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[Federal Register Volume 77, Number 24 (Monday, February 6, 2012)]
[Proposed Rules]
[Pages 5735-5739]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-2472]

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DEPARTMENT OF JUSTICE

Bureau of Alcohol, Tobacco, Firearms, and Explosives

27 CFR Parts 447 and 479

[Docket No. ATF 43P; AG Order No. 3320-2012]
RIN 1140-AA42

Importation of Arms, Ammunition and Implements of War and Machine 
Guns, Destructive Devices, and Certain Other Firearms; Extending the 
Term of Import Permits (2010R-26P)

AGENCY: Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), 
Department of Justice.

ACTION: Notice of proposed rulemaking.

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[[Page 5736]]

SUMMARY: The Department of Justice is proposing to amend the 
regulations of the Bureau of Alcohol, Tobacco, Firearms, and Explosives 
(ATF) to extend the term of import permits for firearms, ammunition, 
and defense articles from 1 year to 2 years. The additional time will 
allow importers sufficient time to complete the importation of the 
authorized commodity. In addition, it will eliminate the need for the 
importer to submit a new import application, ATF Form 6, where the 
importation was not completed within the 1-year period. Extending the 
term of import permits will result in a substantial cost and time 
savings for both the industry and ATF. This proposed change would be 
consistent with Executive Order 13563 of January 18, 2011, which 
directs agencies to review existing significant rules to make 
regulatory programs more effective or less burdensome in achieving 
regulatory objectives.

DATES: Written comments must be postmarked and electronic comments must 
be submitted on or before May 7, 2012. 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: Send comments to any of the following addresses--
     Deborah G. Szczenski, Industry Operations Specialist, 
Mailstop 6N-602, Bureau of Alcohol, Tobacco, Firearms, and Explosives, 
99 New York Avenue NE., Washington, DC 20226; ATTN: ATF 43P. Written 
comments must appear in minimum 12-point size of type (.17 inches), 
include the commenter's mailing address, be signed, and may be of any 
length.
     (202) 648-9741 (facsimile).
    http://www.regulations.gov. Federal eRulemaking portal; 
follow the instructions for submitting comments.
    You may also view an electronic version of this proposed rule at 
the http://www.regulations.gov site.
    See the Public Participation section at the end of the 
SUPPLEMENTARY INFORMATION section for instructions and requirements for 
submitting comments, and for information on how to request a public 
hearing.

FOR FURTHER INFORMATION CONTACT: Deborah G. Szczenski, 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) 648-7087.

SUPPLEMENTARY INFORMATION:

I. Background

    The Attorney General is responsible for enforcing the provisions of 
section 38 of the Arms Export Control Act of 1976 (AECA), 22 U.S.C. 
2778, that relate to the importation of defense articles and defense 
services, and also for enforcing the provisions of the National 
Firearms Act (NFA), 26 U.S.C. Chapter 53. The Attorney General is also 
responsible for enforcing the provisions of the Gun Control Act of 1968 
(GCA), 18 U.S.C. Chapter 44, relating to commerce in firearms and 
ammunition. He has delegated all of those responsibilities to the 
Director of ATF (``Director''), subject to the direction of the 
Attorney General and the Deputy Attorney General. 28 CFR 0.130.

A. Importation of Arms, Ammunition, and Implements of War (27 CFR Part 
447)

    Regulations that implement the provisions of the AECA that are 
concerned with the importation of arms, ammunition, and implements of 
war are set forth in 27 CFR part 447. The regulation at 27 CFR 
447.41(a) generally provides that articles on the U.S. Munitions Import 
List may not be imported into the United States except pursuant to a 
permit. Section 447.42(a) states that persons required to obtain a 
permit must file with ATF an ATF Form 6--Part I (5330.3A), Application 
and Permit for Importation of Firearms, Ammunition, and Implements of 
War (``ATF Form 6''). The application must be signed and dated and must 
contain the information requested on the form, including:
    1. The name, address, telephone number, license and registration 
number, if any (including expiration date), of the importer;
    2. The country from which the defense article is to be imported;
    3. The name and address of the foreign seller and foreign shipper;
    4. A description of the defense article to be imported, including--
    a. The name and address of the manufacturer;
    b. The type (e.g., rifle, shotgun, pistol, revolver, aircraft, 
vessel, and in the case of ammunition only, ball, wadcutter, shot, 
etc.);
    c. The caliber, gauge, or size;
    d. The model;
    e. The length of barrel, if any (in inches);
    f. The overall length, if a firearm (in inches);
    g. The serial number, if known;
    h. Whether the defense article is new or used;
    i. The quantity;
    j. The unit cost of the firearm, firearm barrel, ammunition, or 
other defense article to be imported;
    k. The category of U.S. Munitions Import List under which the 
article is regulated;
    5. The specific purpose of importation, including final recipient 
information if different from the importer; and
    6. Certification of origin.
    Section 447.43(a) provides that import permits are valid for 1 year 
from their issuance date unless a different period of validity is 
stated thereon. Furthermore, under Sec.  447.43(b), if shipment cannot 
be completed during the period of validity of the permit, another 
application must be submitted for a permit to cover the unshipped 
balance.

B. Importation of Machine Guns, Destructive Devices, and Certain Other 
Firearms Under the NFA (27 CFR Part 479)

    Regulations that implement the provisions of the NFA are set forth 
in 27 CFR part 479, which contains the procedural and substantive 
requirements relative to the importation, manufacture, making, 
exportation, transfer, taxing, identification and registration of, and 
the dealing in, machine guns, destructive devices, and certain other 
firearms. With respect to NFA firearms, the regulation at 27 CFR 
479.111(a) provides that no firearm may be imported or brought into the 
United States or any territory under its control or jurisdiction unless 
the person importing or bringing in the firearm establishes to the 
satisfaction of the Director that the firearm to be imported or brought 
in is being imported or brought in for certain specified purposes, 
e.g., scientific or research purposes. This paragraph further provides 
that any person desiring to import or bring a firearm into the United 
States must file with the Director an application on ATF Form 6. As 
specified, the approval of an application to import a firearm shall be 
automatically terminated at the expiration of 1 year from the date of 
approval unless, upon request, it is further extended by the Director.
    Section 479.113 provides that the Director shall permit the 
conditional importation of any NFA firearm for the purpose of examining 
and testing to determine whether the importation of such firearm will 
be authorized. As specified, an application on ATF Form 6 shall be 
filed with the Director. The Director may impose conditions upon any 
importation, and the person importing the firearm must agree to

[[Page 5737]]

either export or destroy the weapon if a final determination is made 
that it may not be imported.

C. Importation of Firearms and Ammunition (27 CFR Part 478)

    Regulations in Subpart G of part 478 provide the procedural and 
substantive requirements of the GCA relative to the importation of 
firearms and ammunition. Section 478.112 states that no firearm, 
firearm barrel, or ammunition shall be imported or brought into the 
United States by a licensed importer unless the Director has authorized 
the importation of the firearm, firearm barrel, or ammunition. This 
section further provides that the licensed importer must file with the 
Director an application for a permit, ATF Form 6, to import or bring a 
firearm, firearm barrel, or ammunition into the United States. If the 
Director approves the application, such approved application will serve 
as the permit to import the firearm, firearm barrel, or ammunition 
described on the permit, and importation of such firearms, firearm 
barrels, or ammunition may continue to be made by the licensed importer 
under the approved application (permit) during the period specified on 
the permit.
    Similar procedures are set forth in section 478.113 with respect to 
the importation of a firearm, firearm barrel, or ammunition into the 
United States by a licensee other than a licensed importer.
    Requirements for the conditional importation of firearms, firearm 
barrels, and ammunition for the purpose of examination and testing to 
determine whether the Director will authorize their importation are set 
forth in Sec.  478.116. This section provides that an application on 
ATF Form 6 for such conditional importation must be filed with the 
Director. If approved, the Director may impose conditions on the 
importation, and the person importing the firearm, firearm barrel, or 
ammunition must agree to either export or destroy the imported item if 
it is determined that the item may not be imported.

II. FAIR Trade Group Petition

    ATF received a petition, dated August 10, 2010, filed on behalf of 
the FireArms Import-Export Roundtable (FAIR) Trade Group. As stated in 
the petition, FAIR is an organization that represents importers and 
exporters of firearms, ammunition, firearms parts, and accessories. The 
petitioner requested an amendment of the regulations to change the ATF 
Form 6 period of validity from 1 year to 2 years. According to the 
petitioner, this amendment would be beneficial to both the industry and 
to ATF, without having any impact on public safety or compliance with 
the law. As stated in the petition:

    [E]xtending the period a license [permit] is valid could reduce 
the workload for [ATF] examiners by lowering the number of renewals 
submitted to ATF and reduce the uncertainty importers face when 
dealing with long-lead time deals. [Many licensed and/or registered 
importers import the same defense articles year after year. ATF 
processes these ``renewal'' permits.]
    Renewals are a relatively common procedure--whether for items 
stored in a CBD [sic] or for transactions that take longer than a 
year to complete--that the industry must undertake at this time. 
Renewals of existing permits are perfunctory processes that consume 
the valuable resources of both the industry and the ATF. The time 
necessary to log, process and approve these permits does not appear 
to provide any additive compliance or enforcement value to the 
importation process.

    The petitioner contends that extending the term of an import permit 
from 1 year to 2 years will not significantly impact compliance with 
the law and that ``ATF would clearly retain all authorities to revoke 
permits should such action be necessary based on changes to the law, 
interpretations of the law, or changes to the regulations governing 
imports.''
    Of the approximately 11,000 ATF Form 6 import applications ATF 
processes each year, 9,000 are submitted by an ATF licensed or 
registered importer. Subsequent information provided by the petitioner 
indicates that the renewal rate on import permits for industry members 
is approximately 50 percent. If the term of an import permit is changed 
from 1 year to 2 years, ATF estimates the number of import permit 
applications submitted by licensed or registered importers would be 
reduced to 4,500 each year. This would result in significant economic 
savings for both the industry and ATF. As indicated, there is a 
substantial amount of information requested on the import permit 
application. ATF estimates that it takes a compliance officer employed 
by a federally licensed or registered importer approximately 30 minutes 
to complete an ATF Form 6 permit application. According to the 
Occupational Employment Statistics (May 2009), published by the Bureau 
of Labor Statistics, U.S. Department of Labor, the average hourly wage 
of a compliance officer is $26.50. Reducing the number of permits 
submitted by the industry by half (4,500) would result in an annual 
savings of approximately $59,625.
    Increasing the term of an import permit to 2 years would also 
result in an economic benefit for ATF. ATF employs data entry 
contractors who spend an average of 2 hours completing quality review 
and data entry functions for each import application. The average 
salary of a contractor is $14 per hour. ATF examiners typically spend 4 
hours processing an ATF Form 6 application. The average hourly rate for 
an examiner is $24.74. If the number of applications was reduced to 
4,500 each year, the annual savings to ATF would be approximately 
$571,320.

III. Proposed Rule--Extending the Term of Import Permits From 1 Year to 
2 Years

    The Department has determined that an amendment of the regulations 
to extend the term of import permits for firearms, ammunition, and 
defense articles from 1 year to 2 years is warranted. The additional 
time will allow importers sufficient time to complete the importation 
of the authorized commodity, and will eliminate the need for the 
importers to submit a new import application when the importation is 
not completed within the 1-year period. Accordingly, in order to reduce 
the paperwork burden on the industry and to increase the efficiency of 
ATF in processing requests for importation, the Department is proposing 
to amend the regulations in parts 447 and 479 to increase the term of 
import permits from 1 year to 2 years.
    The regulations in part 478 do not specify the period of validity 
for import permits as 1 year, and therefore, the Department is not 
proposing to amend the regulations in part 478. The regulations in part 
478 provide that importation may continue to be made by the applicant 
during the period specified on the approved application (permit). As 
stated on the ATF Form 6, the permit is valid for 12 months from the 
Director's approval date on the permit. If this proposed rule is 
adopted, the ATF Form 6 will be revised to reflect the amended period 
of validity for importation as 2 years from the Director's approval 
date on the permit.
    The term of validity for import permits filed by members of the 
United States military returning to the United States from abroad with 
firearms and for non-immigrant aliens temporarily importing firearms 
into the United States for lawful hunting and sporting purposes is 
unaffected by this proposed rule and will remain at 1 year.

[[Page 5738]]

IV. How This Document Complies With the Federal Administrative 
Requirements for Rulemaking

A. Executive Orders 12866 and 13563

    This proposed rule has been drafted and reviewed in accordance with 
Executive Order 12866, ``Regulatory Planning and Review,'' section 
1(b), Principles of Regulation and in accordance with Executive Order 
13563, ``Improving Regulation and Regulatory Review,'' section 1(b) 
General Principles of Regulation and section 6 Retrospective Analysis 
of Existing Rules. The Department of Justice has determined that this 
proposed rule is a ``significant regulatory action'' under Executive 
Order 12866, section 3(f), Regulatory Planning and Review, and 
accordingly this proposed rule has been reviewed by the Office of 
Management and Budget.
    Further, both Executive Orders 12866 and 13563 direct agencies to 
assess all costs and benefits of available regulatory alternatives and, 
if regulation is necessary, to select regulatory approaches that 
maximize net benefits (including potential economic, environmental, 
public health and safety effects, distributive impacts, and equity). 
Executive Order 13563 emphasizes the importance of quantifying both 
costs and benefits, of reducing costs, of harmonizing rules, and of 
promoting flexibility. The Department has assessed the costs and 
benefits of this regulation and believes that the regulatory approach 
selected maximizes net benefits.
    This proposed rule will not have an annual effect on the economy of 
$100 million, 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. Accordingly, this proposed rule is not an 
``economically significant'' rulemaking as defined by Executive Order 
12866.
    Executive Order 13563 section 6, Retrospective Analysis of Existing 
Rules, directs agencies to develop a plan to review existing 
significant rules that may be ``outmoded, ineffective, insufficient, or 
excessively burdensome,'' and to make appropriate changes where 
warranted. The Department selected and reviewed this rule under the 
criteria set forth in its Plan for Retrospective Analysis of Existing 
Rules. During this review, ATF calculated that it processes 
approximately 11,000 import applications each year. Approximately 82 
percent of those applications (9,000) are submitted by federally 
licensed or registered importers. ATF estimates that it takes a 
compliance officer employed by a federally licensed or registered 
importer approximately 30 minutes to complete an ATF Form 6 permit 
application. According to the Occupational Employment Statistics (May 
2009), published by the Bureau of Labor Statistics, U.S. Department of 
Labor, the average hourly wage of a compliance officer is $26.50. If 
the term of an import permit was extended to 2 years, ATF estimates 
that the number of ATF Form 6 permit applications submitted by licensed 
or registered importers would be reduced to 4,500 each year. Reducing 
the number of permits submitted by the industry by half (4,500) would 
result in an annual savings of approximately $59,625.
    Increasing the term of an import permit to 2 years would also 
result in an economic benefit for ATF. ATF employs data entry 
contractors who spend an average of 2 hours completing quality review 
and data entry functions for each import application. The average 
salary of a contractor is $14 per hour. ATF examiners typically spend 4 
hours processing an ATF Form 6 application. The average hourly rate for 
an examiner is $24.74. If the number of applications was reduced to 
4,500 each year, the annual savings to ATF would be approximately 
$571,320. The Department invites comments on whether this proposed 
revision will reduce the administrative burdens on the industry and ATF 
as anticipated, thereby making this rule less burdensome in achieving 
its regulatory objectives, consistent with Executive Order 13563.

B. Executive Order 13132

    This proposed regulation 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 
this proposed regulation will not have sufficient federalism 
implications to warrant the preparation of a federalism summary impact 
statement.

C. Executive Order 12988

    This proposed 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

    The Regulatory Flexibility Act (5 U.S.C. 605(b)) 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. Small entities include small 
businesses, small not-for-profit enterprises, and small governmental 
jurisdictions. The Attorney General has reviewed this proposed rule 
and, by approving it, certifies that this proposed rule will not have a 
significant economic impact on a substantial number of small entities.
    The Department believes that this proposed rule will have a 
positive economic impact on both the industry and ATF. The number of 
permits and the time required for industry to file those permits and 
for ATF to process them will be significantly reduced.
    An industry compliance officer spends approximately 30 minutes 
completing an ATF Form 6. According to the Occupational Employment 
Statistics (May 2009), published by the Bureau of Labor Statistics, 
United States Department of Labor, the average hourly wage of a 
compliance officer is $26.50. Reducing the number of permits submitted 
by the industry by half (4,500) would result in an annual savings of 
approximately $59,625.

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. This proposed 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 companies to compete with foreign-based companies in 
domestic and export markets.

F. Unfunded Mandates 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.

[[Page 5739]]

G. Paperwork Reduction Act

    This proposed rule does not impose any new reporting or 
recordkeeping requirements under the Paperwork Reduction Act. ATF Form 
6 currently states that a permit is valid for 12 months from the 
Director's date of approval, which is specified on the permit. If this 
proposed rule is adopted, the ATF Form 6 will be revised under 
currently approved OMB control number 1140-0005 to reflect the 2 year 
(24 months) amended period of validity for import permits.

Public Participation

A. Comments Sought

    ATF is requesting comments on the proposed rule from all interested 
persons. All comments must reference this document docket number (ATF 
43P), be legible, and include your name and mailing address. ATF will 
treat all comments as originals and will not acknowledge receipt of 
comments.
    Comments received on or before the closing date will be carefully 
considered. Comments received after that date will be given the same 
consideration if it is practical to do so, but assurance of 
consideration cannot be given except as to comments received on or 
before the closing date.

B. Confidentiality

    Comments, whether submitted electronically or in paper, will be 
made available for public viewing at ATF, and on the Internet as part 
of the eRulemaking initiative, and are subject to the Freedom of 
Information Act. Commenters who do not want their name or other 
personal identifying information posted on the Internet should submit 
their comment by mail or facsimile, along with a separate cover sheet 
that contains their personal identifying information. Both the cover 
sheet and comment must reference this docket number. Information 
contained in the cover sheet will not be posted on the Internet. Any 
personal identifying information that appears within the comment will 
be posted on the Internet and will not be redacted by ATF.
    Any material that the commenter considers to be inappropriate for 
disclosure to the public should not be included in the comment. Any 
person submitting a comment shall specifically designate that portion 
(if any) of his comments that contains material that is confidential 
under law (e.g., trade secrets, processes, etc.). Any portion of a 
comment that is confidential under law shall be set forth on pages 
separate from the balance of the comment and shall be prominently 
marked ``confidential'' at the top of each page. Confidential 
information will be included in the rulemaking record but will not be 
disclosed to the public. Any comments containing material that is not 
confidential under law may be disclosed to the public. In any event, 
the name of the person submitting a comment is not exempt from 
disclosure.

C. Submitting Comments

    Comments may be submitted in any of three ways:
     Mail: Send written comments to the address listed in the 
ADDRESSES section of this document. Written comments must appear in 
minimum 12-point size of type (.17 inches), include the commenter's 
mailing address, be signed, and may be of any length.
     Facsimile: You may submit comments by facsimile 
transmission to (202) 648-9741. Faxed comments must:
    (1) Be legible and appear in minimum 12-point size of type (.17 
inches);
    (2) Be on 8\1/2\'' x 11'' paper;
    (3) Contain a legible, written signature; and
    (4) Be no more than five pages long. ATF will not accept faxed 
comments that exceed five pages.
     Federal eRulemaking Portal: To submit comments to ATF via 
the Federal eRulemaking portal, visit http://www.regulations.gov and 
follow the instructions for submitting comments.

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 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 Deborah G. Szczenski; Enforcement 
Programs and Services; Bureau of Alcohol, Tobacco, Firearms, and 
Explosives.

List of Subjects

27 CFR Part 447

    Administrative practice and procedure, Arms control, Arms and 
munitions, Authority delegations, Chemicals, Customs duties and 
inspection, Imports, Penalties, Reporting and recordkeeping 
requirements, Scientific equipment, Seizures and forfeitures.

27 CFR Part 479

    Administrative practice and procedure, Arms and munitions, 
Authority delegations, Customs duties and inspection, Exports, Imports, 
Military personnel, Penalties, Reporting and recordkeeping 
requirements, Research, Seizures and forfeitures, Transportation.

Authority and Issuance

    Accordingly, for the reasons discussed in the preamble, 27 CFR 
parts 447 and 479 are proposed to be amended as follows:

PART 447--IMPORTATION OF ARMS, AMMUNITION AND IMPLEMENTS OF WAR

    1. The authority citation for 27 CFR part 447 continues to read as 
follows:

    Authority: 22 U.S.C. 2778.

Sec.  447.43  [Amended]

    2. Section 447.43 is amended by removing the phrase ``one year'' in 
paragraph (a) and adding in its place the phrase ``two years''.

PART 479--MACHINE GUNS, DESTRUCTIVE DEVICES, AND CERTAIN OTHER 
FIREARMS

    3. The authority citation for 27 CFR part 479 continues to read as 
follows:

    Authority:  26 U.S.C. 7805.

Sec.  479.111  [Amended]

    4. Section 479.111 is amended by removing the phrase ``one year'' 
in the eighth sentence in paragraph (a)(3) and adding in its place the 
phrase ``two years''.

     Dated: January 30, 2012.
Eric H. Holder, Jr.,
Attorney General.
[FR Doc. 2012-2472 Filed 2-3-12; 8:45 am]
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