The International Traffic in Arms Regulations (ITAR), administered by the Department of State, requires companies to have one or more ITAR empowered officials to execute ITAR licensing and to approve the use of ITAR exemptions for ITAR involved transactions, including marketing and demonstration activities. Failure to comply with the ITAR requirements for empowered official exposes a company to possible fines and penalties.
Knowing exactly what an ITAR empowered official (EO) does and who can fill the role that role is essential for both the company and the individual fulfilling this role. An ITAR Empowered Official must be an experienced, well-trained, competent person in a leadership role with a more than superficial understanding of the International Traffic in Arms Regulations and the Arms Export Control Act.
This is why it’s important to have a company that understands ITAR help your company and train your designated ITAR Empowered Official.
ITAR Empowered Official Requirements
International trade is a critical element for success for many businesses. Companies involved in international business are required to comply with various U.S. export control regulations. If your in the defense business, its probable that your company must comply with the ITAR, which is the strictest set of U.S. export regulations pertaining to the export of certain military, satellite and intelligence equipment, technical data, software, and services. Thus it’s important to ensure you have the right ITAR empowered official on board to ensure the company compliance with these regulations.
The ITAR identifies the requirements for being an ITAR empowered official, as follows:
(a) Empowered Official means a U.S. person who:
- Is directly employed by the applicant or a subsidiary in a position having authority for policy or management within the applicant organization; and
- Is legally empowered in writing by the applicant to sign license applications or other requests for approval on behalf of the applicant; and
- Understands the provisions and requirements of the various export control statutes and regulations, and the criminal liability, civil liability, and administrative penalties for violating the Arms Export Control Act and the International Traffic in Arms Regulations; and
Has the independent authority to:
- Inquire into any aspect of a proposed export, temporary import, or brokering activity by the applicant;
- Verify the legality of the transaction and the accuracy of the information to be submitted; and
- Refuse to sign any license application or other request for approval without prejudice or other adverse recourse.
The ITAR empowered official you choose for this important position must understand the potential civil and criminal penalties associated with export control statute violations. FD Associates is an experienced team of ITAR consultants and attorneys who can help you company when it comes to ITAR-related questions, licensing, compliance and training.
ITAR Empowered Official Authority
ITAR Empowered Official responsibilities include making certifications regarding the eligibility of the parties to ITAR transaction and the payments of fees or commissions associated with the ITAR transaction on both export license applications and ITAR exemption use on behalf of the company. Once an ITAR Empowered Official is properly trained in the basic fundamentals of the ITAR and completes training regarding their obligations that will allow them to make certifications on ITAR licensing and ITAR exemptions, they will feel empowered to inquire into any aspect of any proposed export and verify the accuracy and legality of the information being used in an ITAR license application or ITAR exemption. The person empowered by the company to sign export licenses should be able to refuse to sign any license application without fear of retribution from their company.
Contact Us Today
ITAR compliance is a crucial aspect of international trade that companies must understand to thrive in today’s global marketplace. FD Associates’ ITAR Consultants and Attorneys are professionals with decades of experience. The FD Associates team is comprised of consultants and attorneys with backgrounds at major corporations, responsible for trade compliance oversight, who have lead and supporting audits of a prime contractor with domestic and worldwide locations over a multi-year period. Our export experts provide a wide range of training tailored to your company's ITAR needs. Browse upcoming training opportunities or contact us to discuss your specific training needs.