ITAR Registration -- Plan on Paying your Gunsmith more...
- Thread starter Rustystud
- Start date
It comes from:
Title 22, Subchapter M, Section 122.2(a)
"Any person who engages in the United States in the business of manufacturing or exporting or temporarily importing defense articles...."
This is included in the document you reference under the first paragraph of Section I, "Registration"
"In accordance with the AECA, registration with the State Department (via DDTC) of all U.S. persons that manufacture or export defense articles..."
It's independent of whether you export or import. If you manufacture defense articles at all, you are required to register and pay the fee. The change is that this hasn't been enforced for gunsmithing activities in the past. Now it will be.
Highlighted a few points for those that think it affects "export" only.
It reads "OR", not "AND".
Forum Boss
Administrator
SEE: http://bulletin.accurateshooter.com...mpose-itar-registration-burdens-on-gunsmiths/
As explained in our Daily Bulletin article dated 7/29/2016, this registration requirement does NOT require actual export or even intent to export. This is very clear from section 122.1 of ITAR:
§122.1 Registration requirements.
(a) Any person who engages in the United States in the business of manufacturing or exporting or temporarily importing defense articles, or furnishing defense services, is required to register with the Directorate of Defense Trade Controls under §122.2. For the purpose of this subchapter, engaging in such a business requires only one occasion of manufacturing or exporting or temporarily importing a defense article or furnishing a defense service. A manufacturer who does not engage in exporting must nevertheless register.
Here is the DDTC document you guys should read: https://www.pmddtc.state.gov/compliance/documents/ITARRegReqFirearmsManufacturers.pdf
Yes, this is kind of crazy. Why should the Dept. of State have ANY control over products that never leave US borders? I do believe this is being done to extend federal enforcement power over gunsmiths without going through Congress. As long as some agency run by political appointees can set the registration requirements and annual fees, with zero Congressional oversight, this is very dangerous. The next "Guidance" document from the DDTC could say "Fees increased to $25,000 per year".
As explained in our Daily Bulletin article dated 7/29/2016, this registration requirement does NOT require actual export or even intent to export. This is very clear from section 122.1 of ITAR:
§122.1 Registration requirements.
(a) Any person who engages in the United States in the business of manufacturing or exporting or temporarily importing defense articles, or furnishing defense services, is required to register with the Directorate of Defense Trade Controls under §122.2. For the purpose of this subchapter, engaging in such a business requires only one occasion of manufacturing or exporting or temporarily importing a defense article or furnishing a defense service. A manufacturer who does not engage in exporting must nevertheless register.
Here is the DDTC document you guys should read: https://www.pmddtc.state.gov/compliance/documents/ITARRegReqFirearmsManufacturers.pdf
Yes, this is kind of crazy. Why should the Dept. of State have ANY control over products that never leave US borders? I do believe this is being done to extend federal enforcement power over gunsmiths without going through Congress. As long as some agency run by political appointees can set the registration requirements and annual fees, with zero Congressional oversight, this is very dangerous. The next "Guidance" document from the DDTC could say "Fees increased to $25,000 per year".
Kyle Schultz
Gold $$ Contributor
Has anyone contacted the NRA? Can we fight this via the Congress?
NRA/ILA has issued a bulletin. I do not recall seeing their response/actions to the rule.
gme
Site $$ Sponsor
Can any legal action be taken?
Hi, can we get an additional title to this thread so more people will see it?
Scott Parker
shortgrass
Silver $$ Contributor
Regulations don't get "voted on",, they just get imposed!
Not only is it in effect it dates back 5 years . Punishment can be 10 years and a million $ fine per each violation . Larry
Nate they were required by law to have it 5 years ago . Or when it was put into law. Larry
Time started when the law was made 5 years ago. Any gun work that was done previously can be charged with both a fine and jail time for each job . And if you apply for the license it would make them aware of previous work. Larry
Below is off the ATF website https://www.atf.gov/file/82791/download
Gunsmithing Date approved: December 27, 2010
A dealer is “engaged in the business” of gunsmithing, as defined in 18 U.S.C. 921(a)(21)(D) and 27 CFR
478.11, when he/she receives firearms (frames, receivers, or otherwise) provided by a customer for the
purpose of repairing, modifying, embellishing, refurbishing, or installing parts in or on those
firearms. Once the work is completed, the gunsmith returns the firearms, and charges the customer for
labor and parts. As with an individual customer, a licensed dealer-gunsmith may receive firearms
(properly identified with a serial number and other information required by 27 CFR 478.92) and conduct
gunsmithing services for a customer who is a licensed importer or manufacturer. A dealer-gunsmith is
not “engaged in the business” of manufacturing firearms because the firearms being produced are not
owned by the dealer-gunsmith, and he/she does not sell or distribute the firearms manufactured. Once the
work is completed, the dealer-gunsmith returns the firearms to the importer or manufacturer upon
completion of the manufacturing processes, and does not sell or distribute them to any person outside the
manufacturing process. Under these circumstances, the licensed dealer-gunsmith is not “engaged in the
business” of manufacturing firearms requiring a manufacturer’s license.
In contrast, a dealer-gunsmith may make or acquire his/her own firearms, and repair, modify, embellish,
refurbish, or install parts in or on those firearms. If the dealer-gunsmith then sells or distributes those
firearms for livelihood and profit, the dealer-gunsmith is engaged in his/her own business of
manufacturing firearms. A person engaged in the business of manufacturing firearms for sale or
distribution is required to be licensed as a manufacturer, identify/mark all firearms manufactured,
maintain permanent records of manufacture, submit annual manufacturing reports, and pay any taxes
imposed on firearm manufacturers. A licensed dealer-gunsmith who becomes licensed as a manufacturer
must also segregate all firearms manufactured for that business separately from firearms for which
gunsmithing services are being performed.
To facilitate inspection and ensure that ATF can determine that a licensed dealer-gunsmith is not engaged
in the business of manufacturing firearms for his own sale or distribution without a manufacturer’s
license, licensees may take the following steps:
(1) maintain a copy of the current, active license of all contracted licensees;
(2) maintain a copy of the contract and all instructions for gunsmithing services rendered;
(3) maintain a copy of the invoices for gunsmithing services;
(4) timely and accurately reflect all firearms acquisitions and dispositions consistent with the contract
for gunsmithing services rendered; and
(5) in the case of a licensed dealer-gunsmith, maintain required bound acquisition and disposition
records for all gunsmithing activities separate from other dealer’s records.
Unless licensees take these steps, ATF may presume that a particular dealer-gunsmith is engaged in his
own business of manufacturing firearms for sale or distribution without a manufacturer’s license, and take
corrective administrative or other enforcement action.
Gunsmithing Date approved: December 27, 2010
A dealer is “engaged in the business” of gunsmithing, as defined in 18 U.S.C. 921(a)(21)(D) and 27 CFR
478.11, when he/she receives firearms (frames, receivers, or otherwise) provided by a customer for the
purpose of repairing, modifying, embellishing, refurbishing, or installing parts in or on those
firearms. Once the work is completed, the gunsmith returns the firearms, and charges the customer for
labor and parts. As with an individual customer, a licensed dealer-gunsmith may receive firearms
(properly identified with a serial number and other information required by 27 CFR 478.92) and conduct
gunsmithing services for a customer who is a licensed importer or manufacturer. A dealer-gunsmith is
not “engaged in the business” of manufacturing firearms because the firearms being produced are not
owned by the dealer-gunsmith, and he/she does not sell or distribute the firearms manufactured. Once the
work is completed, the dealer-gunsmith returns the firearms to the importer or manufacturer upon
completion of the manufacturing processes, and does not sell or distribute them to any person outside the
manufacturing process. Under these circumstances, the licensed dealer-gunsmith is not “engaged in the
business” of manufacturing firearms requiring a manufacturer’s license.
In contrast, a dealer-gunsmith may make or acquire his/her own firearms, and repair, modify, embellish,
refurbish, or install parts in or on those firearms. If the dealer-gunsmith then sells or distributes those
firearms for livelihood and profit, the dealer-gunsmith is engaged in his/her own business of
manufacturing firearms. A person engaged in the business of manufacturing firearms for sale or
distribution is required to be licensed as a manufacturer, identify/mark all firearms manufactured,
maintain permanent records of manufacture, submit annual manufacturing reports, and pay any taxes
imposed on firearm manufacturers. A licensed dealer-gunsmith who becomes licensed as a manufacturer
must also segregate all firearms manufactured for that business separately from firearms for which
gunsmithing services are being performed.
To facilitate inspection and ensure that ATF can determine that a licensed dealer-gunsmith is not engaged
in the business of manufacturing firearms for his own sale or distribution without a manufacturer’s
license, licensees may take the following steps:
(1) maintain a copy of the current, active license of all contracted licensees;
(2) maintain a copy of the contract and all instructions for gunsmithing services rendered;
(3) maintain a copy of the invoices for gunsmithing services;
(4) timely and accurately reflect all firearms acquisitions and dispositions consistent with the contract
for gunsmithing services rendered; and
(5) in the case of a licensed dealer-gunsmith, maintain required bound acquisition and disposition
records for all gunsmithing activities separate from other dealer’s records.
Unless licensees take these steps, ATF may presume that a particular dealer-gunsmith is engaged in his
own business of manufacturing firearms for sale or distribution without a manufacturer’s license, and take
corrective administrative or other enforcement action.
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