Firearms Fight (BATFE Gunsmith Case)

TheOutdoorWire.com ^ | 04/03/06 | Outdoor Wire

[Copernicus]

When does customization of a firearm become manufacturing? That seemingly simple question is occupying the near undivided attention of the firearms industry. Observers say it is a question with the potential to become a firestorm that could put custom gunsmiths out of business; if not behind bars.

The controversy began with a Bureau of Alcohol, Tobacco & Firearms inspection of Competitive Edge Gunworks in Bogard, Missouri. BATF and tax agents appeared and began examining the company's records. When they finished, owner Larry Crow was told he potentially faced felony charges for manufacturing firearms without a license.

Crow says he was stunned.

Agents went on to tell him that his manufacturing status would mean liability for federal excise taxes - and penalties - from the beginning of his business. There is, they told the thunderstruck Crow, no statute of limitations for failing to file Federal Excise Taxes, but there were serious penalties.

"I'm confused, " an obviously shaken Crow told The Outdoor Wire during a telephone conversation last Thursday, "and more than a little concerned."

Since the BATF visit, Crow hasn't done any gunsmithing, but has initiated the licensure process necessary to change his classification from gunsmith to manufacturer. He also says he's agreed with the BATF to settle the whole matter as quickly as possible. In the meantime, Crow says he's struggling financially, but despite the costs of waiting for his licensure process to be completed, he told The Outdoor Wire "I'm not doing any more work until the manufacturing paperwork's complete."

Whether Crow's is a single case brought by an overzealous agent or the opening shot of a BATF campaign against gunsmiths has the entire firearms industry abuzz.

[Copernicus]

Followup to the previous post BAFTE Jihad Against Gunsmiths.

This is a continuation of the "reinterpretation" of the rules that put thousands of kitchen table dealers out of business in the 90's.

Now they eliminate "kitchen table gunsmiths"

Soon there will be no one left to defend the 2nd Amendment.

Best regards to all,

[kerryusama04]

How can it be "manufacturing" if the gun leaves with the same serial number it bore when it leaves.

[umgud]

After he gets his manufacturing license, Bloomberg's NYC will sue him into bankruptcy.

[kerryusama04]

Woops, same serial number when it leaves ans when it arrived.

[Supernatural]

I read the whole story.

In DPMS's (Panther Arms) catalog, it states that if they build a gun for you from a receiver and the other parts required, you are responsible for a 21% excise tax on top of what they charge you for building the gun and the parts.

Every gun a manufacturer builds has an excise tax levied on it before it leaves the factory.

I have never heard of "no statute of limitations" on anything.

The BATFE does what is pleases. That is why they are universally hated by all honest people in the gun world.

[kerryusama04]

Yeah, BATFE (IEIO) is out of hand. I would say get rid of it, but then these guys would spread like a cancer. There really shouldn't be enough laws surrounding guns, tobacco, and booze to warrant their own police force.

[Anti-Bubba182]

" BATF regulations appear to offer a solid definition of manufacturing. It would appear, says experts, that a new, and considerably narrower definition is being used against Crow. A definition that has the potential to make virtually any change, from changing parts inside the lockworks to re-barreling or changing firearm calibers enough to constitute manufacturing. Enough, for example, to make any gunsmith's show samples or writers' samples "manufactured" and subject to taxes and penalties.

Should that become the new working definition for ATF and IRS enforcement agents, gunsmiths we've contacted the effect would be immediate and would bankrupt what they consider "one of America's remaining cottage industries.""

So, if your gunsmith put in a new barrel in your firearm, this is manufacturing. Outrageous and crazy.

[yarddog]

You can be nearly 100% positive this is being encouraged by the administration. President Bush is making it clear what he thinks of us gun owners, just like his Father did.

It cost his Father re-eleciton but Jr. doesn't have to worry about that so he is just letting the jack boots loose.

[Anti-Bubba182]

As it used to be, you had to make a firearm receiver from scratch to be a manufacturer.

[MarkL]

I put some Hogue grips on a revolver... Does that mean that I'm a manufacturer now?

Mark

[Anti-Bubba182]

Isn't the excise tax on the original receiver?

[joesnuffy]

Every gun a manufacturer builds has an excise tax levied on it before it leaves the factory.

I heard...even every stripped receiver (the serial numbered portion of the gun legally identifying it as a gun)also has the excise tax levied built into it's price at the time of purchase...

An additional excise tax would not be legal?...guess they will have to call it something else...

[Ursus arctos horribilis]

This is all a bit odd? We in the reproduction of traditional muzzleloaders such as flintlocks just got this yoke thrown off for small gunsmiths assembling guns from parts.

Hope the cartridge guys have the same luck.

[middie]

We should all seriously regret our votes in 2000 & 2004 and resolve to never again elect a non-articulate dullard who surrounds himself with questionable characters like Carl Rove and is clearly unable to think a coherent and meaningful thought on his own.

[Hardastarboard]

I wouldn't shed a tear if I see a BATFE killed in the line of duty. The actions taken by them are just sickening. How is it in America a law officer can just harass an American who has broken no laws?

Simple. This isn't America any more. The City of San Francisco can pass a resolution condemning the Catholic Church, the Federal Government refuses to even consider enforcing immigration laws that they legally and lawfully passed, you can't smoke out of doors in some cities, the State of California is considering passing a law that mandates teaching gay history in their schools . . .

I could go on, but I won't. This isn't America any more. Get used to it. It's going to get worse. The fools at DU are right, this country is beginning to turn into a dictatorship, but Bush isn't the reason (he sure as hell isn't doing anything to stop it, either). Even a stopped clock is right twice a day.

I won't even comment on your first sentence. I like being allowed to warm myself by Mr. Robinson's fireplace and don't want to get thrown out.

[yarddog]

I am pretty disgusted with Bush but I don't think he is a dullard nor do I think he is incapable of coherent or meaningful thought.

I pretty much knew he was going to do what he has done but was sick of the Clinton gang. I also hoped he would prove me wrong. Instead he has been a little worse than I expected.

[mountn man]

And the alternative was Gore and Kerry. Yeah right.

[joesnuffy]

Looks like another one of their 'object lessons'...so others
take the hint and bail before they loose their livelihood homes and families...

Of course with filling the country with illegal alien criminal invaders...rapists,murderers,drug death merchants,home invasion specialists and other assorted terrorists...

The last thing they want is armed Americans to meet them with resistance...

If we could defend ourselves against what they are about to throw at us...we would not be willing to trade security for liberty...as Ben Franklin warned...

Those who trade liberty for security...deserve neither.

Thesis-Antithesis-Synthesis......Game-Set-Match

imo

[Anti-Bubba182]

It is outrageous as described. The excise tax should be on a receiver if sold separately. I suppose the angle is to extract a bigger excise tax from a completed custom firearm which would cost a lot more than a bare receiver.

I can't tell if the BATF is saying the customization of a customers gun that they already had constitutes a new firearm for tax purposes. Also suppose a person bought a receiver and built a gun for their own use, would they be liable for the Tax.