Type 01 vs type 07 FFL

j7794led · May 6, 2016

hey all, I've done a bunch of research and ultimately set up an LLC and applied for a type 07 FFL to primarily do cerakote. I wanted a 07 so I could purchase, coat, then sell guns and not just do customer pay work. They called today and scheduled my interview for Monday but told me on the phone today that if I'm doing a type 07, they are now making you register for ITAR prior to issuing, and they are checking for ITAR now on inspections. I'm kitchen table and not going to pay $2300 a year, so changed it to type 01 right now. Any information anyone has to dispute the statements given me? Is it just the individual inspector that decides if ITAR is required or not? Any legal workaround? Thanks in advance.

wired · May 7, 2016

They got guidance to do that and thats what they are doing. The regs are pretty clear an while no one likes it ITAR does appear to be needed.

j7794led · May 7, 2016

After a day if soaking in, the big issue is the guys that have not had it enforced for 20 years and now it will be. Guess I'm getting lucky by finding it out up front

Velzey · May 7, 2016

You do not need an 07 for that type of work, and 01 will work just fine. If your going to mfg firearms then yes you need it.

You can purchase, coat, repair, etc with an 01. But you cannot mfg with it.

wired · May 7, 2016

The most recent atf rulings require a type 7 for anything that would require metal work, refinishing etc. Basically if it's not a bolt on they want a 07.

j7794led · May 7, 2016

Atf told me as long as I do customer pay work, 01 is fine. I cannot coat guns I or my LLC owns without a type 07, and marking equipment to mark my name and city and state per guidelines. I can sell guns and then coat them, but work has to be done for a different party.

Velzey · May 7, 2016

wired said:
The most recent atf rulings require a type 7 for anything that would require metal work, refinishing etc. Basically if it's not a bolt on they want a 07.

Please post up the recent rulings.

The key word is "create", if you don't create you don't need an 07

This is from 2015,

Held, any person (including any corporation or other legal entity) engaged in the business of performing machining, molding, casting, forging, printing (additive manufacturing) or other manufacturing process to create a firearm frame or receiver, or to make a frame or receiver suitable for use as part of a "weapon … which will or is designed to or may readily be converted to expel a projectile by the action of an explosive," i.e., a "firearm," must be licensed as a manufacturer under the GCA; identify (mark) any such firearm; and maintain required manufacturer's records. - 6 - Held further, a business (including an association or society) may not avoid the manufacturing license, marking, and recordkeeping requirements of the GCA by allowing persons to perform manufacturing processes on blanks or incomplete firearms (including frames or receivers) using machinery, tools, or equipment under its dominion and control where that business controls access to, and use of, such machinery, tools, or equipment. Held further, this ruling is limited to an interpretation of the requirements imposed on persons under the GCA, and does not interpret the requirements of the National Firearms Act, 26 U.S.C. 5801 et. seq. ATF Ruling 2010-10 is hereby clarified. Date approved: January 2, 2015

wired · May 7, 2016

I don't like it either but that is what the atf is telling new applicants. If you do work to existing guns you need an 07. Your post alluded to that.call them. They'll say the same thing.

j7794led · May 7, 2016

I was told new applicants AND all current held type 07 during their audit. The ITAR applies to ALL type 07, and they are now reporting it if they find an 07 not paying it during an audit (different agency) here is the rule I was given about 07/01 and cerakote (ATF rule 2010-10 if the link doesn't work)

https://www.atf.gov/file/82791/download