Glossary / Defense / ITAR

ITAR

Also known as: International Traffic in Arms Regulations · ITAR compliance

Defense

The U.S. export-control rulebook governing defense-related technology, hardware, and technical data on the U.S. Munitions List.

The International Traffic in Arms Regulations (ITAR) implement the Arms Export Control Act by controlling the export, reexport, retransfer, and temporary import of "defense articles" and "defense services" designated on the United States Munitions List (USML). Administered by the State Department's Directorate of Defense Trade Controls (DDTC), ITAR covers a wide range of military and defense-related hardware — along with the technical data and software needed to develop it. (The specific controlled items, such as missiles and missile components, certain satellites and space systems, and unmanned aerial systems, are enumerated on the USML in 22 CFR Part 121, not Part 120.) Because "export" includes releasing technical data to a foreign person inside the United States, a startup that builds, designs, or even shares controlled technical data — including with foreign-national employees on U.S. soil — likely must register with DDTC and obtain its approval before exporting or disclosing it. Violations can carry steep civil and criminal penalties (the specific sanctions are set out in 22 CFR Part 127).

Source: 22 CFR Part 120 (GovInfo)

Where you'll see it

Vendor contractApplicationPolicy

Why it matters for your business

  • ITAR compliance shapes hiring, cloud infrastructure, investor, and supply-chain decisions for defense-tech startups.
  • An ITAR violation can trigger regulatory investigations, fines, and third-party claims touching D&O, E&O, and cyber policies.
  • Many policies contain trade-control/sanctions exclusions that hinge on the insured's ITAR posture.

People also ask

Does ITAR apply to software and technical data?

Yes. ITAR controls not just physical hardware but also technical data, drawings, and source code related to items on the U.S. Munitions List — and even sharing that data with foreign persons inside the U.S. can be a controlled "export."

How does ITAR affect insurance?

ITAR classification is central to underwriting: violations can drive regulatory and third-party claims across D&O, E&O, and cyber, and many policies include trade-control or sanctions exclusions that depend on your ITAR compliance.

Ready to take the next step?

Definitions are educational and may be modified by your specific policy language, endorsements, and state rules. For regulatory guidance, refer to the California Department of Insurance or the NAIC.

Reviewed by Andrei Craciunescu, CA Licensed Insurance Broker #4467994

Last updated: July 2026.