27 CFR Part 479.88

[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]