Strategies for Compliance with DoD Regulations Including ITAR and DFARS


Reading time ( words)

ITAR is usually the topic when compliance with DoD regulations is discussed. But what about DFARS? This article will examine strategies one can implement to ensure that one is compliant with all DoD regulations, by analyzing internal and external factors in relation to procurement and compliance, and by asking the vital questions: what, how, where and to whom?

Governments regulate the import and export of defence-grade material and equipment, to ensure that their restrictions, laws and regulations are implemented and enforced. Governments and their domestic exporting companies are aware, educated, and receptive to ensuring that export compliance is implemented and documented in their compliance programs.

The challenge arises when the importing country has restrictions regarding compliance for the exporting country, and how the exporting companies in these countries can address these compliance demands in their local supply chain, consisting of domestic and foreign materials and components!

The largest actor on the global defence market is the United States Department of Defense (DoD). The DoD has imposed regulations regarding procurement, design, development and manufacturing. The most central regulations for DoD are described in the Federal Acquisition Regulations (FAR), Defense Federal Acquisition Regulations Supplement (DFARS) and International Traffic in Arms Regulation (ITAR).

The logical deduction is that DoD regulations will affect most acquisitions and the question is hence, how does this affect your trade, when comparing DoD regulation with your national export regulation? A foreign state trading with DoD will in principle not be allowed any exemptions from these regulations except perhaps some elements regarding a country’s privacy laws. Or putting it simply, if you do not abide by DoD regulations, then you will not be able to sell to or buy from the United States.

Severe Consequences and No Excuses

A company supplying an article to a supply chain of a defence product, and particularly one purchased by the DoD, must be aware of the strict compliance DoD places on all exports and imports. This irrespectively applies to all aspects of the trade, transaction and everybody is affected from the product owner, designer, sub-contractor by the compliance regulation of DoD as the end customer. The consequences can be severe; there are no excuses and one cannot simply claim that one did not know, as it is your responsibility to know.

Compliance management in the defence industry can be the defining factor between financial success and costly mistakes.

When procuring components, printed circuits or materials to the defence industry, there is no such thing as assuming or relying on questionable interpretations of rules and regulations. There is no option for shortcuts whether your supplier follows the regulations or not, and the costs of not properly examining what supply chain you are delivering to is far greater than the benefits of working faster.

As computer systems, XML files and purchasing entities are becoming more experienced and implementing stricter surveillance and control. One must assume that the frequency of noncompliant cases will increase and based on publicly available information, this seems to be the case.

To read the full version of this article which originally appeared in the July 2017 issue of The PCB Magazine, click here.

Share




Suggested Items

Today’s M&A: Right on Target

08/09/2022 | Nolan Johnson, I-Connect007
In this enlightening conversation with M&A specialist Tom Kastner, Nolan Johnson learns that it’s a buyer’s market—and a seller’s market too. This sets up an interesting dynamic no matter which side you might be on. What trends are in play that have led to this situation and how can you make the most of it? Tom shares valuable insights that will get you thinking and planning your own strategies.

Challenges of the 2022 PCB Market: The Party’s Over

08/08/2022 | Pete Starkey, I-Connect007
With his knowledgeable insight into the business and technology of the printed circuit industry, Dr. Shiuh-Kao Chiang, managing partner at Prismark Partners, has put a global perspective on the challenges of the 2022 PCB market. His presentation at the EIPC Summer Conference in Orebro, Sweden, on June 14 was eagerly awaited by an attentive audience, keen to share his vision. From his comments, it was clear that 2022 will be an interesting year and does not appear particularly friendly for the PCB business.

I-Connect007 Editor’s Choice: Five Must-Reads for the Week

07/15/2022 | Andy Shaughnessy, Design007 Magazine
I’m getting a lot of out-of-office replies. Are you all on the beach now? It’s 91 degrees every day here in Atlanta lately, but each afternoon it rains like we’re in a horror movie, and that drops the temperature down to the subtropical arena. Still, I’ll take heat over freezing any day. Things are heating up in our industry too, as we see from my top five choices this week. First-quarter electronic design revenue is up year-on-year, but PCB revenue barely moved the needle YOY. Editor Nolan Johnson spent the week at SEMICON West and the FLEX Conference, and he brings us a review of these conferences, co-located at the Moscone Center in San Francisco. As he notes, printed electronic circuits are beginning to gain a foothold in the market.



Copyright © 2022 I-Connect007. All rights reserved.