ITAR definitions that set the level of control

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1. Significant military equipment

Several definitions in the International Traffic in Arms Regulations (ITAR) decide how tightly an item or a transaction is controlled. Significant military equipment means articles that warrant special export controls because they have the capacity for substantial military utility or capability (22 CFR 120.36(a)). It includes every item on the Munitions List marked with an asterisk, and every classified article on the list (22 CFR 120.36(b)). How the list is organized is covered in how the munitions list is organized.

2. Major defense equipment

Major defense equipment is a subset of significant military equipment, defined by cost (22 CFR 120.37). It means any item of significant military equipment on the Munitions List with a nonrecurring research and development cost above $50 million, or a total production cost above $200 million. The definition comes from section 47(6) of the Arms Export Control Act, at 22 U.S.C. 2794(6). Some thresholds are set separately for it, such as the cap on the ten percent value tolerance for licenses (22 CFR 123.23). The cost charge on such equipment in government sales is covered in how the nonrecurring cost charge is calculated.

3. Classified and foreign origin

Classified means classified under Executive Order 13526 or an earlier order, together with a security classification guide or its equivalent (22 CFR 120.38). It also covers material classified under the corresponding rules of another government or an international organization. Classified exports are covered in licensing technical data and classified exports.

A foreign defense article or defense service is any article or service on the Munitions List that is not of American origin (22 CFR 120.39). Unless a provision says otherwise, the terms defense article and defense service cover both American and foreign origin items. Whether something is a defense article is decided only under the Arms Export Control Act and the regulations. A label given by a foreign government or international organization does not change that, whether it agrees or not.

4. Three levels of maintenance

Organizational or basic-level maintenance is the first level, done directly on the equipment without specialized training (22 CFR 120.45(a)). It covers repairing, inspecting, servicing, calibrating, lubricating or adjusting equipment, and replacing minor parts and line-replaceable units. Intermediate-level maintenance is the second level, done off the equipment on removed parts at designated shops, centers, tenders or field teams (22 CFR 120.45(b)).

Depot-level maintenance is the third level, done at a major repair facility, shipyard or field team with the necessary equipment and skilled staff (22 CFR 120.45(c)). It covers evaluation or repair beyond unit or organization capability, including overhauling, refurbishing, reconditioning and one-to-one replacement of defective parts. At every level, changes that improve only reliability or maintainability count as maintenance, so long as they do not enhance basic performance or capability. The levels reappear in the technical data exemptions, where intermediate or depot-level repair information needs a license or agreement approved for that purpose (22 CFR 125.4(b)(5)).

5. Affiliates

An affiliate of a registrant is a person that controls, is controlled by, or is under common control with the registrant, directly or through intermediaries (22 CFR 120.66(a)). Control here means being able to set or direct how the firm is run, in its general policies or daily operations (22 CFR 120.66(b)). Owning 25 percent or more of the voting securities creates a rebuttable presumption of control, unless another person controls an equal or larger share. The definition matters for registration (22 CFR 122.2(a)). A registration statement may include subsidiaries and affiliates that are more than 50 percent owned by the registrant, or that the registrant otherwise controls. The same paragraph bars registrants from setting up new entities to reduce registration fees. Registration is covered in registering as a manufacturer or exporter.

6. The empowered official

An empowered official is an American person who meets four tests (22 CFR 120.67(a)). The person must be directly employed by the applicant or a subsidiary in a position with authority for policy or management (22 CFR 120.67(a)(1)). The applicant must have empowered the person in writing to sign license applications and other requests (22 CFR 120.67(a)(2)). The person must understand the export control statutes and regulations and the criminal, civil and administrative penalties for breaking them (22 CFR 120.67(a)(3)).

The person must also have independent authority to inquire into any aspect of a proposed export, temporary import or brokering activity (22 CFR 120.67(a)(4)). That authority includes verifying the legality of the transaction and the accuracy of the information submitted. It also includes refusing to sign any application without prejudice or other adverse recourse. For a broker who is a foreign person, the empowered official may also be a foreign person meeting the same tests (22 CFR 120.67(b)).

7. Parties to the export

A party to the export means three groups (22 CFR 120.68(a)). The first is the applicant’s chief executive, president, vice presidents, other senior officers and officials such as the comptroller, treasurer and general counsel, and every board member (22 CFR 120.68(a)(1)). The second is the applicant’s freight forwarders or designated exporting agent (22 CFR 120.68(a)(2)). The third is any consignee or end user of any item to be exported (22 CFR 120.68(a)(3)). A conviction of any party to the export can ground a denial (22 CFR 120.18(a)(4)). Denials are covered in when a license is denied or revoked.

8. Port directors and the Commerce boundary

Port Directors are the Customs and Border Protection port directors at ports of entry, except at New York, where the title is Area Director (22 CFR 120.69). Items subject to the Export Administration Regulations are those on the Commerce Control List in part 774, and all other items meeting the definition in section 734.3 (22 CFR 120.58). Those regulations are found at 15 CFR parts 730 through 774.

Key terms

Significant military equipment	Asterisked and classified Munitions List articles needing special controls.
Major defense equipment	Significant military equipment above set development or production cost levels.
Depot-level maintenance	Third-level repair and overhaul at a major facility.
Affiliate	A person linked to a registrant by control or common control.
Party to the export	Senior officers, board members, forwarders, consignees and end users.

Every statement above links to the document behind it. The full source list for this piece is on the sources page.

This page describes public United States government programs for general information. It is not legal, regulatory or procurement advice, and it does not address the facts of any particular case.

How Sentfore supports this

The same terms shape what support can be provided in the field. Sentfore works at the delivery end of defense programs in difficult environments, providing secure movement, protective security, facilities and life support. Requirements can be sent through the contact page.