Type 1 ffl question

[ABA]

So im getting my documents ready to file a type 1 licence and have a question regarding what i can do and cannot. So I know as a type 1 licence holder i can assemble upper receivers but not the lower. But can i buy a complete lower from a whole seller and add a upper for re sell? Thanks

 

[Glock 21]

You can not assemble a upper and a lower stripped or other wise for resale as the ATF classifies that as manufacturing. You can however sale your customer all the pieces 4473 it out then bring it back into your books for gunsmithing then assemble. Kinda dumb but hey its the government

When your IOI comes out for your initial inspection they will go over all this in detail with you. Best thing to do is write down any questions you have as your going along and then ask your IOI when they come out.

 

[NewLeaf]

Last I heard you can not build an AR to resale. BUT you can sell an AR that you built and now are tired/bored with it and want to replace it with something else. Happens Everyday GA Law

 

[gh1950]

Last I heard you can not build an AR to resale. BUT you can sell an AR that you built and now are tired/bored with it and want to replace it with something else. Happens Everyday GA Law

That's true, but there is a limit to how many you can get tired or or bored with before you are "manufacturing." The rules on manufacturing are strict, and for the mark-up on a cobbled together AR-15, certainly not worth finding out what those limits are.

 

[NewLeaf]

That's true, but there is a limit to how many you can get tired or or bored with before you are "manufacturing." The rules on manufacturing are strict, and for the mark-up on a cobbled together AR-15, certainly not worth finding out what those limits are.

Cobbled Together lol. I haven't sold a thang on here, have you? And there aint none'a my stuff cobbled together. FunnyStuffBoss

 

[GAgunLAWbooklet]

This isn't legal advice, but I think your answer is in this 2010 memo from ATF.

It says that assembling guns from parts, or putting custom aftermarket parts or finishes on working guns, IS a "manufacturing" activity. But if you do it for one customer at a time, returning the same gun to him as he brought you for modification, it's not the kind of "manufacturing" the law covers, since your gunsmith FFL already covers that type of work, and you're not distributing or transferring guns to new people-- just to the owners who provided them to you.

But if you acquire your own firearms from wholesalers or other commercial channels (AR lower receivers, in your case) and finish them or customize them (even just building normal working AR rifles and carbines out of them), and then sell them to other's that's when the OTHER SHOE DROPS. Now you've got both manufacturing activity, and commercial distribution that puts guns in the hands of new owners. That's beyond what a type 1 FFL covers as a dealer or gunsmith. That's manufacturing.

https://www.atf.gov/file/82791/download

 

[MuleShoe]

MANUFACTURING LICENSE ABOUT SAME COST AS CLASS ONE BUT YOU HAVE TO KEEP RECORD WITH NUMBER OF GUNS MANUFACTURED AND AFTER 49 YOU HAVE TO PAY EXCISE TAX. YOU CAN STILL DO EVERYTHING UNDER 1 WITH MANUFACTURING LICENSE! BUY SELL WHOLESALE, REPAIRS , ETC.