ITAR Compliance Audit Checklist Template - Edit Free PDF

ITAR compliance audit checklist template

About the ITAR compliance audit checklist template

An ITAR compliance audit checklist is essential for ensuring your organization adheres to the International Traffic in Arms Regulations (ITAR). This template provides a structured approach to evaluating your compliance measures, ensuring they meet ITAR requirements.

Using this checklist helps you enhance security, prevent unauthorized access, and ensure regulatory compliance. This checklist supports proactive compliance management, ensuring thorough evaluations and timely interventions.

Strengthen your ITAR compliance process with Lumiform

The primary purpose of our ITAR compliance audit checklist is to provide a comprehensive framework for assessing your organization’s adherence to ITAR regulations. This template ensures all critical areas are covered, helping you manage compliance tasks and ensure adherence to regulatory standards.

Using this checklist helps you streamline the audit process, identify vulnerabilities early, and enhance overall security. Regular audits help prevent non-compliance issues and ensure that your organization meets ITAR requirements. It supports a proactive approach with detailed documentation and regular reviews. Ultimately, this checklist fosters a secure and compliant environment, leading to improved protection and peace of mind for compliance officers and administrators.

Key elements of the ITAR compliance audit checklist

Our checklist includes essential components to ensure thorough evaluations:

General information: Record details such as the organization name, audit date, and auditor’s name. This foundational information ensures accurate documentation and aids in tracking audit history, making it easier to monitor compliance and identify recurring issues.
Registration and licensing: Verify that your organization is registered with the Directorate of Defense Trade Controls (DDTC) and that all required licenses are obtained and up-to-date. Ensure that licensing documentation is readily accessible for review.
Export controls: Assess the effectiveness of your export control procedures, including the classification of defense articles and technology. Verify that export licenses are properly managed and that all exports comply with ITAR regulations.
Access controls: Ensure that access to ITAR-controlled information and technology is restricted to authorized personnel only. Implement robust access control measures, including multi-factor authentication and role-based access controls, to prevent unauthorized access.
Training and awareness: Verify that all employees handling ITAR-controlled information receive regular training on ITAR requirements and compliance procedures. Ensure that training records are maintained and that employees are aware of their responsibilities.
Recordkeeping and documentation: Maintain comprehensive records of all ITAR-related transactions, including exports, re-exports, and transfers. Ensure that documentation is accurate, complete, and readily available for audit purposes.
Incident response: Establish an incident response plan for ITAR compliance issues and ensure that incidents are promptly detected and addressed. Conduct regular tests of incident response procedures to ensure preparedness for potential compliance violations.
Documentation and follow-up: Maintain comprehensive records of audits, compliance measures, and any corrective actions taken. This ensures transparency and supports continuous improvement in compliance practices, providing a clear history of efforts and facilitating future planning.

Each section guides you through essential tasks, ensuring nothing is overlooked. This comprehensive approach drives successful compliance management, promoting safety and adherence to ITAR regulations within your organization.

Get started with Lumiform’s ITAR compliance audit checklist

Ready to enhance your ITAR compliance and ensure comprehensive audits? Download Lumiform’s free ITAR compliance audit checklist template today and implement a robust strategy for managing compliance. Our user-friendly template will help you boost adherence to regulations, prevent violations, and maintain high standards.

Act now and take the first step towards a secure and compliant environment! Download your free template and set new standards with Lumiform.

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Preview of the template

ITAR Compliance Audit

Jurisdiction and Classification

Has the company properly determined if its products being exported are on the U.S. Munitions List (“USML”) and subject to ITAR?

Has the company maintained adequate records of the basis of its classification for each of its products?

Has the company complied with the ITAR recordkeeping requirements as set forth at 22 CFR § 122.5?

Is an export license required for a transaction?

If an export license is required for a transaction, has the company obtained the license (e.g. DSP-5, DSP-6, DSP- 73, DSP-74)?

Has the company complied with the terms, conditions, and provisos set forth in the license?

ITAR–Controlled Technical Data and Software

Has the company disclosed ITAR-controlled technical data to Foreign Persons in the U.S. (including to employees) with a license or applicable exemption?

Has the company transferred technical data regarding ITAR-controlled items with a license or applicable exemption to 1) Foreign sales agents or marketing intermediaries; 2) Foreign prospective customers as part of marketing proposals; 3) Prime or subcontractors, suppliers, program partners; and 4) Persons in trade shows, marketing presentations?

Have company employees taken ITAR-controlled technical data in overseas travel, including in documents, laptop computers, PDA’s, iPhones, iPads and similar devices with a license?

Has the company transferred ITAR-controlled technical data to company employees who are Foreign Persons specifically authorized in the company’s Technical Assistance Agreements or other DDTC authorizations? (This includes in both foreign offices and in U.S. offices.)

Has the company NOT posted ITAR-controlled technical data or software on websites, chat rooms or transferred such items to Foreign Persons through e-mails, text messages, e-mail attachments, faxes, videos, telephone calls or other electronic communications?

Defense Services

Has the company performed any services for Foreign Persons related to any items on the USML, or items within the definition of Defense Services, with a Technical Assistance Agreement (“TAA”) or other applicable agreement approved by DDTC? (This includes services performed in the U.S. and overseas.)

Will the company be performing services for foreign military customers in connection with the sale of items subject to EAR?

Has the company performed services for a foreign military organization or foreign defense industry company in connection with an item regulated under the EAR?

Imports of Defense Items

Has the company imported any items on the USML in temporary import transactions or on the USML in permanent import transactions with a license?

Registration

Is the company registered with DDTC as a manufacturer and/or an exporter?

Has the company notified DDTC within 5 days of changes of the information set forth in its Registration Statement?

Does the company engage in brokering activities that require the company to register as a broker?

Debarred Party List Review

Has the company conducted reviews of all parties to its transactions involving ITAR-controlled items to verify that such parties are not listed on DDTC’s Debarred Parties List?

Export Clearance Requirements

Has the company complied with the export procedures for exports of ITAR-controlled unclassified technical data?

Has the company complied with the export procedures for its exports of ITAR-controlled hardware?

Has the company complied with the export procedures for the performance of Defense Services?

Reexports and Retransfers

If an ITAR-controlled item was properly exported (including ITAR-controlled technical data), was proper authorization obtained for reexports or retransfers of such items?

License/Agreement Administration

Has the company followed the requirements for the proper administration of licenses and agreements?

See-Through Rule

Has the company exported, reexported or retransferred an item that incorporates ITAR-controlled parts, components, attachments or accessories or is based upon ITAR-controlled technical data?

Reports For Sales Commissions, Fees and Political Contributions

Has the company or its Vendors (as defined at 22 CFR § 130.8) paid or offered to pay sales fees or commissions in connection with the sale of ITAR-controlled items in excess of $100,000, or political contributions in excess of $5,000?

Receipt, Tracking, Marking and Security for ITAR-Controlled Items

Does the company provide adequate security within its facilities to prevent unauthorized access to ITAR-controlled items (including access by Foreign Persons)?

Does the company provide adequate notice to customers and other parties to which the company transfers ITAR-controlled items that such items are ITAR-controlled, through the use of destination control statements and other forms of notice such as under 22 CFR § 123.9(b)? (This includes transfers in the U.S. as well as transfers to overseas parties.)

Does the company properly mark all ITAR-controlled products, technical data, and software within the company’s facilities to provide adequate notice that such items are ITAR-controlled?

Processing, Handling or Forwarding of ITAR-Controlled Items

Does the company track ITAR-controlled items if it receives them within its facilities?

Controls In Company IT System

Does the company maintain adequate controls in its information technology system to protect against unauthorized access, disclosure and transfer of ITAR-controlled technical data and software?

Manufacturing License Agreements and Distribution Agreements

Is the company licensing ITAR-controlled technical data to permit the manufacture overseas of an item on the USML?

Is the company establishing a warehouse or distribution point abroad for defense articles exported from the U.S. for subsequent distribution to entities in a sales territory approved by DDTC?

Brokering

Has the company engaged in “brokering” activity as defined at 22 C.F.R. Part 129?

If the company retains third parties to engage in “brokering activity” on behalf of the company as defined in § 129.2(a) and (b), have such third parties registered with DDTC under 22 CFR Part 129?

Use of ITAR Exemptions

Has the company relied on exemptions from requirements under ITAR?

Proscribed Countries, Significant Military Equipment and Major Defense Equipment

Has the company engaged in any unauthorized transactions involving ITAR-controlled items with any of the “§ 126.1 Proscribed Countries”?

Classified Defense Articles and Technical Data

Have the company’s exports of classified defense articles and technical data complied with the provisions of 22 CFR § 125.3 and 125.9, including use of DSP-85, as well as the NISPOM?

Obligations In Working With Subcontractors and other Program Partners

Will the company be working with subcontractors, teaming partners or other independent parties in the transaction?

Congressional Notification For Defense Articles and Agreements

Has Congressional Notification been provided in connection with exports of defense articles that exceed the threshold amounts set forth at 22 CFR § 123.15, or major defense equipment as defined at 22 CFR § 120.8?

Has Congressional Notification been provided for TAA’s and MLA’s for manufacturing abroad defense items classified as Significant Military Equipment as set forth in 22 CFR § 124.11?

Parts and Components – Definition of “Specially Designed”

For parts, components, attachments, and accessories that are still covered under USML “catch-all” provisions following Export Control Reform, do such items fall within the definition of “Specially Designed” as set forth at 22 CFR § 120.41?

ITAR Items Acquired In Mergers and Acquisitions

Is the company undertaking acquisition transactions?

Procedure To Limit Illegal Diversion, Transshipment and Reexports

Does the company face the risk of illegal diversion, transshipment, reexport or retransfer in its transactions?

Voluntary Disclosures

If a violation or possible violation has occurred, has the company considered submitting a voluntary disclosure to DDTC to reduce or mitigate potential penalties and eliminate past compliance risks?

Sign Off

Observations

Compliance Manager Name

Compliance Manager Signature

Department Representative Name

Department Name

Department Representative Signature

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Frequently asked questions

What documentation is crucial for passing an ITAR compliance audit?

Maintaining accurate and up-to-date records is crucial. Essential documents include export licenses, technical data, training records, and compliance policies. Keep records of all communications related to ITAR-controlled items and corrective actions. A well-organized document management system streamlines the audit process and effectively demonstrates compliance.

What are some common mistakes to avoid during an ITAR compliance audit?

Avoiding preparation is a major pitfall. Companies often neglect internal audits and fail to update compliance procedures. Inadequate employee training can lead to violations, and overlooking cybersecurity measures for sensitive data is common. Regularly reviewing and updating compliance practices mitigates these risks.

What are the key steps to take immediately after an ITAR compliance audit?

After an audit, thoroughly review findings and promptly address identified issues. Develop a corrective action plan to resolve compliance gaps and document changes. Communicate results and improvements to stakeholders. Continuous monitoring and regular training help prevent future compliance issues and maintain standards.

How can companies effectively communicate ITAR compliance requirements to international partners?

Clear communication is vital. Provide partners with detailed ITAR regulation guidelines and specific compliance expectations. Use written agreements to outline responsibilities and conduct regular training sessions. Establish a point of contact for compliance-related queries to facilitate ongoing dialogue and collaboration, ensuring mutual understanding and adherence.

This template, developed by Lumiform employees, serves as a starting point for businesses using the Lumiform platform and is intended as a hypothetical example only. It does not replace professional advice. Companies should consult qualified professionals to assess the suitability and legality of using this template in their specific workplace or jurisdiction. Lumiform is not liable for any errors or omissions in this template or for any actions taken based on its content.