Originally Posted By csementuh:
Originally Posted By jrzy:
There are a lot of 07's who research and develop prototypes a long time before they have a finished product.
If you are an 07 and are not done with these weapons , even if they are done enough to do a demo that does not mean you are finished with the MFGing process
You don't submit a form 2 until it is done to your satisfaction.
This is in stone with the ATF
A weapon or weapons are not done and form 2ed until we say they are complete.
Just because you have an 07 does not mean you have to reg with ITAR
If you make anything of the munitions list "make" MFGer"
You can buy some time
To all the guys who are worried about getting popped and going to federal prison?
I'll say this, there are exemptions for 07's who are building AR's and other things, they say we have to do our own CJ letters , which we are working on.
They have these rules and will not clarify them to us.
Those exemptions are good for everyone in a criminal court case , they cannot stand up in a federal court and say you avoided paying to reg because you make this and that when this and that has already been exempted out by ITAR themselves.
We had one law firm in NYC tell us there is no charge ITAR can bring for just not reg.
This law firm does nothing but customs work & export.
They told us that every ITAR charge or penalty was tied to exporting along with not reg.
It really pisses me the fuck off.
That is why we are going to file our exemption letters for AR's and AR pistols.
On the first federal case where someone fights this "fee" ITAR will be overturned.
We already pay a lic fee to operate , it is to the BATFE
IF THIS WAS TRULY A REG FEE IT WOULD BE $2250 PER YEAR!
07's who do not export do not receive any benefit from ITAR
I'm sorry, but you are a little incorrect. The NFA Handbook and the GCA laws state:
"7.3.2 Filing ATF Forms 2. All firearms manufactured during a single day must be included on one
Form 2 and must be filed by the manufacturer no later than the close of the next business day. The
manufacturer must prepare the form in duplicate, file the original with the NFA Branch, and keep the
copy with the records required to be kept."
The F2 needs to be filled by the close of the second business day after creation. If you just drilled the sear pin whole in a receiver or built an auto sear, you'd best file the F2 ASAP. That doesn't mean you can't destry that one and make more, or change stuff later, but you can't just build machine guns and leave them sitting around for days, weeks, or months at a time.
The official stance from the Department of State is that ALL FFL 07's need to be registered and paying ITAR. In their eyes a 07 is a 'manufacturer' and is required to abide by ITAR.
Nearly every firearm piece is on the US Munitions List and is covered by ITAR. As you stated a Commodity Jurisdiction (CJ) is needed to clarify what you are building is exempt. The CJ covers only one model product only. You would need to do a different CJ for anything you plan to make. I've heard that getting a CJ granted for something that is expressing on the Munitions List (and most everything is) is about as rare as seeing a unicorn. The CJ keeps you safe, but it seems pretty hard to get a CJ on something like an AR-15 in which you are assembling pieces that are almost all on the USML.
The law firm sounds correct, but is it worth the risk, that's the question?
The guy from the DoS told me that unless they see your company name come up on a list of something that is being exported they wouldn't know your sales. The full list of FFL's by type however is listed for public access on the ATF's website. Do you trust the DoS won't simply download the list and draft up some letters? It's kinda one of those things that just because you can get away with it doesn't mean you won't get caught.
You are correct to say that manufacturers who do not export do not *benefit* from ITAR, but unfortunately it does keep *not* registering from being *illegal*.
I like what you are saying very, very, much, but to be completely honest it's still too gray to make that decision.