Uh oh...this doesn't sound very good.... Got this from a LJ forum...
This is NOT good for those FFLs without manufacturing licenses. Frankly, I predict mass chaos-- especially for law enforcement with item #14.
Also, if all of this is manufacturing, does this mean that excise tax of 10-11% must be paid every last time? If yes, does anybody realize just how much this is going to cost in terms of jacking up prices?
Furthermore, if a Class III dealer buys a beater transferable machine gun to restore and to resell, does this constitute the manufacturing of a post-86 machine gun?
From a new letter posted on 08/15/08 at http://www.atf.gov/firearms/firearmstech/081508manufacturing-of-firearms.pdf
Here are some selected portions. My comments are in italics.
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.
So, does this mean that if a non-mfr buys broken guns and repairs them - perhaps shortening a crunched shotgun barrel from its original 26" to 22" length - that this is manufacturing? (It IS an alteration not done at the request of a customer...)
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.
While I'm no sporterizing fan, this is ridiculous. What new firearm is being created??!
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.
ADDING SIGHTS IS MANUFACTURING A NEW FIREARM??!
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.
DROPPING IN A NEW TRIGGER IS MANUFACTURING A TOTALLY NEW FIREARM??!
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.
BENDING A BOLT AND INSTALLING A SCOPE IS MANUFACTURING A NEW FIREARM??!
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.
MAKING A TAPCO ABORTION IS MANUFACTURING A NEW GUN??!
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.
Just how many %$#@! markings need to be on a firearm??! Do they have ANY idea how much confusion this is going to cost??! So what is it, a Bob's Guns Model Whatever, a Jim's Heat Treating Model Something, or a Frank's Heat Treating Model Thingy??! How in the hell does this get logged in??! How is law enforcement supposed to identify these multiple-label guns? How many stolen guns will be logged in under the wrong name and never get returned to their rightful owner? And where in the world do all of these names get engraved on the receiver? (It's not like many receivers are huge or anything...) Oh, and does EACH manufacturer have to pay 10-11% excise tax? Does anybody have any idea how much this is going to increase the cost of firearms at retail??!
On to the rare few good things...
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.
Okay.
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.
Okay, good clarification.
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.
Good to know.
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.
Oh, thank God! Cleaning doesn't make a new firearm... Yet.
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