15 August 2008 - ATF rules on manufacturing firearms, rules clarification

[handyrandyrc]

http://www.atf.gov/firearms/firearmstech/081508manufacturing-of-firearms.pdf

Looks like home-builders are still okay, as long as they are for personal use only. It's a good clarification on what activities are required to have a manufacturing license.

[sundog]

yeah, well, number 8 thru 12 is a bunch of crap. Accessorizing is NOT manufacture. Next thing we know if you do it your self, you'll be a manufacturer. But maybe that's what there after. Takes a few sheets of paper at a time and the ream looks okay, but one day, there's no paper left. Looks to me like they are trying to put the smithies out of bidness.

No 6, one in what period of time?

No 1, the production of a frame or receiver is manufacture. No problem. Once it produce, there is no more manufacture. The frame or receiver is it. This so called rule clarification is really bad.

[sundog]

I looked at it again.

No 7. Individual assembles for personal use - okay.

If an individual can do it than why can't a company? Sale and distribution is NOT manufacture. I wonder who the goons are that think up this crap. And they get paid with our hard earned dollars to do treasonous things to us.

All they are doing is trying to come up with rules to justify the manner that they illegally attack CITIZENS. It's a bunch of crap.

If anyone in the NRA had any kahoonas, they'd be jumped all over this *** 'rule decision'.

[sundog]

We had to have a federal law to protect fair trade of the firearms companies from the ilk like bloomberg, and now we have a part of the very same government trying to kill the trade at a different level. Like I said, this is a bunch of crap.

[Boerrancher]

You are right on track as usual SD. I couldn't have said it better.



Best wishes from the Boer Ranch,

Joe

[Bret4207]

Numbers 8-12 are crap!!!! The key words seem to be "for resale".


Manufacturing of 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.

Generally, a person should obtain a license as a manufacturer of firearms if the
person: 1) is performing operations that 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.

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

-2-
Manufacturing of Firearms
ATF, Firearms Technology Branch

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 or her 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 and modifies the slides to accept a
new style of 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.

-3-
Manufacturing of Firearms
ATF, Firearms Technology Branch

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.

14. A company produces firearms or firearm receivers and sends the
firearm/receivers out for colorizing (bluing, camouflaging, phosphating, or
plating) and/or heat treating. Do the companies performing the colorization
and/or heat treating need to be licensed as manufacturers, and are the
companies required to place their markings on the firearm?

ATF has determined that both colorization and heat treating of firearms are
manufacturing processes. The companies performing the processes are required
to be licensed as manufacturers. If the companies providing colorization and/or
heat treating have not received variances to adopt the original manufacturer’s
markings, they would be required to place their own markings on any firearm on
which they perform the manufacturing process of colorization and/or heat
treating.

[45nut]

Remember these regs are not the result of a legislative process, they were made up by a bureaucrat(s) tucked away safely in the basement of ATF that very likely has a anti-gun agenda.

[45nut]

Unintended Consequences,,, time to feed the hogs..again.

[Bret4207]

Remember these regs are not the result of a legislative process, they were made up by a bureaucrat(s) tucked away safely in the basement of ATF that very likely has a anti-gun agenda.

An excellent point Ken. That means the ruling can be changed easily when enough political pressure comes to bear. If only I had more time to organize things and a few million bucks to grease the skids!

[sundog]

This is exactly how OUR federal goobermint makes criminals out of otherwise law abiding TAX PAYING CITIZENS. Just like the tax code and IRS 'rools'.

[mike in co]

actually there maybe some good in all this. there has been some problems with gunsmiths that build firearms from customer actions. this seems to clairify that that is a gunsmith task, not a gun manufacturer....

all else...sucks...

[Dave Berryhill]

I'm no fan of the ATF but this is not as big of a deal as you think. They've finally put into writing what they've viewed as their "interpretation" of the law for years.

One thing to keep in mind is that if a gunsmith or manufacturer does the work on a firearm that he resells then manufacturing has taken place. If he does the work on a customer's gun then manufacturing isn't an issue.

It's the selling or reselling of the firearm that is the key because excise tax that a manufacturer pays is what the issue is here.

BTW, getting a manufacturer's license isn't a big deal - it isn't any harder than getting a dealer's license, you just check a different box on your application for an FFL. The main difference is that you have to file an annual form listing the number of firearms that you've "manufactured" and pay the excise tax on them. There is an exemption from excise tax on 50 firearms per year but you still have to file the form.

The last time my FFL came up for renewal I applied for a manufacturer's license instead. I've never come close to buying 50 guns, customizing them and reselling them in a year so I've never had to pay excise tax. I've built a few guns that I've sold but do most of my work on customers pistols. I just file my form each year and that's that.