ITAR

[Paulyski 2,227]

This ITAR shit is weird... Check it out....

Look at the bottom link especially closely.

 

All US manufacturers, exporters, and brokers of defense articles, defense services, or related technical data, as defined on the USML, are required to register with US Department of State. Registration is primarily a means to provide the US Government with necessary information on who is involved in certain manufacturing and exporting activities. Registration does not confer any export rights or privileges, but is a precondition for the issuance of any license or other approval for export.[19] Registration fees start at USD$2,250 per year.[20]

 

 

Official ITAR documents

 

WIKI- ITAR

 

Anyone who manufacturers anything on the United States Munitions List as a business.

 

 

This thread kicked me off to the questions & reading.

 

 

Read section 122.1 It says even if you only manufacture 1 for business.

Maybe the word "Experimental" in 122.1- subsection 4 is a loophole? All of these are "experimental" depending on how one looks at it....

 

Any thoughts from class 7 FFL holders would be appreciated.

 

Yeah... A lawyer... I know

Edited April 9, 2010 by Paulyski

[bigj480 203]

[Paulyski 2,227]

I did some reading on the subject. WOW!! It seems that if you are in the firearms industry at all, you must pay!

Here is a summery I found. Keep in mind that this is put together by a law firm that serves the firearms industry.

OK… How does ITAR affect ME?

ITAR section 122.1 requires the registration of all manufacturers and exporters engaged in the firearms industry. The text is deceptively simple:

 

“Any person who engages in the United States in the business of either manufacturing or exporting defense articles or furnishing defense services is required to register with the Directorate of Defense Trade Controls.”

There is no definition for manufacturing within ITAR. Nevertheless, a definition from the Merriam-Webster Dictionary defines manufacturing as “to make into a product suitable for use,” or “to make from raw materials by hand or by machinery.” An 02/07 FFL/SOT is engaging in manufacturing activity by submitting a Form 2 to ATF. Are only individuals and businesses licensed as an 02/07 FFL/SOT required to register? No. Recall the italicized section of ITAR section 122.1. An individual or business that furnishes “defense services” is also required to register under ITAR.

 

What are “defense services?”

For an understanding of what constitutes defense services, an examination of the USML is required. Providing a service to an item listed in the USML will constitute defense services. Recall that USML section 1 governs automatic and semiautomatic firearms, while USML section 3 governs ammunition. Any business that engages in providing gunsmithing services or the commercial sale of ammunition is also required to register under ITAR.

You’re not a firearms manufacturer. Do you need to register?

ITAR only applies to firearms, right? WRONG. ITAR applies to all items deemed to be significant military equipment. The guidance system in a Boeing 777 airplane? It’s governed by ITAR. Night vision manufactured by ITT? Also governed by ITAR. Remember – ITAR applies to technical data, in addition to arms and equipment. ITT learned this the hard way when the State Department levied a $100 Million dollar fine against the company for not following the requirements of ITAR.

 

You didn’t register. What are the risks?

Unfortunately, the penalties for not registering under ITAR are severe. Similar to the stiff penalties of the National Firearms Act, the AECA imposes a civil penalty of $500,000 per violation, and criminal penalties including a $1,000,000 fine per violation, or 10 years imprisonment. Think it can’t happen to you? Think again. During the period of 2004 through 2006, the DDTC levied $60 Million in fines. Of note, there were also 283 arrests, leading to 198 indictments, and 166 convictions within the same period. It should go without saying that a conviction for an AECA violation would likely be a felony, resulting in a prohibition to possession of firearms.

http://www.firearmslawgroup.com/publications/small-arms-review/80-itar-what-is-it-and-why-do-i-need-to-pay

Yeah, That's the idea I got too.

The ATF laws seem complex usually, however this one seems rather clear cut. There's a few words I think one may use as loopholes, but it's kinda tough.

Edited April 12, 2010 by Paulyski

[blackcorps 0]

Paulyski,

 

Been bouncing around abit (military). I would agree the ITAR is going to be a pain for you to get around.

 

Just strange shit. I noticed alot of activity here in Nevada with ATF compliance checks going on.

 

Watch your 6. Those bastards pop up everywhere. And you know they read alot of internet chatter.

 

R.H.

[G O B 3,516]

DAMN! I was just about to go into business making [reserved]. Now I will have to wait until I can get better financing and a Legal department before I go into manufacturing [reserved].

[Paulyski 2,227]

Paulyski,

 

Been bouncing around abit (military). I would agree the ITAR is going to be a pain for you to get around.

 

Just strange shit. I noticed alot of activity here in Nevada with ATF compliance checks going on.

 

Watch your 6. Those bastards pop up everywhere. And you know they read alot of internet chatter.

 

R.H.

Not even gonna try to get around it.

I make rock crusher 4x4 winch bumpers built to double as air tanks & they're about as tough as any Military bumper...

No special registration or weird laws around them. I figure I'll stick to the gun stuff as a hobby.

Fuck it.

 

There's a higher profit margin in the bumpers anyhow.

Edited April 10, 2010 by Paulyski