Recent changes to the definition of "manufacturing" and the impact on gunsmiths

For those of you who haven't been following the thread in the IP section, under SOTAR, in regards to changes made in the definition of manufacturing as it regards to gunsmithing, you should be following it closely.

In a nutshell, the DDTC has ruled that basically any gunsmith task is now going to be considered "manufacturing" which will require the business owner to register with the DDTC at a cost of about $2500 dollars.

This has the ability to severely impact, if not cripple, small business owners all over the country.

Tomorrow, the NSSF is having an import export conference and on the third day there is a small time slot where the DDTC will be present. I have already sent the NSSF an email asking for this to be addressed and I am urging everyone else to do so as well.

Below is a copy of the email I sent along with links to the NSSF:


I was wanting to inquire about the recent ruling of the DDTC regarding manufacturing and gunsmiths.

Since I saw there is an import and export conference scheduled for the 1st of August, I was wondering if the impact this ruling will have on small businesses will be addressed?

So far this has directly impacted several small shops in my area and there are many more around this country that I am sure will be impacted as well.

I noticed there was an hour of time budgeted on the last day of the conference for state department licensing. I hope that within that hour, some type of plea will be made on behalf of all the small businesses that will be adversely affected by their ruling.

Respectfully,

xxxxx xxxxxx



Feel free to change the wording as anyone sees fit. It's not much but the DDTC will be at the conference on the third day.


Conference agenda link:
http://nssf.org/govrel/importexportconference/agenda/


NSSF Contact link:

http://nssf.org/contact/


Link to the state department letter:

https://www.pmddtc.state.gov/compliance/documents/ITARRegReqFirearmsManufacturers.pdf

Please, take a minute to send something. Spread the word to your friends on other forums.

I agree that this should be in the '2A section'.

MikeTF said:

I agree that this should be in the '2A section'.

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I'd put it in every section if it wouldn't get me in hot water.

inkd said:

I'd put it in every section if it wouldn't get me in hot water.

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This is more communist BS. This administration has F&%$@d the small business owner so bad, I don't know how they will survive.

I hope God is watching.

My letter to the Maryland Congressional Delegation....not that it will do any good.

The President’s latest executive order destroyed my business plans. I run a small business in Maryland called MTB Gunworks. I mainly clean and fix broken guns. I also offer FFL transfer services. I started out small and I have expansion plans that I have trained for using my VA benefits. Based on Directorate of Defense Trade Controls (DDTC) new consolidated policy guidance about whether various activities related to firearms constitute manufacturing for International Traffic in Arms Regulations (ITAR) (22 CFR Parts 120-130) purposes requiring registration with DDTC and payment of a registration fee will forestall my expansion plans.

Re-barreling an old rifle with a shot out barrel is a common gunsmithing function. It requires chambering for specific cartridge and threading barrel so it can be fitted into existing rifle receiver (metal machining work). By far these are bolt action hunting rifles. Frankly, almost exclusively. Barrels replaced in semi-automatic rifles like the AR-15 are typically bought chambered and ready to go from manufactures as they are very standardized and they don’t need threading. It’s the hunting rifles that are not. That is what this law effects. Unless I do a lot of barrels a year the current cost structure with cost of lathe and now large DDTC licensing fee will put me at serving price point I would just recommend a new rifle.

In the end, this is an overreach that makes no sense. As a gunsmith I am not in the manufacturing business. In fact I would need a different FFL (type 7) license to be a manufacturer. The ATF has that manufacturing license aspect covered. Why this addition if I am not a manufacturer and I have ZERO plans to sell in the international arena. I will never violate ITAR in my business model.

I am a Gunsmith. Gunsmithing is the art of metal and wood work on firearms. An Armorer replaces parts! The language in the DDTC is completely ignorant of that concept. If this stands please address the value added in terms of the goals of ITAR which I concur with. I see none, only a back handed way to implement some aspect of gun control. It will backfire though as it will lead to more gun sales. It also will have zero effect on semi-automatic rifles like the AR-15 which I suspect is real target. This was not well thought out.

Maybe it would apply to and FFL with a class 7 manufacturing license that intends to sell internationally but it should not apply to a Gunsmith with a class 1 license. We can’t mass manufacturer. How does the DDTC now say I do when the ATF says I can’t as an FFL 01 licensee? Can you explain this to us? ATF should overrule DDTC as DDTC is not the entity overseeing firearms business. This is NOT a COMMON SENSE gun law.

One other issue of note. Those who sit on fence because I'm just a hunter and they are not coming after my rifles....this is an purely an encroachment on you specifically....

DDTC has found that many
traditional gunsmithing activities do not constitute manufacturing for ITAR purposes and,
therefore, do not require registration under the ITAR, particularly where such activities do not
require cutting, drilling, or machining and do not improve the accuracy, caliber, or operation of
the ITAR-controlled firearm beyond its original capabilities.

Taken from State's letter on this subject found here: http://static.hkpro.com/straightgrain/docs/ITAR_State_Rules.pdf

You should read it. Its pretty clear.

Some more detail from same letter:

Policy Guidance:
The guidance below is limited to domestic (U.S.) activities involving firearms (as defined in
Category I(j)(1) of the United States Munitions List (USML) (22 CFR § 121.1)) and related
ammunition that are .50 caliber (12.7 mm) or smaller - i.e., firearms in Category I,
paragraphs (a) and (b), related items in paragraphs (e)-(h), and ammunition in Category
III(a) for those firearms. Activities involving items elsewhere on the USML, including
Category I, paragraphs (c) and (d), are not included in the scope of this guidance.
1. Registration not Required – Not Manufacturing: In response to questions from persons
engaged in the business of gunsmithing, DDTC has found in specific cases that ITAR
registration is not required because the following activities do not meet the ordinary,
contemporary, common meaning of “manufacturing” that DDTC employs in implementing
the ITAR and, therefore, do not constitute “manufacturing” for ITAR purposes:
a) Occasional assembly of firearm parts and kits that do not require cutting, drilling, or
machining;
b) Firearm repairs involving one-for-one drop-in replacement parts that do not require
any cutting, drilling, or machining for installation;
c) Repairs involving replacement parts that do not improve the accuracy, caliber, or
other aspects of firearm operation;
d) Hydrographic paint or Cerakote application or bluing treatments for a firearm;
ITAR Registration Requirements – Consolidated Guidance July 22, 2016
Firearms Manufacturers and Gunsmiths
3
e) Attachment of accessories to a completed firearm without drilling, cutting, or
machining—such as attaching a scope, sling, or light to existing mounts or hooks, or
attaching a flash suppressor, sound suppressor, muzzle brake, or similar item to a prethreaded
muzzle;
f) Cosmetic additions and alterations (including engraving) that do not improve the
accuracy, caliber, or other aspects of firearm operation beyond its original
capabilities;
g) Machining new dovetails or drilling and tapping new holes for the installation of
sights which do not improve the accuracy or operation of the firearm beyond its
original capabilities; and
h) Manual loading or reloading of ammunition of .50 caliber or smaller.
Activities limited to the domestic sale or resale of firearms, the occasional assembly of
firearms without drilling, cutting, or machining, and/or specific gunsmithing activities
that do not improve the accuracy, caliber, or operations of the firearm beyond its original
capabilities (as described above) are not manufacturing within the context of the ITAR.
If you are not manufacturing, exporting, temporarily importing or brokering defense
articles or services, you are not required to register with DDTC.

Omega21 said:

DDTC has found that many
traditional gunsmithing activities do not constitute manufacturing for ITAR purposes and,
therefore, do not require registration under the ITAR, particularly where such activities do not
require cutting, drilling, or machining and do not improve the accuracy, caliber, or operation of
the ITAR-controlled firearm beyond its original capabilities.

Taken from State's letter on this subject found here: http://static.hkpro.com/straightgrain/docs/ITAR_State_Rules.pdf

You should read it. Its pretty clear.

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It's the cutting and drilling specifically calling out barrel threading and reaming for chambering work as being manufacturing hunters should take issue with. Its clear that an expensive lisence with DDTC is needed for that.

Sent from my SM-G930P using Tapatalk

Registration Required – Manufacturing: In response to questions from persons engaged

in the business of gunsmithing, DDTC has found in specific cases that ITAR registration is required because the following activities meet the ordinary, contemporary, common meaning of “manufacturing” and, therefore, constitute “manufacturing” for ITAR purposes:

a) Use of any special tooling or equipment upgrading in order to improve the capability of assembled or repaired firearms;

b) Modifications to a firearm that change round capacity;

c) The production of firearm parts (including, but not limited to, barrels, stocks, cylinders, breech mechanisms, triggers, silencers, or suppressors);

d) The systemized production of ammunition, including the automated loading or reloading of ammunition;

e) The machining or cutting of firearms, e.g., threading of muzzles or muzzle brake installation requiring machining, that results in an enhanced capability;

f) Rechambering firearms through machining, cutting, or drilling;

g) Chambering, cutting, or threading barrel blanks; and

h) Blueprinting firearms by machining the barrel.

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Omega21 said:

DDTC has found that many
traditional gunsmithing activities do not constitute manufacturing for ITAR purposes and,
therefore, do not require registration under the ITAR, particularly where such activities do not
require cutting, drilling, or machining and do not improve the accuracy, caliber, or operation of
the ITAR-controlled firearm beyond its original capabilities.

Taken from State's letter on this subject found here: http://static.hkpro.com/straightgrain/docs/ITAR_State_Rules.pdf

You should read it. Its pretty clear.

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I have read it. What is your point?

Omega21 said:

Some more detail from same letter:

Policy Guidance:
The guidance below is limited to domestic (U.S.) activities involving firearms (as defined in
Category I(j)(1) of the United States Munitions List (USML) (22 CFR § 121.1)) and related
ammunition that are .50 caliber (12.7 mm) or smaller - i.e., firearms in Category I,
paragraphs (a) and (b), related items in paragraphs (e)-(h), and ammunition in Category
III(a) for those firearms. Activities involving items elsewhere on the USML, including
Category I, paragraphs (c) and (d), are not included in the scope of this guidance.
1. Registration not Required – Not Manufacturing: In response to questions from persons
engaged in the business of gunsmithing, DDTC has found in specific cases that ITAR
registration is not required because the following activities do not meet the ordinary,
contemporary, common meaning of “manufacturing” that DDTC employs in implementing
the ITAR and, therefore, do not constitute “manufacturing” for ITAR purposes:
a) Occasional assembly of firearm parts and kits that do not require cutting, drilling, or
machining;
b) Firearm repairs involving one-for-one drop-in replacement parts that do not require
any cutting, drilling, or machining for installation;
c) Repairs involving replacement parts that do not improve the accuracy, caliber, or
other aspects of firearm operation;
d) Hydrographic paint or Cerakote application or bluing treatments for a firearm;
ITAR Registration Requirements – Consolidated Guidance July 22, 2016
Firearms Manufacturers and Gunsmiths
3
e) Attachment of accessories to a completed firearm without drilling, cutting, or
machining—such as attaching a scope, sling, or light to existing mounts or hooks, or
attaching a flash suppressor, sound suppressor, muzzle brake, or similar item to a prethreaded
muzzle;
f) Cosmetic additions and alterations (including engraving) that do not improve the
accuracy, caliber, or other aspects of firearm operation beyond its original
capabilities;
g) Machining new dovetails or drilling and tapping new holes for the installation of
sights which do not improve the accuracy or operation of the firearm beyond its
original capabilities; and
h) Manual loading or reloading of ammunition of .50 caliber or smaller.
Activities limited to the domestic sale or resale of firearms, the occasional assembly of
firearms without drilling, cutting, or machining, and/or specific gunsmithing activities
that do not improve the accuracy, caliber, or operations of the firearm beyond its original
capabilities (as described above) are not manufacturing within the context of the ITAR.
If you are not manufacturing, exporting, temporarily importing or brokering defense
articles or services, you are not required to register with DDTC.

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That's still total BS. What does having something on my firearm machined have to do with any international traffic?

teratos said:

That's still total BS. What does having something on my firearm machined have to do with any international traffic?

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The state department should not be involved in domestic issues that are already covered by another agency (ATF).

Absolute bs govt overreach.

teratos said:

That's still total BS. What does having something on my firearm machined have to do with any international traffic?

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People who see only that portion and who have built a couple AR's from pre-manufactured parts or swapped a few Glock parts out don't see this as a huge deal because "it doesn't affect me."

Those of us who have needed and used the services of a gunsmith know that this ITAR ruling is a bunch of fvcking bull$hit with a sole purpose of knocking out the small business owners.

Just like what happened in the 90's with the zoning and regulation changes to FFL holders, which resulted in a huge number of FFL dealers giving up their licenses.

inkd said:

People who see only that portion and who have built a couple AR's from pre-manufactured parts or swapped a few Glock parts out don't see this as a huge deal because "it doesn't affect me."

Those of us who have needed and used the services of a gunsmith know that this ITAR ruling is a bunch of fvcking bull$hit with a sole purpose of knocking out the small business owners.

Just like what happened in the 90's with the zoning and regulation changes to FFL holders, which resulted in a huge number of FFL dealers giving up their licenses.

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You can't even get a barrel threaded or crowned. If you have a sunroof put in a car, are you "manufacturing" a car? This is purely designed to make life harder on gun owners.

Maybe this will wake up Texas and the rest of America.

teratos said:

You can't even get a barrel threaded or crowned. If you have a sunroof put in a car, are you "manufacturing" a car? This is purely designed to make life harder on gun owners.

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Spot on analogy.

A good number of part time 'smiths will just close up shop because the revenue won't justify the cost of a license.

2a

well this s---s, so let me ask I just purchased about four months ago a used wood duplicating machine with rifle stock add on manually operated by hand with copying probe in one hand and other side is a router. Its not reassembled yet just planning for the future/retirement years my intent is to duplicate original rifle stocks maybe pistol grips offering new stocks for those that are broken or just damaged not changing their original capabilities. I thought I had this figured out by housing stocks only with out their actions and should be operating legally. so my question is with the proposed changes sounds like I need be registered and pay the 2500.00 bucks