Assume, as a hobby, I buy AR15 components and assemble a complete AR15. The lower receiver would be purchased through a licensed FFL. After assembly, sighting in, and such, I now sell that AR15 to an eligible resident of my state. The proceeds would be used to repeat the project.

My reading of 18 USC 922 (Title 18 - CRIMES AND CRIMINAL PROCEDURE, PART I - CRIMES, CHAPTER 44 - FIREARMS ) says that only "licensed importer, licensed manufacturer, or licensed dealer" can do what I've described above.

Now, extend the thinking to black powder rifles and pistols (such as kits and the like).

If I do this one time, maybe no problem. If I do this once a month, maybe a problem.

Thoughts?

I wouldn't do what you are describing without having an FFL.

That is not a hobby, that is in the business.

The market is pretty low right now. Question, why would anyone buy an AR assembled by a no name, when they could buy one at the same price if not cheaper with a warranty and better resale value ? One thing is to build something for yourself and  then sell it off to buy an upgrade. It's another to routinely do this for profit.

1) Some people don't want guns "registered" to them.
2) Some people can't pass a background check.

Assembling AR's to resell is manufacturing and requires either an 07 or 10 FFL.  Do enough and you also get popped for tax evasion because you didn't collect and remit FAET.

Since I'm the first one who can read.....Muzzleloaders are not firearms under federal law so no FFL is needed.

Well, before you start to brag about your reading ability, you might want to read it again.

Especially this part:

Doing that most definitely requires an 07FFL.
None of the FFL's in this thread give a shit about the muzzleloaders, we already know they aren't considered firearms.

I guess reading and reading comprehension are two different things.

I guess you just skipped the parts you did not like...

I read that as he wants to buy muzzleloader kits and sell them. For me the part in red changes the direction of his thought.

OP clarify for us. Are you wanting to build muzzleloaders ot AR15s?

I read it as bodybagger did. I took it that OP understands that assembling AR lowers into complete rifles is manufacturing. I also read it as OP would like to know how/if 18 USC 922 applies to assembling "black powder rifles and pistols".

I do know assembling AR lowers into complete rifles requires an FFL. I also know that black powder rifles and pistols aren't regulated the same as firearms. I then assume that building black powder rifles and pistols is not regulated the same as building ARs. However, I am not in that business and will let someone more knowledgable confirm or deny.

Watch out for STATE laws.

FET does apply on muzzle loaders.

The ATF is famous for leaving the definition of 'intent' in their statutes rather vague.





What you describe, OP, in regards to AR's, is the intent to manufacture for sale.  This requires a Type 7 or Type 10 FLL.



As stated above, muzzleloaders are not, according to the ATF, firearms.  make and sell all you want.  But pay taxes to your State, unless you are a corporation with a resale certificate.
 

"Manufacturing" is one of those things that has a statutory meaning different from the normal usage.

Because Congress' power to license firearms comes primarily from the Commerce Clause (but in no way involves the 2nd Amendment), it has to do with business licensing.



Definition of Manufacturing, in terms of needing an FFL, from ATF Rul. ATF Rul. 2010-10:



"ATF’s long-standing position is that any activities that result in the making of firearms for sale or distribution ... constitute firearms manufacturing that may require a manufacturer’s license. [Italics mine]



Although installing parts in or on firearms, and applying special coatings and treatments to firearms are manufacturing activities, the definition of "manufacturer” in 18 U.S.C. 921(a)(10) and 27 CFR 478.11

also requires that a person be "engaged in the business” before the manufacturer’s license requirement of section 923(a) applies.



Thus, a person who manufactures a firearm will require a manufacturer’s license if he/she devotes time, attention, and labor to such manufacture as a regular course of trade or business with the principal objective of livelihood and profit through the sale or distribution of the firearms manufactured. [all italics mine]



So, if you collect and/or tinker with guns and sell a few here and there, you're fine even if you put the funds "back in the kitty" so to speak.

But if you serially buy/build/sell/reinvest and that's all you do, you are essentially dealing in firearms and you will need to get an FFL to be legal.

And before y'all start in about jackboots, bear in mind that the exact same thing would apply if this was used cars instead of firearms.

These guys who always have two or three cars for sale in that lot by the highway are always getting busted by the state tax people, and they really nail 'em.

(Speaking of state laws - as someone said above, know and obey!)

Interesting 2nd post.

Dupe. Never mind.





 

I know this is an old thread, but a question came to mind.

If someone purchases a stripped lower receiver, pays for the background check, does the 1073, etc. then he legally owns a firearm (rifle.)  A nonfunctional, stripped rifle, but from a legal perspective it's a rifle.  He can then take that stripped lower receiver (legally a firearm) and add parts to it, such as the LPK, upper receiver assembly, etc. in order to make a complete rifle.  Then he sells it.  Does the law see this any differently than if he were buying and selling stripped lowers?  And, since the legal firearm is already made (the stripped lower), how can he be manufacturing something that already exists?  It's not as though he can put his company name and serial number on the side of the rifle because that's already been done by the company who manufactured it.  

How is this different than if I were to buy a bunch of rifles, bolt a special rear sight, or muzzle device, or whatever on them, and then resell them?  If that is not manufacturing, then how is simply bolting additional things on to that lower receiver?

I'm not trying to be argumentative.  I'm really interested in what constitutes manufacture.  If a guy were milling out 80% lowers, or 0% lowers it would be more clear.  But needing a manufacturers license to manufacture a firearm that has already been manufactured... it sounds obviously silly.

So am I missing something here?

A stripped lower receiver is not a long gun.  It is a firearm that transfers as "Other" on the ATF 4473.

ATF's definition of "manufacturing" is based in tax law, specifically FAET.  If an FFL makes a complete lower receiver, no FAET is due.  Push two pins to put the upper on it, FAET is now due.

Buying firearms with the intent to upgrade/add value and resell requires a manufacturer's license so that you can legally remit FAET on the value of those upgrades.  There's no way for a Type 01 to do that, which is why they sell the firearm first, then take it back in for gunsmithing if the new owner wants modifications made to it that they can't do themselves.

Thank you for taking the time to type that out.  It's easy to forget that the BATF is, at their heart, just an agency whose primary function is tax collection.  So the answer to every  question about the ATF has, at it's heart, a reason based in the tax code.

Even back when the NFA was passed this was viewed as a 'dodge' around the 2nd Amendment.
It did not prohibit machine guns.
It just taxed them.
$200 was a lot more money back then than it is now.

What does using this dodge mean about how they viewed the 2nd?
Think about it.