Federal Register / Vol. 79, No. 149 / Monday, August 4, 2014 / Rules and Regulations 45091 

DEPARTMENT OF JUSTICE 

Bureau of Alcohol, Tobacco, Firearms, 

and Explosives 

27 CFR Part 478 

[Docket No. ATF 19F; AG Order No. 3451– 

2014] 

RIN 1140–AA34 

Elimination of Firearms Transaction 

Record, ATF Form 4473 (Low Volume) 

(2008R–21P) 

AGENCY: Bureau of Alcohol, Tobacco, 

Firearms, and Explosives (ATF), 

Department of Justice. 

ACTION: Final rule. 

SUMMARY: The Department of Justice is 

amending the regulations of the Bureau 

of Alcohol, Tobacco, Firearms, and 

Explosives (ATF) by eliminating the 

Firearms Transaction Record, ATF Form 

4473 (Low Volume (LV)), Parts I and II. 

Federally licensed firearms dealers used 

this form as an alternate record for the 

receipt and disposition of firearms. 

Because licensees rarely use Form 4473 

(LV), ATF has determined that 

continued use of this form is 

unwarranted and it should be 

eliminated. Licensees will be required 

to use the standard Form 4473 for all 

dispositions and maintain a record of 

the acquisition and disposition of 

firearms in accordance with the 

regulations. 

DATES: This rule is effective October 3, 

2014. 

FOR FURTHER INFORMATION CONTACT: 

Denise Brown, Enforcement Programs 

and Services, Bureau of Alcohol, 

Tobacco, Firearms, and Explosives, U.S. 

Department of Justice, 99 New York 

Avenue NE., Washington, DC 20226; 

telephone: (202) 648–7070. 

SUPPLEMENTARY INFORMATION: 

I. Background 

The Attorney General is responsible 

for enforcing the provisions of the Gun 

Control Act of 1968 (‘‘the Act’’), 18 

U.S.C. Chapter 44. Among other things, 

the Act authorizes the Attorney General 

to establish license and recordkeeping 

requirements. The Attorney General has 

delegated authority to administer and 

enforce the Act to the Director of the 

Bureau of Alcohol, Tobacco, Firearms, 

and Explosives (ATF), subject to the 

direction of the Attorney General and 

the Deputy Attorney General. 28 CFR 

0.130(a). Regulations that implement the 

provisions of the Act are contained in 

27 CFR Part 478. 

Section 478.125(e) requires that each 

federally licensed firearms dealer enter 

into a record each receipt and 

disposition of a firearm. Licensed 

dealers must maintain the record in 

bound form under the format prescribed 

in the regulations. Regarding the 

purchase or other acquisition of a 

firearm by a licensed dealer, the record 

must show the date of receipt, the name 

and address or the name and license 

number of the person from whom it was 

received, the name of the manufacturer 

and importer (if any), the model, serial 

number, type, and the caliber or gauge 

of the firearm. Licensed dealers must 

also record certain information 

regarding the sale or other disposition of 

a firearm, e.g., the date of the sale or 

other disposition of the firearm, the 

name and address of the person to 

whom the firearm is transferred, or the 

name and license number of the person 

to whom the firearm is transferred if 

such person is a licensee. 

Section 478.124a, which became 

effective August 1, 1988, provides for 

alternate records for the receipt and 

disposition of firearms by licensed 

dealers. This section generally provides 

that a licensed dealer acquiring firearms 

and contemplating the disposition of 

not more than 50 firearms within a 

succeeding 12-month period to 

licensees or nonlicensees could 

maintain a record of the acquisition and 

disposition of such firearms on a 

firearms transaction record, Form 4473 

(LV) Part I, Firearms Transaction Record 

Part I—Low Volume—Over-TheCounter, or Form 4473 (LV) Part II, 

Firearms Transaction Record Part II Low 

Volume—Intrastate Non-Over-TheCounter, in lieu of the records 

prescribed by § 478.125(e). A licensed 

dealer who maintains alternate records 

pursuant to § 478.124a, but whose 

firearms dispositions exceeded 50 

firearms within a 12-month period, is 

required to make and maintain the 

acquisition and disposition records 

required by § 478.125(e) with respect to 

each firearm exceeding 50. 

The standard Form 4473, Firearms 

Transaction Record, is the form 

commonly used by firearms licensees to 

record distributions of firearms to 

nonlicensed individuals. This form is 

supplemented by the licensee’s 

acquisition and disposition record. The 

Form 4473 (LV) combined the 

acquisition and disposition record into 

the form for use by low volume 

licensees (i.e., dealers distributing not 

more than 50 firearms per year). 

II. Notice of Proposed Rulemaking 

On August 5, 2010, ATF published in 

the Federal Register a notice of 

proposed rulemaking (NPRM) soliciting 

comments from the public on the 

Department’s proposal to amend the 

regulations to eliminate the Firearms 

Transaction Record, Form 4473 (Low 

Volume (LV)), Parts I and II (Notice No. 

30P, 75 FR 47254). The NPRM noted 

that firearms licensees rarely use Form 

4473 (LV), and that the costs of updating 

and printing Form 4473 (LV) were not 

an efficient use of ATF’s resources. 

The NPRM also noted that if the 

proposed rule was adopted, licensees 

would be required to use the standard 

ATF Form 4473 for all dispositions and 

maintain a record of the acquisition and 

disposition of firearms in accordance 

with the provisions of § 478.125. The 

comment period for the NPRM closed 

on November 3, 2010. 

III. Analysis of Comments and Decision 

Seven comments were received in 

response to the Department’s proposal 

to eliminate Form 4473 (LV). Of those, 

three offered either general or specific 

support for the Department’s proposal. 

One of the commenters stated that all 

nonessential paperwork and 

recordkeeping should be eliminated. 

One commenter stated that the Form 

4473 (LV) was confusing and 

‘‘borderline obsolete’’ without offering 

any further explanation. One 

commenter stated that having multiple 

systems of recording acquisitions and 

dispositions unnecessarily complicated 

the recordkeeping process, and that 

requiring all licensees to use a single 

system of records (the standard Form 

4473 and bound book) would reduce 

confusion and improve recordkeeping 

accuracy. This commenter went on to 

state that a single recordkeeping system 

would make enforcement of firearms 

regulations simpler. All three 

commenters concurred with the 

proposed elimination of Form 4473 

(LV). 

Four commenters objected to the 

Department’s proposal. One of the 

objecting commenters stated that Form 

4473 (LV) was useful. The remaining 

three commenters misunderstood the 

proposed amendment and assumed that 

the Department was proposing to 

eliminate the Firearms Transaction 

Record entirely. As stated in the NPRM, 

the Department was only proposing to 

eliminate Form 4473 (LV). The standard 

Form 4473, Firearms Transaction 

Record, was not proposed for 

elimination. With respect to the 

objecting commenter who found Form 

4473 (LV) useful, the Department notes 

that the proposed elimination of that 

form was not based upon a 

determination that it served no purpose. 

Rather, because it was used so 

infrequently ATF concluded that the 

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45092 Federal Register / Vol. 79, No. 149 / Monday, August 4, 2014 / Rules and Regulations 

costs of maintaining the form 

outweighed the benefits it conferred. 

Accordingly, this final rule adopts 

without change the proposed 

amendment eliminating Form 4473 

(LV). Upon the effective date of this 

final rule, licensees will be required to 

use the standard Form 4473 for all 

dispositions and maintain a record of 

the acquisition and disposition of 

firearms in accordance with the 

regulations in 27 CFR Part 478. These 

recordkeeping requirements apply to the 

disposition of firearms to all 

nonlicensed persons. 

How This Document Complies With the 

Federal Administrative Requirements 

for Rulemaking 

A. Executive Order 12866 and Executive 

Order 13563 

This rule has been drafted and 

reviewed in accordance with Executive 

Order 12866, ‘‘Regulatory Planning and 

Review,’’ section 1(b), The Principles of 

Regulation, and Executive Order 13563, 

‘‘Improving Regulation and Regulatory 

Review.’’ The Department of Justice has 

determined that this rule is a 

‘‘significant regulatory action’’ under 

Executive Order 12866, section 3(f), and 

accordingly this rule has been reviewed 

by the Office of Management and 

Budget. However, this rule will not have 

an annual effect on the economy of $100 

million or more, nor will it adversely 

affect in a material way the economy, a 

sector of the economy, productivity, 

competition, jobs, the environment, 

public health or safety, or State, local, 

or tribal governments or communities. 

Because ATF Form 4473 (LV), Parts I 

and II, have rarely been used by federal 

firearms licensees, the rule will have a 

negligible effect on the economy. 

B. Executive Order 13132 

The rule will not have substantial 

direct effects on the States, on the 

relationship between the Federal 

Government and the States, or on the 

distribution of power and 

responsibilities among the various 

levels of government. Therefore, in 

accordance with section 6 of Executive 

Order 13132, the Attorney General has 

determined that the rule will not have 

sufficient federalism implications to 

warrant the preparation of a federalism 

summary impact statement. 

C. Executive Order 12988 

The rule 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 

The Regulatory Flexibility Act, 5 

U.S.C. 601 et seq., requires an agency to 

conduct a regulatory flexibility analysis 

of any rule subject to notice and 

comment rulemaking requirements 

unless the agency certifies that the rule 

will not have a significant economic 

impact on a substantial number of small 

entities. See 5 U.S.C. 605(b). Small 

entities include small businesses, small 

not-for-profit enterprises, and small 

governmental jurisdictions. The 

Attorney General, in accordance with 

the Regulatory Flexibility Act, 5 U.S.C. 

605(b), has reviewed this rule and, by 

approving it, certifies that this rule will 

not have a significant economic impact 

on a substantial number of small 

entities, including small businesses, 

small not-for-profit enterprises, and 

small governmental jurisdictions. 

Because ATF Form 4473 (LV), Parts I 

and II, have rarely been used by federal 

firearms licensees, the rule will have a 

negligible effect on small businesses. 

E. Small Business Regulatory 

Enforcement Fairness Act of 1996 

This 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. This 

rule will not result in an annual effect 

on the economy of $100 million or 

more; a major increase in costs or prices; 

or significant adverse effects on 

competition, employment, investment, 

productivity, innovation, or on the 

ability of United States-based 

enterprises to compete with foreignbased enterprises in domestic and 

export markets. 

F. Unfunded Mandates Reform Act of 

1995 

This 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. 

G. Paperwork Reduction Act 

This rule does not impose any new 

reporting or recordkeeping requirements 

under the Paperwork Reduction Act. 

Disclosure 

Copies of the notice of proposed 

rulemaking, all comments received in 

response to the NPRM, and this final 

rule will be available for public 

inspection by appointment during 

normal business hours at: ATF Reading 

Room, Room 1E–062, 99 New York 

Avenue NE., Washington, DC 20226; 

telephone: (202) 648–8740. 

Drafting Information 

The author of this document is Denise 

Brown, Enforcement Programs and 

Services, Bureau of Alcohol, Tobacco, 

Firearms, and Explosives. 

List of Subjects in 27 CFR Part 478 

Administrative practice and 

procedure, Arms and ammunition, 

Authority delegations, Customs duties 

and inspection, Domestic violence, 

Exports, Imports, Law enforcement 

personnel, Military personnel, 

Nonimmigrant aliens, Penalties, 

Reporting and recordkeeping 

requirements, Research, Seizures and 

forfeitures, and Transportation. 

Authority and Issuance 

Accordingly, for the reasons 

discussed in the preamble, 27 CFR Part 

478 is amended as follows: 

PART 478—COMMERCE IN FIREARMS 

AND AMMUNITION 

■ 1. The authority citation for 27 CFR 

Part 478 continues to read as follows: 

Authority: 5 U.S.C. 552(a); 18 U.S.C. 847, 

921–931; 44 U.S.C. 3504(h). 

§ 478.124a [Removed] 

■ 2. Section 478.124a is removed. 

■ 3. Section 478.125 is amended by 

revising the first sentence in paragraph 

(e) to read as follows: 

§ 478.125 Record of receipt and 

disposition. 

* * * * * 

(e) Firearms receipt and disposition 

by dealers. Each licensed dealer shall 

enter into a record each receipt and 

disposition of firearms. * * * 

* * * * * 

Dated: July 29, 2014. 

Eric H. Holder, Jr., 

Attorney General. 

[FR Doc. 2014–18392 Filed 8–1–14; 8:45 am] 

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