ITAR and Export Control Basics

How do I know a product is export controlled?

PEI-Genesis will inform you if you request a controlled product from us. Controlled items are also identified on MyPEI using a red message box.

In the United States, the Directorate of Defense Trade Controls (DDTC) has the final determination if a product is controlled. In the UK it is the BERR, however, most manufacturers are able to self-classify their items by reviewing International Traffic in Arms Regulations (ITAR) §§120.2, 120.3, and 120.4, which relates to the Commodity Jurisdiction process and ITAR §121.1 (the U.S. Munitions List or USML). Our manufacturers identify controlled items and PEI-Genesis has both electronic and procedural systems in place to notify you if you are requesting a controlled item. See more below in the PEI-Genesis ITAR section of this page.

What are the Export Control Laws and who regulates them?

In the United States applicable laws and regulations include the Export Administration Regulations (“EAR”) established under the U.S. Department of Commerce, the International Traffic in Arms Regulations (“ITAR”) established under the U.S. Department of State, and the embargo controls administered by the U.S. Department of the Treasury’s Office of Foreign Asset Controls (“OFAC”). Learn more at http://www.pmddtc.state.gov/

For our UK facility, export controls are governed by the Export Control Organisation (ECO) under the UK Department for Business, Enterprise & Regulatory Reform (BERR). For more information email: [email protected] Telephone 020 7215 5000

What items and uses are covered by these export controls?

1) Defense Articles: Any item that is specifically designed, developed, configured, adapted or modified for a military application – INTENDED USE DOES NOT MATTER

2) Defense Services: Furnishing assistance to foreign persons in the design, development, engineering, manufacture, production, assembly, testing, repair, maintenance, modification, operation, demilitarization, destruction, processing or use of defense articles.

3)Technical Data: Information required for the design, development, production, manufacture, assembly, operation, repair, testing, maintenance or modification of defense articles – but not general scientific, mathematical, or engineering principles, public domain information, or basic marketing information

What activities are covered by export controls?

In the United States and the UK, it applies to ALL export activities including export of defense articles outside the United States or the UK, reexport, or transfer outside the United States or the UK to another end use, end user or shipment to a destination not previously authorized.

For example: We obtain a valid export license on your behalf that allows PEI to ship controlled products to you outside of the US (or the UK). In order to obtain that export license you have supplied us with various specifics concerning the end use and final destination of that product. You can only use that product for the registered application and in the registered location. You may not subsequently reship that product or incorporate that product into another, higher level product, and then reship that higher level product without first obtaining a new export license.

Export controls cover technical data or the disclosure of controlled technical data to foreign national (including dual nationals) wherever they are located.
Example: A discussion of controlled technical with a foreign nation anywhere in the world is prohibited; even of that discussion occurs within the United States (or the UK).

What is the See-Through rule?

Under this rule, DDTC will “see-through” an item to its most restricted component and the classification of the whole item or system will be based on the classification of that one component. This is not specifically spelled out in the ITAR regulation, but it is the current agency interpretation. PEI-Genesis uses the See-Through rule in classifying its products. If any component used in the assembly of a product is restricted, then we classify all finished goods that use that component as restricted.

How does the See-Through Rule apply to PEI-Genesis products?

PEI-Genesis builds most connectors from component parts. If a component is identified as ITAR controlled by our supplier, then any and all products in which this component could be used is considered to be ITAR controlled and we will invoke the ITAR control processes in our Export Control Manual. This conforms to the current “strict” interpretation of the ITAR that is currently being used by the DDTC.

For example: A connector is specifically designed for a US missile program. That connector incorporates a unique insulator contact pattern (layout). We stock the insulator and we can build dozens of different connectors using that insulator. PEI will use the see-through rule and tag all parent items that potentially use this insulator as ITAR controlled, even if the specific finished connector was never used in the original missile system. The intent of the DDTC is to prevent products containing controlled components from being reworked after the sale and having those components illegally re-purposed.

My application is commercial, why does ITAR apply?

ITAR is product specific, not application specific. If the product was designed, developed, configured, adapted or modified for a military application, then it is considered controlled under the ITAR. Intended use does not matter.

Does ITAR apply to all military connectors?

No. Many of the connectors assembled and sold by PEI-Genesis were originally designed for military applications. Over the years, these products have found their way into many commercial and Industrial applications due to their high reliability, proven performance, and relatively low cost. Virtually all of the mass-customized “military” connectors we build are exempt from ITAR. For the small number of controlled products we sell, we will alert you before we sell or ship controlled products to you.

Do I need a license to ship controlled products outside the US (or UK)?

Yes. All Export Activities require an export license from DDTC (ECO in the UK) or a license exemption. Significant monetary and non-monetary penalties exist for violations of ITAR and ECO laws. If you request that a controlled product be shipped outside of the US (or UK), we will attempt to obtain an export license for you. PEI-Genesis takes these laws very seriously and will comply with the strict interpretation of the law. Please understand that we are trying to protect your interests when we request documentation or delay order shipment in order to comply with current government regulations.