Ok so I have a customer that needs me to ship a handgun back to Taurus for repair. I have never done this and I know it's probably quicker to ask then search all over. He was quoted $120 to ship about 4 hours south of here by UPS. So being an FFL I can ship USPS instead with completing the form for usps when I drop it off. My questions are these.

1) How does it go into the book as being acquired from him then disposed to Taurus?
2) can taurus ship the gun straight back to him without coming back through me?
3) I can ship via priority mail correct?  

If I'm missing anything else please feel free to add. Like I said I have never sent one for repair only to another FFL.

You should let your customer just send it back.  He is legally allowed to ship it back for repair and they can ship it directly back to him.  Not usps, but still....

You do realize if you do ship it for him you have to log it in, back out to oem, in when it returns and then 4473 it back to him?  What if he has a nics problem? How will you make $ doing this even if all goes well?  What happens if it gets lost in transit? If you want to do it as customer service I guess... still id just tell him to ship it back himself so the transfers dont take place.  Too much risk....

He's willing to pay the transfer and shipping. It's just it would cost like $20 shipping through me, vs $120 for him to overnight it 4.5 hours south of us. When he called me back I was going to try to get him to push Taurus to send him a prepaid label. I planned on charging him $50 to ship and transfer it for him.

You are wrong on the NICS issue.

If it's for the purposes of repair then a 4473 is not required. See ATF's FFL Quick Reference Guide, Page 13 and 14. Look at the sample bound book, specifically entries 5 and 10. Customer brings in a broken Remington 870, FFL sends it out to another FFL for purposes of repair and it comes back from the gunsmithing FFL. Dealer logs it back in from the gunsmithing FFL and then it goes right back to the customer (no 4473 required).

I didn't catch the second transfer when I looked at the example yesterday.

So here's what I take from it all.

I get it from individual and list as acquisition, then send to Taurus and list as disposition.
Then when it comes back, it comes back in as acquisition from Taurus and disposition back out to individual. No 4473 needed.

Now my next question, do you notate in your book that it's a repair as a reminder so on the next inspection it doesn't appear that it's a regular transfer and don't have a 4473, or maybe have them fill a 4473 and don't worry about background check and notate on 4473 in the additional comment section it was a warranty return.

Don't do a 4473 and leave the background stuff blank, that'll just be more confusing. An annotation in your bound book is not required, but it wouldn't be a bad idea. If you're audited the ATF will know what happened with those transactions.

Overnight shipping?  Why?

If he had just shipped it "normal" shipping when you first started asking about this, it would probably be there by now without having to pay for overnight delivery.  Has it even gotten out of his hands and started moving south yet?  Or are you guys still trying, days later, to figure out how to avoid paying of overnight shipping?

Because UPS and FedEx both require that handguns (possibly all firearms) be shipped overnight.

Thanks.  I had an FFL many moons ago, gave it up in '87.  I never shipped anything, just received.  The internet wasn't the fancy thing it is today so I wasn't paying any attention to tracking the shipments I received.

If he bought it from a big name store, he should try checking with them.

If you buy a gun from Academy Sports, they will ship it to the manufacture for whatever reason you give them free of charge.

I've sent a ton of Taurus and Rossi guns back to the mfg for repar. Academy covers the shipping. I even had one lady send her handgun back to Smith and Wesson for them to clean it