2026-09-21 · KeXinMaterials Editorial Team
ITAR 1205.4 USML Export Control + Protective Case B2B Compliance Guide
ITAR (International Traffic in Arms Regulations) controls export of defense articles and services from the US. USML (US Munitions List) categorizes defense articles. ITAR 1205.4 governs export licensing procedures. For B2B defense protective cases with electronics, ITAR compliance may be required. Below is the 2026 B2B procurement guide covering USML categories, ITAR registration, export licensing, and protective case compliance.
ITAR Scope + Structure
ITAR is part of US Arms Export Control Act (AECA). Implemented at 22 CFR 120-130. Categorized in 21 USML categories.
AECA: Arms Export Control Act (22 USC 2751). US law authorizing control of defense articles + services. 1976 (latest amendment 2024).
ITAR: International Traffic in Arms Regulations. Implementing regulations under AECA. 22 CFR 120-130 (Parts 120-130).
ITAR Sections: 120 (purpose / definitions) + 121 (USML) + 122 (registration / licensing) + 124 (agreements) + 125 (licenses) + 126 (general policies) + 127 (violations / enforcement) + 128 (administrative procedures) + 129 (registration / registration fees) + 130 (technology transfer).
USML: US Munitions List. 21 categories covering defense articles. USML Categories I-XXI + miscellaneous.
USML Category I: Firearms. Category II: Artillery. Category III: Ammunition. Category IV: Launch vehicles / missiles / rockets.
USML Category V: Explosives. Category VI: Surface vessels. Category VII: Ground vehicles. Category VIII: Aircraft (relevant to military aircraft protective cases).
USML Category IX: Training equipment. Category X: Personnel protective equipment. Category XI: Military electronics. Category XII: Sensors / fire control.
USML Category XIII: Auxiliary military equipment. Category XIV: Toxicological agents. Category XVI: Nuclear weapons.
USML Category XVII: Classified articles. Category XVIII: Directed energy weapons. Category XIX: Gas turbine engines. Category XX: Naval nuclear propulsion. Category XXI: Articles not otherwise enumerated.
Geographic: ITAR applies to US origin articles + services + technology. Also applies to foreign nationals with access to US defense articles.
B2B relevance: For US DoD / NATO / allied defense protective cases, ITAR compliance may apply if case contains US origin electronics, components, or technology.
ITAR Registration + Manufacturer Code
ITAR registration required for organizations manufacturing / exporting defense articles. Manufacturer code assigned at registration.
ITAR registration: Required per 22 CFR 122.1 for any person (US or foreign) who manufactures / exports / imports defense articles on USML.
Registration application: Form DS-2032 submitted to US Department of State Directorate of Defense Trade Controls (DDTC).
Registration fee: USD 2,500 per year (2025). Renewal annually. Valid 12 months from date of registration.
Manufacturer code: Assigned by DDTC at registration. Format: M-XXXXX. Listed on all ITAR export documents + commodity cases.
ITAR registrant database: Public search at https://www.pmddtc.state.gov/databases/reg_data.asp. Verify supplier ITAR registration.
Eligibility: US person (citizen / national / lawful permanent resident). Foreign person can register through US subsidiary + US agent.
Foreign person definition: Non-US citizen + non-US permanent resident + non-US entity. Subject to ITAR for US defense articles.
Registration requirements: (1) US person status. (2) No debarment / suspension. (3) Compliance with AECA + ITAR. (4) Designated US agent for foreign persons.
Documentation: Form DS-2032 + supporting docs + registration fee + agent designation (foreign persons).
Validity: 12 months. Renewal required annually 60 days before expiry.
B2B procurement: Verify supplier ITAR registration via DDTC database. Request copy of manufacturer code certificate.
Common B2B mistake: Using ITAR-restricted component without verifying ITAR registration. Penalty: Up to USD 1M per violation + 10 years prison.
Export Licensing + DSP
ITAR export licensing per 22 CFR 125. DSP-5 (permanent) + DSP-73 (temporary) + DSP-61 (transient) licenses.
DSP-5: Permanent export license. Standard license for ongoing defense trade. Reviewed by DDTC.
DSP-73: Temporary export license. For temporary export with return to US. Used for demonstrations, repairs.
DSP-61: Temporary export of unclassified defense articles. For items not returned. Used for emergency operations.
DSP-85: ITAR exemption. For items exempt from licensing per 22 CFR 126.
Export: Ship / transfer / release defense article to foreign person. Triggers licensing requirement.
Re-export: Export of US origin defense article from one foreign country to another. Also subject to ITAR.
Deemed export: Release of US defense technology to foreign national within US. Subject to ITAR (per EAR Part 734 for dual-use).
License application: Form DSP-5 + commercial invoice + purchase order + end-use statement + consignee certification.
Review time: 60-120 days typical. Expedited review available for emergency / humanitarian.
License fees: USD 250 per license application + USD 500-5000 per license (varies by commodity).
Validity: DSP-5 = 4 years (renewable). DSP-73 = up to 4 years (limited to temporary export).
Penalties: Civil penalty up to USD 500,000 per violation. Criminal up to USD 1M per violation + 10 years prison per violation. Voluntary disclosure may reduce penalty.
B2B recommendation: For defense cases requiring ITAR, request supplier ITAR registration + DSP license number + manufacturer code + DSP-5 or DSP-73 license for specific export.
EAR + De Minimis Rule (Dual-Use Items)
EAR (Export Administration Regulations) governs dual-use items. De minimis rule: US content < 25% w/w exempt from ITAR.
EAR: Export Administration Regulations. 15 CFR 730-774. Administered by BIS (Bureau of Industry and Security).
EAR scope: Dual-use items (commercial + military potential). EAR99 (not on CCL) or Commerce Control List (CCL).
CCL: Commerce Control List. 10 categories + 5 product groups. ECCN (Export Control Classification Number) format: xYzzz.
De minimis rule: If US origin controlled content < 25% w/w, foreign-made item may be exempt from ITAR / EAR controls. For certain countries < 10%.
Sensitive countries: Iran, North Korea, Syria, Cuba = 0% w/w de minimis (essentially no tolerance).
Country Group D:1 (national security): 10% de minimis for most US content. Some categories 0%.
Country Group D:5 (China): 25% de minimis reduced to 0% for many categories. Wide-spread controls.
ITAR vs EAR: ITAR = defense articles (USML). EAR = dual-use (CCL). Item on both lists = ITAR takes precedence.
Classification: First step for any export = determine ITAR vs EAR. ITAR = USML Category. EAR = ECCN or EAR99.
Self-classification: Allowed for EAR99. Required to submit classification request for CCL items (Commodity Classification Request).
B2B protection: For US defense cases with foreign content, calculate US content % w/w. If < 25%, may be exempt. If > 25%, ITAR license required.
B2B recommendation: For B2B protective cases, request supplier EAR/ITAR classification + US content percentage + de minimis calculation + ECCN or USML Category identification.
ITAR Compliance + B2B Procurement
ITAR compliance for B2B defense protective cases. 5-step procurement workflow + documentation + recordkeeping.
Step 1: Determine ITAR status. Item on USML? Yes -> ITAR applies. No -> EAR or unrestricted.
Step 2: Verify ITAR registration. Supplier + manufacturer ITAR-registered via DDTC database lookup.
Step 3: Classify defense article. USML Category I-XXI. Identify specific subparagraph.
Step 4: Apply for export license. Form DSP-5 (permanent) or DSP-73 (temporary) per end use + consignee.
Step 5: Maintain records. ITAR records retained 5 years after last activity per 22 CFR 122.5.
Recordkeeping requirements: (1) License application + approval. (2) Export documentation. (3) Consignee statements. (4) End-use verification. (5) DSP-73 return verification.
Voluntary Self-Disclosure: If ITAR violation discovered, self-disclose to DDTC within 60 days. Reduces penalty significantly.
Compliance program: Recommended for all ITAR registrants. Designate Empowered Official (EO) + compliance committee + training + audit.
B2B audit: Annual ITAR audit recommended. Review export documentation + license usage + DSP-73 returns.
Foreign person access: Foreign nationals visiting US facility require ITAR pre-screening + escort + technology control plan (TCP).
Cloud / SaaS: Defense articles in cloud must use US ITAR-compliant cloud (GovCloud + ITAR contract + access controls).
B2B recommendation: For B2B defense protective cases, request supplier ITAR registration + DSP license + manufacturer code + voluntary self-disclosure + recordkeeping. Annual audit recommended.
Key Takeaways
- ITAR (22 CFR 120-130) controls defense articles on USML (21 categories). Administered by State Department DDTC.
- ITAR registration USD 2,500/year required for manufacturing / exporting defense articles. Manufacturer code assigned.
- DSP-5 (permanent) + DSP-73 (temporary) + DSP-61 licenses required for ITAR exports. Application 60-120 days.
- De minimis rule: US controlled content < 25% w/w = exempt. Sensitive countries 0%.
- B2B recommendation: For defense protective cases, verify ITAR registration via DDTC database + request DSP license + manufacturer code + maintain 5-year records.
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