Frequently, I read on discussion forums that many 07 manufacturers have not registered under the International Trafficking in Arms Regulations (ITAR) that is enforced by the Directorate of Defense Trade Controls (DDTC) and they give a milieu of reasons for not registering. Most reasons revolve around the fact that they are not “exporting” (even though ITAR applies to manufacturing, as well) or that the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) has told them that they don’t need to register or hasn’t informed them that they need to register.
I have previously written extensively on the requirement that 07 manufacturers register under ITAR and that the DDTC is now sending out non-compliance letters to non-registered 07 manufacturers.
In the November 2012 Newsletter, the ATF has now weighed in and declared that all 07 manufacturers (as well as Type 06 and 10) must register with the DDTC, unless the DDTC specifically exempts them. As I discussed in my previous article, the penalties for failure to register are severe, including, but not limited to, 20 years in prison, $1,000,000.00 in fines, plus civil penalties, per violation.
If you have not registered, it is imperative that you seek out competent counsel to discuss registering, as there are provisions for Voluntary Disclosures. We, at the Firearms Industry Consulting Group, are prepared to discuss your specific situation and advise on the best route to register and stay compliant. This is one area of the law where you can’t afford not to comply.