Commerce 

in Firearms

in the

United

States

February 2000

Department of the Treasury

Bureau of Alcohol, Tobacco & Firearms

“Working for a Sound and Safer America

through Innovation and Partnership”
DEPARTMENT OF THE TREASURY

BUREAU OF ALCOHOL, TOBACCO AND FIREARMS

DIRECTOR

Washington, D.C., February 2, 2000

Dear Secretary Summers:

The Bureau of Alcohol, Tobacco and Firearms (ATF) submits this report on its activities

relating to the regulation of firearms during the calendar year 1999. This report is submitted in accordance with ATF’s mission of informing the public.

Sincerely,

Bradley A. Buckles,

Director

Commerce in Firearms in the United States

Table of Contents

Executive Summary .............................................................................................................................. 1

Introduction ........................................................................................................................................... 3

Part I - Manufacturers’ Firearms Entering into Commerce ............................................................... 5

Manufacturers’ Sales, Exports and Imports .................................................................................. 5

Secondhand firearms and other data limitations ................................................................... 5

U.S. as net importer. ................................................................................................................. 6

Net domestic sales .................................................................................................................... 6

Population growth and firearm sales ...................................................................................... 7

Handgun share of firearms sales ............................................................................................. 7

The Size of the U.S. Firearms Industry.......................................................................................... 8

The Value of New Firearms Sales Implied by Excise Tax Collections ......................................... 8

Prices of Small Arms ....................................................................................................................... 8

Part II - Important Developments in Regulatory Enforcement of the Federal Firearms Laws ..... 11

Recent Changes in the Licensing of Federal Firearms Dealers .................................................. 11

Licensed and Unlicensed Firearms Sellers ........................................................................... 11

Changes in the Federal Firearms Licensing System............................................................. 13

Impact of Licensing Reforms on the Size of the Licensee Population ............................... 14

Impact of the Licensing Reforms on the Characteristics of the Licensee Population ....... 16

Benefits Associated with the Licensing Reforms.................................................................. 17

Issues Concerning the Licensee Population.......................................................................... 17

New Methods of Keeping Firearms out of the Hands of Criminals and Others Not Legally

Entitled to Possess Them .............................................................................................................. 18

The Brady Act.......................................................................................................................... 18

The Illegal Market in Firearms .............................................................................................. 19

Crime Gun Tracing ................................................................................................................. 19

The crime gun tracing process.......................................................................................... 19

Access 2000: Electronic access to firearms industry records for tracing ..................... 20

The growth of the firearms tracing system ...................................................................... 20

Trace Analysis and the Identification of Firearms Traffickers............................................. 21

Crime Gun Traces as Indicators of Illegal Trafficking.......................................................... 22

Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms •Commerce in Firearms in the United States

February 2000 iii
Commerce in Firearms in the United States •Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms

iv February 2000

Distribution of Crime Gun Traces Among Licensed Retail Dealers .................................... 23

Time-to-Crime .................................................................................................................... 24

Limitations of the Firearms Tracing System ........................................................................ 25

Guns Reported Lost and Stolen as Indicators of Illegal Trafficking ................................... 27

Ensuring Compliance by Licensed Retail Dealers ...................................................................... 29

Industry Education and Partnerships ................................................................................... 29

Compliance Inspections and the Imposition of Penalties .................................................... 29

The Compliance Inspection Program: Focused Inspections............................................... 30

Results of Inspections ............................................................................................................. 30

Coverage of Field Inspectors .................................................................................................. 31

Table of Figures and Charts

Figure 1. Small arms: manufactures’ sales, exports and imports: 1947-98 ..................................... 6

Figure 2. Handguns: manufactures’ sales, exports and imports: 1947-98 ...................................... 6

Figure 3. Net domestic small arms and handgun sales: 1947-98 ..................................................... 6

Figure 4. Net domestic small arms and handgun sales per 100 adults: 1952-98 ............................ 7

Figure 5. Handgun share of total small arms sales ........................................................................... 7

Figure 6. Relative price of small arms................................................................................................ 9

Figure 7. Relative price of pistols and revolvers ................................................................................ 9

Figure 8. Number of Federal firearms licenses by year .................................................................. 14

Figure 9. Federal Firearms licensee population, FY 1975-FY 2000 ............................................... 15

Table 10. Change in licensee population in selected cities ............................................................. 16

Table 11. Composition of the licensee population........................................................................... 16

Table 12. Sources of firearms trafficking identified in ATF illegal trafficking

investigations involving youth and juveniles ................................................................... 22

Table 13. Distribution of traces among current dealers, 1998........................................................ 23

Table 14. Traces and average time-to-crime, 1998........................................................................... 24
Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms •Commerce in Firearms in the United States

February 2000 v

APPENDICES

Appendix A

STATISTICAL TABLES RELATING TO FIREARMS COMMERCE

A. Annual Firearms Commerce

A.1.1 Firearms Manufacturers’ Shipments, 1899-1998 ........................................................... A-3

A.1.2 Firearms Manufacturers’ Exports, 1899-1998 ................................................................ A-4

A.1.3 Firearms Imports, 1899-1999........................................................................................... A-5

A.1.4 Firearms Importation Applications, FY 1986-1999 ........................................................ A-6

A.2 Firearms and Ammunition Excise Tax Collections ........................................................ A-7

A.3 Producer Price Indices: Small Arms and Ammunition ................................................. A-8

B. Firearms Weapons Regulated By The National Firearms Act (NFA)

B.1National Firearms Act Application, Registration, Tax Revenues,

and Related Activities, 1979-1999 ....................................................................................A-9

B.2 National Firearms Act Transfer Applications, FY 1990-1999 ...................................... A-10

B.3 National Firearms Act Registered Weapons by State, FY 1999 ................................... A-11

B.4 National Firearms Act Special Occupational Taxpayers, FY 1980-1999..................... A-12

B.5 National Firearms Act Special Occupational Taxpayers (as of January 2000)

by State ............................................................................................................................A-13

C. Federal Firearms Licensees (FFLs)

C.1Federal Firearms Licensees (FFLs), Dealers and Pawnbrokers by State,

Number, and Rate per 100,000 Population ...................................................................A-14

C.2.1 Federal Firearms Licensees by State, FY 1997 .............................................................A-15

C.2.2 Federal Firearms Licensees by State, FY 1998 .............................................................A-16

C.2.3 Federal Firearms Licensees by State, FY 1999 .............................................................A-17

C.3 Federal Firearms Licensees Total, FY 1975-1999 ......................................................... A-18

C.4.1 License Applications and Application Inspections, FY 1969-1989.............................. A-19

C.4.2 License Applications and Application Inspections, FY 1990-1999.............................. A-20

C.5 Firearms Licensees and Compliance Inspections, FY 1969-1999 ............................... A-21

C.6 Actions on Federal Firearms Licenses, FY 1975-1999 ................................................. A-22

D. Traces of Recovered Firearms to Retail Federal Firearms Licensees

D.1Distribution of Traces Among Current Dealers, 1998 .................................................. A-23

D.2 Distribution of Traces for Guns with a Time-To-Crime of Three Years or Less ......... A-24

D.3 Traces and Average Time-to-Crime, 1998 ...................................................................... A-25

Note: Except as otherwise noted, dates refer to calendar years.
Commerce in Firearms in the United States •Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms

vi February 2000

Appendix B

Categories of Federal Firearms Licensees ........................................................................................B-1

Forms

ATF F 5300.27 (3-97) ....................................................................................................................B-2

ATF F 5300.26 (3-99) ....................................................................................................................B-3

ATF F 5300.25 (3-99) ....................................................................................................................B-4

ATF F 5300.11 (6-97) ....................................................................................................................B-7

ATF F 4473 (5300.9 PART I (10-98) .............................................................................................B-9

ATF F 4473 (5300.9) PART II (3-95) ..........................................................................................B-11

Brady Act States ...............................................................................................................................B-12

Bureau of Alcohol, Tobacco and Firearms Salaries & Expenses (S&E) Appropriation -

Historical Profile ........................................................................................................................B-13

Appendix C

An Overview of Federal Firearms Legislation in the United States ................................................C-1

Revenue Act of 1918 .....................................................................................................................C-1

The National Firearms Act of 1934 .............................................................................................C-1

The Federal Firearms Act of 1938 ...............................................................................................C-1

The Gun Control Act of 1968 .......................................................................................................C-1

Firearms Owners Protection Act of 1986 ....................................................................................C-3

Gun Free School Zones Act..........................................................................................................C-4

The Brady Handgun Violence Prevention Act of 1993 ...............................................................C-4

Violent Crime Control and Law Enforcement Act of 1994 ........................................................C-5
Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms •Commerce in Firearms in the United States

February 2000 1

EXECUTIVE SUMMARY

Each year, about 4-1/2 million new firearms, including approximately 2 million handguns, are

sold in the United States. An estimated 2 million secondhand firearms are sold each year as well.

A critical part of the mission of the Bureau of Alcohol, Tobacco and Firearms (ATF) is to prevent

diversion of these firearms from the legal to the illegal market, and to keep them out of the hands

of criminals, unauthorized juveniles and other prohibited persons under the Gun Control Act

(GCA). This report presents data on the firearms market and describes ATF’s regulatory enforcement programs to prevent firearms trafficking. Criminal investigation, which is also central to

ATF’s anti-trafficking work, is discussed in separate reports.1

Federal Firearms Licensees (FFLs). Because

firearms manufacturers, importers, distributors

and dealers produce and handle weapons,

Congress requires them to obtain licenses from

ATF. ATF screens applicants and oversees

licensees to ensure that they comply with the

firearms laws. From 1975 to 1992, the licensee

population grew from 161,927 to 284,117. In

1992, a large number of retail licensees were

not actively engaged in a firearms business.

Many of these used their licenses only to buy

firearms across State lines at wholesale prices.

The growing licensee population strained

enforcement resources, and the inactive licensees were holding licenses meant only for those

engaged in the firearms business. In 1993 and

1994, Congress added several safeguards to

ensure that only legitimate gun dealers obtain

Federal licenses, including increased fees and

certification requirements. Following ATF’s

implementation of those provisions, the number of Federal firearms licensees dropped from

284,117 in 1992 to 103,942 in 1999. Of these,

80,570 are retail dealers or pawnbrokers. ATF

is now able to utilize its resources more effectively because of the smaller licensee population, and this will help ensure that only legitimate businesses are licensed. Despite the

decline, 31 percent of retail licensees in 1998

had not sold a gun in the previous year.

Anti-Trafficking Enforcement. This report

highlights two developments in the past five

years that have brought law enforcement and

the firearms industry into a new era in reducing illegal access to guns. First, the Brady

Handgun Violence Prevention Act of 1993

prevents prohibited persons from buying guns

from licensed firearms dealers by requiring

these dealers to run background checks on

purchasers. From the establishment of the

National Instant Criminal Background Check

System (NICS) in November 1998 to December

31, 1999, over 10 million transactions have

been processed. Of these, the Federal Bureau

of Investigation (FBI) handled approximately

five million, and denied 89,836 unlawful firearms transfers. The States conducting background checks through the NICS processed the

other five milion and, the Department of

Justice estimates, denied at least as many

transfers.

Second, ATF has intensified its focus on illegal

gun trafficking, aided substantially by the

expanded tracing of crime guns by State and

local law enforcement officials, as well as

Congressionally mandated reporting of firearms stolen from FFLs. Tracing enables law

enforcement to solve individual crimes by

linking suspects to weapons and to identify

1 For recent reporting on criminal investigations involving the diversion of firearms by licensed and unlicensed

dealers, see the Youth Crime Gun Interdiction Initiative Performance Report, Department of the Treasury, Bureau of

Alcohol, Tobacco and Firearms, February 1999 (analyzing 648 illegal trafficking investigations involving youth and

juveniles and more than 26,900 firearms); and Gun Shows: Brady Checks and Crime Gun Tracing, Department of the

Treasury and Department of Justice, January 1999 (analyzing 314 illegal trafficking investigations involving gun

shows and more than 54,000 firearms).
Commerce in Firearms in the United States •Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms

2 February 2000

broader trafficking patterns. Trace information

can indicate, for instance, that a purchaser —

possibly a straw purchaser or other unlicensed

seller — is repeatedly buying firearms from a

dealer, or that crime guns from a particular

area are repeatedly originating from a particular licensed dealer.

In 1993, recognizing the significant potential of

tracing and pursuant to a Presidential directive,

ATF began a concerted effort to increase crime

gun tracing and trafficking enforcement and to

demonstrate the value of tracing to State and

local law enforcement agencies. In 1996,

President Clinton directed ATF to further

strengthen crime gun tracing and enforcement

efforts through the Youth Crime Gun Interdiction Initiative, a program in which a jurisdiction commits to tracing all recovered crime

guns. Seventeen cities participated in the first

year, and 38 are participating in FY 2000.

Since 1993, the number of law enforcement

trace requests has increased from 55,000 to

over 200,000.

As a result of increased crime gun tracing, ATF

has identified a series of trafficking indicators

that signal whether an FFL or retail purchaser

should be investigated for trafficking. These

indicators include multiple crime gun traces,

sometimes associated with multiple purchases,

short time-to-crime traces where the gun is

used in a crime within three years after its

retail sale, incomplete trace results due to an

unresponsive FFL, and reports of lost or stolen

guns, among others. Of course, crime gun

traces to a dealer do not necessarily indicate

illegal activity by the dealer or its employees.

Nevertheless, when trafficking indicators are

present, it is important to find out why guns

are falling into criminal hands and to take

action against all violations of law.

ATF’s tracing data and analysis has allowed ATF

to strengthen both its criminal and regulatory

enforcement programs. Most significantly for

regulatory enforcement purposes, ATF’s tracing

data has shown that a small number of dealers

account for a large proportion of the firearms

traced from crimes. Just 1.2 percent of dealers

—1,020 of the approximately 83,200 licensed

retail dealers and pawnbrokers—accounted for

over 57 percent of the crime guns traced to

current dealers in 1998. And just over 450

licensed dealers in 1998 had 10 or more crime

guns with a time-to-crime of three years or less

traced to them. ATF is now targeting enforcement and inspection resources at these dealers,

as well as making crime gun trace analysis

available to criminal investigators. By following up on crime gun trace information and

other trafficking indicators, ATF can determine

the reasons for diversion of firearms from this

relatively small proportion of dealers to the

illegal market and take regulatory and criminal

enforcement actions that will curb this illegal

flow of guns. This targeted enforcement should

yield significant results: preventing diversion

from this concentrated group of dealers will

curtail a significant portion of the illegal market in firearms.
Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms •Commerce in Firearms in the United States

February 2000 3

INTRODUCTION

In enacting the Gun Control Act of 1968, Congress declared that its purpose was to keep

firearms out of the hands of those not legally entitled to possess them, and to assist

Federal, State and local law enforcement officials in their efforts to reduce crime and

violence. Congress sought to achieve this without placing any unnecessary burden on

law-abiding citizens acquiring, possessing or using firearms for lawful activity. Congress

authorized the Secretary of the Treasury to enforce the laws regulating the manufacture,

importation, distribution and sale of firearms, and the laws prohibiting the criminal

possession and misuse of firearms. The Secretary also has jurisdiction over the administration and collection of the Federal excise taxes imposed on firearms and ammunition

under the Internal Revenue Code of 1986. In addition, the Secretary enforces the National Firearms Act (NFA), which requires the registration of certain weapons, such as

machineguns and destructive devices, and imposes taxes on the making and transfer of

such weapons. These authorities have been delegated to the Bureau of Alcohol, Tobacco

and Firearms.

This report is the first in an annual series

that will present and analyze data collected

by ATF and other Federal agencies relating

to the firearms industry and its regulation.

Appendices to this report contain statistical

tables relating to the firearms industry and

regulatory enforcement activities; information concerning ATF licenses, forms, resources, and programs; and a brief history

of the Federal firearms laws.

Part I of this report provides information

about firearms sales and prices. It shows

the flow of new firearms to the domestic

market over time by presenting data on

manufacturers’ reported sales, together

with reported exports and imports. Part I

also includes data on producer prices for

firearms. ATF is providing this information

to foster a better understanding of the

firearms market, the changing demand for

guns by individuals, and the broad characteristics of the regulated firearms industry.

Part II focuses on three topics of current interest: (1) changes in the size and characteristics

of the Federal firearms licensee population

resulting from licensing law reforms; (2) new

methods of keeping firearms out of the hands

of criminals and others not legally entitled to

possess them, including Brady Act background

checks, which prevent the illegal transfer of

firearms by licensed dealers to criminals and

other prohibited persons, and increased crime

gun tracing and analysis, which enables ATF to

identify licensed dealers that are the sources of

firearms used in crime and provides other

investigative leads to illegal traffickers; and (3)

how the licensing reforms, the Brady Act, and

the growth of crime gun tracing and analysis

have enabled ATF to strengthen its inspection

program.

Part II also highlights areas where enhanced crime gun tracing, regulatory enforcement, and voluntary industry compliance are needed. ATF’s strategic goal with

respect to the retail dealer population is to

prevent the diversion of firearms from legal

to illegal channels, and in particular, to

felons, juveniles and other prohibited persons. This requires a focused and fair

inspection program. If manufacturers and

dealers voluntarily comply with Federal

law, and ATF can deter violations and

correct problems by licensees through

industry education and regulatory actions,

guns can be kept from falling into the

wrong hands, community safety is improved, and costs to the nation’s criminal

justice system are reduced.

Although important strides have been made

toward preventing the illegal diversion of

firearms from retail dealers, much more

can be achieved.

PART I

Manufacturers’ Firearms Entering Into

Commerce

In enforcing the GCA, NFA, and firearms and ammunition excise tax provisions of the Internal

Revenue Code, ATF collects information on the manufacture, importation and exportation of

firearms. This section presents data on manufacturers’ reported sales, along with reported exports and imports, to show the flow of new firearms to the domestic market over time. It also

includes data for producer prices for firearms which are the best available price data and suggestive of the prices paid by consumers.

Manufacturers’ Sales, Exports

and Imports

Firearms manufacturers and importers are

required by law to maintain records of the

production, export, and import of firearms.

Manufacturers’ reports to ATF show the number of manufactured firearms “disposed of in

commerce” each calendar year, as well as the

number produced for export.2 The term “disposed of in commerce” refers to manufacturers’

final sales, which equal production of firearms

less the increase in manufacturers’ inventories

of firearms. Data from these reports are available by specific types of firearms and are reported in Appendix A. The manufacturers’

reports exclude production for the U.S. military, but include firearms purchased by domestic law enforcement agencies. The annual

volume of firearms imports by year is compiled

by ATF and the Bureau of the Census from U.S.

Customs data.3

Secondhand firearms and other data

limitations

Care must be taken in interpreting these data.

The data from the manufacturers’ reports do

not represent retail sales to the civilian market.

Rather, they represent firearms produced by

manufacturers for distribution, and include

production for law enforcement uses as well as

for civilians. Retail sales differ from the manufacturers’ net sales shown in the figures, because retail sales do not include firearms accumulated in wholesaler and retailer inventories

or sales to law enforcement agencies.4

 Further,

the data represent sales of new firearms and say

nothing about trade in secondhand firearms. A

recent survey suggests that trade in secondhand

firearms runs at about two million per year.5

These firearms may be sold in the primary or

secondary market.6 Although the data are

subject to limitations, some broad inferences

can be drawn.

2 The forms used by manufacturers to report “dispositions” and exports can be found in Appendix B.

3 See Appendix Tables A.1.1-A.1.4 for data on the number of domestically manufactured firearms, exports and imports. Import data were compiled by ATF by fiscal year prior to 1992, and by calendar year after 1992.

4 The data reported here also raise measurement concerns. The data from the manufacturers’ reports are compiled

without follow-up verification or cross checks so errors that occur in the filing of the reports result directly in errors

in the data. The measurement of exports is not exact because firearms licensees other than manufacturers also

export firearms. Finally, ATF began collecting the data from manufacturers in 1972; data prior to that were collected

through alternative sources and are not exactly comparable.

5 Guns in America, Results of a Comprehensive National Survey on Firearms Ownership and Use, Philip J. Cook and

Jens Ludwig, Police Foundation, 1996.

6 The primary market denotes sales occuring through FFLs. The secondary market denotes transactions through

unlicensed sellers.

Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms •Commerce in Firearms in the United States

February 2000 5
Commerce in Firearms in the United States •Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms

6 February 2000

Source: Bureau of Alcohol, Tobacco and Firearms; Bureau of the Census

1947 19521957 19621967 19721977 19821987 19921997

0

1

2

3

4

5

6

7

Figure 3.

Net domestic small arms and handgun sales: 1947-98

Millions of firearms

Net small arms sales

Net handgun sales

U.S. as net importer

Figure 1 shows the reported number of small

arms firearms (handguns, rifles and shotguns)

sold by manufacturers along with reported

exports and imports from 1947 to 1998.7

Figure 2 shows reported handgun sales, exports

and imports over the same period. In both

figures, imports generally have exceeded exports – that is, the U.S. is a net importer of

small arms. From 1990 to 1999, the data

suggest that net imports of rifles, shotguns and

1947 19521957 19621967 19721977 19821987 19921997

0

1

2

3

4

5

6

7

Manufacturers' sales

Imports

Exports

Figure 1.

Small arms: manufacturers' sales, exports and imports: 1947-98

Source: Bureau of Alcohol, Tobacco and Firearms; Bureau of the Census

Millions of firearms

handguns combined averaged as much as 1

million per year, with handguns accounting for

about half that amount.8

Net domestic sales

Figure 3 presents net domestic sales for total

small arms and for the subcategory of handguns – with net domestic sales defined as

manufacturers’ sales minus exports plus imports. Annual firearms sales in the United

States have trended up over the past 50 years,

surging in the early 1990s to a peak in 1993 of

nearly 8 million small arms, of which 4 million

were handguns. In recent years, sales have

fallen back to about half that peak level —

nearly 4-1/2 million annually — roughly the

same level as in the mid- to late-1980s. As

noted earlier, these sales are for new firearms.

Figure 3 shows that a significant part of the

increase in overall firearms sales in the period

from 1990 to 1993 can be attributed to an

increase in handgun sales. The surge in sales

may have resulted from efforts to purchase

firearms, particularly handguns, prior to enactment of the Brady Act. Another possible factor

is public perceptions of higher crime; both the

 7 As used in this discussion, the term “small arms” refers to handguns, rifles and shotguns, but excludes machine guns

and other weapons that are often classified as small arms. Import data used for Figures 1, 2 and 3 have been

adjusted for 1992 and earlier years to approximate calendar year values.

 8 ATF’s National Tracing Center data show that for fiscal years 1998 and 1999, 12.9 percent of traced crime guns were

of foreign manufacture.

1947 19521957 19621967 19721977 19821987 19921997

0

1

2

3

4

5

6

7

Manufacturers'

 handgun sales

Imports

Exports

Figure 2.

Handguns: manufacturers' sales, exports and imports: 1947-98

Millions of handguns

Source: Bureau of Alcohol, Tobacco and Firearms; Bureau of the Census
Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms •Commerce in Firearms in the United States

February 2000 7

1947 19521957 19621967 19721977 19821987 19921997

0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

Handguns, rifles

and shotguns

Handguns

Figure 4.

Net domestic small arms and handgun sales per 100 adults: 1952-98

Sales per 100 adults

Source: Bureau of Alcohol, Tobacco and Firearms; Bureau of Labor Statistics;

resident military population. Detailed population data are only available beginning in 1952.

 Bureau of the Census

The adult population is defined as the noninstitutional civilian population over 17 plus the

violent crime rate and the firearm homicide

rate peaked in the early 1990s.

A survey conducted in 1994 showed that the

total number of firearms in private hands today

is approximately 200 million.9 This finding is

consistent with the data on the flow of new

guns described above, recognizing that firearms have a long life.

Population growth and firearms sales

To examine the role of population growth in the

upward trend in firearms sales, Figure 4 presents net sales per 100 adult residents of the

United States. Because the adult population

has increased dramatically over the past 50

years, the long-term upward trend in sales

shown in Figure 3 is significantly muted in Figure

4. Still, sales per adult are higher today than in

the 1950s and early 1960s. Indeed, sales of

handguns per adult are now roughly twice the

level of forty years ago. The temporary spike in

the sales of handguns and other small arms in

the early 1990s is as evident in Figure 4 as in

Figure 3.

Handgun share of firearms sales

The relative mix of sales between long guns and

handguns has changed significantly over time,

with handguns accounting for a growing share

of total sales (Figure 5). The handgun share

trended up steadily from the late 1940s, when

handguns accounted for about 1 out of every 10

small arms sold, to the early 1990s, when

handguns accounted for roughly half of the

sales of small arms. The handgun share has

slipped back slightly in recent years, to about

40 percent of small arms sales. Handguns are

of particular interest because they are the

weapon of preference in the commission of gun

crimes and two-thirds of all homicides in the

United States are committed using handguns.10

 9 Guns in America.

10 Centers for Disease Control.

1947 19521957 19621967 19721977 19821987 19921997

0

10

20

30

40

50

Figure 5.

Handgun share of total small arms sales Percent of total

Source: Bureau of Alcohol, Tobacco and Firearms; Bureau of the Census
Commerce in Firearms in the United States •Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms

8 February 2000

The Size of the U.S. Firearms

Industry

The Census of Manufacturers for 1997 from the

Bureau of the Census shows that there were

191 small arms manufacturing companies with

combined total product shipments valued at

about $1.2 billion. Employment in small arms

manufacturing was 9,907 employees with a

total payroll of roughly $320 million. Small

arms production was concentrated in Connecticut (11 establishments with $227 million in

shipments, about 19 percent of the U.S. total)

and Massachusetts (5 establishments with $135

million in shipments, about 11 percent of the

U.S. total). By type of product, pistols and

revolvers accounted for about $289 million in

shipments; rifles, $373 million in shipments;

and single-barreled shotguns, $155 million in

shipments. A related industry – small arms

ammunition – had product shipments valued at

$859 million and employment of 6,863.11

The Value of New Firearms Sales

Implied by Excise Tax Collections

Information on the value of new firearms sales

also can be gleaned from the flow of excise tax

revenue (see Appendix Table A.2.1). Excise

taxes apply to all civilian sales of firearms as

well as those for Federal law enforcement, but

do not apply to sales to State and local law

enforcement agencies or the U.S. military. It

should also be noted that the reported excise

tax collections include taxes imposed on the

sale of some weapons (such as certain “black

powder” guns) that are not classified as “firearms” under the GCA.

Based on excise tax rates of 10 percent for

pistols and revolvers and 11 percent for other

firearms, excise tax collections indicate a value

of sales of roughly $1.045 billion for fiscal year

1996, with $386 million in handguns and $658

million in other firearms.12 Peak excise tax

collections occurred in fiscal year 1994. That

fact, coupled with the surge in sales reported by

manufacturers for calendar year 1993, suggests

that a large volume of sales occurred in the

overlapping period, the fourth quarter of 1993,

which included the period leading up to implementation of the Brady Act.

Prices of Small Arms

Comprehensive price data for the industry do

not exist. In particular, reliable data at the

retail or consumer price level are not available.13 However, as part of the Producer Price

Index (PPI), the Bureau of Labor Statistics

compiles prices for various firearms categories,

including the general category of “small arms”

and the more specific categories of “pistols and

revolvers,” “shotguns,” and “rifles, centerfire”.14

The price data correspond roughly to the

manufacturers’ data reported above and represent prices at the manufacturer or wholesale

level, not at the retail level.

11 By comparison, the Census of Manufacturers shows that other industries under ATF’s purview are much larger than

the firearms industry. In 1997, cigarette manufacturers had product shipments valued at $28.3 billion and distilleries, wineries and breweries together accounted for $27.7 billion in product shipments.

12 The implied total value of sales from the excise tax data is roughly consistent with the value of shipments from the

Census data.

13 While some private industry sources of price data exist, such as gun catalogues, these sources reflect suggested retail

prices that do not necessarily represent actual transaction prices.

14 See Appendix Table A.3 for PPI data.
Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms •Commerce in Firearms in the United States

February 2000 9

1947 19521957 19621967 19721977 19821987 19921997

60

70

80

90

100

110

120

Figure 6.

Relative price of small arms

Index 1982=100

Source: Bureau of Labor Statistics

Figure 6 shows the PPI for small arms relative

to the PPI for finished consumer goods excluding food and energy, for the period 1948 to

1998.15 The upward trend shows that, for most

of the period, the price of small arms increased

faster than the price of finished consumer

goods. The relative price leveled off in the late

1990s, showing that small arms prices recently

have increased at about the same rate as prices

for other finished consumer goods. Figure 7

shows the relative price for pistols and revolvers, a subcategory of small arms. After a

temporary surge in the late-1960s, producer

prices for pistols and revolvers increased relative to other finished consumer goods from the

mid-1970s to the mid-1980s. During the late1980s and early 1990s, however, prices for

pistols and revolvers rose slightly less than

those for other consumer goods, before flattening out in recent years.

1947 19521957 19621967 19721977 19821987 19921997

60

70

80

90

100

110

120

Figure 7.

Relative price of pistols and revolvers

Index 1982=100

Source: Bureau of Labor Statistics

Data for 1970 and 1971 are not available.

15 The PPI for consumer goods excluding food and energy is available beginning in 1974. The series was extended

historically by using the rates of change of the PPI for consumer goods excluding food prior to 1974.

PART II

Important Developments in Regulatory

Enforcement of the Federal Firearms Laws

Part II discusses changes in the Federal firearms licensee population resulting from reforms in

the Federal firearms licensing law; new methods of keeping guns out of the hands of criminals

and others not legally entitled to possess them; and how these two developments have strengthened ATF’s Federal firearms licensee inspection program.

Recent Changes in the Licensing of Federal Firearms Dealers

The Gun Control Act of 1968 established the first comprehensive Federal licensing system for

importers, manufacturers and dealers in firearms to the retail level. That system requires licensees to maintain detailed records on transactions in firearms, and subjects their business premises

to inspection by ATF. From 1968 until 1993, the process to obtain a Federal firearms license was

overly simple. The annual fee was only $10 for a license that authorized the person to ship,

transport and receive firearms in interstate commerce and engage in retail sales. The statute

required ATF to issue a license within 45 days to anyone who was 21 years old, had premises from

which they intended to conduct business and who otherwise was not prohibited from possessing

firearms. The statute was designed to limit the discretion of ATF in denying licenses. Over time

the numbers of licensees began to swell until 1992 when the numbers reached over 284,000.

The salient feature of a license that makes it

desirable is that it enables the holder to purchase firearms in interstate commerce from

other licensees. Consequently, even if a person

had no plans to engage in a full-fledged retail

business, the license was useful because license

holders could purchase firearms out of State

and sometimes at wholesale prices for themselves, friends or others. With the system

cluttered with vast numbers of individuals who

had no business, it was increasingly difficult for

ATF to police the system. While many simply

had a license they didn’t need or use, others

used this relatively anonymous process to

obtain a license that was used to purchase large

quantities of firearms that were then sold

without any records and the licensee would

disappear. By 1993, it was clear the process

had to be revisited. In 1993, Congress increased the license application fee to $200 for

three years. Again, in 1994, Congress imposed

requirements that applicants submit photographs and fingerprints to better enable ATF to

identify applicants and new criteria that ensures that the business to be conducted would

comply with all applicable State and local laws.

Licensed and Unlicensed

Firearms Sellers

ATF enforces the licensing provisions of the

GCA, which regulate the interstate movement

of firearms. Persons engaged in the business of

manufacturing, importing or dealing in firearms must obtain a license from the Secretary

of the Treasury. The license entitles the holder

to ship, transport and receive unlimited quantities of firearms in interstate or foreign commerce.

Federal law does not require all sellers of guns

to obtain a Federal firearms license. In fact,

the GCA specifically provides that a person who

makes “occasional sales, exchanges, or purchases of firearms for the enhancement of a

personal collection or for a hobby, or who sells

all or part of his personal collection of firearms” is not required to obtain a firearms

Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms •Commerce in Firearms in the United States

February 2000 11
Commerce in Firearms in the United States •Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms

12 February 2000

license.16 Non-licensed sellers are prohibited

from knowingly selling a firearm to a person

prohibited by law from possessing a firearm.

17

However, they are not required to conduct

Brady background checks, or maintain records

that permit the firearm to be traced if it is

recovered by law enforcement officials in

connection with a crime.

Both licensed and unlicensed gun sellers may

be sources of guns for felons, unauthorized

juveniles and other prohibited persons, and

may be the subjects of ATF criminal investigations involving firearms trafficking.18 ATF has

regulatory oversight over licensed dealers who

are required to keep records of transfers and

are subject to ATF inspection. There is no such

oversight over unlicensed sellers. An FFL must

maintain records of all acquisitions and dispositions of firearms and comply with applicable

State and local laws in transferring firearms.

Any unlicensed person who acquires a firearm

from an FFL must complete an ATF Form 4473,

Firearms Transaction Record, which includes

questions about whether the purchaser falls

into any of the GCA’s categories of prohibited

persons. An FFL must initiate a criminal

background check under the Brady Act prior to

transferring a firearm to an unlicensed purchaser. FFLs are subject to certain reporting

requirements regarding stolen firearms and

multiple sales of handguns.19 Finally, FFLs

must respond to requests within 24 hours from

ATF for information to assist in tracing a crime

gun. Unlicensed sellers have no such requirements.

ATF receives and examines applications for

Federal firearms licenses at its National Licensing Center (NLC), where it runs criminal

records checks and reviews documents for

problems that are apparent on the face of the

application, which it seeks to resolve before

referring the license application to the relevant

field office. Area supervisors in the field offices

review all new license applications. ATF conducts full field inspections of all new manufacturer, importer, and pawnbroker applicants. In

addition, full field inspections are conducted of

other new applicants based on such factors as

the applicant’s proximity to high crime areas,

State lines, or areas involved in illegal trafficking of firearms (either as a source or a recipient), and the applicability of zoning and other

local ordinances. In processing license applications, ATF’s objectives are to exclude unqualified applicants and to educate new licensees in

their legal obligations for operating a firearms

business. Where possible, ATF conducts a faceto-face interview with new applicants, except

those who apply for a collector’s license.20

16 See 18 U.S.C. § 921(a)(21)(C).

17 Persons prohibited under the Gun Control Act of 1968 from possessing firearms include persons who have been

convicted of a crime punishable by imprisonment for a term exceeding one year; fugitives from justice; persons who

are unlawful users of, or addicted to any controlled substance; persons who have been adjudicated as mental

defectives or have been committed to a mental institution; illegal aliens, or aliens who were admitted to the United

States under a nonimmigrant visa; persons who have been dishonorably discharged from the Armed Forces; persons

who have renounced their United States citizenship; persons subject to certain types of restraining orders; and

persons who have been convicted of a misdemeanor crime of domestic violence. The GCA also prohibits anyone

under a felony indictment from receiving, transporting or shipping firearms. Further, the GCA generally bans the

possession of handguns by any person under 18.

18 Youth Crime Gun Interdiction Performance Report, Department of the Treasury, Bureau of Alcohol, Tobacco and

Firearms, February 1999; and Gun Shows: Brady Checks and Crime Gun Traces, The Department of the Treasury and

Department of Justice, January 1999.

19 An FFL is required to report to ATF the theft or loss of a firearm from the FFL’s inventory or collection within 48

hours of discovering the theft or loss. The FFL also must report the theft or loss to the appropriate local authorities.

18 U.S.C. § 923(g)(6). The licensee shall report the theft or loss to ATF by telephoning a nationwide toll free number

and by completing ATF Form 3310.11, Federal Firearms Licensee Theft/Loss Report. 27 C.F.R. § 178.39a. An FFL

must file a multiple sales report (MSR) whenever the licensee sells two or more handguns to a single purchaser

within five consecutive business days.

20 A Type 03 Collector license allows the holder to receive, ship and sell in interstate commerce only firearms classified

as “curios and relics” under the Gun Control Act. See Appendix B, describing the different categories of Federal

firearms licenses under the GCA.
Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms •Commerce in Firearms in the United States

February 2000 13

The GCA places an affirmative obligation on

the Secretary to issue a Federal firearms license

to any applicant who pays the required fee and

meets the statutory criteria.

Changes in the Federal Firearms

Licensing System

In 1993, the Administration and Congress

focused on efforts to keep firearms out of the

hands of criminals and regulate the illegal

flow of guns. Noting that it was often easier

to acquire a gun dealer license than a driver’s

license, the President directed a review of gun

dealer licensing in August 1993, aimed at

ensuring that only those engaged in a legitimate firearms business are licensed. At that

time, ATF estimated that 46 percent of licensed dealers conducted no business at all,

but used their licenses to buy and sell firearms across State lines at wholesale prices,

often in violation of State and local zoning or

tax laws.

In modifying the Federal firearms licensing

system in 1993 and 1994, Congress added

more safeguards to ensure that only legitimate gun dealers obtained Federal licenses.

The 1993 Brady Act increased the dealer

licensing fee from $10 per year to $200 for

the first three years and $90 for each additional three-year period. The Brady Act also

requires license applicants to certify that they

informed their Chief Law Enforcement Officer (CLEO) of the locality in which their

premises will be located of their intent to

apply for a license. Subsequently, under the

Violent Crime Control and Law Enforcement

Act of 1994 (Crime Act), licensees were required to submit photographs and fingerprints as part of their application, and to

certify that their firearms business complied

with all State and local laws, including zoning regulations.

Following these changes, the NLC reviewed

the eligibility of the entire licensee population over a three-year period. As licensees

applied for renewal of licenses, they were

required to submit complete new application

packages with photographs, fingerprints and

information about the proposed business.

The majority of these renewal applications, as

well as new applications, were sent to field

offices where inspectors contacted the applicants. Beginning in 1993, ATF field offices

established partnerships with State and local

licensing and zoning authorities to disqualify

the licensees who were operating in violation

of State or local law and to ensure that applicants had notified local CLEOs of their intent

to enter the gun business.
Commerce in Firearms in the United States •Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms

14 February 2000

Impact of Licensing Reforms on the

Size of the Licensee Population

The 1993 and 1994 licensing reforms resulted

in a substantial decrease in the FFL population. The total number of licensees dropped

from 284,117 in 1992 to 107,554 in 1997,

when the three-year cycle of re-licensing

under the new laws was completed. The

initial decline was 49 percent or more for all

50 States.21 Figure 8 shows the decline in the

number of licensees, flagging the dates of

executive and Congressional actions.

100,000 A MJ J A S OND J F MA MJ J A S OND J F MA MJ J A S OND J F MA MJ J A S OND

150,000

200,000

250,000

300,000

350,000

286531

285046

283944283944

282952

283085

283925

284107

283193

281447

280132

279839

279401

273546

265738

260567

255979

250833

245000

239966

238395

233245

224967

223467

219040

208136

202349

201439

194126

191486

187931

183300

178928

174644

170332

165713

161066

154835

149178

144458

142974

135794

131370

127443

124286

Figure 8.

Number of Federal firearms licenses by year

April 1993 - December 1996

President's Initiative

Brady Act

New ATF licensing requirements

Source: Bureau of Alcohol, Tobacco and Firearms

1993 1994 1995 1996

Violent Crime Control and Law Enforcement Act

 of 1994

21 See A Progress Report: Gun Dealer Licensing & Illegal Gun Trafficking, Department of the Treasury, 1997.
Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms •Commerce in Firearms in the United States

February 2000 15

Since 1977, the licensee population has continued a slow decrease. As shown by Figure 9, as

of December 1, 1999, there were a total of

103,845 FFLs, the lowest number of licensees

since 1969.

The licensee population began to decline after

ATF instituted more rigorous scrutiny of applications and the license fee was increased from

$30 to $200 for a three-year license in 1993. By

November 1994, the number of licensees had

dropped to 240,000, an average monthly decrease

of 3,600 licensees.

A number of licensees appear to have dropped

out because of non-compliance with State and

local ordinances. This is consistent with ATF’s

1993 finding that while 35 percent of dealers

1976 78 80 8284 86 88 90 9294 96 98 2000

0

50

100

150

200

250

300

161.927

165.697

173.484

169.052

171.216

174.619

190.296

211.918

230.613

222.443

248.794

267.166

262.022

272.953

264.063

269.079

276.116

284.117

283.925

250.833

187.931

135.794

107.554

105.536

103.942

103.845

Thousands

Figure 9.

Federal firearms licensee population, FY 1975-FY 2000*

*Figures as of December 1, 1999

Source: Bureau of Alcohol, Tobacco and Firearms
Commerce in Firearms in the United States •Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms

16 February 2000

were required to have a State or local firearms

license, only about 60 percent of these were

complying with the requirement. 22 Within a year

of the Crime Act’s passage, which required that

licensees certify compliance with all applicable

State and local ordinances, license holders

declined, at an average monthly drop of 5,000,

to approximately 191,000. The ATF-local law

enforcement partnerships established to enforce this requirement brought about significant declines in many cities, as is illustrated in

Table 10.

Table 10

Change in licensee population in selected cities

CITY Year Number Year Number Percent Change

Baltimore, MD 1993 114 1996 62 - 46

Berkeley, CA 1993 34 1996 2 - 94

Boston, MA 1994 119 1996 36 - 70

Denver, CO 1/1994 372 7/1994 139 - 63

Detroit, MI 1992 468 1996 92 - 80

Los Angeles, CA 1993 4436 1996 2247 - 49

Louisville, KY 1993 450 1996 165 - 63

New Orleans, LA 1995 90 1996 39 - 57

New York, NY 1993 987 1996 259 - 74

Pueblo, CO 1993 109 1996 44 - 60

San Antonio, TX 1994 1108 1996 528 - 52

San Francisco, CA 1993 155 1996 10 - 94

Washington, D.C. 1993 55 1997 11 - 80

Source: Bureau of Alcohol, Tobacco and Firearms

Impact of the Licensing Reforms on

the Characteristics of the Licensee

Population

Table 11 shows the composition of the licensee

population, as of October 1999.

Table 11

Type of Licensee Number Percent

Firearms manufacturers 1,639 2

Ammunition manufacturers 2,247 2

Retail gun dealers 71,290 69

Pawnbrokers 10,035 10

Collectors of Curios and Relics 17,763 17

Importers and Others 968 <1

Source: Bureau of Alcohol, Tobacco and Firearms

In 1998, ATF conducted an inspection program,

“Snapshot”,23 which involved inspecting a

random sample of retail dealers and pawnbrokers. This initiative disclosed that 44 percent of

dealers operated out of commercial premises

and 56 percent out of residential premises

(down from 74 percent in 1992). Twenty-five

percent of the 44 percent in commercial premises were gunshops or other shops whose

primary business was sporting goods, hardware

and the like. The remainder were located in

businesses such as funeral homes and auto

parts stores, and other businesses not normally

associated with a gun business. About 68

percent of the residential dealers were located

22 See Operation Snapshot: An Analysis of the Retail Regulated Firearms Industry, Department of the Treasury, Bureau

of Alcohol, Tobacco and Firearms, 1993 (“Snapshot 1993”).

23 See Operation Snapshot: An Analysis of the Retail Regulated Firearms Industry, Department of the Treasury, Bureau

of Alcohol, Tobacco and Firearms, 2000 (“Snapshot 2000”). Snapshot is a survey conducted by ATF of a randomly

selected sample of the retail dealer population, conducted for the first time in 1992 (retail dealers only), and conducted again in 1998 (retail dealers and pawnbrokers). Snapshot is able to identify characteristics of the licensee

population with a precision rate of plus/minus five percent and a confidence level of 95 percent. Thus, if Snapshot

indicates that 26 percent of dealers operate from a commercial location, the true percentage rate of dealers having

commercial premises is somewhere between 21 percent and 31 percent of the entire population.
Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms •Commerce in Firearms in the United States

February 2000 17

in rural areas in 1998. At that time, about 36

percent of pawnbrokers and about 15 percent

of other retail dealers were located in urban

areas. Finally, about 5 percent of the total

dealer population were gunsmiths.

Benefits Associated with the

Licensing Reforms

The sharp decline in the number of licensees

produced some important benefits. First,

because of the reduction in the number of

dealers, ATF has been able to focus its inspection efforts on viable dealers. ATF currently

has just over 440 field inspectors. They

perform regulatory compliance work relating

to each of the industries regulated by ATF,

including alcohol, tobacco and explosives, as

well as firearms. The percentage of full time

equivalent (FTE) staff positions (measured in

annual hours) allocated to the firearms program gradually increased from 30 percent in

1991 to a high of 58 percent in 1996. In 1997

and 1998, the allocation dropped to 46 percent because inspectors were redirected to

ATF’s explosives program following the 1995

Oklahoma City bombing. For FY 1998, approximately 200 FTE inspector positions were

dedicated to firearms field inspections. Other

inspectors operate the NLC and support

firearms programs in a variety of ways. The

size of the inspection workforce has not

changed significantly since ATF was established as a bureau of the Department of the

Treasury in 1972. The number of licensees,

on the other hand, grew from about 161,000

in 1975, to about 284,117 in 1992. The reduction of licensees to closer to 100,000 will

enable ATF to inspect a higher proportion of

licensees.

In addition, the licensing reforms have reduced the number of dealers that cannot be

located immediately during a crime gun trace

because they have moved their residence, or

that are otherwise non-compliant with

recordkeeping requirements. On the other

hand, these steps have had no noticeable

effect on law-abiding citizens’ access to firearms. There are still many licensed dealers,

about one for every 2,487 adults in the United

States. Moreover, as shown in the first section of this report, the number of new guns

purchased in the last several years is fairly

close to the average level of gun sales in the

1980’s.

Issues Concerning the Licensee

Population

There remain, however, a significant number

of federally licensed dealers that are not

active dealers. As stated above, in 1992, 46

percent of the licensees had not sold a gun in

the previous year.24 Although by 1998, this

figure had dropped to 31 percent, it is still

troubling.25 The law provides that only persons who engage in the business of dealing in

firearms within a reasonable period of time

after obtaining a license may be licensed as

firearms dealers.

24 Snapshot 1993.

25 Snapshot 2000.
Commerce in Firearms in the United States •Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms

18 February 2000

NEW METHODS OF KEEPING FIREARMS OUT OF THE HANDS OF

CRIMINALS AND OTHERS NOT LEGALLY ENTITLED TO POSSESS THEM

Over the past five years, ATF’s ability to deny illegal access to firearms by felons, unauthorized juveniles and

other persons prohibited from possessing them has significantly increased. Two developments in the

regulation of firearms commerce have brought law enforcement and the firearms industry into a new era in

reducing illegal access to guns. First, the Brady Act prevents prohibited persons from buying guns from

licensed firearms dealers. Second, ATF’s focus on trafficking enforcement helps prevent prohibited persons

from obtaining firearms in the illegal market. ATF’s trafficking strategy rests on a number of important

sources of information, principally crime gun tracing, but also requires reporting by Federal firearms

licensees of multiple sales of handguns and lost or stolen guns and traditional criminal investigative techniques, such as debriefing arrestees, confidential informants and undercover operations.

From its effective date on February 28, 1994,

through November 29, 1998, the Brady Act

required background checks for handgun

purchases only. These background checks were

done by individual State or local Chief Law

Enforcement Officials, usually the local sheriff’s

office or police department.26 On November 30,

1998, the permanent provisions of the Brady

Act went into effect. Under the provisions, the

Brady Act applies to all firearms — long guns

as well as handguns — transferred by an FFL to

an unlicensed individual. With the creation of

the FBI’s National Instant Criminal Background Check System (NICS), a computerized

background check is now conducted to determine if a would-be gun buyer is legally permitted to acquire a gun. Depending on the individual State, FFLs may contact NICS directly,

or through their State point of contact. In its

first year of operation, NICS processed more

than 10 million background checks in connection with firearms transfers. Of these, the FBI

handled approximately five million, and denied

89,836 unlawful firearms transfers. States

conducting background checks through the

NICS processed the other five million and, the

Department of Justice estimates, denied at least

as many transfers.27

26 For a report on the first phase of the Brady Act implementation, see Presale Handgun Checks, the Brady Interim

Period, 1994-98, Department of Justice, Bureau of Justice Statistics, June 1999. Although the Supreme Court struck

down part of interim Brady in Printz v. United States, 521 U.S. 898 (1997), finding that the background check

requirement imposed on CLEOs unconstitutionally compelled State officers to execute Federal laws, most CLEOs

continued to voluntarily do background checks.

27 For reports on Brady Act enforcement activity, see Implementation of the Brady Law, Department of the Treasury,

Bureau of Alcohol, Tobacco and Firearms, September 1999; and the National Instant Criminal Background Check

System (NICS): The First Seven Months (November 30, 1998-June 30, 1999), Department of Justice, Federal Bureau

of Investigation.

Both Brady and the intensive focus on trafficking are relatively new, and are already providing significant benefits to law enforcement.

This report focuses primarily on the evolution

of the tracing system and the use of trafficking

indicators to focus ATF inspections on those

licensed retail gun dealers that are the source

of firearms used and possessed by felons,

juveniles and others barred by law from possessing a firearm. It is, however, important to

understand how these two tools in combination

affect criminal access to guns and, therefore, a

brief description of the Brady Act is useful.

The Brady Act

The Brady Act for the first time empowered FFLs

and law enforcement to combat the practice of

“lying and buying.” Although the GCA made it

illegal for felons and other prohibited persons to

possess or acquire firearms, FFLs had no way to

know whether a customer was lying about his

background in order to get a gun. The Brady Act

changed this by requiring that FFLs check with

law enforcement officials before transferring a

firearm to an unlicensed individual. In this way,

the Brady Act eliminated the “honor system” in

firearms purchases, requiring verification of

statements made by prospective purchasers that

they are legally entitled to obtain a firearm.
Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms •Commerce in Firearms in the United States

February 2000 19

The Illegal Market in Firearms

Buyers denied firearms through Brady background checks, however, can still seek to obtain

firearms illegally from unlicensed sellers or

corrupt licensed gun dealers. Since licensed

dealers have access to a large supply of firearms, they represent a significant trafficking

threat if they violate the law. Prohibited persons may also obtain firearms from licensed

dealers by using a “straw purchaser.”28 They

can get guns illegally from unlicensed sellers,

including traffickers who specifically seek to

sell to criminals and unauthorized juveniles,

and other individuals selling guns through

advertising or on the streets. Unlicensed sellers

do not have the same obligations as licensed

firearms dealers to perform Brady checks and

maintain records available for examination by

ATF and other law enforcement agencies.

Prohibited persons can also steal guns for their

own use, from licensed or unlicensed sellers or

from the residences of gun owners. Numerous

ATF trafficking investigations involving licensed and unlicensed sellers and gun shows

show that illegally trafficked firearms end up as

crime guns.29

One available strategy to reduce access by

prohibited persons is to focus on illegal sellers,

in order to reduce the supply of firearms available to illegal buyers who are denied access to

firearms by Brady checks. Until recently,

however, there were few methods of identifying

the sources of firearms to criminals, and this

enforcement strategy was not widely used.

This has changed with the rise of crime gun

tracing. Crime gun trace information identifies

the sources of guns used in crime and recovered by police and other law enforcement

agencies. Analysis of crime gun traces can

reveal, in combination with other investigative

techniques, both FFLs and non-FFLs actively

engaged in illegally transferring firearms to

prohibited persons. This information provides

the basis for an anti-trafficking enforcement

strategy, including both regulatory and criminal

enforcement.

Crime Gun Tracing

Tracing is the systematic tracking of the movement of a firearm recovered by law enforcement officials from its first sale by the manufacturer or importer through the distribution

chain (wholesaler/retailer) to the first retail

purchaser. Crime gun trace information is used

for three purposes: (1) to link a suspect to a

firearm in a criminal investigation; (2) to

identify potential traffickers, whether licensed

or unlicensed sellers; and, (3) when sufficiently

comprehensive tracing is undertaken by a given

community, to detect in-state and interstate

patterns in the sources and kinds of crime

guns.

The crime gun tracing process

A crime gun trace begins when a law enforcement official recovers a firearm, usually from a

crime scene or from the possession of a suspect, felon or other prohibited person, and the

law enforcement agency having jurisdiction of

the case submits a trace request to ATF’s National Tracing Center (NTC). Although the NTC

traces recovered crime guns for local, State,

Federal and international law enforcement

agencies, most traces are performed for local

law enforcement agencies. The trace request

contains information pertaining to the identification of the firearm;30 the individual possessing or associated with the firearm, if known;

recovery location; and the offense that brought

the crime gun to the attention of law enforcement authorities.

28 A “straw purchase” occurs when the actual buyer of a firearm uses another person, the “straw purchaser,” to execute

the paperwork necessary to purchase a firearm from an FFL. The “straw purchaser” violates the GCA by making a

false statement with respect to information required to be kept in the FFL’s records.

29 Youth Crime Gun Interdiction Performance Report, Department of the Treasury, Bureau of Alcohol, Tobacco and

Firearms, February 1999; and Gun Shows: Brady Checks and Crime Gun Traces, Department of the Treasury and

Department of Justice, January 1999.

30 A trace request identifies the firearm by serial number, firearm type, manufacturer or importer and caliber.
Commerce in Firearms in the United States •Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms

20 February 2000

This data is entered into ATF’s automated

Firearms Tracing System (FTS) at the NTC.

The NTC then conducts a trace by first checking the records of out-of-business FFLs, which

are preserved separately on microfiche and

accessed through an auxiliary indexing system

of firearm serial numbers, and by checking

multiple sales records. If these steps do not

identify the first retail transaction, the NTC

contacts the manufacturer or importer, and

tracks the recovered crime gun through the

distribution chain (wholesaler and retailer) to

the retail dealer, requesting the dealer to examine his records to determine the identity of the

first retail purchaser. While manufacturers and

others in the distribution chain are aware of

traces about which they are contacted, they are

not currently informed about traces resolved by

searches of the out-of-business records or

multiple sales report information.

Results are sent back to the trace requester and

entered into the FTS, where they are accessible

by NTC personnel. They are also entered in

On-Line LEAD, a daily extract from the FTS

that can be used to find repeat sellers and

buyers of crime guns. In November 1999, ATF

extended access to On-Line LEAD to all ATF

field offices, where the system can also be used

by Federal, State and local firearms task forces.

The average time it takes at present for the NTC

to complete a trace to the first retail purchaser

is 11.4 days. It takes another one to three days

for the trace information to be delivered by

mail to the State or local agency requesting the

trace. Urgent traces are handled in an expedited manner.

Access 2000: Electronic access to firearms

industry records for tracing

In order to speed up and reduce the cost of

tracing and to reduce its burden on the firearms industry, ATF has developed a computer

program called Access 2000 for accessing

manufacturer, wholesaler and importer information about firearms that are the subject of

trace requests. ATF does not have access to

individual purchaser information. Access 2000

allows ATF to trace firearms from manufacturers and importers 24 hours a day, 7 days a

week, because the manufacturer, wholesaler or

importer downloads sales records into a computer on its premises that ATF can immediately

access. It saves the licensee money because it

does not have to make employees available to

do traces. Currently, five firearms licensees

have adopted this voluntary system, which

shortens the trace time by an average of five

days.31 Additional licensees are expected to

participate.

The growth of the firearms tracing system

Until recently, law enforcement agencies did

not routinely trace recovered firearms unless

they needed the information to solve a particular crime. Beginning in 1993, pursuant to a

Presidential directive to improve tracing of

crime guns recovered by law enforcement and

Federal-State efforts against illegal gun traffickers, ATF made a concerted effort to increase

crime gun tracing and trafficking enforcement,

and to demonstrate to State and local law

enforcement agencies that crime gun trace

information could supply valuable investigative

and strategic information about illegal sources

of firearms at the local level. The Department

of Justice’s Bureau of Justice Assistance also

began to support training of State and local

agencies in tracing firearms.

In 1994, Congress amended the GCA to require

licensees to respond to ATF crime gun trace

requests within 24 hours of being notified of

the request. Previously, cooperation had been

voluntary. In 1996, President Clinton directed

ATF to strengthen crime gun tracing and enforcement efforts through the Youth Crime Gun

Interdiction Initiative (YCGII), an enforcement

program that includes commitments to trace all

recovered crime guns in a particular jurisdiction and to provide standardized analysis of

trace information for law enforcement. Seventeen cities participated in the first year and 38

cities are participating in FY 2000. Also, during

31 The licensees using Access 2000 are: RSR Wholesale; H&R, 1871; Smith & Wesson; Davidson Wholesale; and

Taurus International Firearms.
Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms •Commerce in Firearms in the United States

February 2000 21

the past five years, foreign countries began to

ask the NTC to trace firearms in significant

numbers.

As a result of all of these efforts, the number of

firearms traced has steadily increased. In 1993,

there were approximately 55,000 trace requests;

in 1999, there were over 200,000, including

over 11,000 trace requests from foreign countries.

Trace Analysis and the Identification

of Firearms Traffickers

By 1990, some ATF field offices were developing methods of analyzing trace information to

detect patterns in the local supply of crime

guns. ATF, the Boston Police Department and

academic researchers worked together in

Boston to analyze traces of all recovered crime

guns, not only maximizing the number of

investigative leads to illegal suppliers, but also

enabling law enforcement officials to determine

an overall picture of the kind and sources of

crime guns in their jurisdiction.32 The Boston

tracing effort revealed that a surprising proportion of crime guns, especially those used by

juveniles and youth, moved rapidly from a local

retailer’s shelf to recovery by law enforcement

officials, an indicator of illegal trafficking

known as short “time-to-crime.”33

In 1997, the YCGII confirmed these basic

findings for the 17 participating YCGII cities,

concluding that firearms rapidly diverted from

first retail sales at federally licensed gun dealers

to an illegal market accounted for between 30

percent and 54 percent of the firearms that

police recovered from youth aged 18 to 24 in

those cities, and from 22 percent to 43 percent

of firearms recovered from juveniles. YCGII

trace analysis also found that in 15 of the 17

communities, the majority or single largest

supply of crime guns successfully traced came

from retail sources within the State. Jersey

City, N.J. and Washington, D.C. were the exceptions.34

The systematic use of firearms tracing to identify licensees that are associated with diversion

of firearms to the illegal market on a nationwide basis began with a joint Northeastern

University-ATF study published in 1995. The

study’s goal was to develop potential crime gun

trafficking indicators. This study concluded

that a very small percentage of licensees were

associated with a high volume of the total

number of crime guns traced in 1994 to active

dealers, and affirmed time-to-crime as a potential indicator of firearms trafficking.35

With substantially increased tracing by State

and local law enforcement officials, as well as

multiple sales and stolen gun reports, the trace

information available to be analyzed in ATF’s

Firearms Tracing System eventually reached a

sufficient level to strengthen significantly ATF’s

inspection program and to provide vital new

support to ATF and State and local criminal

investigations. ATF established the Crime Gun

Analysis Branch (CGAB) in 1997 to support

regulatory and criminal investigations of illegal

trafficking activity and armed criminals, using

32 The Boston anti-trafficking strategy was part of the Boston Gun Project’s Operation Ceasefire, developed by David

M. Kennedy and supported by the Department of Justice’s National Institute of Justice. See David M. Kennedy et.

al., Youth Violence in Boston: Gun Markets, Serious Youth Offenders, and a Use-Reduction Strategy, 59 Law and

Contemp. Probs. 147, 169-180 (1996).

33 Time-to-crime is the time between the initial retail sale of a firearm by an FFL and its recovery as a crime gun or as

the subject of a trace request. Time-to-crime of three years or less is considered an important trafficking indicator

because it suggests that the firearm was rapidly diverted to the illegal market. Since identifying information, such

as the original purchaser’s address, is more likely to still be accurate, short time-to-crime traces generally offer the

most productive investigative leads.

34 Youth Crime Gun Interdiction Initiative, Crime Gun Trace Analysis Reports: The Illegal Youth Firearms Market in 17

Communities, Department of the Treasury, Bureau of Alcohol, Tobacco and Firearms, July 1997.

35 Glenn L. Pierce, LeBaron Briggs, David A. Carlson, The Identification of Patterns in Firearms Trafficking: Implications

for Focused Enforcement Strategy, Center for Criminal Justice Policy Research, College of Criminal Justice, Northeastern University, December 1995 (commissioned by ATF).
Commerce in Firearms in the United States •Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms

22 February 2000

analysis of crime gun traces, multiple sale and

stolen gun reports and other information. In

conjunction with Northeastern University, the

CGAB began developing a series of trafficking

indicators, including:

• multiple crime guns traced to an FFL or

first retail purchaser;

• short time-to-crime for crime guns traced

to an FFL or first retail purchaser;

• incomplete trace results, due to an unresponsive FFL or other causes;36

• significant or frequently reported firearms

losses or thefts by an FFL;

• frequent multiple sales of handguns by an

FFL or multiple purchases of firearms by a

non-licensee, combined with crime gun

traces;37 and

• recovery of firearms with obliterated serial

numbers.

New indicators continue to be developed by the

CGAB and Northeastern University. For instance, the concentration of an FFL’s crime gun

traces in a particular geographic area in another State may be a useful indicator. While a

trafficking problem can be suggested by these

indicators, further information, which can be

gathered through regulatory inspections and

criminal investigations, is required to determine whether trafficking has actually occurred,

what form it is taking and who is responsible.

Crime Gun Traces as Indicators of

Illegal Trafficking

As stated above, crime gun traces do not necessarily indicate illegal activity by licensed dealers or their employees. Guns purchased from

FFLs may have been unknowingly sold by the

Table 12.

Sources of firearms trafficking identified in ATF illegal trafficking investigations involving youth

and juveniles

Note: Since firearms may be trafficked along multiple channels, an investigation may be included in more

than one category.

Source Number %

Firearms trafficked by straw purchaser or straw purchasing ring 330 50.9%

Trafficking in firearms stolen from FFL 134 20.7%

Trafficking in firearms by unregulated private sellers* 92 14.2%

Trafficking in firearms stolen from residence 88 13.6%

Trafficking in firearms at gun shows, flea markets, auctions,

or in want ads and gun magazines 64 9.9%

Firearms trafficked by licensed dealer, including pawnbroker 416.3%

Street criminals buying and selling guns from unknown sources 26 4.0%

Trafficking in firearms stolen from common carrier 16 2.5%

Other sources (e.g. selling guns over internet, illegal pawning) 9 1.4%

*as distinct from straw purchasers and other traffickers

Source: Youth Crime Gun Interdiction Initiative Performance Report, Department of the Treasury, Bureau of

Alcohol, Tobacco and Firearms, February 1999.

36 Trace results are incomplete when the firearm cannot be tracked from the manufacturer or importer to an individual retail purchaser. Multiple incomplete trace results are considered a trafficking indicator because they may

indicate that (a) the firearm was stolen from interstate shipment (and thus never reached the retailer); (b) the

receiving FFL is not telling the truth about not receiving the firearm; or (c) the shipping FFL is not telling the truth

about who the FFL shipped the firearm to.

37 ATF experience has shown that multiple sales or purchases are a significant trafficking indicator; crime guns

recovered with obliterated serial numbers are frequently purchased in multiple sales.
Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms •Commerce in Firearms in the United States

February 2000 23

Table 13

Distribution of traces among current dealers, 1998

Number of

traces to Dealers Traces

a dealer Percent Number Percent Number

All Retail Dealers (Retail Gun

Dealers and Pawnbrokers) 0 or more 100.0% 83,272 ... ...

1 or more 14.3% 11,947 100.0% 55,990

2 or more 7.2% 6,056 89.5% 50,099

5 or more 2.7% 2.253 71.7% 40,139

10 or more 1.2% 1,020 57.4% 32,147

25 or more 0.4% 332 39.6% 22,168

50 or more 0.2% 132 27.2% 15,220

Retail Gun Dealers 0 or more 100.0% 73,016 ... ...

1 or more 11.8% 8,651 100.0% 40,809

2 or more 5.6% 4,114 88.2% 36,272

5 or more 2.8% 1,517 72.5% 29,599

10 or more 1.0% 713 59.7% 24,360

25 or more 0.3% 252 43.2% 17,630

50 or more 0.1% 99 30.4% 12,399

Pawnbrokers 0 or more 100.0% 10,256 ... ...

1 or more 32.1% 3,296 100.0% 15,181

2 or more 18.9% 1,942 91.1% 13,827

5 or more 7.2% 736 69.4% 10,540

10 or more 3.0% 307 51.3% 7,787

25 or more 0.8% 85 29.9% 4,638

50 or more 0.3% 33 18.6% 2,821

Sources: Data, Bureau of Alcohol, Tobacco and Firearms; Tables prepared by Glenn L. Pierce, Northeastern University, College of Criminal Justice, Center for Criminal Justice Policy Research.

FFL to straw purchasers, resold by an innocent

purchaser or by an illegal unlicensed dealer,

otherwise distributed by traffickers in firearms,

bought or stolen from FFLs or residences, or

simply stolen from its legal owner. Nevertheless, when trafficking indicators are present, it

is important to find out if the FFL or someone

else is violating the law. This requires either a

regulatory inspection or a criminal investigation. Table 12 shows a breakdown by trafficking channel of ATF illegal trafficking investigations involving youth and juveniles conducted

between July 1996 and December 1998.38

Over a quarter of these investigations were

initiated based on crime gun trace information,

and many more of the investigations used

tracing in the investigation.

Distribution of Crime Gun Traces

Among Licensed Retail Dealers

A small number of licensed dealers account for

a large proportion of the firearms traced. As

Table 13 shows, in 1998, among all current

dealers, 14 percent had one or more firearms

traced to them in that year; about 32 percent of

the pawnbrokers and about 12 percent of other

retail dealers had a trace that year. Only 1.2

percent of dealers in 1998 were associated with

10 or more traces. These approximately 1,000

dealers accounted for well over 50 percent of

38 Youth Crime Gun Interdiction Initiative Performance Report, Department of the Treasury, Bureau of Alcohol, Tobacco

and Firearms, February 1999.
Commerce in Firearms in the United States •Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms

24 February 2000

Table 14.

Traces and average time-to-crime, 1998a/

More than half of all traces

were of guns recovered by Retail dealers with: Traces to retail dealers with:

law enforcement — 1-9 10-24 25-49 50+ 1-9 10-24 25-49 50+

traces traces traces traces traces traces traces traces

Percentb/

3 years or less after

first retail purchase

All retail dealers (retail gun

dealers and pawnbrokers) 5.4 % 0.4 % 0.1% 0.1% 18.8 % 8.5 % 6.3 % 15.9 %

Retail gun dealers 4.4 0.3 0.1 0.1 17.6 8.0 5.7 17.0

Pawnbrokers 13.2 1.0 0.3 0.2 22.1 9.9 7.7 13.2

More than 3 years after first

retail purchase

All retail dealers (retail gun

dealers and pawnbrokers) 6.9 % 0.4 % 0.1% 0.1% 22.9 % 9.1% 6.6 % 11.8 %

Retail gun dealers 5.7 0.3 0.1 0.1 21.6 8.6 7.3 14.2

Pawnbrokers 15.2 1.2 0.2 0.1 26.3 11.6 3.7 5.6

Number

3 years or less after

first retail purchase (retail gun

dealers and pawnbrokers)

All retail dealers 4,503 319 102 70 10,324 4,681 3,429 8,730

Retail gun dealers 3,170 218 68 47 7,009 3,195 2,273 6,746

Pawnbrokers 1,333 101 34 23 3,315 1,486 1,156 1,984

More than 3 years after first

 retail purchase

All retail dealers (retail gun

dealers and pawnbrokers) 5,666 354 101 62 12,559 5,161 3,462 6,490

Retail gun dealers 4,121 234 83 52 8,606 3,410 2,901 5,653

Pawnbrokers 1,545 120 18 10 3,953 1,751 561 837

Sources: Data, Bureau of Alcohol, Tobacco and Firearms; Tables prepared by Glenn L. Pierce, Northeastern University, College of Criminal Justice, Center for Criminal Justice Policy Research.

a/ Gun traces without initial purchase data are excluded from these calculations.

b/ Percentages are based on the total for each category. For dealers, denominators are 83,502 for all; 72,358 for retail

dealers; and 10,144 for pawnbrokers. For traces, the denominators are 54,836 for all; 39,793 for retail dealers; and

15,043 for pawnbrokers.

the traces to current retail dealers that year.

About 330 dealers, a fraction of one percent,

were associated with 25 or more traces and

accounted for about 40 percent of the traces to

current dealers in 1998.

Time-to-crime

Time-to-crime trace analysis enables law enforcement officials to focus on FFLs or buyers associated with newer crime guns. Because these guns

are less likely to have changed hands frequently
Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms •Commerce in Firearms in the United States

February 2000 25

before being used in a crime, their sources can

more easily be identified. While the average timeto-crime for traced firearms is about 6 years,

many traced firearms are recovered in three years

or less. ATF found, for instance, that in 27 communities in 1998, up to half of all traced crime

guns recovered from youth ages 18 to 24 were

recovered in three years or less.39 In 1998, there

were nearly 480 active dealers with 10 or more

crime guns with a time-to-crime of three years or

less traced to them based on trace requests

submitted that year, and there were 1,015 current

dealers with five or more crime guns with a timeto-crime of three years or less traced to them.

Table 14 shows that there is a subset of current

dealers that have both a high volume of traces

and for which more than half of those traces

had a time to crime of less than three years.

This particular indicator is a useful measure of

the number of dealers whose guns move frequently and quickly end up in the wrong hands.

It is a conservative measure, however, because

while older crime guns may also have been

trafficked or stolen, only the chain of ownership of new guns can be determined by a National Tracing Center trace, which stops at the

first retail purchase. Many instances of trafficking cannot be investigated because of the

NTC’s inability to trace effectively secondhand

firearms, whether they are sold by licensed or

unlicensed sellers. Older businesses may have

a relatively higher percentage of longer time-tocrime guns, simply because they have been in

business for a longer period of time. Less than

50 percent of such establishments’ traces may

be fast time-to-crime traces, even if they sold a

significant number of short time-to-crime guns.

Application of a combination of trafficking

indicators, such as the volume of crime gun

traces or traces with short time-to-crime, to the

licensee population allows ATF to focus its

limited resources on these dealers that are the

source of guns used in crimes. As the method

evolves and results in inspections and criminal

investigations, more can be learned about the

causes of these indicators and diversion from

licensed retail dealers.

Limitations of the Firearms Tracing

System

Approximately 200,000 trace requests were

received in 1999. Until all crime guns are

traced, the level of diversion of crime guns

from FFLs to felons and other prohibited

persons cannot be fully measured, and the

illegal sources may remain unknown to law

enforcement. In addition, not all trace requests

result in the identification of the original licensed retail dealer or purchaser of the traced

firearm. A firearms trace currently identifies

the first retail dealer for approximately 60

percent of trace requests and the first retail

purchaser for approximately 40 percent of trace

requests. A number of factors, discussed below,

prevent the tracing system from identifying the

source of every crime gun traced.

• Non-responsive dealers. The firearms

tracing system depends entirely on the

accuracy and completeness of licensee

records. Manufacturers, wholesalers and

importers maintain records of the retail

dealers that initially acquire the firearms

for sale. Retail dealers are required to

maintain the transaction records that

link the make, model and firearms serial

numbers with firearms purchasers. FFLs

are required to respond to trace requests

within 24 hours. If an FFL fails to respond, ATF inspectors must spend extra

time seeking the information. Traces can

be conducted in a timely manner and be

completed only if FFLs keep proper

records and cooperate with ATF trace

requests. While most FFLs respond

promptly to trace inquiries, some FFLs

either totally disregard or refuse to comply with a request, others fail to respond

within 24 hours and still others supply

incorrect information. In 1999, there

were approximately 50 active retail dealers who were either entirely non-responsive to a trace request, slow to respond to a

trace request on at least three occasions or

who gave incorrect information requiring

an NTC re-check. Uncooperative FFLs

39 Youth Crime Gun Interdiction Initiative, Trace Analysis Reports: 27 Communities, p.12, February 1999, Department

of the Treasury, Bureau of Alcohol, Tobacco and Firearms.
Commerce in Firearms in the United States •Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms

26 February 2000

often fail to maintain accurate records or

fulfill other statutory and regulatory responsibilities.

• Untraceable secondhand guns. Federal law

does not require unlicensed sellers to

preserve transfer records, nor are gun

owners required to keep a record of the

serial number of their firearms or to report

lost or stolen firearms. It is generally

impossible for a crime gun trace to identify

purchasers beyond the initial retail buyer.

The initial purchaser may have transferred

the gun to a third party or it may have been

stolen. To trace a gun beyond the first

retail purchaser, law enforcement authorities must conduct an “investigative trace,”

using traditional investigative methods,

such as interviews and use of informants.

Investigative traces are extremely resource

intensive and, because of the absence of

records, often unsuccessful. For these

reasons, ATF conducts investigative traces

only in rare cases. Even though FFLs do

maintain transaction records on firearms

they sell secondhand, a regular crime gun

trace cannot capture this information

because no link exists between first and

subsequent retail transactions. Since over

half of ATF’s trafficking investigations

involve secondhand firearms, the fact that

the tracing process is unable to capture

sales of used firearms by FFLs and unlicensed sellers is a major problem.40

• Unreported firearms stolen in shipment.

Some traces cannot be completed because

the firearm is lost or stolen while in transit

between two licensees, and not reported as

such to ATF. Current regulations do not

specify whether the shipping or receiving

licensee is responsible for reporting the

theft or loss of a firearm while it is in

transit. Interstate carriers are not required

to report the theft or loss of firearms

shipped in commerce. In Fiscal Year 1999,

there were 1,290 crime gun traces in which

the FFL claimed that it never received the

firearm shipped to it.

• Obliterated serial numbers. The intentional

obliteration of firearms serial numbers by

traffickers and criminals poses a serious

threat to the effectiveness of the firearms

tracing system. Since serial numbers are

the principal means by which firearms are

identified, the obliteration of serial numbers make it difficult to trace recovered

crime guns. ATF restores obliterated serial

numbers at its three national firearms

laboratories, and over the past two years

has increased its efforts to train other law

enforcement laboratories to restore obliterated serial numbers on crime guns. Due to

the growing problem of obliterated serial

numbers, on June 23, 1999, ATF issued a

Notice of Proposed Rulemaking to impose

marking requirements that would make it

more difficult to obliterate serial numbers.41

• Incomplete trace requests. A significant

fraction of trace requests cannot be completed because the trace submission from

State and local law enforcement agencies

does not contain adequate information.

Reading serial numbers on imported

firearms poses particular problems. ATF is

working with State and local agencies to

address this problem.

• Out-of-business records. Out-of-business

FFLs are required to submit their records

to the NTC. This permits the continued

tracing of crime guns that have been sold

by the out of business FFL. Many FFLs do

40 Youth Crime Gun Interdiction Initiative Performance Report, Appendix Table 7, Department of the Treasury, Bureau

of Alcohol, Tobacco and Firearms, February 1999; and Gun Shows: Brady Background Checks and Crime Gun Traces,

Appendix Table 6, Department of the Treasury and Department of Justice, January 1999. As part of the Youth Gun

Crime Enforcement Act of 1999, the President proposed that licensees be required to submit to the NTC the serial

numbers and other identifying information for used firearms taken into inventory. This would fill a major void in

the tracing system. However, Congress has yet to act on this legislation.

41 Notice No. 877, 64 Fed. Reg. 33450 (1999). See Youth Crime Gun Interdiction Initiative Crime Gun Trace Analysis

Reports: The Illegal Youth Firearms Markets in 27 Communities, Tables F2, Department of the Treasury, Bureau of

Alcohol, Tobacco and Firearms, February 1999.
Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms •Commerce in Firearms in the United States

February 2000 27

not comply with this requirement, necessitating follow-up efforts by ATF inspectors.

The NTC uses a microfilm system to create

an index of FFL and serial number for

every firearm transaction in the out-ofbusiness records submitted by the FFL.

While over 100 million firearms records

have been indexed, over 300 million

records are still in the process of being

indexed and are, therefore, accessed for

crime gun tracing purposes by manual

searches. The approximately one quarter

of crime gun trace requests that are currently resolved through searches of out-ofbusiness records could be completed more

rapidly if all out-of-business records were

indexed. ATF estimates that it will take at

least two years to complete its ongoing

process of imaging the additional out-ofbusiness records.

• Untraceable older firearms. A regulation

enacted in 1958 required that all handguns

and most rifles have serial numbers. Although many pre-1958 firearms were

manufactured with serial numbers, some

were not, and are, therefore, untraceable.

Guns Reported Lost and Stolen As

Indicators of Illegal Trafficking

The accuracy of a dealer’s inventory is critical

to ATF’s ability to trace crime guns. Pursuant

to the Violent Crime Control and Law Enforcement Act of 1994, FFLs are required to report

firearms lost and stolen from inventory to the

NTC within 48 hours of theft or loss. This

permits ATF to launch an immediate criminal

investigation in order to arrest the thief, prevent potential use of the firearms in a crime or

trafficking by the thief, and use the information

as another indicator to establish priorities for

compliance inspections. ATF has no authority

to require FFLs to take security measures, but

can seek to determine whether firearms reported lost or stolen were accurately reported,

or trafficked by the licensee or an employee of

the licensee.

In 1998 and 1999, licensees filed reports on

over 5,000 incidents, involving 27,287 lost or

stolen firearms. These included the following

types of incidents:

• Inventory errors, recordkeeping errors, and

employee theft, accounting for approximately 39 percent of reported incidents

and over 11,000 firearms.

• Burglary (breaking and entering during

non-business hours), accounting for 21

percent of reported incidents, and nearly

11,000 firearms, an average of 10 per

incident.

• Larceny (unlawful taking through fraud,

deception or trickery), accounting for 38

percent of reported incidents and over

3,500 firearms.

• Robbery (unlawful taking by force/violence or threat of force/violence), accounting for only 2 percent of all reported incidents and about 1,000 firearms, an average

of 11 per incident.

Among retail dealers, including pawnbrokers,

inspected as part of a special ATF survey in

1998, over half had reported a firearm stolen at

some point. Among those that had sold 50 or

more firearms the previous year, 10 percent of

pawnbrokers and 16 percent of other retail

dealers had reported a theft since commencing

business. Inventory inconsistencies were

discovered at some time in the records of about

45 percent of the pawnbrokers, and nearly 20

percent of the other retail dealers that had sold

50 or more firearms the previous year.42
Commerce in Firearms in the United States •Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms

28 February 2000

The records of ATF inspections confirm that

inventory errors are occurring at a high rate.

During inspections conducted in 1999, 21,000

firearms were initially identified as missing

from inventory. During the course of their

work, inspectors verified firearms in inventory

against the record books. This allowed corrections of the records to reduce the number of

missing firearms to 5,700. Thus, inspectors

corrected a total of over 15,000 inventory

errors. Errors in inventory records are a serious problem because a firearm missing from

inventory cannot be traced.

Another obstacle to effective regulation of retail

dealers is the lack of reporting about thefts that

take place in transit to a licensee’s business

premises. While ATF has long requested common carriers to report firearms thefts, they are

not required to do so by law and only a few

companies regularly file reports.43 In 1998 and

1999, common carriers reported about 1,900

interstate thefts, involving over 3,700 firearms.

It can be assumed that many more interstate

thefts occur than are reported to ATF.

42 Snapshot 2000.

43 As part of the Youth Gun Crime Enforcement Act of 1999, the President proposed that common carriers be required

to report firearms thefts to ATF. However, Congress has yet to act on this legislation.
Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms •Commerce in Firearms in the United States

February 2000 29

ENSURING COMPLIANCE BY LICENSED RETAIL DEALERS

ATF’s goal is to maximize voluntary compliance by the firearms industry through education and

partnerships. ATF strives to maintain a focused and fair regulatory enforcement program that

disqualifies dealers that are in violation, and refers them for criminal investigation where appropriate. The development of trafficking indicators, principally indicators based on crime gun

tracing, has fundamentally changed ATF’s firearms regulatory program and allowed it to focus on

those licensed retail dealers that are the source of crime guns. This section reports on ATF’s

regulatory enforcement program for licensed retail dealers.

Industry Education and Partnerships

To reduce the potential for violations by FFLs,

including retail dealers, ATF conducts industry

educational activities, sometimes in cooperation with law enforcement organizations or

members of the firearms industry.

ATF inspectors regularly hold informational

firearms seminars intended for licensed dealers. These meetings are generally held after a

major change in the law or regulations results

in changes in the recordkeeping or reporting

requirements, and allow licensees to ask questions and meet inspectors. The seminars also

inform inspectors about the issues facing

dealers. Since the early 1980s, ATF has conducted seminars open to the industry and

public. In fiscal year 1999, ATF inspectors

conducted 155 firearms seminars. It also runs

an informational booth at the firearms

industry’s annual Shooting, Hunting, and

Outdoor Trade (SHOT) show.

ATF also provides a variety of instructional and

informational materials to the industry. For

example, in 1998, ATF developed and issued a

publication aimed at assisting licensed dealers

in reducing the number of firearms stolen from

FFL inventory, which represent a source of

supply to illegal gun traffickers. Titled Safety

and Security Information for Federal Firearms

Licensees, the manual provided advice for FFLs

based on the investigation of thefts reported by

licensees between September 1994 and December 1997. It urged dealers to evaluate their

individual risk factors to determine how vulnerable they may be to thefts, implement and use

basic security measures, and screen employees

carefully. ATF publishes and regularly updates

a reference guide to Federal firearms regulations.44

Current educational projects include an instructional videotape on compliance with the

GCA, being developed with the International

Association of Chiefs of Police (IACP) for

distribution to retail firearms dealers.

Compliance Inspections and the

Imposition of Penalties

Once a license is issued, ATF may inspect an

FFL’s inventory and records without a warrant

to ensure compliance with the recordkeeping

requirements of the GCA. Since 1986, however,

the law has limited ATF to one such inspection

during a 12-month period, absent consent of

the licensee.

Inspectors check for a range of violations,

including: falsification of records; knowingly

selling firearms to prohibited or underage

persons; missing firearms inventory; inventory

and bound book discrepancies; handgun sales

to out-of-state residents; noncompliance with

Brady Act requirements; and unreported multiple sales of handguns. Compliance inspections also offer licensees an opportunity to ask

questions regarding compliance with the provisions of the GCA.

Establishing whether there are firearms that

cannot be accounted for by a licensee is a

particularly labor intensive but critical component of compliance inspections. Unaccounted

for firearms can indicate unreported theft, poor

44 Federal Firearms Regulations Reference Guide, Department of the Treasury, Bureau of Alcohol, Tobacco and Firearms, 2000 (ATF P 5300.4 (01.00)).
Commerce in Firearms in the United States •Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms

30 February 2000

record keeping or illegal trafficking. Inspectors

seek to document discrepancies, and correct

them when possible, since this reduces the

quantity of firearms untraceable by law enforcement. Theft is a major concern; it involves

a direct crime, and may also involve subsequent

trafficking to prohibited persons.

Compliance inspections may also lead to administrative actions, penalties and criminal

referrals. Depending on the severity and frequency of the violations, ATF will issue a warning letter; hold a warning conference with the

dealer; strongly encourage the dealer to voluntarily surrender the license; deny license renewal, or initiate revocation procedures. A

licensee who willfully violates the provisions of

the GCA is subject to license revocation. With

one exception related to certain violations of

the Brady Act, ATF has no authority to suspend

a firearms license or impose a civil fine for GCA

violations. ATF’s policy is that while honest

errors should not be a basis for revocation,

licensees who are unable or unwilling to meet

their obligations cannot be allowed to continue

in the business.

If the violations suggest that the FFL or its

customers are engaged in illegal firearms

activity, field inspectors may refer the matter to

ATF special agents for possible criminal investigation. A recent ATF analysis shows that at

least two percent of ATF’s criminal trafficking

investigations involving juveniles and youth are

initiated because of regulatory referrals.45 

Criminal penalties for most recordkeeping

violations by FFLs were reduced from felonies

to misdemeanors by the 1986 Firearms Owners’

Protection Act.

The Compliance Inspection Program:

Focused Inspections

In October 1998, ATF initiated the current

policy, referred to as focused inspections, which

requires field division personnel to select

licensees for inspection based on a range of

indicators of potential firearms trafficking

derived from the National Tracing Center

(NTC) database. In addition to relying on NTC

indicators, inspectors adhere to guidelines for

addressing dealers who come to the attention

of ATF locally, such as small volume licensed

dealers with relatively high numbers of crime

gun traces, and licensed dealers that special

agents refer to inspectors. Inspectors also

support specific firearms trafficking and Youth

Crime Gun Interdiction Initiative investigations; and follow up on information required by

the ATF Licensing Center and the NTC, including obtaining trace information and out-ofbusiness records that FFLs fail to submit.

In addition, the establishment of the NICS

background check system by the FBI resulted

in new ATF compliance responsibilities. ATF

has been working with the FBI to include a

NICS audit as part of compliance inspections,

in order to ensure that the checks are done

properly as part of the over-the-counter transaction, and that the NICS system is not being

used for purposes other than firearms transactions.46

Results of Inspections

A random sample of inspections of retail licensees in 1998 showed numerous violations,

although many were minor. Among all retail

dealers, 45 percent of pawnbrokers, and 30

percent of other retail dealers were in violation

of dealer requirements. Among gun dealers

that had sold 50 or more guns the previous

year, the level was higher, over half of retail

dealers, and about 30 percent of pawnbrokers

were in violation. Violations clearly warranting

a follow-up inspection were found at between a

quarter and a third of the dealers and pawnbrokers selling 50 or more guns the previous year.47

45 Youth Crime Gun Interdiction Initiative Performance Report for the Senate and House Committees on Appropriations,

Department of the Treasury, Bureau of Alcohol, Tobacco and Firearms, February 1999.

46 Implementation of the Brady Law, Department of the Treasury, Bureau of Alcohol, Tobacco and Firearms, September

1999.

47 Snapshot 2000.
Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms •Commerce in Firearms in the United States

February 2000 31

Among all pawnbrokers, about a quarter had

violations warranting a follow-up inspection,

and, among all other retail dealers, about nine

percent warranted a follow-up inspection.

A review of 1,700 compliance inspections

conducted during FY 1999 reveals that about

400, slightly less than 25 percent, were cited for

one or more violations. One or more of the

following actions were taken concerning these

cited licensees:

• License revocation: 13 (3 percent).

• License surrender, placed out-of-business,

or denial of renewal: 75 (19 percent).

• Warning conferences: 35 (9 percent).

• Warning letters: 120 (30 percent).

• Re-call or Follow-up inspection (after one

year) planned: 223 (56 percent).

Some dealers with a substantial number of

crime gun traces and sales volume ranging

from 6,000 to 15,000 firearms per year had no

compliance problems; other dealers had gone

out of business since the time of their last

inspection or were the subjects of ATF criminal

investigations. After one year has passed and

ATF is permitted to conduct a follow-up inspection, it will be possible to assess the rates of

non-compliance for this group.

Coverage of Field Inspectors

Based on inspections conducted in FY1998,

including the average time it took to complete

an inspection of an FFL retail dealer, and

assuming a licensee population of 100,000, it

would take 2,600 full time inspectors to inspect

all licensed retail dealers annually. A two-year

cycle would require a staff of 1,300; a threeyear cycle would require 650 inspectors. While

in the past the average inspection took approximately 10 to 20 hours to complete, under the

focused inspection policy, which thoroughly

addresses the trafficking indicators, the average

inspection of an FFL retail dealer selected by

firearms trafficking indicators takes approximately 60 to 100 hours to complete. The use of

trafficking indicators to direct compliance

inspection efforts should allow ATF to use its

regulatory resources more efficiently and

effectively to stop the diversion of firearms

from licensed retail dealers to the illegal market.
Appendix A
STATISTICAL TABLES RELATING TO FIREARMS COMMERCE

A. Annual Firearms Commerce

A.1.1 Firearms Manufacturers’ Shipments, 1899-1998........................................................... A-3

A.1.2 Firearms Manufacturers’ Exports, 1899-1998 ............................................................... A-4

A.1.3 Firearms Imports, 1899-1999 .......................................................................................... A-5

A.1.4 Firearms Importation Applications, FY 1986-1999 ....................................................... A-6

A.2 Firearms and Ammunition Excise Tax Collections........................................................ A-7

A.3 Producer Price Indices: Small Arms and Ammunition ................................................A-8

B. Firearms Weapons Regulated By The National Firearms Act (NFA)

B.1National Firearms Act Application, Registration, Tax Revenues,

and Related Activities, 1979-1999 ................................................................................... A-9

B.2 National Firearms Act Transfer Applications, FY 1990-1999 ..................................... A-10

B.3 National Firearms Act Registered Weapons by State, FY 1999 .................................. A-11

B.4 National Firearms Act Special Occupational Taxpayers, FY 1980-1999 .................... A-12

B.5 National Firearms Act Special Occupational Taxpayers (as of January 2000)

by State ...........................................................................................................................A-13

C. Federal Firearms Licensees (FFLs)

C.1Federal Firearms Licensees (FFLs), Dealers and Pawnbrokers by State,

Number, and Rate per 100,000 Population .................................................................. A-14

C.2.1 Federal Firearms Licensees by State, FY 1997 ............................................................ A-15

C.2.2 Federal Firearms Licensees by State, FY 1998 ............................................................ A-16

C.2.3 Federal Firearms Licensees by State, FY 1999 ............................................................ A-17

C.3 Federal Firearms Licensees Total, FY 1975-1999 ........................................................ A-18

C.4.1 License Applications and Application Inspections, FY 1969-1989 ............................. A-19

C.4.2 License Applications and Application Inspections, FY 1990-1999 ............................. A-20

C.5 Firearms Licensees and Compliance Inspections, FY 1969-1999............................... A-21

C.6 Actions on Federal Firearms Licenses, FY 1975-1999.................................................A-22

D. Traces of Recovered Firearms to Retail Federal Firearms Licensees

D.1Distribution of Traces Among Active Dealers, 1998 .................................................... A-23

D.2 Distribution of Traces for Guns with a Time-To-Crime of Three Years or Less ........ A-24

D.3 Traces and Average Time-to-Crime, 1998 ..................................................................... A-25

Note: Except as otherwise noted, dates refer to calendar years.
Commerce in Firearms in the United States •Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms

A-2 February 2000
Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms •Commerce in Firearms in the United States

February 2000 A-3

Table A.1.1—Firearms Manufacturers’ Shipments, 1899-1998

Number of weapons in thousands

Handguns

Year Total Total Pistols Revolvers Rifles Shotguns

1899-1945 45,711 11,722 ... ... 20,651 13,338

1946 1,526 176 ... ... 729 621

1947 2,070 257 ... ... 953 860

1948 2,610 427 ... ... 1,170 1,013

1949 2,168 256 ... ... 862 1,050

1950 2,432 261 ... ... 847 1,324

1951 1,976 307 ... ... 668 1,001

1952 1,818 398 ... ... 541 948

1953 1,844 355 ... ... 541 948

1954 1,471 327 ... ... 437 707

1955 1,657 362 ... ... 556 739

1956 1,835 451 ... ... 554 830

1957 1,662 460 ... ... 514 688

1958 1,377 440 ... ... 406 531

1959 1,646 519 ... ... 517 610

1960 1,508 475 ... ... 469 564

1961 1,504 447 ... ... 482 575

1962 1,551 431 ... ... 529 591

1963 1,671 453 ... ... 579 639

1964 1,950 491 ... ... 713 746

1965 2,355 666 ... ... 790 899

1966 2,526 700 ... ... 850 976

1967 2,879 926 ... ... 909 1,044

1968 3,514 1,259 ... ... 1,100 1,155

1969 3,671 1,255 ... ... 1,297 1,119

1970 3,733 1,394 ... ... 1,195 1,144

1971 3,858 1,448 ... ... 1,269 1,141

1972 4,617 1,805 ... ... 1,677 1,135

1973 4,842 1,734 ... ... 1,837 1,271

1974 5,623 1,715 ... ... 2,105 1,803

1975 5,745 2,024 ... ... 2,126 1,595

1976 5,282 1,833 ... ... 2,112 1,337

1977 5,038 1,880 ... ... 1,933 1,225

1978 4,861 1,877 ... ... 1,788 1,196

1979 5,320 2,124 ... ... 1,876 1,320

1980 5,645 2,370 764 1,605 1,936 1,339

1981 5,374 2,537 835 1,702 1,681 1,156

1982 5,130 2,629 853 1,775 1,623 879

1983 4,036 1,967 734 1,233 1,110 960

1984 3,873 1,680 753 927 1,107 1,086

1985 3,460 1,550 707 844 1,141 770

1986 3,040 1,428 693 735 971 641

1987 3,523 1,659 964 695 1,006 858

1988 3,818 1,746 991 755 1,145 928

1989 4,374 2,031 1,403 629 1,407 936

1990 3,844 1,839 1,376 462 1,156 849

1991 3,550 1,838 1,381 457 883 828

1992 4,030 2,010 1,550 460 1,002 1,018

1993 5,130 2,825 2,272 553 1,160 1,145

1994 5,161 2,582 1,996 586 1,324 1,255

1995 4,228 1,723 1,195 528 1,332 1,174

1996 3,835 1,484 986 499 1,424 926

1997 3,574 1,407 1,036 370 1,251 916

1998 3,645 1,240 916 324 1,536 869

Source: Bureau of Alcohol, Tobacco and Firearms; Department of Justice, Bureau of

Justice Statistics.
Commerce in Firearms in the United States •Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms

A-4 February 2000

Table A.1.2—Firearms Manufacturers’ Exports, 1899-1998

Number of weapons in thousands

Handguns

Year Total Total Pistols Revolvers Rifles Shotguns

1899-1945 3,684 1,723 ... ... 1,073 888

1946 123 57 ... ... 36 30

1947 167 78 ... ... 49 40

1948 210 98 ... ... 61 51

1949 175 82 ... ... 51 42

1950 196 92 ... ... 57 47

1951 158 74 ... ... 46 38

1952 146 68 ... ... 43 35

1953 148 69 ... ... 43 36

1954 118 55 ... ... 34 29

1955 133 62 ... ... 39 32

1956 148 69 ... ... 43 36

1957 134 63 ... ... 39 32

1958 111 52 ... ... 32 27

1959 133 62 ... ... 39 32

1960 121 57 ... ... 35 29

1961 121 57 ... ... 35 29

1962 126 59 ... ... 37 30

1963 135 63 ... ... 39 33

1964 157 73 ... ... 46 38

1965 190 89 ... ... 55 46

1966 203 95 ... ... 59 49

1967 232 108 ... ... 68 56

1968 282 132 ... ... 82 68

1969 295 138 ... ... 86 71

1970 301 141 ... ... 88 72

1971 311 145 ... ... 91 75

1972 372 174 ... ... 108 90

1973 279 95 ... ... 124 60

1974 337 100 ... ... 147 90

1975 421 173 ... ... 148 100

1976 482 202 ... ... 147 133

1977 556 208 ... ... 196 152

1978 541 246 ... ... 162 133

1979 515 224 ... ... 168 123

1980 517 220 32 187 171 127

1981 588 252 26 227 159 176

1982 446 254 25 229 87 105

1983 293 159 12 147 55 79

1984 235 117 10 107 49 69

1985 183 95 29 66 44 45

1986 217 121 17 104 37 59

1987 242 159 25 134 42 41

1988 254 132 33 99 54 69

1989 259 118 42 76 73 68

1990 354 178 73 105 72 104

1991 398 190 79 110 91 118

1992 398 189 77 112 90 119

1993 414 149 59 90 94 171

1994 401 173 94 79 82 147

1995 420 230 98 132 89 101

1996 326 154 64 90 75 97

1997 271 108 44 64 77 86

1998 200 45 29 16 66 90

Source: Bureau of Alcohol, Tobacco and Firearms.
Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms •Commerce in Firearms in the United States

February 2000 A-5

Table A.1.3—Firearms Imports, 1899-1999

Number of weapons in thousands

Total

Year Imported Handguns Rifles Shotguns

1899-1945 2,013 769 531 713

1946 7 0 0 7

1947 30 7 0 23

1948 50 17 4 29

1949 36 7 5 24

1950 63 17 14 32

1951 110 41 24 45

1952 139 56 27 56

1953 155 61 13 81

1954 143 50 11 82

1955 171 67 15 89

1956 214 84 38 92

1957 318 78 130 110

1958 370 79 198 93

1959 528 130 269 129

1960 655 128 402 125

1961 533 115 310 108

1962 516 168 231 117

1963 562 223 219 120

1964 574 253 182 139

1965 766 347 245 174

1966 996 513 291 192

1967 1,208 747 239 222

1968 1,784 1,240 263 281

1969 889 406 197 286

1970 855 280 219 356

1971 1,156 337 253 566

1972 1,038 440 178 420

1973 859 248 189 422

1974 1,113 408 175 530

1975 793 312 169 312

1976 918 345 139 434

1977 751 253 184 314

1978 1,040 272 278 490

1979 886 271 257 358

1980 754 299 182 273

1981 689 306 200 184

1982 665 333 175 157

1983 838 411 228 199

1984 773 342 213 219

1985 697 229 271 197

1986 701231269 201

1987 1,064 342 414 308

1988 1,276 622 283 372

1989 1,008 440 293 274

1990 844 449 204 192

1991 721 293 311 116

1992 2,847 982 1,423 442

1993 3,043 1,205 1,593 246

1994 1,881 915 848 118

1995 1,103 706 261 136

1996 882 491 263 128

1997 939 474 359 106

1998 1,000 532 249 219

1999 892 308 198 386

Source: Bureau of Alcohol, Tobacco and Firearms. Data prior to 1992 are for fiscal years; data

after 1992 are calendar years; 1992 is a transition year with five quarters.
Commerce in Firearms in the United States •Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms

A-6 February 2000

Table A.1.4—Firearms Importation Applications, FY 1986-1999

Applications for importation Permits

Fiscal (Form 6)a/ processed (Form 6)

Year Total Importer Military Other processed

1986 19,793 7,728 9,434 2,631 6,201

1987 18,022 7,833 8,059 2,130 6,347

1988 17,513 7,711 7,680 2,122 7,174

1989 18,437 7,950 8,293 2,194 10,713

1990 19,248 8,292 8,696 2,260 12,319

1991 21,483 8,098 10,973 2,412 9,024

1992 19,805 7,960 9,222 2,623 7,124

1993 16,458 7,591 6,282 2,585 9,299

1994 14,298 6,704 4,570 3,024 7,650

1995 10,649 5,267 2,834 2,548 6,211

1996 11,527 6,340 2,792 2,395 8,857

1997 11,752 8,288 2,069 1,395 9,798

1998 13,019 8,767 2,715 1,536 10,647

1999 12,776 9,505 2,235 1,036 15,043

Source: Bureau of Alcohol, Tobacco and Firearms, Firearms, Explosives Imports

System Database and Firearms and Explosives Imports Branch Log.

Import applications are generally for more than one firearm at a time.

a/ Form 6 (Application and Permit for Importation of Firearms, Ammunition and

Implements of War) is both the application and permit to import firearms and

ammunition. An importer completes Form 6 and sends it to ATF. If ATF

approves the application, Form 6 becomes a permit to import the firearms or

ammunition at issue.
Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms •Commerce in Firearms in the United States

February 2000 A-7

Table A.2—Firearms and Ammunition Excise Tax Collections

Dollars in thousands

Fiscal Pistols and Other Shells and

Year Total revolvers Firearms cartridges

1983 a/ $90,637 $24,080 $34,711 $31,846

1984 $87,665 $22,011 $37,276 $28,378

1985 $102,403 $25,107 $48,906 $28,390

1986 $98,362 $23,433 $39,037 $35,892

1987 $102,521 $25,361 $42,182 $34,978

1988 $114,064 $29,074 $48,867 $36,123

1989 $134,277 $38,230 $48,870 $47,177

1990 $137,409 $42,015 $61,402 $33,992

1991 $144,745 $42,226 $50,237 $52,282

1992 $140,608 $41,760 $45,697 $53,151

1993 $171,434 $54,019 $60,482 $56,933

1994 $213,966 $68,533 $75,637 $69,796

1995 $184,302 $53,779 $72,947 $57,576

1996 $157,816 $38,649 $72,422 $46,745

1997 b/ $149,090 ... ... ...

1998 b/ $164,789 ... ... ...

1999 b/ $187,977 ... ... ...

Source: Bureau of Alcohol, Tobacco and Firearms. The tax rate on the displayed

categories is as follows: pistols and revolvers, 10% of sale price; firearms other

than pistols and revolvers, 11% of sale price; shells and cartridges, 11% of sale

price.

a/ From FY 1983-1990, the Internal Revenue Service collected excise taxes. ATF

assumed the collection function in FY 1991.

b/ ATF no longer maintains these statistics by individual category.
Commerce in Firearms in the United States •Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms

A-8 February 2000

Table A.3—Producer Price Indices: Small Arms and Ammunition

PPI, Finished

Small Pistol and Consumer Goods

Small Pistols and Rifles, arms revolver (excluding food

Year arms revolvers Shotguns centerfire ammunition cartridges and energy)

1947 24.7 24.4 27.8 ... 22.4 ... ...

1948 26.1 24.5 29.4 ... 25.5 ... ...

1949 26.9 24.5 30.3 ... 27.4 ... ...

1950 27.7 24.6 31.2 ... 28.4 ... ...

1951 30.6 25.3 34.5 ... 33.2 ... ...

1952 29.2 25.3 32.3 ... 32.2 ... ...

1953 29.2 25.8 32.3 ... 31.9 ... ...

1954 29.3 26.1 32.3 ... 31.9 ... ...

1955 29.3 26.1 32.3 ... 33.6 ... ...

1956 31.3 26.4 34.3 ... 35.7 ... ...

1957 32.9 27.0 36.0 ... 36.5 ... ...

1958 33.3 27.8 36.2 ... 36.5 ... ...

1959 33.5 28.0 36.3 ... 35.7 ... ...

1960 34.3 28.6 37.1 ... 35.5 ... ...

1961 35.0 29.4 37.7 ... 37.5 ... ...

1962 35.3 29.5 38.1 ... 37.5 ... ...

1963 35.3 29.2 38.2 ... 37.5 ... ...

1964 35.7 28.2 39.4 ... 37.9 ... ...

1965 36.3 28.3 40.0 ... 39.5 ... ...

1966 37.3 29.4 40.9 ... 39.5 ... ...

1967 38.3 31.0 41.5 ... 39.4 ... ...

1968 40.3 36.6 42.3 ... 41.0 ... ...

1969 41.9 39.7 43.9 ... 42.2 ... ...

1970 43.7 ... 45.8 ... 46.2 ... ...

1971 45.5 ... 48.7 ... 47.4 ... ...

1972 46.0 40.5 49.5 ... 48.4 ... ...

1973 46.8 41.3 50.5 ... 49.2 ... 50.4

1974 50.8 44.8 54.3 ... 53.2 ... 55.5

1975 56.5 49.5 61.0 ... 59.7 ... 60.6

1976 60.0 52.8 64.8 ... 62.3 ... 63.7

1977 64.4 57.1 69.6 ... 67.5 ... 67.3

1978 70.1 62.5 76.0 ... 72.8 ... 72.2

1979 75.4 67.1 81.5 ... 80.5 ... 78.8

1980 87.3 80.0 92.3 ... 88.7 ... 87.8

1981 98.2 92.4 103.3 ... 96.9 ... 94.6

1982 100.0 100.0 ... ... 100.0 ... 100.0

1983 103.0 102.3 ... ... 109.9 ... 103.1

1984 111.4 111.7 ... ... 115.9 ... 105.7

1985 119.8 112.8 ... ... 123.6 ... 108.4

1986 125.5 116.4 136.2 105.8 126.3 100.8 111.1

1987 131.5 121.9 141.6 110.4 125.0 109.1 114.2

1988 138.1 130.4 148.0 115.6 130.2 112.6 118.5

1989 146.7 135.4 157.1 120.5 136.4 114.3 124.0

1990 153.6 138.4 162.2 126.8 133.4 114.9 128.8

1991 160.1 142.2 166.2 131.7 138.9 116.9 133.7

1992 162.6 142.6 167.2 132.6 138.3 119.0 137.3

1993 165.9 143.9 170.9 135.9 139.5 120.3 138.6

1994 170.2 145.4 176.9 139.7 140.3 127.7 139.0

1995 173.1 148.0 179.5 143.4 144.3 133.6 141.9

1996 175.6 149.1 182.0 145.9 143.1 129.5 144.3

1997 177.3 151.1 184.2 148.3 142.8 129.4 145.1

1998 180.2 156.2 188.0 153.5 144.1 130.8 147.7

1999 184.6 160.3 197.0 158.6 144.2 134.1 151.7

Source: Bureau of Labor Statistics. 1999 data are preliminary; 1982=100,
Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms •Commerce in Firearms in the United States

February 2000 A-9

Table B.1—National Firearms Act Application, Registration, Tax Revenues,

and Related Activities, 1979-1999a/

Number of Number of Tax revenues ($ in thousands) Enforcement Supportd/

applications weapons Occupational Transfer and Records

Yearb/ processed registeredc/ tax making Tax Certifications checks

1979 14,607 127,024 ... $500 3,559 ...

1980 16,772 176,365 ... $716 4,377 ...

1981 18,597 121,901 $268 $611 1,482 3,627

1982 21,606 102,318 $391 $723 1,306 2,841

1983 27,084 97,341 $591 $594 4,335 ...

1984 26,692 76,790 $596 $666 1,196 2,771

1985 26,779 84,839 $606 $594 921 3,682

1986 39,451 277,368 $667 $1,372 690 3376

1987 64,597 290,000 $869 $1,576 575 4,135

1988 83,250 310,000 $2,095 $1,481 701 3,738

1989 152,067 374,774 $1,560 $1,527 673 6,128

1990 194,215 439,339 $1,442 $1,308 666 7,981

1991 201,391 477,020 $1,556 $1,210 764 7,857

1992 169,762 538,875 $1,499 $1,237 1,257 8,582

1993 221,627 613,079 $1,493 $1,264 1,024 7,230

1994 238,945 678,077 $1,444 $1,596 586 6,283

1995 216,026 756,260 $1,007 $1,311 882 5,677

1996 242,054 823,459 $1,143 $1,402 529 5,215

1997 246,781 ... $1,284 $1,630 488 4,395

1998 315,641 1,016,863 $1,299 $1,969 353 3,824

1999 306,515 1,148,984 $1,330 $2,422 345 3,994

Source: Bureau of Alcohol, Tobacco and Firearms, National Firearms Registration and Transfer Record.

a/ National Firearms Act weapons are defined in the Internal Revenue Code, Title 26, USC, Chapter 53, and include

items such as machine guns,short -barreled rifles and shotguns, and destructive devices. The number of weapons

registered for FY 1979 - 1985 is the number of weapons associated with the applications processed during the fiscal

year. The number of weapons registered for FY 1986 - FY 1999 is the number of weapons in the National Firearms

Registration and Transfer Record (NFRTR) - the total number of registered weapons. The number of weapons

registered for FY 1987 and 1988 are approximate. Occupational tax revenues for FY 1988 - 1996 include collections

made during the fiscal year for prior tax years.

b/ Data from 1979 - 1996 are on a fiscal year basis; data for 1997 - 1999 represent calendar years.

c/ Two circumstances contributed to the rise in the number of NFA weapons registered in the NFRTR after 1985. First,

Public Law 99-308 was enacted in 1986, and restricted the private possession of machineguns manufactured on or

after the effective date of the law - May 19, 1986. Manufacturers registered a large number of machineguns in

anticipation of the ban. Second, law enforcement increased their use of “flash/bang” weapons, which must be

registered in the NFRTR as destructive devices.

d/ ATF searches the National Firearms Registration and Transfer Record in support of criminal investigations and

regulatory enforcement inspections.
Commerce in Firearms in the United States •Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms

A-10 February 2000

Table B.2—National Firearms Act Transfer Applications, FY 1990 - 1999

Transfers Personal/Government

Application for Application for application to make

Fiscal tax paid transfer tax exempt transfer NFA firearms

Year (Form 4) (Form 5) (Form 1)

1990 7,024 54,959 399

1991 5,395 44,146 524

1992 6,541 45,390 351

1993 7,388 60,193 310

1994 7,600 67,580 1,076

1995 8,263 60,055 1,226

1996 6,418 72,395 1,174

1997 7,873 70,690 855

1998 10,181 93,135 1,093

1999 11,768 95,554 1,071

Manufactured

Fiscal and imported Exported

Year (Form 2) (Form 9)

1990 66,084 21,725

1991 80,619 40,387

1992 107,313 22,120

1993 70,342 24,041

1994 97,665 34,242

1995 95,061 31,258

1996 103,511 40,439

1997 110,423 36,284

1998 141,101 40,221

1999 137,373 28,128

Tax exempt Items processed

Fiscal licensees Number of Number of

Year (Form 3) applications firearms

1990 23,149 194,215 439,339

1991 19,507 201,391 477,020

1992 26,352 169,762 538,875

1993 22,071 221,627 613,079

1994 27,950 238,945 678,077

1995 18,593 216,026 756,260

1996 16,931 242,054 823,459

1997 18,371 246,781 905,647

1998 27,921 315,641 1,016,863

1999 28,288 306,515 1,148,984

Source: Bureau of Alcohol, Tobacco and Firearms, NFA Special

Taxpayers and Revenue Collected Database.
Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms •Commerce in Firearms in the United States

February 2000 A-11

Table B.3—National Firearms Act Registered Weapons by State, FY 1999

Short-barreled Any other

State Total Machinegun Silencer Rifle Shotgun Destructive device weapona/ Otherb/

Total (FY1999) 1,148,984 277,362 83,627 14,896 54,109 676,837 41,003 1,150

Alabama 26,302 9,890 2,557 372 1,253 11,268 952 10

Alaska 3,832 1,238 446 45 391 1,433 277 2

Arizona 55,337 9,9214,382 673 960 38,646 732 23

Arkansas 13,050 2,805 1,278 157 530 7,818 441 21

California 112,055 14,326 1,828 950 5,277 86,137 3,463 74

Colorado 21,312 3,573 1,114 396 857 14,608 746 18

Connecticut 22,708 14,266 2,076 365 1,019 4,324 637 21

Delaware 934 147 20 31 194 512 30 0

District of Columbia 8,874 2,133 73 40 340 6,227 61 0

Florida 70,668 14,602 7,253 505 1,921 44,145 2,224 18

Georgia 41,013 13,360 8,584 403 5,983 11,301 1,349 33

Hawaii 1,715 246 17 41 35 1,339 35 2

Idaho 8,257 2,069 1,068 151 214 4,265 482 8

Illinois 31,783 9,035 340 383 1,313 19,760 923 29

Indiana 34,239 10,576 2,967 244 3,881 15,621 926 24

Iowa 8,278 1,198 86 175 618 5,326 851 24

Kansas 10,671 1,392 89 187 586 7,758 640 19

Kentucky 15,917 4,419 1,365 244 945 8,323 605 16

Louisiana 27,490 3,543 861 183 819 21,588 481 15

Maine 5,143 2,529 361 369 258 986 629 11

Maryland 31,852 8,112 2,129 257 1,077 19,551 713 13

Massachusetts 10,602 4,333 213 283 495 4,464 786 28

Michigan 16,964 6,370 740 335 797 7,690 989 43

Minnesota 18,598 3,823 497 251 781 11,807 1,388 51

Mississippi 6,055 2,846 103 110 395 2,283 310 8

Missouri 19,193 5,175 810 406 1,380 10,219 1,152 51

Montana 3,232 1,270 68 126 166 1,262 333 7

Nebraska 4,987 1,461 291 160 427 1,990 642 16

Nevada 11,045 3,255 1,106 146 292 5,876 360 10

New Hampshire 6,832 4,477 666 98 157 1,122 300 12

New Jersey 24,404 3,531 568 132 887 18,862 404 20

New Mexico 15,198 2,918 597 185 343 10,941 206 8

New York 22,847 4,642 232 519 1,732 14,589 1,091 42

North Carolina 26,271 6,449 1,887 291 837 16,147 640 20

North Dakota 2,919 998 1,011 60 122 570 154 4

Ohio 49,889 11,671 3,129 630 2,148 30,783 1,484 44

Oklahoma 15,061 6,719 1,614 333 884 4,572 919 20

Oregon 17,397 4,725 3,396 623 872 6,437 1,316 28

Pennsylvania 37,209 13,028 3,008 681 1,314 17,627 1,397 154

Rhode Island 1,723 390 12 34 93 1,145 43 6

South Carolina 12,765 2,753 498 196 892 7,859 553 14

South Dakota 2,711 1,008 76 64 132 1,096 327 8

Tennessee 25,170 6,036 2,370 274 1,936 13,058 1,210 16

Texas 78,938 18,919 16,304 1,302 3,878 35,265 3,177 93

Utah 12,463 7,073 582 109 294 4,184 221 0

Vermont 3,035 989 4142 51 1,704 205 3

Virginia 58,130 13,591 2,768 415 2,372 37,349 1,620 15

Washington 19,550 2,195 637 461 562 14,370 1,300 25

West Virginia 4,558 1,723 329 176 200 1,763 365 2

Wisconsin 17,954 4,061 1,046 202 858 11,143 636 8

Wyoming 51,854 1,283 134 81 341 49,724 278 13

Source: Bureau of Alcohol, Tobacco and Firearms.

a/ The term “any other weapon” includes: any weapon or device capable of being concealed on the person that can be discharged

through the energy of an explosive; a pistol or revolver having a barrel with a smooth bore that can fire a fixed shotgun shell;

weapons with combination shotgun and rifle barrels of a certain size, from which only a single discharge can be made from either

barrel without manual reloading; or any such weapon that can be readily restored to so fire.

b/ “Other” includes firearms that meet the legal definition of firearms under the National Firearms Act, but cannot be categorized as

machineguns, silencers, short-barreled rifles and shotguns, destructive devices and any other weapon.
Commerce in Firearms in the United States •Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms

A-12 February 2000

Table B.4—National Firearms Act Special Occupational Taxpayers,

FY 1980-1999

Special Percent

Fiscal Occupational Change from

Year Taxpayersa/ FY 1980

1980 920

1981 1,192 30%

1982 1,758 91%

1983 2,306 151%

1984 2,678 191%

1985 2,696 193%

1986 3,297 258%

1987 5,427 490%

1988 3,673 299%

1989 2,977 224%

1990 2,827 207%

1991 2,775 202%

1992 2,754 199%

1993 2,733 197%

1994 2,684 192%

1995 2,468 168%

1996 2,283 148%

1997 2,499 172%

1998 2,283 148%

1999 2,521 174%

Source: Bureau of Alcohol, Tobacco and Firearms.

a/ Special occupational taxpayers are persons wishing to manufacture, import, or deal in firearms as

defined in the NFA. Special occupation taxpayers must: (1) be properly licensed as a federal firearms licensee; (2) have an employer identification number (even if the licensee has no employees);

and (3) pay the special occupational tax required of those manufacturing, importing, or dealing in

NFA weapons.
Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms •Commerce in Firearms in the United States

February 2000 A-13

Table B.5—National Firearms Act Special Occupational Taxpayers

(as of January 2000) by State

State Total Importers Manufacturers Dealers

Total 2,521 107 709 1,705

Alabama 55 5 16 34

Alaska 18 0 3 15

Arizona 139 4 38 97

Arkansas 26 0 10 16

California 116 6 31 79

Colorado 36 0 8 28

Connecticut 57 5 17 35

Delaware 0 0 0 0

District of Columbia 10 0 1

Florida 212 13 61 138

Georgia 94 5 22 67

Hawaii 10 0 1

Idaho 29 0 218

Illinois 72 5 17 50

Indiana 57 0 11 46

Iowa 11 1 2 8

Kansas 25 2 6 17

Kentucky 37 2 6 29

Louisiana 50 19 40

Maine 16 3 6 7

Maryland 60 4 20 36

Massachusetts 43 0 16 27

Michigan 69 7 11 51

Minnesota 46 2 28 16

Mississippi 25 0 3 22

Missouri 76 2 26 48

Montana 13 0 2 11

Nebraska 14 0 6 8

Nevada 50 4 2125

New Hampshire 39 11127

New Jersey 14 0 2 12

New Mexico 28 16 21

New York 14 1 8 5

North Carolina 811 17 63

North Dakota 6 0 2 4

Ohio 126 2 36 88

Oklahoma 410 11 30

Oregon 66 0 20 46

Pennsylvania 122 2 30 90

Puerto Rico 0 0 0 0

Rhode Island 5 0 0 5

South Carolina 14 1 10 3

South Dakota 11 0 0 11

Tennessee 62 4 2137

Texas 238 4 44 190

Utah 19 3 11 5

Vermont 11 2 4 5

Virginia 9111 27 53

Washington 18 2 11 5

West Virginia 20 0 9 11

Wisconsin 37 0 10 27

Wyoming 10 1 2 7

Source: Bureau of Alcohol, Tobacco and Firearms.
Commerce in Firearms in the United States •Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms

A-14 February 2000

TABLE C.1—Federal Firearms Licensees (FFLs), Dealers and Pawnbrokers

by State, Number, and Rate per 100,000 Population

Number FFLs per

Population of FFLs 100,000

State as of 7/1/99 as of 12/1/99 Population

Total 272,690,813 80,644 47

Alabama 4,369,862 1,430 33

Alaska 619,500 1,160 187

Arizona 4,778,332 1,426 30

Arkansas 2,551,373 1,323 52

California 33,145,121 4,261 13

Colorado 4,056,133 1,549 38

Connecticut 3,282,031688 21

Delaware 753,538 138 18

District of Columbia 519,000 ... ...

Florida 15,111,244 3,180 21

Georgia 7,788,240 2,336 30

Hawaii 1,185,497 150 13

Idaho 1,251,700 989 79

Illinois 12,128,370 2,666 22

Indiana 5,942,901 2,115 36

Iowa 2,869,413 1,473 51

Kansas 2,654,052 1,261 48

Kentucky 3,960,825 1,704 43

Louisiana 4,372,035 1,490 34

Maine 1,253,040 636 51

Maryland 5,171,634 779 15

Massachusetts 6,175,169 942 15

Michigan 9,863,775 3,386 34

Minnesota 4,775,508 2,068 43

Mississippi 2,768,619 1,373 50

Missouri 5,468,338 2,695 49

Montana 882,779 1,370 155

Nebraska 1,666,028 885 53

Nevada 1,809,253 603 33

New Hampshire 1,201,134 542 45

New Jersey 8,143,412 504 6

New Mexico 1,739,844 803 46

New York 18,196,601 2,746 15

North Carolina 7,650,789 2,275 30

North Dakota 633,666 594 94

Ohio 11,256,654 3,158 28

Oklahoma 3,358,044 1,666 50

Oregon 3,316,154 1,905 57

Pennsylvania 11,994,016 3,623 30

Rhode Island 990,819 130 13

South Carolina 3,885,736 927 24

South Dakota 733,133 573 78

Tennessee 5,483,535 1,868 34

Texas 20,044,141 6,457 32

Utah 2,129,836 769 36

Vermont 593,740 490 83

Virginia 6,872,912 2,053 30

Washington 5,756,3611,549 27

West Virginia 1,806,928 1,279 71

Wisconsin 5,250,446 1,944 37

Wyoming 479,602 713 149

Sources: Population data, Census Bureau; FFL data, Bureau of Alcohol, Tobacco

and Firearms.
Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms •Commerce in Firearms in the United States

February 2000 A-15

Table C.2.1—Federal Firearms Licensees by State, FY 1997

Destructive Device

Armor Piercing

Manufacturer Ammunition

 Pawn- Ammu- ManufacState Total Dealer broker Collector nition Firearms Importer Dealer turer Importer

Total 107,554 79,285 9,956 13,512 2,451 1,414 733 13 118 72

Alabama 1,785 1,071 456 184 38 17 10 ... 5 4

Alaska 1,388 1,232 67 48 34 2 5 ... ... ...

Arizona 1,868 1,392 128 176 75 63 24 ... 6 4

Arkansas 1,533 921 461 100 27 15 4 ... 4 1

California 7,023 4,808 317 1,466 161 127 121 1 15 7

Colorado 1,893 1,432 235 153 33 25 15 ... ... ...

Connecticut 1,234 779 13 343 21 53 20 1 2 2

Delaware 205 140 8 49 5 ... 2 ... 1 ...

District of Columbia ... ... ... ... ... ... ... ... ... ...

Florida 4,4312,600 854 726 100 95 41 ... 8 7

Georgia 2,885 1,701 791 290 50 35 16 ... 1 1

Guam 40 24 ... 4 6 ... 6 ... ... ...

Hawaii 220 172 1 42 5 ... ... ... ... ...

Idaho 1,160 874 173 50 38 21 3 ... 1 ...

Illinois 3,814 2,843 90 737 82 37 19 ... 4 2

Indiana 2,754 2,282 127 250 66 23 6 ... ... ...

Iowa 1,708 1,493 96 83 26 6 3 ... 1 ...

Kansas 1,536 1,239 130 98 45 13 9 ... 1 1

Kentucky 2,046 1,490 383 137 18 10 6 ... 1 1

Louisiana 1,798 1,339 263 157 23 11 3 ... ... 2

Maine 873 713 35 74 23 15 9 ... 3 1

Maryland 1,373 839 49 421 18 33 11 ... ... 2

Massachusetts 1,995 1,146 2 734 33 57 15 2 4 2

Michigan 4,593 3,744 80 63176 34 20 12 5

Minnesota 2,615 2,130 139 232 52 39 18 ... 3 2

Mississippi 1,595 1,119 357 88 20 3 8 ... ... ...

Missouri 3,725 2,610 337 655 66 35 16 ... 4 2

Montana 1,662 1,386 146 55 45 20 10 ... ... ...

Nebraska 1,097 933 51 70 27 9 6 ... 1 ...

Nevada 796 562 70 103 26 23 11 ... 1 ...

New Hampshire 739 572 8 102 27 24 6 ... ... ...

New Jersey 855 579 1221 24 9 16 1 2 2

New Mexico 948 705 135 75 18 9 4 ... 2 ...

New York 4,160 3,194 11 810 72 31 40 ... 2 ...

North Carolina 3,020 2,016 499 381 82 33 9 ... ... ...

North Dakota 706 623 30 3120 2 ... ... ... ...

Ohio 4,111 3,314 153 458 119 47 16 ... 4 ...

Oklahoma 1,990 1,320 465 112 60 25 8 ... ... ...

Oregon 2,328 2,042 42 117 83 29 14 ... 1 ...

Pennsylvania 5,104 3,979 13 849 155 69 25 2 9 3

Puerto Rico 84 63 ... 10 9 ... 2 ... ... ...

Rhode Island 281 152 1 117 8 2 1 ... ... ...

South Carolina 1,216 771 239 169 19 12 5 ... ... 1

South Dakota 704 594 5123 20 11 5 ... ... ...

Tennessee 2,366 1,605 419 219 47 48 16 2 10 ...

Texas 7,857 5,821 1,232 482 168 100 45 1 4 4

Utah 913 700 115 39 26 25 7 ... 1 ...

Vermont 630 541 144 22 10 8 112

Virginia 2,886 2,079 175 510 52 24 30 1 3 12

Washington 2,141 1,588 203 206 80 35 28 ... 1 ...

West Virginia 1,496 1,199 195 58 23 11 6 ... 3 1

Wisconsin 2,523 2,099 30 298 59 26 5 ... 6 ...

Wyoming 851 715 79 25 19 11 ... ... 1 1

Source: Bureau of Alcohol, Tobacco and Firearms; National Licensing Center. Data as of September 30, 1997.
Commerce in Firearms in the United States •Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms

A-16 February 2000

Table C.1.2.2—Federal Firearms Licensees by State, FY 1998

Destructive Device

Armor Piercing

Manufacturer Ammunition

 Pawn- Ammu- ManufacState Total Dealer broker Collector nition Firearms Importer Dealer turer Importer

Total 105,536 75,619 10,176 14,865 2,374 1,546 741 12 125 68

Alabama 1,799 1,058 450 215 37 21 9 ... 5 4

Alaska 1,331 1,165 65 60 35 1 5 ... ... ...

Arizona 1,865 1,336 144 213 67 70 25 ... 6 4

Arkansas 1,528 889 472 119 24 15 2 ... 5 2

California 6,607 4,354 314 1,515 147 134 119 1 18 5

Colorado 1,848 1,362 240 176 34 24 12 ... ... ...

Connecticut 1,193 721 15 352 21 58 21 1 2 2

Delaware 203 135 6 56 3 ... 2 ... 1 ...

Dist of Columbia ... ... ... ... ... ... ... ... ... ...

Florida 4,422 2,503 834 832 93 98 44 2 9 7

Georgia 2,839 1,583 797 360 44 40 13 ... 1 1

Guam 37 23 ... 2 6 ... 6 ... ... ...

Hawaii 206 159 1 45 1 ... ... ... ... ...

Idaho 1,156 861 170 60 38 23 3 ... 1 ...

Illinois 3,718 2,724 92 762 82 35 18 ... 3 2

Indiana 2,674 2,160 129 291 62 26 6 ... ... ...

Iowa 1,688 1,444 94 109 29 8 3 ... 1 ...

Kansas 1,515 1,198 130 119 43 14 9 ... 1 1

Kentucky 2,023 1,427 400 155 19 13 7 ... 1 1

Louisiana 1,793 1,307 254 189 24 14 3 ... ... 2

Maine 833 666 42 77 22 11 11 ... 3 1

Maryland 1,361 776 49 473 17 32 11 ... 1 2

Massachusetts 1,972 1,073 2 780 33 61 17 1 4 1

Michigan 4,466 3,552 84 692 77 35 18 1 2 5

Minnesota 2,567 2,051133 256 56 46 20 ... 3 2

Mississippi 1,587 1,091 355 109 18 5 9 ... ... ...

Missouri 3,722 2,524 345 727 64 43 13 ... 4 2

Montana 1,645 1,356 152 55 48 23 11 ... ... ...

Nebraska 1,093 911 52 84 29 11 6 ... ... ...

Nevada 795 539 76 112 27 29 11 ... 1 ...

New Hampshire 733 560 8 108 28 22 7 ... ... ...

New Jersey 758 537 1168 24 9 16 111

New Mexico 948 687 136 91 18 9 5 ... 2 ...

New York 3,958 2,955 11 854 61 34 41 ... 2 ...

North Carolina 2,994 1,930 511 431 75 37 10 ... ... ...

North Dakota 696 600 35 37 212 1... ... ...

Ohio 4,080 3,218 157 513 117 55 16 ... 4 ...

Oklahoma 2,007 1,276 500 140 58 26 7 ... ... ...

Oregon 2,306 1,987 48 141 80 36 13 ... 1 ...

Pennsylvania 4,976 3,787 16 914 150 72 24 1 9 3

Puerto Rico 75 57 ... 10 7 ... 1 ... ... ...

Rhode Island 270 138 2 120 7 2 1 ... ... ...

South Carolina 1,202 733 246 183 18 15 5 ... 1 1

South Dakota 685 568 60 20 20 12 5 ... ... ...

Tennessee 2,394 1,571 431 261 48 56 17 1 9 ...

Texas 7,702 5,497 1,285 571 170 108 51 1 5 4

Utah 905 681120 43 28 26 6 ... 1 ...

Vermont 616 514 1 54 21 11 10 1 2 2

Virginia 2,845 2,001 178 538 52 31 30 1 4 10

Washington 2,096 1,502 204 250 72 37 28 ... 2 1

West Virginia 1,504 1,166 215 76 24 12 7 ... 3 1

Wisconsin 2,474 2,019 37 316 58 32 6 ... 6 ...

Wyoming 826 687 77 31 17 12 ... ... 1 1

Source: Bureau of Alcohol, Tobacco and Firearms; National Licensing Center. Data as of September 30, 1998.
Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms •Commerce in Firearms in the United States

February 2000 A-17

Table C.1.2.3—Federal Firearms Licensees by State, FY 1999

Destructive Device

Armor Piercing

Manufacturer Ammunition

 Pawn- Ammu- ManufacState Total Dealer broker Collector nition Firearms Importer Dealer turer Importer

Total 103,942 71,290 10,035 17,763 2,247 1,639 755 11 127 75

Alabama 1,805 999 437 281 39 27 11 ... 6 5

Alaska 1,277 1,108 64 68 30 2 5 ... ... ...

Arizona 1,862 1,289 140 257 61 80 24 ... 7 4

Arkansas 1,514 845 474 140 27 16 3 ... 7 2

California 6,406 4,005 286 1,728 127 127 108 1 17 7

Colorado 1,863 1,325 238 234 32 23 11 ... ... ...

Connecticut 1,181 675 13 382 19 61 25 1 2 3

Delaware 200 128 6 61 2 ... 2 ... 1 ...

District of Columbia ... ... ... ... ... ... ... ... ... ...

Florida 4,488 2,403 800 1,028 89 104 46 2 9 7

Georgia 2,893 1,535 795 461 42 45 13 ... 1 1

Guam 4126 ... 3 6 ... 6 ... ... ...

Hawaii 206 152 1 52 1 ... ... ... ... ...

Idaho 1,126 825 163 69 37 26 5 ... 1 ...

Illinois 3,717 2,604 92 877 83 36 18 ... 4 3

Indiana 2,607 2,014 133 367 59 28 6 ... ... ...

Iowa 1,674 1,386 101 142 31 9 3 ... 2 ...

Kansas 1,490 1,141 127 155 41 15 9 ... 1 1

Kentucky 1,943 1,341 374 178 23 17 8 ... 1 1

Louisiana 1,810 1,245 255 267 25 13 3 ... ... 2

Maine 788 602 4197 24 11 9 ... 3 1

Maryland 1,394 740 51 539 17 33 12 ... 1 1

Massachusetts 1,971 957 3 897 30 63 15 1 4 1

Michigan 4,367 3,339 82 810 71 38 19 1 2 5

Minnesota 2,552 1,953 129 337 53 50 21 ... 5 4

Mississippi 1,561 1,041 344 140 17 9 9 ... 1 ...

Missouri 3,725 2,382 342 870 6149 15 ... 4 2

Montana 1,527 1,229 152 70 44 18 14 ... ... ...

Nebraska 1,028 841 46 96 27 12 6 ... ... ...

Nevada 806 519 86 134 24 29 13 ... 1 ...

New Hampshire 724 533 7 128 25 20 11 ... ... ...

New Jersey 708 512 1 141 23 10 18 1 1 1

New Mexico 956 666 139 113 16 14 6 ... 2 ...

New York 3,795 2,745 13 903 62 32 39 ... 1 ...

North Carolina 2,935 1,779 500 547 66 35 8 ... ... ...

North Dakota 675 563 40 45 22 3 2 ... ... ...

Ohio 3,976 3,021 158 604 111 62 17 ... 3 ...

Oklahoma 1,962 1,212 475 186 55 29 5 ... ... ...

Oregon 2,255 1,876 52 204 70 41 11 ... 1 ...

Pennsylvania 4,946 3,647 15 1,027 138 79 27 1 9 3

Puerto Rico 76 55 ... 9 10 ... 2 ... ... ...

Rhode Island 273 129 2 135 6 1 ... ... ... ...

South Carolina 1,184 691 242 209 18 17 5 ... 1 1

South Dakota 651 522 61 34 19 10 5 ... ... ...

Tennessee 2,386 1,456 426 377 41 60 18 ... 8 ...

Texas 7,575 5,198 1,299 739 163 110 55 2 5 4

Utah 896 652 120 65 25 28 5 ... 1 ...

Vermont 599 493 1 63 18 10 10 ... 2 2

Virginia 2,847 1,888 178 641 55 35 34 1 4 11

Washington 2,022 1,364 202 325 66 39 24 ... 1 1

West Virginia 1,445 1,082 210 96 28 17 8 ... 3 1

Wisconsin 2,444 1,917 38 392 53 34 6 ... 4 ...

Wyoming 790 640 81 40 15 12 ... ... 1 1

Source: Bureau of Alcohol, Tobacco and Firearms, National Licensing Center. Data as of September 30, 1999.
Commerce in Firearms in the United States •Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms

A-18 February 2000

Table C.3—Federal Firearms Licensees Total, FY 1975-1999

Destructive Device

Armor Piercing

Manufacturer Ammunition

Fiscal Pawn- Ammu- Manufac- Change from

Year Total Dealer broker Collector nition Firearms Importer Dealer turer Importer prior year

1975 161,927 146,429 2,813 5,211 6,668 364 403 9 23 7

1976 165,697 150,767 2,882 4,036 7,181 397 403 4 19 8 2.3%

1977 173,484 157,463 2,943 4,446 7,761 408 419 6 28 10 4.7%

1978 169,052 152,681 3,113 4,629 7,735 422 417 6 35 14 -2.6%

1979 171,216 153,861 3,388 4,975 8,055 459 426 7 33 12 1.3%

1980 174,619 155,690 3,608 5,481 8,856 496 430 7 40 11 2.0%

1981 190,296 168,301 4,308 6,490 10,067 540 519 7 44 20

1982 211,918 184,840 5,002 8,602 12,033 675 676 12 54 24

1983 230,613 200,342 5,388 9,859 13,318 788 795 16 71 36 8.8%

1984 222,443 195,847 5,140 8,643 11,270 710 704 15 74 40 -3.5%

1985 248,794 219,366 6,207 9,599 11,818 778 881 15 85 45 11.8%

1986 267,166 235,393 6,998 10,639 12,095 843 1,035 16 95 52 7.4%

1987 262,022 230,888 7,316 11,094 10,613 852 1,084 16 101 58 -1.9%

1988 272,953 239,637 8,261 12,638 10,169 926 1,123 18 112 69 4.2%

1989 264,063 231,442 8,626 13,536 8,345 922 989 21 110 72 -3.3%

1990 269,079 235,684 9,029 14,287 7,945 978 946 20 117 73 1.9%

1991 276,116 241,706 9,625 15,143 7,470 1,059 901 17 120 75 2.6%

1992 284,117 248,155 10,452 15,820 7,412 1,165 894 15 127 77 2.9%

1993 283,925 246,984 10,958 16,635 6,947 1,256 924 15 128 78 -0.1%

1994 250,833 213,734 10,872 17,690 6,068 1,302 963 12 122 70 -11.7%

1995 191,495 158,240 10,155 16,354 4,459 1,242 842 14 118 71 -23.7%

1996 135,794 105,398 9,974 14,966 3,144 1,327 786 12 117 70 -29.1%

1997 107,554 79,285 9,956 13,512 2,451 1,414 733 13 118 72 -20.8%

1998 105,536 75,619 10,176 14,875 2,374 1,546 741 12 125 68 -1.9%

1999 103,942 71,290 10,035 17,763 2,247 1,639 755 11 127 75 -1.5%

Source: Bureau of Alcohol, Tobacco and Firearms, National Licensing Center. Data are based on active firearms

licenses, license type statistics as of the end of each fiscal year.
Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms •Commerce in Firearms in the United States

February 2000 A-19

Table C.4.1—License Applications and Application Inspections,

FY 1969-1989

Source: Bureau of Alcohol, Tobacco and Firearms.

a/ Statistics for FY 1969-1971 combine new and renewal applications.

b/ Statistics for FY 1969-1971 combine application and compliance inspections.

c/ Does not include approximately 24,000 existing federal firearms licensees.

d/ Percent inspected could not be calculated because application and compliance inspections were combined with new

applications, due to implementation of the Gun Control Act of 1968.

Fiscal New Percent

Year Applicationsa/ Inspectionsb/ inspected

1969 86,598 c/ 47,454 ...d/

1970 27,866 21,295 ...d/

1971 23,826 32,684 ...d/

1972 24,526 31,259 100.0%

1973 24,321 21,732 89.4%

1974 24,873 27,483 100.0%

1975 29,183 26,695 91.4%

1976 29,511 28,222 95.6%

1977 32,560 20,736 63.7%

1978 29,531 8,361 29.3%

1979 32,678 1,037 3.2%

1980 36,052 1,157 3.2%

1981 41,798 2,128 5.0%

1982 44,745 1,831 5.0%

1983 49,669 2,723 5.4%

1984 39,321 2,551 6.4%

1985 37,385 2,672 7.1%

1986 42,842 2,519 5.9%

1987 36,835 2,191 5.9%

1988 32,724 1,431 4.4%

1989 34,318 2,384 6.9%
Commerce in Firearms in the United States •Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms

A-20 February 2000

Table C.4.2—License Applications and Application Inspections,

FY 1990-1999

Fiscal Full field Preliminary a/

Year New applicants Renewals inspection investigation

1990 34,336 61,536 3,358 ...

1991 34,567 57,327 4,000 ...

1992 37,085 58,873 3,582 ...

1993 41,545 66,811 4,701 25,922

1994 25,393 37,079 2,462 14,805

1995 7,777 19,541 4,815 10,822

1996 8,461 34,304 6,385 21,795

1997 6,188 30,290 6,430 16,363

1998 6,881 24,092 8,959 1,579

1999 8,581 31,978 ... b/ ... b/

Source: Bureau of Alcohol, Tobacco and Firearms.

a/ Preliminary investigation applies to applications for renewal that were not subject to full field inspection, but were part of the enhanced renewal screening begun in 1993.

b/ Data for 1999 are not yet available.
Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms •Commerce in Firearms in the United States

February 2000 A-21

Table C.5—Firearms Licensees and Compliance Inspections,

FY 1969-1999

Fiscal Percent

Year Licensees Inspectionsb/ inspected

1969 86,598 a/ 47,454 54.7%

1970 138,928 21,295 15.3%

1971 149,212 32,684 21.9%

1972 150,215 31,164 20.7%

1973 152,232 16,003 10.5%

1974 158,753 15,751 10.0%

1975 161,927 10,944 6.7%

1976 165,697 15,171 9.1%

1977 173,484 19,741 11.3%

1978 169,052 22,130 13.1%

1979 171,216 14,744 8.6%

1980 174,619 11,515 6.5%

1981 190,296 11,035 5.7%

1982 211,918 1,829 8.0%

1983 230,613 2,662 1.1%

1984 222,443 8,861 3.9%

1985 248,794 9,527 3.8%

1986 267,166 8,605 3.2%

1987 262,022 8,049 3.1%

1988 272,953 9,283 3.4%

1989 264,063 7,142 2.7%

1990 269,079 8,471 3.1%

1991 276,116 8,258 3.0%

1992 284,117 16,328 5.7%

1993 283,925 22,330 7.9%

1994 250,833 20,067 8.0%

1995 187,931 13,141 7.0%

1996 135,794 10,051 7.4%

1997 107,554 5,925 5.5%

1998 105,536 5,043 4.8%

1999 103,942 ... c/ ... c/

Source: Bureau of Alcohol, Tobacco and Firearms

a/ New licenses issued first year of Gun Control Act (GCA).

b/ Application and compliance inspections, 1969-1971

c/ Data for 1999 are not yet available.
Commerce in Firearms in the United States •Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms

A-22 February 2000

Table C.6—Actions on Federal Firearms Licenses , FY 1975-1999

Original application Renewal applications Other Actions

Fiscal Licenses

Year Processed Denied Withdrawn Abandoned Processed Denied Withdrawn Abandoned revoked

1975 29,183 150 1,651 ... 138,719 273 334 ... 7

1976 29,511 209 2,077 ... 138,050 261 436 ... 6

1977 32,560 216 1,645 ... 136,629 207 409 ... 10

1978 29,531 151 1,015 414 139,383 168 141 449 0

1979 32,678 124 432 433 143,021 93 240 942 12

1980 36,052 96 601 661 143,527 31 336 800 10

1981 41,798 85 742 329 152,153 16 385 495 7

1982 44,745 52 580 370 161,390 12 332 350 4

1983 49,669 151 916 649 163,386 48 514 700 6

1984 39,321 98 706 833 163,950 23 449 825 9

1985 37,385 103 666 598 52,768 9 226 307 18

1986 42,842 299 698 452 47,648 14 135 181 27

1987 36,835 121 874 458 61,596 38 428 225 14

1988 32,724 30 506 315 52,738 19 422 182 4

1989 34,318 34 561 360 54,892 14 1,456a/ 215 12

1990 34,336 46 893 404 61,536 29 48 63 9

1991 34,567 37 1,059 685 57,327 15 82 106 17

1992 37,085 57 1,337 611 58,873 4 26 88 24

1993 41,545 343 6,030 1,844 66,811 53 1,187 683 26

1994 25,393 136 4,480 3,917 37,079 191 1,128 969 44

1995 7,777 49 1,046 1,180 19,541 65 1,077 1,254 35

1996 8,461 58 1,061 629 34,304 99 2,700 980 22

1997 7,039 24 692 366 30,660 144 2,185 801 11

1998 7,090 19 621 352 26,042 65 689 509 19

1999 8,581 23 48 298 31,978 63 698 539 20

Source: FELC Monthly Operations Reports.

a/ High number is due to transfer of the backlog of firearms files of three regional offices to the Firearms and Explosives Licensing Center (FELC) in 1989. Also, 1989 was the renewal year for three-year ammunition-only licenses

issued in 1986, prior to a change in the law eliminating licenses to deal in ammunition only. These licensees were

advised to withdraw their renewal applications.
Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms •Commerce in Firearms in the United States

February 2000 A-23

Table D.1—Distribution of Traces Among Active Dealers, 1998

Number of

traces to Dealers Traces

a dealer Percent Number Percent Number

All Retail Dealers (Retail Gun

Dealers and Pawnbrokers) 0 or more 100.0% 83,272 ... ...

1 or more 14.3% 11,947 100.0% 55,990

2 or more 7.2% 6,056 89.5% 50,099

5 or more 2.7% 2.253 71.7% 40,139

10 or more 1.2% 1,020 57.4% 32,147

25 or more 0.4% 332 39.6% 22,168

50 or more 0.2% 132 27.2% 15,220

Retail Gun Dealers 0 or more 100.0% 73,016 ... ...

1 or more 11.8% 8,651 100.0% 40,809

2 or more 5.6% 4,114 88.2% 36,272

5 or more 2.8% 1,517 72.5% 29,599

10 or more 1.0% 713 59.7% 24,360

25 or more 0.3% 252 43.2% 17,630

50 or more 0.1% 99 30.4% 12,399

Pawnbrokers 0 or more 100.0% 10,256 ... ...

1 or more 32.1% 3,296 100.0% 15,181

2 or more 18.9% 1,942 91.1% 13,827

5 or more 7.2% 736 69.4% 10,540

10 or more 3.0% 307 51.3% 7,787

25 or more 0.8% 85 29.9% 4,638

50 or more 0.3% 33 18.6% 2,821

Sources: Data, Bureau of Alcohol, Tobacco and Firearms; Tables prepared by Glenn L. Pierce, Northeastern University, College of Criminal Justice, Center for Criminal Justice Policy Research.
Commerce in Firearms in the United States •Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms

A-24 February 2000

Table D.2—Distribution Traces for Guns with Time-To-Crime of

Three Years or Less

Number of

traces to Dealers Traces

a dealer Percent Number Percent Number

All Retail Dealers (Retail Gun

Dealers and Pawnbrokers) Total 100.0% 82,502 100.0% 54,836

0 86.5% 71,325 ... ...

0-24 6.2% 5,152 24.6% 13,470

25-49 1.2% 1,031 25.9% 14,202

50-74 1.9% 1,552 26.6% 14,615

75 or more 4.2% 3,442 22.9% 12,549

Retail Gun Dealers Total 100.0% 72,358 100.0% 39,793

0 89.0% 64,365 ... ...

0-24 5.3% 3,802 24.8% 9,872

25-49 1.0% 688 26.9% 10,698

50-74 1.5% 1,054 26.7% 10,623

75 or more 3.4% 2,449 21.6% 8,600

Pawnbrokers Total 100.0% 10,144 100.0% 15,043

0 68.6% 6,960 ... ...

0-24 13.3% 1,350 23.9% 3,598

25-49 3.4% 343 23.3% 3,504

50-74 4.9% 498 26.5% 3,992

75 or more 9.8% 993 26.3% 3,949

Sources: Data, Bureau of Alcohol, Tobacco and Firearms; Tables prepared by Glenn L. Pierce, Northeastern University, College of Criminal Justice, Center for Criminal Justice Policy Research.
Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms •Commerce in Firearms in the United States

February 2000 A-25

Table D.3.—Traces and Average Time-To-Crime, 1998a/

More than half of all traces

were of guns recovered by Retail dealers with: Traces to retail dealers with:

law enforcement — 1-9 10-24 25-49 50+ 1-9 10-24 25-49 50+

traces traces traces traces traces traces traces traces

Percentb/

3 years or less after

first retail purchase

All retail dealers (retail gun

dealers and pawnbrokers) 5.4 % 0.4 % 0.1% 0.1% 18.8 % 8.5 % 6.3 % 15.9 %

Retail gun dealers 4.4 0.3 0.1 0.1 17.6 8.0 5.7 17.0

Pawnbrokers 13.2 1.0 0.3 0.2 22.1 9.9 7.7 13.2

More than 3 years after first

retail purchase

All retail dealers (retail gun

dealers and pawnbrokers) 6.9 % 0.4 % 0.1% 0.1% 22.9 % 9.1% 6.6 % 11.8 %

Retail gun dealers 5.7 0.3 0.1 0.1 21.6 8.6 7.3 14.2

Pawnbrokers 15.2 1.2 0.2 0.1 26.3 11.6 3.7 5.6

Number

3 years or less after

first retail purchase (retail gun

dealers and pawnbrokers)

All retail dealers 4,503 319 102 70 10,324 4,681 3,429 8,730

Retail gun dealers 3,170 218 68 47 7,009 3,195 2,273 6,746

Pawnbrokers 1,333 101 34 23 3,315 1,486 1,156 1,984

More than 3 years after first

 retail purchase

All retail dealers (retail gun

dealers and pawnbrokers) 5,666 354 101 62 12,559 5,161 3,462 6,490

Retail gun dealers 4,121 234 83 52 8,606 3,410 2,901 5,653

Pawnbrokers 1,545 120 18 10 3,953 1,751 561 837

Sources: Data, Bureau of Alcohol, Tobacco and Firearms; Tables prepared by Glenn L. Pierce, Northeastern University, College of Criminal Justice, Center for Criminal Justice Policy Research.

a/ Gun traces without initial purchase data are excluded from these calculations.

b/ Percentages are based on the total for each category. For dealers, denominators are 83,502 for all; 72,358 for retail

dealers; and 10,144 for pawnbrokers. For traces, the denominators are 54,836 for all; 39,793 for retail dealers; and

15,043 for pawnbrokers.
Appendix B
Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms •Commerce in Firearms in the United States

February 2000 B-1

CATEGORIES OF FEDERAL FIREARMS LICENSEES

Under the Gun Control Act of 1968, there are currently nine different categories of federal firearms licenses, each affording the holder certain privileges and imposing certain responsibilities.

The Type 01-Dealer license is the most common

type of federal firearms license. It applies to

individuals who purchase firearms for resale to

law enforcement agencies, the general public or

other licensees. Dealers are required to be “engaged in the business” of buying and selling

firearms with the principal objective of livelihood

or profit. A Type 01 license will not be issued

merely to enhance a personal gun collection.

However, some Type 01 dealers operate as gunsmiths, receiving and repairing firearms for others.

Dealers are required to maintain certain receipt

and sale records (chiefly, a written acquisition/

disposition logbook and firearms transaction

records), which are subject to a regulatory compliance inspection by ATF every 12 months.

Dealers may receive firearms through the mail

and may sell a shotgun or rifle to residents of

states other than the state they are licensed in, if

the sale is legal in both states. The dealer’s license

is specific to a location and the dealer must

maintain regular business hours at that location.

The Type 02 Pawnbroker license gives pawnbrokers all the rights and responsibilities of a Type

01 dealer, and in addition, authorizes pawnbrokers

to receive firearms “in pawn” as collateral for

loans.

The Type 03 Collector license allows the holder

to receive and sell (across state lines) only firearms classified as “curios and relics” under the

Gun Control Act. Collector licensees have no

special privileges with regard to firearms that are

not curios or relics. Curios and relics are defined

as items of special interest to collectors by reason

of some quality other than a quality associated

with sporting or defensive weapons. To be considered a curio or relic, a firearm must 1) have

been manufactured at least fifty years ago, 2) be

certified by the curator of a municipal, state or

federal museum that exhibits firearms to be curio

or relics of museum interest, or 3) derive a substantial amount of their monetary value from the

fact that they are novel, rare, bizarre or associated

with some historical event, period or figure. ATF

may inspect the inventory and records of a licensed collector in a warrantless inspection once

during a 12-month period to ensure compliance

with GCA record keeping requirements. However,

at the collector’s option, the compliance inspection

may be conducted at an ATF office. Collectors do

not have to complete Form 4473 before transferring

a curio or relic firearm, but must maintain a logbook that includes purchaser information.

Type 04 and 05 licenses are reserved.

The Type 06 Ammunition Manufacturer license applies to manufacturers of ammunition

for resale. Ammunition manufacturers are required

to maintain only normal commercial records and

pay an excise tax on their ammunition directly to

ATF. Ammunition manufacturers typically sell to

licensed dealers, but may sell directly to the

public.

 The Type 07 Firearms Manufacturer license

applies to manufacturers who make firearms

for resale. Firearms manufacturers maintain

the same general type of logbook kept by dealers and also pay an excise tax on the weapons

they manufacture (10% or 11% of the sale

price) directly to ATF. Manufacturers of firearms typically sell to licensed dealers, but may

sell directly to the public if they prepare and

retain firearms transaction records.

The Type 08 Importer license applies to importers of firearms or ammunition. Importers must

maintain the same general type of logbook kept

by dealers and also pay an excise tax directly to

ATF on the firearms or ammunition they import.

Importers of firearms typically sell to licensed

dealers, but may sell directly to the public if they

prepare and maintain firearms transaction

records. Ammunition importers may sell directly

to the public and need not maintain transaction

records.

Type 09, 10 and 11 licenses authorize the

manufacture, importing, and dealing in

destructive devices. These licenses are narrow in scope and comprise a very small percentage of federal firearms licenses.
Commerce in Firearms in the United States •Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms

B-2 February 2000
Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms •Commerce in Firearms in the United States

February 2000 B-3

OMB. No. 1512-0507 (03/31/2002)

FOR ATF USE ONLY

TAX $

PENALTY $

INTEREST $

TOTAL $

EXAMINED BY:

OTHER

DATE:

DEPARTMENT OF THE TREASURY

BUREAU OF ALCOHOL, TOBACCO AND FIREARMS

FEDERAL FIREARMS AND AMMUNITION

EXCISE TAX RETURN

(Prepare in Duplicate - See Attached Instructions)

PART I - GENERAL

1. NAME, TRADE OR BUSINESS NAME, AND ADDRESS (mailing and

location) OF TAXPAYER (number, street, city, State and ZIP Code)

CHECK IF ABOVE INFORMATION HAS CHANGED SINCE FILING

LAST RETURN.

2. TELEPHONE NUMBER (If new taxpayer, or if your phone number

changed)

3. EMPLOYER IDENTIFICATION NUMBER, OR IF FILING ONE-TIME OR

OCCASIONAL RETURN, SOCIAL SECURITY NUMBER

4. IF FINAL, ONE-TIME OR OCCASIONAL RETURN (see instruction 9),

CHECK THIS BOX

5. PAYMENT, IF ANY, FOR THIS RETURN MADE BY:

CHECK OR

MONEY ORDER

EFT OTHER (Specify)

PART II - COMPUTATION OF TAX ON SALES OR USES DURING TAX PERIOD

6. TAX PERIOD (see instruction 3) STARTS ON / / AND ENDS ON / /

(month, day, year) (month, day, year)

TOTALS DURING TAX PERIOD PISTOLS AND

REVOLVERS

OTHER

FIREARMS

SHELLS AND

CARTRIDGES

10% 11% 11%

7. ALL ARTICLES SOLD by sale price

8. ARTICLES SOLD TAX-FREE OR TAX EXEMPT by sale price

9. TAXABLE SALES (line 7 minus line 8)

10. NET ADJUSTMENTS TO SALE PRICE OF TAXABLE SALES

MADE DURING PERIOD (show decrease in parentheses)

11. ADJUSTED TAXABLE SALES (line 9 plus or minus line 10)

12. TAXABLE USE OF ARTICLES by taxable sale price

13. TAXABLE AMOUNT OF SALES AND USES (line 11 plus line 12)

14. TAX RATE

15. AMOUNT OF TAX (multiply line 13 by line 14)

$$$

$$$

$

$

$

$

$

$

$

$

PART III - COMPUTATION OF TAX LIABILITY FOR TAX PERIOD

16. TOTAL OF AMOUNTS FROM LINE 15

17. ADJUSTMENTS INCREASING AMOUNT DUE (line 33, Schedule B)

18. GROSS TAX DUE (line 16 plus line 17)

19. ADJUSTMENTS DECREASING AMOUNT DUE (line 39, Schedule C) (Cannot be more than the amount on line 18.)

20. NET TAX LIABILITY (Line 18 minus line 19. Should agree with line 27, Schedule A. Cannot be less than zero.)

21. TOTAL DEPOSITS FOR TAX PERIOD

22. BALANCE OF TAX DUE (amount that line 20 exceeds line 21)

23. CHECK WHAT YOU WANT DONE WITH THE AMOUNT THAT LINE 21 EXCEEDS LINE 20.

REFUND TO ME OR APPLY TO MY NEXT TAX RETURN (show in Schedule C of next tax return)

▼COMPARE LINE 20 TO LINE 21 AND COMPLETE LINE 22 OR 23 AS APPLICABLE ▲

ATF F 5300.26 (3-99) PREVIOUS EDITION MAY BE USED
Commerce in Firearms in the United States •Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms

B-4 February 2000

SCHEDULE A - STATEMENT OF NET TAX LIABILITY DURING TAX PERIOD

DEPOSIT PERIOD

(a)

NET TAX

LIABILITY

(b)

DEPOSIT PERIOD

(a)

NET TAX

LIABILITY

(b)

24. FIRST MONTH

Day 1 through 15

Day 16 through last day

25. SECOND MONTH

Day 1 through 15

Day 16 through last day

26. THIRD MONTH

Day 1 through 15

Day 16 through las day*

27. TOTAL OF COLUMN (b)

$

$

$

$

$

$

$

$

*For the period of September 16-30, show a separate amount for September 16-25 and September 26-30.

SCHEDULE B - EXPLANATION OF INCREASING ADJUSTMENTS

EXPLANATION OF INDIVIDUAL ERRORS OR TRANSACTIONS

(a)

AMOUNT OF ADJUSTMENTS

(b) TAX (c) INTEREST (d) PENALTY

28.

29.

30.

31.

32. TOTALS OF COLUMNS (b), (c) and (d)

33. TOTAL ADJUSTMENTS INCREASING AMOUNT DUE (line 32, col. (b) plus cols. (c) and (d)):

$ $ $

$ $ $

$

$ $

$ $

$

SCHEDULE C - EXPLANATION OF DECREASING ADJUSTMENTS

EXPLANATION OF INDIVIDUAL ERRORS OR TRANSACTIONS

(a)

AMOUNT OF ADJUSTMENTS

(b) TAX (c) INTEREST

34.

35.

36.

37.

38. TOTALS OF COLUMNS (b), (c) and (d)

39. TOTAL ADJUSTMENTS DECREASING AMOUNT DUE (line 38, col. (b) plus cols. (c)):

CERTIFICATION

The tax in schedule C for overpayments other than under 26 U.S.C. Sections 6416(b)(1), (2), (3) and (5), shown on this tax return: (1) has not been

included in the price of the article with respect to which it was imposed nor collected from a vendee and for which I have identified the nature of evidence

available to establish this fact; or (2) has been repaid to the ultimate purchaser of the article by me.

The tax in schedule C for overpayments under 26 U.S.C. Section 6416(b)(1) for certain price readjustments, section 6416(b)(2) for certain uses, sales or

resales of a taxable article or section 6416(b)(3) on tax-paid articles used for further manufacture: (1) has not been included in the price of the article

with respect to which it was imposed nor collected from a vendee and for which I have identified the nature of evidence available to establish this fact; or

authorized official, the written consent of the ultimate vendor to the allowance of the credit.

The tax in schedule C for overpayments under 26 U.S.C. Section 6416(b)(5) for return of installment accounts has been repaid or credited to the

purchaser upon return of the account to me pursuant to the original sales agreement of the account.

Under penalties of perjury I declare that I have examined this return (including any accomapanying explanations, statements, schedules and forms) and

to the best of my knowledge and belief it is true, correct, and includes all transactions and tax liabilities required by law or regulations to be reported.

40. DATE 41. SIGNATURE 41. TITLE

ATF F 5300.26 (3-99)
Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms •Commerce in Firearms in the United States

February 2000 B-5

1. GENERAL. Liability for the manufacturers excise tax under 26 U.S.C.

4181 (pistols, revolvers other firearms, and shells and cartridges) is

reported using this form. tax is imposed on the sale or use of firearms

or ammunition by the manufacturer or importer.

2. HOW TO PREPARE. Follow all the instructions and complete this form

in duplicate. Complete each part and schedule of this return. If not

applicable, write ì0î or ìnone.î Be sure to sign your return. Keep a

copy for your records for at least 3 years. Use blank sheets if additional space is needed. Mark each sheet with your name, employer identification or social security number, the tax return period and the item

number.

3. HOW OFTEN AND WHEN TO FILE. If a filing date of a return falls on

a Saturday, Sunday or legal holiday, the filing date becomes the next

succeeding day which is not a Saturday, Sunday or legal holiday. Also,

a taxpayer may apply to extend the filing date on ATF F 5600.38

because of temporary conditions beyond the taxpayerís control.

a. Quarterly. You are generally required to file a return for a calendar

quarter in which a tax liability is incurred. Calendar quarters are 3-

month periods ending March 31, June 30, September 30, and

December 31. However, you are not required to file a return for a

calendar quarter in which no tax liability has been incurred.

A calendar quarter return id due no later than 1 month after the end

of that quarter (April 30, July 31, October 31, and January 31).

When you have made sufficient and timely deposits of tax (see

instruction 6) for the return, an additional 10 days may be taken to

file the return.

b. Annually. If you filed a return for this tax before but have not tax

liability for an entire calendar year and have not filed a final return

(see instruction 9), then your annual return is due not later than

January 31st of the following year.

c. Monthly or Semimonthly. File monthly or semimonthly returns

when ATf notifies you to do so in writing. A monthly return is due

15 days following the month. a semimonthly period.

4. WHERE AND HOW TO FILE. Send this return to the address listed

below that is appropriate for your principal place of business or of

residence. Include your payment of the amount owed on line 22.

Please make checks or money orders payable to the Bureau of

Alcohol, Tobacco and Firearms and write your employer identification

or social security number on all checks or money orders.

State of Your

Principal Place Send To:

of Business OR Bureau of ATF

Residence: Excise Tax

All states and DC P.O. Box 360804

Pittsburgh, PA 15251-6804

PR or VI Federal Building, Room 659

Carlos Chardon Street

Hato Rey, PR 00918

5. TIMELY FILING. - A tax return and any accompanying payment will be

considered timely filed if it is mailed by the due date. The official postmark of the U.S. Postal Service on the envelope or on the senderís

receipt of certified mail is evidence of the date of mailing. Otherwise,

the taxpayer has the burden of proving the date of filing.

6. DEPOSITS OF TAX. if you will be filing a one-time or occasional

return because you are engaged in any trade or business covered by

this return, deposits are not required. If ATF has informed you, in

writing, to file semimonthly returns, do not makde deposits. Otherwise,

make deposits if you will have a tax liability of more than $2,000 for a

calendar quarter. ATF F 5300.27 must accompany the tax deposit and

refer to this form for additional instructions on how to make deposits.

7. OVERPAYMENTS AND UNDERPAYME NTS. Do not file amended

returns for overpayments and underpayments or for any other reason.

Tax overpayments may be claimed as credits in Schedule C or by filing

a claim for refund on ATF F 2635 (5620.8). Tax overdeposited for a

quarterly return can be refunded on that quarterís return on line 23.

ATF Announcement 94-9 contains additional information about credits

and refunds. Underpayments can be paid through an entry in

Schedule B or according to the instructions of the appropriate ATF

office listed in instruction 10.

The law provides for the payment of interest on underpayments and on

some overpayments of tax. Compute interest, if applicable, at the rate

prescribed by 26 U.S.C. 6621.

8. RECORDS. Every taxpayer must keep records to support all entries

made on this return. Generally, records must be kept at least 3 years

from the date the tax return is filed.

9. FINAL RETURN. If you permanently cease operations related to the

return, check the box in line 4 and attach a statement of: (a) who

(name) will keep the records; (b) the location (address) of the records;

(c) whether the business was transferred to another person; and

(d) to whom (name and address) the business was transferred. Also,

if you making a one-time or occasional importation and are not engaged

in any business related to the return, check the box in line 4.

10. ADDITIONAL INFORMATION. If you have questions about this tax

return or need assistance, please contact the appropriate ATF office

listed below.

State of Your

Principal Place

of Business OR Office to contact:

Residence: BATF

All states and DC National Revenue Center

550 Main Street

Cincinnati, OH 45202-3263

513-684-3817 or 800-398-2282

PR or VI Chief, Puerto Rico Operations

Federal Building, Room 659

Carlos Chardon Street

Hato Rey, PR 00918

809-766-5584

SPECIFIC INSTRUCTIONS

LINE 5. Payment of tax by EFT (electronic funds transfer) requires that

you notify ATF. Refer to ATF P 5000.11.

PART II. Entries on the lines in Part ii are limited to the sales and

uses occurring during the tax period specified in line 6. You can use

Schedule C to show tax decreases for sales or uses reported as taxable in

this or previous tax returns that are resold for certain tax-free purposes or

determined later to qualify as tax-free. Use Schedule B for tax on sales or

uses that occurred in a previous tax period but were NOT included in the

return for that period.

LINE 7. Enter the dollar amount of your total sales of taxable articles,

including tax-exempt or tax-free sales during the tax period stated in line 6.

Do not include articles of which you are not considered to be the manufacturer or importer for purposes of this excise tax. Except for leases and

certain installments sales, you must include all sales even if your customers have not paid.

For most sales and taxpayers, the sale prices are stated on the invoices to

their customers. This line should also include the dollar value of things

other than money to be given in consideration for the article, such as

services, personal property, and articles traded in.

GENERAL INSTRUCTIONS

ATF F 5300.26 (3-99)
Commerce in Firearms in the United States •Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms

B-6 February 2000

Do not include the sale price of a non-taxable article unless it was sold as

a unit with the taxable article. When a taxable article is sold as a unit with

a non-taxable article (for example, a pistol and holster) or with extra parts

or accessories, then enter the sale price of the unit. if a taxable sale,

adjust the unitís sale price on line 10 to exclude the non-taxable article,

part or accessory.

LINE 8. Enter the sale prices of all articles included in line 7 that you sold

tax-free or tax-exempt. Do not include the sale of articles sold taxpaid to

customers who later resell r use the articles for a tax-free purpose; however, you may take a credit in Schedule C or file a claim for refund.

You and your customer may need a Certificate of Tax-Free Registry (ATF F

5300.28). Refer to ATF Industry Circular 93-5 about selling articles taxexempt or tax-free. Failure to follow requirements or to have a Certificate

may result in additional taxes, penalties and interest.

LINE 10. Enter on line 10 the net amount of adjustments to the sale

prices of taxable sales of line 9 during the tax return period.

Decreasing adjustments are allowed for certain items if included in the

sales price to your customer. 27 CFR 53.61(b), and 53.91-93 describe

these exclusions from the sale price. These exclusions include the following items when included in the sales price of the article and not as a separate charge: this excise tax, certain expenses related to the transportation

and delivery of articles to customers, carrying finance or service charges

for credit sales, extra and identical parts, accessories, and non-taxable

articles sold in combination with a taxable article. Also, price readjustments in the same tax period in which the sale occurs may also be taken

in this line, as an adjustment to the tax in Schedule C, or used in determining the sales price (line 7).

Do not use line 10 to subtract the sales price, including excise tax, you

paid to another manufacturer or importer. If you further manufacture

articles on which excise tax was paid by another person, then a credit can

be taken in Schedule C or a claim for refund may be filed.

Increasing adjustments. You may have to increase the sale price of an

article from the amount shown on your invoice. Include any charge which

is required to be paid as a condition of your sale of a taxable article and is

not specifically excluded. Such charges may include warranty, tool and

die, packing or special handling charges and taxes other than this excise

tax. Refer to 267 CFR 53.91 for further information.

Constructive Sale Price. A decreasing or increasing adjustment to a sale

price may be necessary because of the type of sale. Articles sold at retail,

on consignment, or in sales not at armís length (for example, between affiliated companies) and at less than fair market value require constructive

sale prices. Usually, the constructive sale price differs from the sales price

at which you sold the article; therefore, an adjustment is necessary. Refer

to 27 CFR 53.94-97.

LINE 12. Tax is imposed on your business use of taxable articles that you

manufactured or imported. If you regularly sell the articles, compute the

tax based on the lowest established wholesale price. Enter the sum of the

prices for the articles used. Use, among other acts, includes loans of

articles for display, demonstration or familiarization, or for further manufacture of an article not subject to any Federal manufacturers excise tax (26

U.S.C. Chapter 32). Refer to 27 CFR 53.111-115 and ATF Announcement

93-23.

LINE 19. The amount shown on line 19 cannot exceed the amount on line

18. Any excess should be carried over as a credit to your next tax return

in Schedule C or claimed as a refund.

LINE 21. Enter the total amount of deposits made on ATF F 5300.27 for

the tax return period.

LINE 22. Make checks or money orders payable to the Bureau of Alcohol,

Tobacco and Firearms and write your employer identification or social

security number on the check or money order.

SCHEDULE A. If you are required to deposit taxes (see general instruction 6), complete this schedule. Start entering your tax liability beginning

with the period in which your unpaid tax liability exceeds $2,000. For the

remaining period(s) during the quarter, enter the tax liability based on what

line 20 of this return would show if the return was completed just for that

period. Adjustments (Schedules B and C) may not made earlier than the

period in which they arose.

SCHEDULES B AND C. Use these schedules to show underpayment of

tax due on past returns or to claim credit for overpayments of tax paid or

for authorized reductions of tax. The amount of credit claimed in Schedule

C cannot exceed the amount on line 18. Carry over any excess credit to

the next tax return or file ATF F 2635 for a refund.

Fully explain all entries in Schedules B and C. Any claim for credit must

be explained sufficently to determine the legitimacy and circumstances of

the credit and must be supported by the evidence prescribed in 27 CFR

Part 53 and 27 CFR 70.123.

LINES 41-42. If the taxpayer is an individual, the individual must sign. If

the taxpayer is a corporation, the president, vice-president or other principal officer must sign. If the taxpayer is a partnership or other unincorporated organization, a responsible and authorized member officer having

knowledge of its affairs, must sign. If the taxpayer is a trust or estate, the

fiduciary must sign. An agent of the taxpayer may sign if an acceptable

power of attorney is filed with the appropriate ATF office.

PAPERWORK REDUCTION ACT NOTICE

This request is in accordance with the Paperwork Reduction Act of 1995. The information collection is mandatory pursuant to 26 U.S.C. 6302. The

purpose of this information collection is to correctly identify the taxpayer and to correctly credit the taxpayerís liability.

The estimated average burden associated with this collection of information is 7 hours per respondent. Comments concerning the accuracy of this

burden should be directed to the Reports Management Officer, Document Services Branch, Bureau of Alcohol, Tobacco and Firearms, Washington, DC

20226.

An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid OMB

control number.

ATF F 5300.26 (3-99)
Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms •Commerce in Firearms in the United States

February 2000 B-7

OMB No. 1512-0030 (06/30/00)

DEPARTMENT OF THE TREASURY

BUREAU OF ALCOHOL, TOBACCO AND FIREARMS

ANNUAL FIREARMS MANUFACTURING AND EXPORTATION REPORT

UNDER 18 U.S.C. CHAPTER 44, FIREARMS

(See Instructions on Reverse)

1. NAME OF LICENSEE 2. TRADE NAME (If any)

3. FEDERAL FIREARMS LICENSE NUMBER 4. EMPLOYER IDENTIFICATION NUMBER (EIN)

5. ADDRESS (Number, street, city, state, ZIP Code) 6. MAIL ADDRESS (If different than item 5)

7. REPORTING PERIOD OF THIS REPORT

a. ANNUAL FOR CALENDAR YEAR ENDING DECEMBER 31, 19 ____

OR, IF BUSINESS HAS BEEN DISCONTINUED

b. FINAL REPORT FOR THE PERIOD JANUARY 1, 19 ____ THROUGH ____________________

(Date of discontinuance)

8. NUMBER OF FIREARMS PRODUCED, BY TYPES, FOR THE PERIOD COVERED BY THIS REPORT

(See instructions on reverse) (If no manufacture was accomplished, enter ì0î)

TYPE OF FIREARM

PRODUCED

NUMBER OF FIREARMS PRODUCED BY CALIBERS

(pistols and revolvers only)

TOTAL

PRODUCTION

TO .22 TO .25 TO .32 TO .380 TO 9MM

PARA. TO .50

a. PISTOL

TO .22 TO .32 TO .38

SPEC.

TO .357

MAG.

TO .44

MAG. TO .50

b. REVOLVERS

c. RIFLES

d. SHOTGUNS AND

COMBINATION GUNS

e. MACHINE GUNS

f. ANY OTHER WEAPON

(NFA)

g. MISCELLANEOUS

FIREARMS (Identify type)

9. NUMBER OF FIREARMS, BY TYPES, FOR THE PERIOD COVERED BY THIS REPORT WHICH WERE EXPORTED

(If no exportation was accomplished, enter ì0î)

TYPES OF FIREARMS EXPORTED QUANTITY TYPES OF FIREARMS EXPORTED QUANTITY

a. PISTOL

b. REVOLVERS

c. RIFLES

d. SHOTGUNS AND COMBINATION GUNS

e. MACHINE GUNS

f. ANY OTHER WEAPON (NFA)

g. MISCELLANEOUS FIREARMS

(Identify type)

h. [RESERVED]

Under penalties of perjury, I declare that I have examined this report and, to the best of my knowledge and belief, it is true, correct and complete.

10. NAME 11. TITLE

12. SIGNATURE 13. TELEPHONE NUMBER 14. DATE

ATF F 5300.11 (6-97) PREVIOUS EDITIONS ARE OBSOLETE
Commerce in Firearms in the United States •Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms

B-8 February 2000

Instructions for the Preparation of ATF F 5300.11

1. REPORTING:

(a) THOSE FEDERAL FIREARMS LICENSEES who hold either a

Type 07 (manufacture of firearms), or a Type 10 (manufacture of

destructive devices) must file in compliance with 27 CFR ß 178.126.

(b) EVEN IF THERE HAS BEEN NO PRODUCTION, A REPORT

MUST BE FILED.

(c) MANUFACTURERS HAVE UNTIL APRIL 1ST to submit an annual

report covering the preceding yearís business activity. Prepare the

report in duplicate, and retain a copy for your file.

(d) A FINAL REPORT MUST BE FILED if the manufacturing license

is discontinued during the year. Please submit a report no later

than 30 days following the end of your business activity. Include

the date in Item 7B of the form.

(e) MAIL THE ORIGINAL COPY TO

Bureau of Alcohol, Tobacco and Firearms

650 Massachusetts Ave., N.W., Room 5100

Washington, DC 20226

OR THIS REPORT MAY BE FAXED TO ATF AT:

(202) 927-8601.

2. TERMS USED IN THIS REPORT HAVE THE FOLLOWING MEANINGS:

(a) PRODUCTION - Firearms manufactured during the Calendar Year,

to include separate frames or receivers, actions or barreled actions,

disposed of in commerce. A manufacturer who uses these items,

produced by another licensed manufacturer, in the assembly and

production of complete firearms, will include the manufacture of

these firearms in this report. Separate frames or receivers, actions

or barreled actions, are to be included in this report when they are

exported or disposed of in commerce to a person other than a

licensed manufacturer. PLEASE SEE EXCEPTIONS NOTED IN

INSTRUCTION NUMBER 3.

(b) PISTOL - A firearm designed and intended to be fired by one hand,

the cartridges for which must be inserted directly into the chamber

which must be inserted directly into the chamber which is an

integral part of the barrel.

(c) REVOLVER - A firearm designed and intended to be fired by one

hand, the cartridges for which must be inserted in individual chambers successively in alignment with the barrel and firing pin.

(d) RIFLE - A firearm designed and intended to be fired from the

shoulder and using a fixed metallic cartridge to fire a single projectile through a rifled bore.

(e) SHOTGUN - A firearm designed and intended to be fired from the

shoulder and using a fixed shotgun shell to fire through a smooth

bore.

(f) COMBINATION GUN - A firearm designed and intended to be fired

from the should, having two dissimilar barrels, or more than two

barrels which are rifled, smooth bore, or a combination thereof.

(g) MACHINEGUN - Any weapon which shoots, is designed to shoot,

or can be readily restored to shoot, automatically more than one

shot without manual reloading by a single function of the trigger,

the frame or receiver of any such weapon, any combination of parts

designed and intended for use in converting a weapon into a

machinegun, and any combination of parts from which a machinegun can be assembled if such parts are in the possession or under

the control of a person.

(h) ANY OTHER WEAPON - Any weapon or device capable of being

concealed on the person from which a shot can be discharged

through the energy of an explosive, a pistol or revolver having a

barrel with a smooth bore designed or redesigned to fire a fixed

shotgun shell, weapons with combination shotgun and rifle barrels

12 inches or more, less than 18 inches in length, from which only

a single discharge can be made from either barrel without manual

reloading, and shall include any such weapon which may be readily

restored to fire. Such term shall not include a pistol or a revolver

having a rifled bore, or rifled bores, or weapons designed, made, or

intended to be fired from the shoulder and not capable of firing

fixed ammunition.

(i) MISCELLANEOUS FIREARMS - Any firearms not defined above

such as pen guns, starter guns, silencers, etc. You must identify or

briefly describe the firearm. Attach a separate sheet if necessary.

3. SHOULD ALL OF YOUR PRODUCTION FALL WITHIN THE FOLLOWING CATEGORIES, YOUR REPORT WOULD REFLECT ì0î [ZERO]:

(a) Firearms produced solely for the official use of the Armed Forces of

the United States;

(b) Firearms disposed of to another licensed firearms manufacturer for

the purposes of final finishing and assembly;

(c) Destructive devices as defined under 18 U.S.C. ß 921(a)(4) and 26

U.S.C. ß 5845(f);

(d) Antique firearms as defined under 18 U.S.C. ß 921(a)(16);

(e) Firearms incorporating frames or receivers of foreign manufacture;

or

(f) Firearms remanufactured or customized and previously in the

possession of nonlicensees.

4. EXECUTION. Every report must be executed (signed) by a person

authorized to sign and be responsible for the completeness and

accuracy of the information furnished.

PAPERWORK REDUCTION ACT NOTICE

This form is in accordance with the Paperwork Reduction Act of 1995. The

information you provide is used to compile statistics on the manufacture

and exportation of firearms. The furnishing of this information is mandatory (18 U.S.C. ß 921(g)).

The estimated average burden associated with this collection of information is 45 minutes per respondent or recordkeeper, depending on individual

circumstances. Comments concerning the accuracy of this burden

estimate and suggestions for reducing this burden should be addressed to

Reports Management Officer, Document Services Branch, Bureau of

Alcohol, Tobacco and Firearms, Washington, DC 20226.

An agency may not conduct or sponsor, and a person is not required to

respond to, a collection of information unless it displays a currently valid

OMB control number.

ATF F 5300.11 (6-97)
Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms •Commerce in Firearms in the United States

February 2000 B-9
Commerce in Firearms in the United States •Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms

B-10 February 2000
Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms •Commerce in Firearms in the United States

February 2000 B-11
Commerce in Firearms in the United States •Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms

B-12 February 2000

Brady Act States

The following states serve as a point of contact for all firearms transfers. The FFL contacts the

designated state agency, which performs the National Instant Criminal Background Check System

(NICS) check:

Arizona Florida* New Jersey Vermont

California Georgia Pennsylvania Virginia

Colorado Illinois Tennessee

Connecticut Nevada Utah

*NICS performs pre-pawn checks for all firearms.

The following states and territorities conduct checks for all firearms transactions as part of its

permit requirements:

Hawaii US Virgin I.

The following states serve as a point of contact for handgun permits, which are required for all

handgun purchases, while the dealer contacts NICS directly for a check on long gun purchasers:

Iowa Nebraska North Carolina

Michigan New York

The following states serve as a point of contact for handgun purchases. The dealer contacts the

state for a NICS check on handgun purchasers and contacts NICS directly for a check on long gun

purchasers:

Indiana New Hampshire Washington

Maryland Oregon Wisconsin

The following states and territories do not serve as a POC for any firearms transactions. The

dealer contacts the FBI NICS system directly for handgun and long gun transactions:

Alabama Kansas Montana South Dakota

Alaska Kentucky New Mexico Texas

American Samoa Louisiana North Dakota West Virginia

Arkansas Maine Ohio Wyoming

Cmmw. N. Mariana I. Massachusetts Oklahoma Washington, DC

Delaware Minnesota Puerto Rico

Guam Mississippi Rhode Island

Idaho Missouri South Carolina

According to the FBI, approximately 75% of all NICS background checks are completed instantly

(allowed within thirty seconds of the information entering the system). The law provides, however, that NICS may take up to three business days to notify the dealer whether receipt of a firearm by the prospective purchaser would be in violation of law. If the dealer does not get a “denied” response from NICS within this period, the firearm may be transferred after the end of the

three business days.
Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms •Commerce in Firearms in the United States

February 2000 B-13

BUREAU OF ALCOHOL, TOBACCO AND FIREARMS

Salaries & Expenses (S&E) Appropriation - Historical Profile

Fiscal Direct Budget Full-Time Equivalents (FTE)

Year Authority By Employee Category

(in $000) a/ Total Agent Inspectorb/ Other

1973 73,727 3,829 1,622 826 1,381

1974 79,948 3,684 1,576 732 1,376

1975 94,400 3,729 1,504 688 1,537

1976 109,697 3,872 1,513 718 1,641

1977 118,664 4,131 1,596 753 1,782

1978 128,632 4,035 1,548 724 1,763

1979 136,622 3,928 1,533 688 1,707

1980 142,892 3,809 1,502 655 1,652

1981 149,850 3,637 1,418 580 1,639

1982 142,164 2,942 1,373 650 919

1983 147,492 2,780 1,187 595 998

1984 159,553 2,929 1,224 590 1,115

1985 172,113 2,968 1,247 591 1,130

1986 166,721 2,876 1,198 631 1,047

1987 198,463 2,925 1,180 626 1,119

1988 217,531 3,287 1,418 652 1,217

1989 234,000 3,606 1,559 690 1,357

1990 257,565 3,731 1,650 731 1,350

1991 301,854 4,000 1,831 742 1,427

1992 336,040 4,111 1,876 792 1,443

1993 366,372 4,230 1,939 809 1,482

1994 366,446 4,128 1,884 800 1,444

1995 385,315 3,959 1,816 770 1,373

1996 377,971 3,784 1,664 740 1,380

1997 393,971 3,790 1,705 713 1,372

1998 478,934 3,741 1,631 702 1,408

1999 537,074 3,969 1,700 762 1,509

2000 c/ 564,773 4,032 1,817 742 1,473

a/ Spending authority initially provided via enactment of the Bureau’s annual S&E

appropriation. Excludes effect of amendments, recissions, or transfers of resources

from other federal agencies.

b/ This is a broad category defined by position series 1854 and includes both field

inspectors and a variety of specialists. Field inspectors are responsible for licensing

and compliance activities for alcohol, tobacco, firearms and explosives. There are 443

1854s currently involved in the field inspection work.

c/ FY 2000 Enacted Level.
Appendix C
Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms •Commerce in Firearms in the United States

February 2000 C-1

An Overview of Federal Firearms Legislation in the United States

Revenue Act of 1918

Section 4181 of Title 18 U.S.C. imposes a tax on

the sale of firearms and ammunition by the

manufacturer or importer of the firearm or

ammunition. The tax is 10% for handguns and

11% for all other firearms. The tax was first

imposed by the Revenue Act of 1918, and with

few modifications, has been in effect since that

time.

The National Firearms Act of 1934

The first significant Federal firearms legislation

was the National Firearms Act of 1934 (NFA).1

The NFA was enacted to combat “gangster”

violence that had increased markedly during

Prohibition. The NFA imposes an excise tax on

manufacturing and transferring a narrow class

of firearms, defined by statute, which include

machineguns, short-barreled shotguns and

rifles, silencers, and “gadget” guns such as

umbrella guns and pen guns.2

By taxing the manufacture and transfer of these

weapons, the NFA sought to reduce the easy

availability and commerce of these weapons to

the criminal element. The NFA also requires

that these weapons, and each transfer of them,

be recorded in the National Registration and

Transfer Record.

The Federal Firearms Act of 1938

The Federal Firearms Act of 19383 applied to

all firearms and prohibited anyone not licensed as a manufacturer or dealer from

transporting, shipping, or receiving any

firearm or ammunition in interstate or foreign commerce. Licensed dealers and manufacturers could ship firearms interstate only

to other licensed dealers and manufacturers,

and to those who had or were not required to

have a license under state law to purchase the

firearm. Licensed dealers and manufacturers

were required to keep records of firearms

transactions.

The law prohibited any person from shipping

or transporting in interstate or foreign commerce any firearm or ammunition to any

felon, person under felony indictment, or

fugitive from justice, and these persons could

not ship or transport any firearm or ammunition in interstate or foreign commerce. Although later repealed by the Gun Control Act

of 1968 (GCA), many of its provisions formed

the framework for the GCA.

The Gun Control Act of 19684

The GCA is the primary federal law regulating

firearms.5 It was enacted following the

assassinations of President John F. Kennedy,

Senator Robert F. Kennedy, and Dr. Martin

Luther King, Jr., as an amendment (Title I) to

the Omnibus Crime Control and Safe Streets

Act of 1968.

A key provision of the GCA creates a licensing

scheme that regulates the interstate movement

1 See 48 Stat. 1236-1240, originally codified as 26 U.S.C. § 1132, now codified, as amended, as chapter 53 of the

Internal Revenue Code of 1986, 26 U.S.C. §§ 5801-5872.

2 26 U.S.C. § 5845(a).

3 See 52 Stat. 1250, originally codified as former 15 U.S.C. § 901-910, repealed by the Gun Control Act of 1968.

4 Some of the provisions discussed in the following section were contained in the original GCA, and some have been

added over the years through amendments to the GCA. Major amendments to the GCA are discussed in depth in the

remaining sections of this legislative history.

5 The Arms Export Control Act (AECA), 22 U.S.C. § 2778(a)(1), gives the President broad authority to control the

importation of defense articles in furtherance of “world peace and the security and foreign policy of the United

States.” That authority has been delegated to the Bureau of Alcohol, Tobacco and Firearms. The term “defense

article” is defined to include, in part, firearms (other than sporting shotguns), firearms parts, and ammunition and

its components. See 27 C.F.R. §§ 47.11, 47.21, and 47.22.
Commerce in Firearms in the United States •Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms

C-2 February 2000

of firearms. Persons wishing to engage in the

business of manufacturing, importing, or

dealing in firearms are required to obtain a

license from the Secretary of the Treasury. The

license entitles the holder to ship, transport,

and receive firearms in interstate or foreign

commerce. The Federal firearms licensee

(FFL) must maintain records of all firearms

acquisitions and dispositions and comply with

applicable state and local laws in transferring

firearms.

The GCA helps individual states enforce their

own laws regulating firearms possession and

transfers by generally prohibiting the transport

and shipment of firearms across state lines.

Before the GCA, differences among state controls over firearms commerce impaired the

ability of states to enforce their own laws. The

GCA’s interstate prohibitions were intended to

minimize the impact of different state laws,

which had led to illicit commerce in guns

between states with little firearms regulation

and states with strict controls.

The GCA also makes it unlawful for certain

persons to possess firearms and makes it a

felony for anyone to transfer a firearm, knowing or having reasonable cause to believe that

the transferee is prohibited from receiving a

firearm. Since 1968, the categories of prohibited persons have been expanded to include the

following groups:

• Persons convicted of a crime punishable by

imprisonment for a term exceeding one

year;

• Fugitives from justice;

• Persons who are unlawful users of, or

addicted to, any controlled substance;

• Persons who have been adjudicated as

mental defectives or have been committed

to a mental institution;

• Illegal aliens, or aliens who were admitted

to the United States under a nonimmigrant

visa;6

• Persons dishonorably discharged from the

Armed Forces;

• Persons who have renounced their United

States citizenship;

• Persons subject to certain types of restraining orders;7 and

• Persons convicted of a misdemeanor crime

of domestic violence.8

The GCA also prohibits anyone under a felony

indictment from receiving or transporting

firearms.

The GCA makes it unlawful for an FFL to

transfer a handgun to anyone under 21 years of

age or a long gun to anyone under 18 years of

age. Under a 1994 amendment,9 the GCA

generally bans possession of handguns by any

person under age 18 and prohibits anyone from

transferring a handgun to any person under age

18. Prior to this amendment, FFLs were prohibited from transferring handguns to anyone

under age 21, but there were no Federal restrictions on the possession of handguns by juveniles or the transfer of handguns to juveniles by

nonlicensees.

The GCA generally prohibits the importation of

firearms. However, it contains an exception for

firearms which are of a type “generally recognized as particularly suitable for, or readily

adaptable to, sporting purposes”. Since 1968,

factoring criteria, which include overall length,

6 The nonimmigrant alien prohibition, 18 U.S.C. § 922(g)(5)(B), was added by Pub. L. 105-277, the Omnibus

Consolidated Emergency Supplemental Appropriations Act of 1999.

7 This provision, 18 U.S.C. § 922(g)(8), was added as part of Pub. L. 103-22, the Violent Crime Control and Law

Enforcement Act of 1994.

8 This provision, 18 U.S.C. § 922(g)(9), was added by Pub. L. 104-208, the Omnibus Consolidated Appropriations Act of 1997.

9 The amendment, called the Youth Handgun Safety Act, was part of the Violent Crime Control and Law

Enforcement Act of 1994.
Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms •Commerce in Firearms in the United States

February 2000 C-3

frame construction, weight, caliber, and safety

features, have been used to determine if handguns meet the sporting purposes test. In April

1998, the Department of the Treasury conducted a study and determined that modified

semiautomatic assault rifles that had the ability

to accept a large capacity military magazine

were not sporting under the GCA, and therefore

could not be imported into the United States.

The GCA contains penalty provisions, including

significant prison terms for persons who use or

carry a firearm during or in relation to any

Federal crime of violence or drug trafficking

crime, or who possesses a firearm in furtherance of any such crime. See 18 U.S.C. § 924(c).

The GCA also provides mandatory fifteen-year

prison terms for persons who violate § 922(g)

and have three prior convictions for violent

felonies or serious drug offenses. See 18 U.S.C.

§ 924(e).

Firearms Owners Protection Act of 1986

In 1986, Congress enacted several amendments

to the GCA as part of the Firearms Owners

Protection Act (FOPA). Congress enacted the

amendments “to reaffirm the intent of the

Congress,” expressed in the GCA, that its purpose was not to “place any undue or unnecessary Federal restrictions or burdens on law

abiding citizens.”10 Under the original GCA,

only individuals “engaged in the business” of

importing, manufacturing, or dealing in firearms must be licensed and regulated as FFLs.

However, the original GCA did not define the

term “engaged in the business.” FOPA

amended the law to define engaged in the

business,11 as well as the term, “with the principal objective of livelihood and profit,” used in

the definition of engaged in the business.12 The

new definitions give certain people a basis to

contend that their firearm activities do not rise

to a level that requires them to obtain a license

and be regulated by the Federal government.

FOPA also amended the GCA in the following

ways:

• Gun Shows FOPA amended the GCA

specifically to allow FFLs to conduct

business temporarily at gun shows, provided the gun show was located within the

same state as the FFL’s licensed premises.

• Definition of “conviction” The original

GCA made it unlawful for persons convicted of a crime punishable by a prison

term exceeding one year to possess a

firearm. FOPA amended the GCA to provide that what constitutes such a conviction would be determined by the law of the

jurisdiction where the conviction occurs.

Furthermore, FOPA provided that an

expungement, pardon, set aside, or restoration of civil rights removes the “conviction”

for purposes of the GCA, unless the

individual’s firearms rights are expressly

restricted by the pardon, expungement, or

restoration.

• FFL Recordkeeping Offenses FOPA reduced most recordkeeping offenses committed by FFLs from felonies to misdemeanors.

• Limits on Inspection Authority Prior to

1986, ATF was authorized to conduct

warrantless inspections of FFLs’ records

and inventory. FOPA amended the GCA to

provide that ATF could conduct only one

10 See Pub. L. 99-308.

11 The term “engaged in the business” means “as applied to a dealer in firearms, . . . a person who devotes time,

attention, and labor to dealing in firearms as a regular course of trade or business with the principal objective of

livelihood and profit through the repetitive purchase and resale of firearms, but such term shall not include a person

who makes occasional sales, exchanges, or purchases of firearms for the enhancement of a personal collection or for

a hobby, or who sells all or part of his personal collection of firearms.” 18 U.S.C. § 921(a)(21)(C).

12 The term “with the principal objective of livelihood and profit” means that the “intent underlying the sale or disposition of firearms is predominantly one of obtaining livelihood and pecuniary gain, as opposed to other intents, such

as improving or liquidating a personal firearms collection; Provided, That proof of profit shall not be required as to

a person who engages in the regular and repetitive purchase and disposition of firearms for criminal purposes or

terrorism.” 18 U.S.C. § 921(a)(22).
Commerce in Firearms in the United States •Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms

C-4 February 2000

warrantless inspection of a licensee for

compliance purposes in any 12-month

period. ATF retained warrantless inspection authority to investigate criminal

violations of persons other than the licensee, or to trace firearms involved in

criminal activity.

• Knowing or willful violations Prior to

1986, the GCA did not include any specific

mens rea requirements. FOPA amended

the GCA to require proof of either a “knowing” or a “willful” state of mind for all GCA

violations.

• System of registration FOPA prohibits ATF

from establishing any national system of

gun registration.

• Forfeiture of Firearms Before 1986, the

GCA provided for the seizure and forfeiture

of any firearm or ammunition involved in,

or used or intended to be used in, any

violation of the GCA. FOPA amended the

GCA to require “clear and convincing

evidence” of intent to violate the law before

the government could seize and forfeit

firearms used in GCA violations. In addition, the Government must begin forfeiture

proceedings within 120 days of seizure.

• Machineguns FOPA banned the manufacture of machineguns for civilian use.

Gun Free School Zones Act

In response to several multiple school

shootings, Congress enacted the Gun Free

School Zones Act in 1990, which made it unlawful for anyone to possess a firearm within

1000 feet of a school. The Gun Free School

Zones Act was held unconstitutional by the

Supreme Court in Lopez v. United States, 514

U.S. 549 (1995), because the Act lacked a

sufficient connection to interstate commerce.

Congress amended the Act in 1996 to remedy

this flaw by requiring that the firearm move in,

or otherwise affect, interstate commerce.

The Brady Handgun Violence Prevention Act of

1993

Before purchasing a firearm from an FFL, an

unlicensed gun buyer is required to complete

ATF Form 4473, the “Firearm Transaction

Record.” Form 4473 requires gun purchasers to

provide their name, address, and date of birth,

and answer a series of questions designed to

ensure that they are not prohibited from receiving a firearm under Federal law. Gun purchasers are required to certify, under penalty of

perjury, that the answers to these questions are

correct. Prior to the enactment of the Brady Act

on November 30, 1993, no system under Federal

law existed for confirming the truthfulness of

information on Form 4473. Consequently, a

convicted felon could purchase a firearm from

an FFL simply by lying on Form 4473 about

prior felony convictions. The Brady Act was

enacted in part to allow FFLs to verify the

statements provided by a prospective purchaser

of a firearm.

The Brady Act was implemented in two stages:

an interim stage and a permanent stage. The

interim provisions of the Brady Act went into

effect on February 28, 1994. Under interim

Brady, FFLs were generally required to submit a

“Brady form” to a chief law enforcement officer

(CLEO), who would conduct a background

check on every prospective purchaser of a

handgun. The FFL could proceed with the

transfer if the CLEO informed the FFL that he

or she had no information indicating that the

purchaser’s possession of the handgun would

violate Federal, State, or local law, or if the

CLEO provided no response within five business days of receiving the Brady form.13

The permanent provisions of the Brady Act

went into effect on November 30, 1998. As part

of permanent Brady, the Attorney General was

charged with establishing a National Instant

Criminal Background Check System (NICS).

This system is run by the Federal Bureau of

Investigation and is used to conduct background checks on firearm purchasers.

13 Although the Supreme Court struck down part of interim Brady in Printz v. United States, 521 U.S. 898 (1997),

finding the background check requirement imposed on CLEOs unconstitutionally compelled state officers to execute

Federal laws, most CLEOs continued to voluntarily do background checks.
Department of the Treasury, Bureau of Alcohol, Tobacco & Firearms •Commerce in Firearms in the United States

February 2000 C-5

Unlike interim Brady, permanent Brady applies

to all firearms, not simply handguns. In general, FFLs are required to contact NICS before

transferring any firearm to an unlicensed

individual. If NICS provides an “approved”

response, the FFL may transfer the firearm. If

the FFL does not get a “denied” response from

NICS within three business days, indicating

receipt of the firearm by the prospective purchaser would be in violation of law, the firearm

may be transferred to the purchaser.

The Brady Act also increased the FFL’s licensing fee from $10 per year to $200 for the first

three years, and $90 for each three-year renewal.

Violent Crime Control and Law Enforcement

Act of 1994

On September 13, 1994, Congress passed the

Violent Crime Control and Law Enforcement

Act of 1994,1 4 which made it unlawful, with

certain exceptions, to manufacture, transfer, or

possess semiautomatic assault weapons not

lawfully possessed on the date of enactment.15

The statute defined semiautomatic assault

weapons to include 19 named models of firearms (or copies or duplicates of the firearms in

any caliber); semiautomatic rifles that have the

ability to accept detachable magazines and

have at least two of five features specified in the

law; semiautomatic pistols that have the ability

to accept detachable magazines and have at

least two of five features specified in the law;

and semiautomatic shotguns that have at least

two of four features specified in the law.16

The 1994 law also made it generally unlawful to

possess and transfer large capacity ammunition

feeding devices manufactured after September

13, 1994.17 A large capacity ammunition feeding device was generally defined as a magazine,

belt, drum, feed strip, or similar device that has

the capacity of, or that can be readily restored

or converted to accept, more than 10 rounds of

ammunition.18

Congress passed these provisions of the 1994

law in response to the use of semiautomatic

assault weapons and large capacity ammunition feeding devices in crime. Congress had

been presented with much evidence demonstrating that these weapons were “the weapons

of choice among drug dealers, criminal gangs,

hate groups, and mentally deranged persons

bent on mass murder.”19

The 1994 Act also required people applying for

Federal firearm licensees to submit photographs and fingerprints as part of their application, and to certify that their firearms business

complied with all state and local laws, including zoning regulations.

14 Pub. L. No. 103-22. Title XI, Subtitle A of this Act may be cited as the “Public Safety and Recreational Firearms Use

Protection Act.”

15 18 U.S.C. § 922(v).

16 18 U.S.C. § 921(a)(30).

17 18 U.S.C. § 922(w).

18 18 U.S.C. § 921(a)(31).

19 H. Rep. No. 103-489, at 13.
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