Gunsmiths vs. Gun Manufacturers: What's the Difference?

The U.S. firearms manufacturing and sales industry is worth approximately $30 billion, so it’s no surprise that thousands of businesses and tens of thousands of individuals manufacture, sell, modify, and repair guns. They range from massive corporate gun manufacturers to gunsmiths who focus on minor repairs and aesthetic modifications. In fact, the distinction between gunsmiths and gun manufacturers is one of the most important in the firearms industry.

It’s important because both gunsmiths and gun manufacturers need a Federal Firearms License (FFL) issued by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (the ATF). But a gunsmith only needs a Type 1 dealers’ license, whereas a gun manufacturer needs a Type 7 manufacturers’ license, which carries more onerous firearms identification and other requirements.

It’s sometimes hard to draw a clear line between gunsmithing and gun manufacturing, so let’s take a closer look at what they do.

As you might expect, a gun manufacturer makes or modifies firearms for sale and distribution. They buy or make
gun parts and use them to construct functioning firearms. They then sell or distribute those guns to their customers. A business or individual might also be considered a manufacturer if they buy existing firearms and modify them, such as drilling the receiver for a scope, before selling or distributing them.

A gunsmith, in contrast, works with firearms in a way that does not meet the official definition of manufacturing. A gunsmith receives guns — receivers, frames, and so on — that are owned by their customers. They repair, decorate, upgrade, replace parts, or otherwise modify the gun and then send it back, charging the customer for labor and parts. They work on guns owned by their customers; therefore, they don’t sell and distribute the firearms, so they are not considered gun manufacturers.

However, if a gunsmith were to buy firearms and then repair or modify them, later selling or distributing them, they would be considered a gun manufacturer. They would therefore need a firearms manufacturer license. The critical factor here is whether the gunsmith owns and then sells or distributes the guns in the course of their business. If they do, they are a gun manufacturer.

The
ATF’s guidance puts it like this:

“If the person is performing such services only for a customer on firearms provided by that customer, and is not selling or distributing the firearms manufactured, the person would be a “dealer” as defined by 18 U.S.C. 921(a)(11)(B) and 27 CFR 478.11, requiring a dealer’s license, assuming the person is “engaged in the business” as defined in 18 U.S.C. 921(a)(21)(D) and 27 CFR 478.11 (i.e., “gunsmithing”).”

This is a complex legal issue, and you should read the
ATF’s definitions and
firearms licensing FAQs, as well as consulting a legal professional with gun licensing expertise. In short, gunsmiths need a Type 1 dealer’s FFL. As explained in the quote above, they are considered dealers and not manufacturers. However, gun manufacturers and dealer-gunsmiths whose activities meet the definition of a manufacturer require a Type 7 FFL.

Huyett stocks a comprehensive selection of firearms fasteners for gun manufacturers and gunsmiths, including dowel pins, spring pins, snap rings, flange bearings, and e-clips. To learn more, visit our
Firearms Manufacturing Support page or
contact a Huyett customer service representative for engineering support or information about custom firearms part manufacturing.

Huyett stocks a comprehensive selection of firearms fasteners for gun manufacturers and gunsmiths, including dowel pins, spring pins, snap rings, flange bearings, and e-clips. To learn more, visit our Firearms Manufacturing Support page or contact a  Huyett customer service representative for engineering support or information about custom firearms part manufacturing.