Big things are happening within MST Manufacturing! This booming company operating on a six-acre complex out of Claremore, Oklahoma, has recently been granted the status of ITAR Compliant. This is huge for the business and any others wanting to work with them.
ITAR, which stands for the International Traffic in Arms Regulation, is a set of rules and regulations a business adopts and practices regularly. MST Manufacturing, and any other company wishing to obtain this accolade, must do their research to understand the rules and regulations thoroughly and then set a business plan to comply with them every day.
What is ITAR Certification?
International Traffic in Arms Regulations (ITAR) is a United States regulatory regime to restrict and control the export of defense and military-related technologies to safeguard U.S. national security and further U.S. foreign policy objectives. Most companies wishing to purchase or work with a manufacturing company, like MST Manufacturing, would not want to do so without the ITAR Compliance seal. So now you can see why this is such a big deal.
There are three critical steps that small/mid-sized government contractors and suppliers can take to come into compliance with the law and demonstrate their ITAR readiness to their prime contractors:
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ITAR Registration
Many companies in the defense supply chain must register with the State Department under ITAR Part 122. Companies should assess if they are required to register and, if so, do so as quickly as possible.
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ITAR Compliance Program
Another critical step is to learn about the general requirements under ITAR and the EAR and adopt internal written policies and procedures to comply with these – this is called an ITAR Compliance Program. The State Department recommends that companies involved in ITAR-controlled activities adopt ITAR Compliance Programs - and if a company has an ITAR violation, the State Department frequently reduces penalties or assesses no penalties for companies that have compliance programs.
Compliance Programs demonstrate to prime contractors (and government agencies if there is an ITAR violation) that your company has a formal process for ITAR compliance and project a sophisticated approach to managing these issues.
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Risk Assessment
A third important step is identifying the specific ITAR requirements that apply to your company based upon your business activity, customer base, and countries of operation and adopting focused strategies for dealing with these.
For example, a company providing electronic components for the F-35 to a customer in Chicago will likely have different ITAR requirements than a company providing program services to support the U.S. Navy in Japan. This is sometimes called a “Risk Assessment” - this can help you identify the most significant legal risks/exposures for your company and strategically concentrate efforts to eliminate these.
ITAR compliance is essential, and failure to adhere to the regulations can result in civil and criminal penalties. These penalties can result in $1,000,000 of fines and twenty years of imprisonment. ITAR requirements can apply even if your company does not engage in international activities and even if your only customer is the U.S. Department of Defense.
Why Choose MST Manufacturing?
Since the formation of The Statton Group, the team behind MST Manufacturing has had a rich history of partnerships and service within the aerospace industry. MST Manufacturing is proud to employ CNC machining professionals and is committed to providing the best quality products to its users. Please reach out to MST with further inquiries.