Hi folks.  Do 07/02 ever work with 01/03 dealers on NFA stuff?  I'd like to have some title II stuff made (maybe some SBRs) for my business.  Is this uncommon?

It's very common.

Just remember you'll need demo letters or government POs for any post-sample machineguns.

That reminds me, I need to get back up there once I figure out what I need done.  

Thanks for the replies.  So how does this work?  Can I spec out what I want to build, send all the parts to the 07, 07 builds it, files the form 2, then form 3 to me with gun?

Yep, but they have to wait for the form 3 to clear before they can ship to you.

Form three is relatively quick though, right?

Form 3s are taking about 45 days.

There will be excise tax on any complete firearms they make for you.  If sufficiently pricey, it can be worth using a tax paid Form 4, even between SOTs, as a transfer tax replaces normal excise tax.

No excise tax on NFA items. As SOTs we've already paid the tax.

http://www.ttb.gov/firearms/faet-faqs.shtml

"The following types of sales are exempt from FAET:

Sales of Firearms Subject to the National Firearms Act (NFA). [Refer to 26 U.S.C. 4182(a) , 5845 and 27 CFR 53.62(a)]."

That's how we do it.  Charges are pretty minimal: - Title II paperwork/transfer fee for the combined F2/F3, gunsmithing (if anything more involved than "pushing the pins"), standard Title II engraving, and return shipping w/ insurance.

Awesome! I was just going to post the same question. As a followup, where is the best place to find an 07/02 to do the work? I have a couple items I'd like to be made into SBR's and form 3'ed back to me.

...

We use Bubbles exclusively. Work is always to spec and on time.

Bubbles got back to me before I could read my own post!  

What about 07/02 to another 07/02, would a law letter be required, or not since both are manufacturers?

Yes, unless the selling 07/C2 is going out of business.

07/C2 #1 procures non-NFA receiver, engraves it, files Form 2, and waits.

Once approved Form 2 has been received the 07/C2 can send the receiver and parts to any licensee (IIRC SOT not required) to be completed as gunsmithing.

Any reason to wait? Wouldn't a copy of the submitted form 2 be acceptable?

Not really kosher... F2 is notification of firearms manufactured, not notification of intent to have a firearm manufactured by someone else on your behalf.  Originating C2 is responsible for marking the firearm and completing it to the point it can be legally considered the firearm, before sending it off elsewhere for finishing work under the guise of gunsmithing.

Originating C2 drills sear hole and marks receiver for post sample machine gun: can be shipped off to another licensee to mill the interior and refinish it.

Originating C2 marks a piece of plate steel and ships it off with a SAW parts kit to have the sheet steel machined into a side plate and assembled around the parts kit? Not legal to ship off to another C2 - originating C2 needs to complete the side plate to firearm status before shipping it off with the parts kit to be completed.

In your specific example, simply acquiring and marking an AR receiver then sending it off for drilling and milling by someone else would be absolutely illegal for making a post sample machine gun. As an SBR it'd be legal if the originating C2 put a short upper on it first, but kind of silly since no one needs technical assistance putting a short upper on an AR.