10.1.5 DEWATS. Deactivated War Trophy (DEWAT) firearms are still firearms under the NFA, but
have been rendered unserviceable (i.e., incapable of discharging a shot by means of an explosive and
incapable of being readily restored to a firing condition). The deactivation may have been accomplished
by various means such as (but not limited to) welding of the chamber, cutting the barrel/chamber/breech,
plugging the barrel, welding the bolt to the chamber, or some combination of these actions which
rendered the firearm incapable of firing a shot.
Regardless of being unserviceable, the DEWAT firearm must be registered and approved for transfer as
any other NFA firearm. The process to transfer a DEWAT is set forth in §479.90. Because the
DEWAT is unserviceable, it is transferred tax-exempt as a curio or ornament on an ATF Form 5. The
Form 5 must identify the transferee and transferor, FFL/SOT, any importer, type, model, caliber, overall
length, gauge, size, serial number or other marks of identification. Additionally, the transferor must
check the block in item 1 of the Form 5 indicating the unserviceable status of the firearm and answer
item 4(i) confirming how the firearm has been rendered unserviceable.
10.1.5.1 Reactivation of DEWATS. Deactivated War Trophy (DEWAT) firearms may be
returned to a serviceable condition. A DEWAT that has been returned to a serviceable condition
(or reactivated) is often referred to as Reactivated War Trophy (REWAT). The act of returning a
DEWAT to a serviceable condition is considered the “making” or “manufacturing” of a firearm
by ATF. The procedures for reactivation by a non-FFL or FFL with other than a manufacturer’s
SOT status or with no SOT status on Form 1 are found in section 6.6 of the handbook. The
procedures for reactivation by an FFL with SOT status as a manufacturer are found in section
7.3.3 of the handbook.
Hmmmmmmmmm. That makes it clear as mud.
The problem is this COULD be a $6,500 WWII era MG.
Or this COULD be a $6,500 wall hanger.
From what I can tell the barrel was welded. I could get it running again for under $1k. It would still save me $10,000.
I have nothing to add except that everyone who has posted in this thread is spot-on (chuckp, curraheeguns, cwood,) and offering terrific advice.
I believe If it is currently on a Form 5 it should be able to be REWAT'd for a $200 manufacturing fee on a Form 1 because it is a registered machine gun currently even though it is a DEWAT.
Then if it is ever sold it will go back to a normal form 4 to the new owner as a MG.
Sometimes DEWATS can be had for a steal, but sometimes they are cost prohibative to REWAT.