CloudNC is working to achieve ITAR (International Traffic in Arms Regulations) compliance, which will allow the company to serve a broader range of customers in the highly regulated defense and aerospace sectors in the US and worldwide.
Compliance will enable CloudNC to handle sensitive technical data and materials essential for manufacturing critical components in these industries on behalf of its customers.
Understanding ITAR compliance
ITAR compliance refers to a company's adherence to the International Traffic in Arms Regulations, which control the export, import, and transfer of defense-related articles, services, and technical data on the US Munitions List (USML).
Administered by the US Department of State’s Directorate of Defense Trade Controls (DDTC), ITAR governs items ranging from military equipment to technical data used in the design, manufacture, and maintenance of defense articles.
ITAR requires that any US company involved in the manufacture, export, or brokering of defense-related items take stringent steps to prevent unauthorized access or transfer of sensitive data.
The importance of ITAR in manufacturing
As the US looks to reshore high-value manufacturing capabilities, particularly in defense and aerospace, many manufacturers now require their suppliers to be compliant with current and forthcoming regulatory standards to protect sensitive data.
Precision manufacturing of defense and aerospace components often involves handling controlled technical data and materials that fall under ITAR regulation. Therefore, compliance is crucial for ensuring secure, authorized access to sensitive information, protecting against both accidental and deliberate data exposure.
CloudNC's advanced CNC machining technology is well-suited to producing these highly sensitive components. Achieving ITAR compliance will allow the company to meet the growing demand for secure, precision manufacturing in industries that require strict regulatory oversight, while remaining agile and supporting those companies’ needs with market-leading AI.
Dr Andy Cheadle, CTO of CloudNC, said: “Manufacturers across the US are eager to adopt CloudNC’s solutions to enhance their machining processes, particularly those producing critical components for defense and aerospace applications. These industries require the highest levels of certification and compliance, like ITAR, to ensure the secure handling of sensitive data and parts. Achieving ITAR compliance will give our customers confidence in our ability to meet their most stringent regulatory and security requirements.”
ITAR necessitates data residency controls to prevent the unauthorized export of technical data. This means that CloudNC will ensure that all ITAR-related data remains in US data centers and is only accessible to US persons, as defined under ITAR.
CloudNC's Compliance Journey: SOC 2, ISO 27001, NIST SP 800-171, and CMMC 2.0
In addition to ITAR, CloudNC is on track to complete several key compliance frameworks, including SOC 2 Type 2, ISO/IEC 27001, and NIST SP 800-171. These standards are designed to strengthen CloudNC's information security posture and ensure that the company meets stringent requirements for safeguarding sensitive customer data.
- SOC 2 Type 2 ensures CloudNC has effective controls in place over security, availability, processing integrity, confidentiality, and privacy.
- ISO/IEC 27001 is an internationally recognized standard for managing information security, ensuring that CloudNC follows a systematic approach to securing sensitive information.
- NIST SP 800-171 outlines requirements for protecting controlled unclassified information (CUI), a precursor to achieving CMMC (Cybersecurity Maturity Model Certification) 2.0 Level 2, which mandates advanced cybersecurity controls for defense contractors.
Dr Cheadle said: "By securing ITAR compliance alongside SOC 2, ISO 27001, and NIST 800-171, CloudNC will meet the highest standards of data security and regulatory compliance. This enables us to offer our customers unmatched confidence that their sensitive data is secure and that we can support the production of critical components for some of the world’s most demanding industries."
CloudNC expects to announce initial certifications by Q1 2025, reinforcing its commitment to becoming a trusted partner in the defense and aerospace sectors.
