How a Contract Manufacturing Service Partner’s ITAR Registration Contributes to an OEM’s Success

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For OEMs in the defense, aerospace and related industries, the protection of data related to the sourcing, manufacturing and distribution of controlled technologies is imperative for national defense.

Defining the ITAR

According to the U.S. Department of States website, The ITAR, or The International Traffic in Arms Regulations (ITAR) & United States Munitions List (USML), governs the manufacture, export, and temporary import of defense articles, the furnishing of defense services, and brokering activities involving items described on the USML(ITAR section 121.1).

Why Should an OEM Care about ITAR Compliance?

  1. Compliance Assurance: As an ITAR-registered company, compliance to specific regulations pertaining to the protection of controlled technologies and preventing the transfer of this information to any foreign nationals or entities are instilled in every part of the manufacturing and PCB layout process.
  2. Heightened Security Protocols: Security breaches in electronics manufacturing can have far-reaching consequences, particularly in industries dealing with sensitive technologies. ITAR-registered electronics manufacturing contractors implement rigorous security protocols to protect intellectual property and controlled information. From physical security to access controls and employee training, measures are implemented to maintain the integrity of sensitive data.
  3. Reliability and Reputation: A higher level of confidence can be placed in an electronics manufacturing partner that is ITAR registered to protect your sensitive data that in turn protects the OEMs brand and mitigates risk. This plays into the necessity for a reliable supply chain that could impact their operations and customer obligations.
  4. Reliable Supply Chain: ITAR-registered manufacturers prioritize reliability and efficiency in their supply chain operations, with the goal of consistent and timely delivery of components and assemblies to meet the OEM’s deadline. OEMs rely on their electronics manufacturing partner to balance strict security protocols with demanding delivery schedules.
  5. Specialized Knowledge: Earning ITAR registration requires specialized training and knowledge with respect to defense, aerospace and related industry regulations governing these sectors. ITAR-compliant electronics manufacturers possess technical capabilities and resources to meet the necessities of these industries that have high-reliability system requirements.

What Does it Take to Become ITAR Registered?

  • Determine Eligibility: Companies engaged in the manufacture, export or brokering of defense-related items covered by ITAR must determine their eligibility for registration.
  • Submit Registration Application: Eligible companies must submit a registration application to the DDTC through the Defense Export Control and Compliance System (DECCS) portal. The application requires detailed information about the company’s ownership, structure, business activities and compliance practices.
  • Pay Registration Fee: Companies are required to pay an annual registration fee to the DDTC upon submitting their registration application. The fee amount varies depending on the size and nature of the company’s operations.
  • Undergo Compliance Review: The DDTC conducts a thorough review of the registration application to ensure that the company meets the requirements for ITAR registration. This may involve background checks, site visits and assessments of the company’s compliance program.
  • Receive Registration Approval: Upon successful completion of the registration process and compliance review, the company receives approval from the DDTC and is issued an ITAR registration code. The company is then authorized to engage in ITAR-controlled activities subject to ongoing compliance obligations.

Partnering with an ITAR-registered contract manufacturer provides OEMs with the assurance of regulatory compliance, heightened security measures, a reliable supply chain and specialized knowledge. By leveraging the capabilities and resources of an ITAR-registered manufacturer, OEMs can focus on innovation, growth and meeting the evolving needs of their customers with confidence. To learn more about how ACDi can help meet the contract manufacturing requirements of our aerospace and defense OEMs, contact us.