A FFL should note a disposition in the A&D record only when the firearm is transferred out of his/her inventory. Title 27 Code of Federal Regulations, part 478.125 does not require an annotation declaring that a firearm is a GCA or NFA firearm. Any such notation would be at the FFL’s discretion. If the firearm is subject to the NFA at the time of transfer, the licensee is required to comply with the applicable transfer and possession regulations. Any inventory report should reflect the firearms currently registered to the FFL under the NFA. Therefore, ATF recommends written notification to the NFA Branch when a firearm is removed from the purview of the NFA.