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ITAR

1430 Views 7 Replies 6 Participants Last post by  zappo
In the course of helping a friend set up as an 07 FFL I just discovered this:

US State Department - Policy - Directorate of Defense Trade Controls

On top of the ATF, the state tax people, and the Grass Gestapo, the Department of State has decided that "manufacture" of ... just about anything ... in any quantity ... must be "registered" with them. Supposedly the idea was to regulate export of munitions, but they've broadened their scope to include manufacture or sale, even if the item doesn't go out of the country.

If you make even one AK gas piston or muzzle nut, you're supposed to fork out $2,250 per year to "register" with the Department of State. And as far as I can tell, re-Parking an AK or sporterizing an old military rifle, which the ATF has now defined as "manufacturing", is also including.

Yow. That's $2,250 in start-up money he might as well just put a match to.

I've found some people who claim ITAR doesn't apply to 07 FFLs (supposedly they were told this by the ATF), but the link above seems pretty clear that they consider any part of a small arm, in any quantity, to require registration of the manufacturer with ITAR.

There are some fairly horrendous penalties (six figures, plus prison time) for not complying. They don't put any limitation on "manufacture", so according to their regs they could fine me or send me to prison for not sending them $2,250 to "register" with them last year and this year... every flat I've bent has been "manufacture" according to the ATF, anyway.

WTF, here? Just, WTF?
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or you could just sell the machinery to china and they can make the stuff and sell it on the global market with no restrictions, taxes or licenses required. which is happening as we speak.
No fake. My plans for offering fancy adjustable gas blocks for various barrel diameters have run straight into ITAR.

The $2250 "registration" is for *nothing*. Particularly since, as you said, I could simply have someone overseas make the parts and then just resell them here. It's just a poll tax for businesses.

ITAR applies to damned near everything, if you look at their list.
Which ITAR part number led you to the conclusion that "they've broadened their scope to include manufacture or sale, even if the item doesn't go out of the country."

I don't have time to read all the PDF's, but what I've skimmed relates to import and export, not domestic.
or you could just sell the machinery to china and they can make the stuff and sell it on the global market with no restrictions, taxes or licenses required. which is happening as we speak.
Even though that IS capitalism in it's rawest sense, I still can't stop getting a bad feeling from it. :grumble:
Even though that IS capitalism in it's rawest sense, I still can't stop getting a bad feeling from it. :grumble:

it is a weird,weird world when the USA is regulated to death by its protective government. and communist china is not!

what this tax is is protection for the big guy/snuff out the little guy.:sick:

you know who runs the state department the old gun grabbing hag does!:sick::grumble:
They have been requiring manufacturers for a while to register whether they export or not. There is an exemption for those with a SOT who only possess it for R&D, but you still have to register with them, it just doesn't cost $2250.00. They also don't like to talk to you about the exemption because they really like the free money. Someone here brought this up a while ago, and they registered as a R&D licensee. I would assume that you can't sell firearm you make if you go the R&D route.

I think I know someone in AZ who is a SOT and they don't sell anyone there stuff. They just like to tinker with MGs. They probably went the R&D route if they actually registered. A lot of US only sale mfgs have not registered and no one has come after them yet. The statue may be so vague and convoluted that they don't want it to be tested in court.

And they didn't expand the scope, your Congress people did by writing and passing very vague broad scoped convoluted laws. We all know the intent of the law is to regulate the outflow of arms. The intent of the law is irrelavent since we do not have a common law system, but a rule of law system. The wording of the statute is what gets applied regardless of intent.

-yarro
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or you could just sell the machinery to china and they can make the stuff and sell it on the global market with no restrictions, taxes or licenses required. which is happening as we speak.
:chinese:
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