Since the election of President Trump, the firearm industry had been in a tight spot. While they’re undoubtedly better off than if an anti-gun president occupied the Oval Office and heavily restricted the industry, they’re still in a rough patch. They need more buyers and, frankly, the market in the United States kind of is what it is.
Luckily, the Trump administration is looking for ways to help the beleaguered industry. In particular, by easing trade restrictions that will allow companies to sell to buyers outside of the United States.
In a move aimed at boosting the sale of U.S. firearms and ammunition abroad, the Trump administration has eased regulations on some commercial firearms exports.Honestly, this is how it should have gone from the beginning.
American manufacturers will have fewer registration requirements in order to obtain an export license, as the State Department moved jurisdiction of certain firearms sales to the Commerce Department. The change, announced last week, was entered into the Federal Register on Thursday. It will be effective March 9.
The long-delayed rule change, which began under the Obama administration, is intended to lower costs for U.S. gun-makers such as American Outdoor Brands Corp. and Sturm, Ruger and Co., while refocusing regulatory attention on weapons sales that could pose national security risks.
For example, under the Arms Export Control Act, the State Department must disclose any commercial arms sale worth $1 million or more to Congress for review. The Commerce Department has no such requirement.
What’s more, the State Department requires an annual fee from companies in the industry, whereas Commerce does not require such a fee.
“Exports of firearms and related items that do not perform an inherently military function or provide the United States with a critical military or intelligence advantage – including many articles that are widely available in U.S. retail outlets – will move to the Commerce Department’s export licensing controls,” assistant secretary of State for Political-Military Affairs R. Clarke Cooper wrote in an emailed statement to CNBC.
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