BATFE Bureau of Alcohol, Tobacco, Firearms and...

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BATFEBureau of Alcohol, Tobacco, Firearms and Explosives

Kristie MartinelliIndustry Operations Investigator

Bureau of Alcohol, Tobacco, Firearms and Explosives

Lauren KrickebergATF Compliance Manager

Orbital ATK

Karri AllenCounsel, Corp. Global Trade

Raytheon Company

U.S. Department of Justice


www.atf.gov

ATF & IMPORTS

Kristie Martinelli

Industry Operations Investigator

Denver Field Division

There are several points to keep in mind to ensure that you are staying in compliance with ATF import laws and regulations:

The Form 6 Part I, Application and Permit to Import Firearms, Ammunition and Defense Articles (Form 6) is valid for 2 years or until the quantity approved for import comes in, whichever comes first.

Stay in Compliance

• Type 01 FFL – Dealer in Firearms / Gunsmithing (firearms repair)

• This license allows you to buy, sell, and repair firearms. Its $200 to apply, and $90 to renew every three years.

• Type 02 FFL – Pawnbroker• This license allows you to do everything a

type 01 does but is for pawnshops.

ATF Licenses & Permits

• Type 03 FFL – Collector of Curios and Relics• This license, also known as a C&R, is solely for adding

antique firearms to your personal collection of curio and relic firearms. It does not allow you to both buy and sell (for that you’d need a type 01). It is only $30 to apply and $30 to renew.

• Type 07 FFL – Manufacturer of Firearms & Ammunition

• This license allows you to do everything a type 01 does (buy, sell, and repair) but also allows you to assemble and manufacture. A type 07 license is $150 to apply and $150 to renew every three years.


• Type 08 FFL – Importer of Firearms/Ammunition

• The type 08 license allows you to import firearms (other than destructive devices) and ammunition (other than ammunition for destructive devices or armor piercing ammunition). The fee is $150 per year and $90 to renew.

• Type 09 FFL – Dealer in Destructive Devices• This license allows you to deal in destructive devices

include grenades, firearms with a bore of over one half inch, including some semi-automatic shotguns. This license is $3,000 to apply.


• Type 10 FFL – Manufacturer of Destructive Devices, Ammunition for Destructive Devices, or Armor Piercing Ammunition

• This license allows you to manufacture destructive devices, and AP ammo. This license is $3,000 to apply.

• Type 11 FFL – Importer of Destructive Devices, Ammunition for Destructive Devices, or Armor Piercing Ammunition

• As the name states. This license is also $3,000 to apply.



ATF Form 6 Part I, Application and Permit to Import Firearms, Ammunition and Defense Articles. There is no fee to process this application. It may be submitted via paper or using eForms.

ATF Form 6A, Release and Receipt of Imported Firearms, Ammunition and Defense ArticlesThere is no fee to process this application. It may be submitted via paper or using eForms.

Stay in Compliance

• Once the Form 6 expires, a new form will need to be submitted. ATF does not “renew” permits.

• Even if the broker submits 6A data to CBP using the PGA message set, the importer is still required to submit their copy of the 6A to ATF within 15 days of release from CBP custody.

• Description of the defense articles on the 6A must match the description on the corresponding Form 6.

Stay in Compliance

Importers Acquisition and Disposition Records

• ATF Ruling 2011-1 Allows Consolidated Acquisition and Disposition Records if the following conditions are met:

1. Within 15 days of the date of importation or other acquisition, the licensed importer records the following information for each firearm:A. Name of the manufacturer (foreign or

domestic) and importer (if any);B. Country of manufacture;C. Model;

Stay in Compliance

Importers Acquisition and Disposition Records (Continued)

D. Type;E. Serial number;F. Caliber or gauge;G. Date of importation or other acquisition;H. Name of the person (nonlicensee or other Federal

firearms licensee (FFL)) from whom the firearm was received (to include a person outside of the United States, if applicable); and

I. Address (if a nonlicensee) or complete 15-digit license number of the person from whom the firearm was received (to include the address of a person outside of the United States, if applicable).

Stay in Compliance


2. Within seven (7) days of the date of sale or other disposition, beside the corresponding line item record of importation or other acquisition, the licensed importer records the following information for each firearm: A. Date of sale or other disposition;B. Name of the person to whom the firearm was transferred;

andC. Address or license number of the person to whom the

firearm was transferred: if the transferee is a nonlicensee, the address of the transferee or the ATF Form 4473 Firearms Transaction Record serial number if the Forms 4473 are filed numerically; if the transferee is a licensee, the complete 15-digit license number.

Stay in Compliance


3. For firearms dispositions to a licensee, the commercial record of the transaction shall be retained separately from other commercial documents maintained by the licensed importer until the transaction is recorded, and be readily available for inspection on the licensed premises.

4. For firearms dispositions to a nonlicensee, the ATF Form 4473 shall be retained separately from the licensee's Form 4473 file and be readily available for inspection on the licensed premises until the transaction is recorded. After that time, the Form 4473 shall be retained alphabetically (by name of purchaser), chronologically (by date of sale or other disposition), or numerically (by transaction serial number) as part of the licensed importer's required records.

Stay in Compliance


5. By using this variance, a line item will be recorded for each firearm imported or otherwise acquired and sold or otherwise disposed of by a licensed importer. The quantity of firearms of the same type, model, and caliber or gauge imported or otherwise acquired and disposed of must be able to be readily determined by adding all associated line items.

6. All consolidated firearms acquisition and disposition records must be maintained permanently by the licensed importer. Additionally, as provided by 27 CFR 478.127, upon discontinuance of business, all required records must be forwarded to the ATF Out-of-Business Records Center.

Stay in Compliance

Marking Requirements for Importers

• As a licensed firearm importer you must legibly identify each firearm imported as follows:

1. By engraving, casting, stamping (impressing), or otherwise conspicuously placing on the frame or receiver an individual serial number. The serial number must be placed in a manner not susceptible of being readily obliterated, altered or removed, and must not duplicate any serial number placed by you on any other firearm. This must be to:

• 1/16 inch or larger print

• .003 inch minimum depth

Stay in Compliance

Marking Requirements for Importers (Continued)

2. By engraving, casting, stamping (impressing), or otherwise conspicuously placing on the frame, receiver, or barrel thereof certain additional information. This information must be placed in a manner not susceptible of being readily obliterated, altered or removed. This must be to:

• 1/16 inch or larger print

• .003 inch minimum depth

Stay in Compliance

Marking Requirements for Importers (Continued)

3. This additional information includes:• The model, if such designation has been made;• The caliber or gauge;• Your name (or ATF recognized abbreviation)

and also, when applicable the name of the foreign manufacturer;

• The name of the country in which it was manufactured and the city and state (or recognized abbreviation thereof) where you as the importer maintain your place of business.

Temporary to Permanent

• There are NO provisions in the law or regulations to allow a temporary import to be converted into a permanent import.

• Defense articles imported under a DSP-61 or a temporary import license exemption (22 CFR 123.4) must be exported back out of the United States and then a Form 6 application may be filed to bring in the defense article permanently.

U.S. Department of Justice


www.atf.gov

Contacts:ATF Firearms and Explosives Imports Branch

244 Needy Road

Martinsburg, WV 25404

304-616-4550

[email protected]

Desiree M. Dickinson, Industry Liaison

[email protected] or 304-616-4584

ATF Compliance – Overview & Best Practices

Presented by: Lauren Krickeberg, ATF Compliance Manager

Armament Systems Division, Orbital ATK, Inc.

[email protected]

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AGENDA

• Regulatory Overview

• Recordkeeping

• Qualified Workforce

• Inventory Management

• Tools & Training

• Knowing Your Product Life Cycle

• ATF Site Inspections

• Questions

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REGULATORY OVERVIEW

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REGULATORY OVERVIEW

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U.S. Army General John T. Thompson

Thompson Submachine Gun - 1918

REGULATORY OVERVIEW

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REGULATORY OVERVIEW

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Al Capone 1899-1947

John Dillinger1903-1934

Lester Gillis (“Baby Face” Nelson)1908-1934

Among other illegal activities, the above U.S. gangsters were responsible for armed robberies, theft, jail breaks, running stills, and bootlegging. Most notable were the murders of the “Dillinger” gang (1933-34) and Al Capone’s St. Valentine’s

Day Massacre (1929).

REGULATORY OVERVIEW

National Firearms Act (NFA) of 1934 –

Implemented $200 tax for making, importing and/or transferring NFA weapons,which are Short Barreled Rifles, Short Barreled Shotguns, Machineguns, Silencers,and Destructive Devices (Bombs, Grenades, Rockets, etc.). Also introducedregistration requirements, firearm markings, recordkeeping, prohibited acts and thespecial occupational tax exemption.

Gun Control Act (GCA) of 1968 –

Implemented regulations for non-NFA firearms (everything else, such as sportingpistols, rifles, shotguns, etc.). Focused on interstate commerce, clarified recordkeeping requirements, prohibited categories, and introduced Federal FirearmsLicenses among other things.

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REGULATORY OVERVIEW

Firearm Owners’ Protection Act of 1986

Amendment to the Gun Control Act that passed on May 19th, 1986. The majority ofthe changes were favorable to firearm owners and businesses, however there was alate hour floor amendment that adopted the machine gun ban without considerationof the consequences, resulting in the Machine Gun Ban (18 USC 922(o)).

Organized Crime Control Act of 1970/Safe Explosives Act (SEA) of 2002 –

Implemented regulations for explosive products, including storage, marking andlicensing requirements.

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Who are you selling or disposing it to?

Are they authorized to have it?

What did you make?

REGULATORY OVERVIEW

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When did you make it?

Did you mark it correctly?

Is it safely stored? Where is it located?

OEMCity, State

Model, Caliber, SN

Lot Number

OEMLocation, Date, Shift

RECORDKEEPING

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Acquisition & Disposition Logs “Bound Book” Going Electronic

Dedicated Software

Ruling 2016-1

Daily Summary of Magazine Transactions (DSMT)

Variances Storage, Markings, Demilitarization, A&D

Original License Copies Keep secured and do not sign

Contract AssociationU.S. Government vs. “Commercial” Material

NFA RecordsGoing Electronic

Ruling 2013-2

QUALIFIED WORKFORCE

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Firearms & Explosives Prohibited Categories [18 USC 922(d) & 842(d)]

Be familiar with the restrictions and develop a self certification / self disclosure plan

Relief of Disabilities [18 USC 845(b)]

Case by case evaluation, influenced by applicable State law

Contingent WorkersRestricted from being employee possessors and being involved in NFA transfers (few exceptions with Professional Employment Organizations); know the facility’s workforce needs

INVENTORY MANAGEMENT

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It Pays to Be OrganizedLocation of all ATF controlled products at all times

Receiving and shipping are areas of risk

Historical inventory, “You don’t know what you don’t know” (i.e. “boneyards,” old products from previous mergers or acquisition)

Inventory AssessmentsMonthly, quarterly, annually – depends on what is right for you (ATF encourages monthly)

Visual verification with at least 2 people

Do the markings match exactly what is in your A&D log?

TOOLS & TRAINING

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Some Firearm & Explosive Laws are CounterintuitiveLevels of training are important, i.e. basic, intermediate, advanced

Frequency – Annual, quarterly

Make it EasyCreate tools to simplify the process Examples:1) Product Matrix2) Import Matrix3) Lessons learned

Document Your ProcessHave a work instruction tied to a policyExamples: 1) Manufacture, Movement & Registration of ATF Controlled Products2) Inventory & Storage of ATF Controlled Products3) Prohibited Categories & Contingent Workers4) Internal ATF Site Inspection Protocol

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1)Supplier Licensing

And Vetting –U.S. or Offshore?

2) Induction / Handling

Requirements

3) Hardware Storage / Inventory

Management---Variance

Required?---

4) Hardware Classification through Production

--GCA, NFA, SEA or None (or Combination)?--

5) Hardware Markings--Variance Required?--

6) Hardware Registration

7) Permit Applications

KNOWING YOUR PRODUCT LIFE CYCLE

ATF SITE INSPECTIONS

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New Defense Contractor’s ProtocolExtremely thorough, 100% visual inspection (few exceptions)

ATF is now “live” with the new protocol

Records are important (evidence of U.S. Government contracts for exempt material and/or products)

How it WorksOpening Conference/Familiarization Tour

Inventory Reconciliation/Inspection

Magazine Inspection/Evaluation

Recordkeeping Evaluation (A&D Logs, DSMTs)

Verification of Applicable Variances

Closing Conference/Corrective Actions

ATF COMPLIANCE – TRICKY SITUATIONS

Presented by: Karri Allen, Counsel, Corporate Global Trade

Raytheon Company

[email protected]

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NEXT STEPS

Site is licensed

Employees are trained

A&D records are maintained

Permits are obtained

Firearms are marked

Storage is adequate

Now what?...

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TRICKY SITUATIONS

• Firearms or explosive materials imported pursuant to a government contract will be used in a direct commercial sale

• Explosive storage magazine needs to be repaired and no temporary storage is available

• Guards at your licensed explosives site want to sell their handguns

• Licensed business acquires a new business conducting different ATF regulated activities

• R&D re-engineers a product

• Employee was arrested over the weekend

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TOOLS FOR TACKLING TRICKY SITUATIONS

• Consider all relevant laws (AECA, NFA, GCA, SEA)• Friendly reminder: There is overlap!

• Which requirements are impacted? • Site license? Transactional permit? Exemption eligibility? A&D record

format? Marking requirements? Storage requirements? Prohibited persons? What else?

• Is there a change that must be reported to ATF?• Changes of address, ownership or control; discontinued business;

opening new business; operating under a new/different trade name

• Ask ATFSIA Proprietary

QUESTIONS

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BATFE Bureau of Alcohol, Tobacco, Firearms and...

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