Compliance
ITAR and EAR Export Compliance
The International Traffic in Arms Regulations (ITAR) govern the export of defense articles and services on the United States Munitions List (USML) and are administered by the State Department's Directorate of Defense Trade Controls. The Export Administration Regulations (EAR) govern dual-use items on the Commerce Control List and are administered by the Bureau of Industry and Security. Forward Systems Group is DDTC registered (M28606) and manages licensing, classification, and documentation under both regimes.
How Forward Systems Group runs itar & ear compliance
Our experienced personnel possess in-depth knowledge of U.S. export control laws and regulations governing the import, export and transshipment of sensitive and restricted materials. We maintain full compliance with all requirements set forth by DDTC, BIS and CBP. Because we also move the freight, a classification problem surfaces before the cargo does rather than after.
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Determine jurisdiction
USML or CCL. We run the commodity jurisdiction question first, because an item misclassified as EAR99 that was actually USML is the most common and most expensive error in defense trade.
- 2
Secure the authorization
DSP-5 for permanent export, DSP-61 for temporary import and transshipment, DSP-73 for temporary export; BIS licences and licence exceptions on the dual-use side. TAAs where defense services or technical data are shared.
- 3
Work the provisos
Licences come with conditions. We work the provisos, screen the parties against the consolidated U.S. government lists, and file the AES/EEI record in the correct party's name.
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Keep the record
Five-year retention under 22 CFR 122.5, with the licence, the invoice, the airway bill and the end-user statement all describing the same commodity in the same terms.
FSG co-hosted the inaugural Spanish-language seminar on ITAR, EAR and U.S. Customs regulations with the U.S. Department of State, the Department of Commerce, the South Florida District Export Council and representatives from CBP. It was built for Latin American defense contractors moving controlled items.
ITAR: defense articles on the USML
If an item is on the United States Munitions List, ITAR applies. It does not matter who is shipping it, where it is going, or how commercial the transaction feels. That catches far more than weapons. Technical data, defense services, and components designed or modified for a military application all sit inside the boundary.
The practical requirements are registration, authorization, and recordkeeping. Anyone who exports or brokers defense articles must be DDTC registered; every export needs an approved license or a documented exemption; and the record must survive five years of scrutiny.
- DDTC registration under 22 CFR Part 122
- USML categorization and commodity jurisdiction (CJ) requests
- DSP-5 permanent export, DSP-61 temporary import, DSP-73 temporary export
- Technical Assistance Agreements and Manufacturing License Agreements support
- Exemption analysis and documentation
- Five-year recordkeeping under 22 CFR Part 122.5
EAR: dual-use items and the Commerce Control List
Items that are not on the USML fall under the EAR instead. Most are designated EAR99, but a meaningful share carry an Export Control Classification Number that triggers a licensing requirement depending on destination, end user, and end use.
The trap is assuming EAR means unrestricted. A 600-series ECCN covers items moved off the USML during export control reform, and it carries obligations much closer to ITAR than to ordinary commercial freight.
- ECCN classification against the Commerce Control List
- Country Chart analysis and license determination
- 600-series and 9x515 (spacecraft) handling
- License exception qualification (STA, GOV, TMP, RPL)
- Restricted party screening against consolidated U.S. government lists
- End-use and end-user statements
Where compliance and freight meet
Most export violations are not smuggling. They are administrative: an item misclassified as EAR99 that was actually USML, a license that expired before the last partial shipment moved, a value on the commercial invoice that does not match the value on the license.
Because we handle both the licensing and the freight, those mismatches surface before the cargo does. That is the single largest practical advantage of consolidating compliance and transport under one provider.
ITAR & EAR Compliance: frequently asked questions
What is ITAR compliance?
ITAR compliance means meeting the requirements of the International Traffic in Arms Regulations: registering with the Directorate of Defense Trade Controls if you manufacture, export, or broker defense articles; obtaining an approved license or documented exemption before every export; screening end users; and maintaining records for five years. Violations carry civil penalties over one million dollars per violation and potential criminal liability.
What is the difference between ITAR and EAR?
ITAR covers defense articles and services on the United States Munitions List and is administered by the State Department. EAR covers dual-use and commercial items on the Commerce Control List and is administered by the Commerce Department. An item falls under one regime or the other, never both. Working out which one applies is called commodity jurisdiction.
Do I need to be DDTC registered to export defense articles?
Yes. Any U.S. person who manufactures, exports, temporarily imports, or brokers defense articles or defense services must register with DDTC under 22 CFR Part 122, and registration must be current at the time of export. Forward Systems Group holds DDTC registration M28606.
What is a DSP-61?
A DSP-61 is a license for the temporary import of unclassified defense articles into the United States. It is used when foreign-origin defense equipment transits U.S. territory on its way to a third country, or comes in for repair before being returned.
Need this confirmed against your contract?
Send us your clause list, DD Form 254, or licence position and we will confirm scope against your specific requirement before you commit to a shipment.