Export Compliance and Magnets:
Regular readers of this blog likely already know that Dura Magnetics designs and manufactures comprehensive magnetic solutions for a wide variety of industries. As part of this, we are sometimes called on to perform design and manufacturing on projects tied to Aerospace and Defense contract work. Oftentimes, the magnets and magnetic assemblies used in these projects have technology export restrictions.
These export restrictions can be applied by several government agencies, including the Department of Defense, Department of Commerce, Department of Energy, etc. Each have their own specific requirements for export control, and each have to be “Flowed Down” to Vendors. The restrictions help ensure that U.S. defense secrets and products are not transferred (exported) to a specified list of countries or individuals.
Unauthorized Technology Transfer (Escape):
One commonly misunderstood aspect regarding the Export Compliance is that an “escape”, where an unauthorized transfer occurs, is not limited to the physical product. The “know-how” surrounding the product or device also cannot be transferred. This know-how can be drawings, data sheets, Bills of Materials, Process Flows, marketing literature, emails with key individual names, software, verbal communication, etc. Simply emailing a component drawing of an Export Controlled device to a machine shop across town to bid on work could be considered an unauthorized transfer of technology unless specific actions and safeguards are taken. (The physical product, software code, or drawing need not leave the United States for an unauthorized technology transfer to occur.)
Department of Defense (ITAR):
When working with items listed on the United States Munitions List (USML), one must be registered and compliant with the International Traffic in Arms Regulations (ITAR). It is not sufficient to have compliant procedures and protocols, but one must also be ITAR registered with the Directorate of Defense Trade Controls (DDTC).
Department of Commerce (EAR):
Many “Dual Use” items, those that are used in both commercial and military applications, are the responsibility of Export Administration Regulation (EAR). The Department of Commerce is charged with implementing and enforcing EAR. A product that is under the jurisdiction of EAR will be on the Commerce Control List (CCL) and have an Export Control Classification Number (ECCN).
Department of Energy (DOE) and other Government Agencies:
The DOE and various other U.S. government agencies will have their own requirements regarding export compliance, and it may vary by the facility. Oftentimes, a submission of your Technology Control Plan (TCP) and relevant SOPs will be required for approval before being considered as a vendor.
Export Compliance and Magnets:
Most of the magnet alloy produced in the world originates from outside of the United States. There are no U.S. owned and operated Mills producing Rare Earth Neodymium Iron Boron in the United States and only a few producing Alnico or Samarium Cobalt. Most all magnet vendors source completed magnets and assemblies from foreign countries, which is in direct conflict with Export Compliance as the technology is transferred to either an unvetted source or non-U.S. based personnel.
Dura Magnetics maintains domestic design and magnet fabrication in the U.S., which allows Dura to meet export compliance requirements. At Dura, we can machine magnets and assemble complete sub-components inhouse, while adhering to the strict requirements of technological transfers associated with Export Compliance.
Because Dura Magnetics operates in accordance with and is ITAR compliant, we are able to supply magnets and magnetic products for companies that are in the defense and military industries or for companies that have defense and military requirements for their own customers.
The Specialty Metals Clause of the DFAR, while not an export restriction, does require Cobalt and Nickel based alloy to be manufactured in an approved country of origin. Oftentimes, this requirement is paired with ITAR, and Dura is able to provide both. For more information about Dura’s compliance with the DFAR Specialty Metals Clause, please refer to our Alnico Magnet Compliance or Samarium Cobalt Magnet Compliance pages.
Submit engagement requests, encrypted work product, or your FTP protocols for consideration to our dedicated Export Compliance email: ITAR@duramag.com
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