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So, I became an FFL, how do I become Class 3?

Discussion in 'NFA Firearms and Accessories' started by xsiv4s, Oct 21, 2011.

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  1. xsiv4s

    xsiv4s Member

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    I recently received my FFL as a manufacturer and I have spent hours on the ATF website and sent them a couple emails, but I have not figured out the next step in building and reselling class 3? Has anyone recently gone through this process?
     
  2. Sam1911

    Sam1911 Moderator

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    You may be looking at two different things. SOT 02 is for manufacturers. SOT 03 is for dealers.

    What kind of FFL do you have?

    We have several active members who are SOT02s who I'm sure would be happy to talk to you about it. Member Bubbles is very helpful and I'm sure wouldn't mind a Private Message inquiring about it.
     
  3. xsiv4s

    xsiv4s Member

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    Thank you, any help would be appreciated. I recently received my 07-manuafacturer of firearms other than destructive devices. I would like to build and transfer class 3 weapons, but I haven't been able to figure out the next step.
     
  4. TexasRifleman

    TexasRifleman Moderator Emeritus

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    You need to contact ATF directly and ask about paying the Special Occupational Tax.

    If you want to manufacture, that's a $1000 yearly tax renewable in July,and they don't prorate it out so if you want it in June you still pay $1000 for that month, then renew it in July.

    NFA Branch, 244 Needy Road, Suite 1250, Martinsburg, West Virginia 25405
    (304) 616-4500

    Here is the form:

    http://www.atf.gov/forms/download/atf-f-5630-7.pdf
     
  5. xsiv4s

    xsiv4s Member

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    Thanks Texas Rifleman, that is great information. I spent a lot of hours trying to find that info, I guess I should have started here first.
     
  6. GoingQuiet

    GoingQuiet Member

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    Not to pick on you but this term gets thrown around incorrectly EVERYWHERE.

    There is no such thing as a "Class 3 weapon" there is no such thing as a "Class 3 item" etc.

    Class 3 is a tax bracket. It is a class of taxpayer. If you are an FFL, of which you are - you become a Special occupational taxpayer. The class of taxpayer is the activity. To be an NFA manufacturer you would be a Class 2.

    The proper term is Title 2 firearm, title 2 item, title 2 transfer, etc. Everyone gets it wrong because dealers and manufacturers get it wrong and it just rolls downhill.
     
  7. dogtown tom

    dogtown tom Member

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    So........what about Class III firearms ?



















    :D
     
  8. TexasRifleman

    TexasRifleman Moderator Emeritus

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    Troublemaker :)
     
  9. xsiv4s

    xsiv4s Member

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    Thanks for the info, I will happily take it in any form I can get it. TexasRifleman seems to have put me in the right direction for the form I need to fill out and submit. Are any of you that have submitted a response a manufacturer? My second question is a simple one, but I have not received a response from the ATF. When I build a firearm and later NFA weapons, How do I assign a serial number for it? Is this something the ATF choses? Are there guidelines? Do I need to submit the number to them for approval?
     
  10. Bubbles

    Bubbles Member

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    You are responsible for assigning the make, model, and serial number to the firearm. You are responsible for marking the firearm with this information. You can either get the equipment to DIY or have it done by another shop. We broke down and bought a used engraver (about $4500 total) as in the long run it'll be cheaper than paying to have it done.

    Before going any further down this road I strongly suggest reading the ATF's NFA Handbook as it will contain answers to most of your questions, including a bunch you haven't considered.

    Also, as a Type 07 these links will also give you information you need to have to stay on the right side of the law:
    ATF - Firearms Industry FAQ

    ATF Tax & Trade Bureau - Firearms & Ammo

    US Department of State Directorate of Defense Trade Controls
     
  11. TexasRifleman

    TexasRifleman Moderator Emeritus

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    Bubbles is right, he does this every day so listen to him. You want to commit most of the NFA Handbook to memory and be VERY careful with this stuff.

    You are are considering a fun and possibly profitable business, but also one that can put you in prison for a very long time.

    Do LOTS of research before applying for the SOT. There is little room for error in that business.

    ETA: Oops, Bubbles is female. My bad, foot in mouth :)
     
  12. Sam1911

    Sam1911 Moderator

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    Bubbles is right, She does this every day so listen to her.

    :D
     
  13. TexasRifleman

    TexasRifleman Moderator Emeritus

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    Dang it. :) Sorry Bubbles.
     
  14. xsiv4s

    xsiv4s Member

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    Thanks Bubbles, I've opened and saved all the links and on the NFA handbook, downloaded it to a cd. It looks like I have a lot of reading to do.
     
  15. Jim K

    Jim K Member

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    It should be needless to say, but don't forget that you have to comply with state and local laws as well. The feds will usually warn you about those, but they might not. There have been some cases in MD where Title II (see, I got it right, I think) dealers, out of ignorance, failed to comply with the state MG registration law and lost their business and stock, though I think they avoided prison terms.

    Jim
     
  16. RhinoDefense

    RhinoDefense Member

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    Just pay the SOT, there's no application. It's a tax (Special Occupational Tax). The SOT class follows the type of FFL you have. If you're a dealer you get a dealer, if you're importer you get an importer, if you're a manufacturer you get a manufacturer.
     
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