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07 is a type 7 FFL which allows someone to manufacture title 1 firearms, and 02 is an SOT2(Special Occupancy Tax) which will allow him to manufacture NFA/title 2 firearms.
To get the 02 you have to have a type 7, or 10, FFL.
With an 07/02 he can legally manufacture/convert his AR-15 to fire full auto.
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