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House Small Business Committee Criticizes BIS Pause in Firearms Export Licenses

The Bureau of Industry and Security’s recent 90-day pause in issuing commercial firearms export licenses will financially harm companies, especially small ones, that rely on foreign sales for income, according to a letter five Republican members of the House Small Business Committee sent to BIS.

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The letter also raises constitutional and procedural concerns. It contends the pause may violate gun rights enshrined in the Second Amendment, questions why BIS announced the temporary prohibition in a frequently asked question document instead of conducting a formal rulemaking process, and it argues that BIS failed to adequately explain why the suspension is needed.

“A FAQ document hardly seems like the proper venue for announcing a restriction that touches and concerns a fundamental right enumerated in the Bill of Rights,” the lawmakers said.

The letter asks BIS to provide more information by Dec. 19, including why it used a FAQ document to make its announcement, why it believes it had the authority to implement the pause, and what it estimates will be the economic impact of the moratorium.

The Dec. 5 letter, addressed to BIS Undersecretary Alan Estevez, was signed by Rep. Roger Williams, R-Texas, the committee’s chairman, as well as Reps. Mark Alford, R-Mo.; Aaron Bean, R-Fla.; Eli Crane, R-Ariz.; and Tracey Mann, R-Kan.

The Commerce Department and BIS didn't respond to a request for comment on Dec. 6.

BIS announced the pause on Oct. 27, saying it would allow Commerce to “more effectively assess and mitigate risk of firearms being diverted to entities or activities that promote regional instability, violate human rights, or fuel criminal activities” (see 2310270068). According to the House Small Business Committee letter, however, “while these reasons could potentially be sufficient if fully explained, BIS has not articulated why these things are of concern, to what extent an issue exists, nor does the BIS tie this action, either directly or indirectly, to any ongoing foreign policy issues.”

The licensing pause, which took many industry officials by surprise (see 2310300043), prompted the House Oversight and Accountability Committee to send a Nov. 28 letter to Commerce Secretary Gina Raimondo requesting more information about the decision (see 2311290041). Rep. Mark Green, R-Tenn., introduced a bill on Nov. 29 that would stop the pause and prevent Commerce from taking similar action in the future without using standard rulemaking procedures.