Technical data protection: a daunting challenge for export compliance organizations

The "Deemed Export Rule"

Both ITAR and EAR have restrictions regarding the transfer of technology often referred to as the “Deemed Export Rule”, which provides that the appropriate export authorization must be obtained before transferring U.S. origin technology to foreign persons, whether located in the United States or overseas. Essentially, the export control laws control not only physical exports of goods from the United States, but also the provision of services or technical information to non-U.S. persons – even if the exchange occurs in the United States.

Risk of ITAR/EAR Violations with a "Click of the Button"

Global aerospace and defense organizations have suppliers, customers, and partners in all corners of the world. With the advancement of internet-based collaboration technologies in the past two decades, violations of the deemed export rule can happen uncontrollably, with the “click of a button”. As a result, A&D companies are at serious risk of flagrant ITAR or EAR violations through various IT systems, including:

• Email Messaging
• Network File Data Access
• Collaborative Portals
• Enterprise Resource Planning (ERP) Systems
• PLM/Engineering Systems
• Document Management Systems
• Databased Applications