SOT Building A Live Gun On A Registered MG Receiver
Can a Class 3 SOT buy a registered post-86 sample receiver and build it into a live machinegun?
Example: The SOT gets a demo letter from the local PD for a Thompson. Could the SOT then buy a post-86 registered receiver, then finish assembling the Thompson at the SOT's shop?
I was discussing this with another SOT, and we couldn't agree. He said he thought the answer was yes, I thought it was no.
Is the Class 3 SOT a type 01 or type 07 FFL?
C3 is dealer of NFA weapons only , they would need to be a manufacturer to do what you suggest.
Originally Posted By substandard:
Can a Class 3 SOT buy a registered post-86 sample receiver and build it into a live machinegun?
Example: The SOT gets a demo letter from the local PD for a Thompson. Could the SOT then buy a post-86 registered receiver, then finish assembling the Thompson at the SOT's shop?
I was discussing this with another SOT, and we couldn't agree. He said he thought the answer was yes, I thought it was no.
The key word is "registered." If an 01/03 FFL/SOT dealer has a demo letter, yes, they can purchase a
REGISTERED post-86 receiver and assemble a complete MG, because the receiver is the registered item –– once a receiver has been manufactured and registered, anyone who may lawfully possess it may also lawfully configure or reconfigure it. It is no different than an 01/03 dealer getting a demo letter and buying any other registered post-sample.
Assembly upon a registered receiver does not equal manufacture.
Originally Posted By tony_k:
Originally Posted By substandard:
Can a Class 3 SOT buy a registered post-86 sample receiver and build it into a live machinegun?
Example: The SOT gets a demo letter from the local PD for a Thompson. Could the SOT then buy a post-86 registered receiver, then finish assembling the Thompson at the SOT's shop?
I was discussing this with another SOT, and we couldn't agree. He said he thought the answer was yes, I thought it was no.
The key word is "registered." If an 01/03 FFL/SOT dealer has a demo letter, yes, they can purchase a
REGISTERED post-86 receiver and assemble a complete MG, because the receiver is the registered item –– once a receiver has been manufactured and registered, anyone who may lawfully possess it may also lawfully configure or reconfigure it. It is no different than an 01/03 dealer getting a demo letter and buying any other registered post-sample.
Assembly upon a registered receiver does not equal manufacture.
Thanks Tony
Originally Posted By tony_k:
Assembly upon a registered receiver does not equal manufacture.
But an 01 FFL can't buy stripped title I AR15 receivers and assemble them into complete firearms, because the ATF considers that to be manufacture. What makes this different if it's a machine gun?
Actually an 01 can do that as long as they do less than 50 per year, and it's not their primary business.
Originally Posted By CleverNickname:
Originally Posted By tony_k:
Assembly upon a registered receiver does not equal manufacture.
But an 01 FFL can't buy stripped title I AR15 receivers and assemble them into complete firearms, because the ATF considers that to be manufacture. What makes this different if it's a machine gun?
Because it is
registered, it is already
manufactured..he is reconfiguring the firearm.
Originally Posted By ODS9091:
Originally Posted By CleverNickname:
Originally Posted By tony_k:
Assembly upon a registered receiver does not equal manufacture.
But an 01 FFL can't buy stripped title I AR15 receivers and assemble them into complete firearms, because the ATF considers that to be manufacture. What makes this different if it's a machine gun?
Because it is
registered, it is already
manufactured..he is reconfiguring the firearm.
Correct. That is the key. The MG is already made. Same thing with a RR M16. You can change it as you see fit. You don't need to be an SOT or FFL of any type to change how your RR looks once its been transferred to you. When the ATF approved the transfer of the postie, you can change it as you need.
Originally Posted By Circuits:
Actually an 01 can do that as long as they do less than 50 per year, and it's not their primary business.
An 01 cannot build 50 a year. This would be manufacturing as a course of business.
The 50 gun exemption is for small manufacturers, if the make 50 or less firearms they are not liable for FET. If they make 51 firearms they have to pay FET on all 51
Originally Posted By VarmitSniper:
An 01 cannot build 50 a year. This would be manufacturing as a course of business.
The 50 gun exemption is for small manufacturers, if the make 50 or less firearms they are not liable for FET. If they make 51 firearms they have to pay FET on all 51
I disagree. The exemption is so that FFLs who do NOT primarily manufacture can do a small amount of business that is regarded as manufacturing, without incurring a FET liability or requiring they hold a Type 7 FFL. Examples would include refinishing and rebarreling, for two, which are considered manufacturing activities but commonly performed by Type 1 FFL gunsmiths.
Yes, anyone who does manufacturing activities as a regular course of business is supposed to have an 07.
Originally Posted By substandard:
Can a Class 3 SOT buy a registered post-86 sample receiver and build it into a live machinegun?
Example: The SOT gets a demo letter from the local PD for a Thompson. Could the SOT then buy a post-86 registered receiver, then finish assembling the Thompson at the SOT's shop?
I was discussing this with another SOT, and we couldn't agree. He said he thought the answer was yes, I thought it was no.
This is really no different than buying a Title I receiver and building it into a AR-15.
A Non-MFG could build 1 no problem, just like it says in the MFG/FAQ, but more than that gets closer and closer to requiring a MFG license.
Originally Posted By ODS9091:
Originally Posted By CleverNickname:
Originally Posted By tony_k:
Assembly upon a registered receiver does not equal manufacture.
But an 01 FFL can't buy stripped title I AR15 receivers and assemble them into complete firearms, because the ATF considers that to be manufacture. What makes this different if it's a machine gun?
Because it is
registered, it is already
manufactured..he is reconfiguring the firearm.
Title 1 receivers are "registered" and already MFG'd too, just not under the same system.
Originally Posted By Circuits:
Originally Posted By VarmitSniper:
An 01 cannot build 50 a year. This would be manufacturing as a course of business.
The 50 gun exemption is for small manufacturers, if the make 50 or less firearms they are not liable for FET. If they make 51 firearms they have to pay FET on all 51
I disagree. The exemption is so that FFLs who do NOT primarily manufacture can do a small amount of business that is regarded as manufacturing, without incurring a FET liability or requiring they hold a Type 7 FFL. Examples would include refinishing and rebarreling, for two, which are considered manufacturing activities but commonly performed by Type 1 FFL gunsmiths.
The 50 gun exemption is from the TTB which is part of the Treasury Dept, while BATFE is part of the DOJ. Two different agencies, operating under different rules and authorities.
The BATFE FAQ does not address at what number one needs a MFG license. It only states that MFG of ONE item is OK. That would suggest they would not approve of someone making 50 a year.
YMMV.
http://www.atf.gov/firearms/faq/manufacturers.html
