ITAR for Government Contractors
ITAR has become a major issue for government contractors. In recent years the US Government has been increasing enforcement of this important area of regulation. While the ITAR is part of the US export control laws, it also applies to activities beyond exports and applies to many US companies in their domestic business activities. This is especially a problem for government contractors firms that do a lot of work in domestic contracts – while companies in the defense area are familiar with this, many firms that perform domestic contracts for US government agencies are subject to ITAR requirements.
Executives of many of these companies are hearing that they may be subject to these regulations but they are not sure where to go to learn more. This is a highly technical area of the law and many US law firms do not have substantial expertise in this area. Many of the major government contractors – technical services, information technology, military training – are struggling with this. This is at all levels – large, medium and smaller firms.
The stakes are high – in one recent enforcement case ITT received $128,000,000 in combined criminal and civil penalties, and in the most recent case BAE Systems received an astonishing $400,000,000 criminal penalty from a US District Court judge in the Distinct of Columbia.
Our program is designed to provide corporate counsel, outside attorneys, Directors & Officers a clear overview of this area of the law – to help them determine if they are regulated under ITAR and if so, to learn the fundamental principles of these regulations.
Topic Outline: The presentation will address the following topics:
• Up-to-the-minute Regulatory Updates
• ITAR: The International Traffic In Arms Regulations
• How do I know if my company is subject to ITAR?
• Company registration under the ITAR
• Application to Technical Data and Software
• Application to Technical Services
• Requirements for dealing with Foreign Nationals
• Special rules for government contractors Firms – are we subject to ITAR if we perform services for US government agencies?
• Techniques for filing Technical Assistance Agreements (TAA’s)
• How to develop an effective ITAR Compliance Program
• Voluntary disclosure and dealing with past violations
Thomas McVey, Esq., Chair, International Practice Group,
Williams Mullen,He and Bob Vander Lugt had planned the following. some companies are covered by ITAR and may not know it.
- Broad overview on how ITAR works and how it applies to government contracts firms
- What if there are problems?
Bob Vander Lugt, Director of Export Compliance, Export Import Shared Services,
Northrop Grumman Corporation
- Practical suggestions and tips that he would provide to companies.
- Structuring compliance piece
Chris Halloran, Senior Manager, Global Trade Solutions,
Collaborative Design and Manufacturing: Global R&D
- Joint development projects with external parties
- Introduction of collaboration tools and technology to support interaction with suppliers
- Distributed – global operations
- Data mobility & cloud computing
- IP security
- Privacy issues
- Data quality & integrity
Enterprise Resource Planning
- Business systems transformation projects
- Systems consolidation & rationalisation
- Broader access to more consolidated and robust data
- Outsourced IT support
Business Model Optimization
- Supply chain optimisation
- Tax aligned operations strategies
- Systems modifications
- Personnel redeployment
- Cost efficiencies
Customer Support Models
- Outsource support materials
- Fully enabled field personnel
- Customer access to technical data
Nathan B. Gollaher , Senior Manager, Indirect Tax – Customs and International Trade ,
Ernst & Young LLP
- Application to technical data and software
- How to develop an effective ITAR compliance program
- Requirements for dealing with foreign nationals
Who Should Attend:
– Export Compliance Specialists, Coordinators and Administrators
– Vice Presidents, Directors and Managers of Contracts
– Risk Officers
– General Counsel
– Senior Executives
– VP, Legal Affairs/Operations
– International Trade Counsel
– Export Compliance Counsel
– Export Controls Counsel and Consultants
Thomas McVey is the Chair of the International Practice Group of Williams Mullen, Washington, DC, where he practices in the area of the federal regulation of international business transactions. Mr. McVey advises clients on the Export Administration Regulations, the International Traffic In Arms Regulations, Sanctions Programs administered by the Office of Foreign Assets Control, the Foreign Corrupt Practices Act, anti-boycott laws and CFIUS. He is a graduate of Columbia University (BA) and Georgetown University (JD). He was a member of the U.S. delegation to the United Nations Commission on International Trade Law (UNCITRAL), 23rd Plenary Session, 1990-1992.
Thomas McVey is the Chair of the International Practice Group of Williams Mullen, Washington, DC, where he practices in the …
Bob Vander Lugt is the Director of Export Compliance for Northrop Grumman Corporation, where he and his staff are responsible for enterprise export compliance, assessment and training. Before joining Northrop Grumman in 2003, Bob practiced national security law in Washington, D.C. As a Partner at McDermott, Will & Emery and Senior Counsel at Vinson & Elkins where he represented many of the major U.S. and European defense contractors in export control/technology transfer and sanctions compliance investigations, False Claims Act cases, bid protests, claims, suspension and debarment proceedings, merger and acquisition reviews, and security clearance revocation cases.
Bob is a Commander in United States Navy Reserve, presently serving as the Commanding Officer of a Pacific Fleet Intelligence unit in Alameda, California. He returned in July 2011 from a year in Afghanistan where he served as Intelligence Detachment Commander for the nation’s premier Special Operations Task Force. As an adjunct professor at the Georgetown University Law Center, Bob designed and taught a course in the law of international institutions. He is coauthor of International Rules: Approaches from International Law and International Relations, published by Oxford University Press and has lectured widely on international and national security law topics, both in the United States and abroad.
Bob received his undergraduate degree in History and Government from Oral Roberts University, and his law degree from the University of Virginia. He lives with his wife Ruthie and son Joel in Plano, TX, and enjoys reading history & biography, kayaking and cycling.
Bob Vander Lugt is the Director of Export Compliance for Northrop Grumman Corporation, where he and his staff are responsible …
Chris advises clients on a wide range of international trade matters, including compliance reviews and audit support; export controls and related requirements for EAR, ITAR, OFAC and other country-specific requirements; implementing compliance programs and management systems; strategic assessments; maximizing operational efficiencies via business process improvements and automated trade software implementations.
Chris also has extensive ERP and systems experience including implementing SAP’s Global Trade Services application and blending compliance procedures with this automated solution to drive optimal compliance operations management. This is achieved by managing large trade and technical configuration teams and delivering a holistic risk-based solution that exceeds client objectives.
Prior to joining Deloitte Tax LLP, Chris was responsible for export compliance and managing global trade compliance operations with Applied Biosystems, a long-standing life sciences entity with extensive global import / export activity. Previous to that Chris worked for an international trade software company where he had responsibility for advising clients and converting global regulatory requirements to software-based engine rules. Chris also has EU-specific experience stemming from work with Ireland’s Department of Enterprise, Trade and Employment with a focus on the telecoms industry and regulatory reform in other key economic sectors. While working for various law firms he also acquired extensive civil litigation legal research and management experience.
Education and Professional Certifications: Chris has a B.A. from the University of Colorado, Boulder and a M.S. from Trinity College, Dublin, Ireland. Chris is a licensed U.S. Customs Broker.
Chris advises clients on a wide range of international trade matters, including compliance reviews and audit support; export controls and …
Nathan B. Gollaher is a member of Ernst & Young LLP’s Customs and International Trade practice in Chicago, Illinois. Nathan practices in the global international trade area, with particular emphasis on US planning and regulatory compliance for matters enforced by Customs and Border Protection (Customs duties, preference programs, and controversy), Office of Foreign Assets Control (embargoes and sanctions, specially designated nationals, and blocked persons), Directorate of Defense Trade Controls (International Traffic in Arms Regulations), and Bureau of Industry and Security (dual use export controls, proliferation controls, denied persons and entities, anti-boycott).
Nathan received a J.D., cum laude from Chicago-Kent College of Law, a Master of Accountancy in Tax from Brigham Young University, a B.S. in Accounting from Brigham Young University, and a Certificate in International Law from Chicago-Kent College of Law. He is a certified public accountant, licensed in the state of Illinois, and a Licensed Customs Broker.
Nathan B. Gollaher is a member of Ernst & Young LLP’s Customs and International Trade practice in Chicago, Illinois. Nathan …
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About Williams Mullen
Williams Mullen was founded in 1909 and is one of the oldest and largest law firms in Virginia. The firm has offices throughout Virginia, N. Carolina, Washington DC and London, and practice groups in all major areas of law.
About Northrop Grumman Corporation
About Deloitte Tax LLP
Deloitte LLP’s Customs & Global Trade group has a worldwide network of over 300 international trade professionals in over 90 countries. The team works together seamlessly to provide strategic and cost-effective import/export, supply chain and trade compliance solutions across the globe.
Deloitte LLP’s Customs and Global Trade group works together with clients to strategically approach efficient and effective management of day-to-day export control and import obligations. In particular, the team specializes in implementing comprehensive trade and export control management programs and systems to achieve optimal compliance and risk management while simultaneously maximizing commercial activity and reducing costs throughout the business.
About Ernst & Young LLP
Ernst & Young is a global leader in assurance, tax, transaction and advisory services. Worldwide, our 152,000 people are united by our shared values and an unwavering commitment to quality. Ernst & Young’s Customs and International Trade team brings together vast experience and global knowledge to serve clients anywhere in the world they do business. We have more than 350 dedicated professionals globally, with experience in more than 140 countries.
Our Customs and International Trade team is multidisciplinary, including professionals with accounting, legal, government and industry backgrounds. This diversity of backgrounds allows us to look at situations from multiple perspectives, helping clients efficiently reach their objectives. We advise on local rules and across jurisdictions, helping companies with compliance and lawful duty reduction.
Our practitioners have experience in customs, export controls, economic sanctions, anti-boycott and anti-bribery in customs clearance. We work in conjunction with our International Tax, Global Indirect Tax, Supply Chain, Fraud Investigation & Dispute Services and Business Risk Services practices to deliver complete global services for international companies.