my lgs has stripped factory lmt sbr lowers for $200 ea

You cannot buy a stripped SBR lower. It's an oxymoron per the definition of "short barreled rifle". NFA Branch will reject your application.

You can buy a stripped lower receiver and Form 1 it into an SBR.

this is a new one.....

If there's no short upper attached, it's not an SBR.

Several manufacturers got in trouble for sending off F2's for stripped lowers and selling them as "SBR" lowers.

If you want one on a form 4, you'll have the easiest time buying a complete gun.

There is so much to worry about with the slippery scenario you're suggesting.

Everyone having an SBR upper along the way simply means there is possession of an SBR at each stop, but it is still transferring stripped. The transfer is not the Form 4, but the actual physical handing of the firearm to the new owner and if it is stripped at this time, then there is no transfer of an SBR. I would also be worried of perjury violations for gaming the system like this. You are signing under penalties of perjury that an actual SBR of a certain configuration is being transferred to a new owner. What is actually happening is contrary to this and within your knowledge. Very dangerous.

That's not what AGP is doing. You have to send them your SBR upper, they transfer a complete rifle to you or your dealer. Very different scenario.

And I'm not aware that arfcom is an SOT...

Last time this came up, ARFCOM was unable to explain how it was doing this legally.

Did lower xfer to your dealer with an upper?

What BBL length was listed on the F3 to you dealer?

And therein lies the trouble. If the SBR was shipped to the dealer in a stripped configuration, then an "SBR" was not transferred. That's one problem. If the signed Form 3 indicated the transferring SBR had a 10.5" barrel and the true intention -and resultant action- was to physically transfer a money-saving stripped lower, then there is a serious legal issue here.

A FFL here in NH told me he is planning to get his SOT so he can sell SBR lowers. Maybe he did already because this conversation happened months ago and I haven't talked to him about it since.

According to him, he got the procedure from ATF directly. First, he goes through the process of registering the lowers as SBR, assigns them a barrel length, overall length, and engraves them. At the time a Form 4 is filled out and signed to transfer them to the buyer, he must install an upper with the appropriate length barrel. I don't know if that means installing the take down pins or just holding it in place. Or maybe they must be complete lowers, I don't remember exactly.

After the paperwork is signed, the upper may be removed. When the paperwork comes back, the buyer picks up the lower only. Then the buyer is to first assemble it with the listed barrel length. After that the owner is free to change barrel lengths, just like any other SBR.

As I said above, this conversation was months ago so I may be missing a detail or two. It can be done legally and it involves installing an upper and maybe threading on a stock assy finger tight while the paperwork is signed. The advantage of this? Some people do not want their name engraved on the lower.

Disclaimer: I am not a lawyer, this is not legal advice, and I have not purchased a SBR this way.

No, just no. As explained above, it's legal. Is it a loophole, yes. But it's still legal.

The barrel does not have to stay on the lower at all times for it to be an SBR. It only has to be in possession. If it did have to be installed at all times, you'd have to re-register your SBR every time you took the upper off to switch it out with another one.

The sum of the parts make the weapon even when they are not assembled. This is the same reason so many people are all in a wad over constructive intent or possession or whatever the latest term is. If you have the parts to make an SBR, then you have an SBR, regardless of whether or not it's assembled.


http://www.ar15.com/archive/topic.html?b=6&f=17&t=274328

Big +1.

The moment it transfers without the barrel indicated on the Form 3 or Form 4, then you have both an improper NFA transfer and a perjury violation.

I agree,bunch of lawyer tricks. So I went to pick up my lower and forgot to ask about the SBR lower, seems my 4473 was held over for further investigation Now what?