The Department of Defense has strict standards for contract packaging and warehousing. These requirements dictate everything from package markings to inspections and facility security. It makes perfect sense that there are clear directives for these environments, of course. We want to ensure that products that are stored for the military are secure, accounted for and delivered in perfect working order.
This is where ITAR (International Traffic in Arms Regulations) compliance is needed. Since the United States government requires manufacturers, brokers, exporters and defense service providers to be ITAR compliant, it’s necessary for various parts of a supply chain to be compliant as well. For companies with military contracts, partnering with an ITAR controlled facility is absolutely necessary.
What Is an ITAR Controlled Facility?
All manufacturers, exporters, consultants, distributors and brokers for defense services or technical data must be in compliance with ITAR. Regulations for compliance cover the scope of military shipments, data access, control measures and licensing, as well as technical data and information security.
An ITAR compliant facility is one where the operator is registered for ITAR and has an established compliance program with all the required controls. This means that ITAR controlled facilities have processes and equipment already in place to ensure that all military-grade shipping and packing needs are met. For example, advanced technology like ERP (enterprise resource planning) software is commonly used to track ITAR controlled items closely throughout the supply chain.
ITAR Facility Requirements
The ITAR registration process requires the following steps: payment of applicable registration fees, completed DS-2032 Statement of Registration form and submission of supporting documentation. In addition to registration, facilities that meet this initial registration obligation must also ensure that they stay in compliance.
An ITAR facility has a compliance program that addresses the following components:
- Risk assessments
- Defined roles and responsibilities
- Written procedures and policies
- Established record-keeping
- Continual training
- Commitment to management
- Periodic audits
ITAR facility security requirements can be met by designing a security policy that is continually updated to current ITAR compliance needs. These security policies include network and physical security as well as an incident response plan in case of a breach.
Why Choose an ITAR Controlled Facility?
Outsourcing military and defense packaging and warehousing services reduces stress and eliminates the risk of consequences from non-compliance. If you’ve got a military contract, your packaging and shipment obligations are more in-depth than for normal goods. Properly addressing those obligations requires experts with the processes, policies and manpower to get it right the first time.
Military shipping and packaging requirements can be overwhelming to navigate and the consequences of non-compliance for government contracts can be significant. Those in violation of ITAR regulations can be punished in both civil and criminal court with penalties that can include a fine of as much as $1,000,000 and a 10-year prison sentence.
Trust an ITAR compliant facility to use their expertise to save you both time and money. At NewStream Enterprises, LLC, we’re an ITAR certified facility with military packaging, shipping and warehousing solutions that can be customized for your unique needs. Keeping current on all the different military packaging requirements is our job. We take care of making sure we dot every “i” and cross every “t” so that you don’t have to.