Employers Must Balance ITAR Compliance with Anti-Discrimination Laws

We’ve blogged before about national origin discrimination within the workplace and therefore the consequences employers may face for violating anti-discrimination laws. Employers involved within the manufacturing or distribution of products involving the defense of the us must also suits certain federal regulations like The International Traffic and Arms Regulations (ITAR), which restricts employment to U.S. persons on ITAR sensitive matters. As discussed below, complying with ITAR while avoiding discrimination are often challenging for a few employers, particularly when the protected material involves digital data.

What is ITAR?

ITAR restricts the import and export of things and services associated with the defense of the us. The U.S. government requires all manufacturers, exporters, brokers of defense articles, and IT data to suits the provisions of ITAR or face strict penalties. samples of the kinds of articles falling under the extensive purview of ITAR include weapons, military hardware, explosives, rocket launches, combat vehicles, and technical data, to call a couple of. The Export Administration Regulations (EAR) involves the regulation of products and services produced for commercial use which will even have a military purpose. EAR-regulated items include GPS, weather radars, and high-performance computers. To be ITAR compliant, an employer/manufacturer must register with the U.S. State Department’s Directorate of Defense Trade Controls. Once approved, the onus is on the employer/manufacturer to make sure and certify continued compliance with ITAR.

What is a “U.S. Person” As Defined Under ITAR?

U.S. Employers must take care to not assume that only U.S. citizens are allowed to figure on ITAR-sensitive matters. consistent with ITAR 120.15 and EAR Part 772, a “U.S. Person” is defined because the following:

• a person granted U.S. Citizenship

• a person granted U.S. permanent resident

• a person who is granted status as a “protected person”

• Any corporation, business, or group incorporated within the U.S. under U.S. law

• Any employee of the us government

If an employer wants to rent an employee who doesn't fall under one among the above categories, there are several different options to explore. One such avenue is to possess the worker or prospective employee become a U.S. citizen. If that's not a viable option, an employer can apply for an export license. With an export license, the worker would then be ready to handle ITAR-sensitive material.

Obtaining an export license will take some work on a part of the employer, however, and will be time-consuming. a substantial amount of paperwork will get to be completed, and therefore the employer should allow time for the govt to approve or deny the appliance. Employees from any of the countries on ITAR’s “prohibited countries” list below are unlikely to be granted an export license.

What Countries are “Prohibited” by ITAR?

The U.S. Department of State maintains an inventory of “prohibited” countries under ITAR, which is amended from time to time. the present list of prohibited countries includes Afghanistan, Belarus, China, the Central African Republic, Cuba, Cyprus, the Democratic Republic of Congo, Eritrea, Haiti, Iran, Iraq, Lebanon, Libya, North Korea, Somalia, Syria, Venezuela and Zimbabwe, Sudan, and South Sudan. There are certain exceptions, however, and export licenses should be allowed surely activity like peacekeeping support operations, humanitarian efforts, and traditional weapons destruction.

What are the Penalties for Violating ITAR?

The consequences of violating ITAR are significant and potentially devastating to employers. ITAR violations may result in civil and/or criminal penalties. Civil penalties include fines of over $1 million per violation and debarment, which involves being prohibited from engaging in any future transactions subject to ITAR. Criminal penalties can include fines of $1 million or up to twenty years’ imprisonment also as disbarment. Other consequences include being subject to further compliance oversight, the denial of certain licenses, and lost business opportunities.

FD Associates is a team of more than 100 years of combined experience which can help you with your ITAR compliance.

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