I want to do some gunsmithing in my area. I have read a lot and the atf says that just about any modifications to a firearm on a regular basis makes you a manufacture. ATF Online - Firearms - Frequently Asked Questions - Manufacturers
So, I would just get the type 7 to be safe but what about the Itar tax? From what I'm reading all 07s have to pay the ITAR even if you don't export anything, because you're a manufacturer. I see on forums where it is debated, but it seems to be clear the government wants there cut for nothing in return.
Can any of you with an type 07 ffl confirm this?
I have ran a busniess before and I now how much money it takes to make a profit I just want to get all the information I can.
thanks, any advice is more than welcome
"Man needs but two things to survive alone in the woods. A blow up female doll and his trusty old AK-47" - Thomas Jefferson 1781
ATF sez making modifications to firearms the business/gunsmith owns and offering them for sale is manufacturing. If all you do is work on customer owned guns, the normal Type 01 is all you need. An OCCASIONAL mod done to your own guns, such as say add a scope to a rifle you purchased and are reselling, would also be covered. Only when it becomes a "regular part of your business" do you need the 07.
Not as disagreement with the kernel, I completely agree with his assessment. Just to show how a bureaucracy can pervert the meaning of a word:
Definitions of manufacturing on the Web:
* fabrication: the act of making something (a product) from raw materials; "the synthesis and fabrication of single crystals"; "an improvement in the manufacture of explosives"; "manufacturing is vital to Great Britain"
I have a daughter. I tell her, "911 is what you dial after you're raped. 1911 is what you should have before they try."
I agree, I think that is what ATF is trying to say. I wonder how many type 07 FFLs pay the ITAR tax. If it wasn't for that damn tax I could be a 07 and not have to worry about it. NOT worth the risk, of not paying tho.
You can tell the government is trying to squeeze out the little man. Cutting down on what a gunsmith can do with a type 1 and increasing the ITAR tax by hundreds of dollars, with no exception for small businesses.