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Posted: 2/9/2014 10:22:31 AM EDT
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Researching 07 FFL stuff for a friend. There are two things (so far) I'm curious about:
- For the purpose of FAET, when is a gun considered to be 'manufactured?' I.e. when the receiver is made, or when the parts are assembled, etc. - My friend owns a machine shop. How much work can he do before receiving his 07 FFL? I.e. make parts but receivers, or make receivers but not assemble them, or assemble them but not sell them, etc. I planned to call the local ATF field office and ask them, but it's Sunday so why not ask ARF. |
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Quoted:
Researching 07 FFL stuff for a friend. There are two things (so far) I'm curious about: - For the purpose of FAET, when is a gun considered to be 'manufactured?' I.e. when the receiver is made, or when the parts are assembled, etc. - My friend owns a machine shop. How much work can he do before receiving his 07 FFL? I.e. make parts but receivers, or make receivers but not assemble them, or assemble them but not sell them, etc. I planned to call the local ATF field office and ask them, but it's Sunday so why not ask ARF. a) FAET is due when a compelte gun is sold. Not manufactured, but double check on this. Ie: build 1000 guns for inventory and sell none, no tax is due. Also, a bare receiver is not required to be taxed under FAET. Only complete guns (and their accesories) b) Cant commercially make receivers w/o 07 FFL *and* ITAR registration. |
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a) FAET is due when a compelte gun is sold. Not manufactured, but double check on this. Ie: build 1000 guns for inventory and sell none, no tax is due. Also, a bare receiver is not required to be taxed under FAET. Only complete guns (and their accesories) b) Cant commercially make receivers w/o 07 FFL *and* ITAR registration. Quoted:
Quoted:
Researching 07 FFL stuff for a friend. There are two things (so far) I'm curious about: - For the purpose of FAET, when is a gun considered to be 'manufactured?' I.e. when the receiver is made, or when the parts are assembled, etc. - My friend owns a machine shop. How much work can he do before receiving his 07 FFL? I.e. make parts but receivers, or make receivers but not assemble them, or assemble them but not sell them, etc. I planned to call the local ATF field office and ask them, but it's Sunday so why not ask ARF. a) FAET is due when a compelte gun is sold. Not manufactured, but double check on this. Ie: build 1000 guns for inventory and sell none, no tax is due. Also, a bare receiver is not required to be taxed under FAET. Only complete guns (and their accesories) b) Cant commercially make receivers w/o 07 FFL *and* ITAR registration. Thanks for the response. a) I think we'll be pretty close on being FAET exempt (< 50 a year). I realize FAET is due when they're sold. However, the <50 exemption is based on when they are manufactured. If we can stay within the exemption, obviously that's great news. Link b) I have spent the last few hours doing research on ITAR. My friend wants to make 1-2 different products that I don't think should be hard to get a CJ (commodity jurisdiction) letter for. So forget ITAR for a second, but we can make everything but the receiver just as a machine shop, right? I can't see any reason why not, but wanted to ask to be sure. ETA: Another point about (b). Under the GCA I can legally make a gun for my personal use if I don't intend to sell it. Before we would make a production run, we'd obviously have to make prototypes. And we also want to make one each for ourselves. Can we prototype and legally keep these as personal weapons, or would they be considered commercial because they are supporting R&D activity? |
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Thanks for the response. a) I think we'll be pretty close on being FAET exempt (< 50 a year). I realize FAET is due when they're sold. However, the <50 exemption is based on when they are manufactured. If we can stay within the exemption, obviously that's great news. Link b) I have spent the last few hours doing research on ITAR. My friend wants to make 1-2 different products that I don't think should be hard to get a CJ (commodity jurisdiction) letter for. So forget ITAR for a second, but we can make everything but the receiver just as a machine shop, right? I can't see any reason why not, but wanted to ask to be sure. ETA: Another point about (b). Under the GCA I can legally make a gun for my personal use if I don't intend to sell it. Before we would make a production run, we'd obviously have to make prototypes. And we also want to make one each for ourselves. Can we prototype and legally keep these as personal weapons, or would they be considered commercial because they are supporting R&D activity? Quoted:
Quoted:
Quoted:
Researching 07 FFL stuff for a friend. There are two things (so far) I'm curious about: - For the purpose of FAET, when is a gun considered to be 'manufactured?' I.e. when the receiver is made, or when the parts are assembled, etc. - My friend owns a machine shop. How much work can he do before receiving his 07 FFL? I.e. make parts but receivers, or make receivers but not assemble them, or assemble them but not sell them, etc. I planned to call the local ATF field office and ask them, but it's Sunday so why not ask ARF. a) FAET is due when a compelte gun is sold. Not manufactured, but double check on this. Ie: build 1000 guns for inventory and sell none, no tax is due. Also, a bare receiver is not required to be taxed under FAET. Only complete guns (and their accesories) b) Cant commercially make receivers w/o 07 FFL *and* ITAR registration. Thanks for the response. a) I think we'll be pretty close on being FAET exempt (< 50 a year). I realize FAET is due when they're sold. However, the <50 exemption is based on when they are manufactured. If we can stay within the exemption, obviously that's great news. Link b) I have spent the last few hours doing research on ITAR. My friend wants to make 1-2 different products that I don't think should be hard to get a CJ (commodity jurisdiction) letter for. So forget ITAR for a second, but we can make everything but the receiver just as a machine shop, right? I can't see any reason why not, but wanted to ask to be sure. ETA: Another point about (b). Under the GCA I can legally make a gun for my personal use if I don't intend to sell it. Before we would make a production run, we'd obviously have to make prototypes. And we also want to make one each for ourselves. Can we prototype and legally keep these as personal weapons, or would they be considered commercial because they are supporting R&D activity? I haven't seen that many successful CJ approvals. Doesn't mean they are not out there, just keep that in mind. Regarding your "personal use" example - short answer is no. Your business is separate from any personal work, and your example is a mess of overlap. Don't go there. If you want a gun you have manufactured, transfer it to yourself. Your model is not a sole proprietorship, so "you" are not the "business". Even as a SP 07, I wouldn't mess with personal-made/owned guns. |
| I personally didnt register for ITAR until I actually started doing marking variances. DDTC told me I did not have to register until I actually manufactured something. I have 2 07 FFLs with a third one on its way to FFLC. Trust me just register with DDTC it takes 7 weeks and your IOI will keep annoying you to do it |
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I personally didnt register for ITAR until I actually started doing marking variances. DDTC told me I did not have to register until I actually manufactured something. I have 2 07 FFLs with a third one on its way to FFLC. Trust me just register with DDTC it takes 7 weeks and your IOI will keep annoying you to do it I've heard of people collecting stamps, but not FFLs... 
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Quoted:
I personally didnt register for ITAR until I actually started doing marking variances. DDTC told me I did not have to register until I actually manufactured something. I have 2 07 FFLs with a third one on its way to FFLC. Trust me just register with DDTC it takes 7 weeks and your IOI will keep annoying you to do it A friend got his 07 and was told by state via a letter that no ITAR was due until he had enough inventory to sell. |
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A friend got his 07 and was told by state via a letter that no ITAR was due until he had enough inventory to sell. Quoted:
Quoted:
I personally didnt register for ITAR until I actually started doing marking variances. DDTC told me I did not have to register until I actually manufactured something. I have 2 07 FFLs with a third one on its way to FFLC. Trust me just register with DDTC it takes 7 weeks and your IOI will keep annoying you to do it A friend got his 07 and was told by state via a letter that no ITAR was due until he had enough inventory to sell. Post that letter. What does "enough inventory to sell" mean to you?....................it means ONE. 
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