May I consign my NFA items to an FFL/SOT?


One of the more common questions I am asked is whether the owner of an NFA item may consign it to an FFL/SOT to facilitate a sale.

The answer, like so many where the NFA is concerned, is both “Yes” and “no.

Let me explain …

Yes” a seller may send pictures and details of an NFA item to an FFL/SOT who will then attempt to facilitate a sale.  If the resulting buyer lives in the same state as the seller then they may do a private Form 4 transfer between them.  If the buyer is in another state then the seller must do a Form 4 transfer to an FFL/SOT in the buyer’s state of residence who will then do a Form 4 transfer to the buyer.

But “no” you may not deliver the NFA item itself into the possession of an FFL/SOT without doing a Form 4 transfer and paying the accompanying transfer tax.

I have heard rumors that some FFL/SOTs will take an NFA item in for ‘repairs’, which does not require a transfer tax, and then show the item to prospective buyers while it is waiting to be ‘repaired’.  I would not suggest using such a tactic to skirt the transfer tax requirement since the ATF notoriously lacks a sense of humor where tax evasion is concerned.

I should also note that these same rules apply equally to items owned by individuals or by an NFA Trust.

For more information about NFA transfers, see Chapter 9 of the ATF NFA Handbook.

This entry was posted in ATF, BATFE, Consignment, FFL Issues, Form 4, Interstate Firearm Transfers, NFA Transfers, NFA Trusts, Non Resident Issues. Bookmark the permalink.