ITAR Compliance for Foreign Buyers

The International Traffic in Arms Regulations (ITAR) control the export and import of defense-related articles and services. Administered by the State Department's Directorate of Defense Trade Controls (DDTC), ITAR restricts the transfer of certain items to non-US persons.

While most business aircraft are not ITAR-controlled, certain equipment, modifications, or technical data associated with the aircraft may be subject to ITAR restrictions. Understanding these regulations is essential for international buyers.

ITAR-controlled items that may be found on civil aircraft include certain avionics and communications equipment, night vision systems and enhanced vision systems, specific radar and sensor systems, certain military-derived navigation equipment, and some head-up display systems.

The presence of ITAR-controlled items doesn't prevent purchase of an aircraft, but it does require proper licensing or removal of controlled items before delivery to a foreign person.

Transfer of ITAR-controlled items to a non-US person requires an export license from DDTC. The licensing process involves identifying controlled items, determining appropriate license type, submitting application with supporting documentation, and awaiting approval (which can take several months).

Some items may qualify for license exemptions depending on the item, end user, and destination country. An experienced ITAR compliance professional can advise on available exemptions.

International buyers should conduct ITAR due diligence early in the transaction. This includes reviewing the aircraft's equipment list and modifications, identifying any potentially controlled items, determining if items can be removed or replaced with non-controlled alternatives, and assessing licensing timelines if export approval is needed.

Sellers of US aircraft are responsible for ITAR compliance during their ownership. However, buyers should verify compliance documentation and avoid assuming transfer of controlled items without proper authorization.

ITAR restrictions vary by destination country. Some countries have broad exemptions through bilateral agreements, while others face significant restrictions.

Buyers from NATO countries and certain close allies often face fewer restrictions. Buyers from countries subject to US sanctions or arms embargoes face the most significant limitations.

Country-specific restrictions can change based on political developments. Current status should be verified before each transaction.

ITAR violations carry severe penalties including criminal fines up to $1 million per violation, civil fines up to $500,000 per violation, imprisonment for responsible individuals, and debarment from future defense trade.

Both buyers and sellers can face liability for improper transfers. Ensuring proper compliance protects all parties and facilitates smooth transactions.