[Code of Federal Regulations]
[Title 27, Volume 1]
[Revised as of April 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 27CFR53.62]

[Page 872-873]
 
            TITLE 27--ALCOHOL, TOBACCO PRODUCTS AND FIREARMS
 
 CHAPTER I--BUREAU OF ALCOHOL, TOBACCO AND FIREARMS, DEPARTMENT OF THE 
                                TREASURY
 
PART 53--MANUFACTURERS EXCISE TAXES--FIREARMS AND AMMUNITION--Table of Contents
 
                          Subpart G--Tax Rates
 
Sec. 53.62  Exemptions.

    (a) Firearms subject to the National Firearms Act. Section 4182(a) 
provides that the tax imposed by section 4181 of the Code shall not 
attach to the sale of any firearms on which the tax imposed by section 
5811 of the Code (relating to tax on the transfer of machine guns, 
short-barreled firearms, and other weapons) has been paid. Any 
manufacturer, producer, or importer claiming such an exemption from the 
tax imposed by section 4181 of the Code must maintain such records and 
be prepared to produce such evidence as will establish the right to the 
exemption.
    (b) Sales to Defense Department or to U.S. Coast Guard--(1) Military 
department. Section 4182(b) of the Code provides that the tax imposed by 
section 4181 of the Code shall not attach to the sale of firearms, 
pistols, revolvers, shells, or cartridges that are purchased with funds 
appropriated for a military department of the United States. For this 
purpose, the term ``military department'' means the Department of the 
Army, the Department of the Navy, and Department of the Air Force. 
Included in the Department of the Navy are naval aviation and the Marine 
Corps.
    (2) Coast Guard. Section 655, title 14, U.S.C., provides that no tax 
on the sale or transfer of firearms, pistols, revolvers, shells, or 
cartridges may be imposed on such articles when bought with funds 
appropriated for the United States Coast Guard.
    (3) Supporting evidence. Any manufacturer, producer, or importer 
claiming an exemption from the tax imposed by section 4181 of the Code 
by reason of section 4182(b) and section 655, title 14 of the Code must 
maintain such records and be prepared to produce

[[Page 873]]

such evidence as will establish the right to the exemption. Generally, 
clearly identified orders or contracts of a military department signed 
by an authorized officer of the military department will be sufficient 
to establish the right to the exemption. In the absence of such orders 
or contracts, a statement, signed by an authorized officer of a military 
department or the Coast Guard, that the prescribed articles were 
purchased with funds appropriated for that military department or the 
Coast Guard will constitute satisfactory evidence of the right to an 
exemption.

[T.D. ATF-308, 56 FR 303, Jan. 3, 1991, as amended by T.D. ATF-344, 58 
FR 40354, July 28, 1993]