I read elsewhere that you need a type 07 ffl if you want to sell firearms you build. But there was some disagreement on what constitutes "building a firearm". In the case of ARs, some said that you had to manufacturer (CNC) the lower yourself to be considered the builder. Others said that assembling uppers, lowers, BCGs, etc. qualifies as building a firearm. Which is it?

And how is type 07 different from type 06? They look the same to me.

If I wanted to buy parts when they were at good prices then assemble an AR and sell it, what kind of license would I need?

Thank you

07.

Lowers and uppers sold separately have not had Firearms and Ammunition Excise Tax paid on them, so if a licensee assembles them for resale, that assembly is considered to be a "manufacturing activity" and requires a manufacturer FFL.

There is an exemption on paying the actual tax for 07s who "manufacture" less than 50 per calendar year, but no exemption for dealer 01s to "assemble as manufacturing".

Thanks for the info!

Oh, and to the other part of your question, Type 06 is an ammunition manufacturer's license. It doesn't allow the holder to manufacture firearms for resale, it only allows for manufacturing ammunition commercially and paying the ammunition excise tax.

What legal distinctions allow people to reload ammo without having a type 06 ffl? Is it only necessary for manufacturing and selling?

Another FFL question: how often can people with a type 03 ffl sell firearms? If they have a collection in heavy rotation, do they need a type 01?

Thanks

An 06 is required if you are manufacturing ammunition for sale.
No FFL is required to sell ammunition manufactured by someone else.




An 03FFL is for Collectors of Curios and Relics and cannot be used to engage in the business of dealing in firearms. There is no restriction on how often an 03 sells/trades/buys.......but repetitive buying and selling may indicate to ATF that he really isn't "collecting" but is actually dealing in firearms.    

"Heavy rotation" sounds a lot like he isn't collecting, but dealing in firearms.