What makes you think this affects hobby gunsmiths?
Because when it comes to enforcement and the Feds, hobbyists don't exist.
If you accepted a *handshake* for mounting a scope, or if someone brought over a six pack while you honed a trigger, that can easily be interpreted as "compensation for the purposes of this act" and throw you right smack into non-hobby status. It's been done many times. Even the IRS uses that one.
All that said, there's a reason this order isn't being made a really big deal. The NRA stance is, as usual, exactly right. This has the potential of huge government overreach. All it takes is a leftist, anti-gunner with a federal prosecutor on a leash. As is, the order is about ITAR conformity.
ITAR is a big, convoluted, international act that has many twists and turns. But one thing that is fairly well defined is a "defense article". M-16 is such an article, but thus far, the AR-15 is not. So, one might say, "no problemo! I do AR work not M-16/4 work. Can't touch me."
Not so. This is where the overreach begins. Because it could be interpreted, if broadly enough, that the barrel is identical and how would anyone know you're NOT working an M16? Same with dozens of other parts right down to the pins and springs. Therefore, you're in violation of ITAR for "manufacturing defense articles". OBTW, "manufacturing" is only vaguely defined in ITAR as opposed to the BATF who has a nice distinction. For yourself, you "make"... for others, you "manufacture". Easy.
These wouldn't be something they come after you for, but "stack-on" charges for anything from tax liens to wetlands acts. So while it looks like it'd be easy enough to beat without incarceration, as usual, the nightmare ordeal could easily drag out for three or more years and, as usual, with the Feds the process *is* the punishment, win, lose, or draw.
And like all similar orders, it'll just sit there. This won't launch thousands of new cases next week. This will just sit until everyone forgets about it. Then, from time to time, you'll read about some poor citizen being leaned-on and accused of "manufacturing defense articles" and, lucky for you, the jackboots shut him down by force. The Media will then make it sound like he was building RPGs in his livingroom and you'll never know that he was just the latest subject of a Fed Prosecutor that didn't want to relocate, yet.
Is this order a big deal? It will be if you're that poor victim. That's how expanding bureaucracy works. Pick us off one at a time. Otherwise, no, not a big deal.
Wrat