Originally Posted by winnre
The law says loss of C&R status is for military firearms only.
the ATF ruling says that it applies to .mil firearms (note that that ruling was in 1985 when many .mil firearms weren't 50-years old yet and were being imported as curios, not at relics). ATF has taken the position that it applies to domestic C&Rs as well and just send back your Form 1 saying that you need a DW permit for a modern SBx.
If you want a newly-modified C&R SBx bad, I guess you could sue ATF to approve your Form 1. That will probably be the only way to get this fixed.