A recent study by the Violence Policy Center (VPC) revealed that although thousands of Americans hold federal licenses to manufacture firearms, very few actually produce guns. These licenses, known as type 07 federal firearms licenses (FFL), are issued by the ATF and allow holders to bypass certain requirements like background checks. Additionally, license holders can purchase firearms at a discount and in unlimited quantities from wholesalers.
The study also found that by paying extra fees, license holders can avoid restrictive regulations of the National Firearms Act of 1934, such as restrictions on fully automatic machine guns and firearm silencers.
The number of FFLs issued by the ATF has dramatically increased over the years, from 364 in 1975 to 18,784 in 2022, representing a more than 5,000% increase. This surge is partially driven by online sites offering kits to private citizens seeking federal licenses for personal use, often in their homes.
VPC’s executive director, Josh Sugarmann, highlighted the need to understand how these license holders are actually using their licenses, as the majority are not manufacturing guns. The Biden administration recently announced a new rule requiring more firearms dealers to run background checks on buyers at gun shows or other places outside brick-and-mortar stores, aiming to close a loophole that has allowed unlicensed dealers to sell guns without background checks.
Overall, the goal is to ensure that all dealers, both licensed and unlicensed, follow the same set of rules to enhance public safety and fairness in firearm sales.
