You don't need serial numbers or any sort of markings on a gun you made if you're not an FFL, even if you decide to sell it. And you don't need to be an FFL to sell a firearm you made for your own personal use.
So he is OK selling this as-is, as long as he doesn't start cranking them out by the crate-load and offloading them on gunbroker. At that point he would be in the business and would need to get an Type 07 FFL and start serializing the guns.
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