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So check this out as this is beyond my knowledge base;
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So is it legal to assemble this kit as it is full auto? Obviously it would require a Form 4 but a genuine HK MP5 for this price is ridiculous even with the upper that needs to be finished. I know I am missing something here as this seems too good to be true.
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Yes it is legal to assemble this kit into a full auto MP5.
There are two options.
1. You will need to hold an FFL 07 (manufacturer of firearms and ammo) with an 02 SOT (manufacturer of NFA firearms not including destructive devices).
You will be looking at about $3,500 in annual fees (FFL, SOT, and ITAR) along with needing a business premises zoned for light manufacturing.
Once full licensed you would manufacture the MP5 and submit an ATF Form 2 to have it added to the NFRTR.
2. You would also need to purchase a transferable Pre-86 HK registered sear or trigger frame (about $30,000 to $35,000) and either use the registered trigger box with the factory full auto parts included in the kit or prep the existing full auto trigger frame for use with a HK conversion sear.
If you are asking can you do this as an unlicensed individual and not buy an existing transferable sear or box, the answer is no.