BAD New Federal Export Regs $250 Tax!!

Status
Not open for further replies.

Keb

Member
Joined
Dec 1, 2005
Messages
327
Location
Colo & WA
The comment period for this ends Aug 27th! Please make sure people in export or manufacturing get a link ASAP!

sorry if formatting gets mushed....


To: [email protected]
Sent: Wednesday, August 20, 2008 3:16 PM
Subject: ITAR Regulatory Change, 22CFR Parts 122 and 129


Gentlemen, August 20, 2008


I am writing this to comment on how the International Traffic in Arms Regulations will put many small business owners and firearms companies out of business.

You may not know this, but citizens in many foreign countries wish to buy and import sporting rifles, shotguns for bird hunting, and ordinary handguns.

There is a big trade going on now where Europeans want to do "cowboy shooting", and shotgun sports. Many of their historic guns were seized or destroyed during the World War, and under the Communists. The guns they want are coming from America, even some newly manufactured sporting rifles such as Finland's Tikka's, which are allocated 97% to the USA.

Folks world-wide want to get Winchesters, Marlins, Mossbergs, Rugers, Colts, Smith & Wessons, Glocks, Kahrs, Remingtons, and Kimbers. There are many dozens of American small arms companies serving the civilian market. You are proposing a severe regulatory tax on that whole business!

You need to make a provision for small arms, and situations where low priced items involve many separate export licenses.

You are adding a minimum of $250 to every attempted export of what might be a $175 dollar Marlin 22 rifle, even if that permit doesn't go through. Your proposed regulation concentrates the fee on businesses doing the export paperwork because they have the license. So if Joe Blow, a common gun
collector sells one hunting rifle on Gunbroker.com to a foreign buyer, his transaction clobbers the exporter who finds himself quickly at the third tier with prohibitive $250 per gun fees.

I hope you quickly see that this regulatory change was written for actual military weapons systems, and unfortunately would be applied to sporting arms. If this is not changed, one of America's important exports
will go out of business. And the value of American gun collections will fall, because the worldwide buyers are setting the top prices.

You could charge a lower fee, say $20 on each civilian arms transaction where the value if below $10,000.

Isn't the purpose of your law to keep weapons systems from North Korea and Iran and Syria? They don't buy Winchesters.

Respectively,

XXXXXXX
 
Sorry, but their agenda has less to do with keeping guns out of the hands of repressive military regiems than trying to make citizens into serfs where all power rests with the govt. The best thing we can do is write and call our own legislators and tell them to withhold all funding from the U.N. if they try to ram this BS through.

Rant off
 
Thanks for bringing this to our attention. I am passing it along and spreading it around the internet right now.
 
I'm probably off base here, but isn't there a prohibition on taxing exports, at least federally

Nope, but as I understand it, this is not a tax on exports; its an increase in the registration fee levied by the state department on all licensed firearm manufacturers (07 FFLs). Doesn't matter if you don't export anything or never intend to export anything. 07 FFLs are required under ITAR to register with the State Dept. and pay the annual fee, which after this increase will be around $2k/yr.
 
Taxing exports, even if it is only an "effective" tax on exports by making an export license expensive, is a stupid and counterproductive way to make our compaines less productive globally. No wonder China is starting to kick our asses. We need to increase our exports, not artificially limit them.

Sorry, I don't even see this as being a RKABA issue. It's a global trade and economic issue and the government that always talks about "American efficiency" is working to kill it.
 
Nope, but as I understand it, this is not a tax on exports; its an increase in the registration fee levied by the state department on all licensed firearm manufacturers (07 FFLs).

That's just one proposal. DoS has to others as well. The first is an additional $250 per export permit per year after the first ten. I have no idea if a permit applies to one firearm, or one shipping container of firearms. The second proposal is a percentage paid on the gross value of product(s) exported the prior year.
 
It passed

It is 250 per gun, and they back dated it to levy the charge on transactions made before it was passed. My friend will have a $25,000 bill to pay, when he didn't collect the fee.
 
US Constitution, Article 1 Section 9
No Bill of attainder or Ex post facto law shall be passed.
...
No tax or duty shall be laid on articles exported from any state.

I am not a lawyer, but I think you have a pretty damn strong case here. I suggest you put on colorful superman underwear and shout "TO THE COURTS!". seriously.
 
Yeah the Ex Post Facto aspect would certainly be won. It might cost a hefty sum to win.
You cannot be penalized for something you did prior to a law pertaining to it.


This abuse of ITAR is intolerable. The program is supposed to be so government could limit sensative technology like classified defensive material from being exported.
To include firearms using 100 year old technology that everyone has, and simple plastic and metal components is just an extreme abuse.
It was a program started for a limited scope important purpose, that now allows broad discretionary practices.

The US really is ceasing to be the best nation from which to conduct business from. That part of the 'American Dream' is ceasing to be.
I expect to see a lot of businesses relocate to nations that do not infringe as much. Then they can import parts into the US market through distributors rather than deal with exporting them from the US and dealing with ITAR and similar crap.
With the moving of those businesses out of the US a lot of tax revenue will be lost.


On that note, what would be some great nations to be based from? Who has great firearm and other technology export laws? Minimal or no Tariffs and favorable taxes?
Hotspots in the Middle East are springing up at a record pace. I wonder what kind of laws a place like the United Arab Emirates has for arms companies looking for new homes.
It certainly would be sad if the wonderful rights of the US constitution, and the wonderful economic freedoms that were the backbone of America go seperate ways. When people are forced to seek one or the other on foriegn soil.
 
Last edited:
It is 250 per gun, and they back dated it to levy the charge on transactions made before it was passed. My friend will have a $25,000 bill to pay, when he didn't collect the fee.

Is your friend licensed as an exporter? How did he get the export licenses w/o paying in the past?
 
It is 250 per gun

Keb, do you have a cite, an advisory opinion, or something else to back this up? The way I read it its $250 on each additional application for a shipment, not on each unit contained in a particular shipment. There's many things covered by ITAR, all the way down to components, accessories, and single parts. A single shipping container of 500k M16 mags, for example, would be covered by one application, not 500,000.
 
Status
Not open for further replies.
Back
Top