Navigating ITAR Compliance: How (and When) You Can Work with Non-U.S. Resources

Handling ITAR-controlled content comes with strict legal responsibilities. For companies that want to collaborate with non-U.S.-based resources—whether it's foreign employees, contractors, or cloud infrastructure—compliance isn't optional. In fact, missteps can lead to severe penalties, including criminal charges. Language translation is a perfect example of a service offering that relies heavily on non-U.S,-based resources to complete work. Depending on the languages required, and the project specifications, the limitations put on resourcing may be so restrictive that the project can only be completed by exploring licensing exceptions.

So, if required, how can you legally handle ITAR-controlled technical data or defense services with foreign persons or international partners?

Let’s break down the special licensing exceptions and mechanisms that make this possible—and when they apply.

🛡️ ITAR Basics: Why It’s So Restrictive

The International Traffic in Arms Regulations (ITAR) governs the export and handling of defense-related articles and services listed in the U.S. Munitions List (USML). Under ITAR:

• “Exports” include not just physical shipments, but also sharing technical data or access with non-U.S. persons—even if they’re located within the U.S. For example, a technical user manual would be considered technical data, and that includes both the English version and any translated versions.
  

• A “non-U.S. person” is anyone who isn’t a U.S. citizen or green card holder, regardless of where they are physically located. An important note here is that the ITAR regulations will require that the resource is not only U.S.-based, but also located on "American soil".
  

Unless you have explicit permission, foreign access is considered an export—and is illegal without a license or exemption.

✅ Exceptions & Licensing Paths for Foreign Access

Here are the legitimate, government-approved paths to allow foreign nationals or overseas resources to access ITAR content:

1. Technical Assistance Agreements (TAAs)

A TAA allows you to provide technical data or defense services to a foreign person or company.

• Commonly used when U.S. firms work with foreign engineering teams.
  

• Must be pre-approved by the U.S. State Department’s Directorate of Defense Trade Controls (DDTC).
  

• Specifies which foreign persons can access what data and under what conditions.
  

2. Manufacturing License Agreements (MLAs)

An MLA permits a foreign entity to manufacture defense articles based on U.S. technical data.

• Similar to a TAA, but focused on production.
  

• Also requires DDTC approval.
  

3. DSP-5 Licenses

A DSP-5 is a permanent export license used to authorize the export of hardware or technical data.

• May cover foreign nationals, allowing specific, one-time data transfers.
  

• Also useful for collaborating with international defense contractors.
  

4. Limited Exemptions under ITAR §125.4

ITAR contains narrow exemptions that do not require a license, but they are extremely limited. For example:

• §125.4(b)(9): Allows technical data transfers to U.S. persons abroad.
  

• §125.4(b)(10): Permits sharing with employees of a foreign subsidiary, only if prior licensing exists.
  

These do not generally permit open collaboration with foreign persons or use of overseas cloud environments.

5. Dual/Third-Country National (DN/TCN) Approvals

If your foreign partner employs staff from multiple countries, you may need DN/TCN approval for specific individuals.

• Requires vetting, nationality screening, and formal documentation.
  

• Often built into a TAA or MLA application.
  

🚫 What You Can’t Do Without a License

• Use non-ITAR-compliant cloud services abroad (e.g., regular AWS, Google Cloud, or Azure environments). This is particularly relevant to translation in that you can't use popular AI translation services like Google Translate, or Azure AI, which are often relied on to keep costs low, or translate large volumes of content.
  

• Allow foreign contractors or engineers to access ITAR data unless they're listed on an approved license.
  

• Store ITAR content on servers or in systems located outside the U.S. without a valid export license.
  

🔐 ITAR-Compliant Alternatives

If you’re restricted from using non-U.S. resources, these options can keep you compliant:

• Host ITAR data on dedicated, U.S.-based cloud platforms, like:
  

  • AWS GovCloud
    

  • Microsoft Azure Government
    

• Restrict access to U.S. persons only (citizens or green card holders).
  

• Implement secure, segregated systems for handling defense-related data.
  

🧭 Summary: Licensing Options at a Glance

Mechanism	Purpose	Allows Non-U.S. Access?	DDTC Approval Required?
TAA	Share technical data/services	✅ Yes (specified)	✅ Yes
MLA	Authorize foreign manufacturing	✅ Yes	✅ Yes
DSP-5	One-time export of data/hardware	✅ Yes (defined)	✅ Yes
ITAR 125.4 Exemptions	Special cases (rare)	⚠️ Limited	❌ Usually not
DN/TCN Approvals	Authorize foreign nationals	✅ Yes (by name)	✅ Yes

⚖️ Final Thoughts

ITAR compliance isn't just a paperwork issue—it’s a serious national security mandate. If you're considering using non-U.S. engineers, offshore development teams, or cloud infrastructure, make sure you’re operating under the right licenses.

Pro tip: Always consult with a qualified ITAR compliance attorney or export control advisor before engaging foreign entities or individuals.

Need help mapping out a secure, ITAR-compliant development workflow? Or want a visual of how licenses like TAAs or DSP-5s fit into your project? Just let us know. Language Intelligence has many years of experience managing ITAR restricted translation projects, and we can help you with yours!