be that you could make a case that with specific procedures and assurances from Sally that she will never release the tech data to her employer which is a foreign person, then no ITAR export has taken place.  The ITAR is not crystal clear on this and some companies use this interpretation and some do not.

We always have our broker/forwarder present our licenses to Customs at export. What is the difference between that and having it lodged electronically? Is it possible for the exporter to lodge the license with Customs directly? In particular, I deal with DSP-73s mostly.

The DSP-73 must physically, not electronically, be presented to Customs at the time of temporary export and then again at the time the item returns to the United States.  Either you or your forwarder may do it.

I have been told by our DSS Industrial Specialist that one of our employees, who is a lawful permanent resident (from Guatemala), cannot work on the fabrication of components that are used on an ITAR restricted product. We manufacture ITAR and non ITAR controlled products and none of our products are classified. Is this correct?

The ITAR definition of "US person" includes permanent residents of the United States who are from Guatemala.  There are no ITAR restrictions that prohibit a "US person" from receiving defense articles. 

I suggest you ask your DSS person if there are other non-ITAR reasons that the person may not work on the item in question.

When supplying parts directly to the USAF for an FMS Sale is my company (or the machines shops we engage with) required to be ITAR compliant, or is this requirement waived when doing business with the US military?

I am not sure what "ITAR compliant" means. 

  • If you deliver ITAR-controlled parts to the US Air Force in the United States you do not have to get an export license or approval, even if you know the US Air Force will export those parts.
  • If you export ITAR-controlled parts to the US Air Force outside of the United States, you have to have an ITAR export license or approval.  Depending on a great many details you have not provided, an ITAR exemption might apply to your export--get all of your facts and then read the ITAR to find a specific exemption that applies.  If you do not find an exemption, then you must request authorization.  Generally DDTC approves licenses for export to the US Air Force relatively quickly.
  • Regardless of whether you export, any party who produces ITAR-controlled items must register with DDTC pursuant to Part 122 of the ITAR.  You must also comply with the record keeping requirements in Part 122 and any other applicable ITAR requirements.

As you can see, contrary to what common sense might tell you, the fact that you are dealing with the US Air Force generally does not relieve you from complying with applicable elements of the ITAR.  You cannot substitute common sense for the ITAR or for the IRS rules either, for that matter.

If I am shipping one of our products from the US to Canada or another country would the US be the country of origin?

The answer depends on the context in which you are asking this question. 

For the most part, US export controls do not get into the issue of country of origin for items being exported from the United States, except that there are some special rules for foreign origin items being returned to where they came from.  The definition of country of origin may vary from one set of international trade rules to another:  NAFTA rules and the Customs/import/tariff rules of other countries look at country of origin. 

The Foreign Trade Statistics Regulations which govern the submission of Electronic Export Information via the Automated Export System use this definition

Country of origin. The country where the goods were mined, grown, or manufactured or where each foreign material used or incorporated in a good underwent a change in tariff classification indicating a substantial transformation under the applicable rule of origin for the good. The country of origin for U.S. imports are reported in terms of the International Standards Organization (ISO) codes designated in the Schedule C, Classification of Country and Territory Designations.

You did not give us enough information about the items in question to tell you the country of origin for FTSR purposes.  All you told us is it is "one of our products."  Hopefully the above definition will help you make the determination for FTSR purposes.  If you are asking for the purpose of complying with other regulations, you should consult those regulations.

We have three buildings in the same town, all three within a one mile radius, same legal entity for all three.  Two are adjacent buildings on the same side of the same street, let's say 100 X and 101 X for simplicity, and the third, 200 Y, is two streets over, again, all three under the exact same legal entity.  The company is headquartered at 100 X.

For purposes of a DSP-5, and assuming the defense article may travel to all three, would all three have to appear?  Assume for sake of argument, the 200 Y address is not on a DSP-5, is there an argument given that it is in the same town, same legal entity, if the headquartered address is on the DSP-5? 

The 200 Y address is a new addition, so DSP-5s from 2009, 2010 etc. do not include it. Nothing, and I repeat, nothing has been transferred over to this address yet, but in preparation for this eventuality, I am wondering if I need a GC, or whether, given the proximity, same legal entity, etc., there may be some precedent or aspect of accepted practice to use.

The safe answer is to send in a GC asking 1) authorization to move all defense articles you have among all of the locations; and 2) authorization to move all defense articles you obtain the future among all of the locations.  If you get that approved, there will be no doubt.  When you send in your GC, you might want to ask DDTC in the letter to return your application without action if retransfer authorization is not required.

If DDTC were to approve only 1) but not 2), then I suggest you instruct all future US companies applying for licenses to export to you to state in the application that the items are destined for all of your locations.

All of the above assumes a GC is required.  As you probably already figured out, the ITAR is not crystal clear about this issue.  The definition of retransfer includes a change in end user or destination.  Even if an end user or end use does not change, a change in destination is a retransfer which requires authorization.  So, the question is:  Are each of your facilities separate destinations?  My first answer is yes they are separate destinations, because, for example, if you told me to go to building one and I went to building 3, I did not arrive at the proper destination.  If the two buildings were attached to each other, would they be the same destination?  If one building were 5 miles away would it be the same destination?  10 miles?  I err on the cautious side on this and say if a license says 123 Main St. the items may not go to 125 Main St. 

Some companies finesse this issue by using a general description that describes the address of multiple locations (e.g., "PLC Industrial Park" instead of 143 Industrial Park Drive and 523 PLC Avenue).  Particularly in TAAs and MLAs companies will go with something like "PLC Inc., all locations in Montreal and Quebec City," or even "all locations in Canada."  DDTC generally is willing to accept the all locations approach in TAAs and MLAs.  Like I mentioned above, if you instruct your US exporters to address this in their applications, you will be covered for future items if the US exporters are successful.

We design and manufacture thin film electronic components to customer specifications. All our products are EAR 99. If a non US manufacturer requires a circuit to be used in non US aircraft navigation (Foreign Military application), is this under the ITAR and classified as Designed for Military application even though it has no connection to US military applications?

If you are in the United States the ITAR controls many items designed for US or non-US military applications.  The ITAR likely controls a circuit specifically designed for a US or non-US military aircraft.  The ITAR does not distinguish its controls on US military versus non-US military applications.

On the other hand, if you are selling an off the shelf memory circuit that has various commercial applications and you are not modifying it for the military application, it is likely that the ITAR does not control the circuit unless it is super hardened or designed for satellite or space.

I am ready to file for a DSP-5 License. I have two questions. First, I need to lodge DSP-5 with the Control Boarder Protection Office at the port of EXPORT; my shipment will be leaving the US. I want to use USPS but they refuse to tell me the port of export it will go to. How can I get this information from them? They know nothing about the ITAR regulations and do not understand. I am under the impression the license MUST be lodged at the exact location it will exit the states. Second, in the ITAR it states that I must file AES AFTER I lodge my license with CBP. CBP has told me that I need to fill out the AES before lodging it with them because they have to have the number assigned to me through AES. Can you help me with these?

Are you exporting hardware, software, or technical data? 

Why do you want to us the US Postal Service?   

If you use the US Postal Service you have to mark the outside of the package with a notice that it contains ITAR items, which may make your package an attractive target for theft.

We have a TAA with our foreign customer. Can we take them for a tour in our plant when they visit us in US? Our products are ITAR controlled items.

I can never answer a question about a TAA unless I know what the TAA says and what exports of defense services and technical data are authorized.  Each TAA is unique and it authorizes what it and the DDTC approval says it authorizes.

If your TAA authorizes the export of defense services and technical data that will be exported during the plant tour, then your TAA authorizes the plant tour.  If, for example, your TAA does not authorize the export of defense services or tech data related to testing, then you have to make sure that none of that will be exported during the plant tour.

We are gun manufacturer and exporter in Turkey. We have been asked to produce some gun parts for a US company. We have all export licenses for gun and rifles. We have been asked to be ITAR compliant. As this is our first business with the US, we do not have any information on how to be ITAR compliant. Do we need to be registered with DDTC? If yes how do we apply to become registered with DDTC? What steps are needed?

If you want to comply with the ITAR the first step is to determine how the ITAR applies to your business activities. If you are in Turkey, you do not have to register with DDTC unless you are a broker as defined by the ITAR.

I cannot tell from your question which things you do are controlled by the ITAR. If you have US technical data it may be controlled by the ITAR or the US EAR. The items you produce using that technical data may be controlled by those US regulations. If you have US parts, components, materials, or finished products, those items may be controlled by those regulations.
Asking what you need to do to comply with the ITAR is like asking what you need to do to comply with the tax laws. The answer depends on what you do and many other factors. US regulations are complicated and far reaching and carry severe penalties. You need to understand the ITAR and your business to answer your question. Once you know the ITAR you can determine whether it makes sense for you to get involved in activities that are controlled by the ITAR.

It may be worthwhile for you to attend an ECTI seminar or E-seminar to learn how the ITAR impacts companies outside of the United States.

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