August 31st, 2012
Using an ITAR Exemption
The first of three installments…
Original Equipment Manufacturers, Special Process/Testing and sub-tier suppliers who participate in international transactions of USML items, beware!
Scenario:
An non-U.S. company located outside of the U.S. Territory has requested to send your company parts for inspection. Your goal is to expedite the process and use an exemption for temporarily importing the parts: Imports for Overhaul, Service and Repair – ITAR § 123.4(a)(1).
In order to assure compliance the Compliance Officer or Empowered Official should follow these steps. Assuming that your organization is currently registered with the DDTC as a Manufacturer, prior to import the organization must understand the transaction in which it is participating:
- First determine if your organization or the potential customer is prohibited in any way in participating in this transaction (Is the customer on the Denied Parties List?).
- Verify that the inspection requested is the only process being performed while the part is within the U.S. (If the part is being enhanced versus only inspected, the process for import and export will change).
- Verify that the part will be returned to the country from which it was imported (This process requires the part to be returned from which is was imported).
- Determine if any information to be included on the “inspection report” does not contain Technical Data that is being newly generated as a result of the inspection process (Some Test Results and Test Procedures can contain Technical Data which will require a license to Permanently Export).