Agreement Guidelines for ITAR Compliance

The International Traffic in Arms Regulations (ITAR) were put in place to control the export of sensitive military technologies and information from the United States. As such, any company involved in the manufacture, sale, or distribution of defense articles must comply with the ITAR guidelines.

One of the most critical aspects of ITAR compliance is ensuring that all agreements adhere to the regulations laid out in the ITAR. ITAR compliant agreements must be written with care, and all parties should understand the restrictions and guidelines involved in the export of defense articles.

Here are a few guidelines to ensure your agreements are ITAR compliant:

1. Identify the Parties Involved

It is imperative to identify all the parties involved in the agreement. Businesses that are subject to ITAR usually have contracts with multiple parties throughout the supply chain. An agreement should include the names and addresses of all the parties, along with their roles and responsibilities.

2. Define the Scope of the Agreement

Define the scope of the agreement, including the specific articles or services being provided. The agreement should outline the technical data, defense articles, or services provided and how they will be used. It should also include the export controls and restrictions for each item.

3. Clearly State the Restrictions

All ITAR compliant agreements must clearly state the restrictions involved in exporting defense articles or services. These restrictions must be well understood by all parties. The agreement should also include a clause prohibiting the export of the articles or data by unauthorized parties.

4. Include Recordkeeping Requirements

The ITAR requires a strict record-keeping process when dealing with technical data or defense articles. All parties involved in the agreement should agree to keep records for a specified period, usually five years. The agreement should also outline the process for providing these records to the U.S. Government if requested.

5. Add a Termination Clause

An ITAR compliant agreement should have a termination clause that outlines the process for ending the agreement. Termination can occur due to several reasons, such as non-payment, breach of contract, or change of legal status. This clause should also define the process for returning or destroying technical data or defense articles if the agreement is terminated.

Conclusion

The ITAR provides strict guidelines for exporting defense articles and technical data from the United States. By following the guidelines outlined above, companies can ensure that their agreements are ITAR compliant and avoid potential legal issues. Remember to seek legal advice to ensure that your agreements are up to date with the latest ITAR regulations.