Dewat MP40 questions

[Bob K]

What form(s) would be used on a registered dewat MP40? I got a tip on one and I want to be sure it has the correct paperwork. Supposedly a little rough in condition. Ballpark value? Would I be correct in assuming that it could be re-activated if it has the proper paperwork?

TIA,

Bob K

[Black River Militaria CII]

Registered DEWATS need to transfer by tax exempt Form 5. ATF vets every new application against the NFRTR and the original registration information, so if an MG is currently registered by F5 as deactivated, the correct paper trail is by tax exempt F5 to buyer's dealer and then tax exempt to the new registrant. The following are current paths to reactivation:

1. tax exempt transfer by out-of-state seller by F5 to buyer's in-state dealer.

2. tax exempt transfer from dealer by F5 to buyer.

3. tax exempt transfer by F5 to FFL07/SOTII for reactivation

4. FFL reactivates it and then files taxed F4 back to registrant. This is four transfer periods, each currently six to eight months.

First revised path:

1. tax exempt transfer by out-of-stare seller by F5 to buyer's in-state dealer.

2. tax exempt transfer from dealer by F5 to buyer

3. new registrant files taxed F1 for individual reactivation of DEWAT. On receipt of approved F1, registrant

can do the work himself or send it to a gunsmith without transfer. After reactivation MG is returned

directly to registrant with no further ATF paperwork. This path requires two transfer periods plus

processing period for the F1 but the registrant keeps possession of the MG during this period.

Second revised path: buyer acquires a C+R FFL 03.

1. registered DEWAT transfers tax exempt by F5 directly to buyer with FFL03 (FFL03 eliminates transfer to in-state dealer)

2. new registrant transfers by tax exempt F5 to FFL07/SOTII

3. FFL07/SOTII reactivates the MG and returns to registrant by taxed F4. This requires three transfer periods.

Third revised path: buyer acquires C+R FFL03 ($30 for three years; takes from four to six weeks after application)

1. registered DEWAT transfers tax exempt from seller directly to buyer with FFL03

2. new registrant files taxed Form 1 to reactivate the DEWAT himself

3. upon receiving the approved F1, which becomes the registration for the live MG, the owner can reactivate the MG himself, or ship it

without transfer to a gunsmith to have the work done. When the gun has been reactivated, it is returned to the owner without transfer.

With this path the owner has only one ATF transfer period of six to eight months from the seller and is in possession of the gun while

waiting for the F1 processing. No further ATF paperwork required after the approved F1 is received. Again, the F1 is the active

registration.

 

Transfer to in-state buyer is direct from seller to both a non-FFL03 C+R licensee or to a C+R licensee. This does eliminate one transfer if the unrevised transfer path is followed by in-state buyer.

F1 reactivation by an individual requires that the individual mark the gun with his name and address, as he is the "maker" of record on the F1. His name is in the "manufacturer/importer" box as the "manufacturer". Of course, he is not really the manufacturer, but this is what ATF requires for an F1 reactivation, since ATF considers reactivation as a form of manufacturing.

FWIW

I added another reactivation path option with edit......

Edited May 12, 2017 by Black River Militaria CII

[Bob K]

Wow, very informative. Thanks! Now to get a ballpark value.

[Black River Militaria CII]

How about some pics? Value from $15k on up depending on condition and quite a few other factors........

[Bob K]

I will try to get some pics.

[The Lone Ranger]

 

Third revised path: buyer acquires C+R FFL03 ($30 for three years; takes from four to six weeks after application)

1. registered DEWAT transfers tax exempt from seller directly to buyer with FFL03

2. new registrant files taxed Form 1 to reactivate the DEWAT himself

3. upon receiving the approved F1, which becomes the registration for the live MG, the owner can reactivate the MG himself, or ship it

without transfer to a gunsmith to have the work done. When the gun has been reactivated, it is returned to the owner without transfer.

With this path the owner has only one ATF transfer period of six to eight months from the seller and is in possession of the gun while

waiting for the F1 processing. No further ATF paperwork required after the approved F1 is received. Again, the F1 is the active

registration.

 

 

Has this version been published anywhere or just industry work-around? If published, it's good news since it somewhat treats reactivation as a repair vs "making" although still askew in that it requires the owner to complete the F1 thus still treating it as producing a firearm while saying the actual reactivation is a repair; there is no mechanism for me to register what someone else builds.... Everything else I have seen indicates the gunsmith completes the F-1 then sends back the firearm F4 or a mfg can F2 and return F4.