ABSTRACT

In the United States, firearms manufacturing falls under either regulated or non-regulated activity. Licensed manufacturers are engaged in regulated activity, but private persons can manufacture their own firearms for personal use without needing to be licensed as a manufacturer. This right is predicated upon the idea that the made firearm will not be sold, transferred, or bartered away. The private, non-licensed person may also manufacture a regulated firearm as long as it is properly registered and payment of tax is made in advance of actually producing the theorized product. Some would argue that this would bring about a rise in self-made, and, therefore, unregulated firearm manufacturing would run licensed manufacturers out of business or, at the very least, cause a significant reduction in retail firearm sales, which is also a regulated activity. However, the government’s figures not only dismiss the theory, but it also shows an upward trend of licensed entities, while firearm sales overall experienced peaks and dips. One possible explanation of this scenario is an interest in non-licensed persons entering the industry for gainful purposes and seeking licensure to participate in commerce.