Small Arms Review
  • Home
  • Articles
    • Guns & Parts
    • Suppressors
    • Optics & Thermals
    • Ammunition
    • Gear
    • News & Opinion
    • Columns
    • Museums & Factory Tours
    • ID Guides
    • Interviews
    • Event Coverage
    • Articles by Issue
      • Volume 1
        • V1N1 (Oct 1997)
        • V1N2 (Nov 1997)
        • V1N3 (Dec 1997)
        • V1N4 (Jan 1998)
        • V1N5 (Feb 1998)
        • V1N6 (Mar 1998)
        • V1N7 (Apr 1998)
        • V1N8 (May 1998)
        • V1N9 (Jun 1998)
        • V1N10 (Jul 1998)
        • V1N11 (Aug 1998)
        • V1N12 (Sep 1998)
      • Volume 2
        • V2N1 (Oct 1998)
        • V2N2 (Nov 1998)
        • V2N3 (Dec 1998)
        • V2N4 (Jan 1999)
        • V2N5 (Feb 1999)
        • V2N6 (Mar 1999)
        • V2N7 (Apr 1999)
        • V2N8 (May 1999)
        • V2N9 (Jun 1999)
        • V2N10 (Jul 1999)
        • V2N11 (Aug 1999)
        • V2N12 (Sep 1999)
      • Volume 3
        • V3N1 (Oct 1999)
        • V3N2 (Nov 1999)
        • V3N3 (Dec 1999)
        • V3N4 (Jan 2000)
        • V3N5 (Feb 2000)
        • V3N6 (Mar 2000)
        • V3N7 (Apr 2000)
        • V3N8 (May 2000)
        • V3N9 (Jun 2000)
        • V3N10 (Jul 2000)
        • V3N11 (Aug 2000)
        • V3N12 (Sep 2000)
      • Volume 4
        • V4N1 (Oct 2000)
        • V4N2 (Nov 2000)
        • V4N3 (Dec 2000)
        • V4N4 (Jan 2001)
        • V4N5 (Feb 2001)
        • V4N6 (Mar 2001)
        • V4N7 (Apr 2001)
        • V4N8 (May 2001)
        • V4N9 (Jun 2001)
        • V4N10 (Jul 2001)
        • V4N11 (Aug 2001)
        • V4N12 (Sep 2001)
      • Volume 5
        • V5N1 (Oct 2001)
        • V5N2 (Nov 2001)
        • V5N3 (Dec 2001)
        • V5N4 (Jan 2002)
        • V5N5 (Feb 2002)
        • V5N6 (Mar 2002)
        • V5N7 (Apr 2002)
        • V5N8 (May 2002)
        • V5N9 (Jun 2002)
        • V5N10 (Jul 2002)
        • V5N11 (Aug 2002)
        • V5N12 (Sep 2002)
      • Volume 6
        • V6N1 (Oct 2002)
        • V6N2 (Nov 2002)
        • V6N3 (Dec 2002)
        • V6N4 (Jan 2003)
        • V6N5 (Feb 2003)
        • V6N6 (Mar 2003)
        • V6N7 (Apr 2003)
        • V6N8 (May 2003)
        • V6N9 (Jun 2003)
        • V6N10 (Jul 2003)
        • V6N11 (Aug 2003)
        • V6N12 (Sep 2003)
      • Volume 7
        • V7N1 (Oct 2003)
        • V7N2 (Nov 2003)
        • V7N3 (Dec 2003)
        • V7N4 (Jan 2004)
        • V7N5 (Feb 2004)
        • V7N6 (Mar 2004)
        • V7N7 (Apr 2004)
        • V7N8 (May 2004)
        • V7N9 (Jun 2004)
        • V7N10 (Jul 2004)
        • V7N11 (Aug 2004)
        • V7N12 (Sep 2004)
      • Volume 8
        • V8N1 (Oct 2004)
        • V8N2 (Nov 2004)
        • V8N3 (Dec 2004)
        • V8N4 (Jan 2005)
        • V8N5 (Feb 2005)
        • V8N6 (Mar 2005)
        • V8N7 (Apr 2005)
        • V8N8 (May 2005)
        • V8N9 (Jun 2005)
        • V8N10 (Jul 2005)
        • V8N11 (Aug 2005)
        • V8N12 (Sep 2005)
      • Volume 9
        • V9N1 (Oct 2005)
        • V9N2 (Nov 2005)
        • V9N3 (Dec 2005)
        • V9N4 (Jan 2006)
        • V9N5 (Feb 2006)
        • V9N6 (Mar 2006)
        • V9N7 (Apr 2006)
        • V9N8 (May 2006)
        • V9N9 (Jun 2006)
        • V9N10 (Jul 2006)
        • V9N11 (Aug 2006)
        • V9N12 (Sep 2006)
      • Volume 10
        • V10N1 (Oct 2006)
        • V10N2 (Nov 2006)
        • V10N3 (Dec 2006)
        • V10N4 (Jan 2007)
        • V10N5 (Feb 2007)
        • V10N6 (Mar 2007)
        • V10N7 (Apr 2007)
        • V10N8 (May 2007)
        • V10N9 (Jun 2007)
        • V10N10 (Jul 2007)
        • V10N11 (Aug 2007)
        • V10N12 (Sep 2007)
      • Volume 11
        • V11N1 (Oct 2007)
        • V11N2 (Nov 2007)
        • V11N3 (Dec 2007)
        • V11N4 (Jan 2008)
        • V11N5 (Feb 2008)
        • V11N6 (Mar 2008)
        • V11N7 (Apr 2008)
        • V11N8 (May 2008)
        • V11N9 (Jun 2008)
        • V11N10 (Jul 2008)
        • V11N11 (Aug 2008)
        • V11N12 (Sep 2008)
      • Volume 12
        • V12N1 (Oct 2008)
        • V12N2 (Nov 2008)
        • V12N3 (Dec 2008)
        • V12N4 (Jan 2009)
        • V12N5 (Feb 2009)
        • V12N6 (Mar 2009)
        • V12N7 (Apr 2009)
        • V12N8 (May 2009)
        • V12N9 (Jun 2009)
        • V12N10 (Jul 2009)
        • V12N11 (Aug 2009)
        • V12N12 (Sep 2009)
      • Volume 13
        • V13N1 (Oct 2009)
        • V13N2 (Nov 2009)
        • V13N3 (Dec 2009)
        • V13N4 (Jan 2010)
        • V13N5 (Feb 2010)
        • V13N6 (Mar 2010)
        • V13N7 (Apr 2010)
        • V13N8 (May 2010)
        • V13N9 (Jun 2010)
        • V13N10 (Jul 2010)
        • V13N11 (Aug 2010)
        • V13N12 (Sep 2010)
      • Volume 14
        • V14N1 (Oct 2010)
        • V14N2 (Nov 2010)
        • V14N3 (Dec 2010)
          • Ammunition
        • V14N4 (Jan 2011)
        • V14N5 (Feb 2011)
        • V14N6 (Mar 2011)
        • V14N7 (Apr 2011)
        • V14N8 (May 2011)
        • V14N9 (Jun 2011)
        • V14N10 (Jul 2011)
        • V14N11 (Aug 2011)
        • V14N12 (Sep 2011)
      • Volume 15
        • V15N1 (Oct 2011)
        • V15N2 (Nov 2011)
        • V15N4 (Jan 2012)
        • V15N5 (Feb 2012)
      • Volume 16
        • V16N1 (1st Quarter 2012)
        • V16N2 (2nd Quarter 2012)
        • V16N3 (3rd Quarter 2012)
        • V16N4 (4th Quarter 2012)
      • Volume 17
        • V17N1 (1st Quarter 2013)
        • V17N2 (2nd Quarter 2013)
        • V17N3 (3rd Quarter 2013)
        • V17N4 (4th Quarter 2013)
      • Volume 18
        • V18N1 (Jan Feb 2014)
        • V18N2 (Mar Apr 2014)
        • V18N3 (May Jun 2014)
        • V18N4 (Jul Aug 2014)
        • V18N5 (Sep Oct 2014)
        • V18N6 (Nov Dec 2014)
      • Volume 19
        • V19N1 (Jan 2015)
        • V19N2 (Feb Mar 2015)
        • V19N3 (Apr 2015)
        • V19N4 (May 2015)
        • V19N5 (Jun 2015)
        • V19N6 (Jul 2015)
        • V19N7 (Aug Sep 2015)
        • V19N8 (Oct 2015)
        • V19N9 (Nov 2015)
        • V19N10 (Dec 2015)
      • Volume 20
        • V20N1 (Jan 2016)
        • V20N2 (Feb Mar 2016)
        • V20N3 (Apr 2016)
        • V20N4 (May 2016)
        • V20N5 (Jun 2016)
        • V20N6 (Jul 2016)
        • V20N7 (Aug Sep 2016)
        • V20N8 (Oct 2016)
        • V20N9 (Nov 2016)
        • V20N10 (Dec 2016)
      • Volume 21
        • V21N1 (Jan 2017)
        • V21N2 (Feb Mar 2017)
        • V21N3 (Apr 2017)
        • V21N4 (May 2017)
        • V21N5 (Jun 2017)
        • V21N6 (Jul 2017)
        • V21N7 (Aug Sep 2017)
        • V21N8 (Oct 2017)
        • V21N9 (Nov 2017)
        • V21N10 (Dec 2017)
      • Volume 22
        • V22N1 (Jan 2018)
        • V22N2 (Feb 2018)
        • V22N3 (March 2018)
        • V22N4 (Apr 2018)
        • V22N5 (May 2018)
        • V22N6 (Jun Jul 2018)
        • V22N7 (Aug Sep 2018)
        • V22N8 (Oct 2018)
        • V22N9 (Nov 2018)
        • V22N10 (Dec 2018)
      • Volume 23
        • V23N1 (Jan 2019)
        • V23N2 (Feb 2019)
        • V23N3 (Mar 2019)
        • V23N4 (Apr 2019)
        • V23N5 (May 2019)
        • V23N6 (Jun Jul 2019)
        • V23N7 (Aug Sep 2019)
        • V23N8 (Oct 2019)
        • V23N9 (Nov 2019)
        • V23N10 (Dec 2019)
      • Volume 24
        • V24N1 (Jan 2020)
        • V24N2 (Feb 2020)
        • V24N3 (Mar 2020)
        • V24N4 (Apr 2020)
        • V24N5 (May 2020)
        • V24N6 (Jun Jul 2020)
        • V24N7 (Aug Sep 2020)
        • V24N8 (Oct 2020)
        • V24N9 (Nov 2020)
        • V24N10 (Dec 2020)
  • The Archive
    • Search The Archive
  • Store
    • Books
    • Back Issues
    • Merchandise
  • Events
  • About
    • About Small Arms Review
    • About Chipotle Publishing
    • Contact Us
    • Other Publications
      • Small Arms Defense Journal
  • Home
  • Articles
    • Guns & Parts
    • Suppressors
    • Optics & Thermals
    • Ammunition
    • Gear
    • News & Opinion
    • Columns
    • Museums & Factory Tours
    • ID Guides
    • Interviews
    • Event Coverage
    • Articles by Issue
      • Volume 1
        • V1N1 (Oct 1997)
        • V1N2 (Nov 1997)
        • V1N3 (Dec 1997)
        • V1N4 (Jan 1998)
        • V1N5 (Feb 1998)
        • V1N6 (Mar 1998)
        • V1N7 (Apr 1998)
        • V1N8 (May 1998)
        • V1N9 (Jun 1998)
        • V1N10 (Jul 1998)
        • V1N11 (Aug 1998)
        • V1N12 (Sep 1998)
      • Volume 2
        • V2N1 (Oct 1998)
        • V2N2 (Nov 1998)
        • V2N3 (Dec 1998)
        • V2N4 (Jan 1999)
        • V2N5 (Feb 1999)
        • V2N6 (Mar 1999)
        • V2N7 (Apr 1999)
        • V2N8 (May 1999)
        • V2N9 (Jun 1999)
        • V2N10 (Jul 1999)
        • V2N11 (Aug 1999)
        • V2N12 (Sep 1999)
      • Volume 3
        • V3N1 (Oct 1999)
        • V3N2 (Nov 1999)
        • V3N3 (Dec 1999)
        • V3N4 (Jan 2000)
        • V3N5 (Feb 2000)
        • V3N6 (Mar 2000)
        • V3N7 (Apr 2000)
        • V3N8 (May 2000)
        • V3N9 (Jun 2000)
        • V3N10 (Jul 2000)
        • V3N11 (Aug 2000)
        • V3N12 (Sep 2000)
      • Volume 4
        • V4N1 (Oct 2000)
        • V4N2 (Nov 2000)
        • V4N3 (Dec 2000)
        • V4N4 (Jan 2001)
        • V4N5 (Feb 2001)
        • V4N6 (Mar 2001)
        • V4N7 (Apr 2001)
        • V4N8 (May 2001)
        • V4N9 (Jun 2001)
        • V4N10 (Jul 2001)
        • V4N11 (Aug 2001)
        • V4N12 (Sep 2001)
      • Volume 5
        • V5N1 (Oct 2001)
        • V5N2 (Nov 2001)
        • V5N3 (Dec 2001)
        • V5N4 (Jan 2002)
        • V5N5 (Feb 2002)
        • V5N6 (Mar 2002)
        • V5N7 (Apr 2002)
        • V5N8 (May 2002)
        • V5N9 (Jun 2002)
        • V5N10 (Jul 2002)
        • V5N11 (Aug 2002)
        • V5N12 (Sep 2002)
      • Volume 6
        • V6N1 (Oct 2002)
        • V6N2 (Nov 2002)
        • V6N3 (Dec 2002)
        • V6N4 (Jan 2003)
        • V6N5 (Feb 2003)
        • V6N6 (Mar 2003)
        • V6N7 (Apr 2003)
        • V6N8 (May 2003)
        • V6N9 (Jun 2003)
        • V6N10 (Jul 2003)
        • V6N11 (Aug 2003)
        • V6N12 (Sep 2003)
      • Volume 7
        • V7N1 (Oct 2003)
        • V7N2 (Nov 2003)
        • V7N3 (Dec 2003)
        • V7N4 (Jan 2004)
        • V7N5 (Feb 2004)
        • V7N6 (Mar 2004)
        • V7N7 (Apr 2004)
        • V7N8 (May 2004)
        • V7N9 (Jun 2004)
        • V7N10 (Jul 2004)
        • V7N11 (Aug 2004)
        • V7N12 (Sep 2004)
      • Volume 8
        • V8N1 (Oct 2004)
        • V8N2 (Nov 2004)
        • V8N3 (Dec 2004)
        • V8N4 (Jan 2005)
        • V8N5 (Feb 2005)
        • V8N6 (Mar 2005)
        • V8N7 (Apr 2005)
        • V8N8 (May 2005)
        • V8N9 (Jun 2005)
        • V8N10 (Jul 2005)
        • V8N11 (Aug 2005)
        • V8N12 (Sep 2005)
      • Volume 9
        • V9N1 (Oct 2005)
        • V9N2 (Nov 2005)
        • V9N3 (Dec 2005)
        • V9N4 (Jan 2006)
        • V9N5 (Feb 2006)
        • V9N6 (Mar 2006)
        • V9N7 (Apr 2006)
        • V9N8 (May 2006)
        • V9N9 (Jun 2006)
        • V9N10 (Jul 2006)
        • V9N11 (Aug 2006)
        • V9N12 (Sep 2006)
      • Volume 10
        • V10N1 (Oct 2006)
        • V10N2 (Nov 2006)
        • V10N3 (Dec 2006)
        • V10N4 (Jan 2007)
        • V10N5 (Feb 2007)
        • V10N6 (Mar 2007)
        • V10N7 (Apr 2007)
        • V10N8 (May 2007)
        • V10N9 (Jun 2007)
        • V10N10 (Jul 2007)
        • V10N11 (Aug 2007)
        • V10N12 (Sep 2007)
      • Volume 11
        • V11N1 (Oct 2007)
        • V11N2 (Nov 2007)
        • V11N3 (Dec 2007)
        • V11N4 (Jan 2008)
        • V11N5 (Feb 2008)
        • V11N6 (Mar 2008)
        • V11N7 (Apr 2008)
        • V11N8 (May 2008)
        • V11N9 (Jun 2008)
        • V11N10 (Jul 2008)
        • V11N11 (Aug 2008)
        • V11N12 (Sep 2008)
      • Volume 12
        • V12N1 (Oct 2008)
        • V12N2 (Nov 2008)
        • V12N3 (Dec 2008)
        • V12N4 (Jan 2009)
        • V12N5 (Feb 2009)
        • V12N6 (Mar 2009)
        • V12N7 (Apr 2009)
        • V12N8 (May 2009)
        • V12N9 (Jun 2009)
        • V12N10 (Jul 2009)
        • V12N11 (Aug 2009)
        • V12N12 (Sep 2009)
      • Volume 13
        • V13N1 (Oct 2009)
        • V13N2 (Nov 2009)
        • V13N3 (Dec 2009)
        • V13N4 (Jan 2010)
        • V13N5 (Feb 2010)
        • V13N6 (Mar 2010)
        • V13N7 (Apr 2010)
        • V13N8 (May 2010)
        • V13N9 (Jun 2010)
        • V13N10 (Jul 2010)
        • V13N11 (Aug 2010)
        • V13N12 (Sep 2010)
      • Volume 14
        • V14N1 (Oct 2010)
        • V14N2 (Nov 2010)
        • V14N3 (Dec 2010)
          • Ammunition
        • V14N4 (Jan 2011)
        • V14N5 (Feb 2011)
        • V14N6 (Mar 2011)
        • V14N7 (Apr 2011)
        • V14N8 (May 2011)
        • V14N9 (Jun 2011)
        • V14N10 (Jul 2011)
        • V14N11 (Aug 2011)
        • V14N12 (Sep 2011)
      • Volume 15
        • V15N1 (Oct 2011)
        • V15N2 (Nov 2011)
        • V15N4 (Jan 2012)
        • V15N5 (Feb 2012)
      • Volume 16
        • V16N1 (1st Quarter 2012)
        • V16N2 (2nd Quarter 2012)
        • V16N3 (3rd Quarter 2012)
        • V16N4 (4th Quarter 2012)
      • Volume 17
        • V17N1 (1st Quarter 2013)
        • V17N2 (2nd Quarter 2013)
        • V17N3 (3rd Quarter 2013)
        • V17N4 (4th Quarter 2013)
      • Volume 18
        • V18N1 (Jan Feb 2014)
        • V18N2 (Mar Apr 2014)
        • V18N3 (May Jun 2014)
        • V18N4 (Jul Aug 2014)
        • V18N5 (Sep Oct 2014)
        • V18N6 (Nov Dec 2014)
      • Volume 19
        • V19N1 (Jan 2015)
        • V19N2 (Feb Mar 2015)
        • V19N3 (Apr 2015)
        • V19N4 (May 2015)
        • V19N5 (Jun 2015)
        • V19N6 (Jul 2015)
        • V19N7 (Aug Sep 2015)
        • V19N8 (Oct 2015)
        • V19N9 (Nov 2015)
        • V19N10 (Dec 2015)
      • Volume 20
        • V20N1 (Jan 2016)
        • V20N2 (Feb Mar 2016)
        • V20N3 (Apr 2016)
        • V20N4 (May 2016)
        • V20N5 (Jun 2016)
        • V20N6 (Jul 2016)
        • V20N7 (Aug Sep 2016)
        • V20N8 (Oct 2016)
        • V20N9 (Nov 2016)
        • V20N10 (Dec 2016)
      • Volume 21
        • V21N1 (Jan 2017)
        • V21N2 (Feb Mar 2017)
        • V21N3 (Apr 2017)
        • V21N4 (May 2017)
        • V21N5 (Jun 2017)
        • V21N6 (Jul 2017)
        • V21N7 (Aug Sep 2017)
        • V21N8 (Oct 2017)
        • V21N9 (Nov 2017)
        • V21N10 (Dec 2017)
      • Volume 22
        • V22N1 (Jan 2018)
        • V22N2 (Feb 2018)
        • V22N3 (March 2018)
        • V22N4 (Apr 2018)
        • V22N5 (May 2018)
        • V22N6 (Jun Jul 2018)
        • V22N7 (Aug Sep 2018)
        • V22N8 (Oct 2018)
        • V22N9 (Nov 2018)
        • V22N10 (Dec 2018)
      • Volume 23
        • V23N1 (Jan 2019)
        • V23N2 (Feb 2019)
        • V23N3 (Mar 2019)
        • V23N4 (Apr 2019)
        • V23N5 (May 2019)
        • V23N6 (Jun Jul 2019)
        • V23N7 (Aug Sep 2019)
        • V23N8 (Oct 2019)
        • V23N9 (Nov 2019)
        • V23N10 (Dec 2019)
      • Volume 24
        • V24N1 (Jan 2020)
        • V24N2 (Feb 2020)
        • V24N3 (Mar 2020)
        • V24N4 (Apr 2020)
        • V24N5 (May 2020)
        • V24N6 (Jun Jul 2020)
        • V24N7 (Aug Sep 2020)
        • V24N8 (Oct 2020)
        • V24N9 (Nov 2020)
        • V24N10 (Dec 2020)
  • The Archive
    • Search The Archive
  • Store
    • Books
    • Back Issues
    • Merchandise
  • Events
  • About
    • About Small Arms Review
    • About Chipotle Publishing
    • Contact Us
    • Other Publications
      • Small Arms Defense Journal
No Result
View All Result
Small Arms Review
No Result
View All Result
Home Articles

Legally Armed: V19N1

by SAR Staff
January 1, 2015
in Articles, Articles by Issue, Columns, News & Opinion, V19N1 (Jan 2015), Volume 19
Legally Armed: V19N1
Share on FacebookShare on Twitter

By Teresa G. Ficaretta, Esq. & Johanna Reeves, Esq.


Legal News from the Nation’s Capital

ATF Ruling 2014-1 Impacts Manufacture and Import of Machine guns


On September 4, 2014, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) released Ruling 2014-1, addressing the transfer and possession of machine guns by qualified manufacturers and importers. The ruling reviews the restrictions of Section 922(o) of the Gun Control Act (GCA) (Title 18 United States Code, § 922(o)), and sets forth rules for qualified manufacturers and importers to lawfully transfer machine guns for further manufacturing or for repair. The complete text of the ruling can be found on ATF’s website at http://www.atf.gov/sites/default/files/assets/Library/Rulings/Firearms/atf_ruling_2014_-_manufacturing-inventory_of_machine guns_for_le_and_military_2.pdf.

Background

Section 922(o) of the GCA makes it unlawful for any person to transfer or possess a machine gun. The only exemption to this prohibition is a transfer to or by, or possession by or under the authority of a Federal, State, or local government agency. ATF regulations implementing Section 922(o) provide that qualified manufacturers may manufacture machine guns for sale or distribution to a Federal, State, or local government agency so long as they are registered in the National Firearms Registration and Transfer Record, and their transfer is restricted to the distribution for official use of Federal, State, or local government agencies. The regulations also authorize the manufacture of machine guns for purposes of exportation in compliance with regulations of the Department of State issued under the Arms Export Control Act.

ATF has consistently interpreted Section 922(o) to allow qualified manufacturers to stockpile machine guns they manufacture for sale to Federal, State, and local government agencies or for export. These positions are outlined in ATF’s National Firearms Act Handbook (the “NFA Handbook”), E-Publication 5320.8, Section 7.5, also available on ATF’s website.

Prior to issuance of Rul. 2014-1, ATF allowed qualified manufacturers and importers to transfer machine guns to other qualified licensees for purposes of further manufacture, repair, alteration, or integration into another defense article. In fact, Section 7.6.1 of the NFA Handbook states that qualified NFA manufacturers may contract with other qualified manufacturers to produce machine guns for sale to Federal, State, or local government agencies or for dealer sales samples. This section of the NFA Handbook goes on to state that a variance is required for these types of transfers, as the regulations in 27 C.F.R. 479.105 limit the number of machine guns that may be transferred. Accordingly, section 7.6.1 indicates that both manufacturers who participate in the production of the machine guns must obtain a variance authorizing the transfer from one manufacturer to the other pursuant to 27 C.F.R. 479.26.

Historically, a number of manufacturers have received variances from ATF authorizing the transfer of unlimited quantities of machine guns between licensed manufacturers during the manufacturing process pursuant to the provisions outlined in the NFA Handbook. However, beginning in 2012, ATF officials made statements at industry trade shows concerning the legality of such transfers under Section 922(o). At the Sporting, Hunting, and Outdoor Trade Show (SHOT Show) held in Las Vegas, Nevada, in January, 2012, ATF officials announced the agency’s position that allowing licensed manufacturers to transfer machine guns to a second qualified manufacturer for additional manufacturing processes is inconsistent with the plain meaning of Section 922(o). These officials announced that the agency would be providing written clarification at some point in the future. ATF Rul. 2014-1 appears to be this clarification.

Holdings of ATF Rul. 2014-1

The ruling has three separate holdings, outlined below:

1. Stockpiling of machine guns for future sale. The first holding states that licensed manufacturers who are properly qualified under the National Firearms Act (NFA) may manufacture and stockpile machine guns for future sale to Federal, State, or local government agencies without first obtaining a specific contract or order from such government agency, provided the machine guns are properly registered under the NFA and are only distributed for the official use of such government agencies.

2. Delivery of machine guns to a second manufacturer-maintaining constructive possession. The ruling states that qualified manufacturers may deliver machine guns (including frames or receivers) to another qualified manufacturer but may not transfer such firearms to the second manufacturer without violating Section 922(o). However, the ruling states that the delivery to a second manufacturer will not violate Section 922(o) if the first manufacturer maintains continuous dominion or control over the machine guns.

3. Transfers of machine guns between manufacturers when the second manufacturer has a government contract or “official written request” from a government agency. The last holding in ATF Rul. 2014-1 states that a manufacturer may transfer machine guns it has manufactured to another qualified manufacturer if the first manufacturer has a government contract or official written request that meets the following requirements:

  • The document is from a Federal, State, or local government agency and is on official letterhead; The document states that the first manufacturer is an agent of the government agency authorizing the transfer of the machine guns to the second manufacturer;
  • The document is signed and dated by an authorized government official and includes the official’s title and position;
  • The document states that the firearms to be transferred are machine guns as defined by Federal law. The document states that the machine guns to be transferred are particularly suitable for official use by the requesting Federal, State, or local government agency; and
  • The document includes a statement that the Federal, State, or local government agency requests and authorizes the manufacturer to transfer the machine guns to and/or from other licensed manufacturers for assembly, repair, development, testing, other manufacturing processes, or storage, as the case may be, for that government agency.

The ruling states that manufacturers who wish to transfer machine guns under the third holding, as outlined above, must attach a copy of the government contract or other official written request to the transfer application submitted to ATF’s NFA Branch.

CAUTION! ATF Rul. 2014-1 Modifies ATF Rul. 2004-2

The last paragraph of ATF Rul. 2014-1 states that ATF Rul. 2004-2 is “clarified” with respect to the documentation required under the GCA for qualified importers to transfer an imported machine gun to another qualified licensee for inspection, testing, calibration, repair, reconditioning, further manufacture, or incorporation into another defense article. This “clarification” will significantly affect the ability of U.S. companies to service the repair needs of their foreign customers.

In Rul. 2004-2, ATF used its variance authority under the GCA and NFA to establish a procedure for qualified importers to bring exported machine guns and other NFA firearms into the U.S. temporarily for purposes of inspection, testing, calibration, repair, or incorporation into another defense article. The ruling recognized the fact that many manufacturers have a legitimate need to import machine guns they exported to foreign law enforcement agencies for purposes of repairs under warranty, recalibration, or incorporation into another defense article, and that such importations are necessary for national defense. The ruling further indicated ATF was aware most of these temporary importations take place pursuant to the Department of State’s International Traffic in Arms Regulations at 22 C.F.R. Part 120-130. However, ATF expressed concern in the ruling that importers utilizing such regulations were not complying with the registration provisions of the NFA, which help ensure the security and accountability of the firearms while within the U.S. Accordingly, ATF Rul. 2004-2 required importers temporarily importing NFA firearms under State Department requirements to also register the firearms on ATF Form 2.

ATF Rul. 2004-2 also addressed transfers of machine guns following their temporary importation. The ruling stated that conveyance of temporarily imported NFA firearms does not amount to a “transfer” as that term is used in the NFA. Accordingly, the ruling stated that no transfer application must be submitted to ATF to lawfully accomplish such conveyances. The ruling did not specifically address the requirements of Section 922(o). However, the ruling clearly authorized the conveyance of imported machine guns to a properly qualified manufacturer for repair, remanufacture, or any of the other purposes outlined in the ruling.

It is important to highlight that the “clarification” of ATF Rul. 2004-2 by ATF Rul. 2014-1 effectively OVERRULES the transfer/conveyance language in the 2004 ruling. According to the 2014 ruling, ATF considers a qualified importer’s delivery of an imported machine gun to another FFL to be a transfer that violates Section 922(o), absent a government contract or other document specifically authorizing the transfer of the imported machine gun to a manufacturer. Because the machine guns will be the property of foreign governments, obtaining a written authorization from a Federal, State, or local government agency may be difficult. Accordingly, it will be challenging for importers to utilize the procedure authorized in ATF Rul. 2014-1 to lawfully transfer temporarily imported machine guns to another manufacturer.

CAUTION! Prior Inconsistent Rulings Modified

ATF Rul. 2014-1 also modifies any prior letter rulings or marking variances that are inconsistent with the positions outlined in the ruling. Consequently, businesses that operate under privately issued variances that authorize machine gun transfers between qualified manufacturers may no longer rely upon such variances.

Impact of ATF Rul. 2014-1 on Federal Firearms Licensees

The practical impact of ATF Rul. 2014-1 on the operations of Federal firearms licensees is summarized below.

1. Manufacture and stockpiling of machine guns. Qualified manufacturers may continue to manufacture and stockpile machine guns for future sale to Federal, State, and local government agencies.

2. Transfers of machine guns to a second manufacturer. ATF marking variances or private letter rulings specifically authorizing the transfer of machine guns from one qualified manufacturer to another qualified manufacturer are no longer valid. Licensees who utilize the services of another qualified manufacturer to manufacture machine guns must have an employee accompany the registered machine guns to the premises of the second manufacturer and maintain continuous dominion and control over the machine guns while the manufacturing operations are conducted. Alternatively, the first manufacturer may obtain a government contract or other document specifically authorizing the transfer to the second manufacturer. Such a document must meet all requirements of ATF Rul. 2014-1 as set forth above and must be submitted to the ATF National Firearms Act Branch with the Form 3 transfer application.

In the case of machine guns manufactured for export, transfers to another qualified manufacturer must meet all the requirements outlined above. It may be difficult to obtain a contract or other written authorization from a Federal, State, or local government agency specifically authorizing the transfer to a second manufacturer when the machine guns are being made for export to a foreign customer. The only alternative to this requirement is for the first manufacturer to maintain continuous dominion and control over the machine guns while they are on the premises of the second manufacturer.

3. Transfers of machine guns temporarily imported under Department of State requirements. Importers who are properly qualified under the GCA and NFA may continue to temporarily import machine guns exported to foreign governments for purposes of repair, recalibration, and incorporation into another defense article. These temporary imports must comply with ITAR regulations in 22 C.F.R. Parts 120-130 and be registered on ATF Form 2 within 15 days of release from Customs custody. However, these machine guns may not be transferred to another qualified manufacturer absent a contract with a Federal, State, or local government agency specifically authorizing the transfer to the qualified manufacturer OR a written authorization that meets all the requirements set forth in ATF Rul. 2014-1. As with transfers of machine guns manufactured for export to foreign customers, it may be difficult to obtain such an authorization from a domestic government agency when the machine guns are owned by a foreign customer. Alternatively, manufacturers or importers who have a need for another qualified manufacturer to perform repair or manufacturing operations on temporarily imported machine guns must maintain continuous dominion and control over the weapons while on the premises of the qualified manufacturer to avoid both licensees violating Section 922(o).

4. Impact of ATF Rul. 2014-1 on Repair of Machine Guns. ATF’s National Firearms Act Handbook, section 9.5.1, “Repair of Firearms,” states that ATF does not consider the temporary conveyance of an NFA firearm to an FFL for repair to be a “transfer” under the NFA. Accordingly, this section states that a transfer application is not required to convey the firearm for repair or to return the repaired firearm to its owner/possessor. The issuance of ATF Rul. 2014-1 raises questions as to the continued application of this position as to machine guns subject to control under Section 922(o). ATF advises that the ruling changes ATF’s position on repairs of machine guns in certain situations. These situations are outlined below.

Temporary Imports. As stated above, machine guns temporarily imported under State Department regulations may not be delivered to another FFL for repair absent a written authorization from a Federal, State, or local government agency expressly authorizing the transfer to the second FFL. ATF views such deliveries as a “transfer” as that term is used in Section 922(o) and the NFA, and they must be accomplished with a Form 3 transfer application with the written authorization attached. Given the difficulties in obtaining such an authorization, the best option for facilitating repair of temporarily imported machine guns will be for an employee of the importer to retain continuous dominion and control over the weapons while on the premises of the repairing FFL to avoid violating the law.

Manufacturers Discontinuing Business. The ruling will affect the repair of machine guns acquired by a qualified FFL pursuant to the provisions of 27 C.F.R. 479.105(f). This section of the regulations requires a qualified manufacturer, importer, or dealer, prior to discontinuing licensed business, to transfer, in accordance with the NFA, machine guns to a Federal, State, or local government agency or to another qualified manufacturer or importer. Alternatively, the FFL going out of business may transfer the registered machine guns (in limited quantities) to a qualified dealer as sales samples pursuant to 27 C.F.R. 479.105(d). Machine guns acquired by a qualified FFL pursuant to section 479.105(f) will not be transferred pursuant to a contract or letter from a Federal, State, or local government agency authorizing possession by the acquiring FFL. Accordingly, the delivery of such machine guns to another licensee for repair would be a transfer that would violate Section 922(o). The only option for facilitating repair in this situation will be for the registrant to maintain continuous custody and control over the machine guns during the repair process.

Machine guns Acquired as Sales Samples. Machine guns may be lawfully acquired as dealer sales samples pursuant to regulations in 27 C.F.R. 479.105(d). This regulation requires FFLs to obtain a letter from a Federal, State, or local government agency expressing a need for a particular model or interest in seeing a demonstration of a particular weapon (a “law letter”). ATF advises that the law letter authorizes the FFL-registrant to deliver the machine gun to another qualified FFL for repair and that such delivery is a “conveyance” rather than a “transfer.” As noted in the NFA Handbook, section 9.5.1, a transfer application is not required to convey a machine gun for repair or to return the repaired machine gun to the registrant. However, in order to avoid any appearance that a transfer has taken place, ATF recommends that a Form 5 application be submitted for approval prior to conveying the machine gun for repair. It is also recommended that the FFL making repairs obtain an approved Form 5 to return a repaired machine gun. If Form 5’s are not used, the parties should maintain documentation showing that the conveyance was for the purpose of repair. For dealer sales samples requiring repair, ATF Rul. 2014-1 did not change this procedure.

Delivery of Machine Guns for Repair by One FFL to a Second FFL. Assuming the delivery of machine guns to a qualified manufacturer for repair is lawful, the next question is whether the manufacturer may lawfully deliver the machine guns to a second manufacturer. It may be necessary, for example, for the first manufacturer to obtain the services of a second manufacturer for purposes of refinishing or heat treating the machine gun. ATF advises that such deliveries amount to “transfers” and are lawful only if there is a specific contract or other written authorization from a Federal, State, or local government agency that authorize the delivery to the secondary manufacturer. Such transfers must be accomplished on ATF Form 3 with the written authorization attached. For repair of dealer sales samples, ATF advises that a delivery/conveyance to the first qualified FFL for repair is permissible, but the FFL may not convey the machine guns to a second qualified FFL without violating Section 922(o). ATF further advises that machine guns in the hands of law enforcement agencies that require repair may continue to be conveyed to a qualified FFL for repair without a transfer occurring, but delivery to a second FFL would amount to a “transfer” that also requires a transfer application supported by a specific written authorization.

Conclusion

ATF Rul. 2014-1 significantly changes the way importers and manufacturers of machine guns should conduct business, both as to machine guns distributed domestically and those that are exported. As violations of the GCA and NFA may result in significant civil and criminal penalties, licensees should take care to avoid unintentional violations of the law.

(The information in this article is for informational purposes only and is not intended to be construed or used as legal advice).

This article first appeared in Small Arms Review V19N1 (January 2015)

Author

  • SAR Staff
    SAR Staff

    View all posts
Tags: JANUARY 2015Johanna ReevesLegal NewsLegally ArmedTeresa G. FicarettaV19N1
Previous Post

New Review: V19N1

Next Post

Bushnell Rangefinder

Next Post
Bushnell Rangefinder

Bushnell Rangefinder

TRENDING STORIES

  • VALKYRIE ARMAMENT BELT-FED CONVERSION

    VALKYRIE ARMAMENT BELT-FED CONVERSION

    0 shares
    Share 0 Tweet 0
  • EAST GERMAN WIEGER STG RIFLE

    0 shares
    Share 0 Tweet 0
  • The Complete Guide To Colt M-16 Models: Part I

    0 shares
    Share 0 Tweet 0
  • Forgotten M16A1 Rifle Manufacturers: GM/Hydra-Matic and Harrington & Richardson – Part I

    0 shares
    Share 0 Tweet 0
  • The Second Generation AR57: Drop-in 5.7 Upper For Your AR

    0 shares
    Share 0 Tweet 0

RECENT POSTS

SIG Sauer’s Full-Size Compact P365 “Fuse”

SIG Sauer’s Full-Size Compact P365 “Fuse”

June 27, 2024
The Importance of Offhand Shooting

The Importance of Offhand Shooting

June 25, 2024
BOOK REVIEW – The Collector’s Guide to the SKS

BOOK REVIEW – The Collector’s Guide to the SKS

June 20, 2024
True to Form: The Tisas 1911A1 ASF

True to Form: The Tisas 1911A1 ASF

June 18, 2024
Setting the Record Straight on the Fedorov Avtomat

Setting the Record Straight on the Fedorov Avtomat

June 6, 2024

QUICK LINKS

  • About Chipotle Publishing
  • About Small Arms Review
  • Advertise with Us
  • Write for Us

CONTACT DETAILS

  • Phone: +1 (702) 565-0746
  • E-mail: office@smallarmsreview.com
  • Web: www.chipotlepublishing.com
  • Chipotle Publishing, LLC 631 N. Stephanie St., No. 282, Henderson, NV 89014
Small Arms Review

FOLLOW US

  • Privacy Policy
  • Disclaimer

© 2022 Chipotle Publishing | All Rights Reserved

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • Home
  • Articles
    • Guns & Parts
    • Suppressors
    • Optics & Thermals
    • Ammunition
    • Gear
    • News & Opinion
    • Columns
    • Museums & Factory Tours
    • ID Guides
    • Interviews
    • Event Coverage
    • Articles by Issue
      • Volume 1
      • Volume 2
      • Volume 3
      • Volume 4
      • Volume 5
      • Volume 6
      • Volume 7
      • Volume 8
      • Volume 9
      • Volume 10
      • Volume 11
      • Volume 12
      • Volume 13
      • Volume 14
      • Volume 15
      • Volume 16
      • Volume 17
      • Volume 18
      • Volume 19
      • Volume 20
      • Volume 21
      • Volume 22
      • Volume 23
      • Volume 24
  • The Archive
    • Search The Archive
  • Store
    • Books
    • Back Issues
    • Merchandise
  • Events
  • About
    • About Small Arms Review
    • About Chipotle Publishing
    • Contact Us
    • Other Publications
      • Small Arms Defense Journal

© 2022 Chipotle Publishing | All Rights Reserved

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.

Redirecting to External Website

You are leaving the Small Arms Review website and will be redirected to an external link in a 5 Seconds.
VISIT NOW!