Ever since the gun control act of 1968 was passed, the manufacture and sale of firearms is only possible by those in possession of a Federal Firearms License, (FFL). In order to obtain one of these licenses, an application must be filed with the Bureau of Alcohol, Tobacco, Firearms, and Explosives. This form is known as ATF form 7, and can cover a number of different types of licenses. An outline of the different types and special operation tax classes, (SOT) for NFA firearms are listed and outlined below.
First, the FFL license types:
Type – Description – Fee
1 Dealer in firearms, for other than destructive devices – $ 200
2 Pawnbroker for firearms, other than destructive devices – $ 200
3 Collector of Curio & Relic (C&R) firearms. Only for collecting and not to be used for buying and selling – $ 30.00
6 Manufacturer of ammunition and reloading components other than armor piercing ammunition
NFA, destructive – $ 150.00
7 Manufacturer of firearms, ammunition and ammunition components other than NFA, Destructive Devices and Armor Piercing Ammunition
8 Importer of firearms and ammunition other than destructive devices – $ 150
9 Dealer in destructive devices – $ 3000
10 Manufacturer of firearms, ammunition and ammunition components, including NFA destructive devices but no other NFA items, and not including armor piercing ammunition
11 Importer of firearms, ammunition and NFA destructive devices, but no other NFA items
For NFA, (National Firearms Act of 1934), firearms and ammunition the classification is as follows:
Class – Usage
Class 1 Importer of NFA firearms
Class 2 Manufacturer of NFA firearms
Class 3 Dealer of NFA firearms
One thing to note is that all firearms licenses are valid for a period of three years (3), and are non-transferable.
While at first this classification scheme may appear overly complex, if you spend a little time reading the law, it will start to make sense. If nothing else, i hope this brief outline will provide you with a much deeper appreciation for the complexity involved with obtaining and maintaining federal firearms licenses. If you're interested in obtaining a federal firearms license, try not to be dissuaded by all the requirements .. Take your time, do your research, and seek out help when needed. It's a very rewarding and profitable venture that will pay off for years to come.