March 28th, 2022

The Differences Between ITAR and EAR

If you are in charge of a new company that will be involved in the import/export of products, then there are specific rules that you need to be aware of. Shipping items internationally and to military bases doesn’t work the same as shipping domestic packages, and if you fail to adhere to these rules, then your packages will likely fail to reach their destination. When dealing with international shipments, you must adhere to rules set forth by the ITAR as well as the EAR, depending on what you’re going to be exporting. ITAR stands for International Traffic in Arms Regulations, and EAR stands for Export Administration Regulations. The ITAR is an agency governed by the U.S. Department of State (DDTC,) and it is their responsibility to regulate defense-related items in regards to their sale, manufacturing of, and distribution. Many companies mistakenly believe that their articles aren’t subject to enforcement under the ITAR, but an item even remotely related to defense could be subject. This could include items used for imaging, satellites, and much more. It is certainly worth checking with the ITAR to determine if your product is considered defense-related before automatically assuming that it isn’t. Failing to comply with ITAR regulations could result in hefty fines and penalties, as well as loss of privileges and even possibly your business. The EAR is governed by the United States Department of Commerce, and they’re responsible for regulating all other shipments that aren’t defense-related. These items must be considered commercial, for dual-use purposes, information and technology. However, be sure that you understand that some items don’t fall under the regulations of the ITAR or the EAR, but there are still other agencies that the items might fall under, such as the FDA, USDA, NRC, among many others. It is your responsibility to ensure that you’re aware of which agencies your shipments fall under, so you can obtain the appropriate certificate. ITAR

Is Export Controlled the Same as ITAR?

Despite the many similarities, ITAR and EAR control export in different manners. For instance, if your item meets the criteria for being managed by the ITAR, then you won’t have to worry about it being managed by the EAR as well, and vice versa. While each agency has its own list of items that they’re responsible for managing, these lists are not exhaustive, which is why you must ensure that you make the necessary clarifications before proceeding with any shipments. The EAR manages items that are considered exclusively for the military, as well as those that have dual uses. Dual-use items simply means that an item can be used by both the military and civilians. Alternately, the ITAR regulates items that are exclusively for military use, as well as any defense related items, as these are riskier when it comes to national security. Many businesses just starting out in the export industry believe that the ITAR and EAR regulate only tangible items, but this is not true. Their lists also include certain services, software, and even technical data. As you can see, the regulations of the ITAR and EAR are not only very complicated and confusing, but they can be quite overwhelming, especially if you don’t have experience dealing with these agencies. Fortunately, there are experienced and reputable agencies like Kaiser & Johnson who can manage all your international and military shipments. Instead of stressing yourself out while trying to determine if you’re following all the necessary regulations of the ITAR as well as the EAR, including the completion of customs forms, the packaging of your items, and everything else involved in international shipments, Kaiser & Johnson can manage everything for you, from A to Z. There will then be no need to waste time trying to figure out the shipping process of your items, and you can focus on completing various other essential business duties.