$100 EXEMPTION DETAILS

Details about the exemption found in 22 CFR 123.17(A).

United States law (specifically the “ITAR” – International Traffic in Arms Regulations”) allows for the export without an export license of certain firearm-related parts and components.  This guide provides some details about the so-called “$100 Exemption.”  Here are the basics:

• Does not apply to any parts/components related to Shotguns (these are regulated by the U.S. Department of Commerce rather than the U.S. Department of State, and there is not equivalent exemption for shotgun parts in the Export Administration Regulations).
• Does not apply to ammunition-related parts and components.  These are classified as “Category III on the U.S. Munitions List, while the exemption only refers to “Category I(a) firearms.”
• Does not apply to “Significant Military Equipment,” which includes any firearm itself.
• Also does not apply to barrels, cylinders, frames (receivers), or complete breach mechanisms.
• Exemption can only be used and claimed by a DDTC Registered Exporter (not just any business, nor a foreign individual traveling in the US).
• As the Registered Exporter, we must still file documentation online (using the Automated Export System, or AES) to notify the government that we’re using this exemption, including the item description, tariff code, value, weight, date of export and Port of Exit.
• By law, orders cannot be broken up into smaller shipments to meet the $100 threshold.
• It is defined in the law as $100 “wholesale” value, so in limited cases we may export something that retails for slightly more than $100 USD if our wholesale cost is less than $100 USD.

OUR FEES FOR PROCESSING A $100 LOW-VALUE EXEMPTION

Prices do not include shipping, nor any taxes or duties that may be levied by the importing government.

FREQUENTLY ASKED QUESTIONS

about the “$100 Exemption”

 1.      *Why do we charge an exemption filing fee even for product that we sell?

The burden of regulatory compliance is costly, and our exporter registration required that allows us to claim this exemption can cost tens of thousands of dollars per year.  We’d be losing money if we didn’t charge, because we often make only $10 – $15 on the merchandise itself.  We provide this “Exemption Filing Service” as just that – a service to help others – more than a means for profitability.

2.      What about the other exemptions?  Like for guns made before 1899?

We have more information available about other exemptions, including the “pre-1899 exemption” on our website at www.borderview.com/services/for-individuals/.

 3.     Isn’t the exemption for $500 value, not $100?

While the ITAR does have a $500 exemption for certain other munitions-related components (found at 22 CFR 123.16(b)(2)), it specifically states that the exemption for firearms is found at 22 CFR 123.17, which is the ‘$100 exemption.’  Further, the exemption for firearm-related parts used to be $500, but was changed years ago to the present $100 level.

4.      How do I get started?

Complete the “Start an Export” form on our website at www.borderview.com/start-an-export/.

5.      Does the product have to be shipped to you first or can the seller send it strait to me?

Yes, the product must be shipped to us first, except in rare cases.  Because as the exporter we are required to verify that the item actually being exported is exactly as we described it on the license, we must have the items in our possession, and initiate export from here.  In rare cases, we may be able to make satisfactory arrangements otherwise; however as a standard procedure, the export must begin in our office.

 6.      Where should I have the box sent?  How should it be marked?

After you’ve made arrangements with us, have the item(s) sent to us at:

Borderview International

c/o ___(Your Name)___

1718 NW 56^th St, Suite 304

Seattle, WA  98107

 7.      Will my package be opened?

Yes, we have to make sure we’re exporting what we say we’re exporting.  Any apparent damage or deficiencies will be reported to you right away.

8.      How long does the process take?

We will typically process an Exemption Filing within 1-2 weeks of receiving your package.  Issues such as slow payment or complex shipping can extend the timeline.

9.      How much will shipping be to me, from Borderview International?

Whenever possible we use the United States Postal Service (USPS) to ship parts/components under the $100 exemption.  To determine postage costs from us to you, visit http://ircalc.usps.gov/, select your Destination Country, Package Type and estimated weight.  We ship either by Priority Mail International or Express Mail International – your choice.  (Some countries don’t allow any firearm-related items to be imported by mail.  To check regulations for your country, visit the USPS’ International Mail Manual Individual Country Listings here).

10.  If I’m going to be in the Seattle area, can I pick up the merchandise at your office?

In most cases, yes.  Just be sure to make arrangements with us in advance.

Finally, the Fine Print: Borderview International reserves the right to refuse any shipment whether it meets the qualifications herein or not.  This guide is meant for informational purposes only, and is not intended to be understood as complete or a full interpretation of the law.  Consult a lawyer licensed in your jurisdiction for qualified legal advice.  The importer is fully and completely responsible for complying with all import regulations within their country.  Rejection of a shipment by Customs or otherwise is not grounds for any sort of refund, for fees or shipping.  Borderview LLC is not responsible for any damage that occurs during shipment, whether shipment from the seller to our facility, or from our facility to the foreign end user.  And if you’re still reading, thank-you for your attention to detail, it goes a long way in this industry.

Links Broken? Please email us, export@borderview.com if any of the links in this Guide are broken or do not reach the intended site, and we’ll get it taken care of right away!  Thanks!