[Code of Federal Regulations]
[Title 27, Volume 2]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 27CFR479.88]

[Page 140-141]
 
            TITLE 27--ALCOHOL, TOBACCO PRODUCTS AND FIREARMS
 
   CHAPTER II--BUREAU OF ALCOHOL, TOBACCO, FIREARMS, AND EXPLOSIVES, 
                          DEPARTMENT OF JUSTICE
 
PART 479_MACHINE GUNS, DESTRUCTIVE DEVICES, AND CERTAIN OTHER 
FIREARMS--Table of Contents
 
                         Subpart F_Transfer Tax
 
Sec. 479.88  Special (occupational) taxpayers.

    (a) A firearm registered to a person qualified under this part to 
engage in business as an importer, manufacturer, or dealer may be 
transferred by that person without payment of the transfer tax to any 
other person qualified under this part to manufacture, import, or deal 
in firearms.

[[Page 141]]

    (b) The exemption provided in paragraph (a) of this section shall be 
obtained by the transferor of the firearm filing with the Director an 
application, Form 3 (Firearms), Application for Tax-exempt Transfer of 
Firearm and Registration to Special (Occupational) Taxpayer, in 
duplicate, executed under the penalties of perjury. The application, 
Form 3 (Firearms), shall (1) show the name and address of the transferor 
and of the transferee, (2) identify the Federal firearms license and 
special (occupational) tax stamp of the transferor and of the 
transferee, (3) show the name and address of the manufacturer and the 
importer of the firearm, if known, (4) show the type, model, overall 
length (if applicable), length of barrel, caliber, gauge or size, serial 
number, and other marks of identification of the firearm, and (5) 
contain a statement by the transferor that he is entitled to the 
exemption because the transferee is a person qualified under this part 
to manufacture, import, or deal in firearms. If the Director approves an 
application, Form 3 (Firearms), he shall return the original Form 3 
(Firearms) to the transferor with the approval noted thereon. Approval 
of an application, Form 3 (Firearms), by the Director shall remove 
registration of the firearm reported thereon from the transferor and 
shall effectuate the registration of that firearm to the transferee. 
Upon receipt of the approved Form 3 (Firearms), the transferor shall 
deliver same with the firearm to the transferee. The transferor shall 
not transfer the firearm to the transferee until his application, Form 3 
(Firearms), has been approved by the Director and the original thereof 
has been returned to the transferor. If the Director disapproves the 
application, Form 3 (Firearms), he shall return the original Form 3 
(Firearms) to the transferor with the reasons for the disapproval stated 
thereon.
    (c) The transferor shall be responsible for establishing the exempt 
status of the transferee before making a transfer under the provisions 
of this section. Therefore, before engaging in transfer negotiations 
with the transferee, the transferor should satisfy himself as to the 
claimed exempt status of the transferee and the bona fides of the 
transaction. If not fully satisfied, the transferor should communicate 
with the Director, report all circumstances regarding the proposed 
transfer, and await the Director's advice before making application for 
the transfer. An unapproved transfer or a transfer to an unauthorized 
person may subject the transferor to civil and criminal liabilities. 
(See 26 U.S.C. 5852, 5861, and 5871.)

[36 FR 14256, Aug. 3, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-48, 44 FR 55842, Sept. 28, 1979; T.D. ATF-271, 
53 FR 17551, May 17, 1988]