My local FFL says that its legal for a non-FFL to ship a handgun to a FFL (thru contract carrier) for customization or repair, but not
so that it can be transfered to someone else.
I don't think this is correct.
Is it legal for me to sell jo-blow a handgun in another state, ship it to his FFL (after I get a copy of the dealers FFL and address it to the address listed on the FFL)
and then his FFL can 4473 transfer it to him?
I don't see how this could be any different than shipping it to a FFL for repair, except that its legally transfered to someone else.
My FFL says that it must go FFL to FFL if its to be transfered to someone else once on the other end.  Is this bullshit or legit?
References would be very helpful.    

Go to the BATFE web site
[url]http://www.atf.treas.gov/firearms/faq/faq2.htm#b1[/url].
Here is the paragraph:
(B1) To whom may an unlicensed person transfer firearms under the GCA? [Back]


A person may sell a firearm to an unlicensed resident of his or her state, if the buyer is not prohibited by law from receiving or possessing a firearm, or to a licensee in any state. A firearm other than a curio or relic may not be transferred interstate to a licensed collector. [18 U. S. C 922( a)( 3) and (5), 922( b)( 3), 27 CFR 178.29]

The licensee is the FFL in the other state.

I've been hearing this BS from a lot of people lately and it really pisses me off. I wouldn't care if a dealer told his customers "My policy is that I only accept firearms shipments from other dealers." but to just lie to them about the law is wrong.

Also, FWIW, the ATF is telling dealers not to give copies of their FFL to non-licensees. It's not a regulation yet, but their "suggestion."  I just ask for the FFL number of the licensee and run it on the ATF EZChek site [url]http://199.196.145.75/FFLeZCheck[/url] then ship only to the address that the ATF site returns. I even check FFL copies I get to assure their authenticity.

For 03 to 03 transfers I require a copy of the license since I hold an 03.

Shipping is another issue. USPS and UPS will not accept handguns presented for shipment unless you are a FFL (dealer, wholesaler, gunsmith). FedEx will, but I've heard some people having issues with them not wanting to do it.

I haven't tried myself.

That must be just the UPS place you deal with.
I sent my SA back to them for some work and went to the UPS shipping depot (not a retail outlet like Mailboxes Ect) and sent it to them without having to use an FFL, and had it returned to me by UPS at my home.

The only Corporate policy that UPS has that I'm aware of is overnight Red Lable shipping being required for handguns.
And that is only a policy, not a law.

Federal law states that a handgun shipped out of state MUST be recieved by an FFL, or C&R holder if applicable.

The "requirement" that a handgun be shipped overnight is a business decision by FedEx and UPS because making you pay extra for shipping is easier than hiring employees who don't steal.

With a dealer to dealer transfer, the handgun can be sent USPS; the ATF recommends registered mail.  I just sent a pistol to a guy today that I traded for a scope. My dealer put it in his book, and acting as his agent I mailed it USPS, Insured, Priority Mail, delivery confirmation. It'll get to the new owner in 2 days for $13. The same deal with FedEx would be $35.