H.R. 3998: Firearms Congressional Notification Modernization Act

This bill, titled the Firearms Congressional Notification Modernization Act, seeks to amend the existing Arms Export Control Act. The primary focus of the bill is to change the threshold for notification requirements regarding the exportation of firearms.

Key Changes Proposed by the Bill

• Increased Notification Threshold: Currently, the Arms Export Control Act requires notifications to Congress when exporting firearms if the value of the export exceeds $1,000,000. The proposed amendment would raise this threshold to $4,000,000. This means that only exports of firearms valued at $4,000,000 or above would trigger a notification requirement to Congress.
• Control Category Specification: The bill specifically addresses firearms that are classified as controlled under category I of the United States Munitions List, indicating that the raised threshold applies to these types of firearms exports as well.

Impact of the Bill

By increasing the threshold for notification, this bill could reduce the number of export transactions involving firearms that require congressional oversight. This may lead to a more streamlined export process for firearms manufacturers and exporters, allowing them to operate with less regulatory burden for smaller scale exports. However, it could also affect the level of congressional awareness and oversight over arms exports below this new higher threshold.

Relevant Companies

• RGR (Sturm, Ruger & Company, Inc.) - As a major firearms manufacturer, this company may benefit from reduced regulatory oversight due to the increased threshold for notifications.
• OSS (OSS Suppressors - a supplier of firearm suppressors) - This company could also see implications from changes in export regulations affecting firearm components.
• DTOC (DTOC International Corp.) - Operating in the defense and firearms sectors, they might experience changes in export-related activities.