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Thread: C&R License or 07 Manufacturing License??? Opinions Please

  1. #1
    Patriot paid4c4's Avatar
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    C&R License or 07 Manufacturing License??? Opinions Please

    Guys, this might be interesting thread for a lot of us. I do what Hump does in the fact I have a section of my book that I list questionable items. Any item I'm not sure of goes in that section of the book. I'd rather have items listed incorrectly or that I don't have to list rather than have items which aren't listed and should have been. Now let me throw a little gasoline on the fire. If you acquire a receiver with or without an FFL license and build that receiver into a functioning M1 Garand rifle for your own use you're in good shape. However should you decide to sell the rifle which you built from a receiver and parts you may find you're in violation of BATF and may need an 07 license. There are a lot of FFL "experts" who are recommending that instead of acquiring an 03 C&R license you require a 07 manufacturing license. I'm in the process of investigating the differences now. I would appreciate your comments and thoughts.
    Bill
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  2. #2
    Patriot howie's Avatar
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    Hmm. My thoughts? Ban the BATFE.
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    Founding Member Prince Humperdink's Avatar
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    Quote Originally Posted by howie View Post
    Hmm. My thoughts? Ban the BATFE.
    +1, They are an illegal entity anyway!
    "The advantage of being armed, which the Americans possess over the people of almost every other nation ... forms a barrier against the enterprises of ambition, more insurmountable than any which a simple government of any form can admit of." -- James Madison (1788)

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    Moderator Orlando's Avatar
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    If you were to buy AR15 kits , assemble into functioing rifles with the intent for resale then yes it might apply.
    Assembling a rifle from parts for your own use then reselling later , no
    Same would apply to Garands, etc, etc
    Just my opinion
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  5. #5
    Moderator Orlando's Avatar
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    I think its pretty clear:

    per provisions of the Gun Control Act (GCA) of 1968, 18 U.S.C. Chapter 44, an unlicensed individual may make a “firearm” as defined in the GCA for his own personal use, but not for sale or distribution

    (doesnt say it can never be sold but cant be done as a business)


    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.
    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.
    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.
    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.
    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.
    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.
    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.
    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.
    A gunsmith regularly buys military type firearms, Mausers etc., and sporterize them for resale.
    The gunsmith is in the business of manufacturing firearms and should be licensed as a manufacturer.
    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.
    A gunsmith buys government model pistols and installs 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.
    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.
    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.
    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
    Last edited by Orlando; 12-27-2011 at 09:38 AM.
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  6. #6
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    What Howie said. And Orlando's post makes it pretty clear that you aren't manufacturing a gun by assembling one gun from spare parts.

  7. #7
    Founding Member jak's Avatar
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    Quote Originally Posted by Orlando View Post


    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.
    I buy a garand from CMP, take of the birch replacement stock and replace it with a correctly cartouched stock. I now send the rifle off to Shuff's to get it reparked. I later sell that rifle to fund another project. This sounds like something some of us do. So are we considered manufacturers ?
    Last edited by jak; 12-26-2011 at 06:57 PM.
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  8. #8
    Moderator Punch The Clown's Avatar
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    We had this discussion a few months ago. I was amazed at the volume of AK's being home built for personal use and then sold. One guy sold 3000. Seems that you can sell them if you didn't build them with that intent. 3000 does seem to be stretching it though.
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    Administrator timshufflin's Avatar
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    I love this discussion. BATFE = Jack Booted Thugs

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