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ITAR Violations More Costly than Compliance

If you’re in the defense industry and aren’t sure you’re in compliance with International Traffic in Arms Regulations (ITAR), Darling Industries can tell you why your organization best double, triple and quadruple check your operations. Earlier this year, Darling Industries reached a $400,000 settlement with the U.S. government after self-reporting numerous ITAR violations. The ITAR violations came to light as a result of a self-initiated compliance program review that started in 2014. It was determined that for decades, the company failed to obtain or attempt to obtain the proper licenses, and there was no documented export compliance program or method to determine the export jurisdiction of the products it sold.

The violations led to the first consent agreement related to an ITAR violation posted by the U.S Department of State, Directorate of Defense Trade Controls in 2019. The agreement lasts 18 months and requires the president of the company to act as an internal special compliance officer to oversee ITAR compliance, to supervise and verify export classification of all items it manufactures, and to perform a compliance audit conducted by an outside counsel or consultant with ITAR expertise that the DDTC must approve.

As Darling Industries would tell you, whatever the hassle of becoming ITAR compliant, it’s considerably smaller than the consequences of not doing it. To get started on your journey with ITAR compliance, give 2W Tech a call today and let us help assist you with our Cybersecurity Compliance Program.

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