I'm a bit confused.  I was reviewing my copy of "Home Workshop Guns For Defense and Resistance Volume 2 The Handgun" By Bill Holmes, C 1979.  The book begins with this warning by the author, followed by a notice from BATF noting Title 26, United States Code:
"WARNING: It is just as illegal to build or manufacture a pistol in your own workshop for your own use as it is to build a submachine gun or any other firearm.  Therefore, be warned that you may be breaking some law if you even attempt to build either of the guns described here.  Federal law prohibits the manufacture of any firearm until, and unless, certain conditions are met.  Many state laws also prohibit firearms manufacture.
Notice From ATF P 5300.5 Title 26, United States Code  No person shall make a firearm unless he has (a) filed with the Secretary or his delegate a written application, in duplicate, to make and register the firearm on the form prescribed by the Secretary or his delegate; (b) paid any tax payable on the making and such payment is evidenced by the proper stamp affixed to the original application form; (c) identified the firearm to be made in the application form in such a manner as the Secretary or his delegate may by regulations prescribe; (d) identified himself in the application form in such manner as the Secretary or his delegate may by regulations prescribe, except that if such person is an individual, the identification must include his fingerprints and his photograph; and (e) obtained the approval of the Secretary or his delegate to make and register the firearm and the application form shows such approval.  Applications shall be denied if the making or possession of the firearm should place the person making the firearm in violation of the law".

Have the laws changed since 1979 when this book was first written?  My understanding of the law is that any person who can legally possess a firearm can make a Class II, (no full-auto, no silencers, so short barrel rifle shotgun or rifle) firearm for personal use, (will not sell, give or transfer to another person) legally.  When one of the contributors to this board wrote to BATF for written clarification about building an AR15 lower receiver from an 80% Alcoa casting, they gave him a green light, saying it was legal for him to do so:

[IMG]www.chesapeake.net/~mcfadden/bigtoys/law/1.jpg[/IMG]
[IMG]www.chesapeake.net/~mcfadden/bigtoys/law/2.jpg[/IMG]
[IMG]www.chesapeake.net/~mcfadden/bigtoys/law/3.jpg[/IMG]

My question, then, is what does ATF P5300.5 Title 26, USC mean?  Is this just for SOT or licensed manufacturers who intend to sell the weapon?  Who does this apply to?

Thanks in advance.

From the latest ATF "question and answer" FAQ, it is legal for a private, unlicensed individual to make for their own use any firearm which they are not otherwise (by federal, state or local ordnance) prohibited from owning.

One rule of thumb as to whether such manufacturing is legal or not, is whether the firearm so manufactured is indeed intended for personal use, or resale is to hold said firearm for at least one year before selling it.

Another rule of thumb is that making no more than one such firearm per year will not run afoul of ATF guidelines for manufacturing for personal use (versus manufacturing for resale, which requires a Type 07 FFL).

I would hazard a guess that the language in your reference work is dated, as home manufacture of both pistols and rifles is tolerated by the ATF under current guidelines, provided the resultant product was not originally intended for resale.

A question on the thread: Are there any fees that have to be paid for the home built items?  I did't notice any mention in you letter.

For a standard Title 1 firearm like a post-ban AR-15, no paperwork and no fees.  Just stay well clear of the 18 USC items described in your letter.

If you want to make an NFA-regulated item like a short-barrelled shotgun or rifle, there is federal paperwork and fees plus whatever your state requires.