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What Are the International Traffic in Arms Regulations (ITAR)?
The International Traffic in Arms Regulations (ITAR) control the export of defense-related articles, services, and technical data from the United States. ITAR affects thousands of businesses across the defense industrial base, from major contractors to component suppliers and software developers.
ITAR violations can result in severe penalties, including fines and potential criminal charges, so companies working with defense-related items or technical data must understand and implement specific compliance measures to avoid violations.
In this article, we explore the fundamentals of ITAR compliance, particularly as it relates to information security. We also take a look at solutions DiB companies can use to streamline their ITAR compliance programs.
What Is the ITAR?
ITAR is a regulatory framework that controls the export of defense-related items from the United States. Its main objective is to prevent the export of items and information that could be harmful to national security and U.S. foreign policy objectives.
The Department of State’s Directorate of Defense Trade Controls (DDTC) administers ITAR and oversees export controls that encompass three main areas: defense articles (physical items like weapons and components), defense services (including technical assistance and training), and classified and unclassified technical data (blueprints, specifications, and documentation).
ITAR’s scope centers on the U.S. Munitions List (USML). The USML is a comprehensive catalog of defense articles and services divided into 21 categories. It covers a wide range of military technologies, from firearms and ammunition to satellites and cryptographic systems. Each category defines specific items subject to strict export controls.
ITAR Meaning and Scope
ITAR controls extend far beyond physical defense articles. A manufacturing blueprint, a technical manual, or even a conversation about design specifications might constitute controlled technical data under ITAR. The regulations cover information required for the design, development, production, manufacture, assembly, operation, repair, testing, maintenance, or modification of defense articles.
Digital information carries particular compliance obligations. ITAR-controlled technical data exists in many forms across modern business operations: CAD files, engineering specifications, research data, maintenance documentation, and even email discussions about controlled technologies. Companies must ensure this data is protected, whether it resides in cloud storage, flows through collaboration tools, or sits in email inboxes.
Defense services also fall under ITAR control. A U.S. person who assists a foreign person in the design or development of a defense article performs a controlled defense service—even if no physical items change hands. Technical discussions, training sessions, and consulting services all require careful evaluation for ITAR compliance.
What Is a Deemed Export?
A deemed export occurs when ITAR-controlled technical data is released to a foreign person within the United States. For example, allowing a foreign employee access to controlled technical data is a deemed export. Unless an export license or exemption is in place, it could constitute an ITAR breach.
Showing controlled documentation to a foreign visitor or allowing a foreign contractor to view controlled specifications also counts as deemed exports. Companies must treat domestic transfers with the same care as physical exports across borders.
Core ITAR Requirements
Organizations working with defense articles or technical data must meet three fundamental ITAR requirements: registration, licensing, and data security.
Registration with DDTC
Manufacturers and exporters of defense articles or services must register with the Directorate of Defense Trade Controls before applying for licenses or using exemptions.
Export Licensing
ITAR requires export licenses for international transfers of USML-listed items and technical data. The definition of “export” includes:
- Physical shipment of defense articles
- Technical data disclosures to foreign nationals
- The use of cloud storage accessible from prohibited countries
Data Security Requirements
ITAR mandates specific security controls for electronic technical data:
- FIPS 140–2 compliant or equivalent encryption for data transmission and storage,
- U.S.-based servers for cloud storage, unless unclassified data is stored with compliant end-to-end (E2EE) encryption, and the encryption keys are under the exclusive control of U.S. citizens.
- Access restrictions preventing foreign national exposure.
- Comprehensive audit trails tracking data access and movement.
Organizations must evaluate cloud collaboration tools carefully. Standard commercial cloud services often fail to meet ITAR requirements for access control and data sovereignty.
ITAR vs EAR: Key Differences in Arms Regulations
The United States maintains two distinct export control frameworks: ITAR for military items and the Export Administration Regulations (EAR) for dual-use technologies. ITAR applies to items specifically designed for military applications. EAR covers items with both commercial and military uses.
The key distinction lies in the control lists. ITAR-controlled items appear on the USML, focusing on inherently military technologies like weapon systems, military electronics, and specialized aerospace components. EAR-controlled items appear on the Commerce Control List (CCL), covering dual-use items like commercial satellites, industrial machinery, and general-purpose software.
The regulatory bodies also differ. The DDTC administers ITAR, reflecting the military and foreign policy implications of defense exports. The Commerce Department’s Bureau of Industry and Security (BIS) administers EAR, aligning with its focus on commercial trade. ITAR generally imposes stricter controls and licensing requirements than EAR.
Who Needs to Be ITAR-Compliant?
ITAR compliance requirements extend throughout the defense supply chain. Companies must evaluate their ITAR obligations if they:
- Manufacture or export defense articles
- Provide defense services or technical assistance
- Handle technical data about defense articles
- Broker arms deals between parties
- Supply components for ITAR-controlled products
- Store or transmit ITAR-controlled technical data
Subcontractors and vendors face the same compliance obligations as prime contractors. A company producing an ITAR-controlled component must meet the same data security requirements as a major defense contractor. Software developers writing code for military systems must follow ITAR rules for technical data protection. Cloud service providers storing ITAR-controlled information must implement ITAR-compliant security controls.
Supply chain partnerships impose a complex web of compliance obligations. Prime contractors must verify their suppliers’ ITAR compliance. Suppliers must ensure their sub-tier vendors maintain appropriate controls. Organizations sharing technical data must validate the ITAR compliance of their collaboration tools and communication systems.
What Are The Most Common Data Protection ITAR Violations?
ITAR violations are often the result of unintentional actions rather than deliberate attempts to export controlled data. Organizations frequently violate ITAR requirements when employees use familiar but non-compliant tools and processes to handle technical data.
Unauthorized Transmission of Technical Data
Organizations frequently violate ITAR by sending technical data through unsecured channels. Employees send CAD files via personal email, share design documents through consumer cloud storage, or discuss technical specifications over standard messaging apps. Each unsecured transmission risks the unauthorized export of controlled technical data.
Non-Compliant Collaboration Tools
Standard commercial collaboration platforms often lack required ITAR security controls. Teams violate ITAR by storing technical data in non-compliant cloud services, using public file-sharing platforms, or collaborating through consumer video conferencing tools. Many popular business tools store data on foreign servers or allow access from prohibited countries. It’s worth noting that “obtaining contractual assurances that the data would not be stored in the Excluded Countries would not provide a safe harbor for the cloud customers.”
Improper Identity and Access Management
Poor identity and access management (IAM) creates a high risk of deemed export violations. Organizations need robust IAM systems to control access to ITAR-controlled technical data. Without proper IAM controls, companies struggle to:
- Verify and track the nationality of employees, contractors, and visitors
- Enforce role-based access controls for technical data
- Prevent unauthorized access to shared resources
- Generate audit trails of data access
- Revoke access quickly when employment status changes
Legacy access management approaches like manual spreadsheets and shared network folders create compliance gaps. Modern IAM solutions automate the verification of user identities, enforce consistent access policies, and maintain detailed audit logs.
Insecure Network Access
Accessing ITAR-controlled data from unauthorized networks or devices creates export violations. Common scenarios include:
- Employees downloading technical data to personal devices
- Accessing controlled information through public Wi-Fi networks
- Using unauthorized remote access solutions
- Failing to encrypt data during transmission
How to Mitigate ITAR Compliance Risks
Organizations can reduce ITAR compliance risks by implementing comprehensive technical and administrative controls. Effective risk mitigation focuses on three key areas: encryption, access control, and employee training.
Implement Strict Encryption Protocols
ITAR requires end-to-end encryption for controlled technical data. Organizations must:
- Deploy FIPS 140–2 compliant encryption for data storage and transmission
- Maintain exclusive control over encryption keys
- Ensure data remains encrypted throughout its life cycle
- Conduct regular audits of encryption effectiveness
Restrict Access to Compliant Tools and Networks
Access control measures protect against unauthorized data exposure:
- Enforce geographic restrictions on data storage and access
- Implement multi-factor authentication for all users
- Apply least-privilege access principles
- Evaluate third-party tools against ITAR requirements
- Document and track all access to controlled technical data
Train Employees on Secure Data Handling
Employee training forms the foundation of effective compliance:
- Teach identification of ITAR-controlled technical data
- Establish clear procedures for secure data sharing
- Provide role-specific guidance for handling controlled information
- Document all training activities
- Emphasize individual responsibility for compliance
Organizations should integrate these controls into a documented compliance program aligned with DDTC guidelines. Regular audits help verify the effectiveness of encryption, access controls, and training measures.
How Exostar Managed Microsoft 365 Enables ITAR-Compliant Collaboration
Exostar’s Managed Microsoft 365 provides a secure environment for handling ITAR-controlled technical data. Built on Microsoft’s GCC High cloud infrastructure, the platform ensures data sovereignty with U.S.-based storage, strict access controls, compliant encryption, multi-factor authentication, and advanced identity validation and access management to prevent unauthorized access.
Want to learn how Managed Microsoft 365 can strengthen your ITAR compliance? Talk to an ITAR compliance specialist today.
