NFA Firearm transfers are significant events, as each and every change in ownership/possession requires a transfer and a certain form and process.
For standard GCA firearms, the only “transfers” for ATF Compliance purposes are the transfer of the firearm from one FFL to another and the transfer from an FFL to a non-FFL. After that, further changes in possession and ownership are not regulated by the federal government as long as they occur in the same state and the is no reason to know or believe that the recipient is a prohibited person.
With NFA Firearms, however, EVERY transfer is a transfer event for ATF Compliance purposes.
If an NFA Firearm is made by an individual (non-FFL), Form 1 must be submitted and approved prior to the NFA Firearm being made (or even having all the NFA Firearm parts together).
When an NFA Firearm is made by an FFL, Form 2 is submitted to notify the ATF the firearm was manufactured, and it is acquired on the manufacturer’s books. After that, another NFA form must be approved by the ATF prior to transferring that firearm to any other entity/person.
It is important to note that NFA Firearms are still firearms and must be acquired and disposed of on to and off of your A&D bound book like any other firearm.
Also, do not start any NFA Form for transfer until you are sure that the NFA Firearm is lawfully in your possession. It is not uncommon for NFA transfer forms to be rejected by the ATF because they have no record of it being in your inventory in the first place – every move of the NFA Firearm, including its creation, must be on file with the ATF for any NFA transfer form to be approved.
We recommend using the eForm system whenever possible. We discuss registering with eForms in lesson 4.6 – eForms.
For an FFL to FFL (must be an SOT) transfer, Form 3 is needed.
For an FFL to Customer (non-FFL) transfer, Form 4 is needed.
For an FFL to Government Entity transfer, Form 5 is needed.
All NFA Forms, except for Form 2 used by manufacturer FFLs, require prior approval from the ATF.
NFA Forms:
Form 1 – for non-FFLs to make their own NFA firearm
Form 2 – notification to ATF that an NFA Firearm was made by an FFL manufacturer
Form 3 – for transfers from FFLs to other FFLs
Form 4 – for transfers from FFLs to non-FFL individuals or companies
Form 5 – for transfer to government entities exempt from the FFL requirements
Let’s discuss each of these transfers by the activity.