Is ITAR something I need to be concerned with before or after?

Discussion in '1911 Gunsmithing' started by Integrity Arms, Oct 16, 2018.

  1. Integrity Arms

    Integrity Arms 1911 Pistol Smith

    Mar 20, 2017
    While reading into applying for the FFL 07 I come across ITAR which I understand if you are a 07 license holder it pertains to that type of FFL. Can someone pm me in short if I have to take concern with this while filing for the license, or can I deal with it after the license is in effect?
     
  2. NPV

    NPV Well-Known Member

    Nov 15, 2017
    I believe you will be required to register with the state department every year to the tune of $2,250. I may be wrong but that is how I understand it.
     

  3. Integrity Arms

    Integrity Arms 1911 Pistol Smith

    Mar 20, 2017
    So, it's basically some kind of activity tax..
     
  4. Integrity Arms

    Integrity Arms 1911 Pistol Smith

    Mar 20, 2017
    Ah but, I just found this. So, maybe it is no longer an issue or it hasn't become 100% required yet... Crossing my fingers lol I am already in hock upto my eyeballs, I won't see the black for the red for a few years the way it stands now. Don't know why the full line doesn't show below, but it says Trump to alleviate itar obligations for firearms, and ammunition manufacturers and gunsmiths.

    https://blog.princelaw.com/2018/05/...rm-and-ammunition-manufactures-and-gunsmiths/
     
  5. NPV

    NPV Well-Known Member

    Nov 15, 2017
    As far as I know it is still required there is proposal that would reclassify semi-automatic firearms under the EAR which in turn would essentially wave the DDTC annual fee as they would now be controlled under the Department of Commerce. But (and hopefully I am wrong) as far as I know this proposal has not gone into affect.
     
  6. Integrity Arms

    Integrity Arms 1911 Pistol Smith

    Mar 20, 2017
    I can't find where it was ever actually made mandatory for Smiths, I can see where there was a lot of talk about it being, but can't find where it says it's required of a gunsmith who doesn't export firearms or ammunition. I am sure I will find out soon enough. I guess if it's mandatory I can count on being in the red a bit longer than I had hoped after up and running, it was actually cheaper to start my construction business 30 years ago. I started out being able to get by on a whole lot less things for start up lol. This went from an expensive hobby to an expensive business venture.
     
    TangoWhiskeyFoxtrot and FWoo45 like this.
  7. NPV

    NPV Well-Known Member

    Nov 15, 2017
    Smiths don't necessarily need to register, but if you are manufacturer (which and FFL 07 is I believe) you will be required to:
    (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.

    It really sucks for the little guys like you that are just getting started or doing it as a hobby but the consequences of not registering are much worse. Like up to $1,000,000 or 20 years worse.
     
  8. Integrity Arms

    Integrity Arms 1911 Pistol Smith

    Mar 20, 2017
    Well from what I am seeing a gunsmith requires a 07 license because the manufacture would be me ordering parts and assembling a 1911.. So, looks like I might be stuck.. I know from past experience ignorance of the law is not a viable excuse. lol.
     
  9. Integrity Arms

    Integrity Arms 1911 Pistol Smith

    Mar 20, 2017
    I am now under the notion that the ATF inspector will help me decide this if what I am reading on a few articles is fact. Sometimes information on the internet can be so contradictory.. Really got to pick and chose, what you pick and chose lol
     
  10. NPV

    NPV Well-Known Member

    Nov 15, 2017
    Yup that is correct on both regards, it sucks.
     
    Steve Owens likes this.

You need 3 posts to add links to your posts! This is used to prevent spam.

Verification:
Draft saved Draft deleted