DDTC Registration

[elwood4884]

Anyone have any experience with the Directorate of Defense Trade Controls? We are looking to export some of our products and I found out that even if you are not exporting, manufacturing bullet lube, cast bullets, gas checks, jackets, check maker tools, molds, etc require a license from the U.S. State Department.

It looks like this would even be in addition to any FFL registration that may be required.

What kind of turn around do they have on applications? Any postive or negative interactions? Red Tape?

Thanks.

[DukeInFlorida]

I'm not a lawyer, nor do I play one on TV.

However, what I have seen of the official rules for Class 6 license, profitable manufacture of ammunition and ammunition components (bullets, brass, primers, powder), do not seem to include:

Bullet Lube
Gas Checks
Check Maker Tools
Molds
Deep drawn jackets


However, the Class 6 License certainly covers the general definition of being in the business of making a profit creating and selling cast lead bullets, jacketed bullets, and any projectiles (not their subsidiary components, unless intended to be assembled at the same facility).

So, if you wanna make and sell gas checks, molds, bullet lube, etc, you should be fine with the ATF.

However, if you are in the business of casting and selling cast lead bullets, for profit, with or without jackets, you best have the Class 6 License firmly in place.

Here is the link for the ATF RULES (pdf format) on this specific subject.... <<<--- Click me (http://www.atf.gov/files/publications/download/p/atf-p-5300-4.pdf)

Here's an excerpt, with the current definition of ammunition:
Ammunition. Ammunition or cartridge
cases, primers, bullets, or propellent powder
designed for use in any firearm other
than an antique firearm. The term shall not
include (a) any shotgun shot or pellet not
designed for use as the single, complete
projectile load for one shotgun hull or casing,
nor (b) any unloaded, non-metallic
shotgun hull or casing not having a primer.

And, from another section:

Division. A Bureau of Alcohol, Tobacco
and Firearms Division.
Engaged in the business—(a) Manufacturer
of firearms. A person who devotes
time, attention, and labor to
manufacturing firearms as a regular
course of trade or business with the principal
objective of livelihood and profit
through the sale or distribution of the firearms
manufactured;
(b) Manufacturer of ammunition. A
person who devotes time, attention, and
labor to manufacturing ammunition as a
regular course of trade or business with
the principal objective of livelihood and
profit through the sale or distribution of the
ammunition manufactured;

Regarding the fees:

§ 478.42 License fees.
Each applicant shall pay a fee for obtaining
a firearms license or ammunition
license, a separate fee being required for
each business or collecting activity at each
place of such business or activity, as follows:
(a) For a manufacturer:
(1) Of destructive devices, ammunition
for destructive devices or armor
piercing ammunition—$1,000 per year.
(2) Of firearms other than destructive
devices—$50 per year.
(3) Of ammunition for firearms other
than ammunition for destructive devices
or armor piercing ammunition—$10 per
year.

Specific sections of the law, dealing with ammunition:
Ammunition F
Armor piercing (see “Armor piercing ammunition”)
Defined 921(a)(17)(A) 478.11
License
Importer 923(a)(2) 478.41(a)
Manufacturer 923(a)(1) 478.41(a)
Possession, receipt by prohibited person 922(g) 478.32(a)
Possession by juvenile 922(x)(2)
Sale to juvenile 922(x)(1)
Sale to prohibited person 922(d) 478.32(d)
Illegal alien 478.32(d)(5)(i)
Nonimmigrant alien 478.32(d)(5)(ii)
Waiver 478.32(f)
Sale to underage person 922(b)(1) 478.99(b)

[elwood4884]

So since I posted this I've found some additional information. This was on the Department of State's DDTC website:

All manufacturers, exporters, and brokers of defense articles, related technical data and defense services as defined on the United States Munitions List (Part 121 of the ITAR) (PDF, 7MB) are required to register with the Directorate of Defense Trade Controls (DDTC). Registration is primarily a means to provide the U.S. Government with necessary information on who is involved in certain manufacturing, exporting and brokering activities. Registration does not confer any export rights or privileges, but is a precondition for the issuance of any license or other approval for export

So I went ahead and emailed them to ask for clarification. Talk about all encompassing. ITAR covers a lot of things and even knowledge and technical data (CAD drawings, photos and writings) . I did ask them specifically if Gas Checks were addressed by ITAR and they in turn said that projectile components of any part are covered in this section:

(1) The components, parts, accessories and attachments controlled in this category include, but are not limited to cartridge cases, powder bags (or other propellant charges), bullets, jackets, cores, shells (excluding shotgun shells), projectiles (including canister rounds and submunitions therefor), boosters, firing components therefor, primers, and other detonating devices for the defense articles controlled in this category.

I did kind of explain that the defense uses of gas Checks are quite minimal if any. They stated that the use is irrelevant and gas Checks used as part of a projectile are an item covered under ITAR and therefore the manufacturer of them is required to be registered with the DDTC.

We did go ahead and register after that conversation. There was a benefit to this registration also. Offers us the opportunity to export by obtaining export licenses for our products.

So looks like this is an item not regulated by the ATF but by the DOS.