Gunsmithing Gunsmithing FFL question?

[slayer_21420]

First off, I apologize if this has been asked before but it seems like a pretty grey area to me.

For the licensed gunsmiths on the forum that perform re-barreling and modifications to customer owned firearms, do you have an 01 or 07 FFL? It seems that if you alter a firearm in any way you are "manufacturing" according to the ATF. Does this only apply to a shop owned receiver that you barrel, then sell to a customer as a complete firearm? Or are you manufacturing if you barrel and restock a customer supplied action?

Thanks

Steve

 

[RWSGunsmithing]

You can rebarrel and fix/repair with a 01 ffl. Did it for years.

But when I wanted to build and sell the rifles I needed to get a 07

 

[PCR]

Steve,

If the shop buys the receiver and builds a rifle, Shop has to claim FAET and is the manufacturer of the firearm and has to:

In his 07 manufacturing book:
Log the "receiver only" In from ffl it came from and out to his shop ffl.
Then on the next line of 07 book sign back in to his shop ffl and out (after rifle is built and ready for customer) to another ffl for transfer (to the customer that you built and sold the rifle to) or use form 4473 for transfer.

Different story if the customer buyssupplies the receiver. Here's an example from IRS Ruling 58-586 and Title 27, Code of federal Regulations, Section 53.112(b):

"X" sells an action and barrel to customer.

Customer supplies this action for build.

"A" adds parts to barrel and action and assembles a complete firearm for a fee.

Customer receives firearm for personal use.

Customer is manufacturer.

"A" is not liable for FAET (Firearms and Ammunition Excise Tax).



Don't overlook the importance of correctly logging all firearms. I have 3 books in my shop:

1) "Transfers only" book - (For transfers only) for 4473 transfer log in / log out info.
2) Manufacturing book - For all manufactured firearms made and sold from shop ffl. If I transfer this rifle using a 4473, I enter that info into manufacturing book and not the "transfer only" book. So some transfers are in the transfer only Book and some are in the manufacturing book. I never put the same rifle in more than 1 book.
3) Gunsmithing book - for all other gunsmithing work including rebarreling customers rifle with a full custom build.

Hope this all makes sense.

 

[slayer_21420]

Awesome, makes perfect sence and is what I was hoping to hear. Thankk you both.

I'm looking to start out small and only work with customer supplied actions/receivers. So the type 01 should work out.

I really didn't want to have to register with the dept. of state and fork out the $$ for ITAR considering i'll be starting out small as a side income. Seems like some type 07's do register and some don't, how strict are they on this?

 

[skeetlee]

Do u need an ffl to cut a supplied barrel even if you do not have any actions on hand? Most new custom actions are closer enough that one could produce a barrel from a blueprint.

 

[7mmRM]

Skeetlee,

No, you would not need an FFL for that.