Type 07 FFLs
Manufacturer of Firearms & Ammunition
What is a 07 FFL?
A Type 07 FFL is a federal firearms license that authorizes a business to manufacture firearms and ammunition, but not destructive devices. The license costs $150 for a three-year term and requires ATF Form 7, fingerprints, a background check, and an in-person interview with an Industry Operations Investigator.
Type 07 FFL Requirements
Obtaining a Type 07 Federal Firearm License involves meeting several federal and state requirements, as well as completing ATF Form 7.
- Be a United States citizen or legal permanent resident
- Be at least 21 years old
- Have approved business premises for conducting FFL activities
- No felony convictions or misdemeanor crimes of domestic violence
- Submit fingerprint card to the ATF
- Undergo a background check that assesses all responsible people in your business, including sole proprietors, partners, managers, and leadership
- Complete an in-person interview with an ATF Industry Operations Investigator (IOI) at your business premises
- ATF confirms that all applicants comply with federal firearms regulations under the Gun Control Act and National Firearms Act
State laws vary by location and create local requirements in addition to federal rules. Many states have additional requirements such as zoning regulations, compliance with local laws, and approvals from local law enforcement and government agencies.
Certain states may also require additional licenses for manufacturing ammunition components. Applicable gun laws may restrict activities like manufacturing armor-piercing ammunition, so confirm state and local requirements before applying.
Advantages and Disadvantages of a Type 07 FFL
An FFL Type 07 can be paired with a Class 2 Special Occupational Taxpayer (SOT), which extends the FFL holder’s ability to manufacture restricted NFA items like machine guns and short-barreled rifles. The Class 2 special occupational tax is $1,000 per year, or $500 for businesses that qualify for the reduced rate (gross receipts under $500,000 in the prior taxable year).
This firearm manufacturing license is not too expensive. The application fee costs around $150, making it affordable for most firearm manufacturers wanting to make guns or parts. There is no limit on the number of firearms or parts you can manufacture, which provides flexibility for businesses in the firearms industry. There is also no longer an ITAR registration requirement for most semi-automatic firearms manufactured under a Type 07 FFL, since the 2020 export control reform moved them off the USML. ITAR may still apply to certain exports.
Pairing a Type 07 FFL with a Class 2 SOT offers the firearm manufacturer more freedom in what they make and sell. This benefits businesses looking to expand their product offerings to include NFA firearms.
Class 2 vs Class 3 SOT: Which Does a Type 07 Need?
A Type 07 FFL pairs with a Class 2 SOT, not a Class 3 SOT. A Class 2 SOT allows FFLs to extend the power of their FFL license type to manufacture restricted firearms and NFA items such as short-barreled shotguns, barrels, or receivers. This SOT class pairs with:
A Class 3 SOT is different. It applies to FFL holders who buy, sell, or transfer NFA firearms as dealers, not manufacturers. Class 3 SOT pairs with:
The big difference is that a Class 03 SOT applies to those who buy and sell firearms (an FFL dealer) and a Class 02 SOT is for those who manufacture firearms or ammo and want to expand the list of what they can legally manufacture.
How FastBound Can Help Type 07 FFLs
One of the biggest hurdles for firearm manufacturers is the process of documenting the acquisition, disposition, and reacquisition of firearms. With FastBound, the system efficiently manages these tasks, reducing the time and labor you would need to invest in doing this manually.
For gun dealers with a Type 07 FFL, it’s important to document parts or materials that eventually become high parts and firearms, like a lower receiver. FastBound simplifies this process, keeping bound book records accurate, which supports FFL dealer compliance with federal law and ongoing compliance obligations.
With FastBound, your firearms business can maintain compliance without the massive amount of time it would take to perform accurate documentation and legally track inventory, guns, sales, and transfers across interstate commerce. We give you the peace of mind that your information is ATF compliant, so you can focus on running your business.
How Can FastBound Help?
FastBound Features for Type 07 FFLs
FastBound gives Type 07 manufacturers the tools to stay ATF-compliant from raw materials through finished firearm transfer. Every feature works inside one platform, so manufacturing operations meet federal law without juggling separate systems.
- Electronic A&D Bound Book built for ATF-required recordkeeping
- Electronic 4473 with built-in validation
- Audit trail tracking for every edit, user, and entry
- Automatic daily backups and cloud storage
NICS Direct integration allows dealers to submit background checks directly through FastBound without leaving the platform
Ready to See How FastBound Can Streamline Your Compliance Efforts?
Join thousands of FFLs who trust FastBound to keep them protected and compliant.
Try for Free!