Definition of “Frame or Receiver” and Identification of Firearms

Published date21 May 2021
Citation86 FR 27720
Record Number2021-10058
SectionProposed rules
CourtAlcohol, Tobacco, Firearms, And Explosives Bureau
Federal Register, Volume 86 Issue 97 (Friday, May 21, 2021)
[Federal Register Volume 86, Number 97 (Friday, May 21, 2021)]
                [Proposed Rules]
                [Pages 27720-27753]
                From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
                [FR Doc No: 2021-10058]
                [[Page 27719]]
                Vol. 86
                Friday,
                No. 97
                May 21, 2021
                Part IIIDepartment of Justice----------------------------------------------------------------------- Bureau of Alcohol, Tobacco, Firearms, and Explosives-----------------------------------------------------------------------27 CFR Parts 447, 478, and 479Definition of ``Frame or Receiver'' and Identification of Firearms;
                Proposed Rule
                Federal Register / Vol. 86 , No. 97 / Friday, May 21, 2021 / Proposed
                Rules
                [[Page 27720]]
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                DEPARTMENT OF JUSTICE
                Bureau of Alcohol, Tobacco, Firearms, and Explosives
                27 CFR Parts 447, 478, and 479
                [Docket No. ATF 2021R-05; AG Order No. 5051-2021]
                RIN 1140-AA54
                Definition of ``Frame or Receiver'' and Identification of
                Firearms
                AGENCY: Bureau of Alcohol, Tobacco, Firearms, and Explosives,
                Department of Justice.
                ACTION: Notice of proposed rulemaking; request for comment.
                -----------------------------------------------------------------------
                SUMMARY: The Department of Justice (``Department'') proposes amending
                Bureau of Alcohol, Tobacco, Firearms, and Explosives (``ATF'')
                regulations to provide new regulatory definitions of ``firearm frame or
                receiver'' and ``frame or receiver'' because the current regulations
                fail to capture the full meaning of those terms. The Department also
                proposes amending ATF's definitions of ``firearm'' and ``gunsmith'' to
                clarify the meaning of those terms, and to provide definitions of terms
                such as ``complete weapon,'' ``complete muffler or silencer device,''
                ``privately made firearm,'' and ``readily'' for purposes of clarity
                given advancements in firearms technology. Further, the Department
                proposes amendments to ATF's regulations on marking and recordkeeping
                that are necessary to implement these new or amended definitions.
                DATES: Written comments must be postmarked and electronic comments must
                be submitted on or before August 19, 2021. Commenters should be aware
                that the electronic Federal Docket Management System will not accept
                comments after Midnight Eastern Time on the last day of the comment
                period.
                ADDRESSES: You may submit comments, identified by docket number ATF
                2021R-05, by any of the following methods--
                 Federal eRulemaking Portal: www.regulations.gov. Follow
                the instructions for submitting comments.
                 Mail: Andrew Lange, Office of Regulatory Affairs,
                Enforcement Programs and Services, Bureau of Alcohol, Tobacco,
                Firearms, and Explosives, 99 New York Ave. NE, Mail Stop 6N-518,
                Washington, DC 20226; ATTN: ATF 2021R-05.
                 Fax: (202) 648-9741.
                 Instructions: All submissions received must include the agency name
                and docket number (ATF 2021R-05) for this notice of proposed rulemaking
                (``NPRM'' or ``proposed rule''). All properly completed comments
                received will be posted without change to the Federal eRulemaking
                portal, www.regulations.gov, including any personal information
                provided. For detailed instructions on submitting comments and
                additional information on the rulemaking process, see the ``Public
                Participation'' heading of the SUPPLEMENTARY INFORMATION section of
                this document.
                FOR FURTHER INFORMATION CONTACT: Andrew Lange, Office of Regulatory
                Affairs, Enforcement Programs and Services, Bureau of Alcohol, Tobacco,
                Firearms, and Explosives, U.S. Department of Justice, 99 New York Ave.
                NE, Mail Stop 6N-518, Washington, DC 20226; telephone: (202) 648-7070
                (this is not a toll-free number).
                SUPPLEMENTARY INFORMATION:
                I. Background
                 The Attorney General is responsible for enforcing the Gun Control
                Act of 1968 (``GCA''), as amended, and the National Firearms Act of
                1934 (``NFA''), as amended.\1\ This responsibility includes the
                authority to promulgate regulations necessary to enforce the provisions
                of the GCA and NFA. See 18 U.S.C. 926(a); 26 U.S.C. 7801(a)(2)(A),
                7805(a). Congress and the Attorney General have delegated the
                responsibility for administering and enforcing the GCA and NFA to the
                Director of ATF, subject to the direction of the Attorney General and
                the Deputy Attorney General. See 28 U.S.C. 599A(b)(1); 28 CFR
                0.130(a)(1)-(2). Accordingly, the Department and ATF have promulgated
                regulations implementing the GCA and NFA. See 27 CFR parts 478, 479.
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                 \1\ NFA provisions still refer to the ``Secretary of the
                Treasury.'' 26 U.S.C. ch. 53. However, the Homeland Security Act of
                2002, Public Law 107-296, 116 Stat. 2135 (2002), transferred the
                functions of ATF from the Department of the Treasury to the
                Department of Justice, under the general authority of the Attorney
                General. 26 U.S.C. 7801(a)(2); 28 U.S.C. 599A(c)(1). Thus, for ease
                of reference, this notice of proposed rulemaking refers to the
                Attorney General throughout.
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                 Prior to passage of the GCA, the Federal Firearms Act of 1938
                (``FFA'') regulated all firearm parts. The FFA and implementing
                regulations defined the term ``firearm'' to mean ``any weapon, by
                whatever name known, which is designed to expel a projectile or
                projectiles by the action of an explosive and a firearm muffler or
                firearm silencer, or any part or parts of such weapon.'' Public Law 75-
                785, 52 Stat. 1250 (1938); 26 CFR 177.10 (repealed) (emphasis added).
                The Omnibus Crime Control and Safe Streets Act of 1968 repealed the
                FFA, replacing it with the GCA. Public Law 90-351, section 907, 82
                Stat. 197 (1968). During debate on the GCA and related bills introduced
                to address firearms trafficking, Congress recognized that regulation of
                all firearm parts was impractical. Senator Dodd explained that ``[t]he
                present definition of this term includes `any part or parts' of a
                firearm. It has been impractical to treat each small part of a firearm
                as if it were a weapon. The revised definition substitutes the words
                `frame or receiver' for the words `any part or parts.' '' See 111 Cong.
                Rec. 5527 (March 22, 1965).\2\
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                 \2\ See also H.R. Rep. 90-1577, at 4416 (June 21, 1968) (``Under
                former definitions of `firearm,' any part or parts of such a weapon
                were included. It was found impractical to have controls over each
                small part of a firearm. Thus, this definition includes only the
                major parts of the firearm, that is, the frame or receiver.''); S.
                Rep. No. 90-1097, at 2200 (April 29, 1968) (same).
                ---------------------------------------------------------------------------
                 A ``firearm'' is defined by 18 U.S.C. 921(a)(3) to include not only
                a weapon that will, is designed to, or may readily be converted to
                expel a projectile, but also the ``frame or receiver'' of any such
                weapon. Because ``frames'' or ``receivers'' are included in the
                definition of ``firearm,'' any person who engages in the business of
                manufacturing, importing, or dealing in frames or receivers must obtain
                a license from ATF. 18 U.S.C. 922(a)(1)(A); id. at 923(a). Each
                licensed manufacturer or importer must ``identify by means of a serial
                number engraved or cast on the receiver or frame of the weapon, in such
                manner as the Attorney General shall by regulations prescribe, each
                firearm imported or manufactured by such importer or manufacturer.''
                \3\ 18 U.S.C. 923(i); see 27 CFR 478.92, 479.102. Licensed
                manufacturers and importers must also maintain permanent records of
                production or importation, as well as their receipt, sale, or other
                disposition of firearms, including frames or receivers. 18 U.S.C.
                923(g)(1)(A); 27 CFR 478.122, 478.123.
                ---------------------------------------------------------------------------
                 \3\ Additionally, a firearm frame or receiver that is not a
                component part of a complete weapon at the time it is sold, shipped,
                or disposed of must be identified in the manner prescribed with a
                serial number and all of the other required markings. 27 CFR
                478.92(a)(2); id. at 479.102(e); ATF Ruling 2012-1.
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                 A ``frame or receiver'' is the primary structural component of a
                firearm to which fire control components are attached.\4\ While the GCA
                does not
                [[Page 27721]]
                define the term ``frame or receiver,'' to implement the statute, the
                terms ``firearm frame or receiver'' and ``frame or receiver'' were
                defined in regulations several decades ago as that part of a firearm
                that provides housing for the hammer, bolt or breechblock, and firing
                mechanism, and which is usually threaded at its forward portion to
                receive the barrel. 27 CFR 478.11 (implementing GCA, Title I); 27 CFR
                479.11 \5\ (implementing GCA, Title II). The intent in promulgating
                these definitions was to provide guidance as to which portion of a
                firearm was the frame or receiver for purposes of licensing,
                serialization, and recordkeeping, thereby ensuring that a necessary
                component of the weapon could be traced if later involved in a crime.
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                 \4\ See Webster's Third New International Dictionary, pp. 902,
                1894 (1971) (a ``frame'' is ``the basic unit of a handgun which
                serves as a mounting for the barrel and operating parts of the
                arm''; ``receiver'' means ``the metal frame in which the action of a
                firearm is fitted and to which the breech end of the barrel is
                attached''); Olson's Encyclopedia of Small Arms, p.72 (1985) (the
                term ``frame'' means ``the basic structure and principal component
                of a firearm''); Steindler's New Firearms Dictionary p. 209 (1985)
                (``receiver'' means ``that part of a rifle or shotgun (excepting
                hinged frame guns) that houses the bolt, firing pin, mainspring,
                trigger group, and magazine or ammunition feed system. The barrel is
                threaded into the somewhat enlarged forward part of the receiver,
                called the receiver ring. At the rear of the receiver, the butt or
                stock is fastened. In semiautomatic pistols, the frame or housing is
                sometimes referred to as the receiver.'').
                 \5\ The definition of ``frame or receiver'' in Sec. 479.11
                differs slightly from the definition in Sec. 478.11 in that it
                omits an Oxford comma between ``bolt or breechblock'' and ``firing
                mechanism.''
                ---------------------------------------------------------------------------
                 At the time these definitions were published around 50 years ago,
                single-framed firearms such as revolvers and break-open shotguns were
                far more prevalent for civilian use than split/multi-piece receiver
                weapons, such as semiautomatic rifles and pistols with detachable
                magazines. Single-framed firearms incorporate the hammer, bolt or
                breechblock, and firing mechanism within the same housing. Years after
                these definitions were published, split/multi-piece receiver firearms,
                such as the AR-15 semiautomatic rifle (upper receiver and lower
                receiver), Glock semiautomatic pistols (upper slide assembly and lower
                grip module), and Sig Sauer P320 (M17/18 as adopted by the U.S.
                military) (upper slide assembly, chassis, and lower grip module),
                became popular.\6\ Additionally, more firearm manufacturers began
                incorporating a striker-fired mechanism rather than a ``hammer'' in the
                firing design. With the rise in popularity of striker-fired Glock
                semiautomatic pistols in the mid-1980s, other manufacturers began
                incorporating a striker-fired mechanism, rather than a hammer, in
                semiautomatic handguns.\7\
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                 \6\ See Once Banned, Now Loved and Loathed: How the AR-15 Became
                `America's Rifle', New York Times (Mar. 3, 2018), https://www.nytimes.com/2018/03/03/us/politics/ar-15-americas-rifle.html
                (Once the patent expired in 1977, ``it opened the way for dozens of
                weapons manufacturers to produce their own models, using the same
                technology. The term AR-15 has become a catchall that includes a
                variety of weapons that look and operate similarly''); Paul M.
                Barrett, Glock: The Rise of America's Gun 21-23 (2013) (``Today the
                Glock is on the hip of more American police officers than any other
                handgun.''); A Star Is Born--U.S. Army Chooses Sig Sauer P320 For
                Its New Service Pistol, Forbes.com (Jan. 20, 2017) https://www.forbes.com/sites/frankminiter/2017/01/20/a-star-is-born-u-s-army-chooses-sig-sauer-p320-for-its-new-service-pistol/. While
                millions of AR-15s/M-16s existed at the time ATF promulgated the
                definitions, they were manufactured almost exclusively for military
                use. See Internal Colt Memorandum from B. Northrop, Feb. 2, 1973,
                p.2 (noting that there were 2,752,812 military versus 25,774
                civilian (``Sporters'') serialization of AR-15/M-16 rifles then
                manufactured).
                 \7\ A Matter of Purpose: Striker Fire vs. Hammer Fire, Small
                Arms Defense Journal (June 8, 2018), http://www.sadefensejournal.com/wp/a-matter-of-purpose-striker-fire-vs-hammer-fire/ (``Even though Glock wasn't the first to use striker
                fire on pistols, Glock can be credited for making the striker fire
                popular in the 1980s when they started using striker fire in their
                entire line of pistols. As Glock became popular, other manufacturers
                started using striker fire as well, proliferating it across the
                firearms manufacturing community on a grand scale.'').
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                A. ATF's Application of the Definitions To Split Frames or Receivers
                 Although ATF's regulatory definitions of ``frame or receiver'' do
                not expressly capture these types of firearms (i.e., split/multi-piece
                receivers) that now constitute the majority of firearms in the United
                States,\8\ ATF's position has long been that the weapon ``should be
                examined with a view toward determining if [either] the upper or lower
                half of the receiver more nearly fits the legal definition of
                `receiver,' '' and more specifically, for machineguns, whether the
                upper or lower portion has the ability to accept machinegun
                parts.9 10
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                 \8\ United States v. Rowold, 429 F. Supp. 3d 469 (N.D. Ohio
                2019), Testimony of ATF Firearms Enforcement Officer Daniel Hoffman
                at Doc. No. 60, Hrg. Tr., Page ID 557 (approximately 10% of
                currently manufactured firearms in the United States include the
                three components in the frame or receiver definition); and Defense
                Expert Daniel O'Kelly at Doc. No. 60, Hrg. Tr. Page ID 482 (``90
                some percent of [semiautomatic pistols] do not have a part which has
                more than one of these four elements in it and, therefore, don't
                qualify, according to the definition in the CFR.'').
                 \9\ ATF Internal Revenue Service Memoranda #21208 (Mar. 1, 1971)
                (lower portion of the M-16 is the frame or receiver because it comes
                closest to meeting the definition of frame or receiver in 26 CFR
                178.11 (now 27 CFR 478.11), and is the receiver of a machinegun as
                defined in the NFA); ATF Memorandum #22334 (Jan. 24, 1977) (upper
                half of the FN FAL rifle is the frame or receiver because it was
                designed to accept the components that allow fully automatic fire).
                The ability to accept machinegun parts is considered because both
                the GCA and the NFA regulate machinegun receivers as
                ``machineguns.'' See 18 U.S.C. 921(a)(23); 26 U.S.C. 5845(b) (``The
                term [``machinegun''] shall also include the frame or receiver of
                any such weapon [which shoots is designed to shoot, or can be
                readily restored to shoot, automatically more than one shot, without
                manual reloading, by a single function of the trigger].'').
                 \10\ Regulations implementing the relevant statutes spell the
                term ``machine gun'' rather than ``machinegun.'' E.g., 27 CFR
                478.11, 479.11. For convenience, this notice of proposed rulemaking
                uses ``machinegun'' except when quoting a source to the contrary.
                ---------------------------------------------------------------------------
                 Since it began issuing firearm classifications under the GCA and
                NFA in private letter rulings and for criminal investigations, ATF has
                considered a variety of factors when examining firearms, including: (a)
                Which component the manufacturer intended to be the frame or receiver;
                (b) which component the firearms industry commonly considers to be the
                frame or receiver with respect to the same or similar firearms; (c) how
                the component fits within the overall design of the firearm when
                assembled; (d) the design and function of the fire control components
                to be housed, such as the hammer, bolt or breechblock, and firing
                mechanism; (e) whether the component could permanently, conspicuously,
                and legibly be identified with a serial number and other markings in a
                manner not susceptible of being readily obliterated, altered, or
                removed, in accordance with regulations; (f) whether classifying the
                particular component is consistent with the legislative intent of the
                GCA and implementing regulations; and (g) whether classifying the
                component as the frame or receiver is consistent with ATF's prior
                classifications.
                 Even though neither the upper nor the lower portion of a split/
                multi-piece receiver firearm alone falls within the precise wording of
                the regulatory definition, ATF has for many years interpreted the
                regulatory definition using these factors as a guide in determining
                which portion of a weapon model is a firearm frame or receiver. Indeed,
                the current definitions were never intended to be, or understood to be,
                exhaustive; at the time the current definitions were adopted there were
                numerous models of firearms that did not contain a part that fully met
                the regulatory definition of ``frame or receiver,'' such as the Colt
                1911, FN-FAL, and the AR-15/M-16, all of which were originally
                manufactured almost exclusively for military use, and ATF has long
                applied these factors in determining which component of those weapons
                qualifies as the frame or receiver.\11\
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                 \11\ See footnote 9 supra.
                ---------------------------------------------------------------------------
                 Existing law recognizes that the definition of ``frame or
                receiver'' need not be limited to a strict application of the
                regulation. The prefatory paragraph to the definitional section of 27
                CFR 478.11 (Meaning of Terms) states: ``[w]hen used in this part and in
                forms
                [[Page 27722]]
                prescribed under this part, where not otherwise distinctly expressed or
                manifestly incompatible with the intent thereof, terms shall have the
                meanings ascribed in this section.'' \12\ The intent of Congress, as
                indicated by the plain language and the statutory scheme of the GCA, is
                to regulate--as a firearm--the frame or receiver of a firearm. See 111
                Cong. Rec. 5527 (March 22, 1965). As stated above, Congress replaced
                the term ``part or parts'' in the FFA definition of ``firearm'' with
                ``frame or receiver,'' the major parts of a weapon regulated under the
                GCA. This includes marking these parts with serial numbers for tracing
                purposes, recording these parts as ``firearms'' in required records,
                and running a National Instant Criminal Background Check System
                (``NICS'') background check when individuals purchase or acquire them.
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                 \12\ ATF's predecessor agency, the Alcohol, Tobacco and Firearms
                Division within the Internal Revenue Service, derived this
                limitation on the application of definitions from the Internal
                Revenue Code (``IRC''), 26 U.S.C. 7701(a). Courts interpreting
                definitions in the IRC have not strictly applied those definitions
                where they would be manifestly incompatible with the intent of the
                applicable statute. See, e.g., Pierre v. Commissioner, 133 T.C. 24,
                35 (2009) (even though a Limited Liability Company was not among any
                of the named entities defined in section 7701, it would be
                manifestly incompatible with the Federal estate and gift tax
                statutes to exclude them); Bunnel v. Commissioner, 50 T.C. 837, 841
                (1968) (literal application of the definition of ``taxpayer'' in
                section 7701(a)(14) was avoided where it was manifestly incompatible
                with the intent of other sections of the IRC); Davis v.
                Commissioner, 30 T.C. 462, 466-67 (1958) (strict geographical
                application of the term ``United States'' in 26 U.S.C. 3797(a)(9)
                (now 7701(a)(9)) to the territory of American Samoa, rather than in
                a political sense, would be manifestly incompatible with the intent
                and purpose of the income tax exemption for persons earning income
                outside the United States).
                ---------------------------------------------------------------------------
                 In the past few years, however, some courts have treated the
                regulatory definition as exhaustive when applied to the lower portion
                of the AR-15-type rifle, which is the semiautomatic version of the M-
                16-type machinegun originally designed for the U.S. military. While ATF
                for decades has classified the lower receiver of the AR-15 rifle as a
                ``frame or receiver,'' courts recently have read the regulatory
                definition to mean that the lower portion of the AR-15 is not a ``frame
                or receiver'' because it only provides housing for the hammer and
                firing mechanism, but not the bolt or breechblock. See United States v.
                Rowold, 429 F. Supp. 3d 469, 475-77 (N.D. Ohio 2019) (``The language of
                the regulatory definition in Sec. 478.11 lends itself to only one
                interpretation: namely, that under the GCA, the receiver of a firearm
                must be a single unit that holds three, not two components: 1) the
                hammer, 2) the bolt or breechblock, and 3) the firing mechanism.'');
                United States v. Jimenez, 191 F. Supp. 3d 1038, 1041 (N.D. Cal. 2016)
                (``[A] receiver must have the housing for three elements: hammer, bolt
                or breechblock, and firing mechanism.''); United States v. Joseph Roh,
                SACR 14-167-JV, Minute Order p. 6 (C.D. Cal. July 27, 2020) (granting
                defendant's post-trial motion for acquittal for manufacturing AR-15
                lower receivers without a license because ``[n]o reasonable person
                would understand that a part constitutes a receiver where it lacks the
                components specified in regulation'').
                 These courts' interpretation of ATF's regulations, if broadly
                followed, could mean that as many as 90 percent of all firearms now in
                the United States would not have any frame or receiver subject to
                regulation.\13\ Those firearms would include numerous widely available
                models, such as Glock-type and Sig Sauer P320 \14\ pistols, that do not
                utilize a hammer--a named component--in the firing sequence. Such a
                narrow interpretation of what constitutes a frame or receiver would
                allow persons to avoid: (a) Obtaining a license to engage in the
                business of manufacturing or importing upper or lower frames or
                receivers; (b) identifying upper or lower frames or receivers with a
                serial number and other traceable markings; (c) maintaining records of
                upper or lower frames or receivers produced or imported through which
                they can be traced; and (d) running NICS checks on potential
                transferees to determine if they are legally prohibited from receiving
                or possessing firearms when they acquire upper or lower frames or
                receivers. In turn, this would allow prohibited persons to acquire
                upper and lower receivers that can quickly be assembled into
                semiautomatic weapons more easily and without a background check.\15\
                If no portion of split/multi-piece frames or receivers were subject to
                any existing regulations, such as marking, recordkeeping, or background
                checks, law enforcement's ability to trace semiautomatic firearms later
                used in crime would be severely impeded. This result would thereby
                undermine the intent of Congress in requiring the frame or receiver of
                every firearm to be identified, see 18 U.S.C. 923(i), and regulated as
                a firearm, see 18 U.S.C. 921(a)(3)(B).\16\
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                 \13\ See footnote 8, supra.
                 \14\ The United States military services have adopted variants
                of the Sig Sauer P320 as their official side arm, and are in the
                process of purchasing up to 500,000 of these striker-fired pistols.
                Army Picks Sig Sauer's P320 Handgun to Replace M9 Service Pistol,
                Military.com (Jan. 19, 2017), https://www.military.com/daily-news/2017/01/19/army-picks-sig-sauer-replace-m9-service-pistol.html;
                Every U.S. military branch is about to get its hands on the Army's
                new sidearm of choice, Taskandpurpose.com (Nov. 18, 2020), https://taskandpurpose.com/military-tech/modular-handgun-system-fielding/
                (Sig Sauer delivered its 200,000th P320 variant pistol to the
                military despite the obstacles posed by the novel coronavirus).
                 \15\ See Design of AR-15 could derail charges tied to popular
                rifle, APnews.com (Jan. 13, 2020), https://apnews.com/article/396bbedbf4963a28bda99e7793ee6366.
                 \16\ See footnote 2, supra.
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                B. Privately Made Firearms or ``Ghost Guns''
                 Technological advances have also made it easier for unlicensed
                persons to make firearms at home from standalone parts or weapon parts
                kits, or by using 3D printers or personally owned or leased equipment,
                without any records or a background check. Commonly referred to as
                ``ghost guns,'' these privately made firearms (``PMFs''), when made for
                personal use, are not required by the GCA to have a serial number
                placed on the frame or receiver, making it difficult for law
                enforcement to determine where, by whom, or when they were
                manufactured, and to whom they were sold or otherwise disposed.
                 In recent years, the number of PMFs recovered from crime scenes
                throughout the country has increased.\17\ From January 1, 2016, through
                December 31, 2020, there were approximately 23,906 suspected PMFs
                reported to ATF as having been recovered by law enforcement from
                potential crime scenes, including 325 homicides or attempted homicides,
                and that were attempted to be traced by ATF, broken down by year as
                follows: \18\
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                 \17\ See Baltimore police report a 400% increase in untraceable
                `ghost guns', The Baltimore Sun (Feb. 18, 2021), http://www.baltimoresun.com/news/crime/bs-pr-md-ci-cr-ghost-gun-ban-20210218-ae2dortu6ngn5llmfmq6yxtx6m-story.html; Syracuse joins
                lawsuit against feds amid rise in ghost guns, WRVO Syracuse (Aug.
                27, 2020), https://www.wrvo.org/post/syracuse-joins-lawsuit-against-feds-amid-rise-ghost-guns#stream/0; Ghost Guns: The build-it-
                yourself firearms that skirt most federal gun laws and are virtually
                untraceable, CBS News (May 10, 2020), https://www.cbsnews.com/news/ghost-guns-untraceable-weapons-criminal-cases-60-minutes-2020-05-10/
                ; Untraceable ghost guns proliferate as Philadelphia grapples with
                violence, The Morning Call (Mar. 18, 2020), https://www.mcall.com/news/pennsylvania/mc-nws-pa-philadelphia-ghost-guns-20200318-jzyt4thyvvgntproexbleyleay-story.html; Ghost Guns Are Everywhere in
                California, The Trace (May 17, 2019), https://www.thetrace.org/2019/05/ghost-gun-california-crime/; The Rise of Untraceable Ghost Guns,
                Wall Street Journal (Jan. 4, 2018), https://www.wsj.com/articles/the-rise-of-untraceable-ghost-guns-1515061800; How D.C. Is
                Addressing An Ongoing Spike In Gun Violence, NPR Washington (Mar. 2,
                2020), https://www.npr.org/local/305/2020/03/02/811194978/how-d-c-is-addressing-an-ongoing-spike-in-gun-violence; Untraceable `Ghost
                Guns' sold across Central Florida, WKMG-TV Orlando (Nov. 15, 2016),
                https://www.clickorlando.com/getting-results/2016/11/15/untraceable-ghost-guns-sold-across-central-florida/.
                 \18\ Source: ATF Office of Strategic Intelligence and
                Information. These numbers (as of March 4, 2021) are likely far
                lower than the actual number of PMFs recovered from crime scenes
                because some law enforcement departments incorrectly trace some PMFs
                as commercially manufactured firearms, or may not see a need to use
                their resources to attempt to trace firearms with no serial number
                or other identifiable markings. The term ``suspected PMF'' is used
                because of the difficulty of getting law enforcement officials to
                uniformly enter PMF trace information into ATF's electronic tracing
                system (``eTrace''), resulting in reporting inconsistencies of PMFs
                involved in crime. For example, often PMFs resemble commercially
                manufactured firearms, or incorporate parts from commercially
                manufactured firearms bearing that manufacturer's name, so some
                firearms suspected of being PMFs were entered into eTrace using a
                commercial manufacturer's name rather than as one privately made by
                an individual. The term ``potential crime scenes'' is used because
                ATF does not know if the firearm being traced by the law enforcement
                agency was found at a crime scene as opposed to one recovered by
                them that was stolen or otherwise not from at the scene of a crime.
                This is because the recovery location or correlated crime is not
                always communicated by the agency to ATF in the tracing process.
                [[Page 27723]]
                ---------------------------------------------------------------------------
                2016: 1,750
                2017: 2,507
                2018: 3,776
                2019: 7,161
                2020: 8,712
                It is, therefore, not unexpected that numerous Federal criminal cases
                have been brought by the Department to counter illegal trafficking in
                unserialized home-completed and assembled weapons, and possession of
                such weapons by prohibited persons.\19\
                ---------------------------------------------------------------------------
                 \19\ See, e.g., Kissimmee Man Sentenced To Five Years In Prison
                For Manufacturing Over 200 ``Ghost Guns'' Without A License, D.O.J
                Office of Public Affairs (June 12, 2018), https://www.justice.gov/usao-mdfl/pr/kissimmee-man-sentenced-five-years-prison-manufacturing-over-200-ghost-guns-without; Grass Valley Man
                Sentenced to 5 Years in Prison for Unlawfully Manufacturing Ghost
                Guns and Selling Them on Dark Web, DOJ Office of Public Affairs
                (Sept. 21, 2018), https://www.justice.gov/usao-edca/pr/grass-valley-man-sentenced-5-years-prison-unlawfully-manufacturing-ghost-guns-and; Rhode Island Man Charged with Building, Selling ``Ghost''
                Machine Gun, DOJ Office of Public Affairs (Dec. 12, 2018), https://www.justice.gov/usao-ri/pr/rhode-island-man-charged-building-selling-ghost-machine-gun; Conroe Man Ordered to Prison for Making
                ``Ghost Guns'', DOJ Office of Public Affairs (Feb. 21, 2019) https://www.justice.gov/usao-sdtx/pr/conroe-man-ordered-prison-making-ghost-guns; Seven Felons Indicted, Dozens of Firearms Seized as Part
                of Investigation Targeting Criminal Gun Sales in Orange County, DOJ
                Office of Public Affairs (Oct. 10, 2019), https://www.justice.gov/usao-cdca/pr/seven-felons-indicted-dozens-firearms-seized-part-investigation-targeting-criminal-gun; Man Sentenced to 15 Years for
                Trafficking ``Ghost Guns'' and Drugs, DOJ Office of Public Affairs
                (Feb. 14, 2020), https://www.justice.gov/usao-edva/pr/man-sentenced-15-years-trafficking-ghost-guns-and-drugs; Tampa Man Sentenced To
                Over Five Years For Manufacturing Counterfeit Credit Cards, Fake
                IDs, And Illegal Firearms, DOJ Office of Public Affairs (June 26,
                2020), https://www.justice.gov/usao-mdfl/pr/tampa-man-sentenced-over-five-years-manufacturing-counterfeit-credit-cards-fake-ids-and;
                Alleged Dealer of Ghost Guns and Machinegun Conversion Devices
                Arraigned, DOJ Office of Public Affairs (July 15, 2020), https://www.justice.gov/usao-edva/pr/alleged-dealer-ghost-guns-and-machinegun-conversion-devices-arraigned; Connecticut Man Charged
                with Firearm Trafficking, DOJ Office of Public Affairs (Aug. 12,
                2020), https://www.justice.gov/usao-ma/pr/connecticut-man-charged-firearm-trafficking; Operation `Black Phoenix' Leads to Federal
                Charges Against 25 Who Allegedly Engaged in Illegal Narcotics and
                Firearms Sales, DOJ Office of Public Affairs (Sept. 15, 2020),
                https://www.justice.gov/usao-cdca/pr/operation-black-phoenix-leads-federal-charges-against-25-who-allegedly-engaged-illegal; D.C. Felon
                Pleads Guilty in Federal Court in Maryland to Illegal Possession of
                a ``Ghost Gun'' Firearm and Ammunition, DOJ Office of Public Affairs
                (Sept. 22, 2020), https://www.justice.gov/usao-md/pr/dc-felon-pleads-gui; Ghost Gun and Machine Gun Conversion Device Dealer
                Pleads Guilty, DOJ Office of Public Affairs (Sept. 29, 2020),
                https://www.justice.gov/usao-edva/pr/ghost-gun-and-machine-gun-conversion-device-dealer-pleads-guilty; Felon sentenced to more than
                five years in prison for arsenal of `ghost guns' and smuggled
                silencers, DOJ Office of Public Affairs (Oct. 9, 2020), https://www.justice.gov/usao-wdwa/pr/felon-sentenced-more-five-years-prison-arsenal-ghost-guns-and-smuggled-silencers; Montgomery County Man
                Admits to Unlawfully Selling ``Ghost Guns'', DOJ Office of Public
                Affairs (Nov. 5, 2020), https://www.justice.gov/usao-ndny/pr/montgomery-county-man-admits-unlawfully-selling-ghost-guns; Drug
                Dealer Who Sold ``Ghost Guns,'' Silencers, and a Machinegun
                Sentenced to Thirty Years in Federal Prison, DOJ Office of Public
                Affairs (Nov. 6, 2020), https://www.justice.gov/usao-ndia/pr/drug-dealer-who-sold-ghost-guns-silencers-and-machinegun-sentenced-thirty-years-federal; Baltimore Man Sentenced to 21 Years in Federal
                Prison for Five Bank Robberies, Five Armed Robberies of Liquor
                Stores, and Related Firearms Charges, DOJ Office of Public Affairs
                (Nov. 12, 2020), https://www.justice.gov/usao-md/pr/baltimore-man-sentenced-21-years-federal-prison-five-bank-robberies-five-armed-robberies; Philadelphia Man Sentenced to 12\1/2\ Years for
                Trafficking Methamphetamine and Weapons, Including `Ghost Guns,'
                Near Schools, DOJ Office of Public Affairs (Dec. 30, 2020), https://www.justice.gov/usao-edpa/pr/philadelphia-man-sentenced-12-12-years-trafficking-methamphetamine-and-weapons; Vineland Boys Gang Member
                Pleads Guilty to Racketeering Offenses, Including Attempted Murder
                and Narcotics Trafficking, DOJ Office of Public Affairs (Jan. 22,
                2021), https://www.justice.gov/usao-cdca/pr/vineland-boys-gang-member-pleads-guilty-racketeering-offenses-including-attempted;
                Burbank Man Arrested on Federal Complaint Alleging He Sold `Ghost
                Guns' Out of His Hookah Lounge, DOJ Office of Public Affairs (Jan.
                29, 2021), https://www.justice.gov/usao-cdca/pr/burbank-man-arrested-federal-complaint-alleging-he-sold-ghost-guns-out-his-hookah; Saratoga County Man Admits to Unlawfully Selling ``Ghost
                Guns'' and Methamphetamine Distribution, DOJ Office of Public
                Affairs (Feb. 3, 2021), https://www.justice.gov/usao-ndny/pr/saratoga-county-man-admits-unlawfully-selling-ghost-guns-and-methamphetamine; Orange County Man Sentenced to 10 Years in Federal
                Prison for Brokering Illegal Sales of `Ghost Guns,' Other Firearms,
                DOJ Office of Public Affairs (Feb. 8, 2021), https://www.justice.gov/usao-cdca/pr/orange-county-man-sentenced-10-years-federal-prison-brokering-illegal-sales-ghost-guns.
                ---------------------------------------------------------------------------
                 The problem of untraceable firearms being acquired and used by
                violent criminals and terrorists is international in scope. On May 28,
                2019, citing intelligence reports by the Department of Homeland
                Security (``DHS''), the Federal Bureau of Investigation (``FBI''), and
                the National Counterterrorism Center (``NCTC''), the House Committee on
                Homeland Security issued a report concluding that ``[g]host guns not
                only pose a challenge on the front end, enabling prohibited buyers to
                purchase deadly weapons with just a few clicks online, but also on the
                back end, hamstringing law enforcement's ability to investigate crimes
                committed with untraceable weapons'' and that the ``wide availability
                of ghost guns and the emergence of functional 3D-printed guns are a
                homeland security threat. Terrorists and other bad actors may seek to
                exploit the availability of these weapons for dangerous ends.'' H.R.
                Rep. No. 116-88, at 2 (May 28, 2019).\20\ Criminal investigations and
                studies highlight this concern.\21\
                ---------------------------------------------------------------------------
                 \20\ Specifically, the House Report cited a January 11, 2019,
                Joint Intelligence Bulletin issued by DHS, FBI, and NCTC concluding
                that ``these rapidly evolving technologies pose an ongoing,
                metastasizing challenge to law enforcement in understanding,
                tracking, and tracing ghost guns,'' and an April 19, 2019, DHS
                intelligence assessment that ``repeated the warning that ghost guns
                pose an urgent and evolving threat to the homeland, particularly in
                the hands of ideologically motivated lone wolf actors.'' H.R. Rep.
                No. 116-88, at 2.
                 \21\ CBP: 3-D-printed full-auto rifle seized at Lukeville
                crossing, tucsonsentinel.com (Feb. 8, 2016), http://www.tucsonsentinel.com/local/report/020816_3d_printed_gun/cbp-3-d-printed-full-auto-rifle-seized-lukeville-crossing/; Firearms using
                3D-printed components seized in Sweden, Armament Research Services
                (May 19, 2017), https://armamentresearch.com/3d-printed-firearms-seized-in-sweden/; The TSA Has Found 3D-Printed Guns at Airport
                Checkpoints 4 Times Since 2016, Time (Aug. 2, 2018), https://time.com/5356179/3d-printed-guns-tsa/; Indiana Residents Indicted on
                Terrorism and Firearms Charges, DOJ Office of Public Affairs (July
                11, 2019), https://www.justice.gov/opa/pr/indiana-residents-indicted-terrorism-and-firearms-charges; Use of 3D printed guns in
                German synagogue shooting must act as warning to security services,
                experts say, independent.co.uk (Oct. 11, 2019), https://www.independent.co.uk/news/world/europe/3d-gun-print-germany-synagogue-shooting-stephan-balliet-neo-nazi-a9152746.html; TSA
                Confiscated 3D-Printed Guns at Raleigh-Durham International Airport,
                nextgov.com (Mar. 4, 2020), https://www.nextgov.com/emerging-tech/2020/03/tsa-confiscated-3d-printed-guns-raleigh-durham-international-airport/163533/; Man Sentenced for Attempting to Board
                International Flight with a Loaded Firearm, DOJ Office of Public
                Affairs (Mar. 12, 2021), https://www.justice.gov/usao-sdca/pr/man-sentenced-attempting-board-international-flight-loaded-firearm;
                Glock ghost guns up for grabs on the dark web, Australian National
                University (Mar. 23, 2021), https://www.anu.edu.au/news/all-news/glock-ghost-guns-up-for-grabs-on-the-dark-web; Spain dismantles
                workshop making 3D-printed weapons, BBC, (Apr. 19, 2021), https://www.bbc.com/news/world-europe-56798743.
                ---------------------------------------------------------------------------
                 The GCA ``insists that the dealer keep certain records, to enable
                federal authorities both to enforce the law's verification measures and
                to trace firearms used in crimes.'' Abramski v. United States, 573 U.S.
                169, 173 (2014) (citing H. Rep. No. 1577, 90th Cong., 2d Sess., 14
                (1968)). ``That information helps to fight serious crime.'' Id. at 182;
                see also Identification Markings Placed on Firearms, 66 FR 40597 (Aug.
                3, 2001) (``Firearms tracing is an integral part of
                [[Page 27724]]
                any investigation involving the criminal use of firearms.''); Blaustein
                & Reich, Inc. v. Buckles, 220 F. Supp. 2d 535, 537 (E.D. Va. 2002) (ATF
                has a statutory duty pursuant to the GCA to trace firearms to keep them
                out of the hands of criminals).\22\ An accurate firearm description is
                necessary to trace a firearm and is required to be recorded by a person
                licensed to engage in the business of manufacturing, importing, or
                dealing in firearms, or by a licensed collector of curio or relic
                firearms, regardless of whether it is a business or personal
                firearm.\23\
                ---------------------------------------------------------------------------
                 \22\ See also ATF Ruling 2009-5, p.2 (``The unique marks of
                identification of firearms serve several purposes. First, the marks
                are used by Federal firearms licensees to effectively track their
                firearms inventories and maintain all required records. Second, the
                marks enable law enforcement officers to trace specific firearms
                used in crimes from the manufacturer or importer to individual
                purchasers, and to identify particular firearms that have been lost
                or stolen. Further, marks help prove in certain criminal
                prosecutions that firearms used in a crime have travelled in
                interstate or foreign commerce.'').
                 \23\ See 18 U.S.C. 923(g)(1)(D); 27 CFR 478.125(f) (disposition
                records of a Federal firearms licensee's personal collection
                firearms must contain a complete description of the firearm); House
                Consideration and Passage of S.2414, 99th Cong., 2d Sess., 132 Cong.
                Rec. 15229 (June 24, 1986) (Statement of Rep. Hughes) (``In order
                for the law enforcement Firearm Tracing Program to operate, some
                minimal level of recordkeeping is required [for sales from dealers'
                personal collections]. Otherwise, we will not have tracing
                capability. This provision simply requires that a bound volume be
                maintained by the dealer of the sales of firearms which would
                include a complete description of the firearm, including its
                manufacturer, model number, and its serial number and the verified
                name, address, and date of birth of the purchaser. There is only a
                minimal inconvenience for the dealer, yet obtaining and recording
                this information is critical to avoid serious damage to the Firearm
                Tracing Program.'').
                ---------------------------------------------------------------------------
                 ATF traces firearms found by law enforcement at a crime scene by
                first contacting the licensed manufacturer or importer marked on the
                frame or receiver who maintains permanent records of their manufacture
                or importation and disposition. Using the information obtained from
                those required records, ATF then contacts each licensed dealer or other
                licensee who recorded their receipt and disposition to locate the first
                unlicensed purchaser to help find the perpetrator or otherwise solve
                the crime.\24\ However, because PMFs do not bear a serial number or
                other markings of a licensed manufacturer or importer, ATF has found it
                extremely difficult to complete such traces on behalf of law
                enforcement to individual unlicensed purchasers. From January 1, 2016,
                through March 4, 2021, ATF could only complete traces of suspected PMFs
                recovered by law enforcement to an individual purchaser in
                approximately 151 out of 23,946 attempts, generally by tracing a serial
                number engraved on a handgun slide, barrel, or other firearm part not
                currently defined as a frame or receiver, but recorded by licensees in
                the absence of other markings.\25\
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                 \24\ Licensees must respond to ATF trace requests within 24
                hours. 18 U.S.C. 923(g)(7); see also J&G Sales Ltd. v. Truscott, 473
                F.3d 1043, 1045-46 (9th Cir. 2007) (describing the tracing process).
                 \25\ Source: ATF Office of Strategic Intelligence and
                Information. These figures were extracted on May 5, 2021, and
                include traces for both U.S. and international law enforcement
                agencies.
                ---------------------------------------------------------------------------
                 With the proliferation of PMFs, ATF has also received numerous
                requests from licensees seeking clarity on how they may be accepted and
                recorded so that they can track their inventories, process warranty
                claims, reconcile any missing inventory, respond to trace requests, and
                report lost or stolen PMFs to police and insurance companies. Federal
                law and regulations require licensees, before conducting business, to
                inventory the firearms possessed for such business and record it in a
                Firearms Acquisition and Disposition Record (``A&D Record'').\26\ After
                commencing business, licensees must record all firearms received and
                disposed of by the business in the A&D Record to include the following
                information separated into columns: Manufacturer and/or importer,
                model, serial no., type, and caliber or gauge.\27\ When a firearm is
                disposed to an unlicensed person, licensees are required to complete a
                Firearms Transaction Record, ATF Form 4473 (``Form 4473'').\28\ Like
                the A&D Record, this form requires licensees to record the manufacturer
                and importer, model (if designated), serial number, type, and caliber
                or gauge of the firearm. Licensees are also required by law to report
                the theft or loss of firearms on a Federal Firearms Licensee Theft/Loss
                Report, ATF Form 3310.11, which includes a description of the
                manufacturer, importer, model, serial number, type, and caliber/gauge
                of each firearm stolen or lost.\29\ And when licensees sell or
                otherwise dispose of multiple pistols or revolvers within five
                consecutive business days to the same person, they must report to ATF
                the type, serial number, manufacturer, model, importer, and caliber on
                a Report of Multiple Sale or Other Disposition of Pistols and
                Revolvers, ATF Form 3310.4.\30\
                ---------------------------------------------------------------------------
                 \26\ 27 CFR 478.125(e).
                 \27\ 18 U.S.C. 923(g)(1)(A); 27 CFR 478.125(e), (f).
                 \28\ 18 U.S.C. 923(g)(1)(A); 27 CFR 478.124.
                 \29\ 18 U.S.C. 923(g)(6); 27 CFR 478.39a(b).
                 \30\ 18 U.S.C. 923(g)(3)(A); 27 CFR 478.126a. Pursuant to 18
                U.S.C. 923(g)(5)(A), licensed dealers along the Southwest border are
                also required by demand letter to report to ATF multiple sales of
                certain rifles during five consecutive business days to the same
                person on ATF Form 3310.12, including the rifle's serial number,
                manufacturer, importer, model, and caliber. Also under that statute,
                licensed dealers with 15 or more trace requests with a ``time-to-
                crime'' of three years or less must report to ATF the acquisition
                date, model, caliber or gauge, and the serial number of a secondhand
                firearm transferred by the dealer.
                ---------------------------------------------------------------------------
                 However, because PMFs do not have markings identifying the name of
                a licensed manufacturer or importer, model, serial number, or caliber/
                gauge, licensees might only record a ``type'' of firearm (e.g., pistol,
                revolver, rifle, or shotgun) in their A&D Records and on ATF Forms
                4473. Over time, as more PMFs are accepted into inventory, it will
                become increasingly difficult, if not impossible, for licensees and ATF
                (during inspections) to distinguish between those PMFs physically in
                the firearms inventory and those recorded in required A&D Records, as
                well as determine which PMFs recorded as disposed on ATF Form 4473,
                were those recorded as disposed in the A&D Record.\31\ Likewise, it
                will be difficult for licensees and ATF to accurately determine which
                PMFs were stolen or lost from inventory, and for police to locate
                stolen PMFs in the business inventories of pawnbrokers,\32\ or to
                return any recovered stolen or lost PMFs to their rightful owners.
                ---------------------------------------------------------------------------
                 \31\ In United States v. Biswell, 406 U.S. 311, 315-16 (1972),
                the Supreme Court explained that ``close scrutiny of [firearms]
                traffic is undeniably of central importance to federal efforts to
                prevent violent crime and to assist the States in regulating the
                firearms traffic within their borders. Large interests are at stake,
                and inspection is a crucial part of the regulatory scheme, since it
                assures that weapons are distributed through regular channels and in
                a traceable manner and makes possible the prevention of sales to
                undesirable customers and the detection of the origin of particular
                firearms.'' (citation omitted).
                 \32\ Most states require pawnbrokers to record or report any
                serial number and other identifying markings on pawned merchandise
                so that police can determine their origin. See Ala. Code section 5-
                19A-3(1); Alaska Stat. section 08.76.180(a)(4); Ariz. Rev. Stat.
                section 44-1625(C)(5); Colo. Rev. Stat. section 29-11.9-103(1);
                Conn. Gen. Stat. section 21-41(c); Del. Code tit. 24, section
                2302(a)(1)(b); DC Code section 47-2884.11(d); Fla. Stat. section
                538.04(1)(b)(3),(9); Ga. Code section 44-12-132(4); Haw. Rev. Stat.
                section 445-134.11(c)(10); 205 Ill. Comp. Stat. section 510/5(a);
                Ind. Code section 28-7-5-19(a)(4); Ky. Rev. Stat. Ann. section
                226.040(1)(d)(7); La. Stat. Ann. section 37:1782(16)(a); Mass. Gen.
                Laws ch. 140 section 79; Mich. Comp. Laws section 446.205(5)(1),(4);
                Minn. Stat. section 325J.04(Sub.1)(1); Miss. Code Ann. section 75-
                67-305(1)(a)(iii),(ix); Mo. Rev. Stat. section 367.040(6)(b); Neb.
                Rev. Stat. section 69-204(3); N.M. Stat. section 56-12-9(A)(3); N.C.
                Gen. Stat. section 66-391(b)(1); Ohio Rev. Code section 4727.07;
                Okla. Stat. tit. 59 section 1509(D)(h); S.C. Code Ann. section 40-
                39-80(B)(1)(l)(iii),(ix); Tenn. Code Ann. section 45-6-
                209(b)(1)(C),(H); Tex. Fin. Code section 371.157(4); Utah Code
                section 13-32a-104(1)(h)(i)(A); Va. Code Ann. section 54.1-
                4009(A)(1); Wash. Rev. Code section 19.60.020(1)(e); W. Va. Code
                section 47-26-2(b)(1); Wis. Stat. section 134.71(8)(c)(2).
                ---------------------------------------------------------------------------
                 Not only does the inability to distinguish between unmarked
                firearms
                [[Page 27725]]
                make it extremely difficult for law enforcement to trace PMFs involved
                in crime, it also makes it more difficult for Federal, State, and local
                law enforcement to identify and prosecute illegal firearms traffickers
                who are often tied to violent criminals and armed narcotics
                traffickers.\33\ The ATF Form 4473 is the primary evidence used to
                prosecute straw purchasers who buy firearms from a Federal firearms
                licensee on behalf of prohibited persons, such as felons, and other
                persons who could use them to commit a violent crime. The form is
                typically the key evidence that the straw purchaser who bought the
                firearm (and who can pass a background check) made a false statement to
                the Federal firearms licensee concerning the identity of the actual
                purchaser when acquiring that firearm, in violation of 18 U.S.C.
                922(a)(6) and 924(a)(1)(A), or State law.\34\ But as unmarked and
                difficult-to-trace PMFs proliferate throughout the marketplace, it is
                likely to become increasingly difficult to prove that firearms acquired
                under false pretenses on a Form 4473 were the ones found in the hands
                of the true purchaser--and thus more difficult to prosecute straw
                purchasers for making false statements.\35\ This assumes, of course,
                that the PMF involved in the crime could even be traced to the Federal
                firearms licensee, or that the correct Form 4473 could be located.
                Likewise, the absence of identifying firearm information on multiple
                sales forms and theft/loss reports makes it more difficult for ATF to
                identify firearms traffickers and thieves.\36\
                ---------------------------------------------------------------------------
                 \33\ See United States v. Marzzarella, 614 F.3d 85, 100 (3rd
                Cir. 2010) (``The direct tracing of the chain of custody of firearms
                involved in crimes is one useful means by which serial numbers
                assist law enforcement. But serial number tracing also provides
                agencies with vital criminology statistics--including a detailed
                picture of the geographical source areas for firearms trafficking
                and ``time-to-crime'' statistics which measure the time between a
                firearm's initial retail sale and its recovery in a crime--as well
                as allowing for the identification of individual dealers involved in
                the trafficking of firearms and the matching of ballistics data with
                recovered firearms.''); Following the Gun, Enforcing Federal Laws
                Against Firearms Traffickers, ATF Publication, pp.1, 26 (June 2000)
                (serial number obliteration is a clear indicator of firearms
                trafficking to, among other criminals, armed narcotics traffickers).
                 \34\ See, e.g., Abramski v. United States, 573 U.S. 169 (2014);
                Marshall v. Commonwealth, 822 S.E.2d 389 (Va. App. 2019);
                Commonwealth v. Baxter, 956 A.2d 465 (Pa. Super 2008).
                 \35\ See, e.g., United States v. Powell, 467 F. Supp. 3d 360,
                368, 374 (E.D. Va. 2020) (indictment charging false statements on
                ATF Form 4473 in connection with the purchase of specific handguns
                listed by date of purchase, make, caliber, model, serial number, and
                name of FFL); United States v. McCurdy, 634 F. Supp. 2d 118 (D. Me
                2009) (denial of a motion for a new trial discussing whether the
                firearm sold as documented on the ATF Form 4473 and the firearm
                introduced at trial were the same).
                 \36\ The lack of firearm description information in theft/loss
                reports makes it difficult for ATF to match recovered firearms with
                those reported as lost or stolen, thereby hindering ATF's efforts to
                enforce the numerous provisions of the GCA that prohibit thefts. See
                18 U.S.C. 922(i) (transporting or shipping stolen firearms in
                interstate or foreign commerce); id. at 922(j) (receiving,
                possessing, concealing, storing, bartering, selling, disposing, or
                pledging or accepting as security for a loan any stolen firearm
                which has moved in interstate or foreign commerce); id. at 922(u)
                (stealing a firearm that has been shipped or transported in
                interstate or foreign commerce from the person or premises of an
                FFL); id. at 924(l) (stealing a firearm which is moving in or has
                moved in interstate commerce); and id. at 924(m) (stealing a firearm
                from a licensee).
                ---------------------------------------------------------------------------
                 Although clarifying the definition of ``frame or receiver'' in this
                rule would help the firearms industry and the public understand which
                part of a complete weapon is the regulated ``frame or receiver,'' and
                more commercially manufactured frames or receivers are likely to be
                marked by licensed manufacturers as a result, PMFs are increasingly
                being made or 3D printed at home without any identifying marks,
                recordkeeping, or background checks. In turn, these firearms are
                progressively finding their way to licensees who may wish to acquire
                them so they can advertise and market them broadly, or who may repair,
                customize, or accept them as security in pawn for a loan. Rulemaking is
                therefore necessary to ensure that PMFs are not unlawfully manufactured
                for sale to licensees who may wish to acquire them for resale, or
                accept them as security in pawn for a loan, as this would undermine the
                important public safety goals of the GCA to reduce violent crime, which
                includes assisting State and local law enforcement in their efforts to
                control the traffic of firearms within their borders.\37\ Indeed,
                several States and municipalities have banned or severely restricted
                unserialized or 3D printed firearms.\38\
                ---------------------------------------------------------------------------
                 \37\ See Public Law 90-351, sec. 901(a), 82 Stat. 212, 225-26
                (1968); 18 U.S.C. 922(b)(2) (prohibiting licensees from selling or
                delivering any firearm to any person in a State where the purchase
                or possession by such person of such firearm would be in violation
                of any State law or published ordinance applicable at the place of
                sale, delivery, or other disposition); id. at 922(t)(2),(4) (NICS
                background check denied if receipt of firearm by transferee would
                violate State law); id. at 923(d)(1)(F) (requiring license
                applicants to certify compliance with the requirements of State and
                local law applicable to the conduct of business).
                 \38\ See Cal. Pen. Code. section 29180 (prohibiting ownership of
                firearms that do not bear a serial number or other mark of
                identification provided by the State); Conn. Gen. Stat. section 29-
                36a(a) (prohibiting manufacture of firearms without permanently
                affixing serial numbers issued by the State); DC Code section 7-
                2504.08(a) (prohibiting licensees from selling firearms without
                serial numbers); Haw. Rev. Stat. section 134-10.2 (prohibiting
                unlicensed persons from producing 3D printed or parts kit firearms
                without a serial number); Mass. Gen. Laws 269 section 11E
                (prohibiting manufacture or delivery of unserialized firearms to
                licensed dealer); N.J. Stat. Ann. section 2C:39-3(n) (prohibiting
                possession of firearms manufactured or assembled without serial
                number); N.Y. Penal Law sections 265.50, 265.55 (prohibiting
                manufacture/possession of undetectable firearms); R.I. Gen. Laws
                section 11-47-8(e) (prohibiting possession of ``a ghost gun or an
                undetectable firearm or any firearm produced by a 3D printing
                process''); Va. Code. Ann. section 18.2-308.5 (prohibiting
                possession of undetectable firearms); Wash. Rev. Code section
                9.41.190 (prohibiting the manufacture with intent to sell of
                undetectable and untraceable firearms); see also Philadelphia
                Becomes First City To Ban 3D-Printed Gun Manufacturing, Reason.com
                (Nov. 22, 2013), https://reason.com/2013/11/22/philadelphia-becomes-first-city-to-ban-3/; County Council Unanimously Approves Ghost Gun
                Bill, Mocoshow.com (April 6, 2021), https://mocoshow.com/blog/county-council-unanimously-approves-ghost-gun-bill/?fbclid=IwAR1KCyFal3AId31WKCTLanR-uEUj_-dW_T32lND5gfKmle_-nvIbZyT052.
                ---------------------------------------------------------------------------
                II. Proposed Rule
                 Due to judicial developments as well as continued technological
                advancements in firearms manufacturing, maintaining the current
                definitions negatively affects both public safety and the regulated
                firearms industry. For these reasons, the Department proposes amending
                ATF's regulations to clarify the definition of ``firearm'' and to
                provide a more comprehensive definition of ``frame or receiver'' so
                that those definitions more accurately reflect firearm configurations
                not explicitly captured under the existing definitions in 27 CFR 478.11
                and 479.11. Further, this NPRM proposes new terms and definitions to
                take into account technological developments and modern terminology in
                the firearms industry, as well as amendments to the marking and
                recordkeeping requirements that would be necessary to implement these
                definitions. However, nothing in this rule would restrict persons not
                otherwise prohibited from possessing firearms from making their own
                firearms at home without markings solely for personal use (not for sale
                or distribution) in accordance with Federal, State, and local law.
                Also, while licensed manufacturers who sell or distribute firearms to
                law enforcement agencies would be subject to this rule, law enforcement
                agencies (not engaged in the business of manufacturing firearms for
                sale or distribution) would be excluded from this rule, including
                associated amendments to the marking and recordkeeping requirements
                necessary to implement its definitions.
                [[Page 27726]]
                A. Definition of ``Firearm''
                 Under the GCA and implementing regulations, the term ``firearm''
                includes:
                 ``(A) any weapon (including a starter gun) which will or is
                designed to or may readily be converted to expel a projectile by the
                action of an explosive.'' 18 U.S.C. 921(a)(3); 27 CFR 478.11 (emphasis
                added). Although weapon parts kits in their unassembled, incomplete,
                and/or unfinished state or configuration generally will not expel a
                projectile by the action of an explosive at the time of sale or
                distribution, weapon parts kits that are ``designed to'' \39\ or ``may
                readily be converted'' \40\ to expel a projectile by the action of an
                explosive are ``firearms'' under the GCA.\41\
                ---------------------------------------------------------------------------
                 \39\ See H.R. Rep. 90-1577, at 4416 (June 21, 1968) (``This
                provision makes it clear that so-called unserviceable firearms come
                within the definition.''); S. Rep. No. 90-1097, at 2200 (April 29,
                1968) (same). Numerous courts have held that weapons designed to
                expel a projectile by the action of an explosive are ``firearms''
                under 18 U.S.C. 921(a)(3)(A) even if they cannot expel a projectile
                in their present form or configuration. See, e.g., United States v.
                Hardin, 889 F.3d 945, 946 (8th Cir. 2017) (pistol with broken
                trigger and numerous missing internal parts was a weapon designed to
                expel a projectile by the action of an explosive); United States v.
                Dotson, 712 F.3d 369 (7th Cir. 2013) (damaged pistol with corroded,
                missing and broken components); United States v. Rivera, 415 F.3d
                284, 285-87 (2nd Cir. 2005) (pistol with a broken firing pin and
                flattened firing-pin channel); United States. v. Brown, 117 F.3d 353
                (7th Cir. 1997) (no firing pin); United States v. Reed, 114 F.3d
                1053 (10th Cir. 1997) (shotgun with broken breech bolt); United
                States v. Hunter, 101 F.3d 82 (9th Cir. 1996) (pistol with broken
                firing pin); United States v. Yannott, 42 F.3d 999, 1005 (6th Cir.
                1994) (shotgun with broken firing pin); United States v. Ruiz, 986
                F.2d 905, 910 (5th Cir. 1993) (revolver with hammer filed down);
                United States. v. York, 830 F.2d 885, 891 (8th Cir. 1987) (revolver
                with no firing pin and cylinder did not line up with barrel). But
                see United States v. Wada, 323 F. Supp. 2d 1079 (D. Or. 2004)
                (firearms redesigned as ornaments that ``would take a great deal of
                time, expertise, equipment, and materials to attempt to reactivate''
                were no longer designed to expel a projectile by the action of an
                explosive and could not readily be converted to do so).
                 \40\ See, e.g., United States v. Wick, 697 F. App'x 507, 508
                (9th Cir. 2017) (complete UZI parts kits ``could `readily be
                converted to expel a projectile by the action of an explosive,'
                meeting the statute's definition of firearm under section
                921(a)(3)(A)'' because the ``kits contained all of the necessary
                components to assemble a fully functioning firearm with relative
                ease''); United States v. Stewart, 451 F.3d 1071, 1073 n.2 (9th Cir.
                2006) (upholding district court's finding that .50 caliber rifle
                kits with incomplete receivers were ``firearms'' under 921(a)(3)(A)
                because they could easily be converted to expel a projectile);
                United States v. Morales, 280 F. Supp. 2d 262, 272-73 (S.D.N.Y.
                2003) (partially disassembled Tec-9 pistol that could be assembled
                within short period of time could readily be converted to expel a
                projectile).
                 \41\ The plain language of the definition of ``firearm'' in 18
                U.S.C. 921(a)(3)(A) states that a weapon need not function so long
                as it is designed to, or may readily be converted to, expel a
                projectile. Even though they generally cannot function to expel a
                projectile when sold, weapon parts kits are still ``weapons''--real
                combat instruments, such as pistols, revolvers, rifles, or
                shotguns--in an unassembled, unfinished, and/or incomplete state or
                configuration. There is no minimum utility or lethality requirement
                in the GCA or NFA for an item to be considered a ``weapon.'' Cf.
                United States v. Thompson/Center Arms, 504 U.S. 505, 513, n.6 (1992)
                (a rifle was ``made'' under the NFA when a pistol was packaged
                together with a disassembled rifle parts kit); United States v.
                Hunter, 843 F. Supp. 235, 256 (E.D. Mich. 1994) (``If Defendants
                believe that machinegun conversion kits are not in and of themselves
                `weapons' under Sec. 921(a)(3), they forget that that section
                clearly envisions machineguns as weapons.''); United States v.
                Drasen, 845 F.2d 731, 736-37 (7th Cir. 1988) (rejecting argument
                that a collection of rifle parts cannot be a ``weapon'').
                ---------------------------------------------------------------------------
                 In recent years, individuals have been purchasing firearm parts
                kits with incomplete frames or receivers, commonly called ``80%
                receivers,'' \42\ either directly from manufacturers of the kits or
                retailers, without background checks or recordkeeping. Some of these
                parts kits contain most or all of the components (finished or
                unfinished) necessary to complete a functional weapon within a short
                period of time. Some of them include jigs, templates, instructions,
                drill bits, and tools that allow the purchaser to complete the weapon
                to a functional state with minimal effort, expertise, or equipment.
                Weapon parts kits such as these are ``firearms'' under the GCA because
                they are designed to or may readily be converted to expel a projectile
                by the action of an explosive.\43\ Manufacturers of such parts kits
                must be licensed, abide by the marking and recordkeeping requirements,
                and pay Federal Firearms Excise Tax on their sales price.\44\ Any
                Federal firearms licensee that sells such kits to unlicensed
                individuals would need to complete ATF Forms 4473, conduct NICS
                background checks, and abide by the recordkeeping requirements
                applicable to fully completed and assembled firearms.\45\ Therefore, to
                reflect existing case law, this proposed rule would add a sentence at
                the end of the definition of ``firearm'' in 27 CFR 478.11 providing
                that ``[t]he term shall include a weapon parts kit that is designed to
                or may readily be assembled, completed, converted, or restored to expel
                a projectile by the action of an explosive.''
                ---------------------------------------------------------------------------
                 \42\ The term ``80% receiver'' is a term used by some industry
                members, the public, and the media to describe a frame or receiver
                that has not yet reached a stage in manufacture to be classified as
                a ``frame or receiver'' under Federal law. However, that term is
                neither found in Federal law nor accepted by ATF.
                 \43\ See footnotes 39 and 40, supra.
                 \44\ The Internal Revenue Code of 1954, 26 U.S.C. 4181, imposes
                on the manufacturer, producer, or importer an excise tax of 10%
                (pistols and revolver) or 11% (other firearms) on the sales price of
                firearms manufactured, produced, or imported, including complete,
                but unfinished, weapon parts kits. See Rev. Rul. 62-169 (IRS RRU),
                1962-2 C.B. 245 (kits which contain all of the necessary component
                parts for the assembly of shotguns are complete firearms in
                knockdown condition even though, in assembling the shotguns the
                purchaser must `final-shape,' sand, and finish the fore-arm and the
                stock); cf. Rev. Rul. 61-189 (IRS RRU), 1961-2 C.B. 185 (kits
                containing unassembled components and tools to complete artificial
                flies for fisherman were sporting goods subject to excise tax); Hine
                v. United States, 113 F. Supp. 340, 343 (Ct. Cl. 1953) (``True
                enough, [these fishing rod kits] might be called `blanks' by those
                engaged in the trade, but what could they be called or to what
                practical use could they be put other than `fishing rods?' Plaintiff
                says that it would be extremely difficult if not impossible to case
                with a `blank' rod and this is true, but we can conceive of no other
                practical use for them except as fishing rods. . . . Having reached
                the stage of manufacture or development where they became
                recognizable as one of the sporting goods described in Section
                3406(a)(1) the rods upon being sold were subject to tax even though
                there remained one or more finishing operations to be performed.'')
                (citations omitted).
                 \45\ Additionally, persons who engage in the business of selling
                or distributing such weapon parts kits cannot avoid licensing,
                marking, recordkeeping, or excise taxation by selling or shipping
                the parts in more than one box or shipment to the same person, or by
                conspiring with another person to do so. See, e.g., United States v.
                Evans, 928 F.2d 858 (9th Cir. 1991) (conspiracy to cause and aid and
                abet the possession of unregistered machineguns where one defendant
                sold parts kits containing all component parts of Sten machineguns
                except receiver tubes, and the other sold customers blank receiver
                tubes along with detailed instructions on how to complete them);
                Internal Revenue Service Technical Advice Memorandum 8709002, 1986
                WL 372494, at 4 (Nov. 13, 1986) (for purposes of imposing Firearms
                Excise Tax it is irrelevant whether the components of a revolver in
                an unassembled knockdown condition are sold separately to the same
                purchaser in various related transactions, rather than sold as a
                complete kit in a single transaction).
                ---------------------------------------------------------------------------
                 Nonetheless, this amendment is not intended to affect the
                classification of a weapon, including a weapon parts kit, in which each
                frame or receiver (as defined in this proposed rule) of such weapon is
                properly destroyed in accordance with ATF standards. Because such
                weapons have been completely destroyed or permanently redesigned not to
                expel a projectile by the action of an explosive, and cannot readily be
                converted to do so, ATF would not consider them as either ``designed
                to'' or ``readily assembled, completed, converted, or restored to expel
                a projectile by the action of an explosive.'' To make this clear, this
                proposed rule would add another sentence to the end of the definition
                of ``firearm'' in 27 CFR 478.11 to provide that ``[t]he term shall not
                include a weapon, including a weapon parts kit, in which each part
                defined as a frame or receiver of such weapon is destroyed.'' (see
                Section II.B.5 of the preamble)
                B. Definition of ``Frame or Receiver''
                 The proposed new regulatory definition of ``frame or receiver''
                would be a multi-part definition added to 27
                [[Page 27727]]
                CFR 478.11 and 479.11 (referencing section 478.11). First, there would
                be a general definition of ``frame or receiver'' with non-exclusive
                examples that illustrate the definition. This would be followed by
                supplements that further explain the meaning of the term ``frame or
                receiver'' for certain firearm designs and configurations, as follows:
                (a) Firearm muffler or silencer frame or receiver; (b) split or modular
                frame or receiver, also followed by examples of the frames or receivers
                for common firearm designs that are distinguishable because of
                differences in firing cycle, method of operation, or physical design
                characteristics; (c) partially complete, disassembled, or inoperable
                frame or receiver; and (d) destroyed frame or receiver. Although the
                new definition would more broadly define the term ``frame or receiver''
                than the current definition, it is not intended to alter any prior
                determinations by ATF of what it considers the frame or receiver of a
                particular split/modular weapon. ATF would also continue to consider
                the same factors when classifying firearms (see Section I.A of the
                preamble).
                1. General Definition of ``Frame or Receiver''
                 ATF proposes to replace the respective regulatory definitions of
                ``firearm frame or receiver'' and ``frame or receiver'' in 27 CFR
                478.11 and 479.11 because they too narrowly limit the definition of
                receiver with respect to most current firearms and have led to
                erroneous district court decisions. Indeed, most firearms currently in
                circulation in the United States do not have a specific part that
                expressly falls within the current ``frame or receiver'' regulatory
                definitions. Most concerning is that the interpretation of these
                definitions by some courts, relying on the current regulations, would
                make it easier to obtain the majority of existing firearms, including
                some of the most advanced semiautomatic weapons, without complying with
                the requirements of the GCA, and make it far more difficult to trace
                those firearms after a crime. Should the current definition remain in
                place and courts continue to interpret it such that no part or parts of
                most firearms are defined as the frame or receiver, these unserialized
                parts, easily purchased and assembled to create functioning firearms,
                would be untraceable, thereby putting the public at risk. While a
                ``frame or receiver'' is clearly within the statutory definition of
                what constitutes a ``firearm'' under the GCA, 18 U.S.C. 921(a)(3)(B),
                clarifying that this term includes how most modern-day firearms operate
                would help ensure that the regulatory definition of ``frame or
                receiver'' will not be misinterpreted by the courts, the firearms
                industry, or the public at large to mean that most firearms in
                circulation have no part identifiable as a frame or receiver.
                 As a threshold matter, the new definition makes clear that a
                ``frame or receiver'' must be visible to the exterior when the complete
                weapon is assembled so that licensees can quickly record the
                identifying markings, and law enforcement officers who recover the
                weapon can easily see the identifying markings for tracing purposes.
                Nonetheless, as explained in Section II.B.3 of the preamble, an
                internal frame or chassis at least partially exposed to the exterior to
                allow identification may be determined by ATF to be the frame or
                receiver of a split or modular frame or receiver.
                 Next, the new definition more broadly describes a ``frame or
                receiver'' as one that provides housing or a structure designed to hold
                or integrate any fire control component. Unlike the prior definitions
                of ``frame or receiver'' that were rigidly tied to three specific fire
                control components (i.e., those necessary for the firearm to initiate
                or complete the firing sequence), the new regulatory definition is
                intended to be general enough to encompass changes in technology and
                parts terminology. With respect to the fire control components housed
                by the frame or receiver, the definition would include, at a minimum,
                any housing or holding structure for a hammer, bolt, bolt carrier,
                breechblock, cylinder, trigger mechanism, firing pin, striker, or slide
                rails. However, the definition is not limited to those particular fire
                control components.\46\ There may be future changes in firearms
                technology or terminology resulting in housings or holding structures
                for new or different components that initiate, complete, or continue
                the firing sequence of weapons that expel a projectile by the action of
                an explosive. For further clarity, the definition would then give four
                nonexclusive examples with illustrations of common single-framed
                firearms: (1) Hinged or single frame revolver (structure to hold the
                trigger, hammer, and cylinder); (2) bolt-action rifle (structure to
                hold the bolt and firing pin, and attach the trigger mechanism); (3)
                break action, lever action, or pump action rifle or shotgun (housing
                for the bolt and firing pin, or a structure designed to integrate the
                breechblock); and (4) semiautomatic firearm or machinegun with a single
                receiver housing all fire control components (housing for the hammer,
                bolt, trigger mechanism, and firing pin, e.g., AK-type firearms).
                ---------------------------------------------------------------------------
                 \46\ The prefatory paragraph to the definitional sections in the
                GCA and NFA regulations explain that ``[t]he terms `includes' and
                `including' do not exclude other things not enumerated which are in
                the same general class or are otherwise within the scope thereof.''
                27 CFR 478.11, 479.11.
                ---------------------------------------------------------------------------
                 Finally, the definition would make clear to persons who may acquire
                or possess a part now defined as a ``frame or receiver'' that is
                identified with a serial number that they must presume, absent an
                official determination by ATF or other reliable evidence to the
                contrary, that the part is a firearm ``frame or receiver'' without
                further guidance.
                2. Firearm Muffler or Silencer Frame or Receiver
                 Under the GCA, licensed manufacturers and importers must identify
                the frame or receiver of each firearm, including a firearm muffler or
                silencer, with a serial number in accordance with regulations. 18
                U.S.C. 921(a)(3)(C), 923(i). The NFA requires firearm manufacturers,
                importers, and makers to identify each firearm, including a firearm
                muffler or silencer, with a serial number and such other identification
                as may be prescribed by regulations. 26 U.S.C. 5842(a); id. at
                5845(a)(7). Because under the NFA each individual part of a firearm
                muffler or silencer is a ``firearm'' \47\ that must be registered in
                the National Firearms Registration and Transfer Record (``NFRTR''), the
                regulations currently assume that every part defined as a silencer must
                be marked in order to be registered, and expressly require that they be
                marked whenever sold, shipped, or otherwise disposed even though they
                may be installed by a qualified licensee within a complete muffler or
                silencer device.\48\
                ---------------------------------------------------------------------------
                 \47\ A firearm ``muffler or silencer'' is defined to include
                ``any combination of parts'' designed and intended for the use in
                assembling or fabricating a firearm silencer or muffler and ``any
                part intended only for use in such assembly or fabrication.'' 18
                U.S.C. 921(a)(24); 26 U.S.C. 5845(a)(7); 27 CFR 478.11; id. at
                479.11. This rule defines the term ``complete muffler or silencer
                device'' not to say that individual silencer parts are not
                considered a firearm ``muffler or silencer'' subject to the
                requirements of the NFA, but to advise industry members when those
                individual silencer parts must be marked and registered in the NFRTR
                when they are used in assembling or fabricating a muffler or
                silencer device.
                 \48\ See 27 CFR 479.101(b); 478.92(a)(4)(iii); 479.102(f)(1).
                ---------------------------------------------------------------------------
                 However, this result has caused confusion and concern among many
                silencer manufacturers because some silencer parts defined as
                ``silencers,'' such as baffles, are difficult to mark, and make little
                sense to mark for tracing purposes when the outer tube or
                [[Page 27728]]
                housing of the complete device is marked and registered. Not only is it
                difficult for manufacturers to apply identifying markings, there is
                also the administrative difficulty in timely filing and processing
                numerous ATF Forms 2, Notice of Firearms Manufactured or Imported upon
                manufacture of each part, and ATF Forms 3, Application for Tax-Exempt
                Transfer of Firearm and Registration to Special Occupational Taxpayer
                upon sale or other disposition of each part to another qualified
                licensee.
                 For these reasons, ATF is proposing a number of amendments to
                clarify how and when firearm muffler or silencer parts must be marked
                and registered in the NFRTR. Among other changes (see Section II.H.9 of
                the preamble, below), this rule defines the term ``frame or receiver''
                as it applies to a ``firearm muffler or silencer frame or receiver''
                and adds the term ``complete muffler or silencer device'' (see Section
                II.D of the preamble). Under the NPRM, the term ``frame or receiver''
                means, ``in the case of a firearm muffler or firearm silencer, a part
                of the firearm that, when the complete device is assembled, is visible
                from the exterior and provides housing or a structure, such as an outer
                tube or modular piece, designed to hold or integrate one or more
                essential internal components of the device, including any of the
                following: baffles, baffling material, or expansion chamber.'' These
                new definitions would clarify for manufacturers and makers of complete
                muffler or silencer devices that they need only mark each part (or
                specific part(s) previously determined by the Director) of the device
                defined as a ``frame or receiver'' under this rule. However, individual
                muffler or silencer parts must be marked if they are disposed of
                separately from a complete device unless transferred by qualified
                manufacturers to other qualified licensees for the manufacture or
                repair of complete devices (see Section II.H.9 of the preamble).\49\
                ---------------------------------------------------------------------------
                 \49\ This rule is consistent with ATF enforcement policy. See
                footnote 72 infra.
                ---------------------------------------------------------------------------
                 ATF anticipates that, under this supplemental definition, the outer
                tube of a complete muffler or silencer device would be considered the
                frame or receiver with respect to most commercial silencer designs
                currently on the market. This is because the outer tube would be the
                only housing for essential internal components (e.g., baffles or
                baffling material) of the complete device. Marking the outer tube, as
                distinguished from a smaller non-housing component like an end cap that
                can be damaged upon expulsion of projectiles, best preserves the
                ability of law enforcement to trace the silencer device if used in
                crime, and is consistent with recommendations ATF has received from the
                firearms industry.\50\
                ---------------------------------------------------------------------------
                 \50\ In 2016, ATF issued an Advance Notice of Proposed
                Rulemaking in response to a petition for rulemaking from a firearms
                industry trade association recommending that regulations be amended
                to require that a silencer be marked on the outer tube (as opposed
                to other locations), unless a variance is granted by the Director on
                a case-by-case basis for good cause. See 81 FR 26764 (May 4, 2016).
                ---------------------------------------------------------------------------
                 Nonetheless, like the definition of ``frame or receiver'' for
                projectile weapons, this sub-definition would be flexible enough to
                encompass changes in technology and parts terminology. This is because
                any housing or structure designed to hold or integrate an essential
                internal component of the muffler or silencer device would meet the
                definition. While the proposed definition gives examples of internal
                components that manufacturers must consider as essential, e.g.,
                baffles, baffling material, or expansion chamber, it is not limited to
                those particular components.\51\
                ---------------------------------------------------------------------------
                 \51\ See footnote 46, supra.
                ---------------------------------------------------------------------------
                3. Split or Modular Frame or Receiver
                 This second supplement explains that ATF may determine ``in the
                case of a firearm with more than one part that provides housing or a
                structure designed to hold or integrate one or more fire control or
                essential components'' whether one or more specific part(s) of a weapon
                is the frame or receiver, which may include an internal frame or
                chassis at least partially exposed to the exterior to allow
                identification. It then sets forth the factors ATF considers in making
                this determination: ``(a) Which component the manufacturer intended to
                be the frame or receiver; (b) which component the firearms industry
                commonly considers to be the frame or receiver with respect to the same
                or similar firearms; (c) how the component fits within the overall
                design of the firearm when assembled; (d) the design and function of
                the fire control components to be housed or integrated; (e) whether the
                component may permanently, conspicuously, and legibly be identified
                with a serial number and other markings in a manner not susceptible of
                being readily obliterated, altered, or removed; (f) whether classifying
                the particular component is consistent with the legislative intent of
                the Act and this part; and (g) whether classifying the component as the
                frame or receiver is consistent with the Director's prior
                classifications.'' No single factor is controlling. It would further
                make clear that ``[f]rames or receivers of different weapons that are
                combined to create a similar weapon each retain their respective
                classifications as frames or receivers provided they retain their
                original design and configuration.''
                 This supplement to the general definition addresses one of the core
                problems of the current definition of ``firearm frame or receiver;''
                namely, that a majority of firearms now use a split or modular design
                in which more than one part houses a different fire control component
                and/or incorporates a striker instead of a hammer. It would make clear
                that even though a firearm, including a silencer, may have more than
                one part that falls within the definition of ``frame or receiver,'' ATF
                may classify a specific part or parts to be the ``frame or receiver''
                of a particular weapon. For this reason, manufacturers may wish to
                submit samples to ATF for classification of one or more particular
                components as the frame or receiver so that they need only mark a
                specific part or parts of a weapon, rather than all qualifying parts
                (see Section II.H.10 of the preamble) or obtain a marking variance (see
                Section II.H.6 of the preamble). However, this supplemental definition
                would also make clear that ATF would not classify an internal frame or
                chassis as a ``frame or receiver'' unless it is at least partially
                exposed to the exterior to allow identification so that licensees
                accepting them into inventory can quickly record the identifying
                markings, and law enforcement officers who recover the weapon can
                easily see the identifying markings for tracing purposes.\52\
                ---------------------------------------------------------------------------
                 \52\ Markings must also be clearly visible from the exterior
                because they may be needed to prove that a criminal defendant had
                knowledge that the serial number was obliterated or altered. See,
                e.g., Lewis v. United States, No. 3:12-0522, 2012 WL 5198090, at *4
                (M.D. Tenn. Oct. 19, 2012) (serial number obliterated on the
                ``visible exterior'' of a revolver); State v. Shirley, No. 107449,
                2019 WL 2156402 (Ct. App. Ohio May 16, 2019) (same); cf. United
                States v. Sands, 948 F.3d 709, 719 (6th Cir. 2020) (serial number is
                not altered or obliterated so long as it is ``visible to the naked
                eye''); United States v. St. Hilaire, 960 F.3d 61, 66 (2d Cir. 2020)
                (``This `naked eye test' best comports with the ordinary meaning of
                `altered'; it is readily applied in the field and in the courtroom;
                it facilitates identification of a particular weapon; it makes more
                efficient the larger project of removing stolen guns from
                circulation; it operates against mutilation that impedes
                identification as well as mutilation that frustrates it; and it
                discourages the use of untraceable weapons without penalizing
                accidental damage or half-hearted efforts.'').
                ---------------------------------------------------------------------------
                 One important goal of this rule is to ensure that it does not
                affect existing ATF classifications of firearms that specify a single
                component as the frame or receiver. Application of the rule, as
                proposed, would not alter these prior
                [[Page 27729]]
                ATF classifications. To provide more clarity, this supplement to the
                definition would include a nonexclusive list of common weapons with a
                split/multi-piece frame or receiver configuration for which ATF has
                previously determined a specific part to be the frame or receiver. If a
                manufacturer produces or an importer imports a firearm falling within
                one of these designs as they exist as of the date of publication of a
                final rule, it can refer to this list to know which part is the frame
                or receiver. The manufacturer or importer can then mark without needing
                to ask ATF for a classification. The nonexclusive list identifies the
                frame or receiver for the following firearms: (i) Colt 1911-type,
                Beretta/Browning/FN Herstal/Heckler & Koch/Ruger/Sig Sauer/Smith &
                Wesson/Taurus hammer fired semiautomatic pistols; (ii) Glock-type
                striker fired semiautomatic pistols; (iii) Sig Sauer P320-type
                semiautomatic pistols; (iv) certain locking block rail system
                semiautomatic pistols; (v) AR-15-type and Beretta AR-70-type firearms;
                (vi) Steyr AUG-type firearms; (vii) Thompson M1A1-type machineguns and
                semiautomatic variants, and L1A1, FN FAL, FN FNC, MP 38, MP 40, and SIG
                550 type firearms, and HK-type machineguns and semiautomatic variants;
                (viii) Vickers/Maxim, Browning 1919, and M2-type machineguns, and box-
                type machineguns and semiautomatic variants thereof; and (ix) Sten,
                Sterling, and Kel-tec Sub-2000-type firearms. However, if there is a
                present or future split or modular design for a firearm that is not
                comparable to an existing classification, then the definition of
                ``frame or receiver'' would advise that more than one part is the frame
                or receiver subject to marking and other requirements, unless a
                specific classification or marking variance is obtained from ATF, as
                described above.
                4. Partially Complete, Disassembled, or Inoperable Frame or Receiver
                 This third supplement would define ``frame or receiver'' to include
                ``in the case of a frame or receiver that is partially complete,
                disassembled, or inoperable, a frame or receiver that has reached a
                stage in manufacture where it may readily be completed, assembled,
                converted, or restored to a functional state.'' To determine this
                status, ``the Director may consider any available instructions, guides,
                templates, jigs, equipment, tools, or marketing materials.'' For
                clarification, ``partially complete'' for purposes of this definition
                ``means a forging, casting, printing, extrusion, machined body, or
                similar article that has reached a stage in manufacture where it is
                clearly identifiable as an unfinished component part of a weapon.''
                 This supplement addresses another core challenge of the existing,
                definition of firearm ``frame or receiver;'' namely, that it does not
                address the question when an object becomes a frame or receiver. While
                the GCA and implementing regulations define a ``firearm'' to include
                the ``frame or receiver,'' neither delineates when a frame or receiver
                is created. The crucial inquiry, then, is the point at which an
                unregulated piece of metal, plastic, or other material becomes a
                regulated item under Federal law. ATF has long held that a piece of
                metal, plastic, or other material becomes a frame or receiver when it
                has reached a critical stage of manufacture. This is the point at which
                a substantial step has been taken, or a critical line crossed, so that
                the item in question may be so classified under the law. This
                ``critical stage of manufacture'' is when the article becomes
                sufficiently complete to function as a frame or receiver, or may
                readily be completed, assembled, converted, or restored to accept the
                parts it is intended to house or hold.\53\
                ---------------------------------------------------------------------------
                 \53\ ATF Letter to Private Counsel #907010 (Mar. 20, 2015).
                ---------------------------------------------------------------------------
                 Clarifying this issue is needed to deter the increased sale or
                distribution of unlicensed and unregulated partially complete or
                unassembled frames or receivers often sold within parts kits that can
                readily be completed or assembled to a functional state.\54\ Many kits
                that include unfinished frame or receivers have been sold by
                nonlicensees who were not required to run a background check or
                maintain transaction records. Accordingly, prohibited persons have
                easily obtained them.\55\ Moreover, without any markings, they are
                nearly impossible to trace. Although this addition is intended to
                capture when an item becomes a frame or receiver that is regulated
                irrespective of the type of technology used to complete the assembly,
                frame or receiver molds that can accept metal or polymer, unformed
                blocks of metal, and other articles only in a primordial state would
                not--without more--be considered a ``partially complete'' frame or
                receiver. However, when a frame or receiver is broken or has been
                disassembled into pieces that can readily be made into a frame or
                receiver, or is a partially complete frame or receiver forging,
                casting, or additive printing \56\ that has reached a stage in
                manufacture where it can readily be made into a functional frame or
                receiver, that article would be a ``frame or receiver'' under the GCA.
                ---------------------------------------------------------------------------
                 \54\ The Polymer 80 assembly, for example, may be completed in
                under thirty minutes. See, e.g., Silverback Reviews, Polymer 80
                Lower Completion/Parts Kit Install, YouTube (Aug. 19, 2019), https://www.youtube.com/watch?v=ThzFOIYZgIg (21-minute video of completion
                of a Polymer 80 lower parts kit with no slide). Indeed, the internet
                is replete with people with no experience completing these firearms.
                See HandleBandle, DIY: How to Build a Gun at Home (That Shoots) Part
                1, YouTube (Oct. 7, 2018), https://www.youtube.com/watch?v=nO-8Pns9aq4; HandleBandle, Polymer 80 with No Experience Tips (Build
                Part 2), YouTube (Oct. 7, 2018), https://www.youtube.com/watch?v=a0JM5v45vsg;HandleBandle, Legally Building a Gun in My
                Living Room (5D Tactical Glock Kit), YouTube (Oct. 18, 2018),
                https://www.youtube.com/watch?v=5SaNLrhnnuA.
                 \55\ See Bridgeport Felon Sentenced to More Than 5 Years in
                Federal Prison for Possessing Firearms, Justice.gov (Jan. 7, 2021),
                https://www.justice.gov/usao-ct/pr/bridgeport-felon-sentenced-more-5-years-federal-prison-possessing-firearms; Winthrop man had
                homemade `ghost' guns and 3,000 rounds of ammunition, prosecutors
                say, Boston.com (Aug. 5, 2020), https://www.boston.com/news/crime/2020/08/05/winthrop-man-had-homemade-ghost-guns-prosecutors-say;
                `Ghost Gun' used in shooting that killed two outside Snyder County
                restaurant, Penn Live (Jul. 14, 2020), https://www.pennlive.com/crime/2020/07/ghost-gun-used-in-shooting-that-killed-two-outside-snyder-county-restaurant.html; The gunman in the Saugus High School
                shooting used a `ghost gun,' sheriff says, CNN (Nov. 21, 2019),
                https://www.cnn.com/2019/11/21/us/saugus-shooting-ghost-gun/index.html; How the felon killed at Walmart got his handgun, DA
                says, LehighValleyLive.com (March 28, 2018), https://www.lehighvalleylive.com/news/2018/05/how_the_felon_killed_at_walmar.html; `Ghost guns': Loophole allows
                felons to legally buy gun parts online, KIRO7.com, https://www.kiro7.com/news/local/ghost-guns-federal-loophole-allows-felons-to-legally-buy-gun-parts-online-build-assault-weapons/703695149/.
                 \56\ ATF does not believe the production of 3D printed frames or
                receivers is substantial at this time when compared with
                commercially produced firearms. For the most part, individuals
                currently make PMFs from parts kits produced commercially, not by
                using 3D printers. However, the cost, capabilities, and availability
                of 3D printers are quickly improving.
                ---------------------------------------------------------------------------
                5. Destroyed Frame or Receiver
                 This fourth supplement would exclude from the definition of ``frame
                or receiver'' any frame or receiver that is destroyed. The supplement
                describes what it means to be a ``destroyed'' frame or receiver: One
                permanently altered not to provide housing or a structure that may hold
                or integrate any fire control or essential internal component, and that
                may not readily be assembled, completed, converted, or restored to a
                functional state. This new definition then would set forth nonexclusive
                acceptable methods of destruction, which have been provided by ATF in
                past guidance.\57\
                ---------------------------------------------------------------------------
                 \57\ See How to Properly Destroy Firearms, ATF.gov, https://www.atf.gov/firearms/how-properly-destroy-firearms; ATF Rul. 2003-1
                (destruction of Browning M1919 type receivers); ATF Rul.2003-2 (FN
                FAL type receivers); ATF Rul. 2003-3 (H&K G3 type receivers); ATF
                Rul. 2003-4 (Sten type receivers).
                ---------------------------------------------------------------------------
                [[Page 27730]]
                C. Definition of ``Readily''
                 To provide guidance on how the term ``readily'' is used to classify
                firearms, including frame or receiver parts kits or weapon parts kits
                sold with incomplete or unassembled frames or receivers, the NPRM adds
                this term to 27 CFR 478.11 and 479.11 and defined as ``a process that
                is fairly or reasonably efficient, quick, and easy, but not necessarily
                the most efficient, speedy, or easy process.'' It would further list
                factors relevant in making this determining to include: (a) Time, i.e.,
                how long it takes to finish the process; (b) ease, i.e., how difficult
                it is to do so; (c) expertise, i.e., what knowledge and skills are
                required; (d) equipment, i.e., what tools are required; (e)
                availability, i.e., whether additional parts are required, and how
                easily they can be obtained; (f) expense, i.e., how much it costs; (g)
                scope, i.e., the extent to which the subject of the process must be
                changed to finish it; and (h) feasibility, i.e., whether the process
                would damage or destroy the subject of the process, or cause it to
                malfunction. This definition and factors considered in determining
                whether a weapon, including a weapon parts kit, or unfinished or
                damaged frame or receiver may readily be assembled, completed,
                converted, or restored to function are based on case law interpreting
                the terms ``may readily be converted to expel a projectile'' in 18
                U.S.C. 921(a)(3)(A) and ``can be readily restored to shoot'' in 26
                U.S.C. 5845(b).\58\ Thus, defining the term ``readily'' is necessary to
                provide further clarity in determining when incomplete weapons or
                configurations of parts become a ``firearm'' regulated under the GCA
                and NFA.
                ---------------------------------------------------------------------------
                 \58\ See United States v. Dodson, 519 F. App'x 344, 352-53 (6th
                Cir. 2013) (gun that was restored with 90 minutes of work, using
                widely available parts and equipment and common welding techniques,
                fit comfortably within the readily restorable standard); United
                States v. TRW Rifle 7.62x51mm Caliber, 447 F.3d 686, 692 (9th Cir.
                2006) (a two-hour restoration process using ordinary tools,
                including a stick weld, is within the ordinary meaning of ``readily
                restored''); United States v. Mullins, 446 F.3d 750, 756 (8th Cir.
                2006) (a starter gun that can be modified in less than one hour by a
                person without any specialized knowledge to fire may be considered
                ``readily convertible'' under the GCA); United States v. One TRW,
                Model M14, 7.62 Caliber Rifle, 441 F.3d 416, 422-24 (6th Cir. 2006)
                (``[T]he Defendant weapon here had all of the necessary parts for
                restoration and would take no more than six hours to restore.'');
                United States v. Woods, 560 F.2d 660, 664 (5th Cir. 1977) (holding
                that a weapon was a shotgun within the meaning of 26 U.S.C. 5845(d)
                and stating ``[t]he fact that the weapon was in two pieces when
                found is immaterial considering that only a minimum of effort was
                required to make it operable.''); United States v. Smith, 477 F.2d
                399, 400-01 (8th Cir. 1973) (machinegun that would take around an
                eight-hour working day in a properly equipped machine shop was
                readily restored to shoot); United States v. 16,179 Molso Italian
                .22 Caliber Winler Derringer Convertible Starter Guns, 443 F.2d 463
                (2d Cir. 1971) (starter guns converted in no more than 12 minutes to
                fire live ammunition were readily convertible under the GCA); United
                States v. Morales, 280 F. Supp. 2d 262, 272-73 (S.D.N.Y. 2003)
                (partially disassembled Tec-9 pistol that could be assembled within
                a short period of time could readily be converted to expel a
                projectile); United States v. Catanzaro, 368 F. Supp. 450, 453 (D.
                Conn. 1973) (a sawed-off shotgun was ``readily restorable to fire''
                where it could be reassembled in one hour and the necessary missing
                parts could be obtained at a Smith & Wesson plant); compare with
                United States v. Seven Miscellaneous Firearms, 503 F. Supp. 565,
                574-75 (D.D.C. 1980) (weapons could not be ``readily restored to
                fire'' when restoration required master gunsmith in a gun shop and
                $65,000 worth of equipment and tools).
                ---------------------------------------------------------------------------
                D. Definitions of ``Complete Weapon'' and ``Complete Muffler or
                Silencer Device''
                 This proposed rule would add definitions for ``complete weapon''
                and ``complete muffler or silencer device'' to 27 CFR 478.11 and
                479.11. A ``complete weapon'' would be defined as ``a firearm other
                than a firearm muffler or firearm silencer that contains all component
                parts necessary to function as designed whether or not assembled or
                operable.'' Likewise, a ``complete muffler or silencer device'' would
                be defined as ``a firearm muffler or firearm silencer that contains all
                of the component parts necessary to function as designed whether or not
                assembled or operable.'' These definitions are needed to explain when a
                frame or receiver of a firearm, including a firearm muffler or
                silencer, as the case may be, must be marked.
                E. Definition of ``Privately Made Firearm''
                 The NPRM proposes adding a definition of ``privately made firearm''
                to 27 CFR 478.11 to mean ``[a] firearm, including a frame or receiver,
                assembled or otherwise produced by a person other than a licensed
                manufacturer, and without a serial number or other identifying markings
                placed by a licensed manufacturer at the time the firearm was
                produced.'' The term would not include a firearm identified and
                registered in the NFRTR pursuant to chapter 53, title 26, United States
                Code, or any firearm made before October 22, 1968 (unless
                remanufactured after that date). This proposed definition explains that
                PMFs are those firearms that were made by nonlicensees without the
                markings required by this part, and excludes those already marked and
                registered in the NFRTR, and any firearm made before enactment of the
                GCA which, unlike the repealed law it replaced, required all firearms
                to be marked under federal law.\59\ The term ``made'' is incorporated
                within the term ``privately made firearm'' rather than ``manufacture''
                to distinguish between firearms manufactured (or ``made'') by private
                individuals without a license and those manufactured by persons
                licensed to engage in the business of manufacturing firearms.\60\
                ---------------------------------------------------------------------------
                 \59\ The Federal Firearms Act of 1938 (repealed), the
                predecessor to the GCA, made it unlawful for a person to receive a
                firearm that had the manufacturer's serial number removed,
                obliterated or altered. 15 U.S.C. 902(i). Regulations promulgated to
                implement this law required each firearm manufactured after July 1,
                1958, to be identified with the name of the manufacturer or
                importer, a serial number, caliber, and model. However, there was an
                exception from the serial number and model requirements for any
                shotgun or .22 caliber rifle unless that firearm was also subject to
                the NFA. 26 CFR 177.50 (rescinded).
                 \60\ Both the GCA and NFA define the term ``manufacturer'' as
                any person ``engaged in the business of manufacturing firearms,''
                and the GCA further defines the term ``licensed manufacturer'' as
                ``any such person licensed under the provisions of this chapter.''
                18 U.S.C. 921(a)(10); 26 U.S.C. 5845(m). The NFA further defines the
                term ``make,'' and the various derivatives of that word, to include
                ``manufacturing (other than by one qualified to engage in the
                business under this chapter), putting together, altering, any
                combination of these, or otherwise producing a firearm.'' 26 U.S.C.
                5845(i).
                ---------------------------------------------------------------------------
                F. Definition of ``Importer's or Manufacturer's Serial Number''
                 The proposed rule would define the term ``importer's or
                manufacturer's serial number'' in 27 CFR 478.11 as: ``[t]he
                identification number, licensee name, licensee city or state, or
                license number placed by a licensee on a firearm frame or receiver in
                accordance with this part. The term shall include any such
                identification on a privately made firearm, or an ATF issued serial
                number.'' Because ``privately made firearms'' are manufactured by
                someone other than a licensed manufacturer, the serial number that
                incorporates the abbreviated Federal firearms license (``FFL'') number
                placed by a licensee on a PMF under this rule is the ``importer's or
                manufacturer's serial number.'' This definition would help ensure that
                the serial numbers and other markings necessary to ensure tracing,
                including those placed by a licensee on a ``privately made firearm'' or
                marked with an ATF-issued serial number,\61\ to include imported
                firearms, are considered the ``importer's or manufacturer's serial
                number'' protected by 18 U.S.C. 922(k), which prohibits their removal,
                obliteration, or alteration.\62\
                ---------------------------------------------------------------------------
                 \61\ ATF occasionally issues serial numbers for placement on
                firearms in which the serial numbers were not originally placed, see
                26 U.S.C. 5842(b), or were accidentally removed, damaged, or worn
                due to routine use or other innocent reason.
                 \62\ In addition to Federal law, 18 U.S.C. 922(k) and 26 U.S.C.
                5861(g), (h), (i), almost every state prohibits the removal,
                alteration, or obliteration of a firearm's serial number or
                possession of a firearm with a serial number that has been removed,
                altered, or obliterated. See Ala. Code section 13A-11-64; Alaska
                Stat. section 11.61.200; Ariz. Rev. Stat. section 13-3102; Ark. Code
                section 5-73-107; Cal. Penal Code section 23900; Colo. Rev. Stat.
                section 18-12-103; Conn. Gen. Stat. section 29-36; Del. Code tit. 11
                section 1459; Fla. Stat. Ann. section 790.27; Ga. Code. Ann. section
                16-9-70; Haw. Rev. Stat. section 134-10; Idaho Code Ann. section 18-
                2410; 720 Ill. Comp. Stat. section 5/24-5; Ind. Code section 35-47-
                2-18; Kan. Stat. Ann. section 21-6306; Ky. Rev. Stat. section
                527.050; La. Stat. Ann. section 40:1788; Me. Stat. tit. 17-A section
                705(E); Md. Code Pub. Safety section 5-142; Mass. Gen. Laws 269
                section 11C; Mich. Comp. Laws section 750.230; Minnesota Stat.
                section 609.667; Mo. Rev. Stat. section 571.050; Mont. Code Ann.
                section 45-6-326; Neb. Rev. Stat. sections 28-1207, 28-1208; Nev.
                Rev. Stat. section 202.277; N.H. Rev. Stat. Ann. section 637:7-a;
                N.J. Stat. Ann. section 2C:39-3(d); N.Y. Penal Law section
                265.02(3); N.C. Gen. Stat. section 14-160.2; N.D. Cent. Code section
                62.1-03-05; Ohio Rev. Code section 2923.201; Okla. Stat. tit. 21
                section 1550(B); Or. Rev. Stat. section 166.450; 18 Pa. Cons. Stat.
                sections 6110.2, 6117; R.I. Gen. Laws section 11-47-24; S.C. Code.
                Ann. section 16-23-30(C) (handguns); S.D. Codified Laws 22-14-5;
                Tenn. Code Ann. section 39-14-134; Tex. Penal Code section 31.11;
                Utah Code section 76-10-521 (handguns); Va. Code Ann. section 18.2-
                311.1; Wash. Rev. Code section 9.41.140; W. Va. Code section 18.2-
                311.1; Wis. Stat. section 943.37(3).
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                [[Page 27731]]
                G. Definition of ``Gunsmith'' 63
                ---------------------------------------------------------------------------
                 \63\ The term ``gunsmith'' is not used in the GCA; however, the
                Firearm Owners' Protection Act, Public Law 99-308, amended the GCA
                to define ``engaged in the business'' as applied to dealers to
                clarify when gunsmiths must have a license. See 18 U.S.C.
                921(a)(11)(B); id. at (a)(21)(D); 132 Cong. Rec. 9603-04 (May 6,
                1986) (statement of Sen. McClure).
                ---------------------------------------------------------------------------
                 To provide greater access to professional marking, this proposed
                rule would clarify that the meaning of the term ``gunsmith'' includes
                persons who engage in the business of identifying firearms for
                nonlicensees so that gunsmiths may become licensed as dealer-gunsmiths
                solely to provide professional PMF marking services. Specifically, this
                proposed rule would amend the definition of ``engaged in the business''
                as it applies to a ``gunsmith'' in 27 CFR 478.11 to clarify the meaning
                of that term as someone ``who, as a service performed on existing
                firearms not for sale or distribution by a licensee, devotes time,
                attention, and labor to repairing or customizing firearms, making or
                fitting special barrels, stocks, or trigger mechanisms to firearms, or
                identifying firearms in accordance with this chapter, as a regular
                course of trade or business with the principal objective of livelihood
                or profit, but such term shall not include a person who occasionally
                repairs or customizes firearms, or occasionally makes or fits special
                barrels, stocks, or trigger mechanisms to firearms.''
                 This amendment would make clear that businesses that routinely
                repair or customize existing firearms, make or fit special barrels,
                stocks, or trigger mechanisms, or mark firearms as a service performed
                on firearms not for sale or distribution by a licensee, may be licensed
                as dealer-gunsmiths rather than as manufacturers.\64\ Under this rule,
                PMFs would first need to be recorded by the dealer-gunsmith as an
                acquisition in the licensee's A&D Records upon receipt from the private
                owner (whether or not the licensee keeps the PMF overnight), and once
                marked, the licensee would update the acquisition entry with the
                identifying information, and then record its return as a disposition to
                the private owner. This would ensure that the PMF, if ever found by
                police at a crime scene, can be traced. However, no ATF Form 4473 or
                NICS background check would be required upon return of the marked
                firearm to the person from whom it was received, pursuant to 27 CFR
                478.124(a).
                ---------------------------------------------------------------------------
                 \64\ By clarifying the definition of gunsmith to mean a service
                routinely performed on existing firearms that are not for sale or
                distribution by a licensee, this rule would supersede ATF Ruling
                2010-10, which allows gunsmiths under specified conditions to engage
                in certain manufacturing activities for licensed manufacturers. This
                would eliminate a significant source of confusion among regulated
                industry members and the public as to who needs a license to
                manufacture firearms. See Broughman v. Carver, 624 F.3d 670 (4th
                Cir. 2010) (distinguishing dealer-gunsmiths from manufacturers).
                ---------------------------------------------------------------------------
                H. Marking Requirements for Firearms
                1. Information Required To Be Marked on the Frame(s) or Receiver(s)
                 To properly implement the new definitions, this proposed rule would
                amend 27 CFR 478.92(a) and 479.102 to explain how and when markings
                must be applied on each part defined as a frame or receiver,
                particularly since there could be more than one part of a complete
                weapon, or complete muffler or silencer device, that is the frame or
                receiver (i.e., when ATF has not identified specific part(s) as the
                frame or receiver). After publication of a final rule, each frame or
                receiver of a new firearm design or configuration manufactured or
                imported after the date of publication of the final rule would need to
                be marked with a serial number, and either: (a) The manufacturer's or
                importer's name (or recognized abbreviation), and city and State (or
                recognized abbreviation) where the manufacturer or importer maintains
                their place of business, or in the case of a maker of an NFA firearm,
                where the firearm was made; or (b) the manufacturer's or importer's
                name (or recognized abbreviation), and the serial number beginning with
                the licensee's abbreviated FFL number as a prefix, which is the first
                three and last five digits followed by a hyphen, and then followed by a
                number (which may incorporate letters and a hyphen) as a suffix, e.g.,
                ``12345678-[number].'' The serial number (with or without the FFL
                prefix) identified on each part of a weapon defined as a frame or
                receiver must be the same number, but must not duplicate any serial
                number(s) placed by the licensee on any other firearm.
                 The additional information required to be marked on each frame or
                receiver (i.e., name, city and state, or name and abbreviated serial
                number) would only apply to new designs or configurations of firearms
                manufactured or imported after publication of the rule. Licensed
                manufacturers and importers may continue to identify the additional
                information on firearms (other than PMFs) of the same design and
                configuration as they existed before [effective date of the rule] under
                the prior content rules, and any rules necessary to ensure such
                identification will remain effective for that purpose. This provision
                is intended to reduce production costs incurred by licensees.
                 Requiring Federal firearms licensees to mark in this manner on each
                part defined as a frame or receiver would make it possible for ATF to
                trace the firearm if the manufacturer's or importer's name, city, or
                state is marked on the slide or barrel, and the original components are
                later separated. At the same time, it would give an option for
                manufacturers and importers to avoid marking their city and state as
                currently required at Sec. Sec. 478.92(a)(1)(ii)(D), (E) and
                479.102(a)(1)(iv) and (v), or obtain a marking variance from this
                requirement, by allowing them to mark their abbreviated license number
                as a prefix to the serial number as an alternative because this
                information can be obtained by looking up the licensee's information.
                Except for silencer parts transferred by manufacturers to other
                qualified manufacturers and dealers for completion or repair of devices
                (see Section II.H.9 of the preamble), there would be no change to the
                existing requirement that each part defined as a machinegun or silencer
                that is disposed of separately and not part of a complete weapon or
                device be marked with all required information because individual
                machinegun conversion and silencer parts are ``firearms'' under the NFA
                that must be registered in the NFRTR. 26 U.S.C. 5841(a)(1); id. at
                5845(a), (b). However, for frames or receivers, and individual
                machinegun conversion or silencer parts defined as ``firearms'' that
                are disposed of separately, the model designation and caliber or gauge
                may be omitted if it is unknown at the time the part is identified.
                [[Page 27732]]
                2. Size and Depth of Markings
                 This proposed rule would not change the existing requirements for
                size and depth of markings in 27 CFR 478.92(a)(1) and 479.102(a), but
                for sake of clarity, consolidates them into a standalone paragraph
                along with the existing method of measuring the size and depth of
                markings set forth in 27 CFR 478.92(a)(5) and 479.102(b).
                3. Period of Time To Identify Firearms
                 Neither the GCA nor the NFA explain at what point in the
                manufacturing process the required markings must be placed. In this
                regard, the proposed rule would make a distinction between the
                manufacture or making of a complete weapon or complete muffler or
                silencer device, and each part, including a replacement part, defined
                as a frame or receiver, machinegun, or firearm muffler or firearm
                silencer that is not a component part of a complete weapon or device at
                the time it is sold, shipped, or otherwise disposed. Complete weapons
                or complete muffler or silencer devices, as defined in this rule, would
                be allowed to be marked up to seven days from completion of the active
                manufacturing process for the weapon or device, or prior to
                disposition, whichever is sooner. Except for silencer parts produced by
                qualified manufacturers for transfer to other licensees to complete or
                repair silencer devices (see Section II.H.9 of the preamble), parts
                defined as a frame or receiver, machinegun, or firearm muffler or
                firearm silencer that are not component parts of a complete weapon or
                device when disposed of would be allowed to be marked up to seven days
                following the date of completion of the active manufacturing process
                for the part, or prior to disposition, whichever is sooner. Adding this
                language would codify ATF Ruling 2012-1, and this ruling would become
                obsolete upon publication of the rule. As explained in that ruling,
                whether the end product is to become a complete weapon or device, or a
                frame or receiver to be disposed of separately, firearms that are
                actively awaiting materials, parts, or equipment repair to be completed
                are still considered to be actively in the manufacturing process.
                4. Marking of Privately Made Firearms
                 Because privately made firearms do not have the identifying
                markings required of commercially manufactured firearms, this rule
                proposes to amend 27 CFR 478.92 to require FFLs to mark, or supervise
                the marking of, the same serial number on each frame or receiver (as
                defined in this rule) of a weapon that begins with the FFL's
                abbreviated license number (first three and last five digits) as a
                prefix followed by a hyphen on any ``privately made firearm'' (as
                defined) that the licensee acquired (e.g., ``12345678-[number]'').
                Unless previously identified by another licensee, PMFs acquired by
                licensees on or after the effective date of the rule would need to be
                marked in this manner within seven days of receipt or other acquisition
                (including from a personal collection), or before the date of
                disposition (including to a personal collection), whichever is
                sooner.\65\ For PMFs acquired by licensees before the effective date of
                the rule, licensees would be required to mark or cause them to be
                marked by another licensee either within 60 days from that date, or
                before the date of final disposition (including to a personal
                collection), whichever is sooner. With respect to polymer firearms,
                including those that are produced using additive manufacturing (also
                known as ``3D printing''), the method of marking would typically
                require the licensee to embed (or use pre-existing) metal serial number
                plates within the plastic to ensure they cannot be worn away during
                normal use.\66\ Incorporation of this metal plate along with other
                metal components would also help ensure that the polymer firearm does
                not violate the Undetectable Firearms Act, 18 U.S.C. 922(p), which
                prohibits the manufacture and possession of firearms that are not as
                detectable as the ``Security Exemplar'' that contains 3.7 ounces of
                material type 17-4 PH stainless steel.\67\
                ---------------------------------------------------------------------------
                 \65\ Under this rule, licensed collectors would only need to
                mark PMFs they receive or otherwise acquire that are defined as
                ``curios or relics.'' See 27 CFR 478.11 (definitions of ``firearm''
                and ``curios or relics'').
                 \66\ When the size and depth of markings regulations were first
                promulgated, ATF recognized that ``all markings can be removed by
                someone who wishes to make a deliberate effort to remove the
                markings. Realistically, we need to be concerned about markings that
                could be worn away during normal use or markings that could survive
                normal refinishing processes, e.g., blueing, plating, etc. . . . As
                such, ATF has required manufacturers and importers who use polymer
                plastic frames to mark serial numbers in a steel plate embedded
                within the plastic.'' 66 FR 40599 (Aug. 3, 2001).
                 \67\ Handguns that are 3D printed are also subject to the
                registration and taxation requirements of the NFA if they have a
                smooth bore and are capable of being concealed on the person,
                thereby falling within the definition of ``any other weapon.'' See
                26 U.S.C. 5845(e).
                ---------------------------------------------------------------------------
                 PMFs currently in inventory that a licensee chooses not to mark may
                also be destroyed or voluntarily turned in to law enforcement within
                the 60-day period. Also, this proposed rule would not require Federal
                firearms licensees to accept any PMFs, or to mark them themselves.
                Licensees would be able to refuse to accept PMFs, or arrange for
                private individuals to have them marked by another licensee before
                accepting them, provided they are properly marked in accordance with
                this proposed rule. To provide greater access to professional marking,
                as stated previously, this rule would clarify that the meaning of the
                term ``gunsmith'' includes persons who engage in the business of
                identifying firearms for nonlicensees so that gunsmiths may become
                licensed as dealer-gunsmiths solely to provide professional PMF marking
                services.
                 Consistent with the language and purpose of the GCA, this proposed
                provision is necessary to allow ATF to trace all firearms acquired and
                disposed of by licensees, prevent illicit firearms trafficking, and
                provide guidance to FFLs and the public with respect to PMF
                transactions with the licensed community. This provision is crucial in
                light of advances in technology that allow unlicensed persons easily to
                produce firearms at home from parts ordered online, or by using 3D
                printers or personally owned or leased equipment. Such privately made
                firearms have and will continue to make their way to the primary market
                in firearms throughout the licensed community.\68\ At the same time,
                consistent with the intent of the GCA,\69\ nothing in this rule would
                restrict persons not otherwise prohibited from possessing firearms from
                making their own firearms at home without markings solely for personal
                use (not for sale or distribution) in accordance with Federal, State,
                and local law.\70\ Persons should consult the laws and officials in
                their own States and localities to determine the lawfulness of PMFs.
                ---------------------------------------------------------------------------
                 \68\ Under Federal law, for example, certain firearm
                transactions must be conducted through Federal firearms licensees.
                See 18 U.S.C. 922(a)(5) (prohibiting any person other than a
                licensee, subject to certain limited exceptions, from selling or
                delivering a firearm to an unlicensed out of state resident).
                 \69\ See Public Law 90-351, sec. 901(b), 82 Stat. 227.
                 \70\ This rule is also consistent with the Second Amendment. As
                the Supreme Court stated in District of Columbia v. Heller, 554 U.S.
                570, 626-27 & n.26 (2008), ``presumptively lawful regulatory
                measures'' include those ``imposing conditions and qualifications on
                the commercial sale of arms.'' See also United States v.
                Marzzarella, 614 F.3d 85, 99 (3d Cir. 2010) (concluding that even if
                strict scrutiny were to apply, 18 U.S.C. 922(k) (prohibiting
                possession of firearms with obliterated serial numbers) would be
                upheld under the Second Amendment because ``serial number tracing
                serves a governmental interest in enabling law enforcement to gather
                vital information from recovered firearms. Because it assists law
                enforcement in this manner, we find its preservation is not only a
                substantial but a compelling interest.'').
                ---------------------------------------------------------------------------
                [[Page 27733]]
                5. Meaning of Marking Terms
                 An additional amendment to 27 CFR 478.92 and 478.102 would clarify
                the meaning of the terms ``legible'' and ``legibly'' to ensure that
                ``the identification markings use exclusively Roman letters (e.g., A,
                a, B, b, C, c) and Arabic numerals (e.g., 1, 2, 3), or solely Arabic
                numerals, and may include a hyphen,'' and that the terms
                ``conspicuous'' and ``conspicuously'' are understood to mean that ``the
                identification markings are capable of being easily seen with normal
                handling of the firearm and unobstructed by other markings when the
                complete weapon is assembled.'' This would codify the meaning of those
                terms as explained in ATF Ruling 2002-6 (``legible''), and ATF's final
                rule at 66 FR 40599 (Aug. 3, 2001) (referencing U.S. Customs Service
                regulations on the definition of ``conspicuous'').
                6. Alternate Means or Period of Identification
                 This proposed rule would not alter the Director's ability to
                authorize other means of identification, or a ``marking variance,'' for
                any part defined as a firearm (including a machinegun or silencer) upon
                receipt of a letter application or an Application for Alternate Means
                of Identification of Firearms (Marking Variance), ATF Form 3311.4,
                showing that such other identification is reasonable and does not
                hinder the effective administration of the regulations. The amendment
                would also allow ATF to grant a variance from the period in which to
                mark firearms.
                7. Destructive Device Period of Identification
                 Similar to other firearms, because the proposed rule would now
                specify the seven-day grace period in which to mark all completed
                firearms, including destructive devices, this rule would also allow ATF
                to grant a variance from this period. The marking requirements for
                destructive devices are otherwise unchanged.
                8. Adoption of Identifying Markings
                 This rule proposes to authorize licensed manufacturers and
                importers to adopt an existing serial number, caliber/gauge, model, or
                other markings already identified on a firearm provided they legibly
                and conspicuously place, or cause to be placed, on each part (or
                part(s) previously determined by the Director) defined as a frame or
                receiver either: Their name (or recognized abbreviation), and city and
                State (or recognized abbreviation) where they maintain their place of
                business; or their name (or recognized abbreviation) and their
                abbreviated FFL number, which is the first three and last five digits
                followed by a hyphen, and then followed by the existing serial number
                (including any other abbreviated FFL prefix) as a suffix, e.g.,
                ``12345678-[serial number],'' to ensure the traceability of the
                firearm. This language would supersede ATF Ruling 2013-3 as it applies
                to licensed manufacturers and importers, but the ruling would remain
                effective for makers of NFA firearms. This change would help avoid
                multiple markings on firearms that could be confusing to law
                enforcement and alleviate concerns of some manufacturers and importers
                regarding serial number duplication when firearms are remanufactured or
                reimported.
                9. Firearm Muffler or Silencer Parts Transferred Between Qualified
                Licensees
                 Licensed and qualified firearm muffler or silencer manufacturers
                routinely transfer small internal muffler or silencer components to
                each other to produce complete devices, and between qualified licensees
                when repairing existing devices. Because of the difficulties and
                expense of marking and registering small individual components used to
                commercially manufacture a complete muffler or silencer device with
                little law enforcement benefit, this proposed rule would allow
                qualified manufacturers to transfer parts defined as a firearm muffler
                or silencer to other qualified manufacturers without immediately
                identifying or registering them. Once the new device is complete with
                the part, the manufacturer would be required to identify and register
                the device in the manner and within the period specified in this rule
                for a complete device. Likewise, the proposed rule would allow
                qualified manufacturers to transfer muffler or silencer replacement
                parts to qualified manufacturers and dealers to repair existing devices
                already identified and registered in the NFRTR. Further, this rule
                would amend the definition of ``transfer'' to clarify that the
                temporary conveyance of a lawfully possessed NFA firearm, including a
                silencer, to a qualified manufacturer or dealer for the sole purpose of
                repair, identification, evaluation, research, testing, or calibration,
                and return to the same lawful possessor is not a ``transfer'' requiring
                additional identification or registration in the NFRTR. This change
                would be consistent with the definition of ``transfer'' in 26 U.S.C.
                5845(j) because a temporary conveyance for these purposes is not a sale
                or other disposition.\71\ These proposed rules are intended to reduce
                the practical and administrative problems of marking and registering
                silencer parts by the regulated industry, and avoid a potential
                resource burden on ATF to process numerous tax-exempt registration
                applications with little public safety benefit.\72\
                ---------------------------------------------------------------------------
                 \71\ The definition of ``transfer'' in the NFA only includes
                ``selling, assigning, pledging, leasing, loaning, giving away, or
                otherwise disposing of'' a firearm. See United States v. Smith, 642
                F.2d 1179, 1182 (9th Cir. 1981) (``We cannot agree that Congress
                intended to impose a transfer tax and require registration whenever
                mere physical possession of a firearm is surrendered for a brief
                period.'').
                 \72\ These changes are consistent with ATF enforcement policy.
                See NFA Handbook, ATF E-Publication 5320.8 (April 2009), pp. 46, 60
                sections 7.4.6; 9.5.1. With regard to silencer repairs, in order to
                avoid any appearance that an unlawful ``transfer'' has taken place,
                ATF recommends that an Application for Tax Exempt Transfer and
                Registration of Firearm, ATF Form 5, be submitted for approval prior
                to conveying the firearm for repair or identifying the firearm. The
                conveyance may also be accomplished by submission of a letter from
                the registrant to the qualified FFL advising the FFL that the
                registrant is shipping or delivering the firearm for repair/
                identification and describing the repair or identification. Return
                of the registered silencer to the registrant may likewise be
                accomplished by submission of an ATF Form 5 or by a letter from the
                FFL to the registrant that accompanies the silencer.
                ---------------------------------------------------------------------------
                10. Voluntary Classification of Firearms and Armor Piercing Ammunition
                 For many years, ATF has acted on voluntarily requests from persons,
                particularly manufacturers who are developing new products, by issuing
                determinations or ``classifications'' whether an item is a ``firearm''
                or ``armor piercing ammunition'' as defined in the GCA or NFA. This
                helps regulated industry members and the public determine what laws and
                regulations may be applicable to the product, and any steps that they
                may need to take to be compliant with those laws and regulations. To
                clarify this process, this proposed rule would set forth the procedure
                and conditions by which persons may voluntarily submit such requests to
                ATF. Each request would be submitted in writing or on an ATF form
                executed under the penalties of perjury with a complete and accurate
                description of the item, the name and address of the manufacturer or
                importer thereof, and a sample of such item for examination along with
                any instructions, guides, templates, jigs, equipment, tools, or
                marketing materials that are made available to the purchaser or
                recipient of the item. Upon completion of the examination, ATF may
                return the sample to the person who made the request unless a
                determination is made that return of the
                [[Page 27734]]
                sample would be or place the person in violation of law.
                 ATF's decision whether to classify an item voluntarily submitted is
                entirely discretionary. The proposed procedure would assist ATF more
                efficiently to determine the design and intent of the manufacturer of
                the item through its written statements, and by examining the objective
                design features of an actual sample along with any instructions,
                guides, templates, jigs, equipment, tools, or marketing materials that
                are made available to the purchaser or recipient of the item (though
                ATF is not limited to examining the items submitted to make its
                determination). The proposed rule would further codify ATF's policy not
                to evaluate a firearm accessory or attachment ``unless it is installed
                on the firearm(s) in the configuration for which it is designed and
                intended to be used,'' and would further explain that ``[a]
                determination made by the Director under this paragraph shall not be
                deemed by any person to be applicable to or authoritative with respect
                to any other sample, design, model, or configuration.''
                I. Recordkeeping
                1. Acquisition and Disposition Records
                 This proposed rule would make minor amendments to 27 CFR 478.122,
                478.123, 478.125, and 478.125a, pertaining to the acquisition and
                disposition records maintained by importers, manufacturers, and
                dealers. Due to the possibility that a firearm may have more than one
                frame or receiver as defined in this rule, and the changes to marking
                regulations, this rule would make technical amendments to these
                recordkeeping regulations to make certain words plural, (e.g.,
                manufacturer(s), importer(s), and serial number(s)) in the regulations
                and for the formatting of their records as applicable. Although under
                Sec. Sec. 478.11 and 479.11 singular terms in the regulations must
                always be read to include the plural form, and vice versa, these
                changes are necessary to ensure that Federal firearms licensees record
                more than one manufacturer, importer, or serial number, if appropriate,
                when acquiring or disposing of firearms with multiple components marked
                as the frame or receiver, or that have been remanufactured or
                reimported by another licensee. This is consistent with prior ATF
                guidance to the firearms industry.\73\ However, to reduce costs
                incurred by licensees, ATF anticipates that it would exercise its
                discretion not to enforce these format changes to the A&D Record until
                an existing paper record book is completed (i.e., ``closed out'') or
                electronic record version updated in the normal course of business,
                provided the information is accurately recorded as required in the
                existing record.
                ---------------------------------------------------------------------------
                 \73\ See FFL Newsletter, May 2012, p.5 (``If a firearm is marked
                with two manufacturer's names, or multiple manufacturer and importer
                names, FFLs should record each manufacturers' and importers' name in
                the A&D record.'').
                ---------------------------------------------------------------------------
                 Over the years, licensed importers and manufacturers have asked ATF
                to allow them to consolidate their records of importation or
                manufacture and acquisition and disposition of firearms, rather than
                maintaining separate records as required by 27 CFR 478.122(d) and
                478.123(d). Because separate records are also difficult for ATF to
                inspect, this rule would amend Sec. Sec. 478.122 and 478.123 to
                require licensed importers and manufacturers to consolidate their
                records of importation, manufacture, or other acquisition, and their
                sale or other disposition in a format containing the applicable columns
                specified in a table included in Sec. 478.122(b). The columns may be
                in a different order than the specified format provided they contain
                all required information. These changes would supersede ATF Rulings
                2011-1 and 2016-3, and those rulings would become obsolete upon
                publication of a final rule.
                 This rule would also make minor clarifying edits to the format of
                the Firearms Acquisition and Disposition Record in Sec. 478.125(e).
                The column titled ``Name and address or name and license No.'' would be
                retitled as ``Name and address of nonlicensee; or if licensee, name and
                License No.'' In addition, the column titled ``Address or License No.
                if licensee, or Form 4473 Serial No. if Forms 4473 filed numerically''
                would be retitled ``Address of nonlicensee; License No. of licensee; or
                Form 4473 Serial No. if such forms filed numerically.'' This change
                would make clear that both the name and license number (not the
                address) of a licensee from whom firearms are received and to whom they
                are disposed are recorded in the A&D Record. However, to reduce costs
                incurred by licensees, ATF anticipates that it would exercise its
                discretion not to enforce these format changes to the A&D Record until
                an existing paper record book is completed (i.e., ``closed out'') or
                electronic record version updated in the normal course of business,
                provided the information is accurately recorded as required in the
                existing record.
                 The proposed changes to Sec. 478.125 would also include a minor
                amendment to paragraph (f) to make it clear that in the event the
                licensee records a duplicate entry with the same firearm and
                acquisition information, whether to close out an old record book or for
                any other reason, the licensee must record a reference to the date and
                location of the subsequent entry (e.g., date of new entry, book name/
                number, page number, and line number) as the disposition. This change
                is needed to ensure that acquisition records are closed out when
                firearms are no longer in inventory.\74\ This would resolve a
                significant problem that ATF Industry Operations Investigators have
                when trying to reconcile the inventory of a Federal firearms licensee,
                and that Federal firearms licensees have when timely responding to
                trace requests, particularly when old A&D Records are ``closed out''
                and stored, which, under this proposed rule, could be in a separate
                warehouse depending on their age (see Section II.J of the preamble).
                ---------------------------------------------------------------------------
                 \74\ This is consistent with prior ATF guidance to the firearms
                industry. See FFL Newsletter, Sept. 2011, p.5.
                ---------------------------------------------------------------------------
                2. Firearms Transaction Records
                 Some technical amendments would be needed at 27 CFR 478.124
                pertaining to information recorded on the ATF Form 4473. Like changes
                to the recordkeeping regulations, these amendments would make certain
                words plural, (e.g., manufacturer(s), importer(s), and serial
                number(s)) to ensure that the Federal firearms licensee is recording
                more than one manufacturer, importer, and serial number, if
                appropriate, on Forms 4473. In addition, the proposed changes to Sec.
                478.124 would include a minor technical amendment to paragraph (f) by
                removing a phrase that indicates that a Federal firearms licensee must
                fill out the firearm description information only after filling out the
                information about the transferee. Making this deletion would codify ATF
                Procedure 2020-1, which sets forth an alternative method of complying
                with Sec. 478.124(f) for non-over-the-counter firearm transactions.
                ATF recently issued that procedure in light of changes to ATF Form 4473
                (May 2020), which now requires completion of the form in an order
                different from that provided in Sec. 478.124(f).
                3. Recordkeeping for Privately Made Firearms
                 Minor changes to the above regulations regarding recordkeeping by
                licensees would also be needed to account for any voluntary receipts or
                other acquisitions (including from a personal collection) of privately
                made firearms, and corresponding dispositions (including to a personal
                collection). Since PMFs are not
                [[Page 27735]]
                commercially manufactured, if a PMF were received or otherwise acquired
                by a licensee or disposed of, or imported, the abbreviation ``PMF''
                would be recorded as the manufacturer in the appropriate column on a
                licensee's acquisition and disposition record, ATF Form 4473, or import
                application, as well as the PMF serial number beginning with the
                abbreviated FFL number in the serial number column. For PMFs received
                prior to the effective date of a final rule that are to be identified
                by the licensee in accordance with Sec. 478.92, or by another licensee
                at the licensee's request, the licensee would be required to first
                record the firearm as an acquisition in the licensee's A&D Records upon
                receipt from the private owner (whether or not the licensee keeps the
                PMF overnight). Once marked, the licensee would update the acquisition
                entry with the identifying information, and then record its return as a
                disposition to the private owner. However, to reduce costs incurred by
                licensees, ATF anticipates that it would exercise its discretion not to
                enforce a title format change to the A&D Record to add ``and/or PMF''
                in the manufacturer column until an existing paper record book is
                completed (i.e., ``closed out'') or electronic record version updated
                in the normal course of business, provided each PMF received is
                accurately recorded as a ``PMF'' in the manufacturer column.
                4. NFA Forms Update
                 Minor technical amendments would also be needed in 27 CFR 479.62,
                479.84, 479.88, 479.90, and 479.141, pertaining to NFA Form 1
                (Application to Make), NFA Form 4 (Application to Transfer), NFA Form 3
                (Tax Exempt Transfers--SOTs), NFA Form 5 (Tax Exempt Transfers--
                Governmental Entities), and the Stolen or Lost Firearms report,
                respectively. Due to the new definitions and changes to marking
                regulations, the technical amendments here would make certain words
                plural (e.g., manufacturer(s), importer(s), serial number(s)) in the
                regulations as applicable. Although under Sec. Sec. 478.11 and 479.11
                singular terms in the regulations must always be read to include the
                plural form, and vice versa, these changes are necessary to ensure that
                more than one name, manufacturer, importer, or serial number, if
                appropriate, is recorded when completing the NFA forms.
                5. Importation Forms Update
                 Minor technical amendments would also be needed in 27 CFR 447.42,
                447.45, 478.112, 478.113, 478.114, and 479.112, pertaining to the
                importation of firearms. Again, due to the new definition and changes
                to marking regulations, the technical amendments here would make
                certain words plural (e.g., manufacturer(s), country or countries of
                manufacture, and serial number(s)) in the regulations as applicable.
                Although under Sec. Sec. 478.11 and 479.11 singular terms in the
                regulations must always be read to include the plural form, and vice
                versa, these changes are necessary to ensure that more than one name,
                manufacturer, country, importer, or serial number, if appropriate, is
                recorded when completing importation forms.
                J. Record Retention
                 This rule also proposes to amend 27 CFR 478.129 to remove language
                stating that FFL dealers and collectors need only keep A&D Records and
                ATF Forms 4473 for up to 20 years following the date of sale or
                disposition of the firearm. The proposed changes would require Federal
                firearms licensees to retain all records until business or licensed
                activity is discontinued, either on paper or in an electronic format
                approved by the Director,\75\ at the business or collection premises
                readily accessible for inspection. There would also be an amendment to
                27 CFR 478.50(a) to allow all licensees, including manufacturers and
                importers, to store paper records and forms with no open disposition
                entries and with no dispositions recorded within 20 years at a separate
                warehouse, which would be considered part of the business premises for
                this purpose and subject to inspection.
                ---------------------------------------------------------------------------
                 \75\ ATF previously approved electronic storage of certain
                records under the conditions set forth in ATF Rulings 2016-1
                (Acquisition and Disposition Records) and 2016-2 (ATF Forms 4473).
                ---------------------------------------------------------------------------
                 In view of advancements in electronic scanning and storage
                technology, and ATF's acceptance of electronic recordkeeping, these
                amendments would reverse a 1985 rulemaking allowing non-manufacturer/
                importer Federal firearms licensees to destroy their records after 20
                years.\76\ The durability and longevity of firearms means that they are
                often in circulation for more than 20 years, while the cost of storing
                firearm transaction records has decreased dramatically through
                electronic recordkeeping. The proposed amendments would enhance public
                safety by ensuring that records of active licensees will be available
                for tracing purposes. ATF has encountered some firearms retailers who
                have destroyed large numbers of records more than 20 years old so that
                they would no longer need to be stored physically. This resulted in
                some traces of firearms involved in crimes to be returned incomplete
                for lack of records. This provision is also essential if PMFs involved
                in crime are marked and traced directly to licensed dealers who, unlike
                licensed manufacturers and importers, are not presently required to
                maintain permanent records.
                ---------------------------------------------------------------------------
                 \76\ See 50 FR 26702 (June 28, 1985).
                ---------------------------------------------------------------------------
                III. Statutory and Executive Order Review
                A. Executive Orders 12866 and 13563
                 Executive Order 12866 (Regulatory Planning and Review) directs
                agencies to assess the costs and benefits of available regulatory
                alternatives and, if regulation is necessary, to select regulatory
                approaches that maximize net benefits (including potential economic
                benefits, environmental benefits, public health and safety effects,
                distributive impacts, and equity). Executive Order 13563 (Improving
                Regulation and Regulatory Review) emphasizes the importance of
                quantifying both costs and benefits, of reducing costs, of harmonizing
                rules, and of promoting flexibility.
                 The Office of Management and Budget (OMB) has determined that while
                this proposed rule is not economically significant, it is a
                ``significant regulatory action'' under section 3(f)(4) of Executive
                Order 12866 because this proposed rule raises novel legal or policy
                issues arising out of legal mandates. Accordingly, the rule has been
                reviewed by OMB.
                 This proposed rule would update the new definition of ``frame or
                receiver,'' among other items. Table 1 provides a summary of the
                provisions of this proposed rule, along with the estimated affected
                population, costs, and benefits.
                 Table 1--Summary of Affected Population, Costs, and Benefits
                ------------------------------------------------------------------------
                 Category NPRM
                ------------------------------------------------------------------------
                Applicability.......................... New Definition of
                 Receiver.
                [[Page 27736]]
                
                 Update Marking
                 Requirements.
                 New Gunsmithing
                 Definition.
                 Update Record
                 Retention.
                 Other Technical
                 Amendments.
                Affected Population.................... 113,204 FFLs (Record
                 Retention).
                 Unknown number of FFLs
                 manufacturers and importers
                 (Definition of Receiver).
                 35 Non-FFL
                 manufacturers (Definition of
                 Receiver).
                 6,044 FFL retailers
                 (PMFs).
                 36 Non-FFL retailers
                 (PMFs).
                 Unknown number of
                 Individual Owners.
                Total Costs to Industry, Public, and $1.1 million; $149,995 7%
                 Government (7% Discount Rate). annualized.
                Benefits (7% Discount Rate)............ N/A.
                Benefits (Qualitative)................. Provides clarity to
                 courts on what constitutes a
                 firearm frame or receiver.
                 Applies to new
                 technology.
                 Makes consistent
                 marking requirements.
                 Eases certain marking
                 requirements.
                 Increases tracing of
                 crime scene firearms to
                 prosecute criminals.
                ------------------------------------------------------------------------
                1. New Definition of Firearm Frame or Receiver
                 The proposed definition of this term would maintain current
                classifications and current marking requirements of firearm frames or
                receivers, except that the licensed manufacturer or importer must mark
                on new designs or configurations either: Their name (or recognized
                abbreviation), and city and State (or recognized abbreviation) where
                they maintain their place of business; or their name (or recognized
                abbreviation) and their abbreviated FFL number, on each part defined as
                a frame or receiver, along with the serial number. To ensure
                traceability if the parts are separated, there would no longer be an
                option only to mark the FFL's name, city, and state on the slide or
                barrel. More specifically--
                 The proposed definitions would take into account the fact
                that modern firearms do not house all the components as defined in the
                current definition. These definitions account for firearms such as
                split frames or multi-piece firearms;
                 The proposed definition would recognize the current
                classifications of a firearm ``frame or receiver.'' It is intended to
                encompass the majority, if not all, of existing regulated firearms, and
                no new marking requirements would be required for these existing
                designs and configurations;
                 After this proposed rule is finalized, markings on new
                designs or configurations of firearms manufactured or imported may be
                accomplished by marking each frame or receiver with the licensee's
                name, city, and state, and serial number, or with the licensee's name
                and abbreviated license number prefix and number (serial number) in the
                manner prescribed by existing marking requirements;
                 Markings would need to be accomplished within 7 days of
                completion of the active manufacturing process for the complete weapon
                (or frame or receiver of such weapon if not being sold as a complete
                weapon); and
                 The proposed rule would require acquisition and
                disposition record changes to accommodate recording multiple frames or
                receivers that have different serial numbers if the original frames or
                receivers (with the same serial number) become separated and are
                reassembled with frames or receivers bearing different serial numbers.
                 ATF believes that the majority of the industry currently complies
                with these requirements, so the cost would be minimal. While the new
                definitions would mostly affect new designs or configurations of
                firearms, manufacturers would still be able to receive a determination
                or a variance on the design from ATF; therefore, they may not
                experience an additional cost or burden. For more details, please refer
                to Chapter 2 of the Regulatory Impact Analysis.\77\
                ---------------------------------------------------------------------------
                 \77\ The Regulatory Impact Analysis is available on
                www.regulations.gov in the same docket as this rule.
                ---------------------------------------------------------------------------
                2. Partially Complete, Disassembled, or Inoperable Firearm Kits
                 This section addresses non-FFL manufacturers who manufacture
                partially complete, disassembled, or inoperable frame or receiver kits,
                to include both firearm parts kits that allow a person to make only a
                frame or receiver, and those kits that allow a person to make a
                complete weapon. When a partially complete frame or receiver parts kit
                reaches a stage in manufacture where it may readily be completed,
                assembled, converted, or restored to a functional state, it would be
                considered a firearm ``frame or receiver'' that must be marked.
                Further, under the proposed rule, weapon parts kits with partially
                complete frames or receivers containing the necessary parts such that
                they may readily be completed, assembled, converted, or restored to
                expel a projectile by the action of an explosive would be ``firearms''
                for which each frame or receiver of the weapon, as defined under this
                rule, would need to be marked.
                 For non-FFL manufacturers of firearm parts kits containing a part
                defined as a firearm frame or receiver, ATF anticipates there would be
                a significant impact on these individual companies, but notes that the
                overall industry impact would also be minimal. Based on current
                marketing related to the unregulated sale of certain firearm parts
                kits, ATF anticipates that these non-FFLs would either become FFLs to
                sell regulated frames or receivers or complete weapons (either as kits
                or fully assembled), or would take a loss in revenue to sell
                unregulated items or parts kits that do not contain a frame or receiver
                (i.e., unregulated raw materials or molds, fire control components,
                barrels, accessories, tools, jigs, or instructions), but not both. For
                more details, please refer to Chapter 3 of the Regulatory Impact
                Analysis.
                3. Gunsmithing
                 The proposed rule would result in a one-time cost for contract
                gunsmithing, estimated to be $180,849. For more details, please refer
                to Chapter 4 of the Regulatory Impact Analysis.
                [[Page 27737]]
                4. Silencers
                 The proposed rule would require silencers to be marked on any
                housing or structure, such as an outer tube or modular piece, designed
                to hold or integrate one or more essential internal components of the
                device. Currently, the regulations assume that each part defined as a
                muffler or silencer must be marked and registered.\78\ While this
                proposed change would increase the number of certain parts--firearm
                muffler or silencer frames or receivers--that need to be marked for
                modular silencers, this proposed change is not intended to require
                marking of all silencer parts so long as they are incorporated into a
                complete device by the original manufacturer or maker that is marked
                and registered. More specifically, none of the internal nonstructural
                parts of a complete muffler or silencer device would need to be marked
                so long as each frame or receiver as defined in this rule is marked.
                However, as with current regulations, silencer parts sold, shipped, or
                otherwise disposed of separately would still be considered
                ``silencers'' that require all markings prior to disposition except
                when transferred between qualified manufacturers for the production of
                new devices, and to qualified manufacturers and dealers for the repair
                of existing devices (see Section II.H.9 of the preamble).
                ---------------------------------------------------------------------------
                 \78\ See footnote 47, supra.
                ---------------------------------------------------------------------------
                 However, the proposed rule would now require some manufacturers of
                silencers to mark the outer tube rather than the endcap. ATF
                anticipates only minimal costs associated with moving the serial number
                and other identifying information from the end cap or adding the same
                information to the outer tube on certain silencers. Furthermore, there
                may be a savings for individual owners of silencers. This proposed rule
                would expressly allow for repairs on silencer devices without having to
                undergo the additional NFA transfer and registration process, so long
                as the device is returned to the sender. For more details, please refer
                to Chapter 5 of the Regulatory Impact Analysis.
                5. Privately Made Firearms
                 A firearm, including a frame or receiver, assembled or otherwise
                produced by a non-licensee without any markings by a licensee at the
                time of production or importation is defined as a ``privately made
                firearm (PMF)'' in the proposed rule. This does not include a firearm
                identified and registered in the NFRTR pursuant to chapter 53, title
                26, United States Code, or any firearm made before October 22, 1968
                (unless remanufactured after that date). Under the proposed rule, FFLs
                would be required to mark PMFs within 7 days of the firearm being
                received by a licensee, or before disposition, whichever first occurs.
                Licensees would have 60 days to mark PMFs already in inventory after a
                final rule becomes effective. FFLs would have the option to mark their
                existing PMFs themselves. Both FFLs and non-FFLs would have the option
                to contract with an FFL, such as a gunsmith, for this purpose, dispose
                of them, or send them to ATF or another law enforcement agency for
                disposal. The industry cost for this section is $563,340. For more
                details, please refer to Chapter 6 of the Regulatory Impact Analysis.
                6. Record Retention
                 Currently, licensees other than manufacturers and importers do not
                have to store their ATF Forms 4473 or A&D records beyond 20 years. This
                proposed rule would require licensed dealers and collectors to store
                their Forms 4473 or A&D records indefinitely. The industry cost for
                this section would be minimal because FFLs could drop off their
                overflow records to ATF or have ATF ship them directly. The government
                cost for this provision is $68,939 annually. For more details, please
                refer to Chapter 7 of the Regulatory Impact Analysis.
                7. ATF Form Updates
                 This proposed rule would modify existing forms and records, such as
                ATF Forms 4473, NFA forms, importation forms, the Stolen or Lost
                Firearms Reports, and A&D Records, to help ensure that if more than one
                manufacturer or serial number is identified on any firearm, those names
                or serial numbers are recorded. As paper forms run out, FFLs would be
                able to order forms as part of their normal operations. In other words,
                FFLs using paper forms requested from ATF are not anticipated to incur
                any additional cost. For FFLs maintaining transaction records
                electronically, these FFLs would also only be required to update their
                software during their next regularly scheduled update. Because software
                updates occur regularly, and costs are already incorporated for those,
                ATF does not anticipate any additional costs would be incurred for
                these changes. There is no cost associated with this section. For more
                details, please refer to Chapter 8 of the Regulatory Impact Analysis.
                8. Total Cost of the Proposed Rule
                 The total 10-year undiscounted cost of this proposed rule is
                estimated to be $1.3 million. The total 10-year discounted cost of the
                rule is $1.0 million and $1.2 million at 7 percent and 3 percent
                respectively. The annualized cost of this proposed rule would be
                $147,048 and $135,750, also at 7 percent and 3 percent, respectively.
                9. Alternatives
                 ATF considered various alternatives when preparing this proposed
                rule. For a more detailed analysis, please refer to Chapters 1 and 10
                of the Regulatory Impact Analysis.
                a. This Proposed Rule
                 ATF chose to propose promulgating new definitions of ``frame or
                receiver,'' ``privately made firearm,'' ``gunsmithing,'' and an update
                to records retention and new requirements for marking silencers,
                because they would maximize benefits.
                b. Other Considered Alternatives
                 Alternative 1--No change. While this alternative minimizes cost, it
                does not meet any of the objectives outlined in this proposed rule.
                 Alternative 2--Everytown for Gun Safety petition. ATF received a
                petition for rulemaking from Everytown for Gun Safety, a non-profit
                organization, proposing to define ``firearm frame or receiver'' in 27
                CFR 478.11. That proposed definition focused on housing the ``trigger
                group''; however, it did not define ``trigger group'' and even if it
                did, it would not address firearms that do not house trigger components
                within a single housing, or which have a remote trigger outside the
                weapon. In other words, this alternative would fall short of addressing
                all technologies or designs of firearms that are currently available,
                or may become available in the future. It also does not address
                potential changes in firearms terminology. Thus, while the alternative
                requested by that petition would reduce the cost by reducing the number
                of entities affected, it does not fully address the objectives of this
                proposed rule.
                 Alternative 3--Grandfather all existing firearms and receivers.
                This alternative would grandfather in all existing firearms that would
                not meet the serialization standard for partially complete and split
                frames or receivers. This was considered and incorporated into the
                proposed alternative, where feasible. However, in order to enforce the
                regulation, a complete grandfathering of existing firearms and
                silencers is problematic in that manufacturers could continue to
                [[Page 27738]]
                produce non-compliant firearm frames or receivers and falsely market
                them as grandfathered firearms. This could potentially pose an
                enforcement issue that may not be resolved for years if not decades.
                 Alternative 4--Require serialization of all partially complete
                firearms or split receivers. This would require all firearms purchased
                by individuals to be retroactively serialized. However, the cost would
                increase considerably and the GCA only regulates the manufacture of
                firearms by Federal firearm licensees, not the making of firearms for
                personal use by private unlicensed individuals.
                B. Executive Order 13132
                 This proposed rule will not have substantial direct effects on the
                States, the relationship between the Federal Government and the States,
                or the distribution of power and responsibilities among the various
                levels of government. This rule is not intended to supersede State
                requirements unless there is a direct and positive conflict between
                them such that they cannot be reconciled or consistently stand
                together.\79\ States can require markings on firearms for individuals.
                This rule does not require individuals to mark their personal firearms.
                Therefore, in accordance with section 6 of Executive Order 13132
                (Federalism), the Attorney General has determined that this proposed
                rule does not have sufficient federalism implications to warrant the
                preparation of a federalism summary impact statement.
                ---------------------------------------------------------------------------
                 \79\ See 18 U.S.C. 927.
                ---------------------------------------------------------------------------
                C. Executive Order 12988
                 This regulation meets the applicable standards set forth in
                sections 3(a) and 3(b)(2) of Executive Order 12988 (Civil Justice
                Reform).
                D. Regulatory Flexibility Act
                 In accordance with the Regulatory Flexibility Act (``RFA''), ATF
                prepared an Initial Regulatory Flexibility Analysis (``IRFA'') that
                examines the impacts of the proposed rule on small entities (5 U.S.C.
                601 et seq.). The IRFA is included here and as part of the RFA. The
                term ``small entities'' comprises small businesses, not-for-profit
                organizations that are independently owned and operated and are not
                dominant in their fields, and governmental jurisdictions with
                populations of fewer than 50,000 people. 5 U.S.C. 601(6).
                 Because this proposed rule affects different populations in
                different ways, the analysis for the IRFA has been broken up by
                provision. Certain provisions may have a significant impact on certain
                small entities, such as non-FFL manufactures of firearm parts kits with
                incomplete firearm frames or receivers. Based on the information from
                this analysis:
                 ATF estimates that this proposed rule could potentially
                affect 132,023 entities, including all FFLs and non-FFL manufacturers
                and retailers of firearm parts kits with incomplete firearm frames or
                receivers, but anticipates that the majority of entities affected by
                this rule would experience minimal or no additional costs.
                 Non-FFL manufacturers are anticipated to be small and
                would potentially have a significant impact on their individual
                revenue.
                 The second largest impact would be $12,828 if a
                manufacturer had to retool their existing production equipment, but ATF
                anticipates this is unlikely because this proposed rule encompasses the
                majority of existing technology. This would not affect future
                production because this work would be part of their normal operations
                in creating new firearms.
                 ATF estimates the majority of affected entities are small
                entities that would experience a range of costs; therefore, this rule
                may have a significant impact on small entities.
                 Under the RFA, we are required to consider what, if any, impact
                this rule would have on small entities. Agencies must perform a review
                to determine whether a rule will have such an impact. Because the
                agency has determined that it will, the agency has prepared an initial
                regulatory flexibility analysis as described in the RFA. Under Section
                603(b) of the RFA, the regulatory flexibility analysis must provide or
                address:
                 A description of the reasons why action by the agency is
                being considered;
                 A succinct statement of the objectives of, and legal basis
                for, the proposed rule;
                 A description of, and where feasible, an estimate of the
                number of small entities to which the proposed rule will apply;
                 A description of the projected reporting, recordkeeping
                and other compliance requirements of the proposed rule, including an
                estimate of the classes of small entities which will be subject to the
                requirement and the type of professional skills necessary for
                preparation of the report or record;
                 An identification, to the extent practicable, of all
                relevant Federal rules which may duplicate, overlap or conflict with
                the proposed rule; and
                 Descriptions of any significant alternatives to the
                proposed rule which accomplish the stated objectives of applicable
                statutes and which minimize any significant economic impact of the
                proposed rule on small entities.
                1. A Description of the Reasons Why Action by the Agency Is Being
                Considered
                 One of the reasons ATF is considering this proposed regulation is
                the failure of the market to compensate for negative externalities
                caused by commercial activity. A negative externality can be the by-
                product of a transaction between two parties that is not accounted for
                in the transaction.
                 This proposed rule would update the existing definition of frame or
                receiver to account for the majority of technological advances in the
                industry and ensure that these firearms continue to remain under the
                regulatory regime as intended by the enactment of the GCA, including
                accounting for manufacturing of firearms using multiple manufacturers.
                In light of recent court cases, the majority of regulated firearms may
                not meet the existing definition of firearm frame or receiver. This may
                result in no part of a firearm being regulated as a ``frame or
                receiver'' contrary to the requirements in the GCA that ensure tracing
                to solve crime and help prevent prohibited persons from coming into
                possession of weapons. Furthermore, finding information in support of
                criminal cases may be hindered because records are destroyed after 20
                years despite the fact that firearms may last longer than 20 years and
                be used in criminal activities.
                 This proposed rule would also account for advances in technology in
                performing transactions such as electronic storage. For more specific
                details regarding the need for regulation, please refer to the specific
                chapters pertaining to each provision of this proposed rule.
                2. A Succinct Statement of the Objectives of, and Legal Basis for, the
                Proposed Rule
                 The Attorney General is responsible for enforcing the GCA, as
                amended, and the NFA, as amended. This responsibility includes the
                authority to promulgate regulations necessary to enforce the provisions
                of the GCA and NFA. See 18 U.S.C. 926(a); 26 U.S.C. 7801(a)(2)(A); id.
                at 7805(a). Congress and the Attorney General have delegated the
                responsibility for administering and enforcing the GCA and NFA to the
                Director of ATF, subject to the direction of the Attorney General and
                the Deputy Attorney General. See
                [[Page 27739]]
                28 U.S.C. 599A(b)(1); 28 CFR 0.130(a)(1)-(2). Accordingly, the
                Department and ATF have promulgated regulations implementing both the
                GCA and the NFA. See 27 CFR parts 478, 479.
                 The proposed rule provides new regulatory definitions of ``firearm
                frame or receiver'' and ``frame or receiver'' because they are
                outdated. The proposed rule would also amend ATF's definitions of
                ``firearm'' and ``gunsmith'' to clarify the meaning of those terms, and
                to add new regulatory terms such as ``complete weapon,'' ``complete
                muffler or silencer device,'' ``privately made firearm,'' and
                ``readily'' for purposes of clarity given advancements in firearms
                technology. Further, the proposed rule would amend ATF's regulations on
                marking and recordkeeping that are necessary to implement these new or
                amended definitions.
                3. A Description of, and Where Feasible, an Estimate of the Number of
                Small Entities to Which the Proposed Rule Will Apply
                 ATF estimates that this rule could potentially affect
                132,023 entities, including all FFLs and non-FFL manufactures and
                retailers of firearm kits, but anticipates that the majority of
                entities affected by this rule would experience minimal or no
                additional costs.
                 ATF anticipates the majority of affected entities are
                small entities and would experience any range of costs; therefore this
                rule would have a significant impact on a substantial number of small
                entities.
                4. An Identification, to the Extent Practicable, of All Relevant
                Federal Rules Which May Duplicate, Overlap or Conflict With the
                Proposed Rule
                 This proposed rule does not duplicate or conflict with other
                Federal rules.
                5. Descriptions of any Significant Alternatives to the Proposed Rule
                Which Accomplish the Stated Objectives of Applicable Statutes and Which
                Minimize any Significant Economic Impact of the Proposed Rule on Small
                Entities
                 The significant alternatives considered are set forth in Section
                IV(A)(9) of this preamble. For more details, please refer to Chapters 1
                and 10 of the Regulatory Impact Analysis.
                E. Small Business Regulatory Enforcement Fairness Act of 1996
                 This proposed rule is not a major rule as defined by section 251 of
                the Small Business Regulatory Enforcement Fairness Act of 1996, 5
                U.S.C. 804.
                F. Unfunded Mandate Reform Act of 1995
                 This proposed rule will not result in the expenditure by State,
                local, and Tribal governments, in the aggregate, or by the private
                sector of $100 million or more in any one year and it will not
                significantly or uniquely affect small governments. Therefore, no
                actions were deemed necessary under the provisions of the Unfunded
                Mandates Reform Act of 1995, Public Law 104-4, 109 Stat. 48.
                G. Paperwork Reduction Act of 1995
                 This proposed rule would call for collections of information under
                the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-20). As defined in
                5 CFR 1320.3(c), ``collection of information'' comprises reporting,
                recordkeeping, monitoring, posting, labeling, and other similar
                actions. The title and description of the information collection, a
                description of those who must collect the information, and an estimate
                of the total annual burden follow. The estimate covers the time for
                reviewing instructions, searching existing sources of data, gathering
                and maintaining the data needed, and completing and reviewing the
                collection.
                 Under the provisions of this proposed rule, there would be a one-
                time increase in paperwork burdens of identification markings placed on
                firearms as well as additional transaction records. This requirement
                would be added to an existing approved collection covered by OMB
                control number 1140-0050 and 1140-0067.
                 Title: Identification Markings Placed on Firearms.
                 OMB Control Number: OMB 1140-0050.
                 Proposed Use of Information: The Bureau of Alcohol, Tobacco,
                Firearms, and Explosives would use this information in fighting crime
                by facilitating the tracing of firearms used in criminal activities.
                The systematic tracking of firearms from the manufacturer or U.S.
                importer to the retail purchaser also enables law enforcement agencies
                to identify suspects involved in criminal violations, determine if a
                firearm is stolen, and provide other information relevant to a criminal
                investigation.
                 Description and Number of Respondents: Currently there are 12,252
                licensed manufacturers of firearms and 1,343 licensed importers. Of the
                potential number of licensed dealers and licensed pawnbrokers, ATF
                estimates that those directly affected would be a one-time surge of
                5,298 licensed dealers, 710 licensed pawnbrokers, and 36 non-licensed
                dealers that would be affected. This proposed rule would affect a one-
                time surge of 6,044 respondents.
                 Frequency of Response: There will be a recurring response for all
                currently existing 13,595 licensed manufactures and licensed importers.
                This proposed rule would affect a one-time number of responses of
                12,088 responses (6,044 respondents * 2 responses).
                 Burden of Response: This includes recurring time burden of 1
                minute. ATF anticipates a one-time hourly burden of 0.25 hours per
                respondent.
                 Estimate of Total Annual Burden: The current burden listed in this
                collection of information is 85,630 hours. The new burden, as a result
                of this proposed rulemaking, is a one-time hourly burden of 3,022
                (6,044 respondents * 2 responses * 0.25 hourly burden per respondent).
                 Title: Licensed Firearms Manufactures Records of Production,
                Disposition, and Supporting Data.
                 OMB Control Number: OMB 1140-0067.
                 Proposed Use of Information: The Bureau of Alcohol, Tobacco,
                Firearms, and Explosives would use this information for criminal
                investigation or regulatory compliance with the Gun Control Act of
                1968. The Attorney General may inspect or examine the inventory and
                records of a licensed importer, licensed manufacturer, or licensed
                dealer, without such reasonable cause or warrant, and during the course
                of a criminal investigation of a person or persons other than the
                licensee in order to ensure compliance with the recordkeeping
                requirements of 18 U.S.C. 923(g)(1)(A) and (B). The Attorney General
                may also inspect or examine any records relating to firearms involved
                in a criminal investigation that is traced to the licensee, or firearms
                that may have been disposed of during the course of a bona fide
                criminal investigation.
                 Description and Number of Respondents: The current number of
                respondents is 9,056 firearm manufacturers, but this proposed rule
                would have a one-time surge for an unknown select few licensed
                manufacturers.
                 Frequency of Response: There will be a recurring response for all
                9,056 licensed manufacturers, but only a one-time surge of 6,790
                responses ((2,649 licensed dealer submissions + 710 license pawnbroker
                submissions + 36 non-licensed dealers) * 2 firearms or firearm kits) to
                licensed manufactures.
                 Burden of Response: This includes recurring time burden of 1.05
                minutes. The burden resulting from this proposed
                [[Page 27740]]
                rule is 0.25 hours per set of submittals by licensed dealers and
                licensed pawnbrokers to licensed manufacturers.
                 Estimate of Total Annual Burden: The current burden listed in this
                collection of information is 201,205 hours. The new burden, as a result
                of this proposed rulemaking, is 1,698 hours (6,790 responses * 0.25
                hours).
                 As required by the Paperwork Reduction Act of 1995 (44 U.S.C.
                3507(d)), a copy of this proposed rule will be submitted to OMB for its
                review of the collections of information.
                 We ask for public comment on the proposed collection of information
                to help us determine how useful the information is; whether it can help
                us perform our functions better; whether it is readily available
                elsewhere; how accurate our estimate of the burden of collection is;
                how valid our methods for determining burden are; how we can improve
                the quality, usefulness, and clarity of the information; and how we can
                minimize the burden of collection.
                 You need not respond to a collection of information unless it
                displays a currently valid control number from OMB. Before the
                requirements for this collection of information becomes effective, we
                will publish a notice in the Federal Register and request additional
                comments regarding the collection of information prior to OMB's
                decision to approve, modify, or disapprove the proposed collection.
                IV. Public Participation
                A. Comments Sought
                 ATF requests comments on the proposed rule from all interested
                persons. ATF specifically requests comments on the feasibility of
                implementing the new definition of firearm ``frame or receiver'' in 27
                CFR 478.11 and 27 CFR 479.11, and related definitions and amendments
                that ensure the proper marking, recordkeeping, and traceability of all
                firearms manufactured, imported, acquired and disposed by Federal
                firearms licensees. ATF also requests comments on the costs or benefits
                of the proposed rule and on the appropriate methodology and data for
                calculating those costs and benefits.
                 All comments must reference this document's docket number ATF
                2021R-05, be legible, and include the commenter's complete first and
                last name and full mailing address. ATF may not consider, or respond
                to, comments that do not meet these requirements or comments containing
                profanity. ATF will retain all comments as part of this rulemakings
                administrative record. ATF will treat all comments as originals and
                will not acknowledge receipt of comments. In addition, if ATF cannot
                read your comment due to technical difficulties and cannot contact you
                for clarification, ATF may not be able to consider your comment.
                 ATF will carefully consider all comments, as appropriate, received
                on or before the closing date, and will give comments after that date
                the same consideration if practical to do so, but assurance of
                consideration cannot be given except as to comments received on or
                before the closing date.
                B. Confidentiality
                 ATF will make all comments meeting the requirements of this
                section, whether submitted electronically or on paper, available for
                public viewing at ATF and on the internet through the Federal
                eRulemaking Portal, and subject to the Freedom of Information Act (5
                U.S.C. 552). Commenters who do not want their name or other personal
                identifying information posted on the internet should submit comments
                by mail or facsimile, along with a separate cover sheet containing
                their personal identifying information. Both the cover sheet and
                comment must reference this docket number (2021R-05). For comments
                submitted by mail or facsimile, information contained on the cover
                sheet will not appear when posted on the internet but any personal
                identifying information that appears within a comment will not be
                redacted by ATF and it will appear on the internet.
                 A commenter may submit to ATF information identified as proprietary
                or confidential business information. The commenter shall place any
                portion of a comment that is proprietary or confidential business
                information under law on pages separate from the balance of the comment
                with each page prominently marked ``PROPRIETARY OR CONFIDENTIAL
                BUSINESS INFORMATION'' at the top of the page.
                 ATF will not make proprietary or confidential business information
                submitted in compliance with these instructions available when
                disclosing the comments that it received, but will disclose that the
                commenter provided proprietary or confidential business information
                that ATF is holding in a separate file to which the public does not
                have access. If ATF receives a request to examine or copy this
                information, it will treat it as any other request under the Freedom of
                Information Act (5 U.S.C. 552). In addition, ATF will disclose such
                proprietary or confidential business information to the extent required
                by other legal process.
                C. Submitting Comments
                 Submit comments in any of three ways (but do not submit the same
                comment multiple times or by more than one method). Hand-delivered
                comments will not be accepted.
                 Federal eRulemaking Portal: ATF recommends that you submit
                your comments to ATF via the Federal eRulemaking portal at
                www.regulations.gov and follow the instructions. Comments will be
                posted within a few days of being submitted. However, if large volumes
                of comments are being processed simultaneously, your comment may not be
                viewable for up to several weeks. Please keep the comment tracking
                number that is provided after you have successfully uploaded your
                comment.
                 Mail: Send written comments to the address listed in the
                ADDRESSES section of this document. Written comments must appear in
                minimum 12-point font size (.17 inches), include the commenter's first
                and last name and full mailing address, be signed, and may be of any
                length.
                 Facsimile: Submit comments by facsimile transmission to
                (202) 648-9741. Faxed comments must:
                 1. Be legible and appear in minimum 12 point font size (.17
                inches);
                 2. Be 8\1/2\'' x 11'' paper;
                 3. Be signed and contain the commenter's complete first and last
                name and full mailing address; and
                 4. Be no more than five pages long.
                D. Request for Hearing
                 Any interested person who desires an opportunity to comment orally
                at a public hearing should submit his or her request, in writing, to
                the Director of ATF within the 90-day comment period. The Director,
                however, reserves the right to determine, in light of all
                circumstances, whether a public hearing is necessary.
                Disclosure
                 Copies of this proposed rule and the comments received in response
                to it will be available through the Federal eRulemaking portal, at
                www.regulations.gov (search for ATF 2021R-05), and for public
                inspection by appointment during normal business hours at: ATF Reading
                Room, Room 1E-063, 99 New York Ave. NE, Washington, DC 20226;
                telephone: (202) 648-8740.
                List of Subjects
                27 CFR Part 447
                 Administrative practice and procedure, Arms control, Arms and
                [[Page 27741]]
                munitions, Authority delegation, Chemicals, Customs duties and
                inspection, Imports, Penalties, Reporting and recordkeeping
                requirements, Scientific equipment, Seizures and forfeitures.
                27 CFR Part 478
                 Administrative practice and procedure, Arms and munitions, Exports,
                Freight, Imports, Intergovernmental relations, Law enforcement
                officers, Military personnel, Penalties, Reporting and recordkeeping
                requirements, Research, Seizures and forfeitures, Transportation.
                27 CFR Part 479
                 Administrative practice and procedure, Arms and munitions, Excise
                taxes, Exports, Imports, Military personnel, Penalties, Reporting and
                recordkeeping requirements, Seizures and forfeitures, Transportation.
                Authority and Issuance
                 For the reasons discussed in the preamble, 27 CFR parts 447, 478,
                and 479 are proposed to be amended as follows:
                PART 447--IMPORTATION OF ARMS, AMMUNITION AND IMPLEMENTS OF WAR
                0
                1. The authority citation for 27 CFR part 447 continues to read as
                follows:
                 Authority: 22 U.S.C. 2778; Exec. Order 13637, 78 FR 16129 (Mar.
                8, 2013).
                Sec. 447.42 [Amended]
                0
                2. Amend Sec. 447.42 as follows:
                0
                a. In paragraph (a)(1)(ii), remove the word ``country'' and add in its
                place the term ``country or countries'';
                0
                b. In paragraph (a)(1)(iv)(A), remove ``manufacturer'' and add in its
                place ``manufacturer(s) of the firearm or privately made firearm (if
                privately made in the United States)''; and
                0
                c. In paragraph (a)(1)(iv)(G), remove ``serial number'' and add in its
                place ``serial number(s)''.
                Sec. 447.45 [Amended]
                0
                3. Amend Sec. 447.45 as follows:
                0
                a. In paragraph (a)(2)(ii), remove ``manufacturer of the defense
                article'' and add in its place ``manufacturer(s) of the defense article
                or privately made firearm (if privately made in the United States)'';
                0
                b. In paragraph (a)(2)(iii), remove the word ``country'' and add in its
                place the term ``country or countries''; and
                0
                c. In paragraph (a)(2)(vii), remove ``serial number'' and add in its
                place ``serial number(s)''.
                PART 478--COMMERCE IN FIREARMS AND AMMUNITION
                0
                4. The authority citation for 27 CFR part 478 continues to read as
                follows:
                 Authority: 5 U.S.C. 552(a); 18 U.S.C. 921-931; 44 U.S.C.
                3504(h).
                0
                5. In Sec. 478.11:
                0
                a. Add, in alphabetical order, definitions for ``Complete muffler or
                silencer device'' and ``Complete weapon'';
                0
                b. Revise the definition of ``Engaged in the business'' paragraph (d)
                ``Gunsmith'' and the definition of ``Firearm'';
                0
                c. Remove the definition of ``Firearm frame or receiver''; and
                0
                d. Add, in alphabetical order, definitions for ``Frame or receiver'',
                ``Importer or manufacturer's serial number'', ``Privately made firearm
                (PMF)'', and ``Readily''.
                 The additions and revisions read as follows:
                Sec. 478.11 Meaning of terms.
                * * * * *
                 Complete muffler or silencer device. A firearm muffler or firearm
                silencer that contains all component parts necessary to function as
                designed whether or not assembled or operable.
                 Complete weapon. A firearm other than a firearm muffler or firearm
                silencer that contains all component parts necessary to function as
                designed whether or not assembled or operable.
                * * * * *
                 Engaged in the business-- * * *
                 (d) Gunsmith. A person who, as a service performed on existing
                firearms not for sale or distribution by a licensee, devotes time,
                attention, and labor to repairing or customizing firearms, making or
                fitting special barrels, stocks, or trigger mechanisms to firearms, or
                identifying firearms in accordance with this chapter, as a regular
                course of trade or business with the principal objective of livelihood
                or profit, but such term shall not include a person who occasionally
                repairs or customizes firearms, or occasionally makes or fits special
                barrels, stocks, or trigger mechanisms to firearms;
                * * * * *
                 Firearm. Any weapon, including a starter gun, which will or is
                designed to or may readily be converted to expel a projectile by the
                action of an explosive; the frame or receiver of any such weapon; any
                firearm muffler or firearm silencer; or any destructive device; but the
                term shall not include an antique firearm. In the case of a licensed
                collector, the term shall mean only curios and relics. The term shall
                include a weapon parts kit that is designed to or may readily be
                assembled, completed, converted, or restored to expel a projectile by
                the action of an explosive. The term shall not include a weapon,
                including a weapon parts kit, in which each part defined as a frame or
                receiver of such weapon is destroyed.
                * * * * *
                 Frame or receiver. A part of a firearm that, when the complete
                weapon is assembled, is visible from the exterior and provides housing
                or a structure designed to hold or integrate one or more fire control
                components, even if pins or other attachments are required to connect
                those components to the housing or structure. Any such part identified
                with a serial number shall be presumed, absent an official
                determination by the Director or other reliable evidence to the
                contrary, to be a frame or receiver. For purposes of this definition,
                the term ``fire control component'' means a component necessary for the
                firearm to initiate, complete, or continue the firing sequence,
                including any of the following: Hammer, bolt, bolt carrier,
                breechblock, cylinder, trigger mechanism, firing pin, striker, or slide
                rails. The following are nonexclusive examples that illustrate this
                definition:
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                [[Page 27742]]
                [GRAPHIC] [TIFF OMITTED] TP21MY21.000
                BILLING CODE 4410-FY-C
                [[Page 27743]]
                 (a) Firearm muffler or silencer frame or receiver. The term ``frame
                or receiver'' shall mean, in the case of a firearm muffler or firearm
                silencer, a part of the firearm that, when the complete device is
                assembled, is visible from the exterior and provides housing or a
                structure, such as an outer tube or modular piece, designed to hold or
                integrate one or more essential internal components of the device,
                including any of the following: Baffles, baffling material, or
                expansion chamber.
                 (b) Split or modular frame or receiver. (1) In the case of a
                firearm with more than one part that provides housing or a structure
                designed to hold or integrate one or more fire control or essential
                internal components (e.g., a split frame with upper assembly and lower
                assembly as in many semiautomatic rifles, upper slide assembly and
                lower grip module as in many semiautomatic handguns, or multiple
                silencer modular pieces), the Director may determine whether a specific
                part or parts of a weapon is the frame or receiver, which may include
                an internal frame or chassis at least partially exposed to the exterior
                to allow identification. In making this determination, the Director
                will consider the following factors, with no single factor being
                controlling:
                 (i) Which component the manufacturer intended to be the frame or
                receiver;
                 (ii) Which component the firearms industry commonly considers to be
                the frame or receiver with respect to the same or similar firearms;
                 (iii) How the component fits within the overall design of the
                firearm when assembled;
                 (iv) The design and function of the fire control components to be
                housed or integrated;
                 (v) Whether the component may permanently, conspicuously, and
                legibly be identified with a serial number and other markings in a
                manner not susceptible of being readily obliterated, altered, or
                removed;
                 (vi) Whether classifying the particular component is consistent
                with the legislative intent of the Act and this part; and
                 (vii) Whether classifying the component as the frame or receiver is
                consistent with ATF's prior classifications.
                 (2) Frames or receivers of different weapons that are combined to
                create a similar weapon each retain their respective classifications as
                frames or receivers provided they retain their original design and
                configuration.
                 (3) The Director has previously determined that a specific part is
                the frame or receiver with respect to certain weapons with split or
                modular frames or receivers. The following is a nonexclusive list of
                such weapons and the specific part identified as the frame or receiver
                as they existed on [date of publication of the final rule]:
                 (i) Colt 1911-type, Beretta/Browning/FN Herstal/Heckler & Koch/
                Ruger/Sig Sauer/Smith & Wesson/Taurus hammer fired semiautomatic
                pistols: The lower portion of the pistol, or grip, that provides
                housing for the trigger mechanism and hammer, and a structure designed
                to integrate the slide rails.
                BILLING CODE 4410-FY-P
                [[Page 27744]]
                [GRAPHIC] [TIFF OMITTED] TP21MY21.001
                [[Page 27745]]
                [GRAPHIC] [TIFF OMITTED] TP21MY21.002
                [[Page 27746]]
                [GRAPHIC] [TIFF OMITTED] TP21MY21.003
                BILLING CODE 4410-FY-C
                 (c) Partially complete, disassembled, or inoperable frame or
                receiver. The term ``frame or receiver'' shall include, in the case of
                a frame or receiver that is partially complete, disassembled, or
                inoperable, a frame or receiver that has reached a stage in manufacture
                where it may readily be completed, assembled, converted, or restored to
                a functional state. In determining whether a partially complete,
                disassembled, or inoperable frame or receiver may readily be assembled,
                completed, converted, or restored to a functional state, the Director
                may consider any available instructions, guides, templates, jigs,
                equipment, tools, or marketing materials. For purposes of this
                definition, the term ``partially complete,'' as it modifies ``frame or
                receiver,'' means a forging, casting, printing, extrusion, machined
                body or similar article that has reached a stage in manufacture where
                it is clearly identifiable as an unfinished component part of a weapon.
                 (d) Destroyed frame or receiver. The term ``frame or receiver''
                shall not include a frame or receiver that is destroyed. For purposes
                of this definition, the term ``destroyed'' means that the frame or
                receiver has been permanently altered not to provide housing or a
                structure that may hold or integrate any fire control or essential
                internal component, and may not readily be assembled, completed,
                converted, or restored to a functional state. Acceptable methods of
                destruction include completely melting, crushing, or shredding the
                frame or receiver, or by completely severing at least three critical
                areas of the frame or receiver using a cutting torch having a tip of
                sufficient size to displace at least \1/4\ inch of material at each
                location.
                * * * * *
                 Importer's or manufacturer's serial number. The identification
                number, licensee name, licensee city or state, or license number placed
                by a licensee on a firearm frame or receiver in accordance with this
                part. The term shall include any such identification on a privately
                made firearm, or an ATF issued serial number. When used in this part,
                the term ``serial number'' shall mean the ``importer's or
                manufacturer's serial number.''
                * * * * *
                 Privately made firearm (PMF). A firearm, including a frame or
                receiver, assembled or otherwise produced by a person other than a
                licensed manufacturer, and without a serial number or other identifying
                markings
                [[Page 27747]]
                placed by a licensed manufacturer at the time the firearm was produced.
                The term shall not include a firearm identified and registered in the
                National Firearms Registration and Transfer Record pursuant to chapter
                53, title 26, United States Code, or any firearm made before October
                22, 1968 (unless remanufactured after that date).
                * * * * *
                 Readily. A process that is fairly or reasonably efficient, quick,
                and easy, but not necessarily the most efficient, speedy, or easy
                process. Factors relevant in making this determination, with no single
                one controlling, include the following:
                 (a) Time, i.e., how long it takes to finish the process;
                 (b) Ease, i.e., how difficult it is to do so;
                 (c) Expertise, i.e., what knowledge and skills are required;
                 (d) Equipment, i.e., what tools are required;
                 (e) Availability, i.e., whether additional parts are required, and
                how easily they can be obtained;
                 (f) Expense, i.e., how much it costs;
                 (g) Scope, i.e., the extent to which the subject of the process
                must be changed to finish it; and
                 (h) Feasibility, i.e., whether the process would damage or destroy
                the subject of the process, or cause it to malfunction.
                * * * * *
                Sec. 478.50 [Amended]
                0
                6. In Sec. 478.50(a), add the phrase ``or as otherwise provided in
                Sec. 478.129'' after ``at the licensed premises served by such
                warehouse''.
                0
                7. Revise Sec. 478.92 to read as follows:
                Sec. 478.92 Identification of firearms and armor piercing ammunition.
                 (a)(1) Firearms manufactured or imported by licensees. Licensed
                manufacturers and licensed importers of firearms must legibly identify
                each firearm they manufacture or import as follows:
                 (i) Serial number, name, place of business. By engraving, casting,
                stamping (impressing), or otherwise conspicuously placing or causing to
                be engraved, cast, stamped (impressed) or otherwise placed on each part
                (or specific part(s) previously determined by the Director) defined as
                a frame or receiver thereof, a serial number, in a manner not
                susceptible of being readily obliterated, altered, or removed. The
                serial number identified on each part of a weapon defined as a frame or
                receiver must be the same number, but must not duplicate any serial
                number(s) placed by the licensee on any other firearm. Except as
                provided in paragraph (a)(4)(v) of this section, each frame or receiver
                thereof must also be marked with either: Their name (or recognized
                abbreviation), and city and State (or recognized abbreviation) where
                they maintain their place of business; or their name (or recognized
                abbreviation) and abbreviated Federal firearms license number as a
                prefix, which is the first three and last five digits, followed by a
                hyphen, and then followed by a number as a suffix, e.g., ``12345678-
                [number]''; and
                 (ii) Model, caliber or gauge, foreign manufacturer, country of
                manufacture. By engraving, casting, stamping (impressing), or otherwise
                conspicuously placing or causing to be engraved, cast, stamped
                (impressed) or placed on each part (or specific part(s) previously
                determined by the Director) defined as a frame or receiver, or barrel
                or pistol slide (if applicable) thereof certain additional information.
                This information must be placed in a manner not susceptible of being
                readily obliterated, altered, or removed. Except as provided in
                paragraph (a)(4)(v) of this section, the additional information shall
                include:
                 (A) The model, if such designation has been made;
                 (B) The caliber or gauge;
                 (C) When applicable, the name of the foreign manufacturer; and
                 (D) In the case of an imported firearm, the name of the country in
                which it was manufactured. For additional requirements relating to
                imported firearms, see Customs regulations at 19 CFR part 134.
                 (iii) Frame or receiver, machinegun conversion part, or muffler or
                silencer part disposed of separately. Except as provided in paragraph
                (a)(4)(iv) of this section, each part defined as a frame or receiver,
                machinegun, or firearm muffler or firearm silencer that is not a
                component part of a complete weapon or device at the time it is sold,
                shipped, or otherwise disposed of by the licensee must be identified as
                required by this section with a serial number not duplicated on any
                other firearm and all additional identifying information, except that
                the model designation and caliber or gauge may be omitted if that
                information is unknown at the time the part is identified.
                 (iv) Size and depth of markings. The engraving, casting, or
                stamping (impressing) of the serial number and additional information
                must be to a minimum depth of .003 inch and in a print size no smaller
                than \1/16\ inch. The size of serial numbers required by this section
                is measured as the distance between the latitudinal ends of the
                character impression bottoms (bases). The depth of all markings
                required by this section is measured from the flat surface of the metal
                and not the peaks or ridges.
                 (v) Period of time to identify firearms. Licensed manufacturers
                must identify a complete weapon or complete muffler or silencer device
                no later than seven days following the date of completion of the active
                manufacturing process for the weapon or device, or prior to
                disposition, whichever is sooner. Except as provided in paragraph
                (a)(4)(iv) of this section, licensed manufacturers must identify each
                part, including a replacement part, defined as a frame or receiver,
                machinegun, or firearm muffler or firearm silencer that is not a
                component part of a complete weapon or device at the time it is sold,
                shipped, or otherwise disposed of no later than seven days following
                the date of completion of the active manufacturing process for the
                part, or prior to disposition, whichever is sooner. For purposes of
                this paragraph, firearms actively awaiting materials, parts, or
                equipment repair to be completed are actively in the manufacturing
                process. Licensed importers must identify imported firearms within the
                period prescribed in Sec. 478.112.
                 (2) Privately made firearms. Unless previously identified by
                another licensee in accordance with this section, and except as
                provided in paragraph (a)(4)(vi) of this section, licensees must
                legibly and conspicuously identify each privately made firearm within
                seven days following the date of receipt or other acquisition
                (including from a personal collection), or before the date of
                disposition (including to a personal collection), whichever is sooner.
                PMFs must be identified by placing on each part (or specific part(s)
                previously determined by the Director) of a weapon defined as a frame
                or receiver, the same serial number, but must not duplicate any serial
                number(s) placed by the licensee on any other firearm. The serial
                number(s) must begin with the licensee's abbreviated Federal firearms
                license number as a prefix, which is the first three and last five
                digits, followed by a hyphen, and then followed by a number as a
                suffix, e.g., ``12345678-[number]''. The serial number(s) must be
                placed in a manner otherwise in accordance with this section, including
                the requirements that the serial number(s) be at the minimum size and
                depth, and not susceptible of being readily obliterated, altered, or
                removed.
                 (3) Meaning of marking terms. For purposes of this section, the
                terms ``legible'' and ``legibly'' mean that the identification markings
                use exclusively
                [[Page 27748]]
                Roman letters (e.g., A, a, B, b, C, c) and Arabic numerals (e.g., 1, 2,
                3), or solely Arabic numerals, and may include a hyphen, and the terms
                ``conspicuous'' and ``conspicuously'' mean that the identification
                markings are capable of being easily seen with normal handling of the
                firearm and unobstructed by other markings when the complete weapon is
                assembled.
                 (4) Exceptions--(i) Alternate means or period of identification.
                The Director may authorize other means of identification or period of
                time to identify firearms upon receipt of a letter application or Form
                3311.4 from the licensee showing that such other identification or
                period is reasonable and will not hinder the effective administration
                of this part.
                 (ii) Destructive devices. In the case of a destructive device, the
                Director may authorize other means of identification or period of time
                to identify that weapon upon receipt of a letter application or Form
                3311.4 from the licensee. The application shall show that engraving,
                casting, or stamping (impressing) such a weapon as required by this
                section would be dangerous or impracticable, or that the requested
                period is reasonable and will not hinder the effective administration
                of this part.
                 (iii) Adoption of identifying markings. Licensed manufacturers and
                licensed importers may adopt the serial number(s) or other identifying
                markings previously placed on a firearm in accordance with this section
                provided that, within the period and in the manner herein prescribed,
                the licensee legibly and conspicuously places, or causes to be placed,
                on each part (or specific part(s) previously determined by the
                Director) defined as a frame or receiver either: Their name (or
                recognized abbreviation), and city and State (or recognized
                abbreviation) where they maintain their place of business; or their
                name (or recognized abbreviation) and abbreviated Federal firearms
                license number, which is the first three and last five digits, followed
                by a hyphen, and then followed by the existing serial number (including
                any other abbreviated FFL prefix) as a suffix, e.g., ``12345678-[serial
                number]''.
                 (iv) Firearm muffler or silencer parts--(A) Firearm muffler or
                silencer parts transferred between qualified manufacturers to complete
                new devices. A licensed manufacturer qualified under part 479 may
                transfer a part defined as a firearm muffler or firearm silencer to
                another qualified manufacturer without immediately identifying or
                registering such part provided that, upon receipt, it is actively used
                to manufacture a complete muffler or silencer device. Once the new
                device with such part is completed, the manufacturer of the device
                shall identify and register it in the manner and within the period
                specified in this part for a complete muffler or silencer device.
                 (B) Firearm muffler or silencer replacement parts transferred to
                qualified manufacturers or dealers to repair existing devices. A
                licensed manufacturer qualified under part 479 may transfer a
                replacement part defined as a firearm muffler or firearm silencer other
                than a frame or receiver to a qualified manufacturer or dealer without
                identifying or registering such part provided that, upon receipt, it is
                actively used to repair a complete muffler or silencer device that was
                previously identified and registered in accordance with this part.
                 (v) Firearms designed and configured before [EFFECTIVE DATE OF THE
                FINAL RULE]. Licensed manufacturers and licensed importers may continue
                to identify firearms (other than PMFs) of the same design and
                configuration as they existed before [EFFECTIVE DATE OF THE FINAL RULE]
                with the information required to be marked by paragraphs (a)(1)(i) and
                (ii) of this section that were in effect prior to that date, and any
                rules necessary to ensure such identification shall remain effective
                for that purpose.
                 (vi) Privately made firearms acquired before [EFFECTIVE DATE OF THE
                FINAL RULE]. Licensees shall identify in the manner prescribed by this
                section, or cause another licensee to so identify, each privately made
                firearm received or otherwise acquired (including from a personal
                collection) by the licensee before [EFFECTIVE DATE OF THE FINAL RULE]
                within sixty (60) days from that date, or prior to the date of final
                disposition (including to a personal collection), whichever is sooner.
                 (b) Armor piercing ammunition. (1) Marking of ammunition. Each
                licensed manufacturer or licensed importer of armor piercing ammunition
                shall identify such ammunition by means of painting, staining or dying
                the exterior of the projectile with an opaque black coloring. This
                coloring must completely cover the point of the projectile and at least
                50 percent of that portion of the projectile which is visible when the
                projectile is loaded into a cartridge case.
                 (2) Labeling of packages. Each licensed manufacturer or licensed
                importer of armor piercing ammunition shall clearly and conspicuously
                label each package in which armor piercing ammunition is contained,
                e.g., each box, carton, case, or other container. The label shall
                include the words ``ARMOR PIERCING'' in block letters at least \1/4\
                inch in height. The lettering shall be located on the exterior surface
                of the package which contains information concerning the caliber or
                gauge of the ammunition. There shall also be placed on the same surface
                of the package in block lettering at least \1/8\ inch in height the
                words ``FOR GOVERNMENTAL ENTITIES OR EXPORTATION ONLY.'' The statements
                required by this subparagraph shall be on a contrasting background.
                 (c) Voluntary classification of firearms and armor piercing
                ammunition. The Director may issue a determination to a person whether
                an item is a firearm or armor piercing ammunition as defined in this
                part upon receipt of a written request or form prescribed by the
                Director. Each such voluntary request or form submitted shall be
                executed under the penalties of perjury with a complete and accurate
                description of the item, the name and address of the manufacturer or
                importer thereof, and a sample of such item for examination along with
                any instructions, guides, templates, jigs, equipment, tools, or
                marketing materials that are made available to the purchaser or
                recipient of the item. The Director shall not issue a determination
                regarding a firearm accessory or attachment unless it is installed on
                the firearm(s) in the configuration for which it is designed and
                intended to be used. Upon completion of the examination, the Director
                may return the sample to the person who made the request unless a
                determination is made that return of the sample would be or place the
                person in violation of law. A determination made by the Director under
                this paragraph shall not be deemed by any person to be applicable to or
                authoritative with respect to any other sample, design, model, or
                configuration.
                Sec. 478.112 [Amended]
                0
                8. Amend Sec. 478.112 as follows:
                0
                a. In paragraph (b)(1)(iv)(A), remove ``manufacturer'' and add in its
                place ``manufacturer(s) of the firearm or privately made firearm (if
                privately made in the United States)''; and
                0
                b. In paragraph (b)(1)(iv)(G), remove ``serial number'' and add in its
                place ``serial number(s)''.
                Sec. 478.113 [Amended]
                0
                9. Amend Sec. 478.113 as follows:
                0
                a. In paragraph (b)(1)(iv)(A), remove the word ``manufacturer'' and add
                in its place ``manufacturer(s) of the firearm or privately made firearm
                (if privately made in the United States)'';
                0
                b. In paragraph (b)(1)(iv)(G), remove the words ``serial number'' and
                add in
                [[Page 27749]]
                their place the words ``serial number(s)'';
                0
                c. In paragraph (c)(2)(ii), remove the word ``manufacturer'' and add in
                its place the word ``manufacturer(s)'';
                0
                d. In paragraph (c)(2)(iii), remove ``country of manufacturer'' and add
                in its place ``country or countries of manufacturer(s) of the firearm
                or privately made firearm (if privately made in the United States)'';
                and
                0
                e. In paragraph (c)(2)(vii), remove the words ``serial number'' and add
                in their place ``serial number(s)''.
                Sec. 478.114 [Amended]
                0
                10. Amend Sec. 478.114 as follows:
                0
                a. In paragraph (a)(1)(v)(A), remove the word ``manufacturer'' and add
                in its place ``manufacturer(s) of the firearm or privately made firearm
                (if privately made in the United States)'';
                0
                b. In paragraph (a)(1)(v)(G), remove the words ``serial number'' and
                add in their place ``serial number(s)''; and
                0
                c. In paragraph (b)(2)(ii), add ``or privately made firearm (if
                privately made in the United States)'' after ``ammunition''.
                0
                11. Revise Sec. 478.122 to read as follows:
                Sec. 478.122 Records maintained by importers.
                 (a) Each licensed importer shall record the name of the
                importer(s), manufacturer(s) and/or privately made firearm (if
                privately made in the United States), type, model, caliber or gauge,
                country or countries of manufacture (if imported), and serial number(s)
                of each firearm imported or otherwise acquired (including a frame or
                receiver to be disposed of separately), the date of such importation or
                other acquisition, and if otherwise acquired, the name and address, or
                the name and license number of the person from whom it was received.
                The information required by this paragraph shall be recorded not later
                than 15 days following the date of importation or other acquisition in
                a format with the applicable columns set forth in paragraph (b) of this
                section.
                 (b) A record of each firearm disposed of by an importer and a
                separate record of armor piercing ammunition dispositions to
                governmental entities, for exportation, or for testing or
                experimentation authorized under the provision of Sec. 478.149, shall
                be maintained by the licensed importer on the licensed premises. The
                record shall show the date of such sale or other disposition, and the
                name and license number of the licensee to whom the firearm was
                transferred, or if disposed to a nonlicensee, the name and address of
                the person, or the serial number of the firearms transaction record,
                Form 4473, if the licensee transferring the firearm serially numbers
                the Forms 4473 and files them numerically. The information required by
                this paragraph shall be entered in the proper record book not later
                than the seventh day following the date of the transaction. In the
                event the licensee records a duplicate entry with the same firearm and
                acquisition information, whether to close out an old record book or for
                any other reason, the licensee shall record a reference to the date and
                location of the subsequent entry (e.g., date of new entry, book name/
                number, page number, and line number) as the disposition. Such
                information shall be recorded in a format containing the applicable
                columns below, except that for armor piercing ammunition, the
                information and format shall also include the quantity of projectiles:
                 Importer's or Manufacturer's Firearms Acquisition and Disposition Record
                ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                 Description of firearm Import/manufacture/acquisition Disposition
                ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                 Address of
                 Name and address of nonlicensee;
                Importer(s), manufacturer(s), and/ Caliber or Country or countries Serial Date of import, nonlicensee; or if Date of license No. of
                 or PMF (if privately made in the Type Model gauge of manufacture (if number(s) manufacture, or licensee, name and disposition Name licensee; or Form
                 U.S.) imported) acquisition license No. (if 4473 Serial No. if
                 acquired) filed numerically
                ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                
                ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                 Importer's or Manufacturer's Armor Piercing Ammunition Disposition Record
                ----------------------------------------------------------------------------------------------------------------
                 Caliber or Quantity of Purchaser--name and
                 Date of disposition Manufacturer gauge projectiles address
                ----------------------------------------------------------------------------------------------------------------
                
                ----------------------------------------------------------------------------------------------------------------
                 (c) The Director may authorize alternate records to be maintained
                by a licensed importer to record the acquisition and disposition of
                firearms and armor piercing ammunition when it is shown by the licensed
                importer that such alternate records will accurately and readily
                disclose the information required by this section. A licensed importer
                who proposes to use alternate records shall submit a letter application
                to the Director and shall describe the proposed alternate records and
                the need therefor. Such alternate records shall not be employed by the
                licensed importer until approval in such regard is received from the
                Director.
                0
                12. Revise Sec. 478.123 to read as follows:
                Sec. 478.123 Records maintained by manufacturers.
                 (a) Each licensed manufacturer shall record the name of the
                manufacturer(s), importer(s) (if any) and/or privately made firearm (if
                privately made in the United States), type, model, caliber or gauge,
                and serial number(s) of each firearm manufactured or otherwise acquired
                (including a frame or receiver to be disposed of separately), the date
                of such manufacture or other acquisition, and if otherwise acquired,
                the name and address or the name and license number of the person from
                whom it was received. The information required by this paragraph shall
                be recorded not later than the close of the next business day following
                the date of such manufacture or other acquisition, except that, when a
                commercial record is held by the licensed manufacturer separately from
                other commercial documents and readily available for inspection,
                containing all acquisition information required for the record, the
                period for making the required entry into the record may be delayed not
                to exceed the seventh day following the date of receipt. The
                information required by this paragraph shall be recorded in a format
                containing the applicable columns prescribed by Sec. 478.122.
                [[Page 27750]]
                 (b) A record of each firearm disposed of by a manufacturer and a
                separate record of armor piercing ammunition dispositions to
                governmental entities, for exportation, or for testing or
                experimentation authorized under the provision of Sec. 478.149, shall
                be maintained by the licensed manufacturer on the licensed premises.
                The record shall show the date of such sale or other disposition, and
                the name and license number of the licensee to whom the firearms were
                transferred, or if disposed to a nonlicensee, the name and address of
                the person, or the serial number of the firearms transaction record,
                Form 4473, if the licensee transferring the firearm serially numbers
                the Forms 4473 and files them numerically. The information required by
                this paragraph shall be entered in the proper record book not later
                than the seventh day following the date of the transaction. In the
                event the licensee records a duplicate entry with the same firearm and
                acquisition information, whether to close out an old record book or for
                any other reason, the licensee shall record a reference to the date and
                location of the subsequent entry (e.g., date of new entry, book name/
                number, page number, and line number) as the disposition. Such
                information shall be recorded in a format containing the applicable
                columns prescribed by Sec. 478.122, except that for armor piercing
                ammunition, the information and format shall also include the quantity
                of projectiles.
                 (c) The Director may authorize alternate records to be maintained
                by a licensed manufacturer to record the acquisition or disposition of
                firearms and armor piercing ammunition when it is shown by the licensed
                manufacturer that such alternate records will accurately and readily
                disclose the information required by this section. A licensed
                manufacturer who proposes to use alternate records shall submit a
                letter application to the Director and shall describe the proposed
                alternate record and the need therefor. Such alternate records shall
                not be employed by the licensed manufacturer until approval in such
                regard is received from the Director.
                Sec. 478.124 [Amended]
                0
                13. Amend Sec. 478.124 as follows:
                0
                a. In paragraph (c)(4), remove ``manufacturer'' and add in its place
                ``manufacturer(s)'', remove the words ``importer (if any)'' and add in
                their place ``importer(s) (if any) of the firearm or privately made
                firearm (if privately made in the United States)'', and remove the
                words ``serial number'' and add in their place ``serial number(s)'';
                and
                0
                b. In the fourth sentence of paragraph (f), remove ``Upon receipt of
                such Forms 4473, the'' and add in its place ``The'', remove
                ``manufacturer'' and add in its place ``manufacturer(s)'', remove the
                words ``importer (if any)'' and add in their place ``importer(s) (if
                any) of the firearm or privately made firearm (if privately made in the
                United States)'', and remove the words ``serial number'' and add in
                their place ``serial number(s)''.
                0
                14. Amend Sec. 478.125 as follows:
                0
                a. In paragraph (e):
                0
                i. Remove ``manufacturer'' and add in its place ``manufacturer(s)'',
                remove the words ``importer (if any)'' and add in their place
                ``importer(s) (if any) of the firearm or privately made firearm (if
                privately made in the United States)'', remove the words ``serial
                number'', wherever they appear, and add in their place ``serial
                number(s)'', and remove ``as provided in paragraph (g)'' and add in its
                place ``as provided in paragraphs (g) and (i)'';
                0
                ii. Add a sentence after the sixth sentence; and
                0
                iii. In the table Firearms Acquisition and Disposition Record remove
                ``Name and address or name and license No.'' and add in its place
                ``Name and address of nonlicensee; or if licensee, name and License
                No.'', and remove ``Address or License No. if licensee, or Form 4473
                Serial No. if Forms 4473 filed numerically'' and add in its place
                ``Address of nonlicensee; License No. of licensee; or Form 4473 Serial
                No. if such forms filed numerically'';
                0
                b. In paragraph (f)(1):
                0
                i. Remove ``manufacturer'' and add in its place ``manufacturer(s)'',
                remove the words ``importer (if any)'' and add in their place
                ``importer(s) (if any) of the firearm or privately made firearm (if
                privately made in the United States)'', remove the words ``serial
                number'' and add in their place ``serial number(s)''; and
                0
                ii. Add a sentence after the fifth sentence;
                0
                c. In paragraph (f)(2) table Firearms Collectors Acquisition and
                Disposition Record, remove ``Manufacturer'' and add in its place
                ``Manufacturer(s)'', remove the words ``importer (if any)'' and add in
                their place ``importer(s) (if any) of the firearm or privately made
                firearm (if privately made in the United States)'', and remove the
                words ``Serial No.'' and add in their place ``Serial number(s)''; and
                0
                d. Add paragraph (j).
                 The additions read as follows:
                Sec. 478.125 Record of receipt and disposition.
                * * * * *
                 (e) * * * In the event the licensee records a duplicate entry with
                the same firearm and acquisition information, whether to close out an
                old record book or for any other reason, the licensee shall record a
                reference to the date and location of the subsequent entry (e.g., date
                of new entry, book name/number, page number, and line number) as the
                disposition.* * *
                * * * * *
                 (f) * * *
                 (1) * * * In the event the licensee records a duplicate entry with
                the same firearm and acquisition information, whether to close out an
                old record book or for any other reason, the licensee shall record a
                reference to the date and location of the subsequent entry (e.g., date
                of new entry, book name/number, page number, and line number) as the
                disposition.* * *
                * * * * *
                 (j) Privately made firearms. Licensees must record each receipt
                (whether or not kept overnight) or other acquisition (including from a
                personal collection) and disposition (including to a personal
                collection) of a privately made firearm as required by this part,
                except that such information need not be recorded if the firearm is
                being identified under the direct supervision of another licensee with
                their information. Once a privately made firearm is identified by the
                licensee in accordance with section 478.92(a)(2), the licensee shall
                update the record of acquisition entry with the identifying
                information.
                Sec. 478.125 [Amended]
                0
                15. Amend Sec. 478.125a as follows:
                0
                a. In the first sentence of paragraph (a)(4), remove ``manufacturer and
                importer (if any)'' and add in its place ``manufacturer(s) and
                importer(s) (if any) of the firearm or privately made firearm (if
                privately made in the United States)'', remove the words ``serial
                number'' and add in their place ``serial number(s)'', remove
                ``Manufacturer and importer (if any)'' and add in its place
                ``Manufacturer(s) and importer(s) (if any)'', and remove the words
                ``Serial No.'' and add in their place ``serial number(s)''.
                0
                16. In Sec. 478.129, revise paragraphs (b), (d), and (e) to read as
                follows:
                Sec. 478.129 Record retention.
                * * * * *
                 (b) Firearms Transaction Record. Licensees shall retain each Form
                4473 until business is discontinued, either on paper, or in an
                electronic alternative method approved by the Director, at the
                [[Page 27751]]
                business premises readily accessible for inspection under this part.
                Paper forms over 20 years of age may be stored at a separate warehouse,
                which shall be considered part of the business premises for this
                purpose and subject to inspection under this part. Forms 4473 shall be
                retained in the licensee's records as provided in Sec. 478.124(b):
                Provided, that Forms 4473 with respect to which a sale, delivery or
                transfer did not take place shall be separately retained in
                alphabetical (by name of transferee) or chronological (by date of
                transferee's certification) order.
                * * * * *
                 (d) Records of importation and manufacture. Licensees shall
                maintain records of the importation, manufacture, or other acquisition
                of firearms, including ATF Forms 6 and 6A as required by subpart G of
                this part, until business is discontinued. Licensed importers' records
                and licensed manufacturers' records of the sale or other disposition of
                firearms after December 15, 1968, shall be retained until business is
                discontinued, either on paper, or in an electronic alternative method
                approved by the Director, at the business premises readily accessible
                for inspection under this part. Paper records that do not contain any
                open disposition entries and with no dispositions recorded within 20
                years may be stored at a separate warehouse, which shall be considered
                part of the business premises for this purpose and subject to
                inspection under this part.
                 (e) Records of dealers and collectors. The records prepared by
                licensed dealers and licensed collectors of the sale or other
                disposition of firearms and the corresponding record of receipt of such
                firearms shall be retained until business or licensed activity is
                discontinued, either on paper, or in an electronic alternative method
                approved by the Director, at the business or collection premises
                readily accessible for inspection under this part. Paper records that
                do not contain any open disposition entries and with no dispositions
                recorded within 20 years may be stored at a separate warehouse, which
                shall be considered part of the business premises for this purpose and
                subject to inspection under this part.
                * * * * *
                PART 479--MACHINE GUNS, DESTRUCTIVE DEVICES, AND CERTAIN OTHER
                FIREARMS
                0
                17. The authority citation for 27 CFR part 479 continues to read as
                follows:
                 Authority: 26 U.S.C. 5812; 26 U.S.C. 5822; 26 U.S.C. 7801; 26
                U.S.C. 7805.
                0
                18. In Sec. 479.11:
                0
                a. Add definitions for ``Complete muffler or silencer device'' and
                ``Complete weapon'';
                0
                b. Revise the definition of ``Frame or receiver'';
                0
                c. Add a definition for ``Readily''; and
                0
                d. Add a sentence at the end of the definition of ``Transfer''.
                 The additions and revision read as follows:
                Sec. 479.11 Meaning of terms.
                * * * * *
                 Complete muffler or silencer device. A muffler or silencer that
                contains all component parts necessary to function as designed whether
                or not assembled or operable.
                 Complete weapon. A firearm other than a muffler or silencer that
                contains all component parts necessary to function as designed whether
                or not assembled or operable.
                * * * * *
                 Frame or receiver. The term ``frame or receiver'' shall have the
                same meaning as in 27 CFR 478.11.
                * * * * *
                 Readily. A process that is fairly or reasonably efficient, quick,
                and easy, but not necessarily the most efficient, speedy, or easy
                process. Factors relevant in making this determination, with no single
                one controlling, include the following:
                 (a) Time, i.e., how long it takes to finish the process;
                 (b) Ease, i.e., how difficult it is to do so;
                 (c) Expertise, i.e., what knowledge and skills are required;
                 (d) Equipment, i.e., what tools are required;
                 (e) Availability, i.e., whether additional parts are required, and
                how easily they can be obtained;
                 (f) Expense, i.e., how much it costs;
                 (g) Scope, i.e., the extent to which the subject of the process
                must be changed to finish it; and
                 (h) Feasibility, i.e., whether the process would damage or destroy
                the subject of the process, or cause it to malfunction.
                * * * * *
                 Transfer. * * * For purposes of this part, the term shall not
                include the temporary conveyance of a lawfully possessed firearm to a
                manufacturer or dealer qualified under this part for the sole purpose
                of repair, identification, evaluation, research, testing, or
                calibration, and return to the same lawful possessor.
                * * * * *
                Sec. 479.62 [Amended]
                0
                19. In Sec. 479.62(b)(3), remove ``manufacturer'' and add in its place
                ``manufacturer(s)'' and remove the words ``serial number'' and add in
                their place ``serial number(s)''.
                Sec. 479.84 [Amended]
                0
                20. In Sec. 479.84(b)(8), remove ``manufacturer'' and add in its place
                ``manufacturer(s)'', remove the words ``importer (if known)'' and add
                in their place ``importer(s) (if known)'', and remove the words
                ``serial number'', wherever they may be, and add in their place
                ``serial number(s)''.
                Sec. 479.88 [Amended]
                0
                21. In Sec. 479.88(b), remove ``manufacturer'' and add in its place
                ``manufacturer(s)'', remove the word ``importer'' and add in its place
                ``importer(s)'', and remove the words ``serial number'' and add in
                their place ``serial number(s)''.
                Sec. 479.90 [Amended]
                0
                22. In Sec. 479.90(b), remove the words ``manufacturer'', wherever
                they may be, and add in their place ``manufacturer(s)'', remove the
                word ``importer'' and add in its place ``importer(s)'', and remove the
                words ``serial number'' and add in their place ``serial number(s)''.
                0
                23. Revise Sec. 479.102 to read as follows:
                Sec. 479.102 Identification of firearms.
                 (a) Identification required. You, as a manufacturer, importer, or
                maker of a firearm, must legibly identify the firearm as follows:
                 (1) Serial number, name, place of business. By engraving, casting,
                stamping (impressing), or otherwise conspicuously placing or causing to
                be engraved, cast, stamped (impressed) or otherwise placed on each part
                (or specific part(s) previously determined by the Director) defined as
                a frame or receiver thereof, a serial number, in a manner not
                susceptible of being readily obliterated, altered, or removed. The
                serial number identified on each part of a weapon, including a weapon
                parts kit, defined as a frame or receiver must be the same number, but
                must not duplicate any serial number(s) placed by the licensee or maker
                on any other firearm. Except as provided in paragraph (b)(5) of this
                section, each frame or receiver thereof must also be marked with
                either: Your name (or recognized abbreviation), and city and State (or
                recognized abbreviation) where you as a manufacturer or importer
                maintain your place of business, or in the case of a maker, where you
                made the
                [[Page 27752]]
                firearm; or if a licensee, your name (or recognized abbreviation) and
                abbreviated Federal firearms license number as a prefix, which is the
                first three and last five digits, followed by a hyphen, and then
                followed by a number as a suffix, e.g., ``12345678-[number]''; and
                 (2) Model, caliber or gauge, foreign manufacturer, country of
                manufacture. By engraving, casting, stamping (impressing), or otherwise
                conspicuously placing or causing to be engraved, cast, stamped
                (impressed) or placed on each part (or specific part(s) previously
                determined by the Director) defined as a frame or receiver, or barrel
                or pistol slide (if applicable) thereof certain additional information.
                This information must be placed in a manner not susceptible of being
                readily obliterated, altered, or removed. Except as provided in
                paragraph (b)(5) of this section, the additional information shall
                include:
                 (i) The model, if such designation has been made;
                 (ii) The caliber or gauge;
                 (iii) When applicable, the name of the foreign manufacturer or
                maker; and
                 (iv) In the case of an imported firearm, the name of the country in
                which it was manufactured. For additional requirements relating to
                imported firearms, see Customs regulations at 19 CFR part 134.
                 (3) Frame or receiver, machine gun conversion part, or silencer
                part disposed of separately. Except as provided in paragraph (b)(4) of
                this section, each part defined as a frame or receiver, machine gun, or
                firearm muffler or firearm silencer, that is not a component part of a
                complete weapon or device at the time it is sold, shipped, or otherwise
                disposed of by you must be identified as required by this section with
                a serial number not duplicated on any other firearm and all additional
                identifying information, except that the model designation and caliber
                or gauge may be omitted if that information is unknown at the time the
                part is identified.
                 (4) Size and depth of markings. The engraving, casting, or stamping
                (impressing) of the serial number and additional information must be to
                a minimum depth of .003 inch and in a print size no smaller than \1/16\
                inch. The size of serial numbers required by this section is measured
                as the distance between the latitudinal ends of the character
                impression bottoms (bases). The depth of all markings required by this
                section is measured from the flat surface of the metal and not the
                peaks or ridges.
                 (5) Period of time to identify firearms. You must identify a
                complete weapon or complete muffler or silencer device no later than
                seven days following the date of completion of the active manufacturing
                process for the weapon or device, or prior to disposition, whichever is
                sooner. Except as provided in paragraph (b)(4) of this section, you
                must identify each part, including a replacement part, defined as a
                frame or receiver, machine gun, or firearm muffler or firearm silencer,
                that is not a component part of a complete weapon or device at the time
                it is sold, shipped, or otherwise disposed of no later than seven days
                following the date of completion of the active manufacturing process
                for the part, or prior to disposition, whichever is sooner. For
                purposes of this paragraph, firearms actively awaiting materials,
                parts, or equipment repair to be completed are actively in the
                manufacturing process. Licensed importers must identify imported
                firearms within the period prescribed in Sec. 478.112.
                 (6) Meaning of marking terms. For purposes of this section, the
                terms ``legible'' and ``legibly'' mean that the identification markings
                use exclusively Roman letters (e.g., A, a, B, b, C, c) and Arabic
                numerals (e.g., 1, 2, 3), or solely Arabic numerals, and may include a
                hyphen, and the terms ``conspicuous'' and ``conspicuously'' mean that
                the identification markings are capable of being easily seen with
                normal handling of the firearm and unobstructed by other markings when
                the complete weapon is assembled.
                 (b) Exceptions--(1) Alternate means or period of identification.
                The Director may authorize other means of identification or period of
                time to identify firearms upon receipt of a letter application or Form
                3311.4 from you showing that such other identification or period is
                reasonable and will not hinder the effective administration of this
                part.
                 (2) Destructive devices. In the case of a destructive device, the
                Director may authorize other means of identification or period of time
                to identify that weapon upon receipt of a letter application or Form
                3311.4 from you. The application shall show that engraving, casting, or
                stamping (impressing) such a weapon as required by this section would
                be dangerous or impracticable, or that the requested time period is
                reasonable and will not hinder the effective administration.
                 (3) Adoption of identifying markings. Licensed manufacturers and
                licensed importers may adopt the serial number(s) or other identifying
                markings previously placed on a firearm in accordance with this section
                provided that, within the period and in the manner herein prescribed,
                the licensee legibly and conspicuously places, or causes to be placed,
                on each part (or specific part(s) previously determined by the
                Director) defined as a frame or receiver either: Their name (or
                recognized abbreviation), and city and State (or recognized
                abbreviation) where they maintain their place of business; or their
                name (or recognized abbreviation) and their abbreviated Federal
                firearms license number, which is the first three and last five digits,
                followed by a hyphen, and then followed by the existing serial number
                (including any other abbreviated FFL prefix) as a suffix, e.g.,
                ``12345678-[serial number]''.
                 (4) Firearm muffler or silencer parts--(i) Firearm muffler or
                silencer parts transferred between qualified manufacturers to complete
                new devices. A licensed manufacturer qualified under this part may
                transfer a part defined as a muffler or silencer to another qualified
                manufacturer without immediately identifying or registering such part
                provided that, upon receipt, it is actively used to manufacture a new
                complete muffler or silencer device. Once the new device with such part
                is completed, the manufacturer of the device shall identify and
                register it in the manner and within the period specified in this part
                for a complete muffler or silencer device.
                 (ii) Firearm muffler or silencer replacement parts transferred to
                qualified manufacturers or dealers to repair existing devices. A
                licensed manufacturer qualified under this part may transfer a
                replacement part defined as a muffler or silencer other than a frame or
                receiver to a qualified manufacturer or dealer without identifying or
                registering such part provided that, upon receipt, it is actively used
                to repair a complete muffler or silencer device that was previously
                identified and registered in accordance with this part.
                 (5) Firearms designed and configured before [EFFECTIVE DATE OF THE
                FINAL RULE]. Licensed manufacturers and licensed importers may continue
                to identify firearms of the same design and configuration as they
                existed before [EFFECTIVE DATE OF THE FINAL RULE] with the information
                required to be marked by paragraphs (a)(1) and (2) of this section that
                were in effect prior to that date, and any rules necessary to ensure
                such identification shall remain effective for that purpose.
                 (c) Voluntary classification of firearms. The Director may issue a
                determination to a person whether an item is a firearm as defined in
                this part
                [[Page 27753]]
                upon receipt of a written request or form prescribed by the Director.
                Each such voluntary request or form submitted shall be executed under
                the penalties of perjury with a complete and accurate description of
                the item, the name and address of the manufacturer or importer thereof,
                and a sample of such item for examination along with any instructions,
                guides, templates, jigs, equipment, tools, or marketing materials that
                are made available to the purchaser or recipient of the item. The
                Director shall not issue a determination regarding a firearm accessory
                or attachment unless it is installed on the firearm(s) in the
                configuration for which it is designed and intended to be used. Upon
                completion of the examination, the Director may return the sample to
                the person who made the request unless a determination is made that
                return of the sample would be or place the person in violation of law.
                A determination made by the Director under this paragraph shall not be
                deemed by any person to be applicable to or authoritative with respect
                to any other sample, design, model, or configuration.
                Sec. 479.103 [Amended]
                0
                24. In Sec. 479.103, at the end of the third sentence, add ``, except
                as provided in Sec. 479.102(b)(4).''
                Sec. 479.112 [Amended]
                0
                25. In Sec. 479.112(a), second sentence, remove the words ``serial
                number'' and add in their place the words ``serial number(s)''.
                Sec. 479.141 [Amended]
                0
                26. In Sec. 479.141, remove the word ``manufacturer'' and add in its
                place ``manufacturer(s)'' and remove the words ``serial number'' and
                add in their place ``serial number(s)''.
                 Dated: May 7, 2021.
                Merrick B. Garland,
                Attorney General.
                [FR Doc. 2021-10058 Filed 5-20-21; 8:45 am]
                BILLING CODE 4410-FY-P
                

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