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MGM Tactical
09-15-2010, 4:29 AM
Received a complete lower a couple days ago from Spikes. The lower was ordered by customer and he called us to see if we could transfer it, no prob. He shows up last night to do DROS and I look at his ID and he is only 20. I told him its a no go, he must be 21 and I would look into our options today. What are our options gentlemen? Could we order an upper and put it on and then sell it as a rifle? Its entered in our A&D as a receiver, so was'nt sure. Thanks in advance

Quiet
09-15-2010, 5:10 AM
If you, as the FFL, install a completed upper to the lower, you will be considered manufacturing. You need a 07-FFL to do this.
If you do it as a non-07-FFL you'll get dinged by the BATFE, when you get audited.

Two options...
(1) The 20 year old's parent/grandparent can recieve (DROS/4473) the lower and after the 10 day wait, intra-familial gift the completed lower to the 20 year old.
(2) You hold the completed lower reciever, until the 20 year old turns 21 and then transfer (DROS/4473) it to him.

tenpercentfirearms
09-15-2010, 6:07 AM
Yeah, you technically can't build firearms.

Having a parent come in is probably the best bet.

Now, I have sold complete rifles to under 21ers before and as soon as they took possession, they turned around and sold the upper right back to me. Then later on they came in and bought it back when the had the money.

In the end the kid should have done his research.

MGM Tactical
09-15-2010, 6:41 AM
Thanks for the help guys. Just a couple more questions:

1. It appears this 20 year old paid using a credit card in his name, thus making him the actual buyer of the firearm in terms of a monetary transaction. Does this have any bearing on his father/brother completing DROS and then gifting the lower through familial transfer. Is this considered a straw purchase because the 20 year old can't legally do the DROS.

2. You mentioned a father/grandfather doing the DROS and then gifting, what about a sibling who is over 21? Is this legit?

Thanks for helping out the FNG!

MGM Tactical

jtmkinsd
09-15-2010, 8:49 AM
Thanks for the help guys. Just a couple more questions:

1. It appears this 20 year old paid using a credit card in his name, thus making him the actual buyer of the firearm in terms of a monetary transaction. Does this have any bearing on his father/brother completing DROS and then gifting the lower through familial transfer. Is this considered a straw purchase because the 20 year old can't legally do the DROS.

2. You mentioned a father/grandfather doing the DROS and then gifting, what about a sibling who is over 21? Is this legit?

Thanks for helping out the FNG!

MGM Tactical

1. No, it doesn't matter that he paid for it. In effect, he purchased a lower for his dad (completely legal). His dad does the DROS, then at a later date can gift it to his son. Both transactions are done through DOJ (DROS and intrafamilial transfer form) so they're happy.

2. His father would have to DROS if he wants to do intrafamily transfer later because siblings cannot do that type of transfer. It has to be a verticle (up and down family tree only) transfer, father to son/grandfather to grandson