I'm little carouse about the manufacture license if one goes though all the trouble to get the FFL with the class 2 SOT added on can the licensee buy post 86 sample machine guns from another dealer or manufacture? Can they manufacture machine guns to be used at a range for rental if the business location was the actual range? I'm assuming one could allow people to shoot those firearms as long as they aren't taken from the business location.
FFL licenses to manufacture machine guns?
- Thread starter kell490
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entropy
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I thought that a SOT can only manufacture with a letter of interest on Dept. letterhead from a CLEO. I'm sure there have been some "If I sign on this, we can go out and shoot it, right?" deals, but that notwithstanding, manufacturing to mainly rent them might run afoul of some alphabet agency types.
Maybe a SOT could clear this up for us?
Maybe a SOT could clear this up for us?
(not an FFL or SOT holder)
Buying most post samples requires the LE Letter. (The main exception is that importers and manufacturers can buy them from SOTs who are going out of business without that letter)
Manufacturers can make all of the machineguns that they want. They just have a very limited market to sell them to.
Buying most post samples requires the LE Letter. (The main exception is that importers and manufacturers can buy them from SOTs who are going out of business without that letter)
Manufacturers can make all of the machineguns that they want. They just have a very limited market to sell them to.
( Former SOT 02/07 )
You cannot make machine guns for sale to the public. You can make sales "samples" for eligible parties if they are to be used in house without a letter. Some claim that is not the case and that all guns must be on a letter but thats what I was told by my local ATF agent when I was a 02/07 and thats what several dealer/ranges I frequent that have produced all of their rental machine guns in house and have used them for years have done.
If I wasnt in a "no gun business" zone I'd be an 02/07 right now.
You cannot make machine guns for sale to the public. You can make sales "samples" for eligible parties if they are to be used in house without a letter. Some claim that is not the case and that all guns must be on a letter but thats what I was told by my local ATF agent when I was a 02/07 and thats what several dealer/ranges I frequent that have produced all of their rental machine guns in house and have used them for years have done.
If I wasnt in a "no gun business" zone I'd be an 02/07 right now.
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entropy
Member
Thanks for clearing that up, yugorpk! Perhaps that's why the local SOT mentions machine gun rentals on his card. 
dogtown tom
Member
More correctly,
an 01FFL (Dealer) pays Class 3 SOT allowing tax free NFA transactions.
an 07FFL (Manufacturer) pays Class 2 SOT allowing tax free NFA transactions.
An 07FFL cannot pay for a Class 3 SOT and an 01FFL cannot pay for a Class 2 SOT.
Yes thanks for that clarification, probably an important tidbit.
I suspected the machine gun rental ranges were using a SOT 2 to provide these firearms for the range because I see a local range has a G36 as far as I know that firearm was never produced prior to 5/19/86. My assumption was the only way to make money at machine gun rentals was to manufacture using a FFL with SOT class 2 . My understanding that the SOT 2 doesn't give any way to get around the letter requirement when wanting to transfer those from other dealers. Mostly liklly a large % OF FFL7/SOT2 are only producing sample machine guns for their own purpose.
Acera
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kell490, I like your thinking.
Just hope you decide to open your business in my area as we don't have enough places we can reasonably rent full auto. Hint, hint, we neeeed more belt fed.
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Just hope you decide to open your business in my area as we don't have enough places we can reasonably rent full auto. Hint, hint, we neeeed more belt fed.
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