Armory Sponsor
Posted: 11/2/2006 2:46:35 PM EDT
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Can someone please explain this concept/process to me? I take it the "post" part refers to post 86 FOPA, but do you have to be a class 3 dealer or some sort of manufacturer? The one thread I found on here about it was a bit over my head. Thanks. |
You need to be a Federal Firearm Licensee that pays a yearly Special Occupational Tax to acquire Post 86 Dealer Samples. The dealer is classified as an FFL01/SOT3. FFL01 meaning dealer and SOT3 meaning Class 3. A manufacturer also pays an SOT and they are classified as an FFL07/SOT2, meaning manufacturer and class 2. CLICK HERE FOR MORE INFO |
Yup, post-sample refers to all machine guns manufactured after May 19, 1986. To purchase them, you need to have: --A federal firearms license, as either a dealer, manufacturer or importer. (C&R FFLs do not qualify.) --An SOT (Special Occupational Taxpayer) certificate. These run from $500 to $1,000 per year, depending on the type of FFL you have. There are additional annual fees for manufacturers. --A written demonstration request from an LE agency for each post-sample you hope to purchase must be submitted to BATF before they will approve its transfer to you. In addition, BATF generally limits such acquisitions to one example per firearm type or make. Note that an FFL/SOT must be actively doing business, or be able to prove he/she is attempting to make sales. Otherwise, BATF considers an FFL/SOT who only buys post-samples as a collector, and using an SOT to enhance a personal collection is tax evasion (because you are not paying the $200 transfer tax on each MG). They can and have gotten felony convictions in such cases, so do not get an SOT unless you really plan on making sales. HTH. |
I'm assuming that you would sell to Police Departments? Would that be your only market? If you were a manufacturer, you can get a license to create MGs, correct? Can you also have Post Samples for testing purposes? |
You could also sell to federal agencies and to security companies which are under contract to guard nuclear facilities. And of course to other FFL/SOTs.
Holders of valid NFA manufacturing licenses -- 07/02 SOTs -- do not need to get a law-enforcement demo letter before manufacturing MGs for inventory, but they still need LE demo letters to buy MGs manufactured by other companies. In addition, 07/02 SOTs have to pay additional federal fees that total out to about $2.5k per year and must meet much stricter BATF requirements than FFL/SOT dealers face. |
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