CAN YOU SAY YES?
DDTC wants to know about your compliance program.
By Odyssey E. Gray, III & Jenny Hahn
Senior Licensing Associate & President
The Defense Directorate of Trade Controls (“DDTC”) has completed its IT Modernization with the implementation of the Defense Export Control and Compliance System (“DECCS”) in February 2020.
Users will see that DDTC updated the DS-2032 Registration form in several aspects, moving information blocks around and asking questions about the U.S. Person status of named entities and individuals and their eligibility status under the ITAR 120.3 based on the statutes listed in ITAR 120.27.
DDTC has also added a new question to the DS-2032 form concerning the applicant’s written ITAR compliance program/plan.
“Does Applicant have written policies and procedures for compliance with the ITAR (including but not limited to §122.5)”
This is a simple YES or NO response.
DDTC seeks to compile information regarding its registrants’ compliance program status to support its outreach and training efforts and alert registrants to the importance of having a written ITAR compliance plan/program in place.
This question is a clear indicator that DDTC is aware that many companies do not have compliance plans and programs in place and is placing an emphasis on learning which registrants fall in that category.
After 30 years of assisting clients, we have learned that many export violations occur because the company did not invest in developing and documenting their export policies and procedures. Tribal knowledge of the rules is akin to the childhood telephone can game with the outcome the same,
company employees understanding of the export regulations, that is not entirely accurate. Don’t leave your company export program to chance.
Invest now in developing a compliance plan/program and procedures that will aid in the prevention of export violations and ultimately enhance your company’s bottom line by minimizing costs associated with voluntary disclosures and financial penalties.
Don’t be one of those companies that checks “NO” to this important question.
FD Associates can assist your company with the development of compliance plans, manuals and procedures, tailored to the specific needs of small and medium sized companies.