All Federal Firearms Licensees need to take notice that both the Manufacturer and the Importer must be listed in his/her/its Bound Books, pursuant to 27 C.F.R. 478.125(e). While many FFLs just list the manufacturer, especially when the manufacturer and importer are the same (or the same company but different corporate structures throughout the world). Recently, the Bureau of Alcohol, Tobacco, Firearms, and Explosives posted on their website a “tip” regarding this issue. Specifically, ATF stated, “Per 27 CFR 478.125(e), a licensed dealer is required to enter both the manufacturer and importer (if any) in the A&D record. <u>While the specific format required does not match the exact wording of the regulation, a licensed dealer is still required to record both</u>, because that information is spelled out specifically in the wording of the regulation. See ATF Tip of Month and 27 CFR 478.125(e).
Isn’t that nice? ATF acknowledges that the format does not match the “exact wording of the regulation,” yet, all FFLs are suppose to be clairvoyant as to the interpretation that the ATF is going to impose. Nevertheless, the language of 478.125(e) does state that the manufacturer and importer are to be listed. Frequently, FFLs will inquire whether they have to list Glock/Glock. Under ATF’s interpretation of 478.125(e), you must list Glock/Glock. Moreover, if one entity is an LLC and the other is Inc., you must distinguish the difference.
Now, as you are likely aware, the manufacturer and importer enrgavings must be placed on the firearm. Hence, all the information that you need must be depicted on the firearm. If the manufacturer/importer has obtained a variance to the marking requirements, you are to list the markings, as engraved on the firearm, in your Acquisition and Disposition book.
Is Now a Good Time to Start a Firearms Business?
January 27, 2012
From time to time, clients will inquire about when is the best time to start a firearms business? I always respond, “When isn’t it a good time to start a firearms business?” Obviously, there are no crystal balls and a lot depends on your own marketing ability, as well as the demeanor of the current Congress and Presidency. Nevertheless, there was a recent article in the National Shooting Sports Foundation’s (NSSF) publication SHOT Business. In this article, it spoke to the owners of Del-Ton, a husband and wife team that started their company in 2000 by selling a few items on Ebay. When Tony Autry and his wife, Kassandra, began this venture, it was part-time. Tony kept his day job in telecommunications. However, they both wanted to make the business a full-time venture.
Slowly, they began building upper assemblies. Within a year, they were producing so many assemblies that they had to build a 1,000-square foot steel building to accommodate the growing business. But, little did they know that by 2007, they would need a 4,500-square foot building to accommodate their needs! But that too was outgrown by 2009, when they acquired a 10,800-square foot building. Now, they have released the 4,500-square foot building, as a back up, because the 10,800-square foot building is already too small! Carrying more than 1,600 products, which they expect to expand shortly, Del-Ton is an example of how you can build your own dream and be part of the firearms industry.
If you are interested in starting a business or acquiring an FFL, contact me today, so that we can discuss your needs. We have tailored operating agreements for FFLs and other business-types in the firearms industry. When it comes to seeing your dream come true, we are ready and able to help you make that dream become a reality.
SHOT Show 2012 – ATF Town Hall Meeting and NFATCA Meeting – Dealers and Manufacturers Take Notice
January 20, 2012
The ATF Town Hall meeting was held on Wednesday, January 18, 2012, and the NFATCA meeting was held tonight. While there was nothing earth shattering from the Town Hall meeting, there were some very interesting issues that were discussed at the NFATCA meeting.
With regards to the ATF Town Hall, the big issue discussed was the impending changes to the residency requirements for an alien. On December 22, 2012, the ATF issued an open letter to all FFLs regarding changes to its interpretation of of the residency requirement for aliens. Currently, 27 CFR 478.11 provides that residency be determined differently for US citizens than for legal aliens. As the letter states, “A U.S. citizen’s State of residence is the State in which he or she is present with the intention of making a home; while an alien is considered a resident of a State if he or she has resided in that State for a period of at least 90 days prior to the date of transfer with the intention of making a home.”
ATF is now entering into rulemaking to remove the 90-day residency requirement for legal aliens. However, until rulemaking is complete, the current regulation still applies. Nevertheless, ATF stated that no Industry Operations Inspector (IOI) should cite an FFL for not complying with this documentation requirement. Accordingly, if you are cited for an failure to comply with this requirement, contact me immediately to discuss your options.
Also discussed was the fact that all manufacturers will have until April 2nd, 2012 (not April 1, 2012) to file their annual manufacturing report. While ATF will mail you out a copy, if you don’t receive a copy or want to be ahead of the curve, here is a copy of the ATF Form 5300.11. For those who are unaware, you can file this report via email by emailing it to AFMER2@atf.gov. You will receive a confirmation email of their receipt of the form within several days. If you have questions about filling out the 5300.11, most of your questions can be answered here. And yes, even if you did not manufacture a single firearm, you must submit the form.
When the ATF was asked the status of the Chief Law Enforcement Officer signature being removed from the Form 1 and Form 4, ATF would only acknowledge that it was aware of the request, that the request had merit, but that it was still being reviewed internally at ATF and there was absolutely no time frame established for a determination, since even if ATF was in agreement, it would require them to go through rulemaking, which would seem to indicate that we are at least a year away from any change.
The issue of ATF Form 1 and Form 4 processing was also brought up. ATF’s response was that they are under the hiring freeze of the DOJ and while they have attempted to bring in temporary employees and move people around from different departments, due to the increase in NFA applications, the wait time of 4 – 6 months is not likely to change anytime soon.
During the NFATCA meeting, it was disclosed that the ATF, as of last week, has changed its opinion regarding the proper procedure for deactivating a barrel for importation. Previously, ATF issued a letter stating that drilling three holes into the barrel was sufficient. While destroying the functionality of the barrel, it allowed for the barrel to be used in a dummy-gun for a collector, who basically desired a non-functioning replica of a particular firearm. ATF has now announced that it is requiring any such imported barrel to be torch cut in three locations.
Also, ATF has now stated that after having the Department of Justice (DOJ), Office of Legal Counsel (OLC) review 18 U.S.C. § 922, it has been decided by OLC that a manufacture may stockpile as many post-86 machineguns as that manufacturer sees fit; however, only the manufacturer may manufacture the post-86 machinegun. What this means, is that it is no longer acceptable or legal, even if the manufacturer has a variance approving the following, for one manufacturer to manufacture the receiver, register the receiver on a Form 2, and then transfer the receiver on a Form 3 to another manufacturer for completion. The OLC has determined that the only transfer of a post-86 machinegun is to a law enforcement agency. There are clearly other concerning issues with regards to this that I will not address, in the hopes that they have eluded ATF.
Lastly, the NFATCA informed everyone that ATF is under specific direction that anything less than 100% during a compliance inspection must result in some form of administrative action. ATF will be conducting compliance inspections of all dealers within 36 months; the days of not having a compliance inspection for 10 years are a thing of the past.
And that is pretty much all the hot topics from the ATF Town Hall meeting and NFATCA meeting.
First Day of the SHOT Show
January 18, 2012
The first day of the SHOT Show kicked off at the Sands Expo and Convention Center in Las Vegas, Nevada and was busy from the get-go. We visited several of the exhibitors and learned about many new companies and products, but fell far short of seeing everything the Show has to offer. Tomorrow, we hope to conquer more territory and make it to the ATF and NICS’s town hall meeting in the afternoon. That event should provide plenty of blogging material!
A couple of the exhibitors which I visited today deserve special mention. First, I stopped by the KRISS Arms exhibit to take another look at the Vector weapons system. If you haven’t seen this gun, please take the time to check it out. The design of this gun (the KRISS Super V System) allows the shooter to maintain better control and on-target accuracy by redirecting recoil and the resultant muzzle climb. Such allowances are extremely important when you are shooting a 230 grain, .45 ACP round at 1,200 rounds-per-minute.
On Media Day, I had an opportunity to fire the gun in semi, two-shot bursts and full auto. I was amazed by the overall stability and recovery, but was also puzzled by the two rather than three shot burst rate. When I inquired about this nuance, one of the representative explained that testing revealed greater accuracy with the two round burst, and also that the third bullet was not providing significant damage to its targeted area given the destruction initiated by the first two. On full auto, the control and accuracy were clearly enhanced by the new system.
Another exhibitor that offered some interesting products was Law Enforcement Targets (LET). This company sells targets in a host of variations from terrorists to hostage situations to zombies – both in the human and cartoon forms. Also, several of the targets provide challenging shots calling for complete visualization of the entire situation. For example, one target displayed a perpetrator holding a gun on an intended victim while in the background several people were standing nearby. The target called for very specific shot placement to disarm, rather than kill, the perpetrator. A true kill shot would have injured, if not killed, one or more of the bystanders.
LET also offered Pink Mist Reactive Bloodpacks. Placing these packets on a target leaves no question of hit or miss. They may also surprise your unsuspecting shooting partner. Of course, LET also provides more traditional targeting options and other items such as weapons storage cabinets, gun locks and a variety of gun cleaning equipment.
We ended the day with an excellent meal and made our plans for another great day at the Show. Of course, we will continue to bring you the latest developments.
The SHOT Show – Media Day 2012
January 16, 2012
Today was the SHOT Show’s Media Day (at the range) 2012. All the big named manufacturers where present, such as Browning, Colt, FN, Glock, H&K, Remington, and Winchester, as well as, some new manufacturers, such as Cabot (which I will be writing a separate blog article regarding) and Slide Fire Solutions (which Tom Beveridge will be writing a blog article regarding), and some new corporate structures, where Kriss now owns Defiant Arms and Sphinx Arms, two Swedish companies.
So, I know everyone wants to know the answer to the important question of what new firearm should I be purchasing next?!?! For those who know me, the next line may be somewhat of a shock, since you know I am a diehard H&K enthusiast. Actually, I felt that the best new firearm for 2012 was Beretta’s BU9 Nano, which has actually already been released. For a super-compact 9mm, I think that I honestly have to say that it out-shot my H&K p2000sk. While there wasn’t a p2000sk at Media Day for me to compare it to, I have enough trigger time behind my p2000sk to say Beretta got it right this time. The smooth trigger-pull, extremely compact size, and surprising lack of recoil (even less than my p2000sk, which is slightly larger and heavier) made this my pick of 2012.
But that isn’t to say that there weren’t a lot of cool other toys and runners-up. Sig Sauer had its new p224, which is a compact .40 caliber pistol. I have to say that it was surprisingly tame for its size and caliber. There were also some interesting grip choices available from factory. Beretta introduced the ARX 160 in a 22 caliber in both a pistol and carbine setup which are sure to be a hit.
Kriss, along with its newly acquired subsidiaries of Defiant Arms and Sphinx, were in attendance with several Kriss Vectors, a .45 caliber sub-machinegun, to try out in semi and full. They also had some of Defiant’s new suppressors to try out on the Vectors. Defiant’s suppressor was extremely impressive and could be shot both dry and wet. It also sounds as if Defiant may be preparing to produce some new suppressors that would have a setting, where it would cause the slide of the firearm not to cycle; hence, reducing the sound even more, since the noise from the slide’s action would be eliminated.
There weren’t any earth shattering announcements or surprise releases. However, this was the largest Media Day in history, with almost 1200 participants and zero injuries. I definitely look forward to next years Media Day, although, they really need more machineguns and silencers….I’m just saying…..Oh, and 40mm would be appreciated.
SHOT Show 2012 – Media Day
January 14, 2012
As many of you are aware, the SHOT Show is only about 48 hours away. For those who do not know what the SHOT Show is, have you been living under a rock? The SHOT Show, or The Shooting, Hunting, Outdoor Trade Show, is the largest trade show and conference involving the firearms industry. When they say, “It is the world’s premier exposition of combined firearms, ammunition, law enforcement, cutlery, outdoor apparel, optics and related products and services,” there is no puffery in that statement. Everyone from four star generals with the Department of Defense to local law enforcement is in attendance. With individuals from all fifty state and over one hundred countries in attendance, there is no wonder that it is the largest trade show and conference involving the firearms industry. It is owned and sponsored by the National Shooting Sports Foundation (NSSF).
Unfortunately, it is not open to the public. In order to register, you must prove that you are in the firearms industry, such as by providing your FFL number. Nevertheless, I will be bringing you news and announcements from the SHOT Show! Because of being a firearms law attorney, as well as a blogger, I have been granted media credentials for the SHOT Show. This means that I will be able to bring you first-hand, test fired, reviews of all the new toys that will be on display at SHOT! Media day is Monday, January 16, 2012, from 8:30am – 4pm . For more info on Media Day, see here. If there is a new firearm that you want a review of, please feel free to comment and I will attempt to try it out and write a review regarding that specific firearm.
In the meantime, sit back and get ready for some exciting reviews and news from SHOT! For those who are curious, yes, I will again attend the ATF Townhall Meeting. While I don’t expect any earth shattering surprises this year (last year was the Shotgun Importability Study), I will be blogging about any hot topics.
Citizen’s Firearms Law Seminar – May 5, 2012
January 3, 2012
On May 5, 2012, Attorneys Joshua Prince and Eric Winter will be conducting a citizen’s firearms law seminar, which is being presented by the Muhlenberg Area Shooting Association, Inc (MASA). Topics to be discussed are Open and Concealed Carry, Self-Defense, Estate Planning, Trusts, Wills, and the PA Castle Doctrine and other state and federal laws. For more information, see the flier here. It is open to the public and will begin at 1pm. Because of past high-demand for seminars taught by Attorney Prince, you must reserve seating by calling 610-670-6727.
Merry Christmas – Merry Machinegun – What’s a Guy to Do?
December 23, 2011
Are you looking to get that guy in your life, who already has everything, something new and different? Why not a machinegun? They come in all different barrel lengths and calibers, fit nicely under the tree (that is unless you decide to go all out and buy him a Browning 50. Caliber), and provide endless hours of enjoyment. More importantly, you will never have to worry about your mate complaining about the shoes or purses that are stored under the bed, in the closet, and which take up the entire coat rack!
BUT, what do you do if he already has a Rambo-collection? Isn’t it obvious? You buy him the Merry Christmas – I Have a MachineGun t-shirt! This is the perfect gift for those machinegun enthusiasts, who want the world to know that Santa brought him a beautiful machinegun.
I often receive inquiries from clients regarding whether a 3rd DUI prevents him/her from being able to purchase, possess and own a firearm. While it will depend on the date of conviction, as the DUI Grading statutes have changed, since February 1, 2004, the current grading has been in effect and which would at least prohibit you under federal law, if not also under state law.
Recently, the Pennsylvania Commonwealth Court heard the appeal of a Pennsylvania State Police (PSP) Denial of Mr. Richard Perkoski, in the matter of Perkoski v PSP. The issue before the Court was “whether the PSP accurately deemed Perkoski’s 2001 conviction for driving under the influence of alcohol (2001 DUI) a misdemeanor of the first degree, which precludes him from possessing a firearm.” As for some background, Mr. Perkoski was convicted of DUI offenses in 1998, 1990, 2001, and 2002. In 2009, he attempted to purchase a firearm and was denied, as the Pennsylvania Instant Check System (PICS) reported that Mr. Perkoski was ineligible to purchase firearms due a disqualifying conviction. He then filed a (PICS) Challenge, where the PSP reaffirmed its denial under 18 U.S.C. 922(g)(1), alleging that the offense was misdemeanor offense punishable by more than two years.
Mr. Perkoski then appealed to the Office of the Attorney General, where an Administrative Law Judge (ALJ) heard his appeal. The ALJ affirmed the PSP’s determination. Mr. Perkoski then appealed to the Commonwealth Court, which found that under the DUI statutes that were in effect at the time of is 2001 conviction, the applicable grading of the conviction was a misdemeanor 1. Since the maximum sentence for a misdemeanor 1 is five (5) years, he would be prohibited under 18 U.S.C. 922(g)(1).
However, while the court spent time explaining the difference between the grading and penalty portions of the DUI statute, the court seems to have glossed over whether the previous DUI grading section, 75 PA.C.S. 3731(e)(1), imposed any maximum sentence, short of the maximum sentence imposed by a misdemeanor 1. While it is unlikely that the legislature limited the maximum penalty, it is a possibility and unfortunately, I do not have a copy of 75 PA.C.S. 3731, as it has since been repealed.
The interesting aspect to this case is that while under the current law, specifically 75 PA.C.S. 3801 et seq., a second offense has the possibility of resulting in a misdemeanor 1 (if it is of the highest rate), under 3731(e)(1), a second offense was only punishable by a misdemeanor 2. Hence, whether a second DUI is prohibiting, will depend on when the conviction was entered and under what grading.
If you have questions regarding whether you are prohibited due to a DUI conviction or have other Firearms Law issues, contact us today to discuss your rights.
