Month: August 2011

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Report From This Week’s Firearms Industry Conference

August 3, 2011 by

The 2011 Firearms Industry Importer, Exporter and Manufacturer Conference is currently being held in Reston, VA. The conference started yesterday and ends today. It is sponsored by the NSSF, the FAIR Trade Group (firearms importers), and the National Firearms Act Trade and Collectors Association. This conference brings together experts from ATF with those in the firearms industry. The topics are heavy on compliance rulings, tax issues, and regulations.

I received an email yesterday with an update on what was discussed with emphasis on how it will impact you and me.

First, ATF made a public announcement of Ruling 2011-4. This ruling says that you can turn a pistol into a rifle and then back again into a pistol without violating the National Firearms Act. However, you still cannot turn a rifle into a pistol without ATF’s permission or it will be considered a NFA item. This ruling is not yet up on the ATF website.

Another issue discussed was armor piercing ammunition. Most of the discussion centered on bronze/brass bullets such as those made by Elite Ammunition. The ATF is taking the position that these are armor piercing. However, the NSSF aggressively questioned this stance and ATF concedes that they may need to look at the policy, develop variance policies, and draw up a FAQ on it.

David Codrea, the National Gun Rights Examiner, has run a series of columns this week pushing the ATF Firearms Technology Branch on the potential redefinition of .50 BMG AR uppers as firearms. From my correspondent:

FTB stated that no reclassification has been made and no .50 uppers have been classified at all. Rather, one manufacturer has been requested to submit one of their uppers for evaluation. The reason given was “police concern”, specifically foreign police agencies (or agency).

On a more technical issue related to the industry, brokers who never physically handle a firearm will, nonetheless, be required to have a FFL. This involves brokers who pay one party for a firearm, sell it to another, and never takes possession of it. This would also apply to firearms that never enter the United States if the broker was located in the U.S.

The ATF reiterated their position that all loaded large bore ammo (above .50 caliber unless exempted) is considered explosive for destructive devices. This means that if you have a .577 Nitro Express you are OK because it is considered a non-NFA Curio and Relic. However, if you have a Swiss Solothurn 20mm (see John Ross’ Unintended Consequences), ammo for it is considered explosive.

Regarding the multiple sales of certain semiautomatic rifles in the Southwest border states, ATF is taking the position that rifles equipped with a “bullet button” will not be exempted from the demand letters. The announced requirement applies to semiautomatic rifles in a caliber greater than .22 that have detachable magazines. While California law holds that rifles equipped with a bullet button are not considered to have detachable magazines, ATF is choosing to ignore that.

Finally, it was reported that there was no real movement on a few other issues: the shotgun importability study, a Firearm Technology Branch procedures manual, and the elimination of the requirement for a Chief Law Enforcement Officer signoff on NFA items.

My thanks to Andy from CVAA for the report on the conference.

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NSSF Files Suit To Stop Multi-Rifle Reporting Requirement

August 3, 2011 by 1 Comment

The National Shooting Sports Foundation has filed suit in U.S. District Court for the District of Columbia asking for preliminary and permanent injunctions against the ATF’s move to require the reporting of multiple sales of certain semi-automatic rifles in the Southwest border states. They are also asking for a writ of mandamus to compel the ATF to adhere to the operative language of the Firearm Owners Protection Act of 1986. This is the first time I’ve seen a writ of mandamus requested in any of the gun rights suits filed since Heller. A writ of mandamus is an order from a court to an agency, in this case, ordering them to perform their duties correctly.

Their release is below. I have a copy of the suit and will be posting on it later today if time permits.

NEWTOWN, Conn. — The National Shooting Sports Foundation (NSSF), the trade association for America’s firearms industry, today filed a lawsuit challenging the legal authority of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) under the Gun Control Act to compel 8,500 federally licensed firearms retailers in Arizona, California, New Mexico and Texas to report the sale of two or more rifles.

Specifically, the regulation calls for reporting multiple sales of any semi-automatic rifle larger than .22 caliber and capable of accepting a detachable magazine that are purchased following an FBI background check by the same individual within five consecutive business days.

NSSF’s lawsuit, filed in the U.S. District Court for the District of Columbia, seeks an injunction to block ATF from implementing the reporting requirement. ATF has sent “demand letters” to firearms retailers in the four states to inform retailers they must begin reporting such sales by August 14.

NSSF Senior Vice President and General Counsel Lawrence G. Keane pointed out that if ATF can require this record-keeping and reporting requirement of law-abiding retailers in these four states simply by sending a letter demanding the information, then there is no record or report ATF cannot require of any licensee, anywhere in the country, for as long as ATF wants. “This is the proverbial ‘slippery slope,’ and our industry is extremely concerned about it,” said Keane.

Keane added, “At the time Congress authorized the reporting of multiple sales of handguns, it could have required it for the sale of long guns, but it did not. Acting ATF Director Ken Melson himself has questioned ATF’s legal authority to impose this new requirement.”

Despite its lawsuit, NSSF is encouraging all retailers, not just those along the Southwest border, to continue to cooperate with law enforcement and report any suspicious activity to the ATF. “The firearms industry and NSSF take pride in having a longstanding cooperative relationship with ATF,” said NSSF President and CEO Steve Sanetti. “Retailers have long been considered a vital source of information for law enforcement in combating illegal firearm trafficking.”

Even if ATF had the legal authority to require multiple sales reporting for long guns, NSSF believes the policy would still be unwise to implement. “We believe the policy will make it more difficult for retailers to assist law enforcement,” said Keane. Illegal firearms traffickers will simply alter their schemes to avoid and evade the reporting requirement, making it more difficult for retailers to identify and report suspicious activity. For example, traffickers could simply recruit more “straw purchasers” and have them illegally purchase firearms from multiple licensees, or simply move their illegal trafficking activities to other states where the reporting requirement does not exist.

Sanetti pointed out that for more than a decade, the firearms industry has done its part to help prevent illegal straw purchases through the Don’t Lie for the Other Guy program. The program, a cooperative effort between NSSF and ATF, educates retailers on how to spot potential illegal purchasers and warns the public that it’s a serious crime to attempt such a purchase. The program is active in firearms retailer shops across the country. Over the last several years, the firearms industry has solely funded the rollout of Don’t Lie for the Other Guy in border-state areas to deter individuals with intent to illegally purchase firearms. See www.dontlie.org.

Also today lawyers representing the National Rifle Association filed a separate lawsuit in the U.S. District Court for the District of Columbia challenging ATF’s requirement for reporting multiple sales of rifles.

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Are These The Only Guns That DIDN’T Walk To Mexico?

August 3, 2011 by 1 Comment

Late last week, ATF issued a press release in conjunction with the U.S. Attorney for the Southern District of Texas. It concerned eight men who were sentenced for their participation in straw purchases of firearms that were to be smuggled across the Texas border into Mexico.

To somewhat paraphrase Sean Sorrentino, are these the only guns that didn’t walk to Mexico?

Members of Ring Convicted of Lying to Buy Firearms Bound for Mexico Sentenced

McALLEN, Texas — Eight members of ring convicted of lying to buy firearms bound for Mexico have been sentenced to prison terms, United States Attorney José Angel Moreno announced today.

United States District Judge Randy Crane sentenced Juan Manuel Barrientos–Lopez, 29, an undocumented alien from Mexico; Andres Alvarez, 24, of Alamo, Texas; Armando Bravo II, aka Peanut, 22, Romulo Longoria, 21, Greg Palacios, 19, Ruben Ramirez III, 20, all of San Juan, Texas; as well as Alan Ramirez, 20, and Michael Anthony Salazar, 20, both of McAllen, to varying prison terms for their roles in a straw purchasing scheme to acquire firearms bound for Mexico. All eight men pleaded guilty on various dates in March and April 2011 to lying on the ATF Form 4473 when they falsely represented themselves to be the “actual owner” of varying types of automatic weapons they were buying for another earlier this year.

The charges and subsequent convictions are the result of an investigation initiated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) after Alvarez purchased multiple AR–15 type rifles in June 2010. Through their investigation, agents learned that Alvarez had been recruited to make the firearm purchases by Bravo because, as convicted felon, Bravo is prohibited by federal law from possessing much less purchasing a firearm. It was later discovered that Alan Ramirez, when he realized that Bravo could not purchase firearms, allegedly recruited Bravo to recruit other straw purchases. Alan Ramirez also recruited Salazar. In addition to his role of a recruiter, Alan Ramirez personally straw purchased 19 firearms for Barrientos–Lopez. Barrientos–Lopez, who was found to be the head of the straw purchasing ring, was present in the United States illegally could not possess let alone purchase firearms. In an attempt to satisfy the orders for firearms placed by Barrientos–Lopez, Bravo then recruited Ruben Ramirez, Palacios and Longoria. Bravo obtained cash for each of these “recruits” to purchase the firearms then paid each of them approximately $200 for each firearm they purchased.

Barrientos–Lopez, originally charged by criminal complaint in October 2010, was taken into custody following a high speed chase after straw purchased firearms had been delivered to him. The other seven defendants were named and charged in various counts of a 14–count superseding indictment returned by a grand jury in January 2011. All eight defendants pleaded guilty to lying to buy a variety of semi–automatic firearms at federally licensed firearms dealers in McAllen, Mission and/or Pharr, Texas, between May and October 2010.

At today’s hearing, Judge Crane held Barrientos–Lopez, as the organization’s head, responsible for the purchase of a total of 38 AK–47 and AR–15 type rifles purchased by the ring and sentenced him to 60 months, the maximum sentence allowed by law, in federal prison. Alvarez was sentenced to 48 months imprisonment, while Bravo received 60 months. Longoria, Palacios, Alan Ramirez and Salazar were each sentenced to 30 months while Ruben Ramirez was sentenced to 33 months. With the exception of Alan Ramirez, who has been permitted to remain on bond until the issuance of an order to surrender to the U.S. Marshals Service on September 6, 2011, all other defendants have been in custody since either arrest or conviction.

All have been further sentenced to serve a 3–year–term of supervised release upon completion of their prison terms. Barrientos–Lopez is subject to deportation upon release from prison due to his illegal status in the United States.

This case was prosecuted by Assistant U.S. Attorney Steven Schammel.

 As a postscript, I have received my Gunwalker T-shirt from Sean and I can highly recommend it. The shirt is substantial and the printing job is first-rate.

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NSSF To “Repurpose” The SHOT Show (Updated)

August 2, 2011 by 4 Comments

In a post today to the SHOT Show blog, Chris Donack of the National Shooting Sports Foundation says they will be “repurposing” the SHOT Show effective with the 2013 show. They will be limiting participation to those companies in the outdoor, hunting, shooting, and tactical industries. With a 300 company waiting list for participation, NSSF wants to make sure the smaller and newer companies have an opportunity to participate.

Many of the most iconic brands in our industry started out small and likely would have occupied a 10×10 booth at the SHOT Show were they starting out today. Companies like Browning, Colt, Glock, Hornady, Remington, Ruger and Smith & Wesson started out as small one- or two-person operations. Who knows which of these 300 companies will become the next industry leader given the time and opportunity to grow their business.

To that end, we will begin the process of repurposing he SHOT Show beginning with the 2013 edition. That means that we will focus our exhibit floor on those companies that are involved in our core business — shooting, hunting, outdoor and tactical. Those exhibitors that do not represent core shooting, hunting, outdoor and tactical product segments will be informed that they will not be invited to exhibit in 2013. Letters will be going out to those companies affected beginning in September 2011, and should those companies choose not to exhibit in 2012 as a result, we will offer them a full refund, which is contrary to the terms of their 2012 contract, but only fair under the circumstances.

Recognizing that growth in their core businesses is critical for the growth of the shooting sports, the move to give the smaller and newer companies a chance to exhibit is a smart move by the SHOT Show. They should be congratulated on this change.

UPDATE: Chris Dolnack got back to me on what does not represent core business. His examples are:

Swords, orthopedic inserts, furniture, toys, radio controlled cars, copters, et al; outfitters, chotchke (coffee mugs, pins, decals, brick a brack) etc. Anything that a firearms retailer would not have in their store.

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Lawsuit Filed Challenging Multi-Rifle Reporting Requirement

August 2, 2011 by 1 Comment

J&G Sales of Prescott, AZ has joined the NRA in filing suit against the illegal requirement that FFL’s in the Southwest border states must report multiple sales of certain semi-automatic rifles to the ATF. J&G is also one of the gun dealers that was told during Operation Fast and Furious to allow sales to go through to obvious straw purchasers.

Here is their statement on the lawsuit.

BATFE lawsuit info – Monday August 01, 2011
As many of you may have heard, the BATFE has sent a demand letter to all the licensed firearms dealers in the four border states of Arizona, New Mexico, California, and Texas. This letter requires these dealers to report to the BATFE the names and addresses and serial numbers of all purchases of more than one semi-automatic rifle, with a detachable magazine, over 22 caliber, within a 5 business day period.

The BATF and Department of Justice has made this demand with no Congressional authorization and therefore, J and G Sales has filed suit in the Washington DC federal court challenging the legitimacy of this new regulation. We are being assisted in this law suit by the NRA as well. We hope the outcome of our challenge will be a reversal of this unconstitutional regulation for all border state FFL dealers. We appreciate our customers and your support of the 2nd amendment and will keep you all updated as this case progresses.

This new regulation goes into effect for all purchases that occur on or after August 14th, 2011. The BATFE has issued a new form 3310.12 that FFL dealers have to fill out and return to the BATFE starting on this date and going forward until this is hopefully reversed.

I’ll update this as soon as I get and read a copy of the suit.