Temporary Storage of NFA firearms by 01- Dealer

[orionshooter]

Hi everyone ,

I have an 01 dealers license and have been asked to temporarily store NFA firearms for an individual. The firearms would be returned to the same individual when he returns to the US.

Is this permissible without the need to go through the SOT process? I believe it is is not necessary if the firearms are brought to me for repair but am wondering how the rules apply to strictly storage.

Thanks in advance for your advice.

[kidicarus13]

I'm not an attorney but maybe the repairs to his firearms could take longer than normal.

[Great-Kazoo]

If he / she has a trust they can add you to it, a BG check should be done. UNLESS he had you one there before 7/1 as an Appointment of Co-Trustee. You cannot have NFA items in your possession with out said paperwork. If they do not have a trust there could be legal ramifications.

If you want LEGAL info why not get it from the web site, a quick search of the ATF website can clarify it for you.
http://www.atf.gov/press/releases/2000/02/021800-openletter-nfa-repair-of-firearms.html

In order to avoid any appearance that a transfer has taken place, ATF strongly recommends that a Form 5 application be submitted for approval prior to conveying the firearm for repair. ATF believes this will provide protection to the parties involved as it will document the repair of the firearm and help ensure that a “transfer” did not take place. In addition, an approved Form 5 will assist Federal firearms licensees in establishing that their possession of the firearm is lawful. However, if no Form 5 application is used, ATF recommends that both parties document what type of repair is being performed. This may be done via work or repair order or other similar documentation.

Accordingly, Item I5 in the “Questions and Answers” section of ATF Federal Firearms Regulations Reference Guide 2005 (9/05), suggests that the owner obtain permission for the “transfer” of the NFA firearm by submitting a Form 5 application and that the gunsmith do the same for the return of the firearm.

Federal firearms licensees must record the acquisition and disposition of the firearm as required by Part 479, Title 27, Code of Federal Regulations.

[orionshooter]

http://www.atf.gov/press/releases/2000/02/021800-openletter-nfa-repair-of-firearms.html[/URL]

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That's always great advice GK but I'm also a believer in "trust but verify". I've read the material on the website but I like to confirm with people who have had actual experience as. well. After doing more research it seems like the easiest thing to do is to have the firearms brought to me in locked cases with the owner retaining the keys. In that scenario, any " friend " can hold the guns so long as they have no access and no FFL required. Anyone disagree?

[Great-Kazoo]

That's always great advice GK but I'm also a believer in "trust but verify". I've read the material on the website but I like to confirm with people who have had actual experience as. well. After doing more research it seems like the easiest thing to do is to have the firearms brought to me in locked cases with the owner retaining the keys. In that scenario, any " friend " can hold the guns so long as they have no access and no FFL required. Anyone disagree?

I do. with the new CO BG check, more than, IIRC 72? hrs is considered a transfer That law applies to NFA items as well. IF you're holding my low serial # Colt M16 and your house gets robbed, how do you explain it in your possession w/out any documentation from the owner and on your side . Not saying there's no loophole. However when it comes to NFA items, i'd err on the side of caution than not.

Went to have a few firearms engraved last month. The one doing it asked us to stay as he didn't 1) have an FFL, waiting for paperwork. 2) I didn't bring an Appoint of Co-Trustee to cover their butt.

Best way to know, call the NFA branch. which is what the 01 should do

[orionshooter]

Yep GK you are exactly right regarding any xfers exceeding 72 hours....BC is required. And this where the intersection of fed and state law makes things confusing. If I take the guns in as a friend under fed law....no problem but under state law it's considered a xfer requiring the check unless the receiver is an FFL in which case no check is required. But.....if I take the gun in using my FFL to avoid the state required check, I lose the "friend" status under fed law. Very messy.

As as to the other valid issue you raised, I would do nothing without comprehensive documentation.

BTW thank you for brainstorming this with me.

[Circuits]

If you don't want any transfer to have taken place, have your friend place the firearms in a locked storage container to which you don't have the key. The NFA firearms can then be stored without a transfer having taken place. This answer is also available in the NFA handbook, btw.

Probably best for the 01 not to store the container at his business premises.

[Great-Kazoo]

If you don't want any transfer to have taken place, have your friend place the firearms in a locked storage container to which you don't have the key. The NFA firearms can then be stored without a transfer having taken place. This answer is also available in the NFA handbook, btw.

Probably best for the 01 not to store the container at his business premises.

would you have or not have, some documentation [off business premises ] to CYA?

[Great-Kazoo]

If you don't want any transfer to have taken place, have your friend place the firearms in a locked storage container to which you don't have the key. The NFA firearms can then be stored without a transfer having taken place. This answer is also available in the NFA handbook, btw.

Probably best for the 01 not to store the container at his business premises.

would you have or not have, some documentation [off business premises ] to CYA? in case of the unexpected, robbery, fire, flood, catastrophic weather.

[orionshooter]

I don't think the "locked container to a friend" federal exception defeats the definition of "transfer" under CO state law as GK pointed out. The applicable state statute does not contain language characterizing a locked container as a non transfer.

The problem seems to be a classic Catch 22........it's not possible to take advantage of the federal provision without running afoul of state law. On the other hand, if you comply with state law, you lose the federal exception. Obviously this problem is only applicable to states with background check requirements.

[Circuits]

I'd argue that CO law does not require a bg check on firearms stored in a locked container, since the person storing them does not have access to them, and federal law is cool with it per ATF NFA FAQ.

Failing that option, CO state law still does not require a background check for retrieving firearms from an FFL sent for repairs, so given the disconnect between federal and state laws on storage vs non-storage, the 01 taking the items in on his bound book for repairs seems like it would meet both the state and federal requirements with the least hassle.

Otherwise, friend going overseas may need to rent a storage locker and keep his shit there - no transfer has taken place, and friend will have the fire/theft coverage of the storage place, or can take out insurance on the items while they're stored.