nfa manufacturers

[sixgun_grunt]

Hello, my family owns a machine shop and we have been thinking about getting an ffl and a license to manufacture firearms, i have also been thinking about possibly manufacturing suppressors also, now we have not started the process of doing all the proper paper work yet so my question is, does a manufacture have to pay the $200 tax on every nfa item ( suppressor ) they make ? or is that only done when the item is sold ?

 

[kingpin008]

No. The $200 fee is paid by the purchaser.

 

[Quiet]

In order to manufacture NFA firearms, you will need to be a Type 07-FFL Class 2 SOT.
The Type 07-FFL, lets you manufacture Title 1 firearms and will cost you $150 every three years in fees to the BATFE.
The Class 2 SOT, lets you manufacture Title 2 firearms and will cost you $1000 every year in fees to the BATFE.
There will be additional state/local fees/taxes as well. Depending on what type of firearms you manufacture, you may have to pay fees to the (ITAR) State Department as well.

If you give up your Class 2 SOT, then you must destroy or transfer away all the NFA firearms in your inventory.

 

[Bubbles]

Welcome to the dark side.

Since you already have a business in place getting your FFL/SOT should be a piece of cake. Your biggest stumbling blocks will be retaining your business liability insurance (mention "gun" to some carriers and they run away screaming) and ITAR registration (just another Federal fee of $2250/year).

Also, if your business currently takes credit cards make sure that the transaction processor isn't affiliated with First Data, as they also won't deal with firearm-related businesses.

 

[sixgun_grunt]

great info, thanks alot guys, its gonna be a while yet til we start producing anything but its definetlt on the drawing board

 

[GonHuntin]

If you give up your Class 2 SOT, then you must destroy or transfer away all the NFA firearms in your inventory.

I don't believe this is true........you would have to dispose of any "post sample" machine guns, but pre sample and transferrable machine guns as well as any short barreled rifles/shotguns, suppressors, AOWs etc in inventory could be retained.

 

[mp510]

The tax only has to be remitted on transfers to non-SOTs. When a 07/02 (or type 10 FFL for DD's) makes NFA items, they submit a Form 2 which is a tax free registration. Technically, the seller is the one who is responsible for makeing sure that the tax is paid. However, for practicality sake, the non-SOT buyer pays it (one way or another).