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Bureau of Alcohol, Tobacco, Firearms and Explosives

 

 




QUARTERLY BULLETIN

Bureau of Alcohol,

Tobacco and

Firearms

Department of the Treasury

CONTAINS:

Treasury Decisions, Rulings,
and


Procedural and Administrative

Matters Concerning Alcohol,


Tobacco, Firearms,

and Explosives


NOTE



Comments concerning the contents of this issue may be
directed to Bureau of Alcohol, Tobacco and Firearms,
Office of Compliance Operations, Washington, DC 20226.

The contents of this publication are not copyrighted
and may be reprinted freely. A citation of the Alcohol,
Tobacco and Firearms Quarterly Bulletin as the source
would be appropriate.

For
sale by the Superintendent of Documents, U.S. Government Printing Office,
Washington, DC 20402

TABLE OF CONTENTS

Preface

Definitions

I - TREASURY DECISIONS

FIREARMS

Firearms and Ammunition Excise Taxes, Parts and Accessories

(T.D. 404)

Implementation of Public Law 103-15, Relating to the
Permanent
Provisions of the Brady Handgun Violence Prevention
Act
(T.D. 415)

II - ANNOUNCEMENTS

Major Disaster Declarations

Offers in Compromise/Revocations

Unified Agenda of Federal Regulations


Preface

The Alcohol, Tobacco
and Firearms Quarterly Bulletin is the authoritative
instrument of the Bureau for announcing official rulings
and procedures, and for publishing Treasury decisions,
legislation, administrative matters, and other items
of general interest. It incorporates, into one publication,
matters of the Bureau, which are of public record.

The Bureau publishes rulings and procedures to promote
uniform application of the laws and regulations it
administers. Rulings interpret the requirements of
laws and regulations and apply retroactively unless
otherwise indicated; whereas, procedures establish
methods for performing operations to comply with such
law and regulations.

Rulings and procedures reported in the Bulletin do not
have the force and effect of Treasury department regulations
but they may be used as precedents. In applying published
rulings and procedures, the effect of subsequent legislation,
regulations, court decisions, rulings, and procedures
must be considered. Concerned parties are cautioned
against reaching the same conclusions in other cases
unless the facts and circumstances are substantially
the same.




Definitions

Rulings and procedures
that have an effect on previous rulings or procedures
use the following defined terms to describe the effect:

AMPLIFIED is used
in a situation where no change is being made in a prior
published position, but the prior position is being
extended to apply to a variation of the fact situation
set forth in the new ruling. Thus, if an earlier ruling
held that a principle applied to A, and the new ruling
holds that the same principle also applies to B, the
earlier ruling is amplified.

CLARIFIED is used
in a situation where the language in a prior ruling
is being made clear because the language has caused,
or may cause, some confusion. It is not used where
a position in a prior ruling is being changed.

DECLARED OBSOLETE
is used in a situation where a previously published
ruling is not considered determinative with respect
to future transactions. This term is most commonly
used in a ruling that lists previously published rulings
that are declared obsolete because of changes in law
or regulations. A ruling may also be declared obsolete
because its substance has been included in regulations
subsequently adopted.

MODIFIED is used in
a situation where the substance of a previously published
position is being changed. Thus, if a prior ruling
held that a principle applied to A but not to B, but
the new ruling holds that it applies to both A and
B, the prior ruling is modified.

REVOKED is used in
a situation where the position in the previously published
ruling is not correct and the correct position is being
stated in the new ruling. Rulings which have been revoked
have no further effect.

SUPERSEDED is used
in a variety of situations. The term may be used where
the new ruling amplifies a prior ruling if both
the position taken in the prior ruling and the position
as amplified are contained in the text of the new ruling.
The term may be similarly used where the new ruling
clarifies or modifies a prior ruling. The term may
also be used where, for the purpose of updating references,
the new ruling does nothing more than restate the substance
and situation of a prior ruling. For example, a ruling
issued under former statues and regulations (e.g. the
1939 Code-26 CFR Part 225) may be reissued under the
current statues and regulations (e.g. the 1954 Code—27
CFR Part 201). Lastly, the term may be used when it
is desired to republish in a single ruling a series
of situations, names, etc., that were previously published
over a period of time in separate rulings.

SUPPLEMENTED is used
in situations in which a list, such as a list of curios
and relics, is published in a ruling and that list
is expanded by adding further items in subsequent rulings.
After the original ruling has been supplemented several
times, a new ruling may be published that includes
the list in the original ruling and the additions,
and supersedes all prior rulings in the series.


ABBREVIATIONS:

The following abbreviations appear in material published
in the Bulletin
:

A, B, C, etc. – The name of individuals


ATF – Bureau of Alcohol, Tobacco and Firearms


ATFQB – Alcohol, Tobacco and Firearms Quarterly Bulletin


ATF Proc. – ATF Procedure


ATF Rul. – ATF Ruling


C.B. – Cumulative Bulletin


Ct.D. – Court Decision


CFR – Code of Federal Regulations


D.O. – Delegation Order


E.O. – Executive Order


FAA Act – Federal Alcohol Administration Act


F.R. – Federal Register
M, N, X, Y, Z,
etc, – The names of corporations, places and businesses, according to
context

Pub. L. – Public Law


Rev. Proc. – Revenue Procedure


Rev. Rul. – Revenue Ruling


Stat. – Statues at Large


T.D. – Treasury Decision


T.D.O. – Treasury Department Order


U.S.C. – United
States Code
X and Y
– used to represent certain number and when
used with the word "dollars" represent sums of money


Treasury
Decisions - I
Subpart A
- ALCOHOL

TITLE 27 -ALCOHOL, TOBACCO
PRODUCTS AND FIREARMS-CHAPTER-I-


BUREAU OF ALCOHOL, TOBACCO AND FIREARMS, DEPARTMENT
OF THE TREASURY


Firearms and Ammunition Excise
Taxes, Parts and Accessories

T.D. ATF - 404

27 CFR Part 53

ACTION: Final Rule,
(Treasury Decision).

SUMMARY: This final rule amends regulations
in 27 CFR Part 53, relating to the manufacturers excise
tax on firearms and ammunition. Under to 26 U.S.C.
4181, a tax is imposed on the sale by the manufacturer,
importer or producer of firearms, shells, and cartridges.

The tax is 10 percent of the sale price for pistols
and revolvers, 11 percent for firearms (other than
pistols and revolvers), and 11 percent for shells and
cartridges. Current regulations provide that no tax
is imposed by section 4181 on the sale of parts or
accessories of firearms, pistols, revolvers, shells,
and cartridges when sold separately or when sold with
a complete firearm. This final rule amends the regulations
to clarify which parts and accessories must be included
in the sale price when calculating the tax on firearms.

DATES: Effective November 30, 1998.

FOR FURTHER INFORMATION CONTACT: Marsha D. Baker,
Regulations Division, Bureau of Alcohol, Tobacco and
Firearms, 650 Massachusetts Avenue, N.W., Washington,
D.C. 20226 (202-927-8476).

SUPPLEMENTARY INFORMATION:

Background

The Bureau of Alcohol, Tobacco and Firearms (ATF) is
responsible for collecting the firearms and ammunition excise tax imposed by
section 4181. The Pittman-Robertson Wildlife Restoration Act, 16 U.S.C. 669 et
seq., requires that an amount equal to all of the revenue collected under
section 4181 be deposited into the Federal Aid to Wildlife Restoration Fund.
This Fund is apportioned to the States for hunter safety programs, maintenance
of public target ranges, and wildlife and wetlands conservation.

The current regulation provides that no tax is imposed by section on the sale of parts or accessories of firearms, pistols, revolvers, shells, and cartridges when sold separately or when sold with a complete firearm. This regulation was at issue in Auto-Ordnance Corp. v. United States, 822 F.2d 1566 (Fed. Cir. 1987). In this case a manufacturer of firearms sued to recover excise taxes paid on sights and compensator units sold with rifles it manufactured. The manufacturer claimed that these parts were nontaxable accessories that should not be included in the taxable sale price of the rifles. The Internal Revenue Service (IRS), the agency responsible for administering the tax on firearms at that time, contended that the sights and compensator units were component parts of the rifles that must be included in the taxable sale price.

The court noted that the position of the IRS that all
component parts of a "commercially complete" firearm must be included in the sale price was a concept that was not found in the regulations. Since the regulations did not specify which parts are component parts of a firearm
nor define the term "accessories," the court found that it was appropriate to look beyond the language of the regulation. The court discussed several dictionary definitions of the term "accessories" as well as tariff and customs classification cases.

The court held that the sights and compensator units were nontaxable accessories
since they were readily removable and of secondary or subordinate importance to
the function of the firearm.

Since taking over the administration of the firearms
and ammunition excise tax from the IRS in 1991, ATF
has issued numerous rulings on parts and accessories.
ATF has found it increasingly difficult to apply the
regulation on parts and accessories as interpreted
by the court in Auto-Ordnance. For example,
the "secondary or subordinate importance" test is difficult
to apply to parts that are essential for the safe operation
of the firearm. Arguably, such parts are essential
to the function of the firearm and should be included
in the taxable sale price. However, if such parts
are not needed to fire the firearm, it is possible
that a Federal court, applying the rationale of Auto-Ordnance, would hold that such parts are nontaxable accessories.

Notice of Proposed Rulemaking

On August 29, 1996, ATF published in the Federal
Register
a notice of proposed rulemaking (Notice No. 836, 61
FR 45377) proposing to provide definitions for "component parts"
that must be included in the taxable sale price and "nontaxable
parts" and "nontaxable accessories" that are excluded from the
taxable sale price. The notice stated that the purpose of the proposed
definitions is to reinstate the long-standing "commercial
completeness" test of the IRS in a manner that will withstand judicial
scrutiny. The notice stated that the effect of the definitions would be to
replace the readily removable/essential to the function test of the
Auto-Ordnance case with a more objective, predictable
standard to use in determining whether items sold with
a firearm are includible in the tax basis.

Analysis of Comments

ATF received nine (9) written comments during the comment
period in response to Notice No. 836. These comments were submitted by three (3)
members of the public, four (4) Federal firearm licensees, and two (2) firearms
industry organizations. All nine respondents opposed the proposed regulations.

One commenter felt that ATF lacks the authority to impose
a tax and should restrict itself to enforcement matters. The authority to
administer the excise tax provisions of 26 U.S.C. 4181 was transferred from the
IRS to ATF on January 1, 1991, by Treasury Order No. 120-03 (55 FR 47422,
November 13, 1990). The order gave ATF the authority to issue regulations with
respect to the administration, collection and enforcement of firearms and
ammunition excise taxes.

One commenter requested that ATF modify the payment
schedule for excise taxpayers to a quarterly basis. Current regulations require
bimonthly deposits for most taxpayers. The commenter stated that some
manufacturers provide economic incentives to dealers by providing an extended
payment schedule of three, six, or nine months for those accepting products
early in the year. This process may cause some manufacturers to borrow money
with which to pay excise tax. The commenter suggested that quarterly payments
reflecting seasonal fluctuations in consumer demands would assist in alleviating
this problem.

The deposit system for payment of the taxes imposed by
section 4181 was not one of the issues raised for public comment by Notice No.
836. Moreover, a change in the current system would require a statutory
amendment. Accordingly, ATF is not adopting this comment.

Five (5) commenters opposed the proposed regulations
on the basis that they would overturn the Auto-Ordnance
decision and result in more tax being paid by taxpayers and
consumers. The commenters believe that by reinstating
the commercial completeness test of the IRS, ATF is
trying to circumvent the court's finding in Auto-Ordnance

. The commenters are opposed to replacing the readily removable/essential
to the function test with the commercial completeness test,
because they consider the court to have already repudiated
the application of a commercial completeness test.

The Auto-Ordnance case makes it clear that
the Federal Circuit rejected the IRS "commercial completeness"
test only because that test was not clear in the regulations.
The court did not hold that the IRS position was an
impermissible interpretation of the statute. Accordingly,
ATF does not believe the Auto-Ordnance case precludes ATF from establishing a for
parts and accessories different from that used by the court.

Four (4) commenters expressed opposition to proposed
section 53.61(b)(5), which provides that when taxable
firearms are sold by a manufacturer or importer without
component parts, the separate sale of the component
parts to the same vendee will be considered, in the
absence of evidence to the contrary, to have been made
in connection with the sale of the basic
article even though the component parts are
shipped separately.

These four respondents stated that the implementation of
this provision will result in confusing and complex recordkeeping requirements.
They stated that recordkeeping requirements would become more difficult and
complex for the manufacturers since customer requests for mounts and other
accessories on a separate invoice to the dealer would become taxable. The
commenters noted that a manufacturer who ships a firearm without sights but
provides the retailer with the opportunity to add them at a later date does so
for market-driven reasons rather than for evading the small amount of tax on the
sights.

ATF's intent in proposing the separate sales provision
of §53.61(b)(5) was to include in the regulations the
longstanding position that tax cannot be evaded through
separate shipment and sale of component parts. However,
ATF did not intend to impose a continuing obligation
on firearms importers and manufacturers to keep records
of their sales of parts to vendors and attempt to match
them up with previous sales of firearms. Accordingly,
ATF is adopting this comment and
deleting proposed §53.61(b)(5) from the final regulations.

In addition, ATF is amending wording in proposed
§53.61(b)(6)(ii) to remove the term "parts in a partially
completed state." ATF believes this language is unnecessary.

Eight (8) commenters expressed opposition to the
proposed regulation because they believed it may be
more costly for the manufacturers by increasing their
taxes and driving up retail prices. There was also
concern that this would force taxpayers to borrow money
to meet tax payments in advance of receipt of trade
receivables. The commenters stated that this would
lead to a negative impact on sales, reduction of the
market, and reduction of revenues. They stated that
such a change in the regulations would increase costs
incurred by the regulated industry.


ATF does not believe that the
implementation of this regulation will place an undue financial burden on excise
taxpayers or have a significant impact on sales, the market, or revenues. This
regulation will, however, make it easier for the taxpayer to understand the
excise taxes for parts and accessories. A better understanding of the
distinction between taxable and nontaxable items will lead to fewer mistakes in
computing tax. In addition, the clarified definitions of parts and accessories
will make it easier for the government to administer the regulation.

Two (2) commenters stated that the burden of supporting
the Aid to Wildlife Restoration Fund should be placed upon those who benefit
from the Fund, such as hunters, campers, and hikers as well as businesses whose
activities (i.e., pollution, timber cutting, etc.) are detrimental to wildlife.
Since the taxes paid into the Fund are imposed by statute on manufacturers and
importers of firearms and ammunition, legislation would be necessary to require
contribution to the Fund by other persons. This final rule also adds a
definition of the term "knockdown condition" to the regulations in
§ 53.11. Since the new definition of "parts and accessories"
uses this term, the definition of "knockdown condition" is added for
clarity.

Regulatory Flexibility Act

It is hereby certified under the provisions of
the Regulatory Flexibility Act, 5 U.S.C. 605(b),
that this final rule will not have a significant economic
impact on a substantial number of small entities. This
rule merely clarifies existing regulations. A copy
of the proposed rule was submitted to the Chief Counsel
for Advocacy of the Small Business Administration in
accordance with 26 U.S.C. 7805(f). No comments were
received.

Executive Order 12866

It has been determined that this regulation is
not a significant regulatory action as defined by Executive
Order 12866. Accordingly, the final rule is not subject
to the analysis required by this Executive Order.

Paperwork Reduction Act

The provisions of the Paperwork Reduction Act of
1995, Public Law 104-13, 44 U.S.C. chapter 35, and
its implementing regulations, 5 CFR part 1320, do not
apply to this final rule because there are no new reporting
or recordkeeping requirements.

Disclosure

Copies of the notice of proposed rulemaking, the
written comments, and this final rule will be available
for public inspection during normal business hours
at: ATF Public Reading Room, Room 6480, 650 Massachusetts
Avenue, NW, Washington, D.C. 20226.

Drafting Information

The author of this document is Marsha D. Baker,
Regulations Division, Bureau of Alcohol, Tobacco and
Firearms.

Subject List in 27 CFR Part 53

Administrative practice and procedure, Arms and
munitions, Authority delegations,
Export, Imports, Penalties, Reporting and recordkeeping
requirements.

Authority and Issuance

Accordingly, 27 CFR Part 53, Manufacturers Excise Taxes
- Firearms and Ammunition, is amended as follows:

PART 53 - MANUFACTURERS EXCISE TAXES - FIREARMS AND
AMMUNITION

Paragraph 1. The authority citation for
27 CFR Part 53 continues to read as follows:

Authority: 26 U.S.C. 4181, 4182, 4216-4219,
4221-4223, 4225, 6001, 6011, 6020, 6021, 6061, 6071,
6081, 6091, 6101-6104, 6109, 6151, 6155, 6161, 6301-6303,
6311, 6402, 6404, 6416, and 7502.

Par. 2. Section 53.11 is revised by adding
a new definition for the term "knockdown condition"
to read as follows:

§ 53.11 Meaning of terms


* * * * *

Knockdown condition. A taxable article that
is unassembled but complete as to all component parts.



Par. 3. Section 53.61(b) is revised to read as follows:

§ 53.61 Imposition and rates of tax.

* * * * *

(b) Parts or accessories. (1) In general. No tax is imposed by
section 4181 of the Code on the sale of parts or accessories of firearms,
pistols, revolvers, shells, and cartridges when sold separately or when sold
with a complete firearm for use as spare parts or accessories. The tax does
attach, however, to sales of completed firearms, pistols, revolvers, shells, and
cartridges, and to sale of such articles that, although in knockdown condition,
are complete as to all component parts.

(2) Component parts. Component parts are items
that would ordinarily be attached to a firearm during
use and, in the ordinary course of trade, are packaged
with the firearm at the time of sale by the manufacturer
or importer. All component parts for firearms are
includible in the price for which the article is sold.

(3) Nontaxable parts. Parts sold with firearms
that duplicate component parts that are not includible
in the price for which the article is sold.

(4) Nontaxable accessories. Items that are not
designed to be attached to a firearm during use or
that are not, in the ordinary course of trade, provided
with the firearm at the time of the sale by the manufacturer
or importer are not includible in the price for which
the article is sold.

(5) Examples. (i) In general. The following
examples are provided as guidelines
and are not meant to be all inclusive.

(ii) Component parts.
Component parts include items such as a frame or receiver, breech mechanism,
trigger mechanism, barrel, buttstock, forestock, handguard, grips, buttplate,
fore end cap, trigger guard, sight or set of sights (iron or optical), sight
mount or set of sight mounts, a choke, a flash hider, a muzzle brake, a
magazine, a set of sling swivels, and/or an attachable ramrod for muzzle loading
firearms when provided by the manufacturer or importer for use with the firearm
in the ordinary course of commercial trade. Component parts also include any
part provided with the firearm that would affect the tax status of the firearm, such as an attachable shoulder stock.

(iii) Nontaxable parts.
Nontaxable parts include items such as extra barrels, extra sights, optical
sights and mounts (in addition to iron sights), spare magazines, spare
cylinders, extra choke tubes, and spare pins.

(iv) Nontaxable accessories.
Nontaxable accessories include items such as cleaning equipment, slings, slip on
recoil pads (in addition to standard buttplate), tools, gun cases for storage or
transportation, separate items such as knives, belt buckles, or medallions.
Nontaxable accessories also include optional items purchased by the customer at
the time of retail sale that do not change the tax classification of the
firearm, such as telescopic sights and mounts, recoil pads, slings, sling
swivels, chokes, and flash hiders/muzzle brakes of a type not provided by the
manufacturer or importer of the firearm in the ordinary course of commercial
trade.

* * * * *

Signed:

Director

Approved:

Deputy Assistant Secretary

(Regulatory, Tariff and Trade Enforcement)

[FR Doc. 98-26133 Filed 9-30-98; 8:45 am]


TITLE 27-ALCOHOL, TOBACCO
PRODUCTS AND FIREARMS-CHAPTER 1-


BUREAU OF ALCOHOL, TOBACCO AND FIREARMS, DEPARTMENT
OF THE TREASURY

Implementation of Public Law
103-159, Relating to the Permanent Provisions of the
Brady Handgun Violence Prevention Act

TD ATF-415

27 CFR Parts 178 and 179

ACTION: Final
Rule, (Treasury decision).

SUMMARY: The
Bureau of Alcohol, Tobacco and Firearms (ATF) is amending
the regulations to implement the provisions of Public
Law 103-159, relating to the permanent provisions of
the Brady Handgun Violence Prevention Act. These regulations
implement the law by requiring, with some exceptions,
a licensed firearms importer, manufacturer, or dealer
to contact the national instant criminal background
check system (NICS) before transferring any firearm
to an unlicensed individual. NICS will advise the
licensee whether the system contains any information
that the prospective purchaser is prohibited by law
from possessing or receiving a firearm.

DATES: This rule is effective November 30, 1998.

FOR FURTHER INFORMATION CONTACT: James P. Ficaretta,
Regulations


Division, Bureau of Alcohol, Tobacco and Firearms, 650
Massachusetts


Avenue, NW., Washington, DC 20226 (202-927-8230).

SUPPLEMENTARY INFORMATION:

Background

On November 30, 1993, Public Law 103-159 (107 Stat.
1536) was enacted, amending the Gun Control Act of
1968 (GCA), as amended (18 U.S.C. Chapter 44). Title
I of Public Law 103-159, the Brady Handgun Violence
Prevention Act (the "Brady law"or "Brady"), imposed
as an interim measure a waiting period of 5 days before
a licensed importer, manufacturer, or dealer may sell,
deliver, or transfer a handgun to an unlicensed individual.
The waiting period applies only in States without an
acceptable alternate system of conducting background
checks on handgun purchasers. The interim provisions
of the Brady law, 18 U.S.C. 922(s), became effective
on February 28, 1994, and cease to apply on November
30, 1998.

Permanent Provisions of the Brady Law

The permanent provisions of the Brady law provide for
the establishment of a national instant criminal background check system
("NICS") that a firearms licensee must contact before transferring
any firearm to an unlicensed individual. The law requires that the permanent
system be established not later than November 30, 1998. While the interim
provisions apply only to handguns, the permanent provisions
of the Brady law apply to all firearms. Furthermore,
the law provides that the system may take up to three
business days to notify the licensee whether receipt
of a firearm by the prospective purchaser would be
in violation of law.

National Instant Criminal Background Check System

The Brady law requires that the Attorney General
establish a permanent national instant criminal background check system that any
licensee may contact, by telephone or by other electronic means in addition to
the telephone, for information on whether receipt of a firearm by a prospective
transferee would violate Federal or State law.

The law requires that the permanent system be
established not later than November 30, 1998. It is expected that the NICS will
be established by October 31, 1998, although licensees will not be required to
contact NICS until November 30, 1998.

Upon establishment of the system, the Attorney General
is required to notify each firearms licensee and the chief law enforcement
officer of each State of the existence and purpose of NICS and the means to be
used to contact NICS. Beginning on the date that is 30 days after the Attorney
General notifies firearms licensees that NICS is established, the permanent
provisions of Brady, 18 U.S.C. 922(t), become effective.

Statutory Requirements

Section 922(t) generally makes it unlawful for any
licensed firearms importer, manufacturer, or dealer
to sell, deliver, or transfer a firearm to an unlicensed
individual (transferee), unless--

1. Before the completion of the transfer, the licensee
contacts the national instant background check system;

2. The system provides the licensee with a unique
identification number signifying that transfer of the firearm would not be in
violation of law OR 3 business days (meaning a day on which State offices are
open) have elapsed from the date the licensee contacted the system and the
system has not notified the licensee that receipt of the firearm by the
transferee would be in violation of law; and

3. The licensee verifies the identity of the transferee
by examining a valid identification document containing a photograph of the
transferee.

Exceptions to NICS

The statute provides the following exceptions to the
national instant background check system:

1. The transferee presents to the licensee a permit
which was issued not more than 5 years earlier by the State in which the
transfer is to take place and which allows the transferee to possess or acquire
a firearm, and the law of the State provides that such a permit is to be issued
only after an authorized government official has verified that available
information does not indicate that possession of a firearm by the transferee
would be in violation of the law;

2. Purchases of firearms which are subject to the
National Firearms Act and which have been approved for transfer under 27 CFR
Part 179 (Machine Guns, Destructive Devices, and Certain Other Firearms); or

3. Purchases of firearms for which the Secretary has
certified that compliance with NICS is impracticable because the ratio of the
number of law enforcement officers of the State in which the transfer is to
occur to the number of square miles of land area of the State does not exceed
0.0025 (i.e., 25 officers per 10,000 square miles), the premises of the licensee
are remote in relation to the chief law enforcement officer of the area, and
there is an absence of telecommunications facilities in the geographical area in
which the business premises are located.

Penalties for Noncompliance

Section 922(t) provides that a firearms licensee
who transfers a firearm and knowingly fails to comply
with the requirements of the law, in a case where compliance
would have revealed that the transfer was unlawful,
is subject to license suspension or revocation and
a civil fine of not more than $5,000.

Notice of Proposed Rulemaking

On February 19, 1998, ATF published in the Federal
Register a notice proposing regulations to implement
the requirements placed on Federal firearms licensees
by section 922(t) (Notice No. 857; 63 FR 8379). The
comment period for Notice No. 857 closed on May 20,
1998.

On June 4, 1998, pursuant to section 103(h) of the Brady law, the
Department of Justice issued proposed regulations establishing the methods of
operation for NICS, including policies and procedures for ensuring the privacy
and security of the system and appeal procedures for individuals who are
determined by NICS to be ineligible to purchase a firearm (63 FR 30429, 30430,
and 30514). Accordingly, these issues were not addressed in ATF's proposed
regulations.

Prior to the close of the comment period, two commenters
requested that public hearings be held on the proposed regulations and one
commenter requested that the comment period be extended. ATF believes that it is
necessary to advise Federal firearms licensees of their responsibilities under
the permanent provisions of the Brady law as much in advance of the November 30,
1998, effective date as possible.

An extension of the comment period and the holding of
public hearings would delay the issuance of final regulations. Furthermore, ATF
believes that 90 days is a sufficient amount of time for all interested parties
to respond to the issues raised in the notice. Finally, ATF believes that any
information received during an extension of the comment period or presented in
oral testimony at a public hearing would be similar to that received during the
90-day comment period. Accordingly, ATF is not extending the comment period or
holding public hearings on the proposed regulations.

Analysis of Comments

In response to Notice No. 857, ATF received 8,492
comments, representing 8,779 signatures. Comments were submitted by Federal
firearms licensees, licensed firearms collectors, nonlicensed individuals,
industry trade groups, and other organizations (e.g., National Association of
Arms Shows, Inc., National Pawnbrokers Association, Violence Policy Center, Gun
Owners of America, and the National Rifle Association of America), members of
Congress, State representatives, and law enforcement officials.

Approximately 125 commenters addressed issues which were
outside the scope of the notice. These include user fees for NICS checks, hours
of operation that NICS will be available for background checks, how firearms
licensees will receive final notification from NICS in the event a background
check is delayed, provisions for a toll-free appeal hotline that firearms
purchasers can contact in the event of a wrongful denial of a purchase, and
ATF's assurance that in most cases a NICS check will be instantaneous.
These issues are being addressed in the Department of Justice's rulemaking
proceeding.

Twenty-three commenters expressed opposition to the
Brady law and urged its repeal. One hundred sixty-six commenters requested other
changes that would also require legislative action. These include eliminating
the provision of the law which authorizes NICS to take up to three business days
to respond to a request for a background check, restricting the Department of
Justice's role in implementing any provisions of the Brady law, exempting
State " instant check" and "point of sale check" systems
from a NICS check, and prohibiting NICS from containing information on certain
categories of persons prohibited from receiving or possessing firearms (such as
renunciates and persons discharged from the military under dishonorable
conditions). ATF is not adopting any of these comments because they are
inconsistent with the language of the statute.

Long Guns, Antique Firearms, and Licensed Collectors
of Curios or


Relics

Forty-seven commenters contend that the permanent
provisions of the Brady law either do not apply or should not apply to transfers
of long guns. Some commenters point out that the title of the statute, the
"Brady Handgun Violence Prevention Act," clearly shows that Congress
intended the law, both the temporary and permanent provisions, to apply only to
handguns. Other commenters argue that since the interim provisions of the Brady
law apply only to handguns, it is apparent that the permanent provisions should
apply only to handguns as well. These commenters maintain that ATF has exceeded
its authority under the Brady law by proposing to require NICS checks for all
firearms, including rifles and shotguns.

While the title of the statute is the "Brady
Handgun Violence Prevention Act," the plain language of the law clearly
states that the permanent provisions apply to all firearms, including rifles and
shotguns. In that regard, section 922(t)(1) provides that a Federal firearms
licensee "shall not transfer a firearm" to an unlicensed individual
unless before the completion of the transfer, the licensee contacts NICS.
Section 103(j)(2) of the Brady law provides that the term "firearm"
has the meaning prescribed in Sec. 921(a) of the GCA. This section defines
"firearm," in part, as "any weapon (including a starter gun)
which will or is designed to or may readily be converted to expel a projectile
by the action of an explosive; . . ." Thus, the term "firearm"
clearly includes rifles and shotguns.

Two commenters inquired whether antique firearms are
subject to the permanent provisions of the Brady law. Pursuant to section
921(a)(3), the term "firearm" does not include an antique firearm
(as defined in section 921(a)(16)). Accordingly, the transfer of an antique
firearm is not subject to the Brady law.

Several commenters requested clarification whether the
permanent provisions of the Brady law apply to licensed collectors of curios or
relics. The transfer of a firearm by a licensed collector is not subject to
section 922(t), since the law by its terms applies only to the transfer of a
firearm by a licensed importer, manufacturer, or dealer to an unlicensed person.
Furthermore, since the permanent provisions of Brady do not apply to transfers
among licensees, the transfer of a curio or relic firearm to a licensed
collector is not subject to permanent Brady. However, in transactions involving
firearms not classified as curios or relics, the licensed collector has the same
status as a nonlicensee. Thus, a licensed collector's acquisition of a
firearm that is not a curio or relic from an importer, manufacturer, or dealer
is subject to the requirements of permanent Brady.

Pawn Transactions

In Notice No. 857, ATF advised that the proposed
regulations would apply the permanent provisions of the Brady law to the
redemption of a pawned firearm. As ATF noted, the Violent Crime Control and Law
Enforcement Act of 1994, Public Law 103-322, amended Sec. 922(s) of the GCA to
specifically exempt transactions involving the return of a handgun to the person
from whom it was received. However, no such exemption appears in Sec. 922(t).

Three hundred thirty-eight commenters disagreed with
ATF's interpretation that the permanent provisions of the Brady law apply
to the redemption of a pawned firearm. Many of the commenters argue that the law
was intended to apply only to the sale of a firearm and not to pawn transactions
involving the redemption of a firearm. A national trade association representing
3,600 pawnbrokers suggested that Congress did not intend to cover the redemption
of a pawned firearm, and that the term transfer" in the Brady law referred
to a transfer of title. The commenter further contends that the amendment of
Sec. 922(s) of the GCA by the Violent Crime Control and Law Enforcement Act of
1994 "indicates their [Congress'] intent to not apply Brady to pawn
loans." Several commenters suggested that because pawn loan customers
would not have the disposable income to pay for a NICS check, they would instead
sell their firearms on the street through unregulated sources.

After carefully considering the arguments raised by the
commenters, ATF has concluded that the permanent provisions of the Brady law
apply to the redemption of a pawned firearm. Unlike Sec. 922(s) of the GCA,
there is no provision in Sec. 922(t) which exempts transactions involving the
return of a firearm to the person from whom it was received.

Furthermore, ATF does not agree with the commenters who
suggested that the return of a redeemed firearm is not a "transfer"
within the meaning of the permanent provisions of the Brady law. The redemption
of a pawned firearm has always been treated as a disposition under the GCA, and
a Form 4473 has always been required for such redemptions. Furthermore, in
Huddleston v. United States, 415 U.S. 814 (1974), the Supreme Court held that
the redemption of a pawned firearm was an acquisition within the meaning of the
GCA. Thus, there is no basis for exempting the redemption of a pawned firearm
from the permanent provisions of Brady.

Consignments

ATF has received inquiries regarding the return
by a licensee of a consigned firearm to an unlicensed
individual. In these cases, the unlicensed individual
has delivered a firearm to the licensee for sale. Sales
of the firearm are handled in the same manner as other
firearm sales. However, if the licensee does not sell
the firearm, it may be returned to the unlicensed individual.

ATF has always treated the return of
consigned firearms as a transfer or disposition within the meaning of the GCA.
The individual to whom the consigned firearms are returned must complete a Form
4473 in the same manner as any unlicensed individual who is acquiring a firearm
from a licensee. Accordingly, the final regulations do not
provide any exemption for the return of a consigned
firearm.

Repaired and Replacement Firearms

While this issue was not specifically addressed
in the proposed rule, approximately 55 comments dealt
with the application of permanent Brady to repaired
and replacement firearms. Most of those commenters
argued that the return of a repaired firearm to the
person from whom it was received should not be considered
a "transfer" for purposes of the Brady law.

The notice of proposed rulemaking did not propose that such
transactions should be subject to permanent Brady. After carefully considering
the comments on this issue, ATF agrees that the return of a repaired or
replacement firearm by a licensee is not a "transfer" within the
meaning of the Brady law.

Historically, the return of a repaired or replacement
firearm by a licensee has been treated in a different fashion from other
dispositions under the GCA. Since the enactment of the GCA in 1968, the
regulations have provided that a Form 4473 "shall not be required to
record the disposition made of a firearm delivered to a licensee for the sole
purpose of repair or customizing when such firearm or a replacement firearm is
returned to the person from whom received." See 27 CFR 178.124(a).

The final rule does not require NICS checks in any
situation in which the transferee is not required to complete a Form 4473.
Accordingly, transactions falling within the exemption found in section
178.124(a) are not subject to the requirement for an NICS check.

Time of NICS Check

As proposed in Notice No. 857, Sec. 178.102(c) provided
that a NICS check may be relied upon by the licensee only for use in a single
transaction and for a period not to exceed 30 days. If the transaction is not
completed within the 30-day period, the licensee must initiate a new NICS check
prior to completion of the transfer.

ATF received approximately 40 comments on this proposal.
Many commenters objected to the proposal that a separate NICS check must be
conducted for each separate transaction. They contend that this requirement is
unnecessary and places a burden on both NICS and the licensee. Two commenters
stated as follows:

The purpose of the check is to ensure the individual
who wishes to purchase a firearm is not a prohibited
possessor under the law. In this instance, there is
no reason to require a separate NICS check if an individual
purchases more than one firearm within a 30 day calendar
period.

Many other commenters were concerned about the validity
of a NICS check with respect to the return or exchange
of a newly purchased firearm. The Brady law provides
that a licensee may not transfer a firearm to an unlicensed
individual unless, before the completion of the transfer,
the licensee contacts NICS. It is clear that the law
contemplates that once the transfer is completed, any
additional transfer of a firearm to the same individual
would be a separate transfer that would require a separate
NICS check. With respect to the return or exchange
of a newly purchased firearm, replacement firearms
are not subject to a NICS check. However, if the firearm
is being returned and exchanged for a different firearm,
this constitutes a separate transaction and another NICS check would be
required.

Several commenters objected to ATF's proposal that
a NICS check should only be valid for 30 calendar days. Three commenters argued
that the Brady law does not specify or impose any time limit on the validity of
a NICS check. Three other commenters suggested that a NICS check should be
acceptable for multiple purchases for 5 years, the same period of time for which
a permit is valid.

Another commenter, a trade organization representing
approximately 300 firearms dealers, asserted that the proposed 30-day limitation
is unreasonable and unnecessary. This commenter states that customers often
order firearms and then later return to the licensee's premises to effect
the transfer. Based on the experience of its membership, this commenter believed
that many transfers do not take place within 30 days, due to the
customer's own business commitments or the customer's personal
circumstances. Accordingly, this commenter proposed that the NICS check should
be valid for a period of 60 days. Another commenter expressed similar concerns,
and recommended that the check should be valid for 45 days "to allow
normal transactions to occur, given delays and distances normally encountered in
firearms sales situations."

As ATF stated in Notice No. 857, it is clear that
the Brady law contemplates that the licensee should
contact NICS immediately prior to the transfer of a
firearm. However, ATF recognized that many States have
waiting periods which mandate a delay of up to 10 days
before the firearm may be transferred. Thus, the proposed
rule provided that a NICS check would be valid in a
single transaction for a period of up to 30 days. This
would allow the purchaser a reasonable period of time
to come back for the firearm in States with lengthy
waiting periods.

After carefully
considering the comments, ATF has decided not to extend the period in which a
NICS check retains its validity. ATF believes that the 30-day period is
reasonable in that it allows sufficient time for a purchaser to return to take
possession of a firearm. In situations where a purchaser has ordered a
custom-made firearm and a longer delay is required, the licensee may choose to
conduct the NICS check after the firearm comes in, rather than at the time that
the order is placed. In any event, licensees should try to avoid lengthy delays
between the time the NICS check is conducted and the time the firearm is
transferred. The 30-day limit provides a concrete limit beyond which the firearm
may not be transferred pursuant to a "stale" NICS check.

Permits

The Brady law provides that a licensee is not required
to initiate a NICS check where the purchaser presents a permit that allows the
purchaser to "possess or acquire a firearm." The final rule
clarifies that the permit must be valid under State law. Section
178.102(d)(1)(i) of the proposed regulations clarified that this exception
includes permits to carry concealed weapons as well as permits specifically
authorizing the purchase of a firearm.

Five commenters expressed opposition to ATF's
proposal that a permit to carry concealed weapons was included within the permit
exemption provided by permanent Brady. Four of the commenters contend that the
proposed regulation expands the scope of the exemption and that the clear
language of the Brady law limits the exemption to a permit to "possess or
acquire" a firearm. Two commenters maintain that this provision of the law
applies only to permits specifically authorizing the purchase of a firearm. Some
commenters assert that excepting concealed weapons permit holders from a NICS
check would significantly increase the number of exempt firearms transactions.
For example, one commenter noted that "[t]his expansion will dramatically
increase the possibility of unlawful firearms purchase[s] in part because the
varying state systems for revocation of the permits frequently involve
considerable delay."

Notwithstanding these comments, it is ATF's
conclusion from the plain language of the Brady law that a permit to
"possess" a firearm includes a permit to carry concealed weapons.
Furthermore, ATF's position in this matter is consistent with that taken
with respect to the permit alternative under the interim provisions of the Brady
law. Accordingly, Sec. 178.102(d)(1)(i) is being adopted in the final
regulations as proposed.

NICS Checks in Conjunction With the Issuance of Permits

The law provides that for a permit to qualify as an
alternative to the NICS check at the time of transfer, it must have been issued
not more than 5 years earlier by the State in which the transfer is to take
place. Furthermore, the permit is a valid alternative under permanent Brady only
if the law of the State provides that such a permit is to be issued only after
an authorized government official has verified that the information available to
such official does not indicate that possession of a firearm by such other
person would be in violation of law.

In construing the language of the statute, the proposed
regulations provided that as of November 30, 1998, "the information
available to" State officials who issue permits will include a NICS check.
The
proposed regulations also clarified that if a State
did not disqualify all individuals prohibited under Federal law, the permits
issued by that State would not be accepted as alternatives under the permanent
provisions of the Brady law.

Approximately 3,700 commenters objected to ATF's
proposal that the acceptance of permits as alternatives was conditioned upon the
State running a NICS check prior to issuing the permit. Most of the commenters
contend that the statute does not mandate that State officials conduct a NICS
check on all permit applicants. Two commenters argued that "[t]his portion
of the proposed regulation violates Prinz
[sic] v. United States. Here the United States Supreme
Court held that "The Federal Government may not compel
the States to enact or administer a federal regulatory
program." The issuance of regulations setting standards
for permits that meet the criteria of the statute in no way implicates Tenth
Amendment or Federalism concerns. Neither the Brady law nor the regulations
require States to establish or administer permit systems at all. However, the
law does set forth certain standards that State permits must meet in order to be
recognized as valid Brady alternatives.

As of November 30, 1998, "the information
available to" State officials will include NICS. As indicated in Notice
No. 857, a NICS check will provide a more extensive background check of the
purchaser than other record systems containing only criminal records. NICS will
include records from the Department of Defense concerning dishonorable
discharges, records from the Department of State regarding individuals who have
renounced United States citizenship, and other information not available in
criminal records.

Accordingly, Sec. 178.102(d)(1)(iii) is adopted as
proposed.

One commenter noted that Notice No. 857 was silent with
respect to State permits issued prior to the effective date of the permanent
provisions of the Brady law. Prior to November 30, 1998, the information
"available to" State permit officials did not include NICS. Permits
issued prior to that date that were recognized by ATF as valid alternatives
under interim Brady will continue to be recognized as valid alternatives after
November 30, 1998, notwithstanding the fact that no NICS check was conducted
prior to the issuance of the permits. These permits will be
"grandfathered" for a period not to exceed 5 years or the duration
of the permit, whichever is shorter.

Firearms Transaction Record (Form 4473)

In general, the regulations provide that prior to the
transfer of a firearm to a prospective purchaser, the buyer must complete, sign,
and date a firearms transaction record, Form 4473. The form requests certain
information, including the transferee's name, sex, height, weight, race,
residence address, date of birth, and place of birth. In Notice No. 857, ATF
proposed amending the regulations to solicit additional optional information
about the purchaser, including the transferee's social security number, to
facilitate the transfer of a firearm (Sec. 178.124(c) (2)). ATF noted in Notice
No. 857 that ATF Form 5300.35, Statement of Intent to Obtain a Handgun (Brady
form), currently requests the purchaser's social security number as
optional information.

Approximately 8,000 commenters addressed this proposal.
Twenty-five commenters misunderstood the proposal and were under the impression
the
proposed regulation was requiring purchasers to provide
their social security number on Form 4473. The remaining
commenters expressed other concerns and urged ATF to
withdraw the proposed regulation. Many commenters contend
that requesting the purchaser's social security number
violates the individual's right to privacy. The commenters
are also concerned about the possible misuse of the
information, including the establishment of a national
registry of firearms owners. Other
commenters are
concerned that the request for a purchaser's social security number as
additional optional information may eventually become a requirement. These
commenters also believe that a firearm transfer may be unnecessarily delayed or
the purchaser subjected to additional scrutiny if the social security number is
not provided. The final regulations will include the purchaser's social
security number on Form 4473 as optional information. The social security number
is a unique identifier. ATF believes that providing this information on Form
4473 will facilitate the transfer of a firearm. As discussed in Notice No. 857,
ATF believes this additional information will help minimize the
misidentification of firearms purchasers as felons or other prohibited persons
whose receipt and possession would violate the law. For example, by providing
this information the transferee might avoid confusion with a prohibited buyer
who has the same name and date of birth as the transferee. Nevertheless,
providing the social security number on Form 4473 is optional under the proposed
regulation and the purchaser is not required to provide such information.

With respect to the commenters' concern regarding
the establishment of a national registry of firearms owners, ATF would note that
the registration of firearms, firearms owners, or firearms transactions or
dispositions is specifically prohibited by 18 U.S.C. 926(a) and section 103(i)
of the Brady law. ATF would further note that Forms 4473 are maintained by
dealers, not the Federal Government.

In Notice No. 857, ATF proposed that in any transaction
for which a licensee receives a unique identification number from NICS, such
number will be recorded on Form 4473 and retained in the records of the
licensee, regardless of whether the transaction is approved or denied by NICS,
and regardless of whether the firearm is actually transferred (27 CFR
178.102(b)). Several commenters objected to the proposed requirement that
licensees retain copies of Form 4473 for denied NICS checks or where there is no
transfer of a firearm. The commenters argue that this requirement is unnecessary
and only serves to increase the paperwork burden on licensees. ATF disagrees
with the commenters and finds the requirement to be both necessary and
warranted. As explained in the notice, requiring licensees to retain Form 4473
in all cases will enable ATF to determine compliance with the law by licensees
and purchasers. Accordingly, the regulation is being adopted as proposed.

The final rule clarifies that the transaction number
provided by NICS shall include either a NICS transaction number or, in States
where the State is recognized as a point of contact for NICS checks, a State
transaction number.

Seven commenters contend that the Brady law requires
Form 4473 to be destroyed after each firearm transaction. Specifically, Sec.
922(t)(2)(C) provides that if a NICS check indicates receipt of a firearm by a
prospective purchaser would not violate Federal or State law, [T]he system shall . . . destroy all records of the system with respect to
the call (other than the identifying number and the date the number was
assigned) and all records of the system relating to the person or the transfer.

The Brady law does not require the Form 4473 to be
destroyed after each firearm transaction. The "system" mentioned in
the law refers to the national instant background check system (NICS) established by the Attorney
General. In addition, the Department of Justice has issued proposed
regulations with respect to the destruction of records in the
NICS (AG Order No. 2158-98; June 4, 1998, 63 FR
30430).

Several commenters misinterpreted Sec. 178.124(c) (3) as
proposed by ATF. It is their understanding that the regulation requires
licensees to provide NICS with information regarding the firearm being
transferred (e.g., type, model, caliber or gauge, etc.). The commenters are
opposed to NICS collecting and maintaining such information. The proposed
regulation was not intended to require licensees to provide NICS with specific
information about an individual's firearms purchase. For clarification
purposes, ATF is amending Sec. 178.124(c) and revising Form 4473 to specify that
information about the firearm being transferred (e.g., the name of the
manufacturer, the type, model, caliber, etc.) will be recorded on the Form 4473
by the licensee after the completion of the NICS check.

Civil Penalties

As explained in the notice of proposed rulemaking,
section 922(t)(5) of the GCA provides that a licensee who knowingly transfers a
firearm and knowingly fails to comply with the provisions of section 922(t)(1)
with respect to the transfer may be subject to revocation or suspension of the
license for up to 6 months and a civil fine of not more than $5,000. This
provision applies only where at the time that the transferee most recently
proposed the transfer, the national instant criminal background check system was
operating and information was available to the system demonstrating that the
transferee's receipt of a firearm would violate section 922(g) or (n) of
the GCA, or State law.

The GCA, 18 U.S.C. 923(e), already provides ATF with
authority to revoke a firearms license, after notice and opportunity for
hearing, where the licensee has willfully violated any of the provisions of the
GCA or the regulations issued thereunder. Furthermore, section 923(f) provides
that revocation actions are subject to de novo judicial review by the district
court in which the licensee resides or has his principal place of business.

ATF is amending Subpart E of Part 178 to provide that
the existing procedures for revocation of licenses will also apply to the
suspension and revocation of licenses under section 922(t)(5), as well as the
imposition of a civil fine under this provision. The final rule also clarifies
that such actions are subject to de novo judicial review by the district court.

Miscellaneous

Approximately 3,700 commenters expressed opposition to
proposed Sec. 178.97(b). This section requires a NICS check where a club or
similar organization temporarily furnishes firearms to participants in a trap or
similar shooting activity for use off the premises. The commenters contend that
this requirement "is neither required by, nor is consistent with, the
statute." ATF views the activity mentioned above in the same manner as the
loan or rental of a firearm to a nonlicensee for temporary use off the licensed
premises for lawful sporting purposes. In that regard, Sec. 178.97(a) requires
the licensee to record the transaction in his permanent records of acquisition
and disposition and on Form 4473. It is ATF's position that such a
transfer is subject to the requirements of the Brady law. Accordingly, Sec.
178.97(b) is adopted in the final regulations as
proposed.

ATF is amending Sec. 178.102(c) by revising Example 2 at
the end of the section to clarify that a firearms transaction is completed when
the licensee executes the Form 4473 and the firearm is transferred to the
purchaser. Some commenters believe the wording of the proposed regulation is
confusing and implies that a firearms transaction is completed when the licensee
executes the Form 4473, regardless of when the actual transfer of the firearm
takes place.

The proposed regulation in Sec. 178.125(e) would have
required dealers to record in their records of disposition the identification
number provided by NICS. ATF has determined that requirement is unnecessary
since the final regulations require licensees to record the unique
identification number provided by NICS on Form 4473 and to retain each Form 4473
for a period of not less than 20 years after the date of sale or disposition.

Accordingly, ATF is not amending the regulation.

Finally, section 178.125a(a) is being amended to provide
that licensees are not required to comply with the provisions of Sec. 178.102
when selling firearms from the licensee's personal collection, provided
that the licensee has maintained the firearm as part of his or her personal
collection for at least one year.

Executive Order 12866

It has been determined that this final rule is not
a significant regulatory action as defined in Executive
Order 12866. Therefore, a Regulatory Assessment is
not required.

Regulatory Flexibility Act

It is hereby certified that this final rule will not
have a significant economic impact on a substantial number of small entities.

The revenue effects of this rulemaking on small
businesses flow directly from the underlying statute. Likewise, any secondary or
incidental effects, and any reporting, recordkeeping, or other compliance
burdens flow directly from the statute. Accordingly, a regulatory flexibility
analysis is not required.

Paperwork Reduction Act

The collections of information contained in this final
regulation have been reviewed and approved by the Office of Management and
Budget in accordance with the requirements of the Paperwork Reduction Act (44
U.S.C. 3507(d)) under control number 1512-0544. Other collections of information
contained in this final rule have been approved under control numbers:
1512-0520, 1512-0006, and 1512-0524 (Sec. 178.129(c)) and 1512-0129 and
1512-0526 (Sec. 178.129(d), (e), and (f)). An agency may not conduct or sponsor,
and a person is not required to respond to, a collection of information unless
it displays a valid control number assigned by the Office of Management and
Budget.

The collections of information in this final rule are in
27 CFR 178.102, 178.124(c), 178.129(b), 178.131, and 178.150. This information
is required to implement the provisions of Public Law 103-159, relating to the
permanent provisions of the Brady Handgun Violence Prevention Act. The
collections of information are required to ensure compliance with the law. The
likely respondents and/or recordkeepers are individuals and businesses.

Estimated number of respondents: 106,000.

Estimated burden hours: 1 hour.

However, the above mentioned regulations which implement
the Brady law require amendments to ATF Form 4473. In order to prevent a
duplication of burden hours, the burden hours that are associated with the
collections of information in these regulations (1,136,266 hours) will be
reported under OMB control number 1512-0129, the Supporting Statement for ATF
Form 4473, Firearms Transaction Record, Part I. The following paragraphs explain
the additional burden hours.

Section 178.102 requires, with some exceptions,
licensees to contact NICS before transferring any firearm to an unlicensed
individual. The estimated total annual reporting and/or recordkeeping burden
associated with this requirement is 824,000 hours. Section 178.124(c) requires
licensees to record on Form 4473 the date the licensee contacts NICS and any
identification number provided by NICS. The licensee must also verify the
identity of the person acquiring the firearm by examining an identification
document presented by the transferee. Form 4473 will include certain optional
information about the purchaser, such as the person's social security
number and alien registration number. Section 178.131 requires licensees to
maintain certain records for firearms transactions not subject to a NICS check.

The estimated total annual reporting and/or
recordkeeping burden associated with Secs. 178.124(c) and 178.131 is 308,266
hours. Section 178.129(b) requires licensees to retain a completed Form 4473 for
a period of not less than 5 years where the transfer of a firearm is not made.
The estimated total annual recordkeeping burden associated with this requirement
is 4,000 hours. Section 178.150 provides for an alternative to NICS in certain
geographical locations. Licensees must submit a written application to the
Director containing certain information. The same requirement currently applies
to the waiting period provision of the Brady law for transfers of handguns.
Since this requirement was established in 1994, no licensee has qualified for an
exception from the provisions of Brady based on geographical location. As such,
ATF does not believe that there is any reporting and/or recordkeeping burden
associated with the requirements of Sec. 178.150 with regard to NICS.

Certain collections of information contained in Sec.
178.129(b), previously approved under control numbers 1512-0520, 1512-0006, and
1512-0524, are merely being redesignated as Sec. 178.129(c) in this final rule.
Similarly, the collections of information in Sec. 178.129(c), (d), and (e),
previously approved under control numbers 1512-0129 and 1512-0526, are being
redesignated as Sec. 178.129(d), (e), and (f) in the final regulation.

Comments concerning the accuracy of these burden
estimates and suggestions for reducing the burden should be directed to the
Chief, Document Services Branch, Room 3110, Bureau of Alcohol, Tobacco and
Firearms, 650 Massachusetts Avenue, NW, Washington, DC 20226, and to the Office
of Management and Budget, Attention: Desk Officer for the Department of the
Treasury, Bureau of Alcohol, Tobacco and Firearms, Office of Information and
Regulatory Affairs, Washington, DC 20503.

Disclosure

Copies of the notice of proposed rulemaking, all
written comments, and this final rule will be available
for public inspection during normal business hours
at: ATF Public Reading Room, Room 6480, 650 Massachusetts
Avenue, NW., Washington, DC. Drafting Information.
The author of this document is James P. Ficaretta,
Regulations Division, Bureau of Alcohol, Tobacco and
Firearms.

List of Subjects

27 CFR Part 178

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

27 CFR Part 179

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

Authority and Issuance

For the reasons discussed in the preamble, ATF amends
27 CFR Parts 178 and 179 as follows:

PART 178--COMMERCE IN FIREARMS AND AMMUNITION

Paragraph 1. The authority citation for 27
CFR Part 178 continues to read as follows:

Authority: 5 U.S.C. 552(a); 18 U.S.C. 847,
921-930; 44 U.S.C. 3504(h).

Par. 2. Section 178.11 is amended by adding
a definition for "NICS" to read as follows:

§ 178.11 Meaning of terms.

* * * * *


NICS. The National Instant Criminal Background
Check System established by the Attorney General pursuant
to 18 U.S.C. 922(t).


* * * * *


Par. 3. Section 178.73 is revised to read as follows:

§ 178.73 Notice of revocation, suspension,
or imposition of civil

fine.

(a) Basis for action. Whenever the regional director
(compliance) has reason to believe that a licensee has willfully violated any
provision of the Act or this part, a notice of revocation of the license, ATF
Form 4500, may be issued. In addition, a notice of revocation, suspension, or
imposition of a civil fine may be issued on ATF Form 4500 whenever the regional
director (compliance) has reason to believe that a licensee has knowingly
transferred a firearm to an unlicensed person and knowingly failed to comply
with the requirements of 18 U.S.C. 922(t)(1) with respect to the transfer and,
at the time that the transferee most recently proposed the transfer, the
national instant criminal background check system was operating and information
was available to the system demonstrating that the transferee's receipt of
a firearm would violate 18 U.S.C. 922(g) or 922(n) or State law.

(b) Issuance of notice. The notice shall set forth the
matters of fact constituting the violations specified, dates, places, and the
sections of law and regulations violated. The regional director (compliance)
shall afford the licensee 15 days from the date of receipt of the notice in
which to request a hearing prior to suspension or revocation of the license, or
imposition of a civil fine. If the licensee does not file a timely request for a
hearing, the regional director (compliance) shall issue a final notice of
suspension or revocation and/or imposition of a civil fine on ATF Form 4501, as
provided in Sec. 178.74.

Par. 4. Section 178.74 is
revised to read as follows:

§ 178.74 Request for hearing after notice of suspension,
revocation, or imposition of civil fine.

If a licensee desires a hearing after receipt of a
notice of suspension or revocation of a license, or imposition of a civil fine,
the licensee shall file a request, in duplicate, with the regional director
(compliance) within 15 days after receipt of the notice of suspension or
revocation of a license, or imposition of a civil fine. On receipt of such
request, the regional director (compliance) shall, as expeditiously as possible,
make necessary arrangements for the hearing and advise the licensee of the date,
time, location and the name of the officer before whom the hearing will be held.
Such notification shall be made no less than 10 days in advance of the date set
for the hearing. On conclusion of the hearing and consideration of all the
relevant presentations made by the licensee or the licensee's
representative, the regional director (compliance) shall render a decision and
shall prepare a brief summary of the findings and conclusions on which the
decision is based. If the decision is that the license should be revoked, or, in
actions under 18 U.S.C. 922(t)(5), that the license should be revoked or
suspended, and/or that a civil fine should be imposed, a certified copy of the
summary shall be furnished to the licensee with the final notice of revocation,
suspension, or imposition of a civil fine on ATF Form 4501. If the decision is
that the license should not be revoked, or in actions under 18 U.S.C. 922(t)(5),
that the license should not be revoked or suspended, and a civil fine should not
be imposed, the licensee shall be notified in writing.

Par. 5. Section 178.78 is
revised to read as follows:

§ 178.78 Operations by licensee after notice.

In any case where denial, suspension, or revocation
proceedings are pending before the Bureau of Alcohol,
Tobacco and Firearms, or notice of denial, suspension,
or revocation has been served on the licensee and he
has filed timely request for a hearing, the license
in the possession of the licensee shall remain in effect
even though such license has expired, or the suspension
or revocation date specified in the notice of revocation
on Form 4500 served on the licensee has passed: Provided,
That with respect to a license that has expired, the
licensee has timely filed an application for the renewal
of his license. If a licensee is dissatisfied with
a posthearing decision revoking or suspending the license
or denying the application or imposing a civil fine,
as the case may be, he may, pursuant to 18 U.S.C. 923(f)(3),
within 60 days after receipt of the final notice denying
the application or revoking or suspending the license
or imposing a civil fine, file a petition for judicial
review of such action. Such petition should be filed
with the U.S. district court for the district in which
the applicant or licensee resides or has his principal
place of business. In such case, when the regional
director (compliance) finds that justice so requires,
he may postpone the effective date of suspension or
revocation of a license or authorize continued operations
under the expired license, as applicable, pending judicial
review.

Par. 6. Section 178.96 is amended by revising
the first sentence in paragraph (b), and by revising
paragraph (c) to read as follows:

§ 178.96 Out-of-State and mail order sales.

* * * * *


(b) A licensed
importer, licensed manufacturer, or licensed dealer may sell a firearm that is
not subject to the provisions of Sec. 178.102(a) to a nonlicensee who does not
appear in person at the licensee's business premises if the nonlicensee is
a resident of the same State in which the licensee's business premises are
located, and the nonlicensee furnishes to the licensee the firearms transaction
record, Form 4473, required by Sec. 178.124.

* * * * *

(c) (1) A licensed importer, licensed manufacturer,
or licensed dealer may sell or deliver a rifle or shotgun,
and a licensed collector may sell or deliver a rifle
or shotgun that is a curio or relic to a nonlicensed
resident of a State other than the State in which the
licensee's place of business is located if--

(i) The purchaser meets with the licensee in person
at the licensees premises to accomplish the transfer,
sale, and delivery of the rifle or shotgun;

(ii) The licensed importer, licensed manufacturer, or
licensed dealer complies with the provisions of Sec. 178.102;

(iii) The purchaser furnishes to the licensed importer,
licensed manufacturer, or licensed dealer the firearms transaction record, Form
4473, required by Sec. 178.124; and

(iv) The sale, delivery, and receipt of the rifle or
shotgun fully comply with the legal conditions of sale in both such States.

(2) For purposes of paragraph (c) of this section, any
licensed manufacturer, licensed importer, or licensed dealer is presumed, in the
absence of evidence to the contrary, to have had actual knowledge of the State
laws and published ordinances of both such States.

Par. 7. Section 178.97 is
revised to read as follows:

§ 178.97 Loan or rental of firearms.

(a) A licensee may lend or rent a firearm to any person
for temporary use off the premises of the licensee for lawful sporting purposes:
Provided, That the delivery of the firearm to such person is not prohibited by
Sec. 178.99(b) or Sec. 178.99(c), the licensee complies with the requirements of
Sec. 178.102, and the licensee records such loan or rental in the records
required to be kept by him under Subpart H of this part.

(b) A club, association, or similar organization
temporarily furnishing firearms (whether by loan, rental, or otherwise) to
participants in a skeet, trap, target, or similar shooting activity for use at
the time and place such activity is held does not, unattended by other
circumstances, cause such club, association, or similar organization to be
engaged in the business of a dealer in firearms or as engaging in firearms
transactions. Therefore, licensing and recordkeeping requirements contained in
this part pertaining to firearms transactions would not apply to this temporary
furnishing of firearms for use on premises on which such an activity is
conducted.

Par. 8. Section 178.102 is revised to read
as follows:

§ 178.102 Sales or deliveries of firearms on and
after November 30, 1998.

(a) Background check. Except as provided in paragraph
(d) of this section, a licensed importer, licensed manufacturer, or licensed
dealer (the licensee) shall not sell, deliver, or transfer a firearm to any
other person who is not licensed under this part unless the licensee meets the
following requirements:



(1) Before the completion of
the transfer, the licensee has contacted NICS;



(2)(i) NICS informs the
licensee that it has no information that receipt of the firearm by the
transferee would be in violation of Federal or State law and provides the
licensee with a unique identification number; or

(ii) Three business days (meaning days on which State
offices are open) have elapsed from the date the licensee contacted NICS and
NICS has not notified the licensee that receipt of the firearm by the transferee
would be in violation of law; and

(3) The licensee verifies the identity of the transferee
by examining the identification document presented in accordance with the
provisions of Sec. 178.124(c).

Example for paragraph (a). A licensee contacts NICS
on Thursday, and gets a "delayed" response. The licensee
does not get a further response from NICS. If State
offices are not open on Saturday and Sunday, 3 business
days would have elapsed on the following Tuesday. The
licensee may transfer the firearm on the next day,
Wednesday.

(b) Transaction number. In any transaction for which a
licensee receives a transaction number from NICS (which shall include either a
NICS transaction number or, in States where the State is recognized as a point
of contact for NICS checks,
a State transaction number), such number shall be
recorded on a firearms transaction record, Form 4473, which
shall be retained in the records of the licensee in
accordance with the provisions of Sec. 178.129. This applies regardless
of whether the transaction is approved or denied by
NICS, and regardless of whether the firearm is actually
transferred.

(c) Time limitation on NICS checks. A NICS check
conducted in accordance with paragraph

(a) of this section may be relied upon by the licensee
only for use in a single transaction, and for a period not to exceed 30 calendar
days from the date that NICS was initially contacted. If the transaction is not
completed within the 30-day period, the licensee shall initiate a new NICS check
prior to completion of the transfer.

Example 1 for paragraph (c). A purchaser completes
the Form 4473 on December 15, 1998, and a NICS check
is initiated by the licensee on that date. The licensee
is informed by NICS that the information available
to the system does not indicate that receipt of the
firearm by the transferee would be in violation of
law, and a unique identification number is provided.
However, the State imposes a 7-day waiting period on
all firearms transactions, and the purchaser does not
return to pick up the firearm until January 22, 1999.
The licensee must conduct another NICS check before
transferring the firearm to the purchaser.

Example 2 for paragraph (c). A purchaser completes
the Form 4473 on January 25, 1999, and arranges for the purchase of a single
firearm. A NICS check is initiated by the licensee on that date. The
licensee is informed by NICS that the information available to the system
does not indicate that receipt of the firearm by the transferee would be in
violation of law, and a unique identification number is provided. The State
imposes a 7-day waiting period on all firearms transactions, and the
purchaser returns to pick up the firearm on February 15, 1999. Before the
licensee executes the Form 4473, and the firearm is transferred, the
purchaser decides to purchase an additional firearm. The transfer of these
two firearms is considered a single transaction; accordingly, the licensee
may add the second firearm to the Form 4473, and transfer that firearm
without conducting another NICS check.

Example 3 for paragraph (c). A purchaser completes a
Form 4473 on February 15, 1999. The licensee receives a unique
identification number from NICS on that date, the Form 4473 is executed by
the licensee, and the firearm is transferred. On February 20, 1999, the
purchaser returns to the licensee's premises and wishes to purchase a second
firearm. The purchase of the second firearm is a separate transaction; thus,
a new NICS check must be initiated by the licensee.

(d) Exceptions to NICS check. The provisions of
paragraph (a) of this section shall not apply if--

(1) The transferee has presented to the licensee a
valid permit or license that--

(i) Allows the transferee to possess, acquire, or
carry a firearm;

(ii) Was issued not more than 5 years earlier by the
State in which the transfer is to take place; and

(iii) The law of the State provides that such a
permit or license is to be issued only after an authorized government
official has verified that the information available to such official does
not indicate that possession of a firearm by the transferee would be in
violation of Federal, State, or local law: Provided, That on and after
November 30, 1998, the information available to such official includes the
NICS;

(2) The firearm is subject to the provisions of the
National Firearms Act and has been approved for transfer under 27 CFR Part
179; or

(3) On application of the licensee, in accordance
with the provisions of Sec. 178.150, the Director has certified that
compliance with paragraph (a)(1) of this section is impracticable.
(e) The document referred to in paragraph (d)(1) of
this section (or a copy thereof) shall be retained or the required
information from the document shall be recorded on the firearms transaction
record in accordance with the provisions of Sec. 178.131.

(Approved by the Office of Management and Budget
under control number 1512-0544)

Par. 9. Section 178.124
is amended by revising paragraph (c), by removing "paragraph (c)
(1)(ii)" in paragraphs (d) and (e) and adding in its place
"paragraph (c) (3)(ii)", by revising the first sentence in
paragraph (f), and by revising the parenthetical text at the end of the
section to read as follows:

§ 178.124 Firearms
transaction record.

* * * * *


(c) (1) Prior to making an over-the-counter transfer of a firearm to a
nonlicensee who is a resident of the State in which the licensee's business
premises is located, the licensed importer, licensed manufacturer, or
licensed dealer so transferring the firearm shall obtain a Form 4473 from
the transferee showing the transferee's name, sex, residence address
(including county or similar political subdivision), date and place of
birth; height, weight and race of the transferee; whether the transferee is
a citizen of the United States; the transferee's State of residence; and
certification by the transferee that the transferee is not prohibited by the
Act from transporting or shipping a firearm in interstate or foreign
commerce or receiving a firearm which has been shipped or transported in
interstate or foreign commerce or possessing a firearm in or affecting
commerce.

(2) In order to facilitate the transfer of a firearm
and enable NICS to verify the identity of the person acquiring the firearm,
ATF Form 4473 also requests certain optional information. This information
includes the transferee's social security number and alien registration
number (if applicable). Such information may help avoid the possibility of
the transferee being misidentified as a felon or other prohibited person.

(3) After the transferee has executed the Form 4473,
the licensee:

(i) Shall verify the identity of the transferee by
examining the identification document (as defined in Sec. 178.11) presented,
and shall note on the Form 4473 the type of identification used;

(ii) Shall, in the case of a transferee who is an
alien legally in the United States, cause the transferee to present
documentation establishing that the transferee is a resident of the State
(as defined in Sec. 178.11) in which the licensee's business premises is
located, and shall note on the form the documentation used. Examples of
acceptable documentation include utility bills or a lease agreement which
show that the transferee has resided in the State continuously for at least
90 days prior to the transfer of the firearm; and

(iii) Shall comply with the requirements of Sec.
178.102 and record on the form the date on which the licensee contacted the
NICS, as well as any response provided by the system, including any
identification number provided by the system.

(4) The licensee shall identify the firearm to be
transferred by listing on the Form 4473 the name of the manufacturer, the
name of the importer (if any), the type, model, caliber or gauge, and the
serial number of the firearm.

(5) The licensee shall sign and date the form if the
licensee does not know or have reasonable cause to believe that the
transferee is disqualified by law from receiving the firearm and transfer
the firearm described on the Form 4473.

* * * * *


(f) Form 4473 shall be submitted, in duplicate, to a licensed
importer, licensed manufacturer, or licensed dealer by a transferee who is
purchasing or otherwise acquiring a firearm by other than an
over-the-counter transaction, who is not subject to the provisions of Sec.
178.102(a), and who is a resident of the State in which the licensee's
business premises are located.

* * * * *


(Paragraph (c) approved by the Office of Management and Budget under
control number 1512-0544; paragraph (f) approved by the Office of Management
and Budget under control number 1512-0130; all other recordkeeping approved
by the Office of Management and Budget under control number 1512-0129)

§ 178.124a
[Amended]

Par. 10. Section 178.124a is amended by removing the
period at the end of the introductory text of paragraph (e) and adding in
its place a colon.

§ 178.125a
[Amended]

Par. 11. Section 178.125a is amended by adding
"comply with the provisions of Sec. 178.102 or" after the phrase
"is not required to" in the introductory text of paragraph (a).

Par. 12. Section 178.129 is amended by revising
paragraph (b), by redesignating paragraphs (c), (d), and (e) as paragraphs
(d), (e), and (f), by adding new paragraph (c), and by revising the
parenthetical text at the end of the section to read as follows:

§ 178.129 Record
retention.

* * * * *


(b) Firearms transaction record. Licensees shall
retain each Form 4473 and Form 4473(LV) for a period of not less than 20
years after the date of sale or disposition. Where a licensee has initiated
a NICS check for a proposed firearms transaction, but the sale, delivery, or
transfer of the firearm is not made, the licensee shall record any
transaction number on the Form 4473, and retain the Form 4473 for a period
of not less than 5 years after the date of the NICS inquiry.

Forms 4473 shall be retained in the licensee's
records as provided in Sec. 178.124(b): Provided, That Forms 4473 with
respect to which a sale, delivery or transfer did not take place shall be
separately retained in alphabetical (by name of transferee) or chronological
(by date of transferee's certification) order.

(c) Statement of intent to obtain a handgun, reports
of multiple sales or other disposition of pistols and revolvers, and reports
of theft or loss of firearms. Licensees shall retain each Form 5300.35
(Statement of Intent to Obtain a Handgun(s)) for a period of not less than 5
years after notice of the intent to obtain the handgun was forwarded to the
chief law enforcement officer, as defined in Sec. 178.150(c). Licensees
shall retain each copy of Form 3310.4 (Report of Multiple Sale or Other
Disposition of Pistols and Revolvers) for a period of not less than 5 years
after the date of sale or other disposition. Licensees shall retain each
copy of Form 3310.11 (Federal Firearms Licensee Theft/Loss Report) for a
period of not less than 5 years after the date the theft or loss was
reported to ATF.

* * * * *


(Paragraph (b) approved by the Office of Management
and Budget under control number 1512-0544; Paragraph (c) approved by the
Office of Management and Budget under control numbers 1512-0520, 1512-0006,
and 1512-0524; Paragraph (f) approved by the Office of Management and Budget
under control number 1512-0526; all other recordkeeping approved by the
Office of Management and Budget under control number 1512-0129)

§ 178.130 [Removed]

Par. 13. Section 178.130
is removed.
Par. 14.
Section 178.131 is revised to read as follows:

§ 178.131 Firearms
transactions not subject to a NICS check.

(a)(1) A licensed importer, licensed manufacturer,
or licensed dealer whose sale, delivery, or transfer of a firearm is made
pursuant to the alternative provisions of Sec. 178.102(d) and is not subject
to the NICS check prescribed by Sec. 178.102(a) shall maintain the records
required by paragraph (a) of this section.

(2) If the transfer is pursuant to a permit or
license in accordance with Sec. 178.102(d)(1), the licensee shall either
retain a copy of the purchaser's permit or license and attach it to the
firearms transaction record, Form 4473, or record on the firearms
transaction record, Form 4473, any identifying number, the date of issuance,
and the expiration date (if provided) from the permit or license.

(3) If the transfer is pursuant to a certification
by ATF in accordance with Secs. 178.102(d)(3) and 178.150, the licensee
shall maintain the certification as part of the records required to be kept
under this subpart and for the period prescribed for the retention of Form
5300.35 in Sec. 178.129(c).

(b) The requirements of this section shall be in
addition to any other recordkeeping requirements contained in this part.

(Approved by the Office of Management and Budget
under control number 1512-0544)

Par. 15. Section 178.150
is revised to read as follows:

§ 178.150 Alternative
to NICS in certain geographical locations.

(a) The provisions of Sec. 178.102(d)(3) shall be
applicable when the Director has certified that compliance with the
provisions of Sec. 178.102(a)(1) is impracticable because:

(1) The ratio of the number of law enforcement
officers of the State in which the transfer is to occur to the number of
square miles of land area of the State does not exceed 0.0025;

(2) The business premises of the licensee at which
the transfer is to occur are extremely remote in relation to the chief law
enforcement officer; and

(3) There is an absence of telecommunications
facilities in the geographical area in which the business premises are
located.

(b) A licensee who desires to obtain a certification
under this section shall submit a written request to the Director. Each
request shall be executed under the penalties of perjury and contain
information sufficient for the Director to make such certification.

Such information shall include statistical data,
official reports, or other statements of government agencies pertaining to
the ratio of law enforcement officers to the number of square miles of land
area of a State and statements of government agencies and private utility
companies regarding the absence of telecommunications facilities in the
geographical area in which the licensee's business premises are located.

(c) For purposes of this section and Sec.
178.129(c), the "chief law enforcement officer" means the chief of
police, the sheriff, or an equivalent officer or the designee of any such
individual.

(Approved by the Office of Management and Budget
under control number 1512-0544)

PART 179--MACHINE GUNS,
DESTRUCTIVE DEVICES, AND CERTAIN OTHER FIREARMS

Par. 16. The authority
citation for 27 CFR part 179 continues to read as follows:

Authority: 26 U.S.C.
7805.

Par. 17. Section 179.86
is amended by adding a sentence at the end of the section to read as
follows:

§ 179.86 Action on
application.

* * * * *

 In addition to any other records checks that
may be conducted to determine whether the transfer, receipt, or possession
of a firearm would place the transferee in violation of law, the Director
shall contact the National Instant Criminal Background Check System.

Signed: October 1, 1998.

John W. Magaw,
Director.

Approved: October 16, 1998.

John P. Simpson,
Deputy Assistant Secretary
(Regulatory, Tariff and Trade Enforcement).

[FR Doc. 98-28986
Filed 10-28-98; 8:45 am]

Announcements - VI

Announcement 98-9

Major Disaster Areas
Proclaimed by the President

The President has
determined that certain areas of the United States were adversely
affected by disasters of sufficient magnitude to warrant Federal
assistance under the Disaster Relief Act of 1974. The specific areas
adversely affected as identified by the Administrator, Federal Emergency
Management Agency (FEMA) are listed below.

Persons in the affected areas holding for sale
alcoholic beverages, cigars, cigarettes, or cigarette papers or tubes,
which were lost, rendered unmarketable, or condemned by a duly
authorized official by reason of these disasters, may be paid an amount
equal to the internal revenue taxes and customs duties paid on such
products, as provided in 26 U.S.C. 564 and 5708. Claims for such
payments should be filed with the District Director (Regulatory
Enforcement Operations), Bureau of Alcohol, Tobacco and Firearms, for
the ATF district in which the alcoholic beverages, cigarettes, etc.,
were held for sale. Claims may be allowed only if filed within six
months after the date the FEMA identifies the specific disaster area.

ALABAMA 1250 October
14, 1998
Type of Disaster: Hurricane Georges

Counties: Baldwin, Butler, Choctaw, Clarke,
Coffee, Conecuh, Covington, Crenshaw, Escambia, Geneva, Lowndes, Mobile,
Monroe, Washington

ALABAMA 3133 October
14, 1998
Type of Disaster: Hurricane Georges

Counties: Baldwin, Butler, Clarke, Coffee,
Conecuh, Covington, Crenshaw, Escambia, Geneva, Mobile, Monroe,
Washington

FLORIDA 1241
September 21, 1998
Type of Disaster:
Hurricane Earl
Counties: Bay, Dixie, Franklin,
Gulf, Wakulla

FLORIDA 1249 October
14, 1998
Type of Disaster: Hurricane Georges

Counties: Bay, Calhoun, Columbia, Escambia,
Franklin, Gadsden, Gulf, Holmes, Jefferson, Liberty, Monroe, Okaloosa,
Santa Rosa, Suwanee, Walton, Washington

FLORIDA 3131 October
14, 1998
Type of Disaster: Hurricane Georges

Counties: Bay, Escambia, Franklin, Gulf,
Jackson, Okaloosa, Santa Rosa, Wakulla, Walton

FLORIDA 1259
December 4, 1998
Type of Disaster: Tropical
Storm Mitch
Counties: Monroe, Palm Beach

KANSAS 1254 November
3, 1998
Type of Disaster: Severe storms,
flooding, and tornadoes
Counties: Bourbon,
Douglas, Jackson, Johnson, Leavenworth, Linn, Seward, Wabaunsee,
Wyandotte

KANSAS 1258 December
4, 1998
Type of Disaster: Severe storms and
flooding
Counties: Butler, Chase, Coffey,
Cowley, Douglas, Franklin, Greenwood, Harper, Harvey, Johnson,
Leavenworth, Lyon, Marion, Neosho, Saline, Sedgwick, Sumner, Wilson,
Wyandotte

LOUISIANA 1246
October 5, 1998
Type of Disaster: Hurricane
Georges
Parishes: Acadia, Ascension,
Assumption, Cameron, Jefferson, Lafourche, Livingston, Orleans,
Plaquemines, St. Bernard, St. Charles, St. James, St. John, St. Martin,
St. Mary, St. Tammany, Tangipahoa, Terrebone, Vermillion, Washington

MISSISSIPPI 3132
October 14, 1998
Type of Disaster:
Hurricane Georges
Counties: Covington, Forrest,
George, Greene, Hancock, Harrison, Jackson, Jefferson Davis, Jones,
Lamar, Lawrence, Marion, Pearl River, Perry, Pike, Walthall, Wayne

MISSOURI 1253
November 3, 1998
Type of Disaster: Severe
storms and flooding
Counties: Barton, Carrol,
Cedar, Chariton, Clay, Jackson, Linn

NEW YORK 1244
September 25, 1998
Type of Disaster: Severe
storms and high winds
Counties: Cayuga, Fulton,
Herkimer, Madison, Monroe, Nassau, Oneida, Onondaga, Ontario, Orleans,
Wayne

PUERTO RICO 3130
October 5, 1998
Type of Disaster: Hurricane
Georges

PUERTO RICO 1247
October 14, 1998
Type of Disaster:
Hurricane Georges

SOUTH CAROLINA 1243
September 21, 1998
Type of Disaster:
Hurricane Bonnie
County: Horry

TEXAS 1245 October
14, 1998
Type of Disaster: Tropical Storm
Frances
Counties: Brazona, Galveston, Harris,
Jefferson, Matagorda

VIRGINIA 1242
September 21, 1998
Type of Disaster:
Hurricane Bonnie
Cities: Chesapeake, Norfolk,
Portsmouth, Suffolk, Virginia Beach

VIRGIN ISLANDS 1248
October 14, 1998
Type of Disaster:
Hurricane Georges
Islands: St. Croix, St. John,
St. Thomas, Water Island

VIRGIN ISLANDS 3129
October 5, 1998
Type of Disaster: Hurricane
Georges

WASHINGTON 1252
November 3, 1998
Type of Disaster: Severe
storms and flooding
Counties: Ferry, Stevens

WASHINGTON 1255
November 3, 1998
Type of Disaster:
Landslide
City: Kelso (Cowlitz County),
specifically the Aldercrest-Banyon subdivision

Amendments to Previously
Declared Disasters

MISSISSIPPI 1251
Amendment
Counties: Covington, Forrest,
George, Greene, Hancock, Harrison, Jackson, Jasper, Jefferson Davis,
Jones, Lamar, Marion, Pearl River, Perry, Pike, Stone, Wayne

NORTH CAROLINA 1240
Amendment
Counties: Bladen, Columbus,
Craven, Duplin, Jones, Pasquotant, Pitt, Tyrell, Washington

TEXAS 1257 Amendment

Counties: Atacosa, Austin, Bastrop, Bexar,
Blanco, Brazoria, Burleson, Caldwell, Calhoun, Colorado, Comal, DeWitt,
Fayette, Fort Bend, Galveston, Goliad, Gonzales, Guadalupe, Harris,
Hays, Jackson, Jefferson, Karnes, Liberty, Matagorda, Medino,
Montgomery, Nueces, Refugio, San Jacinto, San Patricio, Travis,
Victoria, Waller, Wharton, Wilson

Announcement
98-10
Offers in
Compromise

Company/Individual
Location Amount Alleged

California Wine Transport Inc. $10,000 Failure
to reconcile records;
San Jose, CA Failed to
complete transfer in bond documents; Failed to prepare authentic bills
of lading; Failed to complete ATF F 5100.11, Withdrawal of Wine for
Export, for 58 shipments; Prepared false commercial documents, and
stored tax paid wine on bonded premises.

E. & J. Gallo Winery $50,000 Failed to comply
with the
Modesto, CA requirements of 26 U.S.C 5001,

5007, 5061, 5213 and 6656; and 27 CFR 19.515,
19.526 and 19.524(d).

The Pinkerton Tobacco Company $26,000 Failure to
maintain daily record Owensboro, KY of tobacco products; Failure to Retain
production source records; Tobacco products were exported without proper
markings, except for shipments to Canada during the period 1988 through
October 1993; Failure to accurately categorize and report exported tobacco
products; Failure to accurately report physical inventory of chewing tobacco
on monthly report; Failure to obtain ATF approval to engage in business of
manufacturing Cricket lighters; Failure to retain proof of EFT excise tax
payments at permittee's premises; Failure to identify taxpaid and
non-taxpaid tobacco products in the bonded storage warehouse.

The victoire French-American $2,000 Submitted
counterfeit
Wine & Spirits Company, Inc.
COLA's (represented as
dba VICTOIRE IMPORTS
currently approved);
San Leandro, CA Submitted
expired COLA's (represented as currently
approved); Removed wines from Customs without a
COLA.

Announcement 98-11
Revocations

Permittees not engaged in the operations authorized
by their permit for a period of more than (2) years are subject to
revocation. The following permit(s) have been revoked for this reason.

Company/Location

L'Surf Enterprises, Inc.
Pleasantville, NJ
(Wholesaler)

Announcement 98-12
Unified Agenda of Federal
Regulations

ATF published its Unified Agenda of Federal
Regulations in the Federal Register of November 9, 1998. The Unified Agenda
is designed to give the public notice of ATF regulatory activities which
will be under development and review during the period of April 1998 through
October 1998. Information concerning specific items appearing in the
following unified agenda should be directed to the appropriate contact
person indicated.

Prerule Stage

American Viticultural
Areas

RIN: 1512-AA07 (PRERULE)

REGULATORY PLAN: No

PRIORITY: Substantive,
Nonsignificant

UNFUNDED MANDATES: No

MAJOR: No

REINVENTING GOVERNMENT:
This rulemaking is not part of the Reinventing Government effort.

LEGAL AUTHORITY: 27 USC
205

CFR CITATION: 27 CFR 9

LEGAL DEADLINE: None

ABSTRACT: This rule
establishes grape-growing regions as American viticultural areas for
purposes of labeling and advertising of wine.

Timetable:

ANPRM.............................................11/00/98
California Coastal, CA (David Brokaw)
ANPRM 11/00/98

Chiles Valley, CA (contact Thomas Busey)
NPRM 03/20/98 (63 FR 13583)
Comment Period End 05/19/98
Final Rule
11/00/98

Diablo Grande, CA (contact David Brokaw)
NPRM 06/24/97 (62 FR 34027)
Comment Period End 08/25/97
Final Rule
06/22/98 (63 FR 33850)

Oak Knoll District, CA (Joyce Drake)
NPRM 11/00/98

San Francisco Bay, CA (contact David Brokaw)
NPRM 10/20/97 (62 FR 54399)
Comment Period End 01/20/98
Final Rule
11/00/98

Yorkville Highlands & Realignment of Mendocino,
CA (Marj Ruhf)
NPRM 07/25/97 (62 FR 39984)
NPRM Comment Period End 09/23/97
Final Rule 04/07/98 (63 FR 16902)
Final Rule
04/07/98 (63 FR 16902)

Yountville, CA (contact Thomas Busey)
NPRM 11/00/98

REGULATORY FLEXIBILITY
ANALYSIS REQUIRED:
No

GOVERNMENT LEVELS
AFFECTED:
None

SUBJECT CODES: ALCOHOL

PROCUREMENT: No

AGENCY CONTACT: See
Timetable, American Viticultural Areas, Department of the Treasury,
Bureau of Alcohol, Tobacco and Firearms, 650 Massachusetts Avenue NW.,
Washington DC 20226, Phone: (202) 927-8230, Fax: (202) 927-8602

Country of Origin Statements on Distilled Spirits
Labels

RIN: 1512-AB72

REGULATORY PLAN: No

PRIORITY: Substantive,
Nonsignificant

UNFUNDED MANDATES: No

MAJOR: No

REINVENTING GOVERNMENT:

This rulemaking is not part of the Reinventing
Government effort.

LEGAL AUTHORITY:
19 USC 1304; 27 USC 205

CFR CITATION: 27 CFR 5

LEGAL DEADLINE: None

ABSTRACT: ATF plans to
issue an advance notice to obtain comments from consumers and industry
members regarding the labeling of distilled spirits products. Specifically,
ATF is requesting comments regarding how the requirement to identify the
country of origin, found at 27 CFR 5.36(e) should be applied to mixtures of
imported and domestic spirits.

Timetable:

ACTION DATE FR CITE

ANPRM.............................................11/00/98

REGULATORY FLEXIBILITY
ANALYSIS REQUIRED:
No

SMALL ENTITIES AFFECTED:
No

GOVERNMENT LEVELS
AFFECTED:
None

SUBJECT CODES: ALCOHOL

PROCUREMENT: No

AGENCY CONTACT:
Daniel J. Hiland,
Specialist,

Department of the Treasury,
Bureau of Alcohol, Tobacco and Firearms,
650
Massachusetts Avenue NW.,
Washington, DC 20226,
202 927-8210,
202 927-8602
(FAX)

Proposed Rule Stage

Exportation of Liquors

RIN: 1512-AA98

REGULATORY PLAN: No

PRIORITY: Substantive,
Nonsignificant

UNFUNDED MANDATES: No

MAJOR: No

REINVENTING GOVERNMENT:
This rulemaking is part of the Reinventing Government effort.It will
revise text in the CFR to reduce burden or duplication, or streamline
requirements.

LEGAL AUTHORITY: 26 USC
7805

CFR CITATION: 27 CFR 252

LEGAL DEADLINE: None

ABSTRACT:
ATF is proposing recodification of 27 CFR part 252 to
eliminate
obsolete or unnecessary rules and forms
and streamline export
processing, while providing
adequate protection for the revenue.

Timetable:

ACTION DATE FR CITE

ANPRM.............................................09/08/92
57 FR 40887
ANPRM Comment Period
End.................10/08/92
ANPRM
Comment Period Extended.........10/15/92 57 FR 47320
ANPRM Comment Period Extended End.........12/07/92
ANPRM.............................................08/09/96
61 FR 41500
ANPRM Comment Period
End.........................12/10/96
NPRM............................................03/00/99

REGULATORY FLEXIBILITY
ANALYSIS REQUIRED:
No

GOVERNMENT LEVELS
AFFECTED:
None

SUBJECT CODES: ALCOHOL

PROCUREMENT: No

AGENCY CONTACT:
Marjorie Ruhf, Coordinator,
Department of the Treasury,
Bureau of
Alcohol, Tobacco and Firearms,
650 Massachusetts
Avenue NW.,
Washington, DC 20226,
202 927-8230,
202 927-8602 (FAX)

TITLE: Revision of
Brewery Regulations and Issuance of Regulations for
Taverns on Brewery Premises (Brewpubs)

RIN: 1512-AB37
(PROPOSED)

REGULATORY PLAN: Yes

PRIORITY: Other
Significant

UNFUNDED MANDATES: No

MAJOR: No

REINVENTING GOVERNMENT:

This rulemaking is part of the Reinventing
Government effort.

It will revise text in the CFR to reduce burden or
duplication, or streamline requirements.

LEGAL AUTHORITY:
26 USC 5051 to 5056; 26 USC 5401 to 5417; 27 USC 205

CFR CITATION:
27 CFR 7; 27 CFR 25

LEGAL DEADLINE: None

ABSTRACT: ATF intends to
streamline regulations applying to breweries. ATF
will eliminate obsolete regulatory provisions. A formula system for
manufactured beer products will replace statements of process attached to
the brewers notice. The annual notice for small brewers to pay reduced rate
of tax will be eliminated. Separate regulations for brewpubs will be added
to part 25. A section will be added to part 25 to authorize and regulate the
alternating use of brewery premises by different brewers. Regulations
authorizing the operation of brew-on-premises facilities will be added to
part 25.

STATEMENT OF NEED: ATF
intends to streamline its regulations applying to the brewing industry.
These changes will simplify brewery reports and operations and eliminate
obsolete regulatory provisions. Specific changes would include the
implementation of a formula system for the breweries to replace the
statement of process; the establishment of a separate subpart containing
simplified regulations for brewpubs; authorizing alternating brewery
premises among different proprietors; eliminating the annual notice to pay
reduced rate of tax for most breweries; authorizing brewers to file the
Brewer's Report of Operations on a quarterly basis; and authorizing many
brewers to take inventories quarterly rather than monthly. The rule will
also propose minimum production standards for beer thereby reducing formula
filings and a revised statement of net contents requirement for certain
container sizes.

SUMMARY OF THE LEGAL BASIS:
ATF has undertaken this review of brewery regulations as part of the
President's Regulatory Initiative. These regulations are issued under the
general authority of the Secretary of the Treasury to promulgate regulations
to implement the Internal Revenue Code and the Federal Alcohol
Administration Act.

ALTERNATIVES: Not
applicable. ATF believes that industry will support these
regulatory changes because they will streamline regulatory
requirements applying to the brewing industry.

ANTICIPATED COSTS AND
BENEFITS:
The proposed regulations will benefit the brewing industry by
reducing required inventories, notices, and other submissions to ATF.

RISKS: Not applicable.

Timetable:

ACTION DATE FR CITE

NPRM............................................12/00/98
Interim Final
Rule...............................12/00/99

REGULATORY FLEXIBILITY
ANALYSIS REQUIRED:
Yes

SMALL ENTITIES AFFECTED:
Businesses

GOVERNMENT LEVELS
AFFECTED:
None

SUBJECT CODES: ALCOHOL

PROCUREMENT: No

AGENCY CONTACT: Charles
N. Bacon, Coordinator,
Department of the Treasury,

Bureau of Alcohol, Tobacco and Firearms,
650 Massachusetts Avenue NW.,
Washington, DC 20226,
202 927-8230,
202 927-8602 (FAX),
cnbacon@atf.gov
(EMAIL)

TITLE: Distilled Spirits
Plant Regulatory Initiative Proposal

RIN: 1512-AB58
(PROPOSED)

REGULATORY PLAN: No

PRIORITY: Substantive,
Nonsignificant

UNFUNDED MANDATES: No

MAJOR: No

REINVENTING GOVERNMENT:
This rulemaking is part of the Reinventing Government effort. It will
revise text in the CFR to reduce burden or duplication, or streamline
requirements.

LEGAL AUTHORITY: 26 USC
7805

CFR CITATION: 27 CFR
19.11; 27 CFR 19.49; 27 CFR 19.153; 27 CFR 19.201 to 206; 27 CFR 19.311; 27
CFR 19.454; 27 CFR 19.605; 27 CFR 19.770; 27 CFR 19.1001; 27 CFR 19.1003; 27
CFR 19.1010

LEGAL DEADLINE: None

ABSTRACT: ATF is
proposing changes to the distilled spirits plant regulations to implement
the Administration's Reinventing Government effort to reduce the regulatory
burden and streamline requirements. ATF believes these proposed changes will
benefit distilled spirits plant proprietors and other industry members by
enabling them to operate more easily and with less regulatory oversight from
the Government. ATF is also requesting comments on the possibility of
revising the distilled spirits plant recordkeeping requirements to
accomplish the Government's goals through a system that would be based, as
much as possible, on proprietors' own recordkeeping methods.

Timetable:

ACTION DATE FR CITE

NPRM..............................................11/00/98

REGULATORY FLEXIBILITY
ANALYSIS REQUIRED:
Yes

SMALL ENTITIES AFFECTED:
Businesses

GOVERNMENT LEVELS
AFFECTED:
None

SUBJECT CODES: ALCOHOL

PROCUREMENT: No

AGENCY CONTACT: Steve
Simon, Specialist,
Department of the Treasury,
Bureau of Alcohol, Tobacco and Firearms,
650 Massachusetts Avenue NW.,
Washington, DC 20226,
202 927-8210,
202 927-8602 (FAX)

TITLE: Implementation of
Public Law 105-34, Section 1416 Relating to
Refund
of Tax for Domestic Wine Returned to Bond Regardless of
Merchantability - (Taxpayer Relief Act of 1997)

RIN: 1512-AB74
(PROPOSED)

REGULATORY PLAN: No

PRIORITY: Substantive,
Nonsignificant

UNFUNDED MANDATES: No

MAJOR: No

REINVENTING GOVERNMENT:
This rulemaking is not part of the Reinventing Government effort.

LEGAL AUTHORITY: 26 USC
5044; 26 USC 5361; 26 USC 5367; 26 USC 5371

CFR CITATION: 27 CFR
24.66; 27 CFR 24.295; 27 CFR 24.312

LEGAL DEADLINE: None

ABSTRACT: ATF is issuing
three changes to the wine regulations as a result of the enactment of the
Taxpayer Relief Act of 1997. This amendment informs interested parties of a
change by the act that provides for a refund of the tax for all domestic
wine returned to bond, rather than, exclusively for un-merchantable wine
returned to bond.

Timetable:

ACTION DATE FR CITE

NPRM.............................................04/00/99

REGULATORY FLEXIBILITY
ANALYSIS REQUIRED:
No

SMALL ENTITIES AFFECTED:
No

GOVERNMENT LEVELS
AFFECTED:
None

SUBJECT CODES: ALCOHOL

PROCUREMENT: No

AGENCY CONTACT: Mary A.
Wood, ATF Specialist,
Department of the Treasury,

Bureau of Alcohol, Tobacco and Firearms,
650 Massachusetts Avenue NW.,
Washingtonc DC 20226,
202 927-8185,
202 927-8602 (FAX)

TITLE: Implementation of
Public Law 105-34, Sections 1421 and 1422

RIN: 1512-AB75
(PROPOSED)

REGULATORY PLAN: No

PRIORITY: Substantive,
Nonsignificant

UNFUNDED MANDATES: No

MAJOR: No

REINVENTING GOVERNMENT:
This rulemaking is not part of the Reinventing Government effort.

LEGAL AUTHORITY: 26 USC
7805

CFR CITATION: 27 CFR 24;
27 CFR 25; 27 CFR 250; 27 CFR 251

LEGAL DEADLINE: None

ABSTRACT: This notice
implements section 1421 and 1422 of the Taxpayer
Relief Act of 1997. This will permit importation in bond of bulk
containers of wine and beer.

TIMETABLE:

ACTION DATE FR CITE

NPRM.............................................11/00/98

REGULATORY FLEXIBILITY
ANALYSIS REQUIRED:
No

SMALL ENTITIES AFFECTED:
No

GOVERNMENT LEVELS
AFFECTED:
None

SUBJECT CODES: ALCOHOL

PROCUREMENT: No

AGENCY CONTACT: Marjorie
Ruhf, Specialist,
Department of the Treasury,
Bureau of Alcohol, Tobacco and Firearms,
650 Massachusetts Avenue NW.,
Washington, DC 20226,
202 927-8202,
202 927-8602 (FAX),

mdruhf@atf.gov
(EMAIL)

TITLE: Commerce in
Explosives (Including Explosives in the Fireworks
Industry)

RIN: 1512-AB48
(PROPOSED)

REGULATORY PLAN: Yes

PRIORITY: Other
Significant

UNFUNDED MANDATES: No

MAJOR: No

REINVENTING GOVERNMENT:
This rulemaking is not part of the Reinventing Government effort.

LEGAL AUTHORITY: 5 USC
552(a); 18 USC 847; 18 USC 921 to 930; 18 USC 1261; 19 USC 1612 to 1613; 19
USC 1618; 26 USC 7101; 26 USC 7322 to 7326; 31 USC 9301; 31 USC 9303 to
9304; 40 USC 304(k)

CFR CITATION: 27 CFR 55

LEGAL DEADLINE: None

ABSTRACT: Pursuant to
section 610 of the Regulatory Flexibility Act, ATF
published a notice on January 10, 1997 seeking public comments on
whether it should revise its regulations codified at 27 CFR part 55,
governing Commerce in Explosives (Including Explosives in the Fireworks
Industry). Based on comments received, ATF plans to initiate a rulemaking to
revise these regulations in 1998.

STATEMENT OF NEED: This
notice of proposed rulemaking will address many of the issues in part 55 -
Commerce in Explosives, especially the issues in requirements for
explosives, including fireworks explosive materials. Pursuant to the
periodic review requirements of the Regulatory Flexibility Act (5 U.S.C.
610), ATF published on January 10, 1997 a General Notice initiating the
review of a final rule published in 1990 concerning the storage of fireworks
explosives materials. The 1990 rule, which was issued as a result of the
number and severity of explosions occurring on the premises of special
fireworks plants, amended certain regulations codified at 27 CFR part 55,
generally concerning the recordkeeping and storage of fireworks explosive
materials. The regulations also codified two fireworks related rulings
issued in
1979 and 1985, and the provisions of Pub.
L. 99-308 relating to black powder. As a result of the public comments
received in response to the General Notice and further study of this issue,
ATF will issue a notice of proposed rulemaking covering this and related
commerce and storage of explosives issues.

SUMMARY OF THE LEGAL BASIS:
Section 847 of title 18, United States Code, grants the Secretary of the
Treasury broad discretion to promulgate regulations necessary for the
importation, manufacture, distribution and safe storage of explosives
materials. Section 846 of title 18, United States Code, authorizes the
Secretary to prescribe precautionary measures to prevent the recurrence of
accidental explosions in which explosive materials were involved. The
General Notice and upcoming notice of proposed rulemaking are also being
issued pursuant to section 610 of the Regulatory Flexibility Act (5 U.S.C.
610), which requires an agency to review within ten years of publication
rules for which an agency prepared a final regulatory flexibility analysis
addressing the impact of the rule on small businesses or other small
entities.

ALTERNATIVES:
Alternatives will be examined in the context of public comments
to the notice of proposed rulemaking.

ANTICIPATED COSTS AND
BENEFITS:
Unknown at this time.

RISKS: Not applicable.

Timetable:

ACTION DATE FR CITE

General Notice of Regulatory
Review...............01/10/97 62 FR 1386
NPRM............................................12/00/98

REGULATORY FLEXIBILITY
ANALYSIS REQUIRED:
Yes

SMALL ENTITIES AFFECTED:
Businesses

GOVERNMENT LEVELS
AFFECTED:
None

SUBJECT CODES: FIREARMS

PROCUREMENT: No

AGENCY CONTACT: James
Ficaretta, Specialist,
Department of the Treasury,

Bureau of Alcohol, Tobacco and Firearms,
650 Massachusetts Avenue NW.,
Washington, DC 20226,
202 927-8310,
202 927-7488 (FAX)

TITLE: Implementation of
Public Law 104-208, the Omnibus Consolidated


Appropriations
Act of 1997, Relating to the Establishment of a National Repository for
Arson and Explosives Information

RIN: 1512-AB73
(PROPOSED)

REGULATORY PLAN: No

PRIORITY: Substantive,
Nonsignificant

UNFUNDED MANDATES: No

MAJOR: No

REINVENTING GOVERNMENT:
This rulemaking is not part of the Reinventing Government effort.

LEGAL AUTHORITY: 18 USC 846(b)

CFR CITATION: 27 CFR 55

LEGAL DEADLINE: None

ABSTRACT: ATF is
issuing this temporary rule to implement certain provisions of Public
Law 104-208, the Omnibus Consolidated Appropriations Act of 1997 (the
Act), enacted September 30, 1996. The Act amended the Federal explosives
laws in title 18, United States Code, chapter 40, to require all Federal
agencies to report to ATF any information involving arson or the
suspected criminal misuse of explosives. The Act also authorizes ATF to
establish a repository for this information. In addition, the law
provides that such repository will contain information on incidents
voluntarily reported to ATF by State and local authorities.

Timetable:

ACTION DATE FR CITE

NPRM.............................................02/00/99

REGULATORY FLEXIBILITY
ANALYSIS REQUIRED:
No

SMALL ENTITIES AFFECTED:
No

GOVERNMENT LEVELS AFFECTED:
None

SUBJECT CODES: FIREARMS

PROCUREMENT: No

AGENCY CONTACT: James
Ficaretta, Program Manager,
Department of the
Treasury,
Bureau of Alcohol, Tobacco and Firearms,

650 Massachusetts Avenue NW.,
Washington, DC 20226,
202 927-8230,
202 927-8602 (FAX)

Final Rule Stage

TITLE: Procedures for
Revoking Previously Approved Certificates of Label
Approval, Exemptions From Label Approval, or Distinctive Liquor Bottle
Approvals

RIN: 1512-AB34 (FINAL)

REGULATORY PLAN: No

PRIORITY: Substantive, Nonsignificant

UNFUNDED MANDATES: No

MAJOR: No

REINVENTING GOVERNMENT:
This rulemaking is not part of the Reinventing Government effort.

LEGAL AUTHORITY: 27 USC
205; 26 USC 5301; 26 USC 7805

CFR CITATION: 27 CFR
4.40; 27 CFR 4.50; 27 CFR 5.56; 27 CFR 5.51; 27 CFR 5.55; 27 CFR 7.31;
27 CFR 7.41; 27 CFR 13 (New); 27 CFR 19.633; 27 CFR 19.641

LEGAL DEADLINE: None

ABSTRACT: This
notice of proposed rulemaking proposes to establish regulatory
procedures to revoke previously approved certificates of label approval,
exemptions from label approval, or distinctive liquor bottle approvals.
These revocation procedures are necessary where label approvals, etc.,
have been made in error.

Adoption of these procedures will allow ATF to
revoke, in an orderly and efficient manner, label approvals, exemptions
from label approval, or distinctive liquor bottle approvals which have
been made in error and will provide for appeals by industry members.

Timetable:

ACTION DATE FR CITE

NPRM..............................................09/13/95
60 FR 47506
NPRM Comment Period
End..............12/12/95
Reopening of
Comment Period...............01/22/96 61 FR 1545
Reopening of Comment Period End........02/21/96
Final
Action....................................12/00/98

REGULATORY FLEXIBILITY
ANALYSIS REQUIRED:
No

GOVERNMENT LEVELS
AFFECTED:
None

SUBJECT CODES: ALCOHOL

PROCUREMENT: No

AGENCY CONTACT: Marj
Ruhf, Coordinator,
Department of the Treasury,
Bureau of Alcohol, Tobacco and Firearms,
650 Massachusetts Avenue NW.,
Washington DC 20226,
202 927-8230,
202 927-8602 (FAX)

TITLE: Labeling of
Unaged Grape Brandy

RIN: 1512-AB46 (FINAL)

REGULATORY PLAN: No

PRIORITY: Substantive,
Nonsignificant

UNFUNDED MANDATES: No

MAJOR: No

REINVENTING GOVERNMENT:
This rulemaking is part of the Reinventing Government effort. It
will revise text in the CFR to reduce burden or duplication,
or streamline requirements.

LEGAL AUTHORITY: 27 USC
205

CFR CITATION: 27 CFR 5

LEGAL DEADLINE: None

ABSTRACT: ATF is
proposing to amend the regulations to permit the use of the word
"unaged" as an alternative to "immature," to
describe grape brandy which has not been stored in oak containers.

Timetable:

ACTION DATE FR CITE

NPRM..............................................06/13/96 61
FR 30015
NPRM Comment Period
End..............09/11/96
Final
Action.....................................11/00/98

REGULATORY FLEXIBILITY
ANALYSIS REQUIRED:
Undetermined

GOVERNMENT LEVELS
AFFECTED:
None

SUBJECT CODES: ALCOHOL

PROCUREMENT: No

AGENCY CONTACT: James
Ficaretta, Coordinator,
Department of the Treasury,

Bureau of Alcohol, Tobacco and Firearms,
650 Massachusetts Avenue NW.,
Washington, DC 20226,
202 927-8230,
202 927-8602 (FAX)

TITLE: Formulas for
Denatured Alcohol and Rum

RIN: 1512-AB60 (FINAL)

REGULATORY PLAN: No

PRIORITY: Substantive,
Nonsignificant

UNFUNDED MANDATES: No

MAJOR: No

REINVENTING GOVERNMENT:
This rulemaking is part of the Reinventing Government effort. It
will revise text in the CFR to reduce burden or duplication,
or streamline requirements.

LEGAL AUTHORITY: 5 USC
552(a); 26 USC 5242; 26 USC 7805

CFR CITATION: 27 CFR 21.3; 27 CFR 21.6; 27
CFR 21.11; 27 CFR 21.21; 27 CFR 21.31 to 21.34; 27 CFR 21.56; 27 CFR 21.65;
27 CFR 21.76; 27 CFR 21.91; 27 CFR 21.95 to 21.97

LEGAL DEADLINE: None

ABSTRACT: This
document proposes to amend part 21 to incorporate denaturants that have
been approved pursuant to applications but not yet published in this
part, as well as to clarify the regulations where necessary.
Additionally, this document proposes to make a minor technical
correction.

Timetable:

ACTION DATE FR CITE

NPRM..............................................07/31/96
61 FR 39929
NPRM Comment Period
End..................09/30/96
Final
Action....................................11/00/98

REGULATORY FLEXIBILITY
ANALYSIS REQUIRED:
No

GOVERNMENT LEVELS
AFFECTED:
None

SUBJECT CODES: ALCOHOL

PROCUREMENT: No

AGENCY CONTACT: Mary
Wood, Specialist,
Department of the Treasury,
Bureau of Alcohol, Tobacco and Firearms,
650 Massachusetts Avenue NW.,
Washington, DC 20226,
202 927-8185,
202 927-8602 (FAX)

TITLE: Implementation of
Wine Credit Provisions of Public Law 104-188

RIN: 1512-AB65 (FINAL)

REGULATORY PLAN: No

PRIORITY: Substantive,
Nonsignificant

UNFUNDED MANDATES: No

MAJOR: No

REINVENTING GOVERNMENT:
This rulemaking is not part of the Reinventing Government effort.

LEGAL AUTHORITY: 5 USC
552(a); 26 USC 5041

CFR CITATION: 27 CFR
24.278; 27 CFR 24.279

LEGAL DEADLINE: None

ABSTRACT:
ATF is amending wine regulations to implement a law
change which
allows certain transferees in bond to
deduct small wine producers
tax credit. Changes to
bond calculation are also included in this
regulation.

TIMETABLE:

ACTION DATE FR CITE

NPRM.............................................06/02/97
62 FR 29681
Interim Final
Rule...............................06/02/97 62 FR 29663
NPRM Comment Period End.................08/01/97
Final
Action....................................03/00/99

REGULATORY FLEXIBILITY
ANALYSIS REQUIRED:
No

GOVERNMENT LEVELS
AFFECTED:
None

SUBJECT CODES: ALCOHOL

PROCUREMENT: No

AGENCY CONTACT: Marjorie
Ruhf, Specialist,
Department of the Treasury,
Bureau of Alcohol, Tobacco and Firearms,
650 Massachusetts Avenue NW.,
Washington, DC 20226,
202 927-8230,
202 927-8602 (FAX)

TITLE: Net Contents
Statement on Wine Labels

RIN: 1512-AB70 (FINAL)

REGULATORY PLAN: No

PRIORITY: Substantive,
Nonsignificant

UNFUNDED MANDATES: No

MAJOR: No

REINVENTING GOVERNMENT:
This rulemaking is part of the Reinventing Government effort. It
will revise text in the CFR to reduce burden or duplication,
or streamline requirements.

LEGAL AUTHORITY: 27 USC
205(e)

CFR CITATION: 27 CFR 4

LEGAL DEADLINE: None

ABSTRACT: Based on a
petition it has received, the Bureau of Alcohol, Tobacco and Firearms (ATF)
is proposing to amend the regulations to provide that the net contents
statement for wine in containers of less than 1 liter may be expressed on
the label in centiliters (cl) as an alternative to milliliters (ml).

Timetable:

ACTION DATE FR CITE

NPRM.............................................05/15/98
63 FR 27017
NPRM Comment Period
End.................08/13/98
Final
Action....................................11/00/98

REGULATORY FLEXIBILITY
ANALYSIS REQUIRED:
No

GOVERNMENT LEVELS
AFFECTED:
None

SUBJECT CODES: ALCOHOL

PROCUREMENT: No

AGENCY CONTACT: James
Ficaretta, Coordinator,
Department of the Treasury,

Bureau of Alcohol, Tobacco and Firearms,
650 Massachusetts Avenue NW.,
Washington, DC 20226,
301 927-8230,
202 927-8602 (FAX)

TITLE: Commerce in
Explosives

RIN: 1512-AB55 (FINAL)

REGULATORY PLAN: No

PRIORITY: Substantive,
Nonsignificant

UNFUNDED MANDATES: No

MAJOR: No

REINVENTING GOVERNMENT:
This rulemaking is part of the Reinventing Government effort. It
will revise text in the CFR to reduce burden or duplication,
or streamline requirements.

LEGAL AUTHORITY: 18 USC
842; 18 USC 846; 18 USC 847

CFR CITATION: 27 CFR 55

LEGAL DEADLINE: None

ABSTRACT: The Bureau of
Alcohol, Tobacco and Firearms proposes to amend the
regulations in 27 CFR part 55 to: (1) require the explosives industry
to notify the chief law enforcement officer and fire marshal of sites where
explosives are stored; (2) increase license and permit fees; (3) eliminate
the manufacturer limited license; (4) amend the definitions of
"fireworks", "fireworks nonprocess building",
"highway", etc.; and (5) amend the American table of distances to
conform with the explosive industry's latest revisions.

Timetable:

ACTION DATE FR CITE

NPRM..............................................10/15/96
61 FR 53688
NPRM Comment Period
End..................01/13/97
Final
Action....................................11/00/98

REGULATORY FLEXIBILITY
ANALYSIS REQUIRED:
Yes

SMALL ENTITIES AFFECTED:
Businesses

GOVERNMENT LEVELS
AFFECTED:
None

SUBJECT CODES:
EXPLOSIVES

PROCUREMENT: No

AGENCY CONTACT: Mark
Waller, Specialist,
Department of the Treasury,
Bureau of Alcohol, Tobacco and Firearms,
650 Massachusetts Avenue NW.,
Washington, DC 20226,
202 927-8310,
202 927-7488 (FAX)

TITLE:
Implementation of Public Law 104-132, the Antiterrorism and
Effective Death Penalty Act of 1996, Relating to the Marking of Plastic
Explosives for the Purpose of Detection

RIN: 1512-AB63 (FINAL)

REGULATORY PLAN: No

PRIORITY: Other
Significant

UNFUNDED MANDATES: No

MAJOR: No

REINVENTING GOVERNMENT:
This rulemaking is not part of the Reinventing Government effort.

LEGAL AUTHORITY: 18 USC
847; 22 USC 2778

CFR CITATION: 27 CFR 47;
27 CFR 55

LEGAL DEADLINE:
Other, Statutory, April 24, 1997. Provisions of the law will become
effective 4/24/97.

ABSTRACT: This temporary
rule implements certain provisions of the
Antiterrorism and Effective Death Penalty Act of 1996 (Public law
104-132). These regulations implement the law by
requiring
detection agents for plastic explosives.
The temporary rule also
authorizes the use of four
specific detection agents to mark
plastic
explosives and provides for the designation of other
detection agents.

Timetable:

ACTION DATE FR CITE

NPRM..............................................02/25/97
62 FR 8412
Interim Final
Rule...............................02/25/97 62 FR 8374
NPRM Comment Period End..............05/27/97
62 FR 8374
Final
Action....................................12/00/98

REGULATORY FLEXIBILITY
ANALYSIS REQUIRED:
No

GOVERNMENT LEVELS
AFFECTED:
None

SUBJECT CODES:
EXPLOSIVES

PROCUREMENT: No

AGENCY CONTACT: James
Ficaretta, Coordinator,
Department of the Treasury,

Bureau of Alcohol, Tobacco and Firearms,
650 Massachusetts Avenue NW.,
Washington, DC 20226,
202 927-8230,
202 927-8602 (FAX)

TITLE: Firearms and
Ammunition Excise Taxes

RIN: 1512-AB33 (FINAL)

REGULATORY PLAN: No

PRIORITY: Substantive,
Nonsignificant

UNFUNDED MANDATES: No

MAJOR: No

REINVENTING GOVERNMENT:
This rulemaking is not part of the Reinventing Government effort.

LEGAL AUTHORITY: 26 USC
4181

CFR CITATION: 27 CFR 53

LEGAL DEADLINE: None

ABSTRACT:
Regulations will simplify the deposit rules for firearms and
ammunition manufacturers excise taxes by revising the method for making
deposits of these taxes.

Timetable:

ACTION DATE FR CITE

NPRM.............................................06/28/95
60 FR 33664
Interim Final
Rule...............................06/28/95 60 FR 33665
NPRM Comment Period End..............09/26/95

Final
Action....................................11/00/98

REGULATORY FLEXIBILITY
ANALYSIS REQUIRED:
No

GOVERNMENT LEVELS
AFFECTED:
None

SUBJECT CODES: FIREARMS

PROCUREMENT: No

AGENCY CONTACT:
Marsha Baker,
Specialist,
Department of the Treasury,
Bureau of Alcohol, Tobacco and Firearms,
650
Massachusetts Avenue NW.,
Washington, DC 20226,
202 927-8210,
202 927-8602
(FAX)

TITLE: Firearms and
Ammunition Excise Taxes Parts and Accessories

RIN: 1512-AB49 (FINAL)

REGULATORY PLAN: No

PRIORITY: Substantive,
Nonsignificant

UNFUNDED MANDATES: No

MAJOR: No

REINVENTING GOVERNMENT:
This rulemaking is part of the Reinventing Government effort. It
will revise text in the CFR to reduce burden or duplication,
or streamline requirements.

LEGAL AUTHORITY: 26 USC
4181

CFR CITATION: 27 CFR
53.61(b)

LEGAL DEADLINE: None

ABSTRACT: This notice
proposes regulations to clarify which parts and
accessories must be included in the sale price when calculating the
tax on firearms. More precise definitions should help taxpayers accurately
compute their taxes and avoid underpayments, penalties and interest.

Timetable:

ACTION DATE FR CITE

NPRM.............................................08/29/96
61 FR 45377
NPRM Comment Period
End.................11/27/96
Final
Action....................................11/00/98

REGULATORY FLEXIBILITY
ANALYSIS REQUIRED:
No

GOVERNMENT LEVELS
AFFECTED:
None

SUBJECT CODES: FIREARMS

PROCUREMENT: No

AGENCY CONTACT: Marsha
Baker, Specialist,
Department of the Treasury,
Bureau of Alcohol, Tobacco and Firearms,
650 Massachusetts Avenue NW.,
Washington, DC 20226,
202 927-8210,
202 927-8602 (FAX)

TITLE: Commerce in
Firearms and Ammunition (Omnibus Consolidated
Appropriations Act of 1997)

RIN: 1512-AB64 (FINAL)

REGULATORY PLAN: No

PRIORITY: Substantive,
Nonsignificant

UNFUNDED MANDATES: No

MAJOR: No

REINVENTING GOVERNMENT:
This rulemaking is not part of the Reinventing Government effort.

LEGAL AUTHORITY: 18 USC
847; 18 USC 921 to 930

CFR CITATION: 27 CFR 178

LEGAL DEADLINE: None

ABSTRACT: The Omnibus
Consolidated Appropriations Act of 1997 contains
amendments to the Gun Control Act of 1986 (18 U.S.C. chapter 44).
These amendments add to the category of "prohibited persons"
anyone convicted of a "misdemeanor crime of domestic violence".
The amendments require individuals acquiring handguns from Federal firearms
licenses to certify (in accordance with the Brady Law) that they have not
been convicted of such a crime. The amendments also provide for sales
between Federal firearms licensees of curio and relic firearms away from
their licensed premises.

Timetable:

ACTION DATE FR CITE

NPRM.............................................06/30/98
63 FR 35551
Interim Final
Rule...............................06/30/98 63 FR 35520
NPRM Comment Period End.................09/28/98
Final
Action....................................11/00/98

REGULATORY FLEXIBILITY
ANALYSIS REQUIRED:
No

GOVERNMENT LEVELS
AFFECTED:
None

SUBJECT CODES: FIREARMS

PROCUREMENT: No

AGENCY CONTACT: Barry
Fields, Specialist,
Department of the Treasury,
Bureau of Alcohol, Tobacco and Firearms,
650 Massachusetts Avenue NW.,
Washington, DC 20226,
202 927-8230,
202 927-8602 (FAX)

TITLE: Residency
Requirement for Persons Acquiring Firearms

RIN: 1512-AB66 (FINAL)

REGULATORY PLAN: No

PRIORITY: Other
Significant

UNFUNDED MANDATES: No

MAJOR: No

REINVENTING GOVERNMENT:
This rulemaking is not part of the Reinventing Government effort.

LEGAL AUTHORITY: 5
USC 552(a); 18 USC 847; 18 USC 921 to 930; 44 USC 3504(h)

CFR CITATION: 27 CFR 178

LEGAL DEADLINE: None

ABSTRACT: The temporary
rule amends the regulations to provide for a firearms purchaser's
affirmative statement of his or her State of residence on ATF Form 4473
(Firearms Transaction Record) and ATF Form 5300.35 (Statement of Intent to
Obtain a Handgun) in acquiring a firearm from a Federal firearms licensee.
The temporary rule also amends the regulations to require that aliens
purchasing a firearm provide proof of residency through the use of
substantiating documentation, such as utility bills or a lease agreement.

In addition, the regulations are being amended to
require that licensees examine a photo identification document from aliens
purchasing firearms. These regulations implement President Clinton's March
5, 1997, announcement of firearms initiatives intended to protect the
American public from gun violence.

Timetable:

ACTION DATE FR CITE

NPRM..........................................04/21/97
62 FR 19446
Interim Final
Rule................................04/21/97 62 FR 19442
NPRM Comment Period End..............07/21/97
Final Action.....................................11/00/98

REGULATORY FLEXIBILITY
ANALYSIS REQUIRED:
No

GOVERNMENT LEVELS
AFFECTED:
None

SUBJECT CODES: FIREARMS

PROCUREMENT: No

AGENCY CONTACT: James
Ficaretta, Coordinator,
Department of the Treasury,

Bureau of Alcohol, Tobacco and Firearms,
650 Massachusetts Avenue,
Washington, DC 20226,
202 927-8230,
202 927-8602 (FAX)

TITLE: Brady Bill
Regulations--Permanent Provision

RIN: 1512-AB67 (FINAL)

REGULATORY PLAN: No

PRIORITY: Other
Significant

UNFUNDED MANDATES:
Undetermined

MAJOR: No

REINVENTING GOVERNMENT:
This rulemaking is not part of the Reinventing Government effort.

LEGAL AUTHORITY: 5
USC 552(a); 18 USC 847; 18 USC 921 to 930; 44 USC 3504(h)

CFR CITATION: 27 CFR 178

LEGAL DEADLINE: None

ABSTRACT: This proposed
rule implements the provisions of Public Law 103-159, relating to the
permanent instant background check provision of the Brady Handgun Violence
Prevention Act. The proposed regulations implement the law by requiring a
licensed firearms importer, manufacturer, or dealer to contact the national
instant criminal background check system (NICS) before transferring any
firearm to a nonlicensed individual.

Timetable:

ACTION DATE FR CITE

NPRM..............................................02/19/98
63 FR 8379
NPRM Comment Period
End..................05/20/98
Final
Action.....................................11/00/98

REGULATORY FLEXIBILITY
ANALYSIS REQUIRED:
No

GOVERNMENT LEVELS
AFFECTED:
Undetermined

SUBJECT CODES: FIREARMS

PROCUREMENT: No

AGENCY CONTACT: James
Ficaretta, Coordinator,
Department of the Treasury,

Bureau of Alcohol, Tobacco and Firearms,
650 Massachusetts Avenue NW.,
Washington, DC 20226,
202 927-8230,
202 927-8602 (FAX)

TITLE: Posting of Signs
and Written Notifications to Purchasers of
Handguns

RIN: 1512-AB68 (FINAL)

REGULATORY PLAN: No

PRIORITY: Substantive,
Nonsignificant

UNFUNDED MANDATES: No

MAJOR: No

REINVENTING GOVERNMENT:
This rulemaking is not part of the Reinventing Government effort.

LEGAL AUTHORITY: 5
USC 522(a); 18 USC 847; 18 USC 921 to 930; 44 USC 3504(h)

CFR CITATION: 27 CFR 178

LEGAL DEADLINE: None

ABSTRACT: The Bureau of
Alcohol, Tobacco and Firearms is proposing to amend
the regulations to require that signs be posted on the premises of
Federal firearms licensees and that written notifications be issued with
each handgun sold advising of the Youth Handgun Safety Act, 18 USC 922(x).

Timetable:

ACTION DATE FR CITE

NPRM............................................08/27/97
62 FR 45364
NPRM Comment Period
End.................11/25/97
Final
Action....................................11/00/98

REGULATORY FLEXIBILITY
ANALYSIS REQUIRED:
No

GOVERNMENT LEVELS
AFFECTED:
None

SUBJECT CODES: FIREARMS

PROCUREMENT: No

AGENCY CONTACT: Marsha
Baker, Specialist,
Department of the Treasury,
Bureau of Alcohol, Tobacco and Firearms,
650 Massachusetts Avenue NW.,
Washington, DC 20226,
202 927-8230,
202 927-8602 (FAX)

TITLE: Recodification of
Statement of Procedural Rules

RIN: 1512-AB54 (FINAL)

REGULATORY PLAN: No

PRIORITY: Substantive,
Nonsignificant

UNFUNDED MANDATES: No

MAJOR: No

REINVENTING GOVERNMENT:
This rulemaking is part of the Reinventing Government effort. It
will revise text in the CFR to reduce burden or duplication, or
streamline requirements.

LEGAL AUTHORITY: 18
USC 847; 18 USC 926; 26 USC 7805; 27 USC 201 to 219(a)

CFR CITATION: 27 CFR 70

LEGAL DEADLINE: None

ABSTRACT: ATF is
proposing to revise and recodify the statement of
procedural rules for ease of use.

Timetable:

ACTION DATE FR CITE

NPRM.............................................06/13/96
61 FR 30013
NPRM Comment Period
End.................08/12/96
Final
Action....................................06/00/99

REGULATORY FLEXIBILITY
ANALYSIS REQUIRED:
No

GOVERNMENT LEVELS
AFFECTED:
None

SUBJECT CODES:
PROCEDURAL

PROCUREMENT: No

AGENCY CONTACT: Marjorie
Ruhf, Coordinator,
Department of the Treasury,
Bureau of Alcohol, Tobacco and Firearms,
650 Massachusetts Avenue NW.,
Washington, DC 20226,
202 927-8230,
202 927-8602 (FAX)

Long-Term Actions

TITLE: Alcoholic Content
Labeling for Malt Beverages

RIN: 1512-AB17
(LONG-TERM)

REGULATORY PLAN: No

PRIORITY: Substantive,
Nonsignificant

UNFUNDED MANDATES: No

MAJOR: No

REINVENTING GOVERNMENT:

This rulemaking is not part of the Reinventing
Government effort.

LEGAL AUTHORITY: 27 USC
205(e)

CFR CITATION: 27 CFR 7

LEGAL DEADLINE: None

ABSTRACT: A 10/28/92
decision in the U.S. District Court for the District of Colorado held that
the Federal Alcohol Administration Act prohibition against the statement of
alcoholic content on malt beverage labels is unconstitutional under the
First Amendment. ATF issued an interim rule on 4/19/93 which permits the
optional labeling of malt beverages with their alcoholic content. The
Supreme Court heard oral arguments in the appeal of this court decision on
11/30/94. The Supreme Court decided this case on April 19, 1995, in favor of
Coors, and unanimously found the FAA Act prohibition against labeling malt
beverages with their alcohol content unconstitutional. ATF will issue an
NPRM on the subject of malt beverage labeling to request information on
tolerances, type size, placement, and whether such an alcoholic
content labeling requirement should be mandatory.

Timetable:

ACTION DATE FR CITE

NPRM..............................................04/19/93
58 FR 21233
Interim Final
Rule................................04/19/93 58 FR 21228
NPRM Comment Period End.......................07/19/93

NPRM Comment Period Extended..............07/19/93
58 FR 38543
NPRM Comment Period Extended
End.......09/17/93
Next Action Undetermined

REGULATORY FLEXIBILITY
ANALYSIS REQUIRED:
No

GOVERNMENT LEVELS
AFFECTED:
None

SUBJECT CODES: ALCOHOL

PROCUREMENT: No

AGENCY CONTACT: Charles
Bacon, Coordinator,
Department of the Treasury,
Bureau of Alcohol, Tobacco and Firearms,
650 Massachusetts Avenue NW.,
Washington, DC 20226,
202 927-8230,
202 927-8602 (FAX),
cnbacon@atf.gov
(EMAIL)

TITLE: Distribution and
Use of Tax-Free Alcohol

RIN: 1512-AB51
(LONG-TERM)

REGULATORY PLAN: No

PRIORITY: Substantive,
Nonsignificant

UNFUNDED MANDATES: No

MAJOR: No

REINVENTING GOVERNMENT:
This rulemaking is part of the Reinventing Government effort. It
will revise text in the CFR to reduce burden or duplication,
or streamline requirements.

LEGAL AUTHORITY: 26
USC 5001; 26 USC 5121; 26 USC 5142; 26 USC 5143; 26 USC 5146; 26 USC
5206; 26 USC 5214; 26 USC 5271 to 5276; 26 USC 5311; 26 USC 5552

CFR CITATION: 27 CFR
22.21; 27 CFR 22.25 to 22.27; 27 CFR 22.43; 27 CFR 22.59; 27 CFR 22.60;
27 CFR 22.62; 27 CFR 22.63; 27 CFR 22.68; 27 CFR 22.152

LEGAL DEADLINE: None

ABSTRACT: This
proposal is being issued to revise, eliminate, and liberalize certain
regulatory requirements relating to tax-free alcohol. ATF believes that
these proposed revisions will greatly reduce and simplify the
qualification process governing the tax-free alcohol permit application
process.

TIMETABLE:

ACTION DATE FR CITE

NPRM..........................................06/13/96
61 FR 30019
NPRM Comment Period
End...................08/12/96
Next Action
Undetermined

REGULATORY FLEXIBILITY
ANALYSIS REQUIRED:
No

GOVERNMENT LEVELS
AFFECTED:
None

SUBJECT CODES: ALCOHOL

PROCUREMENT: No

AGENCY CONTACT: Mary
Wood, Specialist,
Department of the Treasury,
Bureau of Alcohol, Tobacco and Firearms,
650 Massachusetts Avenue NW.,
Washington, DC 20226,
202 927-8185,
202 927-8602 (FAX)

TITLE: Distribution of
Denatured Alcohol and Rum

RIN: 1512-AB57
(LONG-TERM)

REGULATORY PLAN: No

PRIORITY: Substantive,
Nonsignificant

UNFUNDED MANDATES: No

MAJOR: No

REINVENTING GOVERNMENT:
This rulemaking is part of the Reinventing Government effort. It
will eliminate existing text in the CFR.

LEGAL AUTHORITY: 26
USC 5001; 26 USC 5206; 26 USC 5214; 26 USC 5241 to 5252

CFR CITATION: 27 CFR 20

LEGAL DEADLINE: None

ABSTRACT: ATF is
conducting a complete review of all Federal Government regulations relating
to the distribution and use of denatured alcohol and rum. ATF believes that
the regulations can be modernized and simplified since the last major
revision in 1985. ATF is proposing changes to the regulations to simplify
such regulations so as to greatly reduce or eliminate unnecessary regulatory
burden on industry members while continuing to provide adequate protection
of the revenue.

Timetable:

ACTION DATE FR CITE

ANPRM............................................06/13/96
61 FR 30019
ANPRM Comment Period
End................08/12/96
Next Action
Undetermined

REGULATORY FLEXIBILITY
ANALYSIS REQUIRED:
Undetermined

GOVERNMENT LEVELS AFFECTED:
None

SUBJECT CODES: ALCOHOL

PROCUREMENT: No

AGENCY CONTACT: Mary
Wood, Specialist,
Department of the Treasury,
Bureau of Alcohol, Tobacco and Firearms,
650 Massachusetts Avenue NW.,
Washington, DC 20226,
202 927-8185,
202 927-8602 (FAX)

TITLE: Production of
Volatile Fruit Flavored Concentrate

RIN: 1512-AB59
(LONG-TERM)

REGULATORY PLAN: No

PRIORITY: Substantive,
Nonsignificant

UNFUNDED MANDATES: No

MAJOR: No

REINVENTING GOVERNMENT:
This rulemaking is part of the Reinventing Government effort. It
will revise text in the CFR to reduce burden or duplication,
or streamline requirements.

LEGAL AUTHORITY: 26
USC 5001; 26 USC 5172; 26 USC 5178; 26 USC 5179; 26 USC 5203; 26 USC
5511; 26 USC 5552; 26 USC 6065; 26 USC 7805; 44 USC 3504(h)

CFR CITATION:
27 CFR 18.56

LEGAL DEADLINE: None

ABSTRACT: The proposed
amendment would specifically authorize the transfer of volatile fruit-flavor
concentrate (VFFC) unfit for beverage use from one VFFC plant to another for
further processing. The proposed amendment would clarify the regulations in
order to allow greater flexibility in the production processes of VFFC
plants.

Timetable:

ACTION DATE FR CITE

NPRM............................................06/13/96
61 FR 30017
NPRM Comment Period
End.................08/12/96
Next Action
Undetermined

REGULATORY FLEXIBILITY
ANALYSIS REQUIRED:
No

GOVERNMENT LEVELS
AFFECTED:
None

SUBJECT CODES: ALCOHOL

PROCUREMENT: No

AGENCY CONTACT: Mary
Wood, Specialist,
Department of the Treasury,
Bureau of Alcohol, Tobacco and Firearms,
650 Massachusetts Avenue NW.,
Washington, DC 20226,
202 927-8185,
202 927-8602 (FAX)

TITLE: Implementation of
Public Law 105-34, Sections 908, 910 and 1415, Related To Hard Cider,
Semi-generic Wine Designations and Wholesale Liquor Dealer's Signs

RIN: 1512-AB71
(LONG-TERM)

REGULATORY PLAN: No

PRIORITY: Substantive,
Nonsignificant

UNFUNDED MANDATES: No

MAJOR: No

REINVENTING GOVERNMENT:
This rulemaking is not part of the Reinventing Government effort.

LEGAL AUTHORITY: 26 USC
7805

CFR CITATION: 27 CFR 4;
27 CFR 19; 27 CFR 24; 27 CFR 194; 27 CFR 250;
27
CFR 251

LEGAL DEADLINE: None

ABSTRACT: This temporary
rule implements some of the provisions of the Taxpayer Relief Act of 1997.
The new law made changes in the excise tax on hard cider, clarified the
authority to use semi-generic designations on wine labels, and repealed the
requirement for wholesale dealers in liquors to post signs. The wine
regulations are amended to incorporate the new hard cider tax rate and to
recognize the labeling changes relative to the description to hard cider.
These regulations are also amended to incorporate the semi-generic wine
designations, and the liquor dealers' regulations are amended to eliminate
the requirement for posting a sign.

Timetable:

Next Action Undetermined

REGULATORY FLEXIBILITY
ANALYSIS REQUIRED:
No

SMALL ENTITIES AFFECTED:
No

GOVERNMENT LEVELS
AFFECTED:
None

SUBJECT CODES: ALCOHOL

PROCUREMENT: No

AGENCY CONTACT:

Marjorie Ruhf, Specialist,
Department of the Treasury,
Bureau of
Alcohol, Tobacco and Firearms,
650 Massachusetts
Avenue NW.,
Washington, DC 20226,
202 927-8210,
202 927-8602 (FAX),
mdruhf@atf.gov
(EMAIL)

TITLE: Alteration of
Labels on Containers of Distilled Spirits, Wine and Beer

RIN: 1512-AB76
(LONG-TERM)

REGULATORY PLAN: No

PRIORITY: Substantive,
Nonsignificant

UNFUNDED MANDATES: No

MAJOR: No

REINVENTING GOVERNMENT:
This rulemaking is not part of the Reinventing Government effort.

LEGAL AUTHORITY: 26 USC
5301; 26 USC 7805; 27 USC 205

CFR CITATION: 27 CFR 4;
27 CFR 5; 27 CFR 7

LEGAL DEADLINE: None

ABSTRACT:
ATF is proposing to amend the regulations in 27 CFR
parts 4, 5,
and 7. The proposed amendments to the
regulations will require
that a lot identification
code be placed on the label or
container of all
wine, malt beverage and distilled spirits
products.
The lot identification code will be mandatory item of
information and it will be illegal to remove or alter the codes.

Timetable:

ACTION DATE FR CITE

NPRM.............................................11/00/99

REGULATORY FLEXIBILITY
ANALYSIS REQUIRED:
Undetermined

SMALL ENTITIES AFFECTED:
No

GOVERNMENT LEVELS
AFFECTED:
None

SUBJECT CODES: ALCOHOL

PROCUREMENT: No

AGENCY CONTACT: Daniel
Hiland, Specialist,
Department of the Treasury,
Bureau of Alcohol, Tobacco and Firearms,
650 Massachusetts Avenue NW.,
Washington, DC 20226,
202 927-8210,
202 927-8602 (FAX)

TITLE: Exportation
of Tobacco Products and Cigarette Papers and Tubes, Without Payment of
Tax, or With Drawback of Tax

RIN: 1512-AB03
(LONG-TERM)

REGULATORY PLAN: No

PRIORITY: Substantive,
Nonsignificant

UNFUNDED MANDATES: No

MAJOR: No

REINVENTING GOVERNMENT:
This rulemaking is part of the Reinventing Government effort. It
will revise text in the CFR to reduce burden or duplication,
or streamline requirements.

LEGAL AUTHORITY: 26 USC
7805

CFR CITATION: 27 CFR 290

LEGAL DEADLINE: None

ABSTRACT: ATF is
proposing the recodification of 27 CFR part 290 to eliminate obsolete or
unnecessary rules and forms and streamline export processing, while
providing adequate protection for the revenue.

Timetable:

ACTION DATE FR CITE

ANPRM...........................................09/08/92
57 FR 40889
ANPRM Comment Period
End.......................10/08/92
ANPRM Comment
Period Extended...............01/08/93 58 FR 3247
ANPRM Comment Period Extended End........03/09/93
Next Action Undetermined

REGULATORY FLEXIBILITY
ANALYSIS REQUIRED:
No

GOVERNMENT LEVELS
AFFECTED:
None

SUBJECT CODES: TOBACCO
PRODUCTS

PROCUREMENT: No

AGENCY CONTACT: Marjorie
Ruhf, Specialist,
Department of the Treasury,
Bureau of Alcohol, Tobacco and Firearms,
650 Massachusetts Avenue NW.,
Washington, DC 20226,
202 927-8210,
202 927-8602 (FAX)

Completed Actions

TITLE: 27 CFR Part 70 --
Conference and Practice Requirements for the
Bureau
of Alcohol, Tobacco, and Firearms

RIN: 1512-AB11
(COMPLETED)

REGULATORY PLAN: No

PRIORITY: Substantive,
Nonsignificant

UNFUNDED MANDATES: No

MAJOR: No

REINVENTING GOVERNMENT:
This rulemaking is not part of the Reinventing Government effort.

LEGAL AUTHORITY: 26 USC
7805

CFR CITATION: 27 CFR
70.511 to 70.526

LEGAL DEADLINE: None

ABSTRACT: This rule
documents the adoption of certain conference and
practice rules from IRS regulations in 26 CFR part 600 to ATF
regulations in 27 CFR part 70. Currently the conference
and
practice regulations for ATF are still found in
26 CFR part 600
which is administered by IRS. By
this final rule sections 601.521
through 601.525
are adopted in whole and applicable sections of
601.501 through 601.509 are adopted in part and placed in 27 CFR
part 70 which is administered by ATF.

COMPLETED:

REASON DATE FR CITE

Withdrawn - Further Study
Required................05/29/98

REGULATORY FLEXIBILITY
ANALYSIS REQUIRED:
No

GOVERNMENT LEVELS
AFFECTED:
None

SUBJECT CODES:
PROCEDURAL

PROCUREMENT: No

AGENCY CONTACT: Marsha
Baker, Specialist,
Department of the Treasury,
Bureau of Alcohol, Tobacco and Firearms,
650 Massachusetts Avenue NW.,
Washington, DC 20226,
202 927-8220,
202 927-8602 (FAX)