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C&R License & ATF Form 5320.20


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Waiting on a call back from an ATF examiner to confirm this, but in looking at the regs I believe I understand it. Having a valid C&R license you can take a C&R machine gun across state lines without having to file form 5320.20, assuming that the machine gun is legal in that state. Does anyone have any experience with this? TIA

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1 hour ago, tommyboy said:

Your understanding of the regs is correct. Page 82, section 13.8 of the ATF NFA Handbook has what you’re looking for.

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Thank you - that was the exact section I was looking at, the C&R license call out specifically leaves very little room for misinterpretation, but wanted to make sure I wasn’t off. 

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If it’s a transfer from an individual seller to an individual buyer who has a C&R FFL and the gun qualifies as C&R, it would transfer on a paper form 4. It doesn’t matter if the buyer is in the same or different state and the seller does not need to have a C&R FFL, only the buyer. When the approved form 4 is received by the seller they can ship the gun along with the form directly to the buyer, no need to involve a dealer. If the seller is a dealer/SOT holder, the gun can transfer directly to a C&R holder either in state or out. However, many dealers will not transfer directly to a C&R holder so it’s not uncommon for a dealer in a different state to form 3 (tax free, dealer to dealer transfer) the gun to a dealer in buyer’s state first. 

Edited by tommyboy
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That's the best explanation I have ever had!!  One more question please.....At what point would one buy the tax stamp in that process?  And, does the machine gun transfer to a form 4 on the C&R ffl?

Edited by 357hipower
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When the form 4 is completed, it’s mailed to ATF at the the address listed on the top of the form. Included with the three copies of the form 4 are two finger print cards and a check for $200 for the tax stamp (can also put a CC number on the form). Note the fingerprint cards must be the specific ones provided free of charge from the ATF because they have a preprinted address on them which routes the cards to the correct agency for the background check.
 

The gun doesn’t transfer to a form 4 but rather the form 4 is the paperwork required to transfer the gun to you. And it doesn’t transfer to your C&R FFL. The C&R just enables you to transfer C&R guns directly from an individual or dealer out of state. Additionally, the C&R allows you to transport C&R guns across state lines without having to file a form 5320 with the ATF.

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