Quote History Quoted:
But he cant accept it. He is not a class 3... besides, its not a form 4 transfer. Its already stamped in my name.
View Quote
He doesn't have to be an SOT to accept Title II (NFA) firearms for service (such as gunsmithing or cleaning).
Any FFL can do that.
It would be best if he would just accept it (since it was shipped off for service in the first place) and return it to you.
If he is adamant about not accepting it, you could ask if he'll accept it on an approved F5 (tax-exempt transfer form).
The problem with this is... if that's the only way he'll accept it back, then it should've gone to the other FFL/SOT on F5, but it didn't (because apparently it wasn't a SBR yet) so then really the FFL/SOT doing the work should've registered it on F2 (and engraved it with his own info) but he didn't, right?
This really should've all been hashed out with the local FFL and the out-of-state FFL/SOT in advance, and
you (as the F1 maker/registrant) should've shortened the barrel (hacksaw) to make the SBR prior to any shipment.
None of this would normally require a F5 to be used. It's optional because ATF does not consider this type of service shipment to be a transfer (as long as it's going to an FFL).
With regards to this situation... I've never tried doing F5 from an out-of-state FFL/SOT back to a local FFL near the F1 registrant, as in your scenario... because ATF will probably wonder "How'd this get over there in the first place?"
So probably to get it
back on F5 to your local FFL, you'd need to first "send it"
to the FFL/SOT on F5 (except it's already over there).
So either collaborate really hard to make this right on paper, or do like Circuits said and mod the barrel to make it back into a Title I (GCA) rifle. But don't throw the FFL/SOT under the bus if the agreement between you was for him to cut it. (which I wouldn't have done, were I in his position.)
You certainly do not need to answer any of my questions on a public forum.
But these are basically your options.