[Anyone have BATFE copies of letters approving Stenlings?]

                    DEPARTMENT OF THE TREASURY
                Bureau of Alcohol, Tobacco and Firearms
                         Washington, DC 20226

                                                           E:CE:FT:CHB
                                                           3311

                              MAR 24 1997

[Name]
[Address]

Dear  :

This refers to your letter of February 16, 1997, in which you ask
about assembling a machinegun using a registered Sten receiver and
a Sterling parts set.

A Sten gun receiver is a firearm and a machinegun as defined in 26
U.S.C. section 5845(b) of the National Firearms Act (NFA).  It is
unlawful for anyone to make or possess a machinegun which is not
registered in accordance with the provisions of the NFA.  It is
unlawful for individuals to transfer or possess a machinegun which
was not lawfully possessed prior to May 19, 1986, as provided in 18
U.S.C. section 922(o).

You ask about having a qualified manufacturer assemble a functional
machinegun using registered Sten receiver and a Sterling
submachinegun kit.  Such assembly may be accomplished without
creating a new machinegun if the following guidelines are followed:

      1.   The entire Sten gun receiver should be used.

      2.   The Sterling barrel shroud from the parts set should be
           welded to the front of the Sten receiver.

      3.   The magazine well, pistol grip/trigger housing assembly,
           and ejection port deflector may be removed from the
           Sterling parts set and then installed directly onto the
           Sten receiver using the original Sten magazine port and
           ejection port.

                                 - 2 -

      4.   Weld the original rear end of the Sterling receiver onto
           the rear end of the Sten receiver.

      5.   Use a Sten gun bolt or alter the bolt handle position on
           the Sterling bolt to be compatible with the bolt handle
           slot in the Sten receiver.

The assembly and possession of a firearm as described above, using
a registered Sten gun receiver and a Sterling parts set as
described above would not be violation of the provisions of 18
U.S.C. section 922(o).  The serial number and other required
identification of the machinegun receiver must not be obliterated,
removed, changed or altered (26 U.S.C. section 5861(g)).  After the
alterations are performed, notification must be made to the
National Firearms Act Branch at ATF Headquarters reflecting the
changes made to the dimensions and description of the registered
firearm.

We trust that the foregoing has been responsive to your inquiry. 
If you have further questions concerning this matter, please
contact us.

                           Sincerely yours,

                               [signed]
                          Edward M. Owen, Jr.
                  Chief, Firearms Enforcement Officer

 

 

https://web.archive.org/web/20120826122914/http://www.titleii.com/bardwell/atf_letter16.txt

 

http://www.uzitalk.com/forums/archive/index.php/t-62012.html?s=2b8240e9fdc871e274c8cabd9e2658db

 

http://www.smallarmsreview.com/display.article.cfm?idarticles=3215

[Removing AOW from registry]

You could offer it for sale first, and give the buyer the option. If they don't want to receive it as an AOW, then transfer it as a Title I firearm and send NFA Branch a letter after the sale.

Yes you can interchange status if it remains yours.

[Looking for 07/02 to Convert AR15 to M16 Lower (Post-86)]

3 hours ago, The Lone Ranger said:

The person building the MG needs to register it and transfer.

I agree, but they already registered it. That's the only way to accomplish it without starting over. That's what I was trying to explain.

I'm sure there are FFLs who wouldn't touch it with a 10' pole.

Perhaps they'd do better asking ATF to cancel the F10? Not sure if they'll cancel it.

[Please explain out of state transfer 2x Form 4 and Form 4 C&R, options.]

4 hours ago, mike todd said:

funny thing about this thread, NOT ONE EXAMPLE OF A TAX FREE TRANFER OF A FORM 4 reg'td piece has surfaced since it started? I would think they would be lined up to help me "swallow" the fact?  I will add it might be possible for an old example on a form 4 held by a NEW LICENSEE to go to inventory tax free simply by getting the FFL, but then it would no longer be on a form 4, so we are back to SQUARE ONE it becomes reg'td on form 3 when on the books. and with that said, I AM OUT OF HERE!  CHEERS

I don't believe that's how it works.

If an individual who already owned NFA firearms (transferred to him on Form 4) became a FFL/SOT (as a sole proprietor), nothing has to be done to transfer them to the business. He is the business. If he sells one to another SOT, it now transfers on Form 3. I believe that's what johnsonlmg41 was talking about.

There is no Form 3 until he transfers it to another SOT.

Now if that same individual instead had a LLC, and the NFA firearms were all registered to the LLC (on Form 4), then he applied for and received a FFL/SOT in the name of the LLC, the scenario would be the same as above. In both cases, they're already owned by the entity which becomes the FFL/SOT, therefore no transfer has occurred.

But I don't think it's possible to have NFA on a Form 4 in your name (as an individual) then form a new LLC, apply for and receive FFL/SOT in the name of the LLC, and then transfer tax-exempt from you (as an individual) to your newly licensed LLC. You'd have to pay the $200 tax for each firearm transferred from you to your LLC.

 

That's why it isn't technically correct to say any NFA firearm is "on" a form.

The tax-exemption of any NFA transfer depends on 3 things:
status of the firearm (unserviceable/DEWAT, post-86 MG, etc.)
status of the transferor
status of the transferee

 

Another tax-exempt example would be a government agency acquisition. Everyone knows LE can buy from FFLs, but they can also buy a privately-held (on Form 4) NFA firearm from out-of-state. The private unlicensed owner would transfer the NFA firearm to the agency on Form 5 (tax-exempt), even though it came to that seller "on" a tax-paid Form 4.

[Looking for 07/02 to Convert AR15 to M16 Lower (Post-86)]

It would've been more appropriate for the agency to register them on Form 1 (tax-exempt).

Any FFL can log them in for gunsmithing. They do not have to hold a SOT.

If I was starting this project from scratch, I'd have used BCI Defense SQS-15 or Black Creek Precision F15 stripped lowers, since they require the least work.

Depending on the quotes you get, it may be cheaper for them to start over. One of the agency employees could push the handle on someone else's drill press. Wouldn't even need a FFL then.