What is a Type 07 FFL License?
A Type 07 Federal Firearms License (FFL) is the license required to operate as a manufacturer of firearms other than destructive devices in the United States. Unlike a standard dealer FFL Type (such as a Type 01 or Type 02), which allows retail firearm sales and FFL transfers, the Type 07 authorizes businesses to produce, assemble, and/or sell firearms that are not considered destructive devices.
Once a Type 07 license has been obtained, the business may also opt to become a Class 2 Special Occupational Taxpayer (SOT), granting authority to produce National Firearms Act (NFA) items such as short-barreled rifles, suppressors, and even machine guns (with proper compliance).
While the Type 07 opens the door to significant manufacturing activity, it comes with strict record-keeping, marking, tax, and compliance obligations. It is the backbone license for anyone planning to operate as a firearm manufacturer – large or small – in the U.S.
Type 07 FFL Application Requirements
Basic Eligibility Criteria
To qualify for a Type 07 FFL license, applicants must meet federal law requirements:
- Be 21 years of age or older (for individuals; entities must designate responsible persons who meet the same criteria).
- Be a U.S. citizen or legal permanent resident.
- Not be prohibited from possessing firearms under federal and state regulations (e.g., felony convictions, domestic violence prohibitions).
- Pass a criminal background check conducted by the FBI, which includes fingerprint and photograph requirements.
- Registration with DDTC, as necessary.
Required Documentation
Applicants must provide:
- A completed ATF Form 7 (Application for Federal Firearms License).
- A completed ATF Form 7 (Part B, Responsible Person Questionnaire) for all responsible persons.
- Photographs and fingerprints of all responsible persons.
- Proof of business formation (e.g., Articles of Incorporation, LLC operating agreements).
- Proof of ability to operate as a manufacturer (e.g. lease agreement, zoning, permit(s), licenses).
- Payment of the application fee: $150, valid for a three-year license period.
Location Requirements
A secure and compliant business location is mandatory:
- Premises where all business activities will be conducted.
- Zoning compliance with local ordinances for manufacturing firearms.
- ATF inspection access during regular business hours.
- Acceptable use permission, such as a lease or rental agreement, specifically allowing manufacturing and/or firearm sales.
Manufacturing Capabilities and Restrictions
A Type 07 FFL holder may:
- Manufacture firearms that are not destructive devices.
- Assemble firearm components into complete firearms and, with a Class 2 SOT, manufacture NFA items like suppressors, short-barreled rifles, and machine guns.
- Apply for export licenses under the State Department and register with the International Traffic in Arms Regulations (ITAR).
Restrictions include:
- Strict record-keeping requirements, including an Acquisition & Disposition (A&D) book specific to manufactured firearms.
- Mandatory marking requirements in compliance with ATF marking regulations.
- Mandatory non-duplication of serial numbers.
Ongoing Compliance Obligations
Record-Keeping Requirements
Type 07 FFL holders must maintain:
- Manufacturing records documenting each firearm transacted, including changes in form.
- A detailed A&D log for all firearms.
- Annual reports of firearms manufactured and exported, submitted to the ATF.
- Record retention as required by all federal, state, and local regulations.
- DDTC registration renewal.
- Tracking and remittance of necessary excise taxes.
Renewal and Ongoing Obligations
- License renewal every three years with updated documentation and fees.
- Continuous adherence to federal, state, and local laws.
- Timely updates to responsible persons with the ATF.
- Annual reporting and renewal of SOT or ITAR registrations (if applicable).
- Annual registration renewal with DDTC, as necessary.
- Annual AFMER submissions.
- Timely payments of excise taxes to TTB, as necessary.
How FFLGuard Supports Type 07 FFL Holders
Navigating the complex web of ATF regulations can be overwhelming for firearm manufacturers. That’s where FFLGuard steps in.
- Compliance Guidance: Ongoing support for manufacturing best practices, tailored to firearm businesses.
- Documentation Support: Access to industry-standard checklists, record-keeping templates, and SOPs.
- Regulatory Updates: Proactive alerts about ATF rulings, changes to federal law, and compliance deadlines.
- Manufacturer Service Plans: Specialized flat-rate plans for Type 07 manufacturers.
- Expert Access: Direct support from firearms attorneys and former ATF personnel who understand the firearms industry inside and out.
- Legal Representation: FFLGuard provides expert defense during ATF inspections and regulatory actions.
Ready to secure your manufacturing compliance? Contact FFLGuard today to learn how we protect firearm manufacturers.
Frequently Asked Questions
Yes, but you must also comply with all federal, state, and local retail sales requirements. For NFA firearms, a Class 2 SOT is required.
No. Only for NFA-regulated items such as suppressors, machine guns, and short-barreled rifles.
A Type 06 only allows ammunition manufacturing. A Type 07 allows the manufacturing of firearms other than destructive devices.
Yes, but it must comply with zoning ordinances, acceptable use documentation, and allow ATF inspection access. Many home-based FFLs face zoning issues and/or use restrictions that must be resolved before application.
No. Once the application fee is paid, it is non-refundable, even if the manufacturing license is not issued.
Yes, gunsmithing activities are included under Type 07 authority. This ffl type allows comprehensive firearm manufacturing operations, including custom work, repairs, and modifications that go beyond what’s permitted under standard licensed dealer authorities.