|Originally Posted By the1000z:
here is the deal with that lower...
it left BCM as a complete firearm and was transferred as such from the manufacturer to a dealer, once in the dealers hands he is officially the owner if it and can do with it as he sees fit...
Keeping the upper and selling the lower (what he is doing)
stripping it completely and selling just the SBR receiver (option 2)
selling the complete gun as he received it (option 3)
or putting a 30" barreled upper on it and selling it as a SBR (yes I know there's no 30" barrel AR but once its registered as a SBR it doesn't matter what length upper is on it because the upper is just an accessory
the ATF disagrees with you, once the SBR is no longer in an SBR configuration, it should be treated like a title I firearm.
from the ATF NFA FAQ
Q: I possess a properly registered SBR or SBS. I intend to strip the receiver and remove the barrel prior to selling the receiver. Is the bare receiver still subject to regulation under the NFA as a SBR or SBS?
A stripped receiver without a barrel does not meet the definition of a SBR or SBS under the NFA.Although the previously registered firearm would remain registered unless the possessor notified the NFA Branch of the change, there is no provision in statute or regulation requiring registration of a firearm without a barrel because its physical characteristics would make it only a GCA “firearm” pursuant to 18 U.S.C. § 921(a)(3)(B). If the subsequent owner buys the receiver as a GCA firearm and installs a barrel less than 16 inches in length (SBR) or 18 inches in length (SBS), the firearm would be subject to a $200 making tax and registration under the NFA by the manufacturer or maker of the SBR or SBS. Because registration depends upon the stated intent of the applicant, there is no provision to allow registration of a NFA firearm by anyone other than the maker or manufacturer.
Q: Is it necessary to send notification to ATF and receive acknowledgement that the SBR or SBS has been removed from the purview of the NFA before it may be sold as a GCA firearm?
There is no requirement for the possessor of a registered NFA firearm to notify ATF that the firearm has been removed from the purview of the NFA. However, ATF recommends the possessor notify the NFA Branch of such changes in writing so that the possessor is not mistakenly identified as the owner if the firearm is later used in a crime. If, at the time of transfer, the firearm does not meet the definition of a SBR, it should be transferred without filing the NFA transfer application and without payment of the transfer tax.