What is ITAR: Back to the Basics

MFG What Is ITAR Blog 2022


Do you develop a product that is used in the military or intelligence area? If so, you are required to adhere to some legal requirements, specifically the International Traffic in Arms Regulations (ITAR) and Export Administration Regulations (EAR). These regulations concern mostly exports and domestic activities. In this article, we will focus on ITAR, but the EAR is also an important aspect of remaining compliant while conducting business.

What is ITAR?

International Traffic in Arms Regulations (ITAR) is administered by the Directorate of Defense Trade Controls (DDTC) within the State Department. They apply specifically to military products listed on the U.S. Munitions List (USML) or the Missile Technology Control Regime (MTCR).

Let’s break that down even further: ITAR’s goal is to regulate the manufacturing, sale, and distribution of defense products. Specifically in the software and technical data aspect of ITAR, the goal is to manage and mitigate the risk of important, private data and intellectual property.

Who does it apply to?

At the most basic level, ITAR applies to any company (directly or indirectly) that contracts with the government or has international trade relating to the defense industry. Companies that fall under this general description must be registered with the DDTC and be ITAR compliant, filling out an annual application to renew the certification.

So, how does it benefit manufacturers? ITAR compliance ensures data protection of sensitive government information and mitigates the risk of any non-compliance with regulations or civil fines.

How does ECI comply with ITAR?

With ECI’s new ITAR-compliant cloud platform, our manufacturing customers can now utilize the infrastructure needed to focus on high-quality, precision parts while remaining within ITAR regulations. This platform also makes being ITAR compliant significantly cheaper. ECI combines forces with leading government cloud infrastructure providers and supports that infrastructure with data custodians that meet the requirements established by ITAR of being a U.S. Person. This includes all security protocols so customers can be assured they remain compliant and secure.

Now, manufacturers can securely manage and work with their technical data in the cloud and know that our experts are managing the strictest standards outlined by ITAR and the DDTC. This includes drawings, process documentation, and other technical data that you may need safely stored and managed.

Why is it important to have an ITAR-compliant cloud ERP?

Most aerospace and defense companies have little options when it comes to how they handle their operations and data. Either with an on-premises solution, paying for costly government infrastructure, meaning lags and costs in updating their software, or an ITAR-compliant cloud solution that handles all the above, plus the added benefits of extended protection of data, completely up-to-date standards and processes, and saved time and money. With an ITAR-compliant cloud solution, you get the benefit of being ITAR compliant while having secure access to business data from anywhere, anytime, reduced operating costs, and data security best practices, which are kept by our industry experts, instead of your IT department.

What is ECI doing to make sure customers continue to meet requirements?

Our new ITAR-compliant cloud solution is just the first step on the long road to making sure our customers remain compliant and within regulations as new certifications and best practices surface. As new regulations become solidified, we will be working to ensure our customers have the best options available to continue using our state-of-the-art solutions while remaining compliant within their industries. All that to say – STAY TUNED!


Is your company needing to be ITAR compliant? Make sure to check out our Compliance page to keep up to date on our solutions and get a chance to discuss your needs with our experts.

ECI Staff Contributors

About the Author

ECI Staff Contributors love to share their insights and expertise on a variety of topics including sales, marketing, cloud, ERP, and SMB development as well as on product specific education. With offices throughout the United States, Mexico, England, the Netherlands, Australia, and New Zealand, more than 40 employees contribute to blog on a regular basis.