Here it goes:

From my understanding there was a law passed that prohibited owning full auto weapons manufactured after 1986 yet it seems that there are people who own items like MP5's and M-16's.

1) Were these manufactured prior to 1987?

2) Does this only apply to domestic full autos?

I'm sure it has been asked before so sorry and thanks for the info.

Yes they are all pre 86. Unless the person is a FFL and has the additional licensing to make Post-dealer samples, which are Non Transferable.

And this applies to ALL machineguns.

In 1934, the National Firearms Act was passed.  This set the proceedure for manufacturing and registering machineguns and other NFA weapons (MG's, sound supressors, AOW's, SBR/SBS's, DD's, etc.).  A weapon covered by the NFA had to be registered and tax-paid prior to making.   Full auto weapons could be imported or made domestically, but had to be registered and transferred in accordance with the NFA.

In 1968, the Gun Control Act of '68 was passed, which made some minor changes to the NFA.  There was also a short amnesty period for people to register weapons which hadn't been properly registered prior to that.  The GCA'68 also cut off the importation of MG's for civilian use.  MG's could still be imported into the US, but they were only available to dealers (aka -a pre-86 dealer sample).  MG's could still be made and registered for unlicensed individuals domestically though.

The law in 1986 (922(o) prohibited the domestic manufacture (and registration) of new machineguns for civilian use.  Guns already in circulation were grandfathered, provided they are owned in accordance with the NFA (National Firearms Act) and registered/transferred properly.  Guns made after this date are available to dealers only (aka-a post-86 dealer sample).  Post-86 dealer samples cannot be retained by a dealer once he relinquishes his license.  Pre-86 dealer samples can, but cannot thereafter be transferred to a civilian.

This is why you see so few factory made transferable machineguns that are not made here in the US - they had to be imported prior to 1968.  For example, you'll see plenty of UZI's on the market, but they are either (domestic) conversions from semi autos made and registered prior to 1986, or they are made on receivers made and registered in the US prior to 1986 (the Group Ind./Vector guns).  There are only about a half dozen real factory IMI Uzi SMGs in private hands in this country, the rest are either made here (not real IMI guns), or they are aftermarket conversions.  The MP5's you see in private hands are conversions of semiauto 94's that were in this country prior to 1986 and some manufacturer or individual decided to register and convert to full auto.  I've heard there are a handful of real, factory MP5's though, but they would be quite the collectors piece because they'd have to have been imported prior to 1968.  Another example; you'll see MG34's, but a lot are rewelds made here prior to 1986 by putting a demilled kit back together.  There are a few that came in prior to 1968, but they are few and far between and command a premium price.  M16's OTOH are made here, so factory M16's were still being registered, made, and sold to civilians right up to 1986.

I 'think this is correct:

Pre May MG's may be owned by Class III dealers and the general public when transferred on an approved Form 4.

Post May guns are generally samples and may be owned by Class III dealers only when accompanied by a letter on the official letterhead of a Law Enforcement Agency.  Obviously LE may own Post May MG's.

As stated above, I believe 1986 is the defining year.

Quoted: Here it goes: From my understanding there was a law passed that prohibited owning full auto weapons manufactured after 1986 yet it seems that there are people who own items like MP5's and M-16's. 1) Were these manufactured prior to 1987?

I do believe there were quite a few M16s made before 1987.