Executive Insight
The International Traffic in Arms Regulations (ITAR) govern how defense-related articles, services, and technical data may be shared, transferred, or accessed. Administered by the U.S. Department of State, ITAR is designed to prevent sensitive military and defense capabilities from falling into unauthorized hands, particularly foreign adversaries.
For organizations operating within global defense supply chains, compliance is not limited to managing physical exports. As engineering drawings, CAD files, specifications, test data, and software move digitally across cloud platforms, supplier networks, and collaborative environments, each movement introduces the possibility of an unauthorized export, even within the United States.
ITAR compliance, therefore, hinges on an organization’s ability to control access to technical data throughout its lifecycle. Protecting export-controlled information requires continuous governance that follows the data itself, ensuring that authorization, visibility, and accountability remain intact wherever the information travels.
Understanding the ITAR Landscape
ITAR is authorized under the Arms Export Control Act and is codified in Title 22 of the Code of Federal Regulations, Parts 120-130. These regulations control defense articles, services, and related technical data identified on the United States Munitions List (USML).
Under ITAR, technical data includes information required for the design, development, production, manufacture, assembly, operation, repair, testing, maintenance, or modification of defense articles. This definition encompasses engineering drawings, CAD models, software source code, specifications, and manufacturing process documentation. General scientific principles and publicly available information are excluded, but most proprietary defense engineering data is not.
Crucially, ITAR defines an export broadly. An export occurs not only when controlled items or data are shipped outside the United States, but also when technical data is disclosed to a foreign person within the U.S. This concept, often referred to as a deemed export, means that access itself can constitute an export event.
As a result, ITAR compliance depends on more than documentation and licensing. Organizations must demonstrate that access to export-controlled technical data is restricted to authorized individuals and that all disclosures, transfers, and retransfers are traceable and justified.
Common Challenges in Managing ITAR-Controlled Technical Data
- Fragmented data footprints: Technical data is rarely confined to a single system. Engineering teams use CAD platforms, document repositories, cloud storage, and collaboration tools, often alongside external suppliers. Without unified oversight, organizations struggle to maintain awareness of where ITAR-controlled data resides and who can access it.
- Uncontrolled disclosure to foreign persons: In multinational teams or supplier ecosystems, foreign nationals may legitimately participate in projects that also involve export-controlled data. Without controls tied directly to data access, organizations risk unlicensed disclosure, even when collaboration occurs entirely within the United States.
- Complex partner networks: Once technical data is shared with an authorized partner, downstream retransfer to additional vendors or affiliates may occur without proper authorization. These secondary disclosures are difficult to detect and track, posing a significant compliance risk.
- Insufficient recordkeeping and traceability: ITAR requires exporters to retain records of exports, disclosures, and authorizations for a minimum period. When technical data leaves managed systems, reconstructing who accessed specific files, when, and under what authority becomes challenging during audits or investigations.