Media Contact: Georgia Seltzer, (202) 822-8200 x104, gseltzer@vpc.org
Federal Gun Manufacturing Licenses Can be Used to Evade Gun Laws, Buy Guns in Quantity at Wholesale Prices, and Undercut Restrictions on the Possession of New Fully Automatic Machine Guns
Washington, DC — Hundreds of Pennsylvania residents possess a federal license to manufacture firearms, yet relatively few actually produce any guns according to Pennsylvania’s Hidden Gun Manufacturers, a new study from the Violence Policy Center (VPC) as part of its ongoing Campaign for Gun Industry Accountability.
The license — known as a Type 07 Federal Firearms License (FFL) and issued by the federal Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) — offers privileges not granted to private citizens buying a gun. These include the ability to bypass background checks and buy and sell firearms in interstate commerce via common carrier (including bulk purchases at wholesale prices). In addition, by paying additional fees to the federal government, license holders can undercut the tight restrictions on the possession of new fully automatic machine guns. The study also offers quotes from the online cottage industry that aids private citizens in obtaining the license for personal use.
Unlike traditional commercial manufacturers, the licensed place of business of many Pennsylvania license holders is a suburban home, garage, or unrelated business — often hiding in plain sight.
Josh Sugarmann, executive director of the Violence Policy Center, states, “Hundreds of Pennsylvania residents have a federal license to manufacture guns, yet relatively few actually do. It’s long past time to find out how these hidden manufacturers are using or abusing the privileges associated with the license.”
According to ATF data analyzed by the VPC, in Pennsylvania in 2023:
- Eighty-two percent (603 of 732) of Pennsylvania Type 07 license holders did not report producing any guns that year.
- Of the Type 07 license holders who did report producing guns that year, 50 percent (65 of 129) produced 10 or fewer firearms.
- Combined, Type 07 license holders who did not report producing any guns and Type 07 license holders who produced 10 guns or fewer that year represented 91 percent of all Type 07 license holders.
- Forty percent of non-manufacturing license holders appeared to be located in residential homes.
- From 2020 to 2024, the number of Type 07 FFL holders in Pennsylvania rose 57 percent — from 480 to 752. Nationally during this same period, the number of license holders increased 40 percent — from 14,678 to 20,566.
Federal oversight of these license holders is minimal. In fiscal year 2024, ATF firearm compliance inspections were conducted on only eight percent of all types of FFL holders (9,696 out of 127,784). In addition, according to a recently released Department of Justice (DOJ) budget summary, 541 of ATF’s Industry Operations Investigators (IOIs) — the personnel responsible for carrying out these inspections — are slated to be eliminated by fiscal year 2026.
The study warns, “With federal oversight significantly diminished, any regulatory effort will have to be at the local or state levels. This includes any and all zoning laws, business licensing requirements, related fees, and regulations.”
In addition to the photos contained in the study presenting examples of Type 07 license holders (both manufacturing and non-manufacturing) who appear to be operating out of homes in residential neighborhoods, the VPC has developed an online interactive mapping tool that allows users, entering their home or any other address, to find nearby FFL holders (both gun manufacturers or dealers) — including a Google Earth photo where available of the license holder’s place of business.
The study contains both state and federal recommendations.
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The Violence Policy Center is a national educational organization working to stop gun death and injury. Follow the VPC on X/Twitter, Facebook, Instagram, and BlueSky.