Itar

How does PEI know an item is ITAR or UK Export controlled?

Our manufacturers identify products that should be considered ITAR / UK Export controlled. This information is supplied to us by the manufacturers from time to time (frequency varies by supplier). This is another good reason to buy military connectors from an authorized/franchised source; PEI-Geneses can provide up to date guidance for controlled products.

Controlled products are tagged in our worldwide ERP system using the see-through rule (see below). The provenance of these products is visible throughout every step of the processing within PEI-Genesis.  A series of electronic and procedural systems detailed in our internal “Export Control Manual” (500.0.0.0) are invoked to ensure compliance with applicable laws.  Internal WI’s 500.11.8.1  & 500.11.9.0

What happens when I request shipment of controlled products within the U.S. (or UK)?

We will sell you the product and we will alert you that the product is ITAR / UK Export controlled. This will be noted on our Quotation, Sales Order Acknowledgment, Packing document, and Invoice. You may also be asked to sign an Export License Requirement Notification (ELRN) WI# 500.11.6.0. This is to tell you that the item is export controlled and to inform you that you will need an export license before you ship the item outside of the United States (or UK).  This document is a courtesy to help you invoke the necessary controls within your organization to prevent unwitting violations at a later time.

What happens if I am shipping controlled products outside the U.S. (or UK)?

Orders for controlled products automatically go on "Export Hold" in our ERP system and will not be shipped.  Controlled products that are requested to be shipped outside the country are handled by a special team of people at PEI-Genesis. In the United States, that team is based at our International Sales office in Long Island New York. In the UK, that team is based at our European headquarters in Southampton UK.

PEI-Genesis is registered with the U.S. State Department and the BIS in the UK. In order to supply you with these products we will attempt to secure an export license on your behalf. In order to obtain a license we will need various authorizations and information about the application and the final destination of the product. We will ask you for the necessary information. Please be aware that this is a U.S. (or UK) government requirement, not a PEI exercise.

If a license is obtained, we will process your order. If not, we will inform you that your export request was denied and we will cancel your order. ITAR items shipping outside of the country will be subject to export shipping fees.

No other distributor is asking me to fill out this crazy paperwork!

Beware. PEI-Genesis has a very thorough export compliance system in place - most distributors do not. Significant monetary and non-monetary penalties exist for violations of ITAR and ECO laws; including the personal liability of company officers. Do not skirt the laws and risk a violation.

No other distributor is telling me this item in export controlled!

Beware.  PEI-Genesis has a very thorough export compliance system in place - most distributors do not. Significant monetary and non-monetary penalties exist for violations of ITAR and ECO laws; including the personal liability of company officers.  Do not skirt the laws and risk a violation.

Need help with an Export Compliance issue?

Need more help?  Contact ITAR@peigenesis.com and you will be directed to a US or UK export compliance expert.

Export Controlled Products FAQ

ITAR, USML, DDTC, EAR, BIS, ECO, OGEL, OIEL, SIEL, EGAD

PEI-Genesis maintains a robust export compliance program. PEI-Genesis has assembly and warehouse facilities in the United States and the UK. As a consequence, we work under the direction of US and UK export control laws. When you enter an order for a controlled product on the website and request shipment outside the U.S. or U.K. (depending upon PEI ship-point), your order will automatically be placed on hold and we will contact you to obtain the necessary information to secure an export license on your behalf. PEI is registered with the U.S State Department and the UK Department for Business, Innovation, & Skills (BIS) for these transactions. Learn more about ITAR and BIS regulations as well as how PEI-Genesis makes it easy for you to comply with these laws in these FAQs.

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 BIS, 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, Innovation, & Skills (BIS). Learn more at: https://www.gov.uk.
 
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) unless in the UK, the entity/customer location is covered by a open general license.

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. (This is strictly a US policy and does not apply in the UK)

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. (This is strictly a US policy and does not apply in the UK)

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 Export Control apply?

Export Control 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 US and UK export control laws. Intended use does not matter.

Does Export Control 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 US and UK export control.  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 for a controlled product to 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.