ATF Reverses 50 Years Of Agency Practice to Go After Home Made Gun Makers

The New Year has brought new action from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), who published ATF Rul. 2015-1 on January 2, 2015. In this new ruling, ATF reverses its longstanding position that persons who machine unfinished receivers on behalf of a customer are not required to have manufacturer’s licenses. The ruling can be found on ATF’s website here. I. Background The Gun Control Act of 1968 (GCA), 18 U.S.C. Chapter 44, requires persons who engage in the business of importing, manufacturing, or dealing in firearms to obtain a license from ATF. The term “manufacturer” is defined in 18 U.S.C. § 921(a)(10) as any person engaged in the business of manufacturing firearms or ammunition for purposes of sale or distribution. The term “dealer” is defined by 18 U.S.C. § 921(a)(11)(B) and in ATF’s regulations at 27 C.F.R. § 478.11 to include “any person engaged in the business of repairing firearms or of making or fitting special barrels, stocks, or trigger mechanisms to firearms…” This type of dealer is commonly referred to as a “gunsmith.” The marking requirements of the GCA apply to firearms imported by a licensed manufacturer or manufactured by a licensed manufacturer. 18 U.S.C. § 923(i). Firearms altered or manufactured by a licensed dealer/gunsmith are not subject to the marking requirements. Prior to issuance of Rul. 2015-1, ATF took the position that persons who repair, alter, or manufacture firearms from parts supplied by a customer are not required to obtain a manufacturer’s license. ATF allowed such activities to be accomplished with a gunsmith/dealer license on the basis that there was no sale or distribution of the firearms that were altered or manufactured...more