ltwguns.com

Since retiring from a real job, I have been hard at "schooling" on the in's and out's of the 1911 (way beyond what my GySgt told me in the USMC, LOL). Several of ya'll have been gracious enough to spend time on the phone with me discussing numerous issues.

I wanted to pass along what I just went through and learned about the FFL application process that applies to 'smithing. Most probably already know, but, if one person gleams something from this post and avoids problems, then that is good and I apologize to others for wasting server space.

From the ATF legal counsel...

"...if you are going to be changing the caliber of a customer's pistol, ie., 9mm to 45ACP, you are required to possess a Type 07 FFL (manufacturer).

"...if you are assembling a complete pistol from inventoried parts (regardless of source), including serialized and non-serialized parts, you need a Type 07 FFL."

'...if your activities are ONLY working on a customer's supplied pistol, using non-serialized parts (regardless of source), and/or a barrel change that does not involve a change of caliber, you only need a Type 01 FFL (dealer/gunsmith activities)"

'...if you are going to be doing a combination of the above activities, a Type 07 FFL covers all, reference ss478.41(b)"

My difficulty arose when the director of my field office said I needed both Type 01 and 07. However, the ATF IO agents insisted only a Type 07 was required since it was more inclusive under ss478.41(b).

Fortunately, everyone got on the same page and I applied for and received my Type 07. I have a letter in my file with ATF and here at the shop for future reference.

If you go the Type 07 route, you will need to fill out forms for the excise tax that needs to be collected. There is no grace number of pistols before you need to collect. Build 1 pistol from inventory, you need to collect from the buyer.

Why do I think this important information to put out? Several days ago, Attorney General Gonzales called for legislation allowing for civil penalties of FFL holders in violation of the regulations. In the past, an investigating agent would perform an audit of your business, help you correct your deficiencies and be on their way. With the rise of violent crime, school shootings and a different political breeze in Congress change is in the air.

Civil penalties, are the catch all. These can be levied by the licensing agency without due process. Prior to retiring as an American Airlines captain, I personally witnessed, on more than 1 occasion, the levy of a $10,000 fine by Customs officials against a crew member on my flights for not declaring fruit in their bag; in the last case I witnessed, a single undeclared banana that cost $10,000! The civil penalty is levied and must be paid before you can proceed. In a FFL holder case, you may be fined and lose your license.

The agent that visited my shop was very helpful. She made sure I properly licensed and documented for the work I would be accomplishing.

I am not an alarmist and I am sure those working in the field that respond to threads on this board are above reproach, but, with changing ATF regulations and Washington politics as they are, I for one want to be transparent with my business and hopefully, above the fray.

Good luck with your venture, Bill, and thanks for the enlightenment.

_________________
Redeemed

UPDATE:

50 firearms exemption for "small manufacturer".

I FINALLY got word from the Tax and Trade Bureau that Type 7 manufacturers indeed get the 50 firearm exemption per 26 U.S.C. Section 4216(c). But, only on firearms manufactured after 1 October 2005. Further, you darn near need to be a Rubic's Cube genius to follow their matrix to determine who is liable for the FAET if you exceed your calender year quota of 50.

hey guys, im in the process of trying to get my home ffl licence for gunsmithing out of my house, after reading a coulple of things reqarding this im a little discuraged as on what to do. It almost seems as if it is going to be a waste of time by what some people say because getting a home ffl is so difficult. I will have recomendation letters from a couple of other smiths and one who lives right down the street(home ffl holder for probably 15yrs), i live in hendersonville tn which is a pretty populated city outside of nashville, and ive read that to get a home ffl you really need to be in a rural part of town, is that true? Anyway i fiqured someone out there could tell me what my chances are untill i have to rent a commercial space just to get a ffl!!