Type 07 FFL

[Rugerman77]

Anyone have an 07 that would mind to give me some input on it? Looking to find out about hidden stuff or stuff regular people wouldn't know such as headaches that go along with it. Insurance is one question. Itar is another. Does anyone produce mass ammo? Manufacturer pricing? Precision ammo?
Thanks in advance

 

[tobnpr]

There are no insurance requirements at the Federal level. Consult with your CPA/advisor on business structure to limit personal liability.
ITAR/USML changes:

https://www.bis.doc.gov/index.php/component/docman/?task=doc_download&gid=2614

The 07 FFL has nothing to do with ammunition manufacturing. Commercial ammunition is manufactured under an 06 license.

 

[shortgrass]

Insurance costs are pretty much dictated by the yearly sales amount in $, and what exactly you are doing. If you are actually making receivers, the cost will increase. If you are manufacturing ammo, the cost will increase. Pres. Trump moved firearms exports to the Dept. of Commerce. The little guy is most likely not effected by ITAR and DDTC registration. I don't 'manufacture' ammo, I have no desire to. It would take automation for it to be profitable, there is an 11% excise tax to be paid on each and every round. In my experience, I have found no "manufacturer pricing", "dealer" pricing when you can get it. Best pricing is in buying volume. What the 07 will do for the gunsmith is allow him to build firearms on speculation sales. You will have all the rights and privileges a company holding a 01 Dealers license, and a 06 ammo manufacturers license has. https://www.atf.gov/firearms/qa/may...facturer-firearms-also-manufacture-ammunition

 

[Rugerman77]

07 allows ammunition as well, 06 is ammunition only and gives no firearms rights at all as I understand it

 

[shortgrass]

07 allows ammunition as well, 06 is ammunition only and gives no firearms rights at all as I understand it

Not much to understand, just click on the link at the bottom of my post and it'll take ya' to the ATF web site

 

[Rugerman77]

I was responding to the first comment. I appreciate your post.

 

[shortgrass]

There's a bit of extra paperwork at the end of the year, the report of "how many" you made. ATF wants to inspect Manufacturers every year, but they're always so busy that doesn't happen unless you have been a 'problem'. The rest of the paperwork isn't complicated, just do it when any action you make requires paperwork, don't put it off until 'later'. I am told that incomplete records are the most often encountered 'violation'. The "Firearms Owners Protection Act of 1986" allows a 49 firearms manufactured per year without the 11% excise tax. 50 manufactured 'triggers' excise tax on all. https://www.ecfr.gov/current/title-27/chapter-I/subchapter-C/part-53

 

[Rugerman77]

Thanks for that information. Does anyone here manufacture ammo? Small scale of course