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Japanese Type 96 LMG

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I need some help navigating the BATFE laws in a couple of areas.

My grandfather, a WWII Vet, recently passed away. When he came back from the war, he brought home a Japanese Type 96 LMG (actually stashed it in his dufflebag, how times have changed). According to my grandmother (also deceased) the "FBI came to the door one day and took it" (in the early 1950's). They actually mailed it back to them about 6 months later, after it had been "demil'd". Not exactly sure what they did, but the barrel is permanently plugged and I would bet they removed the sear.

My grandfather left the weapon to me in his will. The estate is in Kentucky, I am a New Hampshire resident. Aside from a sentence in the will that basically states "I leave my Japanese machine gun to my grandson..." there is no other known documentation related to the weapon.

Questions:
1. How do I legally receive the weapon?
2. Since it is no longer operable, is this still considered an NFA weapon?
3. With state laws being what they are, what is the best way to transfer it to my residence in NH?

Ultimately, I will probably donate or lend this to a military museum, but I'm pretty sure they will need some sort of proof that I'm the rightful/legal owner before accepting.

Any and all help would be appreciated.
 
If it's de-milled, it's not longer a gun, it's a paper weight, but standards of de-milling may have changed. I do not recall any ATF procedures that relate to de-miling this type of gun. ATF does list proper de-milling for common guns like AKs.

You can write to ATF WV office about proper procedure to make sure that "gun" is no longer a gun. You may contact an FFL with manufacturer's lic about it, they have FFL branch on speed dial and can sort it out quicker. Most likely that receiver is cut or disabled. Mutilation of barrels came later and for a different reason.

Taking possession should not be any more complicated than a light bulb or a book. It's no longer a gun.

Don't donate it to any museum, they already got moldy crap no one cares about. Rebuild it into semi auto and shoot the piss out of it like your grandpa would wanted to. He had good taste in guns.
 
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