Type 7 FFL – What it is and How to Get One

A Type 7 FFL is one of 9 types of Federal Firearm Licenses which allows the FFL holder to manufacture firearms and ammunition as a business.

The Type 7 FFL is commonly called the “manufacturer’s FFL,” however, there are technically three different types of manufacturing license: 

• The Type 6 FFL is used for manufacturing ammunition only,
• The Type 7 FFL is used for manufacturing firearms and ammunition, and
• the Type 10 FFL can do everything the Type 7 FFL can but it can also manufacture Destructive Devices (a special class of NFA firearm that includes grenades, bombs, etc) and Armor Piercing Ammunition.

In addition to manufacturing standard firearms, the Type 07 FFL also allows for manufacturing a special class of firearms called “NFA Firearms” when the federal firearm licensee is also registered as a Special Occupational Taxpayer (SOT).

Effectively, a Type 7 Federal Firearms License can be used to manufacture all types of firearms and ammunition EXCEPT Destructive Devices and AP Ammo.

As a firearms attorney who has represented hundreds of FFLs against the ATF and who has taught 20,000+ people how to get their FFL, it really is my favorite license type to recommend because it also allows you to act as a firearms dealer (Type 01 FFL) and handle FFL transfers.

How to Get a Type 7 FFL

So, you’ve decided that the FFL license type you want to get is a Type 07 but you’re not sure how to get your FFL License.

At the simplest level, to get an FFL license, you’re going to fill out an FFL application (ATF form 7), select the FFL type you’d like, determine the appropriate FFL cost, and send the FFL application and fee (along with other things like photograph and fingerprints) to the federal firearms licensing center.  After a few weeks, you’ll get your first visit from the ATF where they’ll conduct their initial inspection and then determine whether you get your FFL.

You’ll be dealing with the ATF (Bureau of Alcohol, Tobacco, Firearms, and Explosives) because they oversee the firearms industry and the federal firearms licensing system created by the Gun Control Act of 1968.

Now, there is a bit more to it – especially if you want to make sure you’re set up the right way and stay out of trouble later. S, if you’d like some help along the way, I created an online FFL course that walks you through everything and makes the process of getting your own FFL business as quick and painless as possible.

I especially recommend it for those of you who want to make sure everything is done properly and don’t want to risk their livelihood or freedom over something like a stupid mistake.

Also, if you’re looking to also be a home based FFL or manufacture NFA firearms like machine guns – please pay extra attention to the rules (including things you may not have thought of but we cover in the course, like ITAR).

Manufacturing NFA Firearms

If you want to manufacture a special class of firearms called “NFA Firearms” or even sometimes “Title II Firearms,” then you’ll also need to be registered as an SOT.

If you’re interested in getting your FFL License and becoming an SOT also, then you should check out our FFL / SOT Course Bundle.

NFA firearms are those that are covered by the National Firearms Act of 1934 (but they are also referenced in the later Gun Control Act) and include the following types of firearms:

• Full-auto Machine Guns
• Short Barreled Rifles (SBR)
• Short Barreled Shotguns (SBS)
• “Any Other Weapons” (AOW)
• Destructive Devices (DD)
• Armor Piercing Ammunition (AP)

With a Type 07 FFL you can manufacture all of those but the last two (yes, you really can legally make a machine gunwith a Type 7 but there’s a LOT more to be aware of and do). 

However, in order to make these as an FFL, you must be registered as an SOT (Special Occupational Taxpayer).

Typically, a special federal tax is paid by firearm enthusiasts for an ffl transfer of an NFA firearm ($200 per transfer of silencers, SBR, and SBS and just $5 for AOWs) and then a waiting period follows for an application to be approved by the ATF. This also applies if you’re making one for yourself as an individual and using an ATF NFA Form 1.

However, with an FFL, you no longer need to have approval per item – instead, you simply notify the ATF after you’ve made an NFA firearm (even a machine gun).

Note: A Type 01 FFL firearm dealer would need an “LE Letter” and get approval for a transfer of a machine gun but a Type 07 FFL can just make one as needed/wanted.

There are three classes of SOT that an FFL can register as:

• Class 01 SOT is for Importers of NFA firearms
• Class 02 SOT is for manufacturers of NFA firearms
• Class 03 SOT is for dealers of NFA firearms

While I brought up Class 03 SOT, I’d like to mention a term that is often mis-used in our industry – there is technically no such thing as a “Class 03 Firearm.”  Instead, it is an NFA firearm because that same firearm was imported by a Class 01 SOT or made by a Class 02 SOT – most people just see the “Class 03” because it’s the dealer they’re buying it from. 

When registering as an SOT, the federal firearms licensee just pays a tax just once per year instead of per item for every item. 

Type 07 FFL License Cost

A type 7 FFL license for a manufacturer FFL costs $150 for both the initial license (it lasts 3 years) and each 3 year renewal afterward.

Compare this to the Type 1 dealer’s license which costs more for the first 3 years ($200) but it’s cheaper for each three year renewal ($90).

Of course there’s also the SOT registration cost (which can depend on the sot class and business revenue) which is typically $500 per year for unlimited NFA firearms (instead of $200 for each NFA item like a short barreled rifle). 

AUTHOR

Ryan Cleckner

Check out Ryan Cleckner 's Courses

Ryan Cleckner is a former special operations sniper and current attorney specializing in firearms law/ATF compliance and is a firearms industry executive (former govt. relations manager for NSSF, Vice President of Remington Outdoor Company, and a SAAMI voting board member).