If you BUY AND SELL guns you are required to obtain a Federal License!

Dealer.
Any person engaged in the business of selling firearms at wholesale or retail;
 any person engaged in the business of repairing firearms or of making or fitting special barrels, stocks, or trigger
mechanisms to firearms; or any person who is a pawnbroker.

The term shall include any person who engages in such business or occupation on a part-time basis.


Engaged in the business--
Manufacturer of firearms. A person who devotes time, attention, and labor to manufacturing firearms as a
regular course of trade or business with the principal objective of livelihood and profit through the sale
or distribution of the firearms

Dealer in firearms other than a gunsmith or a pawnbroker. A person who devotes time, attention, and labor to
dealing in firearms as a regular course of trade or business with the principal objective of
livelihood and profit through the repetitive purchase and resale of firearms, but such a term shall not
include a person who makes occasional sales, exchanges, or purchases of firearms for the enhancement of a
personal collection or for a hobby, or who sells all or part of his personal collection of firearms;


U.S.C. The United States Code.

(5 U.S.C. 552(a), 80 Stat. 383, as amended; 18 U.S.C. 847 (84 Stat.
959); 18 U.S.C. 926 (82 Stat. 1226))

[T.D. ATF-48, 43 FR 13536, Mar. 31 1978; 44 FR 55842, Sept. 28, 1979]



What does this mean to you and why?
ATF receives requests from Law Enforcement Agencies to trace firearms found used in crimes from all over the country including other country’s.
This starts with the manufacturer and or importer of the firearm and serial number. ATF will contact the manufacturer and or importer of the
firearm to inquire as to whom they transferred it to. They then inquire to that dealer or distributor as to whom it was transferred to, until they
find the end user. That would be the one that filled out the 4473 as an unlicensed person.

Now do you still have the firearm in question? If so there must be a mistake on their part because you and the requesting agency cannot BOTH
have the same firearm and serial number. But fear not because you can produce the firearm for their inspection .

BUT if you do not still have the firearm, then what did you do with it? Sold it; O.K. who did you sell it to and on what day?  Do you have proof
it was a lawful sale? What do you mean a "lawful sale"? You as an unlicensed person are still required to comply with Federal law and your
state law (varies state to state):
1. A resident of your same state OR a Federally Licensed Dealer in any state.
2. At least 18 years old.
3. Not a prohibited person from possessing firearms under Federal OR state law.
Well lets look at that, you should have a copy of their Drivers License OR Federal Firearms License that will satisfy 1&2 but what about 3?
The best way to avoid a problem with a prohibited person is to go to a dealer and have them process the transfer from you to them to be
certain it is a "lawful sale".  I get a few requests for this just for the sellers peace of mind knowing they have complied with the law completely.
It would be best to use the dealer you originally obtained the firearm from because the dealers records will show ATF the dates you had the
firearm and the date the last sale was made as well as the 4473 form of the last transfer.

BUT what if the firearm was stolen? You better have the documented police report.

BUT what if you do not have any proof as to whom you sold it to? Well ATF's next question may be "Where were you on the night of"!
Then they will start looking into if you are dealing without a license! There is no set number of buying and selling of firearms to require a license.
Just are you making a profit. Obviously the more you buy and sell and making a profit from each one is cementing the accusation of dealing
without a license but if firearms are involved you sold that have been linked to crimes, you have a problem. Now ATF has to clean up the
mess you left by improper and undocumented sales and they will not be happy.

WHAT ABOUT BUILDING YOUR OWN FIREARM?

If you buy a stripped receiver and build your own firearm there are a few things to keep in mind.  A NEW Bare receiver is not a Rifle or
a Pistol but is a firearm. Federal Law states Rifles can be purchased in other states at Federally Licensed Dealer Premises (State Law varies).
But Handguns and Receivers cannot. You can build your stripped receiver as either but certain restrictions apply.

1. If you build your receiver into a rifle, it must always be a rifle! A minim of 16" barrel and 26" over all length with stock extended.
(Again state law varies)

2. ASSEMBLY OF NON-SPORTING SHOTGUNS AND SEMIAUTOMATIC RIFLES FROM IMPORTED PARTS
The prohibition on assembly of non-sporting shotguns and semiautomatic rifles from imported parts as
provided under 18 U.S.C. § 922(r) and 27 CFR § 478.39 still applies.
                   From ATF Q&A

For your information, per provisions of the Gun Control Act (GCA) of 1968, 18 U.S.C. Chapter 44, an unlicensed individual may make a “firearm” as defined in the GCA for his own personal use, but not for sale or distribution.

The GCA, 18 U.S.C. § 921(a)(3), defines the term “firearm” to include the following:

… (A) any weapon (including a starter gun) which will or is designed to or may be readily converted to expel a projectile by the action of an explosive: (B) the frame or receiver of any such weapon; (C) any firearm muffler or silencer; or (D) any destructive device. Such term does not include an antique firearm.

In addition, the National Firearms Act (NFA), 26 U.S.C. § 5845(b), defines the term “machinegun” as:

… any weapon which shoots, is designed to shoot, or can be readily restored to shoot, automatically more than one shot, without manual reloading, by a single function of the trigger. This term shall also include the frame or receiver of any such weapon, any part designed and intended solely and exclusively, or combination of parts designed and intended, for use in converting a weapon into a machinegun, and any combination of parts from which a machinegun can be assembled if such parts are in the possession or under the control of a person.

Finally, the GCA, 18 U.S.C. § 922(r), specifically states the following:

It shall be unlawful for any person to assemble from imported parts any semiautomatic rifle or any shotgun which is identical to any rifle or shotgun prohibited from importation under the…[GCA]…Section 925(d)(3).as not being particularly suitable for or readily adaptable to sporting purposes ….

Also, 27 C.F.R. § 478.39 states:

…
  1. (a) No person shall assemble a semiautomatic rifle or any shotgun using more than 10 of the imported parts listed in paragraph (c) of this section if the assembled firearm is prohibited from importation under section 925(d)(3) as not being particularly suitable for or readily adaptable to sporting purposes ….
  2. (b) The provisions of this section shall not apply to:
    1. (1) The assembly of such rifle or shotgun for sale or distribution by a licensed manufacturer to the United States or any department or agency thereof or to any State or any department, agency, or political subdivision thereof; or (2) The assembly of such rifle or shotgun for the purposes of testing or experimentation authorized by the Director under the provisions of [§478.151(formerly 178.151)]; or (3) The repair of any rifle or shotgun which had been imported into or assembled in the United States prior to November 30, 1990, or the replacement of any part of such firearm.
  3. (c) For purposes of this section, the term imported parts [tabulated below] are:
    1. (1) Frames, receivers, receiver castings, forgings, or castings.
    2. (2) Barrels.
    3. (3) Barrel extensions.
    4. (4) Mounting blocks (trunnions).
    5. (5) Muzzle attachments.
    6. (6) Bolts.
    7. (7) Bolt carriers.
    8. (8) Operating rods.
    9. (9) Gas pistons.
    10. (10) Trigger housings.
    11. (11) Triggers.
    12. (12) Hammers.
    13. (13) Sears.
    14. (14) Disconnectors.
    15. (15) Buttstocks.
    16. (16) Pistol grips.
    17. (17) Forearms, handguards.
    18. (18) Magazine bodies.
    19. (19) Followers.
    20. (20) Floor plates.
…

As a result of a 1989 study by the U.S. Treasury Department regarding the importability of certain firearms, an import ban was placed on military-style firearms. This ban included not only military-type firearms, but also extended to firearms with certain features that were considered to be “nonsporting.”

Among such nonsporting features were the ability to accept a detachable magazine; folding/telescoping stocks; separate pistol grips; and the ability to accept a bayonet, flash suppressors, bipods, grenade launchers, and night sights.

Please note that the foreign parts kits that are sold through commercial means are usually cut up machineguns, such as Russian AK-47 types, British Sten types, etc. Generally, an acceptable semiautomatic copy of a machinegun is one that has been significantly redesigned. The receiver must be incapable of accepting the original fire-control components that are designed to permit full automatic fire. The method of operation should employ a closed-bolt firing design that incorporates an inertia-type firing pin within the bolt assembly.

Further, an acceptably redesigned semiautomatic copy of nonsporting firearm must be limited to using less than 10 of the imported parts listed in 27 CFR § 478.39(c). Otherwise, it is considered to be assembled into a nonsporting configuration per the provisions of 18 U.S.C. 925(d)(3) and is thus a violation of § 922(r).

Individuals manufacturing sporting-type firearms for their own use need not hold Federal Firearms Licenses (FFLs). However, we suggest that the manufacturer at least identify the firearm with a serial number as a safeguard in the event that the firearm is lost or stolen. Also, the firearm should be identified as required in 27 CFR 478.92 if it is sold or otherwise lawfully transferred in the future.


3. If you build it as a handgun you cannot attach a vertical fore grip or a shoulder stock. There is an exception to the vertical for grip
prohibiton, if the over all length is longer than 26" ATF considers it a non-concealable pistol and you can attach a vertical fore grip such as the
Thompson pistol (Tommy gun copy) which is over 26" in length.

WHAT IF I BUILD MY OWN RECEIVER?

All of the above still apply
If you build several receivers into working firearms you are again putting yourself in a position of being an unlicensed Manufacturer.




I hope you find this information useful.