Thinking about getting an FFL 07

[IndyGunworks]

All 07s must pay ITAR. It's the law, doesn't matter if you export. $2250 a year. Ask me how I know

Could you elaborate... I was n 07 and never paid such a thing.

 

[engineerpower]

Could you elaborate... I was n 07 and never paid such a thing.

Exactly. It's a protection scheme to get your info to the Department of State for exporters; why it takes >$2000 every year or two to do so is beyond me.

Snippet of the law:
"Sec. 122.1 Registration requirements.

(a) General. 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 Office of Munitions
Control. Manufacturers who do not engage in exporting must nevertheless
register."

If you don't export, they have no business getting in yours. If you don't manufacture anything, they have nothing to ping you on. Same thing as 922(r), no prosecutions because it can't be enforced. They will strongarm you and send you officials letters telling you that you NEED to register and pay them, but if you're a small-town 'smith, get real.

Yeah, I got the CYA and "don't do it and find out hur hur hur" stuff. But tons of 07's don't do it, don't need to do it, and are far higher profile than you or me.

 

[IndyGunworks]

Huh... I was never even approached about such a thing.

 

[menzzer37]

Doesn't matter if you did or didn't, it's a State Department law. It's not optional and you don't have to export. There is a flowchart for paying and if you have a license, you pay. Do what you want, I'm sure there are tons of guys running shops who don't. We export and pay it. Our ATF inspector was keen on it. There is no way for ATF to check it because they don't cross talk, but it is right in your info packet that it is required.

 

[IndyGunworks]

Wasn't in my info packet. You export, that explains why you need it.

 

[menzzer37]

Again, it has nothing to do with whether or not you export. If you manufacture firearms, you have to pay. It's pretty clear. It's a registration fee for all manufacturers. Here is a dumbed down summation of payment w/law exerts:

ITAR: What is it, and why do I need to pay? | Firearms Law Group

 

[oliver88]

I

 

[engineerpower]

ITAR: What is it, and why do I need to pay? | Firearms Law Group

This is of course put out by a law firm with an inherent interest in getting your business.

Is there any case history of any litigation concerning this? Or 922(r)?

 

[IndyGunworks]

Show me on the ATF's website where it describes the requirements for licensure, that ITAR is required.

 

[oliver88]

If you manufacture items that are on the US munitions list then you will be required to register ITAR... ITAR and BATF are two separate sets of rules....The definitions for manufacture are completely different between the two government bodies.. This doesn't matter if you export or not..

The current administration is aggressively going after non ITAR compliant type 07's... They collected $65mil in fines last year and they are starting to go after small one man shops also.. It's another attempt at backdoor gun control. Right now it costs $2250 per year but there is nothing in place to prevent that price from going up.

 

[engineerpower]

Again, not seeing the case history. lots of reference to fines and "lots of dealers" taking heat, but all from law firms that want your business and no reference to actual cases of this actually happening.

 

[Squirt239]

Speaking with my ATF agent, I was told verbatim, "If you are going to manufacture firearms, even just building ARs, you MUST pay the ITAR, which is $2000 a year." Now, you don't have to pay it, you don't have to register, hell you don't even have to get a license. As for me and my world, I'm not going to jeopardize a portion of my life. Period. It's not a matter of whether or not I like it or agree with it. It's a tax to the crown. Pay up or lose your business and/or freedom.

 

[oliver88]

I am not going to waste my time trying to convince you guys about it--

It's your asses if you get fined

 

[tradertator]

I have absolutely no idea what your skill set is, so please don't take this as snarky. If you are truly a "gunsmith", I could see making a good living at it. There's a long line for work to be done by competant reputable guys like AJ Brown. But the title "gunsmith" gets thrown around pretty loosely by a lot of guys armed with a dremel and basic tools. It's a skill set many do not posses (myself included).
Working on AR's is like playing with Lego's and almost any guy willing to try, can put a lower receiver together. With the aid of a couple YouTube videos and a few specialized tools, the same guy can change out barrels / rails on an upper. But pulling barrels on most rifles, truing actions, timing guns, mill / lath work, etc.... are a completely different animal. I think it would be a ton of hassle and even more government bureaucracy to wade through for a very small return if your more of what I'd term as a hobbyist. Not to mention the liability involved, storing peoples crap / waiting on them to get it, and having strangers in and out of your home would suck. God forbid, but if something like the Manchin / Toomey gun bill ever gets pushed through, then I could see making some cash with a home based FFL transfer business, or setting up a table at gun shows running 4473's/

 

[LP1]

Kinda my thoughts too,Solsberry is pretty quiet and my work shop/shed is surrounded on all sides by family members with guns.I might reinforce the walls with metal or something.

Can your neighbors prevent a fire or tornado? Will someone be watching the shed 24x7? Can they prevent a customer from slipping and falling on your property?

I hate to be discouraging, but it seriously sounds like you have a LOT more homework to do.