Violations of the International Traffic in Arms Regulations (ITAR) can result in severe consequences. ITAR is enforced through criminal or administrative prosecution, fines, penalties, and debarment (exclusion) from exporting defense articles, services, and information.
For individuals, criminal prosecutions under the ITAR define the worst-case enforcement reaction because they can result in incarceration and substantial fines. However, debarment can affect, even more profoundly, companies that rely on exports. Unlike a fined and incarcerated individual, those companies may not be able to survive the debarment penalty.
The number of exporters debarred each year for violations of the ITAR varies. The ITAR is administered and enforced by the U.S. Department of State’s Directorate of Defense Trade Controls (DDTC). The DDTC does not publicly release data on the exact number of debarments for ITAR violations each year. Still, a review of announced cases indicates that the number can range from a few to several dozen cases.
As a result, companies need to understand and comply with ITAR regulations to avoid potential debarments. The consequences are too severe to ignore.
RegDOX is dedicated to working with companies so that they can understand and comply with the ITAR. Contact us today and see how we can help.
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