FFL NFA Items & Special Regulations 3 â Questions and Answers
Question 1: An FFL dealer receives an NFA item for consignment sale. Which form must be completed to take physical possession of the item from a civilian owner?
- ATF Form 3
- ATF Form 4 (with ATF approval required first) (Correct answer)
- ATF Form 5320.20
- No form needed; a dealer may hold civilian NFA items without transfer
Correct answer: ATF Form 4 (with ATF approval required first)
A civilian must transfer the NFA item to the FFL/SOT via an approved Form 4 before the dealer can lawfully take possession for consignment.
Question 2: Under the NFA, a 'silencer' (suppressor) is defined to include which of the following components?
- Only the complete, assembled device
- Only the outer tube of the suppressor
- Any part designed and intended solely and exclusively for use in a silencer (Correct answer)
- Only baffles and end caps when sold separately
Correct answer: Any part designed and intended solely and exclusively for use in a silencer
26 U.S.C. § 5845(a)(7) defines a silencer to include any part designed and intended solely and exclusively for use in assembling or fabricating a silencer.
Question 3: A licensed dealer with SOT status wants to demonstrate NFA weapons to law enforcement agencies. Which ATF form authorizes the dealer to acquire post-1986 machine guns for this purpose?
- ATF Form 1
- ATF Form 4
- ATF Form 3 (dealer sample) (Correct answer)
- ATF Form 5
Correct answer: ATF Form 3 (dealer sample)
SOT dealers may acquire post-1986 machine gun dealer samples via Form 3 for law enforcement demonstration purposes under 26 U.S.C. § 5854.
Question 4: If an NFA trust transfers an NFA item to one of its trustees for personal use in another state, what must the trust do before the firearm crosses state lines?
- File ATF Form 4 and pay $200 tax
- Submit ATF Form 5320.20 and receive prior approval (Correct answer)
- Notify the destination state's attorney general
- No action is required because trustees have unrestricted access
Correct answer: Submit ATF Form 5320.20 and receive prior approval
Interstate transportation of an NFA item requires prior written ATF approval via Form 5320.20 (Application to Transport Interstate or to Temporarily Export Certain National Firearms Act Firearms).
Question 5: A customer's Form 4 transfer is approved and the NFA item is in the dealer's possession. The customer moves to another state before picking up the item. What must happen?
- The dealer ships the item to an FFL in the new state; no NFA process repeats
- The dealer must file a new Form 4 to transfer to the customer in the new state
- The customer must file Form 5320.20 to authorize interstate transport for pickup (Correct answer)
- The ATF must be notified within 30 days but no new approval is needed
Correct answer: The customer must file Form 5320.20 to authorize interstate transport for pickup
Because the item will cross state lines when the customer takes possession, a Form 5320.20 must be filed and approved before the interstate transport occurs.
Question 6: Under ATF rules, a 'solvent trap' kit sold as a cleaning device becomes a regulated NFA silencer when the buyer does what?
- Purchases more than one kit
- Drills the end caps to allow bullet passage, converting it to a suppressor (Correct answer)
- Attaches it to a firearm even without modification
- Registers it on ATF Form 1 before any modification
Correct answer: Drills the end caps to allow bullet passage, converting it to a suppressor
A solvent trap becomes an unregistered suppressorâan NFA violationâwhen a buyer modifies it (e.g., drilling end caps) to allow a projectile to pass through.
Question 7: Which class of FFL/SOT permits a licensee to manufacture NFA items, including post-1986 machine guns for government sale?
- Class I SOT (Type 01 or 02 FFL)
- Class II SOT (Type 07 or 10 FFL) (Correct answer)
- Class III SOT (Type 01 FFL only)
- Any FFL with a paid SOT regardless of license type
Correct answer: Class II SOT (Type 07 or 10 FFL)
Class II SOT status, held with a Type 07 (manufacturer) or Type 10 (manufacturer of destructive devices) FFL, authorizes manufacture of NFA items including post-1986 machine guns for government contracts.
FFL NFA Items & Special Regulations 3
An FFL dealer receives an NFA item for consignment sale.
Which form must be completed to take physical possession of the item from a civilian owner?