Type 07 is the basic federal license required for individuals or businesses to manufacture firearms in the United States. What happens when these licenses are given to people that don’t need them?
That’s at the root of a new Illinois-focused study from the Violence Policy Center [VPC], a nonprofit advocacy group focused on gun violence reduction. It found that 82% (186 of 226) of Illinois’ Type 07 license holders did not report producing any guns in the year studied.
“So that's the first question: If they’re not making any guns, what are they doing with the license?” said Josh Sugarmann, executive director at the Violence Policy Center [VPC].
The VPC has some theories based on how the license can be used.
“That license grants the holder specific privileges. Of course, manufacturing guns. But also the ability to buy and sell firearms in interstate commerce, receive them via common carrier, buy guns at a discount and in unlimited quantities, and bypass the requirements that apply to common citizens who want to purchase firearms,” Sugarmann said.
In addition, by paying additional fees, license holders can undercut the tight restrictions on the possession of new fully automatic machine guns, according to VPC.
The VPC study includes an interactive map showing where Type 07 licensees are located around Illinois, including some in McLean County. VPC says many Illinois license holders are in suburban homes, garages, or unrelated businesses, “often hiding in plain sight.”
Sugarmann said obtaining and maintaining a Type 07 license is fairly easy– there are now over 20,000 nationwide– and that once granted federal oversight of these license holders is minimal.
“The most recent data shows that in 2024, ATF inspected only 8% of all license holders, including Type 07s. So if you think that the federal government is keeping an eye on those who have this license, that's not the case,” said Sugarmann.
In June, The New York Times reported that the Trump administration planned to cut 540 of the 800 inspectors who monitor federally licensed gun dealers. Sugarmann said that leaves it primarily up to Illinois to keep track of those carrying the license.
It has a head start. In 2019, Illinois enacted a comprehensive statewide package furthering regulating gun manufacturers and dealers.
“They’ve done a very good job so far, as far as the criteria they’ve laid out for the enhanced regulation,” Sugarmann said.
The VPC’s study includes recommendations to address the issue.
In Illinois, the state or local communities should use existing data to review who has these licenses, how they're using it, where they’re located, and if they're following zoning and business-licensing criteria, according to the VPC.
On the federal level, the VPC wants it to be harder to get a Type 07 license, and that the federal government should make sure those who get one “are engaged in the business of manufacturing firearms and to ensure they’re not getting the license for personal use.”
