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  1. #1
    SmithSolar Guest

    Default FFL license if you need a 01 or 07

    FYI on cost
    Dealer’s license (type 01), is $200.00
    Manufacturers license (type 07), $150.00

    Manufacturers ATF Online - Firearms - Frequently Asked Questions - Manufacturers
    1.Must a person who engages in the business of manufacturing and importing firearms have a separate license to cover each type of business?
    2.May a person licensed as a manufacturer of ammunition also manufacture firearms?
    3.May a person licensed as a manufacturer of firearms also manufacture ammunition?
    4.Is a person who reloads ammunition required to be licensed as a manufacturer?
    5.Must a licensed manufacturer pay excise taxes?
    6.May a person engage in gunsmithing under a dealer’s license (type 01), or do gunsmiths need to be licensed as “manufacturers” of firearms?

    --------------------------------------------------------------------------------

    Q: Must a person who engages in the business of manufacturing and importing firearms have a separate license to cover each type of business?
    Yes. A separate license is required to cover each of these types of businesses.

    [27 CFR 478.41]

    Q: May a person licensed as a manufacturer of ammunition also manufacture firearms?
    No. A person licensed as a manufacturer of ammunition may not manufacture firearms unless he or she obtains a license as a firearms manufacturer.

    Q: May a person licensed as a manufacturer of firearms also manufacture ammunition?
    Yes. The person may also manufacture ammunition (not including destructive device ammunition or armor piercing ammunition) without obtaining a separate license as a manufacturer of ammunition.

    Q: Is a person who reloads ammunition required to be licensed as a manufacturer?
    Yes, if the person engages in the business of selling or distributing reloads for the purpose of livelihood and profit. No, if the person reloads only for personal use.

    [18 U.S.C. 922(a) (i) and 923(a), 27 CFR 478.41]

    Q: Must a licensed manufacturer pay excise taxes?
    Yes. Licensed manufacturers incur excise tax on the sale of firearms and ammunition manufactured. See Item 17, “Federal Excise Tax” in the General Information section of this publication.

    Q: May a person engage in gunsmithing under a dealer’s license (type 01), or do gunsmiths need to be licensed as “manufacturers” of firearms?
    Generally, a person engaged in gunsmithing requires only a dealer’s license (type 01). There are circumstances in which a gunsmith might require a manufacturing license. Generally, a person should obtain a license as a manufacturer of firearms if the person is: 1. performing operations which create firearms or alter firearms (in the case of alterations, the work is not being performed at the request of customers, rather the person who is altering the firearms is purchasing them, making the changes, and then reselling them), 2. is performing the operations as a regular course of business or trade, and 3. is performing the operations for the purpose of sale or distribution of the firearms.

    Below are examples of operations performed on firearms and guidance as to whether or not such operations would be considered manufacturing under the Gun Control Act (GCA). These examples do not address the question of whether the operations are considered manufacturing for purposes of determining excise tax. Any questions concerning the payment of excise tax should be directed to the Alcohol and Tobacco Tax and Trade Bureau, U.S. Department of the Treasury.

    1.A company produces a quantity of firearm frames or receivers for sale to customers who will assemble firearms.

    The company is engaged in the business of manufacturing firearms and should be licensed as a manufacturer of firearms.

    2.A company produces frames or receivers for another company that assembles and sells the firearms.

    Both companies are engaged in the business of manufacturing firearms and each should be licensed as a manufacturer of firearms.

    3.A company provides frames to a subcontractor company that performs machining operations on the frames and returns the frames to the original company which assembles and sells the completed firearms.

    Both companies are engaged in the business of manufacturing firearms and should be licensed as manufacturers of firearms.

    4.A company produces barrels for firearms and sells the barrels to another company that assembles and sells complete firearms.

    Because barrels are not firearms, the company that manufactures the barrels is not a manufacturer of firearms. The company that assembles and sells the firearms should be licensed as a manufacturer of firearms.

    5.A company receives firearm frames from individual customers, attaches stocks and barrels and returns the firearms to the customers for the customers' personal use.

    The operations performed on the firearms were not for the purpose of sale or distribution. The company should be licensed as a dealer or gunsmith, not as a manufacturer of firearms.

    6.A company acquires one receiver, assembles one firearm, and sells the firearm.

    The company is not manufacturing firearms as a regular course of trade or business and is not engaged in the business of manufacturing firearms. This company does not need to be licensed as a manufacturer.

    7.An individual acquires frames or receivers and assembles firearms for his personal use, not for sale or distribution.

    The individual is not manufacturing firearms for sale or distribution and is not required to be a licensed manufacturer.

    8.A gunsmith regularly buys military type firearms, Mausers etc., and “sporterizes” them for resale.

    The gunsmith is in the business of manufacturing firearms and should be licensed as a manufacturer.

    9.A gunsmith buys semiautomatic pistols or revolvers and modifies the slides to accept new Style f sights. The sights are not usually sold with these firearms and do not attach to the existing mounting openings.

    The gunsmith offers these firearms for sale. This would be considered the manufacturing of firearms and the gunsmith should be licensed as a manufacturer.

    10.A gunsmith buys government model pistols and installs “drop-in” precision trigger parts or other “drop-in parts” for the purpose of resale.

    This would be considered the manufacturing of firearms, as the gunsmith is purchasing the firearms, modifying the firearms and selling them. The gunsmith should be licensed as a manufacturer.

    11.A gunsmith buys surplus military rifles, bends the bolts to accept a scope, and then drills the receivers for a scope base. The gunsmith offers these firearms for sale.

    This would be considered the manufacturing of firearms and the gunsmith should be licensed as a manufacturer.

    12.A gunsmith buys surplus military rifles or pistols and removes the stocks, adds new stocks or pistol grips, cleans the firearms, then sends the firearms to a separate contractor for bluing. These firearms are then sold to the public.

    This would be considered manufacturing of firearms and the gunsmith should be licensed as a manufacturer.

    13.A company purchases surplus firearms, cleans the firearms then offers them for sale to the public.

    The company does not need to be licensed as a manufacturer.

  2. #2
    deltaenterprizes is offline Hot Rolled
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    Very loose use of the term "manufacture" when in fact you are taking an existing firearm and modifying it. Typical governmenr beaurucrat speak.

  3. #3
    Caspian is offline Hot Rolled
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    was this a giant cut and paste, or did you have a question or comment?

  4. #4
    SmithSolar Guest

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    Quote Originally Posted by Caspian View Post
    was this a giant cut and paste, or did you have a question or comment?
    Jist FYI for any look for a FFL

  5. #5
    wildhorsemfg is offline Aluminum
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    Quote Originally Posted by SmithSolar View Post
    FYI on cost
    Dealer’s license (type 01), is $200.00
    Manufacturers license (type 07), $150.00
    is this per month or per year ?

  6. #6
    SmithSolar Guest

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    First time for 3 Years

    Dave

  7. #7
    Bladesmith's Avatar
    Bladesmith is offline Plastic
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    Smile Ffl

    Quote Originally Posted by SmithSolar View Post
    First time for 3 Years

    Dave
    For the 07 FFL you will also have a $2,000.00 per year ITAR tax and registration with the state dept. this tax is required for all 07 FFL's (arms manufacturer it does not matter if you export or not). The 01 FFL does not require this tax that is why I have an 01 FFL. Some 07 FFL's just don't pay this tax only to have the tax man show up requesting $10,000.00 5 years of taxes. All 07 FFL's are subject to this tax and sooner or later the tax man will come to see you. The ATFE will soon be checking on the ITAR tax status for 07 FFL's. Go to subguns.com and do a search there is some good info here from the legal community on this subject. The ATFE will allow a 01 FFL for a gunsmith in almost all cases.

  8. #8
    freakshow10mm is offline Aluminum
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    Quote Originally Posted by Bladesmith View Post
    For the 07 FFL you will also have a $2,000.00 per year ITAR tax and registration with the state dept.
    ITAR is $2,250. It is not a tax, it is a registration fee.

    All 07 FFL's are subject to this tax and sooner or later the tax man will come to see you.
    FAIL! My company is an 07 FFL and is NOT subject to ITAR as there was a commodity jurisdiction ruling. Also, ITAR is not a tax.

    The ATFE will soon be checking on the ITAR tax status for 07 FFL's. Go to subguns.com and do a search there is some good info here from the legal community on this subject.
    Only thing they can do is tattle-tale on you to the US State Dept. The ATF cannot enforce any provision of ITAR because they can only enforce or act upon the NFA and GCA as amended. In light of that, the ATF could give a rat's ass what the US State Dept does.


    The ATFE will allow a 01 FFL for a gunsmith in almost all cases.
    Well seeing as how the 01 FFL is for gunsmithing, this would make sense.

    I'm going to sit back and watch the "experts" opine about this topic. I can't wait to see the responses by people who think they know what they are talking about.

  9. #9
    SmithSolar Guest

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    My self I am filing for the 01 in CA
    I know they may be a pit fall with the 07

    Dave

  10. #10
    Bladesmith's Avatar
    Bladesmith is offline Plastic
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    As a 07 manufacture the Itar is due each year no mater if you export or not, no mater if you have a FFL or not, Leupold also has to pay this tax or fee. A manufacture will also fall under the excise tax on sporting goods and be required to comply with that as well. Club-Fed has a number of visitors that did not pay their fees/taxes you can join up as well. I do not want a visit from the state dept. when the ATF sends them by.

  11. #11
    freakshow10mm is offline Aluminum
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    Quote Originally Posted by Bladesmith View Post
    As a 07 manufacture the Itar is due each year no mater if you export or not, no mater if you have a FFL or not, Leupold also has to pay this tax or fee.
    Not always. If you submit a commodities jurisdiction and it is determined you are not manufacturing defensive articles, then you don't have to register for ITAR and pay the fee.

    A manufacture will also fall under the excise tax on sporting goods and be required to comply with that as well.
    Not necessarily. If the manufacturer manufactures frames or receivers only, there is no FET. If they manufacture less than 50 firearms per year, there is no FET.

    Club-Fed has a number of visitors that did not pay their fees/taxes you can join up as well. I do not want a visit from the state dept. when the ATF sends them by.
    Stop with the "sky is falling" crap. Your posts contain a lot of misinformation that is only confusing the situation.

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