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Posted: 5/23/2005 5:21:54 AM EDT
Is there anything illegal about building up a kit on a complete receiver and reselling it? The only info I can find deals with bent blanks. I had a guy on another board state that it was a federal offense to build a kit and resell for a profit. If no one knows could you point me to where I could find the applicable laws? Thanks, Ian Davis
Link Posted: 5/23/2005 9:32:26 AM EDT

Originally Posted By 5x5:
Is there anything illegal about building up a kit on a complete receiver and reselling it? The only info I can find deals with bent blanks. I had a guy on another board state that it was a federal offense to build a kit and resell for a profit. If no one knows could you point me to where I could find the applicable laws? Thanks, Ian Davis



I wouldnt do it unless you are a manufacturer
Link Posted: 5/23/2005 11:23:37 AM EDT
Link Posted: 5/23/2005 11:47:57 AM EDT
The other guy is ignorant. It's just like selling any other rifle, ie; face-to-face or ship to FFL.

Link Posted: 5/23/2005 1:40:52 PM EDT
Just like selling any other rifle except if you use a home made receiver. If you use home made you have to adhere to the marking requirements set up by the BATFE. On the other hand if you buy a shitload of kits and start cranking them out one after the other for sale you will find yourself on the wrong side of the law, unless you are a licensed manufacturer.
Link Posted: 5/23/2005 2:02:19 PM EDT
what about the exise tax? A stripped receiver that has never been assembled has not had the exise tax paid on it.

I know liscenced manufacturers need to pay it, and so do dealers, if they take a stripped AR15 and put a parts kit on it, they they have to pay a tax too, if they sell it.

How does that law effect unliscenced people?
Link Posted: 5/23/2005 4:00:21 PM EDT
Excise tax doesn't come into play if you aren't a licensed manufacturer.
Link Posted: 5/24/2005 8:54:44 AM EDT
like stated above, if you build from a blank you must put the proper markings on it then sell it, however some mention something about cranking out kits and getting in trouble. I can see this being a problem with blanks but if you purchase 100% receivers you are not mfg. but i guess you can be in a grey area, not sure on that
Link Posted: 5/24/2005 9:14:12 AM EDT
you guys are slightly off
you dont need to be a manufacturer to build and sell ak's
that would be if your building the rec's
you would just need an ffl
Link Posted: 5/24/2005 2:37:01 PM EDT

Originally Posted By socandyman:
you guys are slightly off
you dont need to be a manufacturer to build and sell ak's
that would be if your building the rec's
you would just need an ffl



that is what i was getting at, if you build the receiver and you sell a good bit of them, then you might have some issue's if you buy the receiver allready built then you have no problem selling them, hey if you build 15 in a month and don't like them 2 weeks later then so be it..
Link Posted: 5/24/2005 2:42:24 PM EDT

Originally Posted By Asher:

Originally Posted By socandyman:
you guys are slightly off
you dont need to be a manufacturer to build and sell ak's
that would be if your building the rec's
you would just need an ffl



that is what i was getting at, if you build the receiver and you sell a good bit of them, then you might have some issue's if you buy the receiver allready built then you have no problem selling them, hey if you build 15 in a month and don't like them 2 weeks later then so be it..



I guess I should have elaborated or been more clear. I was referring to making the receivers and then selling the resulting rifles. As far as I have seen if you build on completed receivers you can make and sell all damn day long. Because you are selling what is already recorded on a 4473, thus it has a paper trail. No different than going to Wal-Mart and buying every gun in the place then selling them at your next rummage sale.
Link Posted: 5/24/2005 2:59:28 PM EDT
[Last Edit: 5/24/2005 3:10:46 PM EDT by Mojo478]
A lot of good information regarding the sale and transfer of firearms can be found at www.atf.gov/firearms/faq/index.htm

Just keep in mind that there is also this pesky little thing called the Patriot Act. I work for a company that manufactures a variety of pyrotechnic devices for the U.S. and some foriegn governments and have recently found out first-hand how the feds are taking some very liberal interpretations of this legislation as a means of keeping the screws turned down nice and tight.
Link Posted: 5/24/2005 3:22:37 PM EDT

Originally Posted By socandyman:
you guys are slightly off
you dont need to be a manufacturer to build and sell ak's
that would be if your building the rec's
you would just need an ffl



Correct. Unless you are selling them in a quantity/manner that the ATF determines to be "engaging in business" of doing so rather than just selling a "personal" collection. I don't think that's at issue in this thread, but wanted to bring it up.
Link Posted: 5/24/2005 4:07:03 PM EDT
[Last Edit: 5/24/2005 4:11:23 PM EDT by Mojo478]
Originally Posted By Mojo478:
A lot of good information regarding the sale and transfer of firearms can be found at www.atf.gov/firearms/faq/index.htm

From the site listed above:

With certain exceptions a firearm may be made by a nonlicensee provided it is not for sale and the maker is not prohibited from possessing firearms.

However, a person is prohibited from making a semiautomatic assault weapon or assembling a nonsporting semiautomatic rifle or nonsporting shotgun from imported parts. In addition, the making of an NFA firearm requires a tax payment and approval by ATF....... [18 U. S. C. 922( o), (r), (v), and 923, 27 CFR 178.39, 178.40, 178.41 and 179.105]


I guess for a positive answer about the "certain exceptions" you'd need to look at 922, 923, CFR 27 parts 178.39, 178.40 and 179.105.
Link Posted: 5/24/2005 4:18:25 PM EDT
Look at this link, it includes a BATF response to this exact question.

http://www.ar15.com/forums/topic.html?b=4&f=51&t=68275
Link Posted: 5/24/2005 4:43:46 PM EDT
Thanks for the replies. 222SAKO - the link you provided specifically asks about receivers being built. I am looking for the legallity of using completed receivers such as Ewbank, Armory, OOW etc... These are already serialized. I don't think I would be making a semi-auto rifle, just assembling parts onto one as the bare receiver is already considered a rifle. -Ian
Link Posted: 5/24/2005 4:52:09 PM EDT
However, a person is prohibited from making a semiautomatic assault weapon or assembling a nonsporting semiautomatic rifle or nonsporting shotgun from imported parts. In addition, the making of an NFA firearm requires a tax payment and approval by ATF....... [18 U. S. C. 922( o), (r), (v), and 923, 27 CFR 178.39, 178.40, 178.41 and 179.105]

I think this is only if you don't use compliance parts. If this were true of any "semi automatic assualt weopon" then people like Jnewt, Teadie, etc.. would be breaking the law by assembling them. -Ian
Link Posted: 5/24/2005 5:10:54 PM EDT
[Last Edit: 5/24/2005 5:13:05 PM EDT by Mojo478]
922 can be read here


923 can be read here


27 CFR (all parts of 178) can be read here


Frankly, I doubt if anybody could make heads or tails of any of this government legalbabble. It all might as well be written in Chianese to me but I've provided the links to anybody that has a whole lot of time on their hands and the curiosity to read through it. Personally, I'm gonna keep building while the building is good until some un-American bastard politician pulls the plug.
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