ATF Offers an Olive Branch to the NFATCA

The last year and a half has been a roller coaster ride for ATF on many fronts. From Fast and Furious to a host of new players and a stance with the industry: the likes of which we have never seen before. To say that they have maintained an arm’s length from us would be an understatement. We wrote about this stance and wondered why after so many years of such close work, why the Bureau took such an unfriendly stance with the entire industry. As you know, the NFATCA, F.A.I.R., and the NSSF have worked together over the last seven years to break down the barriers that had existed for so long. Not only have industry representatives worked closer than ever before with ATF members but ATF members have worked on the inside of the industry at every facet, in order to better understand our operations. This effort has yielded not only some rather serious results, like the NFA Handbook, a draft of the Firearms Technology Handbook, and numerous regulations, but has also served to save many issues that could have had catastrophic results, if not handled as a joint effort between ATF and the industry.

As with any organization, the make up often changes and personnel that you worked hard to develop a great relationship move on. People get promoted, people retire, and in many cases the organization shifts, to continue to make progress. What is important in this make up is not only a rock solid board of directors at the NFATCA level but a rock solid management team at ATF that can work closely with industry members to make change in a positive direction – change that is reflective in better public safety and change that encourages growth in the industry, which changes how the regulatory process works. Tremendous efforts in this arena have occurred during the last few years which have made both employees at ATF and members of the industry take notice that this process can in fact work, especially if we move together. The problem occurs either when someone in the industry or someone inside ATF takes on a position that this effort is not as beneficial as one would believe. During the last two years new appointments have occurred that have made some members of ATF sit back and take the position that their role is to regulate, and that getting closer to the industry that they must regulated is not always the best solution to any problem. This happens in most cases when appointments are made to positions where a new member of the management team is not gun friendly and operates from the position that more regulations are necessary from a greater distance. The end result in many cases is catastrophic. Even the best relationships will break down under this kind of regulatory strain.

We know that working together within the congressional boundaries that are allowed is the only way that we will make the progress we both need to make the industry a safer place. That has been the NFATCA goal for nearly seven years and we will continue to push in that direction. For about two years now the NFATCA and our sister organizations have been working to find more appropriate ways to regulate the firearms business with the laws and our Constitution, and continue to build our relationship with the government. We spent the first five years of our existence tearing down the wall that kept us from working closer to ATF and we are not about to give up any ground unless we are forced to. Time and patience often yield some phenomenal results, and so was the case in October this year.

From a deafening silence, the NFA-TCA received a call in October by two members of the executive ATF staff. That invitation focused on a dinner that would serve the purpose of getting ATF and the industry back to the table to discuss refueling the engine of success through top level briefs and discussions. It was a welcome call and the ensuing discussion has yielded results that have been missing for two years. In our first meeting and the follow-on sessions we have addressed many of the issues which are concerns for the industry in making forward progress. Items that we discussed included status of the impending drop of the CLEO signature, defining small arms and small arms ammunition, among a few. The beginning result of these sessions is to establish a dialogue that continuously focuses on the needs of both sides. The industry works closely with the various branches to establish requirements for new issues and the Bureau is working closely with the industry to address any needs for new policy or procedures that may affect industry operations. This dialogue has yielded several great successes and there are many more in the works. Specific challenges with the NFA and FTB branches are discussed and potential solutions discussed that both parties are working to come to a workable solution. These issues are all of the things that the NFATCA came to the table seven years ago to work closer with the industry in resolving.

At this writing, ATF and the industry are working diligently, almost on a daily basis, to resolve a number of issues. Having a more powerful presence with more factual material at NFATCA events is just one example of ATF is coming to the table. Soon to come will be Webinars specifically designed for the NFA community, staged by ATF. These and many more events will be forthcoming in the future. All, to bring us back together to work as a team, making life in the firearms industry easier for everyone. Many of these results will be seen at Small Arms Review of the West, the SHOT show, and Knob Creek, and the NRA show in 2012. Together the NFATCA and ATF are truly working the issues as a team.

Come share in the fun and the activities necessary to support the industry’s relationship with ATF. Come join the NFATCA today and help make a difference. The opportunities are there for the taking. Visit us at www.nfatca.org.

During the last several years many dealers across the U.S. have run into compliance questions which seem to be impossible to get the correct information to avoid getting jammed up during an inspection. There are many more questions than there are answers in most cases. Most of us call someone else that is a close dealer friend of ours or if you’re fortunate enough to have the right kind of relationship with your local ATF office, you may get the right answer to any number of your concerns. Most of the time the issues are simple and have simple answers but again the real issue is having access to the right resource to get the answer to an issue that in many cases just plain keeps you up at night. Most of us that have been in the business for a number of years have found it critical to keep the right resources handy so that when you have an issue you can call on any number of friends that will most likely have the answer you need. In many cases the longer you are in business the more you learn to check several sources to find just the right answer that makes the best sense. So, for example, getting the answer to a simple question that isn’t crystal clear in the “White Book” about, how to file my 4473s is not something that is abundantly clear, even in the NFA Handbook. As most of us know the more questions that we ask, the more answers the NFATCA can provide in now the third iteration of the NFA Handbook. The major point in this discussion is the fact that most of us just don’t have the right source to get the information that we need.

This is all well and good but the one thing that stands out like a sore thumb is the fact that we have never put an effort into figuring out how to collectively put all of our energies into a resource that anyone can get to, in order to find the correct information on those things that keep us up at night.

A about three months ago the NFATCA board of directors elected to capitalize on our own collective experiences and put together a resource pool that any dealer can have access to, to resolve the many issues that arise while trying your best to follow all of the NFA processes and procedures. That resource has been available for a long time now with the NFATCA website where an abundance of information is available, just for the asking. What I find more frequently than not is that many don’t take advantage of this resource by simply registering on the site and posing the simple questions that can easily be answered. The discussion blogs on the web site are easy to access and we continue to encourage all of you to log on and ask away. Simply remember the motto of the NFATCA, “Power through experience.” Keeping that in mind we have made a tremendous effort to offer the entire industry an opportunity to ask their questions.

Unfortunately, there has been very little effort from anyone to take advantage of the web site to get to the information that is sorely needed. As I mentioned earlier, questions from the simplest to the most complicated issues can be addressed on our web site from a variety of personnel that are willing to assist with any question. Most of our information either comes from experience or the many contacts and relationships that the NFATCA have developed within ATF.

Given the fact that we have offered to provide a host of information on our web site, there are still a lot of bashful observers that just won’t come forward and ask the questions. With that in mind the NFATCA is initially creating a monthly conference bridge where interested parties can jump on a conference call and participate or listen to the many compliance issues and concerns that dealers or collectors may have across the country. This capability will allow you to call in on a conference bridge and ask and get answers to the many questions that our community may have about compliance. So as not to put any one person on the spot from ATF on such a call, the NFATCA will collect any issue that we address on the calls that can’t seem to be answered and move those issues forward for appropriate responses with ATF. This will allow all of us to get the answers we need from the right personnel in a timely basis. Results of these discussions can potentially show up in an update to the NFA Handbook or potentially a clarification in a ruling or position ATF has taken on compliance. Keep in mind again; the objective behind these calls will be to clear up many of the issues or complications dealing with compliance. Anyone interested will be welcome to join us and participate. The NFATCA looks at this opportunity as a venue to allow dealers, collectors, and individuals nationwide to get the answers they need.

This is another innovative opportunity the NFATCA is offering to the entire industry. We hope that you will join us as we announce the process and the methodology of offering this service at Knob Creek this fall. Come join us for yet another powerful play to better serve the entire industry at www.nfatca.org.

ATF has announced that the National Firearms Act (NFA) Handbook, the collaborative effort of the ATF and the National Firearms Act Trade and Collectors Association (NFATCA), has recently been updated and the revised version is now available on the ATF website: http://www.atf.gov/firearms/nfa/nfa_handbook/index.htm.

The NFA Handbook is no longer available in a printed version from ATF. ATF’s goal is to ensure the regular update and availability of this document without going through the time intensive and costly process of printing. This will result in the continuous availability of a more current and accurate guidebook.

The updates include:

• Chapter 1 – a revision to section 1.6 to include the new address and telephone numbers for the Federal Firearms Licensing Center.
• Chapter 6 – a revision to section 6.4, Approval of Form 1, and a new section 6.8, Withdrawal or Cancellation of an ATF Form 1 and Refund of Making Tax.
• Chapter 7 – a revision to section 7.4.4, Obtaining variances to the marking requirement, and its subsections.
• Chapter 9 – a revision to sections 9.4.2.2, Transfers of NFA firearms to persons other than an individual or an FFL and special (occupational) taxpayer, 9.5.1.1, Repair of firearm silencers, 9.8, U.S. Government-owned firearms, and 9.12, Are FFLs/SOTs required to initiate a background check of the transferee under the Brady law in connection with the transfer of an NFA firearm?, and a new section 9.14, Transferable Status and the Form 10.
• Chapter 10 – a new section 10.1.5, DEWATS, and 10.1.5.1, Reactivation of DEWATS.
• Chapter 13 – a revision to section 13.7, Reporting information in response to ATF trace requests.
• Chapter 14 – a revision to section 14.3, Disposition of “post-1986 machineguns.”
• Chapter 15 – a revision to section 15.2.1, Criminal.

CA Suit Seeks to Restore Carry Rights

The Second Amendment Foundation, The Calguns Foundation and three California residents have filed a lawsuit seeking to vindicate the right to bear arms against arbitrary state infringement.

Nearly all states allow qualified law-abiding citizens to carry guns for self-defense, but a few states allow local officials to arbitrarily decide who may exercise this core Second Amendment right. In the action, Plaintiffs challenge the policies of two California Sheriffs, in Sacramento and Yolo counties, who reject the basic human right of self defense by refusing to issue ordinary people gun carry permits.

Attorney Alan Gura, representing the plaintiffs in this case, said, “It’s a shame that these Sheriffs don’t think that self-defense is a ‘good cause’ to exercise the right to bear arms, but we’re confident the Second Amendment reflects a better policy.”

Added co-counsel Donald Kilmer, “The California carry licensing system is being abused by some officials who are hostile to self-defense rights. The police can regulate the carrying of guns, and that includes preventing dangerous people from being armed. Complete deprivation of the right to bear arms, however, is not an option under our Constitution.”

“The Supreme Court’s decision last year in the Heller case shows that there is both a right to keep arms and a right to bear arms,” said SAF founder Alan Gottlieb. “In most states, authorities do not deny a license to carry an operable firearm to any law-abiding applicant who completes training and a background check. This is also the practice throughout much of California. These two Sheriffs must respect the constitutional rights of their citizens to bear arms.”

S&W Reports Increased 3rd Qtr. Sales

Smith & Wesson Holding Corporation, parent company of Smith & Wesson Corp., the legendary 157-year old company in the global business of safety, security, protection and sport, has announced financial results for its third fiscal quarter ended January 31, 2009.

Net product sales for the three months ended January 31, 2009 were $83.2 million, a $17.1 million, or 25.9%, increase over net product sales for the three months ended January 31, 2008. Net income for the third fiscal quarter was $2.4 million, or $0.05 per fully diluted share, compared with a net loss of $1.8 million, or $0.04 per share, for the comparable quarter last year. Adjusted EBITDAS, a non-GAAP financial measure, was $9.2 million for the third quarter, compared with $3.7 million for the third quarter of fiscal 2008.

Total firearms sales for the third quarter were $78.5 million, an increase of $16.9 million, or 27.5%, over the third quarter of last year. Pistol sales increased 45.7% to $24.9 million, driven by continued consumer demand, law enforcement adoption of the M&P polymer pistol line, and strong consumer sales of the Sigma pistol line.

Sales of M&P pistols increased 77.1% for the third quarter. M&P tactical rifle sales increased by 111% to $8.8 million for the third quarter as demand for this product remained strong in both the consumer and law enforcement channels. Total revolver sales were $22.3 million, an increase of $7 million, or 45.4%, versus the comparable quarter one year ago. Sales of non-firearm accessories, including handcuffs, totaled $4.7 million, a 4% increase over non-firearm accessory sales of $4.5 million for the third quarter last year.

Hunting firearm sales of $6.7 million represented a decline of $5.8 million, or 46.4%, from the comparable quarter in the last fiscal year. Hunting products continued to be negatively impacted by a number of factors, including their position in the consumer discretionary marketplace and a distribution channel that is buying cautiously.

Michael F. Golden, President and Chief Executive Officer, said, “I am pleased to report these very positive results for our third fiscal quarter. Our handgun and tactical rifle products have consistently delivered favorable results throughout the past several quarters, and during the third quarter, we experienced significant increases in the consumer demand for these products. Despite continuing weakness in the overall economy, we focused on our strategy to grow our business in the consumer and the professional channels, and we launched some important new products. At the same time, we addressed recent, very strong demand, for our pistols, revolvers, and tactical rifles. In fact, sales of handguns and tactical rifles into our consumer channel for the third quarter grew 62% over the prior year. We delivered solid profits, and we made significant progress toward bolstering our balance sheet by reducing our inventories and effectively managing our accounts receivable, which resulted in a strengthening of our cash position.”

The author publishes two of the small arms industry’s most widely read trade newsletters. The International Firearms Trade covers the world firearms scene, and The New Firearms Business covers the domestic market. Visit www.FirearmsGroup.com. He may be reached at: FirearmsB@aol.com.

This time a year ago everyone was celebrating the introduction of the NFA Handbook and a two year wait was finally over. During the last year we have slowly gathered revisions and made updates to the handbook and we wanted to take the time to review the new updates and provide the NFA community with news concerning upcoming events. As we approach the end of ’08, the NFATCA is already planning ’09 and working on new issues that we want to share with the entire community as we move forward.

Before we look at the specifics of the updates we want to make certain that everyone knows how to obtain these revisions and get them into their handbooks. At any show where the handbooks are sold you will be able to purchase the insert for a nominal fee and follow the directions in getting them into your existing handbook. Everything is color coded so you can easily find and read the new revisions for the new information. You will notice in the package that your table of contents has also been updated and the appropriate pages should be replaced. Updates or a new version of the complete NFA handbook can also be purchased off the NFATCA website at www.nfatca.org. In addition to the availability through major guns shows and our web site, the full PDF version of the document may be downloaded through the ATF web site.

For the first update to the handbook you can look for the following changes to the information:

• All new versions of Forms 1, 2, 3, 4, 5, 9, 10, 5330.20, 5320.20 and 5630.7 representing the change in address information for future use.
• Modifications to section 9.12 addressing the Brady requirements when a suppressor is permanently attached to a rifle or pistol.
• Modifications to 9.14 and additional information on a Form 10 and how this may or may not have an impact on the restriction of an NFA item.
• The first addition of information on trusts and corporate transfers. Please note that this information will be given a lot more attention in the next update.
• Modifications to the language providing further clarification on 9.8 U.S. Government Owned Firearms.
• Modifications to 13.7 Reporting Information in response to ATF Trace requirements.
• Modification to 15.2.1 concerning clarification of the criminal penalties language.
• Modifications to 1.6 with updates to provide new information on new telephone numbers and contact information on the Firearms Technology Branch (FTB), The Licensing Center, The National Firearms Act (NFA) Branch, and the Firearms and Explosives Imports Branch.
• Additions of 10.1.5 and 10.1.5.1 dealing with additional information on dewats and reactivation of dewats.
• Addition of new information concerning how to correspond with the NFA and FTB branches of the BATFE.

Based on the information that we have received from the industry and with work in progress with ATF, these are the first major changes that we are providing in this first update. In addition, we are already working up new sections for the handbook that will include a lot of good information on how to fill out all types of Forms and a comprehensive set of instructions on how to complete Forms using a corporation or a trust. Other critical information concerning letters to support Post Sample requests and other great sources of information are already planned for the next release.

We are also pleased to let everyone know that thanks to the efforts of Rick Vasquez, Assistant Chief, Firearms Technology Branch, the first and second chapters of the FTB Procedures manual are completed and are under review by both NFATCA council and ATF council. This next publication represents a monumental undertaking and will be the next major publication available to the NFA community.

So we move forward with more information and a growing relationship with ATF to support the future of all NFA owners. As we grow, so do the requirements for our time and our money. It is a growing membership that makes us stronger and is critical to our continued success. Come join us to strengthen the NFA community and work toward a common cause in protecting your rights and those of our sons and daughters. Always remember: “United We Stand, Divided We Fall.”

Visit us today at any major gun show or at WWW.NFATCA.ORG and join our efforts to build a better relationship with the entire NFA community, both civilian and government.

For the last couple of years the NFATCA has had the fortune of working extremely close with multiple branches within the BATFE with an extremely high degree of success in establishing new relationships, breaking down old barriers, and making new friends in places where we have been afforded the opportunity to make a difference for our community. We have initiated discussions with the highest level officials, including Director Sullivan. We have been very fortunate to have been invited into offices to have discussions on issues that would have never been entertained ten years ago. All of the work and the energy that we have expended during the last three years is about to change with the evolution of not only the politics in our country but with some major changes inside the agency.

In an effort to keep everyone informed about the changes, we wanted to summarize some of the details of whom and what is happening within the agency.

Let’s start with a long time friend who was absolutely instrumental in helping the NFATCA break down a lot of the communication barriers in the early stages of the development of the NFATCA, Mr. Ken Houchens. Ken has left the NFA Branch for a promotion to the DIO for the Northeastern Region of the United States. Ken is currently working out of the Boston regional office. Gary Kirchoff had taken Ken’s place for 120 days while the NFA Branch looked for a successor for Ken. We were hoping that Gary would stay in this position but Gary has announced that he will not seek this position permanently. Here lies the drop in our first line of allies at ATF.

Most recently we were not surprised to find out that Lou Raden, the Assistant Director was leaving ATF for retirement. Lou also plowed a lot of new ground with the NFATCA and we will miss him and his never ending humor. He was an asset to our community and his presence will be missed.

Last, but certainly not least, there is a strong rumor on the hill that we may lose Audrey Stucko to a promotional opportunity within the Bureau. If this strategy falls in place, we will be missing some of the most important people that we have grown to work so closely with during the last three years.

We are thankful that we have been fortunate to also develop a string of relationships with new leadership such as John Spencer, Branch Chief at Firearms Technology (FTB). John has been a great addition to our working community and is working diligently in helping the NFATCA develop the FTB Procedures Manual. We all know what a strong influence Assistant Branch Chief, Rick Vasquez has been in the NFATCA efforts.

As I said, “The times, they are a changing.” As we approach the upcoming elections it is imperative the NFATCA maintain a strong presence whenever possible in the Bureau.

That is exactly what we are doing. With a strong presence through counsel and setting up meetings in Martinsburg and Washington we continue to carry the banner of breaking down the barriers and promoting a more open forum between the industry and BATFE.

I am not afraid of losing ground but simply keeping a hold of what we have managed to accomplish with all of the contacts we have made during the last several years. I know today that the only way that we can continue to better manage the relationships that we have developed is to continue to build new relationships at Martinsburg, Washington, D.C., and virtually every field office, whenever possible.

The only way we can maintain the ground we have gained and continue to move forward is with a strong presence in our membership. Being on the eve of elections and keeping a stronghold on our presence with ATF is more important now than ever. The membership roster within the NFATCA continues to grow, but the pace is ever so slow.

As we move forward, cultivate new relationships within ATF, and position ourselves to publish version 2.0 of the NFA Handbook and version 1.0 of the Firearms Technology Branch Procedures Manual, we need every NFA owner nationwide to step up and support the effort through membership. Join us today and help strengthen the numbers. Visit www.nfatca.net.

Technology Branch (FTB) Procedures Manual has become quite an undertaking and it is occupying many of our members time; in some cases nearly 100%. Developing this manual is also a tricky process since much of the written word will be used to assist in enforcing the law in cases where abuse of the system or procedures is in question. So it goes slowly, but at a calculated pace, to insure that the document that is produced is supported entirely by our own community and especially the Firearms Technology Branch. This is a new partnership and we are asking FTB, in light of an overburdening work load, to put in the time and attention to develop a product that will better align not only the NFA community but the entire firearms industry with ATF rules and regulations.

With FTB working literally hundreds of technology issues, the NFATCA is more than appreciative for the time and energy Branch Chief, John Spencer and Assistant Branch Chief Rick Vasquez are putting into this program. For many years now we all know that if you want and need help with a technology issue from FTB, the best way to get that help is in writing. Word of mouth with decisions that can affect the entire industry is a bad idea, so rightfully many years ago FTB issued the edict “put it writing.” This concept has opened the door to literally thousands of requests from gun owners and manufacturers from all over the United States and in some cases the world. With a minimum staff it is sometimes just plain difficult to keep the pace with the demand on the branch. For their efforts in giving the NFATCA and our community the time to get this job done we are truly grateful.

Parallel with the work on the FTB Procedures Manual, the NFATCA is addressing a number of other policy issues affecting all of us. The issues, once again, are those that affect the greater good for the entire community. Almost daily, we receive requests from individuals that need help. Unless the issue has far reaching effects on the community we work as hard as possible to refer you to proper counsel to get the help you need. We unfortunately don’t have the time or the resources to handle these types of requests. We are working diligently to assimilate a list of gun-savvy attorneys nationwide to help more and more of the community with issues that affect an individual.

The NFATCA Agenda for 2008

• The NFATCA is better aligning itself with the larger gun manufacturers and NFA programs that affect their operations.
• We are establishing a much closer relationship with the FAIR Trade group where we will jointly assess common strategies and goals in order to strengthen our numbers and have a stronger presence in negotiations with ATF on many issues.
• This year we will also cross the threshold between the NFA community and the regular gun community and begin to strengthen our presence on gun issues that affect all of us in this community.
• We will roll out the NFA title insurance program.
• We will issue the first set of updates to the NFA Handbook.
• We will issue the first draft on the NFATCA counsel support list. This listing will recommend attorneys nationwide for support in gun related issues that are handled on an individual basis.
• We will make our membership 500 strong.

In 2008, the FTB Procedures Manual will require about 55% of the NFATCA resources to get this project completed in late 2008 or early 2009. Another 25% of our resources are being focused on spreading the strength by recruiting the larger manufacturers and gun organizations that support the efforts of the entire gun community. The balance of our efforts is being used to support legislative activity and negotiations on a number of critical issues that we are working with ATF to resolve. Those issues we can not discuss at this writing but will continue to work to resolution to insure that the best of all of our interests are the focus of our efforts. As we close those issues, future columns will support the work involved and the outcome.

2008 will be an ever more powerful year for the NFATCA in strength of numbers and value to the community. The ride with the organization will be a powerful one in the light of a political agenda that is as uncertain as ever. The time to help us build this powerful strength to stand for those issues is NOW. Visit www.NFATCA.org and join us in our efforts that do affect you.

As most of you know by now, the NFATCA has been working diligently with the new Firearms Technology Branch Chief, John Spencer, and Rick Vasquez and his staff to develop the Firearm Technology Branch (FTB) Procedures Manual. Like the NFA handbook, our primary objective with the FTB Procedures Manual will focus on addressing many of the critical issues that need to be documented to assist anyone in our community in not breaking the law. We want to make certain that the things we need the most for reference are provided to the community to clear up any misunderstandings that we may have in the industry. We want to document the things that many of us think we already understand and know. We want to include everything from proper submissions to much of the information that our Firearms Attorney has included in his monthly The Legal Side columns in this publication.

The problem most of us experience is that this information is not always readily available. No one wants to wade through a ton of old magazines or old articles searching for information that in the end may not be what you really need. Out of pure frustration what most of us do is either consult a fellow dealer or manufacturer or we write a letter to the FTB and ask for clarification. Hence, the primary objective of the FTB procedures manual is to clear up any misunderstandings and to document procedures that you should follow whether it’s getting a new firearm approved for manufacture or getting a clarification on a modification you want to make to an existing weapons system.

We mentioned last month that we want to focus on developing information from many members of our own community concerning interests or concerns that you may have about the right way to do things in the firearms business.

Official Call for Help

The NFATCA has already, in cooperation with FTB, developed an outline that we are working from to get all of the information organized and written so that we have a comprehensive set of regulations out the door in version 1.0 of the first release. What we are missing is feedback from our own ranks on information or issues that you want included in this publication: hence the call for help. What we want to avoid is having the first version hit our ranks and to have everyone complain that we left something out critical to the message in this manual.

So in essence we are now saying, “Here’s your chance.” We are officially asking that anyone and everyone in the community submit information to the NFATCA on anything that you want to suggest that we include in the first volume of this procedures manual.

To submit information, simply log onto www.nfatca.org, log into the FTB Users Forum and input your suggestions. We want it all and are asking you to provide questions, issues, or information that you personally think would be helpful to be addressed. Once you submit the information we will review it and get back to you with any feedback, questions or other information that we feel might be useful in addressing the issue.

This is your opportunity to make the contribution or get an issue addressed for the entire community. The entire board of directors of the NFATCA is thoroughly enjoying the work with the FTB effort and we want to get our entire community involved.

As we gather the information, NFATCA board members are actually writing the text and beginning the collaborative review process with FTB, but we don’t want to miss anything. We need your help.

Watch for future articles describing the specifics on our progress.

Be a part of the NFA success story and join us at the NFATCA. (www.nfatca.org)

On June 12, version 1.0 of the NFA Handbook was made available on the ATF website. We encourage you to log onto the ATF website http://www.atf.gov/firearms/ nfa/nfa_handbook/ and download the file. It is important to read Ken Houchens explanation on the availability of the Handbook. As Ken says on the webpage, “Please be aware that the NFA Handbook is not available in a printed version. Our goal is to ensure the regular update and availability of this document without going through the time intensive and costly process of printing. This will result in the continuous availability of a more current and accurate guidebook.”

However, hard copies are available as an option and a printed version may be picked up at many of the events where the NFATCA has a presence. The hard copies will be available at a nominal fee to simply cover the cost of reproduction.

When the handbook first became available, the blogs and NFA sites were alive with chatter criticizing the effort as another attempt by the NFATCA of cavorting with ATF on regulations. The initial release generated a lot of negative chatter with no meat. A couple of NFATCA board members, and other industry personnel, delivered responses that almost instantly quelled the fury. In one particular case one of the harshest critiques was offered a free one year membership in the NFATCA to come forward and to assist in clarifying or suggesting revisions to the Handbook. Interestingly enough, our offer went unanswered and the criticism went quiet.

We all knew that no matter how much time or how many experts we called upon for the production of the Handbook, updates and or revisions were inevitable. We knew then and still know now that this effort is ongoing and that to assume that further revisions and clarifications would not be necessary would be ludicrous. We knew from the start that some mistakes would be inevitable and that there would be many clarifications necessary to continue to produce such a valuable resource.

We encourage the entire community, not just the NFATCA and its membership, to read the Handbook and to challenge any and all information that you read or interpret. Not only are we planning on making changes and clarifications to the Handbook but we plan on continuing to add new information as new issues and questions arise. Our readers and our community are the best resources for that information and we challenge everyone to support the effort and make whatever contribution you desire.

We have reached an agreement with ATF that we will deliver at least one update a year on the Handbook to keep our industry up to date with changes and new information. I will make certain that we address those updates in this article to keep everyone apprised of the efforts with the NFA Handbook. If you personally have read the Handbook and want to support or challenge the effort, I would suggest that you send suggestions on changes directly to the NFATCA via our website. We have arranged for a public forum on the website for all to use. You don’t need to be a member, but once you register you can actively work with the NFATCA via our website, to keep the Handbook up to date with comments or suggestions.

The NFATCA challenges each and every NFA owner to read and address their concerns openly allowing the entire community to keep this information up to date. Simply log onto http://nfatca.org/, register and provide as much feedback as you want. We welcome your input and your efforts to keep our community informed and up to date.

Better yet why not join the NFATCA today!

• The introductory chapter also mentions that the Firearms Owners’ Protection Act of 1986 amended the NFA definition of “silencer” by adding combinations of parts for silencers and any part intended for use in the assembly or fabrication of a silencer. As most SAR readers know, the 1986 Act also amended the 1968 Gun Control Act to prohibit the transfer or possession of machine guns (18 U.S.C. Section 922(o)). Exceptions were made for transfers of machine guns to, or possession of machine guns by, government agencies, and those lawfully possessed before the effective date of the prohibition, May 19, 1986.
• An explanation of What Constitutes “Firearms” under the NFA are detailed in Chapter 2, the types of shotguns, rifles, weapons made from a rifle or shotgun, Any Other Weapon, machine gun, silencer, destructive device, explosive device, large caliber weapon, and Curios and Relics. Also covered are applications to remove firearms from the scope of the NFA as collector’s items or by modification/elimination of components.
• Chapter 3 delves into the Registration of NFA Firearms and explains the National Firearms Registration and Transfer Record, including registration by state and local agencies, registration by makers, importers, and manufacturers as well as registration to transferees. Also covered is how to determine the registration status of an NFA firearm, lost or stolen registration documents, and correcting incorrect registration documents.
  
• The Taxes Imposed by the NFA are the subject of Chapter 4 to include making, transfer and special (occupational) taxes, exemption from tax, and the exportation of firearms.
• Chapter 5 details Qualifying to do Business in NFA Firearms including license fees, standards, registration by firearms manufacturers and exporters with the U.S. Dept. of State, etc.
• Chapter 6 covers the Making of NFA firearms by Non-Licensees and explains the preparation of ATF Form 1 and other subjects, including the reactivation of a registered unserviceable NFA firearm.
• The Manufacturing of NFA Firearms is the subject of Chapter 7 to include qualifying for a license, engaging in business in multiple locations, makers of destructive devices, registration exemption for fabricating articles for research and development, and the ATF firearm classification process.
• Chapter 8 goes into Importing NFA Firearms and explains the necessary licensing, payment of special (occupational) taxes, importation for use as a model by a registered manufacturer, importation as a sales sample, and marking requirements.
• The Transfer of NFA Firearms is explained in Chapter 9 to include the forms used for transfers, as well as transfer of silencers for repair, distribution of estate firearms, manufacturers’ use of contractors to perform work on firearms, etc.
• Chapter 10 covers Collectors of NFA Firearms Curios & Relics, transfers, acquisition and dispositions, etc.
• The Exportation of NFA Firearms is the subject of Chapter 11 to include the Arms Export Control Act, firearms and firearm component parts subject to the AECA, license requirements for permanent and temporary exports of defense articles, etc.
• Chapter 12 covers Recordkeeping including the manner in which registration documents must be kept, custody of NFA firearms by employees of FFLs/SOTs, etc.
• The Required Reports and Notifications to ATF for NFA businesses are covered in Chapter 13.
• Chapter 14 details the procedures that must be followed when Going-Out-of-Business.
• Chapter 15 warns of the Penalties and Sanctions for non-compliance with regulations.

Spanning nearly 200-pages, the NFA Handbook is available from the ATF website (www.atf.gov) or a reprint may be ordered from the industry trade journal, The International Firearms Trade by e-mailing: INTLFT@aol.com. The cost from IFT is $55. postpaid. Customers outside the U.S. must add $10 shipping.

AG Gonzales Proposes ATF Reforms

U.S. Attorney General Alberto R. Gonzales has announced the Violent Crime and Anti-Terrorism Act of 2007, a Dept. of Justice proposal. The bill provides greater flexibility in the penalties that could be imposed on federal firearms licensees who violate the Gun Control Act.

Specifically, the bill would establish additional, graduated sanctions for certain violations of the federal firearms laws, including suspension of federal firearms licenses and imposing civil monetary penalties. Such lesser sanctions will enable ATF to more effectively address violations of the Gun Control Act, the Justice Dept. has said.

Guidance on Post Office Box Addresses of Gun Buyers

ATF has issued an Open Letter to federal firearms licensees (dated June 7, 2007) advising on procedures to follow when a firearms purchaser presents an identification document showing only a post office box or rural route number as their legal address. Though the Form 4473 (Firearms Transaction Record) includes language stating that a post office box is not an acceptable residence address, it is possible to get a variance.

While the Form 4473 requires that the buyer’s residence address be provided, the term “residence address” is not defined in the law or regulations. Since non-licensed purchasers are generally restricted to their state of residence in acquiring firearms, ATF requires that the residence address provided on the Form 4473 be sufficient to identify the physical location of the purchaser’s residence in the event the firearm is the subject of a trace request. Persons in rural areas may have only a post office box or rural route number as their only legal address, but this does not necessarily mean that such persons are prohibited from buying firearms.

ATF says it wants to assist dealers in verifying the addresses of purchasers and will issue a variance to dealers (who request it) who may then transfer firearms to customers who can only provide a post office box or rural route number as their address. However, the following conditions must be met:

1. The FFL has information indicating the purchaser resides in a state where a post office box or rural route number is considered by the jurisdiction to be a legal residence address.
2. . The dealer has no reason to believe the purchaser is not telling the truth about his address.
3. The government-issued identification document of the prospective buyer must include a photo, date of birth and residence address.
4. After the variance is approved, the dealer must require the purchaser to indicate the actual physical location of his residence on the Form 4473.

FFLs may request authority to use this alternate method by sending a request in writing to: ATF, Firearms Programs Division, Room 7400, 650 Massachusetts Ave., N.W., Washington, D.C. 20226.

ATF Seizes Inventory of New Orleans Retailer

The owner and two employees of Elliot’s Gun Shop in the New Orleans area were arrested in mid-May by ATF and Secret Service special agents on charges of falsifying firearms records and aggravated identity theft. The store’s inventory and business records were seized.

Herman Eicke, 65, of Kenner, LA, the store’s owner, and employees Timothy Harris, 54, and Rebecca Zitzmann, 42, both of Jefferson, LA, were arrested without incident. Zitzmann was charged with falsifying federal firearms records and Eicke and Harris with aggravated identity theft.

The ATF investigation found that firearms purchased at Elliot’s had an extremely short “time to crime” – the time from the sale of the firearm to its recovery after use in a crime.

During the period March 1, 2002, to March 1, 2007, more than 2,300 firearms purchased at Elliot’s Gun Shop and its predecessor, Elliot’s Small Arms, were recovered by various law enforcement agencies in relation to crimes. Over 125 of these were related to murder investigations and more than 500 were related to crimes involving illegal drugs.

According to the criminal complaint, an informant and an undercover ATF agent posing as a ‘straw buyer’ were able to purchase a firearm from Elliot’s with Zitzmann’s assistance. Zitzmann illegally sold a handgun to the informant (according to the complaint), but allowed the undercover ATF agent to complete the ATF paperwork to make it appear that the agent purchased the gun.

In February 2005, ATF revoked a FFL held by Harris, who was operating the store as Elliot’s Small Arms. Prior to losing his license, ATF cited Harris on numerous occasions for failing to comply with federal firearms regulations regarding the sale of guns. Immediately after having his license revoked, Eicke, who had been an employee of Harris at Elliot’s Small Arms, obtained a FFL under the trade name of Elliot’s Gun Shop. An ATF undercover investigation reportedly revealed that Harris was still running the business even though Eicke held the license.

ATF announced it also uncovered an Eicke-Harris scheme that included forging law enforcement officers’ signatures and using a photocopy of their law enforcement credentials to purchase handguns from a distributor in New York at discounted prices to increase the store’s profit margin. Upon confirming that Eicke and Harris were “stealing” the identities of law enforcement officers, ATF invited the Secret Service into the investigation due to its expertise in identity theft and financial crimes investigations. The Secret Service has jurisdiction for crimes of aggravated identity theft.

Anti-Violence Activist Arrested by ATF on Gun Charges

The founder (and an allegedly “documented” gang member) of “NOGUNS-Networks Organized for Gang Unity and Neighborhood Safety,” an alleged gang intervention program, has been arrested on California state firearms charges.

During the investigation, an undercover agent was able to facilitate the purchase of a machine gun, three assault rifles, one handgun and two silencers from the founder of the group.

Hector Marroquin Sr., 51, of Downey, CA was held on charges for the illegal transfer/possession of the arms and conspiracy. Two others were also arrested.

CA Assembly Approves Micro-Stamping Bill

California Democrats are refueling a firearm micro-stamping proposal that has already passed the state Assembly. The measure, AB1471, would require starting in 2010 that all semiautomatic pistols sold in California contain a mechanism to stamp the gun’s make, model and serial number on the shell casing of the bullet every time the pistol is fired.

California state Department of Justice records reportedly show that about 2,400 homicides are committed each year and about 60% involve the use of a handgun. Moreover, about 70% of new handguns sold in California are semiautomatic pistols.

Last year, then-Assemblyman Paul Koretz, D-West Hollywood, introduced a similar bill that passed several hurdles but came up two votes shy in the Assembly on the last day of the legislative session. The latest bill was approved by the Assembly in a 44-29 vote, largely along party lines. The bill now heads to the state Senate.

The primary difference in this year’s bill is that the measure requires the micro-stamping mechanism to etch the information from at least two different places in the pistol. Last year’s bill only required one and the firing pin was widely considered as the most logical piece of the firearm to stamp the information.

Opponents argued then, and now, that the firing pin can be removed and defaced, or simply replaced. That’s why this latest bill requires the etching to occur in more than one place inside the gun.

To negate the arguments of opponents that the proposal will greatly add to the manufacturing costs of handguns equipped with the technology, proponents of the measure have gotten the patent owner, NanoMark Technologies of Londonderry, N.H., to agree to give away the patents to gun manufacturers if the bill is enacted.

The proposal has also gotten the attention of the U.S. Congress. One of the leading proponents of gun control of all sorts, Sen. Edward Kennedy, D- Massachusetts, has said that he will craft a micro-stamping bill to be introduced in the U.S. Congress in the near future.

Denel Eyes New Ventures

South African arms manufacturer Denel has been holding talks with various overseas and local companies, as part of its strategy to unbundle the organization and make it more open to mergers and acquisitions, according to trade sources.

Bushmaster in Joint Venture

Bushmaster Firearms International, LLC (Bushmaster) and Iron Brigade Armory, Ltd. (IBA) have formed Bushmaster Custom Shop by Iron Brigade (BMCS) – a new joint venture to focus on premium AR rifle systems, and customized tactical precision bolt action rifle platforms, initially for law enforcement and military applications.

The new firm will be based in Jacksonville, North Carolina with Norm Chandler, Jr. as its CEO. Bushmaster will be the majority owner and will provide the initial funding for facilities and personnel. “The opportunity to work with IBA allows Bushmaster to extend our brand to the premium end of the AR-15 market place with customized solutions at lower volumes than our Windham facilities can handle economically, and is something that our customer base is telling us is important in addressing their needs,” stated E. Scott Blackwell, Bushmaster President and Chief Sales and Marketing officer.

Initially, BMCS will focus on custom AR-15 platforms based on the .223 and 5.56 caliber ammunition, with first products being available for sale in mid summer 2007. BMCS will also leverage the work done by Iron Brigade Armory and its founder – weapons designer and sniper author LTC. (ret) Norm Chandler, Sr. – to offer tactical precision rifles later this year.

Formed in 1994, IBA specializes in designing, producing and selling customized Sniper Weapon Systems (SWS). IBA’s focus is to provide field/combat reliable SWS that are capable of urban as well as long range operations.

Beretta has New Director of Sales

Beretta USA Corp. has promoted Rob Viner to Director of Sales/Dealers. Viner joined the company in 1997 as a Commercial Field Sales Representative. Most recently he held the position of South East Commercial Regional Business Development Manager. At the Beretta National Sales Meeting Awards Banquet he was recognized with the coveted Beretta Trident Ring for being named the 2006 Regional Business Development Manager of the Year.

Sabre Defence Has New Director of Commercial Operations

Sabre Defence Industries of Nashville, Tennessee has hired Michael Curlett as Director of Commercial Operations. Curlett will oversee all of the production, sales and marketing activities for Sabre’s Commercial Products in the U.S. He will assist with commercial, police and military sales in the international market.

Curlett comes to Sabre Defence from EOTech, a subsidiary of L3 Communications, one of the largest defense contractors in the U.S. As Director of European Sales for L3-EOTech, he worked to expand their sales and distribution channels throughout Europe and the Middle East

The author publishes two of the small arms industry’s most widely read trade newsletters. The International Firearms Trade covers the world firearms scene, and The New Firearms Business covers the domestic market. He also offers FFL-mailing lists to firms interested in direct marketing efforts to the industry. He may be reached at: FirearmsB@aol.com.