Question about Laws concerning buying parts kits and building

[whiskeytangofoxtrot]

I've had this argument with a buddy a few times. He informs me that an FFL will not sell anyone more than, let's say one AR lower. He insists that it's illegal to build one than one rifle a year. He also told me that you can build one, but you can't sell it until three years is up.

I've argued on this with him time and time again, and asked where it states the rules of parts kits, lowers, and building. I never get any proof. Does anyone know the answer? *I'm digging for the laws now.* Any help is appreciated.

 

[Paul]

You can buy as many lowers as you want. Many have done it.

 

[techres]

The key is that you cannot be building to sell, they must be for you. I know of a guy who bought 30+ lowers in a month and got a visit from the ATF who simply reminded him that if he wanted to be in the selling business he had to file with them.

He promised they were for him and they shook hands and were on their way. But only after they said, "If we come back in a few months, you'll still have all those lowers right?"

People buy lowers all the time. In ones, twos, threes, etc. So long as they are for you, there is no problem.

Your buddy is simply wrong. As a matter of fact, buying multiple lowers at the same time is kinda the norm right now!

 

[indyjoe]

Better than buying multiple uppers and getting a visit from the DEA... Baah Dum Bump.

 

[ATM]

Better than buying multiple uppers and getting a visit from the DEA... Baah Dum Bump.

That right there's funny.

 

[melensdad]

I've had this argument with a buddy a few times. He informs me that an FFL will not sell anyone more than, let's say one AR lower. He insists that it's illegal to build one than one rifle a year. He also told me that you can build one, but you can't sell it until three years is up.

I've argued on this with him time and time again, and asked where it states the rules of parts kits, lowers, and building. I never get any proof. Does anyone know the answer? *I'm digging for the laws now.* Any help is appreciated.

I think you are arguing APPLES -vs- ORANGES.

Your friend is, I believe, correct. But he misstates or confuses the point he is trying to argue.

You are, I believe, correct.

However, you are arguing 2 different legal points. You are arguing that you can buy a transferrable lower and build and sell a rifle. You are arguing that you can do that as often as you wish.

Your friend is arguing, if I understand him correctly, that he is taking a raw chunk of metal and milling it into a rifle receiver and turing an non-transferred piece of raw metal into a transferrable receiver. I know it is legal to build a rifle from scratch, I know it is also legal to ultimately sell such a rifle that is build from non-transferrable raw materials, but I do not know the specifics of how to accomplish said transfers or the limits on them. I just know there are some limits. Basically the limits are designed so a 'hobbyist' is not considered a 'manufacturer' or visa-versa.

Now if your friend is saying you can't buy more than 1 already milled, legally transferrable lower at a time then he is wrong. Don't ask how I know.

 

[karlsgunbunker]

If the lower/Receiver is 100% and purchased through a FFL you can sell it any time.
If you build from a flat or 80% receiver, I believe you must add a S/N and register it with the ATF Before Selling. There is a form and a tax involved.

 

[whiskeytangofoxtrot]

Thanks guys. Those were the points I was trying to tell him. Guess he is too hard headed. Seems a gun shop owner has told him this stuff and he believes him over me. No worries, thanks for the replies.

 

[VUPDblue]

If you build from a flat or 80% receiver, I believe you must add a S/N and register it with the ATF. There is a form and a tax involved.

You can build a rifle out of a flat or out of an 80% receiver for your own use, and there is no requirement that it be serialized AT ALL. The only caveat is that you are not allowed to sell it or transfer ownership.

 

[dburkhead]

You can build a rifle out of a flat or out of an 80% receiver for your own use, and there is no requirement that it be serialized AT ALL. The only caveat is that you are not allowed to sell it or transfer ownership.

What about in an estate transfer (not that it would matter to me, of course)? There seem to be a number of exceptions to various rules when someone inherits a firearm (things like transferring out of state).

 

[karlsgunbunker]

You can build a rifle out of a flat or out of an 80% receiver for your own use, and there is no requirement that it be serialized AT ALL. The only caveat is that you are not allowed to sell it or transfer ownership.

You are correct.
I edited my post for clarity.
I was talking about selling the rifle after building.