Federal Register / Vol. 79, No. 155 / Tuesday, August 12, 2014 / Proposed Rules 47033 

List of Subjects in 14 CFR Part 39 

Air transportation, Aircraft, Aviation 

safety, Incorporation by reference, 

Safety. 

The Proposed Amendment 

Accordingly, under the authority 

delegated to me by the Administrator, 

the FAA proposes to amend 14 CFR part 

39 as follows: 

PART 39—AIRWORTHINESS 

DIRECTIVES 

■ 1. The authority citation for part 39 

continues to read as follows: 

Authority: 49 U.S.C. 106(g), 40113, 44701. 

§ 39.13 [Amended] 

■ 2. Amend § 39.13 by adding the 

following new airworthiness directive 

(AD): 

Dassault Aviation: Docket No. FAA–2014– 

0527; Directorate Identifier 2014–NM– 

045–AD. 

(a) Comments Due Date 

We must receive comments by September 

26, 2014. 

(b) Affected ADs 

None. 

(c) Applicability 

This AD applies to Dassault Aviation 

Model Mystere-Falcon 50 airplanes, 

certificated in any category, as identified in 

paragraphs (c)(1) and (c)(2) of this AD. 

(1) Airplanes with serial numbers 5, 7, 27, 

30, 34, 36, 78, 132, and 251 through 352 

inclusive. 

(2) Airplanes with manufacturer serial 

numbers 2 through 250 inclusive, having 

Honeywell (formerly Allied Signal, Garrett 

AiResearch) TFE731–40–1C engines 

modified by Dassault Aviation Service 

Bulletin F50–280. 

(d) Subject 

Air Transport Association (ATA) of 

America Code 24, Electrical Power. 

(e) Reason 

This AD was prompted by a report of an 

untimely and intermittent indication of slat 

activity due to chafing of the electrical wiring 

under the glare shield and behind the flight 

deck front panel. We are issuing this AD to 

prevent chafing of the electrical wiring, 

which could result in a short circuit and 

generation of smoke in the cockpit, potential 

loss of several functions essential for safe 

flight, and consequent reduced 

controllability of the airplane. 

(f) Compliance 

Comply with this AD within the 

compliance times specified, unless already 

done. 

(g) Install Protective Plates 

Within 74 months after the effective date 

of this AD, install two Rilsan protective 

plates between the glare shield electrical 

wiring and the engine fire pull handles, in 

accordance with the Accomplishment 

Instructions of Dassault Service Bulletin 

F50–530, dated November 12, 2013. 

(h) Other FAA AD Provisions 

The following provisions also apply to this 

AD: 

(1) Alternative Methods of Compliance 

(AMOCs): The Manager, International 

Branch, ANM–116, FAA, has the authority to 

approve AMOCs for this AD, if requested 

using the procedures found in 14 CFR 39.19. 

In accordance with 14 CFR 39.19, send your 

request to your principal inspector or local 

Flight Standards District Office, as 

appropriate. If sending information directly 

to the International Branch, send it to ATTN: 

Tom Rodriguez, Aerospace Engineer, 

International Branch, ANM–116, Transport 

Airplane Directorate, FAA, 1601 Lind 

Avenue SW., Renton, WA 98057–3356; 

telephone (425) 227–1137; fax (425) 227– 

1149. Information may be emailed to: 9- 

ANM-116-AMOC-REQUESTS@faa.gov. 

Before using any approved AMOC, notify 

your appropriate principal inspector, or 

lacking a principal inspector, the manager of 

the local flight standards district office/

certificate holding district office. The AMOC 

approval letter must specifically reference 

this AD. 

(2) Contacting the Manufacturer: For any 

requirement in this AD to obtain corrective 

actions from a manufacturer, the action must 

be accomplished using a method approved 

by the Manager, International Branch, ANM– 

116, Transport Airplane Directorate, FAA; or 

the European Aviation Safety Agency 

(EASA); or Dassault Aviation’s EASA Design 

Organization Approval (DOA). If approved by 

the DOA, the approval must include the 

DOA-authorized signature. 

(i) Related Information 

(1) Refer to Mandatory Continuing 

Airworthiness Information (MCAI) EASA 

Airworthiness Directive 2014–0024, dated 

January 23, 2014, for related information. 

This MCAI may be found in the AD docket 

on the Internet at http://www.regulations.gov 

by searching for and locating it in Docket No. 

FAA–2014–0527. 

(2) For service information identified in 

this AD, contact Dassault Falcon Jet, P.O. Box 

2000, South Hackensack, NJ 07606; 

telephone 201–440–6700; Internet http://

www.dassaultfalcon.com. You may view this 

service information at the FAA, Transport 

Airplane Directorate, 1601 Lind Avenue SW., 

Renton, WA. For information on the 

availability of this material at the FAA, call 

425–227–1221. 

Issued in Renton, Washington, on August 

1, 2014. 

Jeffrey E. Duven, 

Manager, Transport Airplane Directorate, 

Aircraft Certification Service. 

[FR Doc. 2014–19009 Filed 8–11–14; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF JUSTICE 

Bureau of Alcohol, Tobacco, Firearms, 

and Explosives 

27 CFR Part 478 

[Docket No. ATF 40P; AG Order No. 3459– 

2014] 

RIN 1140–AA41 

Commerce in Firearms and 

Ammunition—Reporting Theft or Loss 

of Firearms in Transit (2007R–9P) 

AGENCY: Bureau of Alcohol, Tobacco, 

Firearms, and Explosives (ATF), 

Department of Justice. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: The Department of Justice 

proposes amending Bureau of Alcohol, 

Tobacco, Firearms, and Explosives 

(ATF) regulations that concern firearms 

stolen or lost in transit. The proposed 

rule specifies that when a Federal 

firearms licensee (FFL) discovers a 

firearm it shipped was stolen or lost in 

transit, that sender/transferor FFL must 

report the theft or loss to ATF and to the 

appropriate local authority. The rule 

also reduces an FFL’s reporting burden 

when a theft or loss involves a firearm 

registered under the National Firearms 

Act (NFA) and ensures consistent 

reporting to ATF’s NFA Branch. In 

addition, the rule specifies that 

transferor/sender FFLs must reflect the 

theft or loss of a firearm as a disposition 

entry in their required records not later 

than 7 days following discovery of the 

theft or loss, and specifies that FFLs that 

report the theft or loss of a firearm and 

later discover its whereabouts must 

advise ATF that the firearm has been 

located and must re-enter the firearm 

into their required records as an 

acquisition or disposition entry as 

appropriate. 

DATES: Written comments must be 

postmarked and electronic comments 

must be submitted on or before 

November 10, 2014. 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 40P), 

by any of the following methods— 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• Fax: (202) 648–9741. 

• Mail: Brenda Raffath Friend, 

Mailstop 6N–602, Office of Regulatory 

Affairs, Enforcement Programs and 

Services, Bureau of Alcohol, Tobacco, 


emcdonald on DSK67QTVN1PROD with PROPOSALS
47034 Federal Register / Vol. 79, No. 155 / Tuesday, August 12, 2014 / Proposed Rules 

Firearms, and Explosives, U.S. 

Department of Justice, 99 New York 

Avenue NE., Washington, DC 20226; 

ATTN: ATF 40P. 

Instructions: All submissions received 

must include the agency name and 

docket number for this rulemaking. All 

comments received will be posted 

without change to the Federal 

eRulemaking portal, http://

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: 

Brenda Raffath Friend, Office of 

Regulatory Affairs, 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 Gun Control Act of 1968 (GCA) 

requires each licensed importer, 

licensed manufacturer, licensed dealer, 

or licensed collector of firearms to 

report the theft or loss of a firearm from 

the licensee’s inventory or collection to 

ATF and to the appropriate local 

authorities within 48 hours after the 

theft or loss is discovered. See 18 U.S.C. 

923(g)(6) (requiring licensees to report 

thefts or losses to the Attorney General); 

28 CFR 0.130(a) (delegating the Attorney 

General’s authority to the Director of 

ATF). 

The regulation that implements 

section 923(g)(6) is 27 CFR 478.39a. 

This section provides that each Federal 

firearms licensee must report the theft 

or loss of a firearm from the FFL’s 

inventory (including any firearm which 

has been transferred from the FFL’s 

inventory to a personal collection and 

held as a personal firearm for at least 1 

year), or from the collection of a 

licensed collector, within 48 hours after 

the theft or loss is discovered. FFLs 

must report such thefts or losses by 

telephoning 1–888–930–9275 

(nationwide ATF toll-free number) and 

by preparing a Federal Firearms 

Licensee Firearms Inventory Theft/Loss 

Report, ATF Form 3310.11 (Form 

3310.11), in accordance with the 

instructions on the form. The FFL must 

also report the theft or loss of a firearm 

to the appropriate local authorities. 

When there has been a theft or loss of 

a firearm registered under the National 

Firearms Act (NFA), 26 U.S.C. 5801 et 

seq., such as a short-barreled rifle or 

shotgun, silencer, machinegun, or 

destructive device, 27 CFR 479.141 

imposes a separate and additional 

reporting requirement. Section 479.141 

states that whenever any registered NFA 

firearm is stolen or lost, the person 

losing possession thereof must, 

immediately upon discovery of such 

theft or loss, make a report to the 

Director of ATF showing the following: 

name and address of the person in 

whose name the firearm is registered; 

kind of firearm; serial number; model; 

caliber; manufacturer of the firearm; 

date and place of theft or loss; and 

complete statement of facts and 

circumstances surrounding such theft or 

loss. Accordingly, when an FFL loses 

possession of an NFA firearm, it has 

reporting obligations under both 27 CFR 

479.141 and 27 CFR 478.39a. 

Currently, an FFL reporting the theft 

or loss of a registered NFA firearm 

prepares and submits Form 3310.11 to 

ATF’s National Tracing Center (NTC), 

the receiving office designated on the 

form, to meet 27 CFR 478.39a 

requirements. In addition, the FFL must 

submit a separate notification to the 

Director of ATF to meet the 

requirements of 27 CFR 479.141. 

Because no form is directly associated 

with this requirement, FFLs typically 

submit a letter to the NFA Branch of 

ATF, as directed in the ‘‘Important 

Notice’’ section of Form 3310.11. As a 

backup to this requirement, when NTC 

receives a completed Form 3310.11 

involving the theft or loss of an NFA 

firearm, it currently forwards a copy of 

the completed form to the NFA Branch, 

as the completed form often contains 

more information than the letters FFLs 

submit to the NFA Branch. Form 

3310.11 does not, however, address all 

required elements under 27 CFR 

479.141 (i.e., the name and address of 

the person in whose name the firearm 

is registered). Therefore, the NFA 

Branch may not currently be receiving 

consistent and complete information 

regarding the theft or loss of a registered 

firearm. 

The instructions on Form 3310.11 

also provide that FFLs must reflect the 

theft or loss of a firearm as a disposition 

entry in the Record of Acquisition and 

Disposition required by subpart H of 27 

CFR part 478. The disposition entry 

should indicate whether the incident is 

a theft or loss, the ATF issued Incident 

Report Number, and the Incident 

Number provided by the local law 

enforcement agency. The instructions 

further state that should any of the 

firearms be located, they should be reentered into the Record of Acquisition 

and Disposition as an acquisition entry. 

In addition, the ‘‘Important Notice’’ 

section on Form 3310.11 provides that 

FFLs who report a firearm as missing 

and later discover its whereabouts 

should advise ATF that the firearms 

have been located. 

Current regulations do not address 

reporting requirements arising from 

firearms stolen or lost in transit between 

FFLs, including whether the stolen or 

lost firearm is considered the inventory 

of the sending or receiving FFL, or 

whether the sending or receiving FFL is 

responsible for reporting the theft or 

loss of a firearm in transit. 

These gaps in the regulations may 

result in no one reporting the theft or 

loss of a firearm stolen or lost in transit. 

Clarifying this responsibility is 

important to the effective administration 

of the GCA and the NFA. Congress 

delegated the authority to prescribe 

rules and regulations to carry out the 

provisions of the GCA and NFA to the 

Attorney General, who has delegated to 

ATF the authority to investigate, 

administer, and enforce those laws. 18 

U.S.C. 926(a); 28 CFR 0.130(a). 

II. Initial Notice of Proposed 

Rulemaking 

On August 28, 2000, ATF published 

in the Federal Register a notice 

proposing several amendments to the 

firearms regulations (Notice No. 902, 65 

FR 52054). Among those amendments, 

ATF proposed specifying that when a 

firearm is stolen or lost in transit 

between licensees, for reporting 

purposes, the firearm is considered 

stolen or lost from the transferor’s/

sender’s inventory. ATF noted that, in 

Fiscal Year (FY) 1999, there were 1,271 

crime gun traces in which an FFL 

claimed to have never received the 

firearm shipped to it and no one 

reported the theft or loss to ATF. As 

proposed in 2000, a firearm stolen or 

lost in transit between licensees, for 

reporting purposes, would be 

considered stolen or lost from the 

transferor’s/sender’s inventory. Further, 

as proposed, the transferor/sender of the 

stolen or missing firearm would have 

been required to report to ATF and to 

the appropriate local authorities the 

theft or loss of the firearm within 48 

hours after the transferor/sender 

discovered the theft or loss. ATF 

determined that it was more logical to 

put the reporting burden on the 

transferor/sender, rather than on the 

transferee/buyer, because the transferor/ 

sender was more likely to know the 

circumstances of when and how a 

firearm is shipped. Further, if a firearm 

is stolen or lost in transit, the notation 

in the transferor’s/sender’s acquisition 

and disposition book indicating the 


emcdonald on DSK67QTVN1PROD with PROPOSALS
Federal Register / Vol. 79, No. 155 / Tuesday, August 12, 2014 / Proposed Rules 47035 

firearm was disposed of to a particular 

transferee/buyer would be inaccurate. 

Therefore, as proposed in 2000, a 

transferor/sender would have been 

required to verify that the transferee/

buyer received the shipped firearm in 

order to fulfill his or her statutory 

responsibility to maintain accurate 

records. 

In addition, to enable the transferor/ 

sender of the stolen or lost firearm to 

obtain the knowledge necessary to 

comply with the theft or loss reporting 

requirements, ATF proposed that the 

transferor/sender must have or establish 

commercial business practices that 

confirm whether the transferee/buyer of 

the firearm ultimately received the 

firearm. Notice No. 902 addressed other 

issues as well. 

With the comments received in 

response to various issues addressed in 

the notice, the Department decided to 

study the issues further and it 

subsequently withdrew these proposals. 

See 69 FR 37757 (June 28, 2004). 

III. Current Notice of Proposed 

Rulemaking 

Theft or loss of firearms in transit 

continues to be a problem. In its earlier 

notice of proposed rulemaking on this 

issue, ATF stated that in FY 1999, there 

were 1,271 crime gun traces in which an 

FFL claimed to have never received the 

firearm shipped to it and no one 

reported the theft or loss to ATF. More 

recent data from NTC show that from 

FY 2008 through FY 2012, in an average 

of 1,525 crime gun traces per year, an 

FFL claimed to have never received the 

firearm allegedly shipped to it and no 

one reported the theft or loss to ATF. 

The omissions in the regulations 

regarding reporting the theft or loss of 

a firearm in transit adversely affect 

ATF’s and local law enforcement’s 

investigative and tracing capabilities. 

Therefore, the regulations should be 

amended to specify who is responsible 

for reporting the theft or loss of a 

firearm in transit. 

The Department has concluded that 

the transferor/sender of a firearm should 

bear the responsibility of reporting the 

theft or loss of that firearm when the 

theft or loss occurs in transit. This 

proposed rule is consistent with the 

GCA, which regulates commerce in 

firearms through FFLs. The GCA’s 

scheme relies on firearms dealers to 

control commerce in firearms. 

Huddleston v. United States, 415 U.S. 

814, 824 (1975) (‘‘The principal agent of 

federal enforcement is the dealer.’’) 

Section 923(g)(6), in particular, places 

the burden of reporting stolen or lost 

firearms on licensees. Given that the 

statutory reporting obligation rests with 

licensees, and not with the common or 

contract carriers that transport firearms, 

it is reasonable to require by regulation 

that licensees report thefts or losses that 

occur in transit. The Department further 

believes that it should be the transferor/ 

sender licensees, not the recipients, who 

bear the reporting obligations. The 

transferors/senders covered by this rule 

will be licensees who are subject to the 

reporting requirement under section 

923(g)(6)—but not every recipient in 

firearms transactions will necessarily be 

a licensee. Placing the reporting 

obligation on the transferor/sender 

licensee accordingly assures that, for 

every firearms transaction covered by 

section 923(g)(6), there will be an FFL 

responsible for reporting the theft or 

loss of a firearm in transit. The 

Department believes that this will 

ensure consistent reporting of stolen or 

lost firearms, thereby fulfilling the 

GCA’s purpose of ‘‘strengthen[ing] 

Federal regulation of interstate firearms 

traffic,’’ H.R. Rep. 90–1577 (1968), 

reprinted in 1968 U.S.C.C.A.N. 4410, 

4412. Accordingly, this proposed rule 

specifies that, when a firearm is stolen 

or lost in transit on a common or 

contract carrier, for reporting purposes 

it is considered stolen or lost from the 

transferor’s/sender’s inventory. 

Therefore, the transferor/sender of the 

stolen or missing firearm must report 

the theft or loss to ATF and to the 

appropriate local authorities within 48 

hours after the transferor/sender 

discovers the theft or loss. 

With respect to firearms stolen or lost 

in transit between FFLs, the Department 

considered but did not adopt the 

Uniform Commercial Code’s (UCC) 

variable approach to the transfer of title 

for risk of loss purposes. In the absence 

of State law governing the transfer of a 

firearm between seller and buyer, the 

UCC allows a seller and buyer to 

establish contractually when title to 

items sold passes from seller to buyer. 

If the sales contract requires the seller 

to deliver the goods to a particular 

destination, the risk of loss passes to the 

buyer when the buyer receives or is able 

to accept delivery of the goods. In this 

situation, the seller assumes the risk of 

goods stolen or lost in transit. If the 

contract does not require the seller to 

deliver the goods to a particular 

destination, the risk of loss passes to the 

buyer when the seller delivers the goods 

to a common or contract carrier for 

shipment. In this situation, the buyer 

assumes the risk of goods stolen or lost 

in transit. Had the Department chosen to 

adopt the UCC’s variable risk of loss 

approach, the seller of the firearms 

would generally assume the risk of loss 

of firearms stolen or lost in transit when 

the contract requires the seller to deliver 

the firearms to a particular destination. 

In any event, the Department has 

decided not to propose the variable UCC 

approach, which governs risk of loss, in 

the different context of allocating the 

responsibility for reporting to ATF the 

theft of loss of firearms in transit. 

Adopting the variable UCC approach for 

reporting firearms stolen or lost in 

transit would be problematic for FFLs to 

apply and for ATF to enforce. Rather 

than following a single, consistent rule 

holding the transferor/sender FFL 

responsible for reporting stolen or lost 

firearms, an FFL would need to examine 

each individual contract to determine 

who has reporting responsibility. For 

this same reason, it would be 

impracticable for ATF to ensure 

regulatory reporting compliance under 

the variable UCC approach. The UCC 

approach focuses on the ownership of 

the goods being shipped and allocating 

the risk of loss, but the primary focus of 

the GCA and its implementing 

regulations is, instead, the acquisition 

and disposition of firearms. 

Accordingly, the GCA theft or loss 

reporting and recordkeeping 

requirements must be complied with 

regardless of whether the seller or buyer 

has title to, or bears the risk of loss of, 

shipped firearms stolen or lost in 

transit. 

Therefore, the Department proposes to 

assign the theft/loss reporting 

requirement to the transferor/sender 

FFL, who would know how and when 

any firearms sent to the transferee were 

shipped. The transferee has an incentive 

to notify the transferor about any 

discrepancies because the transferee 

will not want to pay for an item the 

transferee did not actually receive. 

Upon being contacted by the transferee 

about a shipment discrepancy, the 

transferor is then in the best position to 

verify the theft or loss by reviewing his 

or her transaction records and the 

shipping information from the carrier 

the transferor had utilized. The 

transferor may also discover that the 

discrepancy is due to a recordkeeping or 

other human error. Whether the 

transferee or transferor arranges the 

shipment, the transferor would know 

how and when the firearms were 

shipped, and reporting of the theft or 

loss remains with the transferor/sender 

FFL. 

The proposed rule also applies to 

transfers from a licensee to a 

nonlicensee, including interstate 

shipments for firearms repair and 

replacement. In such transactions, the 

transferor/seller is the only FFL 

involved in the transaction, and 


emcdonald on DSK67QTVN1PROD with PROPOSALS
47036 Federal Register / Vol. 79, No. 155 / Tuesday, August 12, 2014 / Proposed Rules 

accordingly the FFL must assume 

responsibility for reporting to ATF if the 

shipment is lost or stolen in transit 

before the transferee acquires 

possession. 

The proposed rule allows a transferor/ 

sender to rely on notification from the 

transferee/buyer that the shipment was 

not received, and such notification 

triggers the reporting requirement. To 

ensure that a transferee/buyer receives a 

shipped firearm, the Department is 

soliciting comment on whether a 

transferor/sender should be required to 

obtain from the carrier that delivers the 

firearm a written or electronic 

confirmation of the shipment and 

receipt of the firearm showing the date, 

time, and place of receipt, and the name 

of the individual who accepted receipt. 

In addition, the Department seeks 

comments on whether the transferor/

sender should be required to retain the 

confirmation with the transferor’s/

sender’s required records. 

The Department is also soliciting 

comment on the costs and benefits of 

requiring the transferor/sender to obtain 

from the carrier a confirmation of the 

shipment and retaining the confirmation 

in their records. How many shipments 

occur annually? To what extent do FFLs 

as part of their regular business 

practices already arrange to obtain a 

written or electronic confirmation from 

the common carrier or other shipper for 

such shipments? How often do FFLs 

retain records of confirmation currently? 

How might such requirements be 

developed so as to minimize any 

additional burden by meshing with the 

FFL’s regular business practices? 

The proposed rule retains most of the 

current procedures for licensees 

reporting the theft or loss of firearms 

subject to the GCA, in accordance with 

the instructions on Form 3310.11. For 

example, instruction 7 on Form 3310.11 

provides that FFLs must reflect the theft 

or loss of a firearm as a disposition entry 

in the Record of Acquisition and 

Disposition that is required by subpart 

H of part 478. It also provides that the 

disposition entry should indicate 

whether the incident is a theft or loss, 

the ATF Issued Incident Report 

Number, and the Incident Number 

provided by the local law enforcement 

agency. The proposed rule sets out these 

procedures in new paragraph (e) of 27 

CFR 478.39a with two modifications: (1) 

It prescribes a time period to reflect the 

theft or loss of a firearm as a disposition 

entry (i.e., not later than 7 days 

following discovery of the theft or loss; 

and (2) it requires, rather than 

recommends, that the disposition entry 

include specified information. The new, 

seven-day time-period for reporting is 

similar to the firearms receipt and 

disposition reporting requirement for 

licensed dealers in 27 CFR 478.125(e), 

which requires the ‘‘sale or other 

disposition of a firearm’’ to be recorded 

not later than 7 days following the date 

of such transaction. The Department 

considers a theft or loss to be a 

disposition that must be reported within 

this time period. 

In addition, the ‘‘Important Notice’’ 

section of Form 3310.11 provides that 

licensees who report firearms as missing 

and later discover their whereabouts 

should advise ATF that the firearms 

have been located, and instruction 8 

provides that licensees should re-enter 

these located firearms into the Record of 

Acquisition and Disposition as an 

acquisition entry. The proposed rule 

combines and sets out these procedures 

in new paragraph (f) of 27 CFR 478.39a 

with three modifications: (1) It changes 

the ‘‘should advise ATF’’ to ‘‘shall 

advise the [ATF] Director’’; (2) changes 

the ‘‘should re-enter’’ to ‘‘shall reenter’’; and (3) specifies that the re-entry 

could be an acquisition or disposition 

entry as appropriate. Making mandatory 

both the advising of ATF and the reentry of the located firearm into the 

Record of Acquisition and Disposition 

will help to improve the accuracy of 

NTC data, which will greatly assist law 

enforcement in solving violent crimes 

and enhancing public safety. 

The proposed rule reduces a 

licensee’s reporting burden to ATF for 

the theft or loss of a registered NFA 

firearm by allowing submission of one 

Form 3310.11 to meet the requirements 

of 27 CFR 478.39a and 27 CFR 479.141. 

Currently, as discussed in section I, if a 

licensee’s registered NFA firearm is lost 

or stolen, the licensee prepares and 

submits Form 3310.11 to ATF’s NTC to 

comply with 27 CFR 478.39a 

requirements, which specify that Form 

3310.11 be used. The licensee also 

provides to ATF’s NFA Branch a 

separate notification—typically in the 

form of a letter—to comply with 27 CFR 

479.141. This proposed rule revises 27 

CFR 478.39a to stipulate that a 

licensee’s submission of a completed 

Form 3310.11 to ATF for the theft or 

loss of a registered NFA firearm satisfies 

the notification requirements pursuant 

to 27 CFR 478.39a and 27 CFR 479.141. 

This will reduce the licensee’s reporting 

burden and help to ensure that 

information about the lost or stolen 

registered NFA firearm is consistently 

reported to the NFA Branch. As part of 

this rulemaking process, ATF proposes 

to revise Form 3310.11, and the 

corresponding instructions, to denote 

whether the firearm being reported as 

lost or stolen is a registered NFA firearm 

and to include the name and address of 

the person in whose name the firearm 

is registered. The Office of Management 

and Budget will review the proposed 

revisions to the form during the final 

rulemaking process, during which the 

public will have opportunity to 

comment on the paperwork burdens 

associated with the form. 

IV. Statutory and Executive Order 

Reviews 

A. Executive Orders 12866 and 

Executive Order 13563—Regulatory 

Review 

This proposed rule has been drafted 

and reviewed in accordance with 

Executive Order 12866, ‘‘Regulatory 

Planning and Review,’’ section 1(b), The 

Principles of Regulation, and in 

accordance with Executive Order 13563, 

‘‘Improving Regulation and Regulatory 

Review,’’ section 1(b), General 

Principles of Regulation. 

The Department of Justice has 

determined that this proposed rule is a 

‘‘significant regulatory action’’ under 

Executive Order 12866, section 3(f), and 

accordingly this proposed rule has been 

reviewed by the Office of Management 

and Budget. However, this proposed 

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. 

Accordingly, this proposed rule is not 

an ‘‘economically significant’’ 

rulemaking under Executive Order 

12866. 

Executive Orders 12866 and 13563 

both 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 proposed regulation and 

believes that the regulatory approach 

selected maximizes net benefits. 

Under section 923(g)(6) of the GCA 

and its current implementing regulation, 

27 CFR 478.39a, each FFL must report 

the theft or loss of a firearm from the 

licensee’s inventory or collection within 

48 hours after the theft or loss is 

discovered. The licensee must report the 


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Federal Register / Vol. 79, No. 155 / Tuesday, August 12, 2014 / Proposed Rules 47037 

1As noted above, the full count of firearms lost 

or stolen in transit that are not being reported to 

ATF is likely significantly higher than the number 

discovered through tracing data. ATF nonetheless 

relies on the average of 1,525 firearms per year for 

this cost calculation because it is the best 

information available. 

2See Footnote 1. 

theft or loss of a firearm to ATF and to 

the appropriate local authorities. 

Current regulations do not address 

reporting and recordkeeping 

requirements for firearms lost or stolen 

while in transit. This proposed rule 

specifies that when a firearm is stolen 

or lost in transit, for reporting purposes 

it is considered stolen or lost from the 

transferor’s/sender’s inventory. 

The GCA and the current 

implementing regulations have long 

required that a licensee must report the 

theft or loss of a firearm. This proposed 

rule specifies the licensee required to 

submit the required report if a firearm 

is lost or stolen in transit on a common 

or contract carrier from a licensee to 

another person. This proposed rule 

retains most of the existing 

requirements under 27 CFR part 478, 

subpart H, and the instructions for Form 

3310.11 with respect to how FFLs are to 

record the theft or loss of firearms from 

their inventories in the Record of 

Acquisition and Disposition. 

The proposed rule would reduce the 

current reporting burden on licensees 

when the theft or loss involves a 

registered NFA firearm. Currently, as 

discussed in section I, licensees submit 

Form 3310.11 to NTC to comply with 27 

CFR 478.39a, and, if the licensee is the 

person who lost the firearm, provide 

additional notification to the NFA 

Branch to comply with 27 CFR 479.141. 

In this proposed rule, a licensee, to meet 

27 CFR 478.39a requirements, 

completes and submits Form 3310.11 to 

NTC. If the theft/loss involves a 

registered NFA firearm; NTC would 

notify the NFA Branch. This would 

satisfy 27 CFR 479.141 notification 

requirements; licensees would no longer 

have to submit additional notification to 

ATF. 

Although there is no definitive count 

of the total number of firearms that were 

lost or stolen in transit, ATF can 

provide some sense of volume based on 

tracing data. From FY 2008 through FY 

2012, there was an average of 1,525 

crime gun traces per year where the 

firearm was traced back to an FFL that 

claimed it never received the firearm 

allegedly shipped to it, but no theft or 

loss was reported to ATF. These 

numbers reflect only those cases in 

which a firearms trace was initiated. 

The full count of firearms lost or stolen 

in transit that are not being reported to 

ATF is likely significantly higher than 

those traced. That ATF and local 

authorities do not have timely 

information about lost or stolen firearms 

adversely affects their investigation and 

tracing capabilities, and therefore poses 

public safety risks. 

Pursuant to the instructions on Form 

3310.11, a separate form is required for 

each theft/loss. ATF estimates that it 

takes an FFL 24 minutes to complete 

Form 3310.11; the postage cost to mail 

the form to NTC is 49 cents. If an FFL 

completed a separate Form 3310.11 for 

each of the average of 1,525 firearms 

that tracing data indicates are lost or 

stolen yearly but are not currently being 

reported,1 ATF estimates the total 

burden hours to be 610 (1,525 × 24/60), 

and the current estimated cost is 

$20,005. (Cost of completing the form = 

24 minutes at $31.57 per hour × 1,525 

= $19,258; Cost of mailing the form = 

$.49 × 1,525 = $747). ATF estimated the 

cost of the time for an FFL to complete 

Form 3310.11 using employee 

compensation data for December 2013 

as determined by the U.S. Department of 

Labor, Bureau of Labor Statistics (BLS). 

See Bureau of Labor Statistics, Employer 

Costs for Employee Compensation— 

December 2013, available at http://

www.bls.gov/news.release/pdf/ecec.pdf. 

The BLS determined the hourly 

compensation (which includes wages, 

salaries, and benefits) for civilian 

workers to be $31.57. 

The instructions on Form 3310.11 

also provide that FFLs must report 

firearms thefts/losses by telephone to 

ATF. ATF estimates that it takes an FFL 

24 minutes to call and provide the 

requisite information to ATF. If an FFL 

called ATF for each of the average of 

1,525 firearms that tracing data 

indicates are lost or stolen yearly but are 

not currently being reported,2 ATF 

estimates the total burden hours to be 

610 (1,525 × 24/60), and the current 

estimated cost is $19,258 (24 minutes at 

$31.57 per hour × 1,525). 

Therefore, the combined total 

estimated burden hours for submitting 

Form 3310.11 and calling ATF are 1,220 

(610 + 610). The combined total 

estimated costs for fulfilling those same 

two requirements are $39,263 ($20,005 

+ $19,258). 

Alternatives, such as the UCC variable 

approach discussed in Section III of this 

SUPPLEMENTARY INFORMATION, are more 

burdensome than the approach taken in 

this proposed rule. The UCC variable 

approach would be more burdensome 

for FFLs because, in each case, the FFLs 

would need to examine the terms of the 

individual contracts to determine how 

the contract allocates the risk of loss as 

between the two parties. In contrast, the 

proposed rule provides a simple, 

consistent rule so there is no basis for 

uncertainty or a need for additional 

review. For reporting purposes, the 

proposed rule assigns the theft/loss 

reporting requirement to the transferor/ 

sender. 

In addition, this proposed rule 

alleviates reporting burdens on 

licensees in that licensees need only 

report the theft or loss of a registered 

NFA firearm once to ATF, instead of 

reporting separately to NTC and the 

NFA Branch. As the licensee is basically 

providing the same information for both 

reporting requirements, ATF estimates 

that it takes the same amount of time 

and cost for postage, and uses the same 

hourly compensation as listed above 

(i.e., 24 minutes for time, 49 cents for 

postage, and $31.57 for hourly 

compensation). Currently, the NFA 

Branch receives notification on the 

theft/loss of a registered NFA firearm 

from approximately 60 licensees 

annually. ATF estimates the total 

burden hours to be 24 (60 × 24/60) and 

the total cost to be $787. (Cost of 

submitting the notification = 24 minutes 

at $31.57 per hour × 60 = $758; Cost of 

mailing the notification = $.49 × 60 = 

$29.00). Therefore, ATF estimates the 

savings to be these amounts. 

B. Executive Order 13132 

This proposed 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, ‘‘Federalism,’’ the 

Attorney General has determined that 

this proposed regulation does not have 

sufficient federalism implications to 

warrant the preparation of a federalism 

summary impact statement. 

C. Executive Order 12988 

This proposed 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. 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 


emcdonald on DSK67QTVN1PROD with PROPOSALS
47038 Federal Register / Vol. 79, No. 155 / Tuesday, August 12, 2014 / Proposed Rules 

jurisdictions. The Attorney General has 

reviewed this proposed regulation and, 

by approving it, certifies that this 

proposed rule will not have a significant 

economic impact on a substantial 

number of small entities. 

Under section 923(g)(6) of the GCA 

and its implementing regulation, 27 CFR 

478.39a, each FFL must report the theft 

or loss of a firearm from the licensee’s 

inventory or collection within 48 hours 

after the theft or loss is discovered. The 

licensee must report the theft or loss of 

a firearm to ATF and to the appropriate 

local authorities. This proposed rule 

clarifies that when a firearm is stolen or 

lost in transit, for reporting purposes, it 

is considered stolen or lost from the 

transferor’s/sender’s inventory. 

As discussed in section I, the current 

regulation requires that an FFL report 

thefts/losses telephonically to ATF and 

complete and submit to NTC a separate 

Form 3310.11 for each theft/loss. ATF 

estimates the time to complete the form 

as 24 minutes; the time for the 

telephone call as 24 minutes; and the 

postage cost as 49 cents. If an FFL called 

ATF to report the theft/loss, and 

completed a separate Form 3310 for 

each of the average of 1,525 firearms 

that tracing data indicates are lost or 

stolen yearly but are not currently 

reported, ATF estimates the total cost of 

completing and mailing the form and 

calling ATF to be $39,263. See section 

IV.A. for a full discussion of these costs. 

Therefore, this proposed rule will not 

impose a significant impact. 

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 

enterprises to compete with foreignbased enterprises 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. 2 U.S.C. 1532(a) and 1533(a). 

G. Paperwork Reduction Act 

This proposed rule would revise an 

existing reporting and recordkeeping 

requirement under the Paperwork 

Reduction Act. It also proposes to 

eliminate an existing reporting 

requirement. The current regulation at 

27 CFR 478.39a provides that each FFL 

must report the theft or loss of a firearm 

from the licensee’s inventory or 

collection within 48 hours after the theft 

or loss is discovered. Licensees must 

report to ATF such thefts or losses both 

telephonically and by preparing Form 

3310.11. The licensee must also report 

the theft or loss of a firearm to the 

appropriate local authorities. 

Pursuant to 27 CFR 479.141 and 

according to the instructions on Form 

3310.11, licensees reporting the theft or 

loss of a registered NFA firearm must 

provide additional notification to ATF. 

As discussed previously in section I, no 

form exists for this purpose, and the 

person reporting typically submits a 

letter with the required information to 

the NFA Branch. As part of this 

rulemaking, ATF is proposing to revise 

Form 3310.11 to capture the information 

required by 27 CFR 479.141. Therefore, 

a licensee would be able to satisfy the 

required notification to the NFA Branch 

by submitting Form 3310.11 to NTC, 

and NTC will notify the NFA Branch. 

Submitting Form 3310.11 will satisfy 

both requirements under 27 CFR 

478.39a and 27 CFR 479.141 with one 

notification. 

In addition, Form 3310.11 

instructions indicate that a licensee 

must reflect the theft or loss of a firearm 

as a disposition entry in the Record of 

Acquisition and Disposition required by 

subpart H of part 478. These 

instructions further state that the 

disposition entry should indicate 

whether the incident is a theft or loss, 

the ATF-issued Incident Report 

Number, and the Incident Number 

provided by the local law enforcement 

agency. Finally, the instructions 

indicate that should any of the firearms 

be located, they should be re-entered 

into the Record of Acquisition and 

Disposition as an acquisition entry. The 

proposed rule adds both sets of these 

instructions to the regulatory text in 27 

CFR 478.39a with modifications. See 

section III for full discussion of these 

revisions. 

The collections of information 

contained in 27 CFR 478.39a relate to 

Form 3310.11 and have been approved 

by the Office of Management and 

Budget under control number 1140– 

0039. This proposed rule specifies that 

when a firearm is stolen or lost in 

transit, for reporting purposes, it is 

considered stolen or lost from the 

transferor’s/sender’s inventory. 

ATF is submitting a request to revise 

currently approved OMB control 

number 1140–0039. ATF requests 

public comments on all aspects of this 

proposed revised collection, including 

comments that: 

• Evaluate whether the proposed 

collection of information is necessary 

for the proper performance of the 

functions of the agency, including 

whether the information will have 

practical utility; 

• evaluate the accuracy of the 

agency’s estimate of the burden of the 

proposed collection of information, 

including the validity of the 

methodology and assumptions used; 

• enhance the quality, utility, and 

clarity of the information to be 

collected; and 

• minimize the burden of the 

collection of information on those who 

are to respond, including through the 

use of appropriate automated, 

electronic, mechanical, or other 

technological collection techniques or 

other forms of information technology, 

e.g., permitting electronic submission of 

responses. 

The estimated total annual burden 

hours and related information (number 

of respondents, frequency of responses, 

costs, etc.) for the proposed revisions to 

Form 3310.11 appear below. 

OMB No.: 1140–0039. 

Estimated total annual reporting and/ 

or recordkeeping burden: 2,210 hours. 

Estimated average burden hours per 

respondent and/or recordkeeper: 24 

minutes. 

Estimated number of annual 

respondents and/or recordkeepers: 

1,525. 

Estimated annual frequency of 

responses: 1. 

Public Participation 

A. Comments Sought 

ATF is requesting comments on the 

proposed rule from all interested 

persons. ATF is also specifically 

requesting comments on the clarity of 

this proposed rule and how it may be 

made easier to understand. 

Comments submitted in response to 

ATF’s previous proposed rule relating to 

firearms stolen or lost in transit (Notice 

No. 902, August 28, 2000, 65 FR 52054), 

if applicable, must be resubmitted for 

purposes of this rulemaking proceeding. 

All comments must reference this 

document docket number (ATF 40P), be 

legible, and include your name and 

mailing address. ATF will treat all 

comments as originals and will not 

acknowledge receipt of comments. 


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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 font 

size (.17 inches), include your 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 font size (.17 inches); 

(2) Be on 81⁄2′′ × 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 

Brenda Raffath Friend, Office of 

Regulatory Affairs, 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, Transportation. 

Authority and Issuance 

Accordingly, for the reasons 

discussed in the preamble, 27 CFR part 

478 is proposed to be amended as 

follows: 

PART 478—COMMERCE IN FIREARMS 

AND AMMUNITION 

■ 1. The authority citation for 27 CFR 

part 478 is revised to read as follows: 

Authority: 5 U.S.C. 552(a); 18 U.S.C. 921– 

931; 44 U.S.C. 3504(h). 

■ 2. Revise § 478.39a to read as follows: 

§ 478.39a Reporting theft or loss of 

firearms. 

(a)(1) Each licensee shall report the 

theft or loss of a firearm from the 

licensee’s inventory (including any 

firearm which has been transferred from 

the licensee’s inventory to a personal 

collection and held as a personal 

firearm for at least 1 year), or from the 

collection of a licensed collector, within 

48 hours after the theft or loss is 

discovered. 

(2) When a firearm is stolen or lost in 

transit on a common or contract carrier, 

it is considered stolen or lost from the 

transferor’s/sender’s inventory for 

reporting purposes. Therefore, the 

transferor/sender of the stolen or 

missing firearm shall report the theft or 

loss of the firearm within 48 hours after 

the transferor/sender discovers the theft 

or loss. 

(b) Each licensee shall report the theft 

or loss by telephoning ATF at 1–888– 

930–9275 (nationwide toll free number), 

and by preparing and submitting to ATF 

a Federal Firearms Licensee Theft/Loss 

Report, ATF Form 3310.11, in 

accordance with the instructions on the 

form. The original of the report shall be 

retained by the licensee as part of the 

licensee’s required records. 

(c) When a licensee submits to ATF a 

Federal Firearms Licensee Theft/Loss 

Report, ATF Form 3310.11, for the theft 

or loss of a firearm registered under the 

National Firearms Act, this also satisfies 

the notification requirement under 

§ 479.141 of this chapter. 

(d) Theft or loss of any firearm shall 

also be reported to the appropriate local 

authorities. 

(e) Licensees shall reflect the theft or 

loss of a firearm as a disposition entry 

in the Record of Acquisition and 

Disposition required by subpart H of 

this part, not later than 7 days following 

discovery of the theft or loss. The 

disposition entry shall record whether 

the incident is a theft or loss, the ATFissued Incident Report Number, and the 

Incident Number provided by the local 

law enforcement agency. 

(f) Licensees who report the theft or 

loss of a firearm and later discover its 

whereabouts shall advise the Director 

that the firearm has been located, and 

shall re-enter the firearm in the Record 

of Acquisition and Disposition as an 

acquisition or disposition entry as 

appropriate. 

Dated: August 4, 2014. 

Eric H. Holder, Jr., 

Attorney General. 

[FR Doc. 2014–18874 Filed 8–11–14; 8:45 am] 

BILLING CODE 4410–FY–P 


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