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Obama Issues Executive Order That May Drive Gunsmiths Out of Business

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Obama Issues Executive Order That May Drive Gunsmiths Out of Business

Last Friday President Obama issued an order which changed the definition of a “manufacturer” under the ITAR treaty regulations, a change which now means anyone who so much as threads a barrel on a firearm needs to pay thousands more dollars in fees and is subject to further registration by the BATFE. More from the NRA:

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By way of background, the AECA and ITAR concern rules by which military materiel is exported from, and imported to, the United States. The so-called “defense articles” governed by the AECA/ITAR are compiled in what is known as the U.S. Munitions List and include some, but not all, firearms and ammunition, as well as their parts and components.

Thus, for purposes of the regime, a spring or floorplate from the magazine of a controlled firearm is subject to the same regulatory framework as the firearm itself.

The AECA/ITAR require anybody who engages in the business of “manufacturing” a defense article to register with DDTC and pay a registration fee that for new applicants is currently $2,250 per year. These requirements apply, even if the business does not, and does not intend to, export any defense article.

 

 

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