Tag Archives: “Form 4”

ATF releases 2018 Report on Firearm Commerce in the United States (Numbers, Bar Graphs, and Pie Charts!)

ATF has released its annual Firearms Commerce in the United States Statistical Update for 2018. As my one friend put it, “Let the nerdery begin.” To be fair, you have to be pretty nerdy to enjoy this stuff, hence me writing about it.

The Annual Firearms Manufacturing and Exportation Report (AFMER) is only current through 2016. This is because AFMER data is not published until one year after the close of a calendar reporting year because the information provided by those whole filed a report is protected from immediate disclosure by the Trade Secrets Act. Which is why you see a two year lag (2016 data reporting in the beginning of 2017 and a year delay between its reporting and publication).

Screen Shot 2017-08-23 at 8.10.14 AM

In 2016, there were a total of 11,497,441 firearms manufactured. This was up from 2015’s number of 9,358,661 by about 20%. The number of exports was up from the previous year by about 9%, from 343,456 in 2015 to 376,818 in 2016.

The total number of imports fell from 5,137,771 in 2016 to 4,492,256 in 2017 (imports are not included not the AFMER report which is why the numbers are more current). Once again, the number of handguns imported accounts for over half the total number of firearms imported.

For those of you NFA junkies, in 2017, there was $6,371,000 in occupational taxes paid (SOTs). This is up again from the year prior and slightly under double that of 2012. Taxes paid were $22,972,00 for 2017, about a third of what was paid in 2016 ($62,596,000). Interestingly, there were 6,749 record checks, which means that ATF searched the National Firearms Registration and Transfer Record (NFRTR) that many times to determine if a firearm was possessed lawfully or if the transfer was performed lawfully. That number is up 202 times from 2016.

In 2017, there were 40,444 Form 1s and 184,312 Form 4s filed. These numbers were different from the year prior, but not by a significant margin for the Form 1s (Form 1s were down by about 9,000 but Form 4s were up about 51,000). The total number of forms processed by the NFA Branch was down about a million from the year prior. 2017 number look similar to that of 2014 and 2015.

As far as NFA firearms registered by state, Texas still leads with 637,612. Florida follows with 377,2017. California (thanks Hollywood), Virginia and Pennsylvania round out the top 5. Florida leads the charge with registered machine guns, sitting at 44,484. Texas has an astonishing 265,597 registered silencers. Florida is the next closest with 98,972 registered silencers.

CR-parrotheadjeff-dot-com

There are currently 55,588 licensed collectors of curios or relics, making it the most popular license type. It is followed closely by dealer in firearms, of which there are 56,638 active licenses. ATF reports 136,081 total active licenses (across the spectrum). Texas holds 10,920 of those licenses, making it the state with the most.

In 2017, 17 license applications were denied. This number is up exactly one from the year prior. As for compliance inspections, ATF performed 11,009 last year. This equates to 8.09% of all licensees in 2017 being inspected.

As always, the annual report helps give some insight as to ongoings within the firearms industry.

Advertisements

Leave a comment

Filed under ATF, Firearms Law

ATF releases 2017 Report on Firearm Commerce in the United States (Numbers, Bar Graphs, and Pie Charts!)

Screen Shot 2017-08-23 at 7.35.26 AM.png

ATF has released its annual Firearms Commerce in the United States Statistical Update for 2017. As my one friend put it, “[t]his is like fantasy football stats for silencer dorks.” It’s actually like that for a lot more than the silencer crowd, but I digress.

The Annual Firearms Manufacturing and Exportation Report (AFMER) is only current through 2015. This is because AFMER data is not published until one year after the close of a calendar reporting year because the information provided by those whole filed a report is protected from immediate disclosure by the Trade Secrets Act. Which is why you see a two year lag (2015 data reporting in the beginning of 2016 and a year delay between its reporting and publication).

Screen Shot 2017-08-23 at 8.10.14 AM

In 2015, there were a total of 9,358,661 firearms manufactured. This was up from 2014’s number of 9,050,626 by about 3.3%. Interestingly the number of exports fell by about 20%, from 420,932 in 2014 down to 343,456.

The total number of imports rose from 3,930,211 in 2015 to 5,137,771 in 2016 (imports are not included not the AFMER report which is why the numbers are more current). Interestingly, it was handguns that account for a little over 1.2 million more firearms imported in 2016. And as you may have guessed Austria leads the charge with handguns imported, accounting for over 1.3 million coming into the country. Probably a safe bet that Glock is responsible for the majority of those.

Screen Shot 2017-08-23 at 8.11.25 AM.png

For those of you NFA junkies, in 2016, there was $6,018,000 in occupational taxes paid (SOTs). This is up again from the year prior and slightly under double that of 2012. Taxes paid were $62,596,000 for 2016, almost double the year before (thanks ATF 41F). Interestingly, there were 6,547 record checks, which means that ATF searched the National Firearms Registration and Transfer Record (NFRTR) that many times to determine if a firearm was possessed lawfully or if the transfer was performed lawfully.

Screen Shot 2017-08-23 at 8.12.01 AM.png

In 2016, there were 49,985 Form 1s and 133,911 Form 4s filed. These numbers were up from the year prior, but not by a significant margin for the Form 4s (Form 1s were up by about 17,000). While the number of forms process by the NFA Branch was up about a million from the year prior, it was the Form 2s that accounted for almost half of that number. For those that are unaware, Form 2s are used by industry to give notice to ATF that they produced or imported a NFA firearm.

As far as NFA firearms registered by state, Texas leads with 588,696. California follows with 344,622. Florida, Virginia, and Pennsylvania round out the top 5. Interestingly, Connecticut leads the charge with registered machine guns, sitting at 52,965. However, when you consider law enforcement, it starts to make sense.

CR-parrotheadjeff-dot-com

There are currently 57,345 licensed collectors of curios or relics, making it the most popular license type. It is followed closely by dealer in firearms, of which there are 56,754 active licenses. ATF reports 137,464 active licenses. Texas holds 10,954 of those licenses, making it the state with the most.

In 2016, 16 license applications were denied. This number is down almost 50% from the year prior. As for compliance inspections, ATF performed 9,790 last year. This equates to 7.1% of all licensees in 2016 being inspected.

As always, the annual report helps give some insight as to ongoings within the firearms industry.

 

screen-shot-2016-12-14-at-8-54-53-pm

Are you an NRA Life Member or an annual member of the past 5 years? I need your help to be placed back on the ballot for the 2018 NRA Board of Directors Election. Time is running out to sign a petition to nominate me as a candidate. Download a petition here. It will only take two minutes of your time. For more information visit my website: adamkraut.com.

 

Did you find this blog article helpful or informative? Be sure to pass it along to a friend who may benefit from the information by using the buttons below. Don’t forget to like Firearms Industry Consulting Group on Facebook by clicking the “Like” button on the right.

3 Comments

Filed under ATF, Firearms Law, Uncategorized

ATF Releases ATF 41F FAQ

drewcarey2

With the implementation date of ATF 41F looming just around the corner (July 13, 2016), the folks over at ATF have released the ATF 41F FAQ. You can find that here. The link also includes the new Form 1, Form 4, Form 5 and Responsible Person Questionnaire.

The FAQ references:

  • How Does Final Rule 41F Change Current NFA Regulations?
  • Who is a Responsible Person?
  • What Do NFA Trust or Legal Entity Applicants Affected by the Change Need to Know?

Earlier this week, The Gun Collective released a new series called, The Legal Brief, where I discussed ATF 41F and its implications. One of the questions that wasn’t quite clear was whether a legal entity would be required to submit a copy of the Form 1/4/5 and responsible person questionnaires to the CLEO or if it would be one or the other.

Based on the question in the FAQ, it would seem that legal entities, such as trusts, corporations, LLCs, etc. will need to submit a copy of the Form 1/4/5 to the CLEO for notification in addition to all of the responsible persons submitting the responsible person questionnaire.

ATF has also confirmed, as if there were any doubt at this point, if the application is postmarked July 12th or earlier, it will be grandfathered in under the current regulations. July 13th and after will require you to comply with ATF 41F.

Did you find this blog article helpful or informative? Be sure to share it with your friends on Facebook by using the buttons below. Don’t forget to like Prince Law Offices and Firearms Industry Consulting Group on Facebook by using the buttons on the right.

3 Comments

Filed under ATF, Firearms Law, Uncategorized

Transferring a Sear? Multi Caliber is No Longer Accepted by ATF

atfvan1

It appears that ATF has once again changed the standards for applications to transfer NFA firearms. This time it is in relation to sears.

A letter surfaced, that was dated June 15, 2016, from the NFA branch to an applicant which stated that the firearm description “varies with our records”. The letter went on to state “We no longer accept multiple calibers and have decided that all sears should be registered as N/A.” (Emphasis added). A copy of the letter can be found here.

Consistent with ATF’s approach to almost everything, there is no accompanying explanation as to why “multi” is no longer an acceptable response to the caliber. It appears that ATF has just arbitrarily decided that “multi” was no longer acceptable and that going forward applicant’s should use “n/a”. It would seem from a logical standpoint that because the sear does not have a barrel and cannot be chambered in any caliber, that “n/a” would be the appropriate designation. Unfortunately, we are left to guess as to why this change is being made.

If you plan on submitting an application to transfer a NFA firearm and the firearm is a sear, make sure that you no longer list the caliber as multi, otherwise you’ll most likely be receiving a notice in the mail asking you to correct your form.

 

Did you find this blog article helpful or informative? Be sure to hit the buttons down below to share with your friends. Don’t forget to like Prince Law Offices and Firearms Industry Consulting Group by using the buttons on the right!

4 Comments

Filed under ATF, Firearms Law, Uncategorized

ATF Releases Open Letter to CLEOs Regarding ATF 41F

On May 25, 2016 ATF released an Open Letter to Chief Law Enforcement Officers regarding ATF 41F. The letter can be found here.

Screen Shot 2016-06-03 at 1.28.25 PM

The letter briefly describes some of the changes that will occur after the rule is implemented.

Of note is the notification requirements for the CLEO. In short, all legal entities will be required to forward a copy of all Applications to Make (Form 1s) or Applications to Transfer (Form 4s) and the Responsible Person Questionnaire to the CLEO of the localities where the Responsible Person is located.

The letter does note that no action on the part of the CLEO is required, does not specify in what manner a CLEO should store the documentation, if they choose to do so, and asks that if the CLEO has any information that may disqualify any maker or transferee, including a responsible person of a legal entity, from making or possessing a firearm to provide that information to the NFA Branch.

Of concern is that the letter does not specify the copies of the Form 1s and Form 4s that the CLEOs are receiving contain confidential tax information and should be treated as such. If CLEOs choose to destroy the forms, rather than keep them, are they disposing them in a manner that would not allow an individual to view the information contained on the form? Further, the letter does not advise CLEOs (those who may reside in states that don’t allow some or all NFA items) that an individual may be a trustee of a trust located in another state. This may cause some issues with CLEOs reporting to ATF that those items are not allowed in that state.

Interestingly enough, it would seem that ATF is continuing to have the CLEO involved by asking for notification as to whether they have information about that individual which would disqualify the entity from obtaining the item. Perhaps ATF believes that the CLEO is still the best person to know the affairs of an individual even though they are now required to submit fingerprints and photos as a responsible person.

The letter does confirm that as long as applications are postmarked by July 13, 2016, they will be grandfathered in under the current regulations.

 

Did you find this article informative or helpful? Be sure to share it with your friends by clicking the share button below! Make sure to like Firearms Industry Consulting Group and Prince Law Offices on Facebook to get the latest news.

17 Comments

Filed under ATF, Firearms Law, Gun Trusts, Uncategorized

A Round Table Discussion with ATF

Having had the opportunity to sit around a table with different members of ATF, a few different things were learned.

atf

And don’t worry, the cartoon doesn’t reflect the attitude of those I spoke to.

NFA Branch

In regards to the NFA Branch and processing times, it appears that they are aiming for a processing time of about 90 days for Form 1s and Form 4s. They are currently around the 120 day mark and are working diligently to improve that time. They have gone from 9 to 26 examiners, which should allow them to meet that goal after everyone has been brought up to speed.

Trusts account for the majority of Form 1s and Form 4s that the branch is receiving. I also learned that there is a substantial increase in Form 1 submissions since the introduction of the eForms system. Additionally, the processing times for eForm and paper form submissions are now currently running about the same time, so there is not necessarily any advantage time-wise to utilize the eForms system.

Form-4

Furthermore, I learned that ATF hoped to have had the eForm 4s back by SHOT but they indicated that did not look like it would happen. They are currently in discussions with a contractor regarding the system.

There was also a question asked of the NFA branch in relation to 3D printed parts. The attendee asked if he printed a part, that was technically a NFA firearm, would he need to notify the branch of its creation and/or destruction. The answer was yes, provided the part was functional, it would be controlled by the NFA.

Imports Branch

The Import section fielded a question relating to the “sporting purpose” exemption. Disappointingly, there does not seem to be any hope in the near future for it to be revisited in order to consider such sports as 3-Gun, USPSA, IDPA or other shooting sports.

Firearms and Ammunition Technology Division

I also had the opportunity to sit down with the Firearms and Ammunition Technology Division (FATD).

For Industry Members, if you’re looking to receive a determination on your product, you can expect it to take about 120 days. That means if you WANT a determination on your product prior to SHOT 2016, you need to have your submission to FATD before September.

They did state that they would not give you priority just because your attending SHOT and need a determination prior to it. So you have to get moving on the product and submission now. If you’re an industry member and require a letter with your submission please contact us, as letters for determinations are something we handle on a frequent basis.

USA-1Shot-Cover-670x449

The new product on the block that is catching a lot of attention by the industry seems to be the APS 1 Shot Dynamic Pistol Rest. Having had the opportunity to sit down with FATD and discuss the dynamic pistol rest, I can say several issues have arisen. Contrary to the claims of the company, ATF stated that it has no record of receiving any samples of the product in order to issue a determination. Additionally, FATD stated they welcome a sample to be submitted for a determination. This is in stark contrast to the statement that the company has proffered that ATF will not issue a determination.

The company had stated in a Recoil Web article:

“We asked the ATF their opinion and they had none, as it is not a permanent part of the weapon…”

Furthermore, having shown FATD a picture of the product, I was immediately informed that it was a shoulder stock and ATF had previously ruled on “friction stocks” in other determinations. It would behoove APS to submit a sample to ATF in order to have a formal determination on the product, so that individuals can know whether possession of the product with a handgun would potentially subject them to criminal prosecution or not.

Firearms Industry Operations

Good news for licensees. Is there a topic you want ATF to cover for training? Apparently, you can either call your local field office or headquarters to request a seminar on the particular topic. Furthermore, if you receive or have received conflicting information from your local field office, you may want to contact the Firearms Industry Programs Branch to get a “final determination” on the matter. Of course, I’d recommend you get it in writing, which they stated they usually provide a copy of their decision to the field office as well as the licensee with the question.

ATF 41p

ATF 41P was mentioned several times. The news? ATF is still reviewing comments and there is no news as to when/if they will move forward with any kind of final rule. Additionally there are 4 reviewers for the comments and all of them have been assigned to ATF 41P.

ATF 51P

ATF 51P has had no action as far as the review of comments on it yet.

General Rulemaking

ATF stated that the priority for rulemaking determinations were ATF 41p, ATF 51P and Reporting of Losses of Firearms in Transit.

Federal Firearms Relief

If the appropriations bill is enacted as written, Federal Firearms Relief would become available again, for the first time since 1992. ATF stated that if the appropriations bill is implemented, they do not currently have an action plan in place to address the forecasted river of applications it will receive.

ATF Ruling 2013-5

ATF also stated that it would be entering into rulemaking to clarify the electronic record keeping for FFLS in relation to Ruling 2013-5. Issues that would be addressed include cloud storage, the maintenance of records offsite but on a server and tracking changes in the bound book.

 

Did you find this article helpful or informative? Make sure to share it with people you know by using the buttons below! Don’t forget to like us on Facebook by using the links on the right.

 

 

9 Comments

Filed under ATF, Firearms Law