"Second, the crux of the issue here seems to be that the ATF is trying to work out whether the specific process Ares is using produces something that IS a firearm or is NOT a firearm. Like it or not, that kind of thing is in their power to decide, and if Ares was making "firearms," not firearm-like paperweights, (under the ATF's determination) then they've been breaking federal law, selling them without proper transfer. Maybe inadvertently, maybe not, maybe the ATF has changed their minds and reversed themselves. Lots of possibilities."
1) History has shown repeatedly that a raid/focus like this is the death of a business (EP is surely dead, ARES may follow) since the entire inventory is destroyed without compensation (I've never quite understood how that passes Constitutional muster, but I guess corporations have no rights despite being people)
2) In this particular case, the ATF is knowingly pursuing the raid/investigation under false pretenses. The plug is keyed into the FCG pocket casting, thus it had to come first, else the lower would still be stuck in the mould
3) We have been shown the kind of back-alley tactics the ATF uses to strong arm businesses into compliance (remember the bit about them scanning bound books, with intimidated FFLs afraid to say anything?), threatening raids (violence) and charges (monetary/freedom loss) unless their dubious demands are met.
The ATF can surely reverse their policies, they do have that power. But they need to exercise it properly. Just because one of their agents wrote an opinion deciding the 80% are illegal based on a mistake, does not give them carte blanche to harass and terrorize store owners, nor their customers. If the ATF really wants to do this the right way, they will issue new guidelines, send out the information to 80% manufacturers along with a cease-and-desist to stop new production, and set up an amnesty period in which owners of these lowers and 80% can have them recorded and dispositioned. If a seller keeps selling the then-illegal item, or a builder retains possession of the then-contraband, then they will be in trouble.
There has been zero effort on the part of the ATF to accommodate the glaring commonality/ubiquity of these long-accepted items widely in circulation. I seriously think we need to organize a nation wide response to this action in CA, since this kind of arrogance is something new, even for the ATF. At least open-bolt guns are easily convertible to full auto, the original PPSH demils could be fired unrepaired, and entering thousands of MAC serial numbers into a bound book ahead of the MG registry closure is pretty shady. There is no "constructive" difference between an EP 80% lower, an AR15 poly lower, and an M16 full auto lower --and yet EP is only being sought for the AR15 charge and not the more serious one.
Builders have been wondering for a while when the administration would make its move. I wonder if any pre-templated receiver kit is next.
TCB