How does NFA work when it's a DIY conversion?

[Theohazard]

Originally Posted by dogtown

The "average gun owner" doesn't give a rats hiney whether his dealer has a Class 2 or Class 3 SOT.

The intent of my post was simply to explain where the often-misused term "Class 3" came from. You often hear people say things like "he has a Class 3".

Originally Posted by dogtown tom

When you "elaborate" on someone else's post you shouldn't muddy the water.

I really don't see how I "muddied the water". To me, going on and on about the difference between manufacturer/dealer FFLs and dealer-only FFLs and how they relate to the different SOTs would have muddied the water more. I simply wanted to point out that the term "Class 3" is often misused and many dealers are actually Class 2 SOTs. (And yes, those dealers need a manufacturing FFL to get a Class 2 SOT.)

Originally Posted by dogtown tom

Often? 01/02's outnumber 07's by almost 7:1

Seriously? You just always need to be right, don't you? Yes, "often", as in "happening frequently". Did I say they were a majority or even a plurality? No, I didn't.

Dogtown Tom, I -- and many other people here -- value your expertise and knowledge regarding issues like this one. Feel free to clarify and expound if you think I over-simplified something, but your rude and condescending way of correcting people gets old after a while.

[Nlight1]

Originally Posted by dogtown tom

When you wrote: "....A Class 2 SOT is even better than a Class 3 because it allows the dealer to both manufacture and sell Title II firearms.."

That implies that a "Dealer" has the option of a Class 2 SOT or a Class 3 SOT.......they don't.

I understood it the same way.

Thanks for clearing that up.

[Theohazard]

Originally Posted by Nlight1

I understood it the same way.

Thanks for clearing that up.

Actually, a dealer (as in "a shop that deals in firearms") does have the option of a Class 2 SOT or a Class 3 SOT: They can set up a dealer-only FFL and get a Class 3 SOT, or they can set up a dealer/manufacturer FFL and get a Class 2 SOT. And next time I'll be sure to get into those details and avoid all this.

[James K]

Here is a summary, but please understand that it does not and cannot cover every nook and cranny of the federal firearms laws.

Federal Firearms Licenses (FFL’s) are licenses issued by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (part of the DOJ). With some exceptions, an FFL is required in order to manufacture, import or deal in firearms in the U.S. There are 9 kinds of FFL, generally referred to as “Types”, and three kinds of Special Occupational Tax to allow the holder of an FFL to import, deal in or manufacture Title II firearms (see below). A license to import or manufacture firearms includes the authority to deal in that type of firearms; that allows importers and manufacturers to deal directly with the public where otherwise permitted.

There are two basic kinds of firearms, differentiated by the Titles (sections) of the Gun Control Act which covers them. Ordinary rifles, shotguns and handguns are covered under Title I, and commonly called “Title I firearms”. Other firearms, such as machineguns, short barreled rifles and short barreled shotguns are covered under Title II and commonly called Title II firearms or “National Firearms Act” (NFA) firearms from the older name of the law. That category includes some items legally designated as “firearms” for the purpose of the law; those items include silencers (suppressors), some types of disguised firearms, and devices intended to change the nature of a firearm, such as a converter to make a machinegun from a semi-automatic rifle.

The Special Occupational Tax (SOT) is a category of tax required for importing, dealing in, or manufacturing, firearms that are controlled under Title II of the Gun Control Act. The three kinds of SOT are referred to using the term “Class”. That the SOT has been paid is indicated by a tax stamp (a literal paper stamp) which is attached to the FFL, so an SOT can only be paid by someone who already has an appropriate FFL. Here are the lists:

Federal Firearms License:

Type 1 – Dealer in Title I firearms.
Type 2 – Dealer in Title I firearms doing business as a pawnbroker.
Type 3 – Licensed collector of Curios and Relics (but not a dealer).
Type 6 – Licensed maker of ammunition and reloading components other than Armor Piercing ammunition.
Type 7 – Manufacturer of Title I firearms, ammunition and ammunition components, but not Title II firearms, Destructive Devices, or Armor Piercing ammunition.
Type 8 – Importer Title I firearms and ammunition.
Type 9 – Dealer in Title I firearms, including Destructive Devices but no other Title II items.
Type 10 – Manufacturer of Title I firearms, ammunition and ammunition components, including Destructive Devices, but no other Title II items and not Armor Piercing Ammunition.
Type 11 – Importer of Title I firearms, ammunition and Destructive Devices, but no other Title II items.

Special Occupational Tax:

Class 1 SOT - Importer of Title II (NFA) firearms.
Class 2 SOT – Manufacturer of Title II firearms.
Class 3 SOT – Dealer in Title II firearms.

To obtain a Class 1 SOT stamp, the applicant must have a Type 8 or 11 FFL.
To obtain a Class 2 SOT stamp, the applicant must have a Type 7 or 10 FFL.
To obtain a Class 3 SOT stamp, the applicant must have a Type 1, 2, 7, 8, 9, 10, or 11 FFL.

Jim