Reminder: Suppliers Must Be Authorized By DDTC to Manufacture Defense Articles

[This is a guest post provided by Mark Stevens of Aerospace Exports Inc.]

This is a brief reminder that under the International Traffic in Arms Regulation (ITAR), aerospace and defense organizations must verify that all of their sub-tier suppliers engaged in manufacturing defense articles are registered by the US Dept. of State Directorate of Defense Trade Controls (DDTC). The law reads as follows:

§ 122.1(a) Any person who engages in the United States in the business of manufacturing or exporting or temporarily importing defense articles, or furnishing defense services, is required to register with the Directorate of Defense Trade Controls under § 122.2. For the purpose of this subchapter, engaging in such a business requires only one occasion of manufacturing or exporting or temporarily importing a defense article or furnishing a defense service. A manufacturer who does not engage in exporting must nevertheless register.

A supplier that does not register is in violation per:

§ 127.1(b)(3) – To engage in the United States in the business of either manufacturing or exporting defense articles or furnishing defense services without complying with the registration requirements. For the purposes of this subchapter, engaging in the business of manufacturing or exporting defense articles or furnishing defense services requires only one occasion of manufacturing or exporting a defense article or furnishing a defense service.

Any organization that engages a supplier who is not DDTC registered may be in violation per:

§ 127.1(d) A person who is ineligible pursuant to § 120.16(c) of this subchapter, or a person with knowledge that another person is
ineligible pursuant to § 120.16(c) of this subchapter, may not, directly or indirectly, in any manner or capacity, without prior disclosure of the facts to and written authorization from the Directorate of Defense Trade Controls:

(1) Apply for, obtain, or use any export control document as defined in § 127.2(b) for such ineligible person; or

(2) Order, buy, receive, use, sell, deliver, store, dispose of, forward, transport, finance, or otherwise service or participate in any manner in any transaction subject to this subchapter that may involve any defense article, which includes technical data, defense services, or brokering activities, where such ineligible person may obtain any benefit therefrom or have any direct or indirect interest therein.

§ 127.1(e) No person may knowingly or willfully attempt, solicit, cause, or aid, abet, counsel, demand, induce, procure, or permit the commission of any act prohibited by, or the omission of any act required by 22 U.S.C. 2778, 22 U.S.C. 2779, or any regulation, license, approval, or order issued thereunder.

Please contact AEI for any questions or concerns., or visit the Aerospace Exports Inc. website.