Office of Enforcement Programs and Services (EPS) Eg ZORA 4 TING. YEAR 2020 ANNUAL REPORTTABLE OF CONTENTS Message from Assistant Director Alphonso Hughes ........... 3 Office of Enforcement Programs and Services. coe ceed EPS Organizational Chart veces oo oes sg i 338 Highlights... 0... ..224 B Bs a eam enh Office of Regulatory Affairs (ORA).... ce ceseeeeeeT Firearms and Explosives Industry Division (FEID).....c:csssseecessesees corer Firearms and Ammunition Technology Division (FATD) soonsciassangetes 15 Firearms and Explosives Services Division (FESD) veeees 220 National Firearms Act Division (NPA) sossesssseeesseeesseeesensesestsesste 26 National Tracing Center (NTC)... 202 . 5 seo nt cw 2 Sensitive But Unclassified ~ For ATF Internal Use OnlyMessage from Assistant Director Fiscal Yeur 2020 was a year of challenges and changes for the Office of Enforcement Programs and Services (EPS), sparked primarily by the COVID-19 pandemic. The coronavirus forced us to rethink various procedures, work schedules, locations, and other issues as we continued to honor the Bureau of Aleohol, Tobacco, Firearms and Explosives’ (ATF) mission to proteet the American People, and maximize efforts to protect EPS and other employees during a major health crisis, In that regard, EPS co-chaired the ATF COVID-19 Retum-To-Work (RTW) Task Force and led the effort to develop a gradual and responsible approach that would allow the Bureau to return to full operational status across the country At the same time, EPS remained committed to excellence as we worked with ATF Headquarters and field divisions to develop and deliver policy guidance and technical support; and as we artnered with industry representatives; and state, local, and other federal law enforcement agencies to protect the American people and reduce violent crime. We published rulemakings, notices, rulings and procedures. In addition, we participated in the Department of Justice (DOJ), Regulatory Reform Task Group; co-chaired a working group on Executive Order (EO) 13892; and continued to coordinate with relevant DOS components regarding the application of certain presidential directives in the rulemaking process. We continued to update and develop more interactive and user-friendly features on ATF's eRegulations website (tegulations.atf-goy), including enhanced search capabilities and explosives table calculators. The site provides regulatory information and federal laws regarding firearms, explosives, and contraband cigarettes, including the Arms Export Control Aet, Gun Control Act (GCA), National Firearms Act (NPA), and the Contraband Cigarette Trafficking Act (CCTA). ‘The National Tracing Center processed a record 490,844 trace requests; and added 482 eTrace memoranda of understanding (MOUs) that enabled participating law enforcement agencies to submit electronic trace requests. We supported the firearms industry with firearms classifications and responded to inquiries from the general public regarding firearms laws, regulations, and technology issues: and the explosives industry in efforts to further explosives safety and security and standardize explosives classifications. Representatives provided guidance to firearms and explosives industry members at meetings (virtual and in-person), and presented updates on regulatory issues; statistics regarding explosives thefts; and top compliance violations. td tow Sensitive But Unclassified ~ For ATF Internal Use OnOFFICE OF ENFORCEMENT PROGRAMS AND SERVICES S) The Office of Enforcement Programs and Services (EPS) comprises six divisions that develop and provide program policy guidance and technical support regarding firearms and explosives, and draft regulations that implement laws regarding federal firearms, explosives, and alcohol and tobacco diversion, As such, EPS supports ATF efforts to reduce violent crime, protect the public, and prevent terrorism as follows: + The Office of Regulatory Affairs (ORA) serves as ATF'S point of contact on all matters regarding the creation of and/or changes to ATF regulations and rulings, and serves as the official liaison to the Department of Justice on all rulemaking projects. schnology Division (FATD) is the technical authority regarding the © arms and ammunition under federal law and provides expert technical support to ATF, other federal, state and local law enforcement agencies: the Firearms industry: the U.S. Congress; and the general public. + The Firearms and Ammunition 1 ‘+ The National Firearms Act Division (NFA) is responsible for the administration of the “National Firearms Act, as amended, and regulations issued pursuant to the Act, including tax collection. It maintains the National Firearms Registration and Transfer Record (NFRTR), the central registry of all NFA firearms in the United States. + The Firearms and Explosives Industry Division (FEID) develops policy and provides technical support regarding firearms and explosives to ATF; firearms and explosives regulated industries: the general public: and other federal, state, and local agencies + The Firearms and Explosives Services Division (FESD) administers statutory requirements for licensing, permitting, and fee collection provisions of the Gun Control Act (GCA), NFA, federal explosives laws, and the Arms Export Control Act, + The National Tracing Center Division (NTC), the country’s only erime gun tracing facility, conduets firearms tracing to provide investigative leads for federal, state. local and foreign law enforcement agencies. EPS Leadership: Alphonso J. Hughes Assistant Director Andrew R, Graham Deputy Assistant Director Sonya L. Dyer Chief of Staff itive But Unclassified ~ For ATF Internal Use OnlySensitive But Unclassified ~ For ATF Internal Use OnlyHighlights Co-chaired ATF COVID-19 Return-To-Work (RTW) Task Force and led the effort to develop a gradual and responsible approach that would allow the Bureau to return to full ‘operational status across the country Published two rulemakings, including final rule to correcta previously amended regulation, as well as a final rule to provide rules of practice in explosives license and permit proceedings. Also published two notices and three rulings and procedures, Executed tri-annual updates pursuant to OMB requirements for: ATF Form 10 (5320.10), Application for Registration of Firearms Acquired by Certain Governmental Enuities: ATE Form 2 (5320.2), Notice of Firearms Manufactured or Imported; ATF Form 5630.7, Special Tax Registration and Return National Firearm Act (NFA). Participated in the United Nations Subcommittee of Experts on the Transport of Dangerous Goods; and the Subcommittee of Experts on the Globally Harmonized System of Classification and Labelling of Chemicals, Provided a standardized, cost effective, and consolidated life-cycle service for ATF's firearms and ammunition acquisition, distribution, maintenance, reutilization and destruction functions, Participated in meetings with the FBMJoint Program Office for Countering Incendiary Explosive Devices, and the Department of Homeland Security/ATF Friendship Council Processed record 490,844 trace requests; and added 482 memoranda of understanding (MOUs) that enable participating law enforcement agencies to submit electronic trace requests, Examined 1,716 pieces of evidence in 715 criminal reports. Processed 930 firearm marking variances. Conducted 379 industry evaluations with 520 exhibits. 6 Sensitive But Unclassified Use OnOffice of Regulatory Affairs (ORA) Mission: The Office of Regulatory Affairs (ORA) is responsible for the development and issuance of regulations and rulings regarding firearms, explosives, alcohol, and tobacco that provide guidance to the regulated industries and protect the public. ORA serves as ATFs official point of contact on all matters relating to ereating or amending ATF regulations and rulings; and as the Bureau's official liaison to the Department of Justice (DOJ) and the Office of Management and Budget (OMB), ‘Leadership: Andrew Lange Division Chief ORA Team: In FY 2020, ORA consisted of'a division chief, regulatory attorney, three regulations writers, one program analyst, and one economist. At any given time, ORA had approximately 40-45 projects pending. Italso assisted the Office of Science and ‘Technology regarding the Paperwork Reduction Act and its application to ATF’s collections of information, Accomplishments: eRegulations Website— Worked with contractor to update, maintain, and develop more interactive, user-friendly features on ATP eRegulations website (tegulations.atf.gov). including enhanced search features and explosives table calculators. ‘The site provides regulatory information and federal laws regarding firearms, explosives, and contraband cigarettes, including the Arms Export Control Act, Gun Control Act. National Firearms Act, and the Contraband Cigarette Trafficking Act Rules of Practice in Explosives License and Permit Proceedings Part 771 ~ Drafted and published a final rule to amend regulations governing procedures and practices for disapproval of applications for explosives licenses or permits, and for the denial of renewal or revocation of such explosives licenses or permits under federal explosives laws. Correction to Technical Amendments ~ Drafied and published in the Federal Register final rule making a correction to a technical amendment to 27 CFR Part 478, Seusitive But Unclassified ~ For ATF Internal Use OnlyExplosives Table of Distance - Dratted a final rule to amend regulations to clarity separation of distances requirements for explosive materials, Safe Explosives Act ~ Reviewed comments to and edited final rule implementing the Safe Explosives Act. Residency ~ Drafied, edited, and reviewed comments on a final rule to finalize amendments to the regulations to remove 90-day residency requirement for aliens lawfully in the United States to purchase firearms and to require firearm purchaser's affirmative statement of state of residence. Non-Immigrant Alien ~ Drafted and reviewed comments on final rule implementing the prohibition and exceptions regarding aliens admitted under a non-immigrant visa from possessing or receiving firearms or ammunition Technical Amendments to 27 CFR Parts 447, 478, 479, and 771 ~ Drafted a final rule makin; technical amendments to 27 CFR Parts 447, 478, 479, and 771 to provide clarity and enhance uniformity Secure Gun Storage ~ Drafied a final rule regarding secure gun storage to account for the existing statutory requirement that any person who applies for a firearms dealer license must certify that secure gun storage or safety devices will be available at any place where firearms will be sold to hon-licensed individuals. It also amends the definitions of certain terms, including antique firearm.” PATRIOT Act ~ Drafted a final rule to implement the PATRIOT Act regarding counterfeit cigarettes under the Contraband Cigarette Trafficking Act (CCTA). Annual Reporting of Explosives — Reviewed and edited notice of proposed rulemaking (NPRM) to require the annual reporting of explosives storage to local fire department authorities. Specially Designed “specifically desig Reviewed and edited NPRM to amend the regulations by replacing ed” with “specially designed” in the US Munitions Import List. Form 9 Notification — Draited an NPRM to change the Form 9 from an application prior to export to a notification alier export of an NFA item. Removal of Definition of Frame or Receiver — Drafted an NPRM for the removal of the de! of frame or receiver under the GCA to provide clarity pursuant to recent court decisions. inition Definition of Frame or Receiver ~ Drafting a new definition of frame or receiver to address inconsistencies and apply to new technologies. Cessation of Pilot Project ~ Drafted and published a notice to announee the cessation of the export pilot project Sensitive But Unclassified ~ For ATF Internal Use OnlyAnnual List of Explosive Materials. materials. Drafted and published a notice of the annual list of explosive Electronic Completion of the Form 4473 — Dralied and published a ruling prov instruction for completing the Form 4473 electronically. 1g updated Non-Over-the-Counter Firearm Sales Procedure ~ Dratted and published a procedure providing updated instruction for completing the Form 4473 when conducting non-over-the-counter firearms sales. Facilitating Private Firearm Sales Procedure ~ Dratted and published a procedure providing updated instruction for completing the Form 4473 when a federal firearms licensee (FPL) is facilitating private firearm sales. Electronic Records and Electronic NFA Forms Dratied an ATF ruling to authorize use of electronic records by explosives licensees and permittees along with the use of the cloud for storage of such records. Dralting another ATF ruling to allow for use of electronic NFA forms along with electronic signatures. Storage of Explosives in Law Enforcement Vehicles ~ Drafted and published a ruling allowing for an increase in the amount of explosives that law enforcement may store in vehicles Regulatory Reform Task Force ~ Reviewed, drafted, and edited documents as part of the DOJ Regulatory Reform Task Force, Co-chaired working group on EO 13892. Provided comment on draft executive orders, guidance documents and transparency on civil administrative enforcement and adjudication, Developed list of all active guidance documents. Information Collections ~ Posted 57 agency information collection notices to the ATF Intemet, Daily Broadcast, and ATF Web Portal, and published in the Federal Register regarding comment periods for ATF agency information collections (ie., forms and other recordkeeping requirements) under OMB review in accordance with the Paperwork Reduetion Act of 1995. Other Agency Reviews ~ Reviewed and provided comments on over 48 rulemakis other agencies. prepared by Unified Agenda ~ Provided information on rulemaking projects, including the Statement of Priorities, for spring and fall 2020 Unified Agenda and Regulatory Plan. Trainings and Outreach ~ Provided training on drafting of regulations, the regulatory process, researching topies, and writing, and presented during SES orientation programs and t0 EPS and Chief Counsel. Attended and participated in industry meetings with the Orchid Advisors and Firearms ImporvExport Roundtable (FAIR) conferences, National Shooting Sports Foundation (NSSF), major manufacturers, Lockheed Martin and other defense contractors. Sensitive But Unclassified ~ For ATF Internal Use OnlyFirearms and Explosives Industry Division (FELD) ‘The Firearms and Explosives Industry Division (FEID) develops policy and provides technieal support regarding firearms and explosives to ATF; the firearms and explosives industries: the general public: and federal, state, and local agencies. FEID supports ATF's mission, which is to proteet the public from firearms and explosives crimes: to regulate the lawful commerce in firearms and explosives; and to provide worldwide support to law enforcement, public safety and industry pariners. FEID develops policy regarding the lawful sale of firearms and explosives and provides guidance to ATF field operations for the enforcement and implementation of firearms and explosives regulations and programs. The division also responds to inquiries, issues correspondence, and initiates or contributes to internal and public reports, and prepares special studies on topic pertinent to its mission, FEID encompasses the Explosives Industry Programs Branch (EIPB); and the Programs Branch (FIPB), which handle rulemakings, rulings, variance: determinations, classifications, exemptions, industry outreach, and formal communications with the industries. They are the primary points of contaet for other federal agencies that require assistance regarding firearms and explosives regulatory matters -arms Industry regulatory FEID Chief: Marianna Mitchem EIPB Chief: Annette Butler FIPB Chief: Andrew Perdas 10 Sensitive But Unclassified ~ For ATE hiExplosives Industry Programs Branch (EIPB) The Explosives Industry Programs Branch (EIPB) consists of subject-matter experts who provide technical guidance regarding explosives and the regulations promulgated in Title XI of the Organized Crime Control Act of 1970, as amended by the Safe Explosives Act of 2002 The EIPB is responsible for the following: + Develops and provides gu lance to ATP field operations on the enforcement and implementation of explosives regulations and programs, + Explosives newsletters, publications, rulemaki determinations, rulings, variances, and regulation 3 Serves as liaison to explosives industry and its associations via email, phone, and industry seminars: presents training at industry symposia and workshops, + Serves as primary point of contact for government agencies that require assistance in explosives regulatory matters. © Coordinates with the inclu Explosives Research & Development Division on technical issues ing, research and development, and evaluation and testing of explosive materials. EIPB Statisties: Email/phone inquiries addressed: Variance requests evaluated Determination requests processed: Exemption requests processed: Industry presentations: ‘Trainings conducted: Conferences attende: Meetings with industry members: * Supported Executive Order 13650 on Improving Chemical Facility Safety and Security. Developed and disseminated explosives storage POC information on a biannual basis for State Emergency Response Commissions (SERCs) and Tribal Emergency Response Commissions (TERCs). This included specific data and messaging to ensure that SERCS and TERCs use information properly and have resources to handle any questions. + Supported the Occupational Safety and Health Administration (OSHA) in efforts to further explosives safety and security, and standardize explosives classifications through the Subcommittee of Experts on the Globally Harmonized System of Classification and Labelling of Chemicals (GHS), ul Sensitive But Unclassified ~ For ATF Interual Use OulyConducted various explosives trainings for ATF personnel including: © Advanced Explosives Traini Workgroup; ATE-CES Basie Training (fireworks and pyrotechnics); Defense contractor inspection training tor 1Ol Institute of Makers of Explosives Safety Analysis for Risk (IMESAFR) training for 1Ols. Provided various presentations to industry members that included updates on regulatory issues; directed industry members to ATF resources and provided opportunities for questions and answers. © Presented (pre-COVID) at annual meetings with the Institute of Makers of Explosives (IME) and the Intemational Society of Explosives Engineers (ISEE). © In September 2020, participated in and presented topics of interest during all day, ATP virtual webinar with explosives industries, averaging approximately 200 participants per session, Participated regularly in scheduled meetings and conferences with national working group members of Department of Homeland Security, Environmental Protection Agency, and Occupational Health and Safety Administration, for industry operations investigators (IOs) 000 Participated in meetings with the FBIJoint Program Office for Countering Incendiary Explosive Devices, the OSHA/Globally Harmonized System Interagency, and the DHS/ATF Friendship Council (DHS-Chemical Favility Anti-Terrorism Standards group). Approved 13 new variances allowing the Quantitative Risk Assessment, in lieu of the American Tables of Distane Drafted and/or updated several publications and the ATF Explosives webpage: © ATE Publication 5400.17, (Explosives Magazine Construction Requirements) — newest version (July 2020), posted at hups://\vww.atf goviexplosivesdocs/guide/publication-explosives construetion-requirements-atf=p-5400 | 7/download. © ATE Explosives webpage - huips:/www.atf-gov/explosives © ATF Publication 5400.18 (revised August 2020) ~ Daily Summary of Magazine Transactions (DSMT). © ATF — Explosives Industry Newsletter. (December 2019) = https://www,atf gow/file/143006/download, © ATF Form 5400.5 (Explosives Theft/Loss) changes ~ Completed 60-day comment period in Federal Register. (As of this writing, pending 30-day comment period.) Sensitive But Unclassified ~ For ATF Internal Use OnlyFirearms Industry Programs Branch (FIPB) The Firearms Industry Programs Branch (FIPB) provides program oversight, support, and guidance in areas regarding regulation of the firearms industry, including technical and policy support. FIPB designs, implements and assesses programs and policies that protect the public, reduce violent crimes, and regulate the lawful commerce of firearms, ‘The FIPB does the following: Develops/provides guidance to ATF field operations on the enforcement and implementation of firearms regulations and programs. + Responsible for firearms newsletters, publications, rulemakings, rulings, variances, and regulation determinations. + _Liaises with the firearms industry and its associations via email, phone, industry seminars, training presentations for industry symposia, and workshops. Serves as the primary point of contact for firearms regulatory matters. jovernment agencies requiring assistance in + Coordinates with Firearms and Ammunition Technology Division (FATD) on technical issues including research, evaluation and testing of firearms products. + Coordinates with the NFA Division and Firearms and Explosives Services Division (FESD) regarding firearms regulated under the National Firearms Act, as well as the importation of firearms, FIPB Statistics: Email and telephone inquiries addressed: Variance requests evaluated: Congressional inquiry responses: FOIA responses: Industry presentations: Conferences attended: Meetings with industry members: Sensitive But Unclassified ~ For ATF Internal Use OnlyFirearms Industry Programs Branch Published ATF Form 4473, May 2020 edition, Published ATF Procedure 2020-1, update to non-OTC sales of firearms. Published ATF Procedure 2020-2, FFL Procedures on Private Party Firearms Transfers Published 34° Edition, State Laws and Published Ordinances- posted on ATE website. Released ATF eForm 4473, program to reflect new edition of Form. Worked with OST on the redesign and provided firearms industry with customer support. Conducted firearms training for six Special Agent Basie Training classes via virtual ‘onboarding. Held numerous meetings with nationwide/corporate FFL retailers as they perfected IT capabilities for digital storage of ATF Form 4473. ATP website - provided updates to firearms Q&A, ATF 4473, firearms industry information. Participated in approximately 20 firearm industry meetings during the Janu SHOT show Liaison with ATF field personnel and FBI NI during COVID-19 related delays, Mailed Open Letter rescinding NICS exemption for Michigan's concealed carry permit holders and produced Administrative Record used for the favorable ruling in U.S. District Court Drafied update to ATF R 2016-2, electronic completion of ATF F 4473, Drafted ruling to allow electronic signatures on NFA forms. Drafted ruling to allow for the digital storage of completed ATF Forms 4473. Finalized updates to FFL Quick Reference and Best Practices Guide, ATF P 5300.15 020 NSSF regarding background check procedures Sensitive But Unclassified ~ For ATF Internal Use OulyFirearms & Ammunition Technology Di The Firearms and Ammunition Technology Division (FATD) is the federal technical authority relating to the classification of firearms and ammunition under federal law and by regulation, Vision Statement To remain a world leader in the development of federal technical firearms standards based on knowledge. training, and customer relationships in the field of firearms and ammunition. The FATD's expertise enables ATF to better support law enforcement, law makers, U.S, attorneys, other federal agencies, and the firearms and ammunition industry, as well as the general public. Mission Statement The FATD) s mission is to serve the nation as the technical authority relating to firearms and ammut in and their respective classification under federal law and by regulation. Leadershij Division Chief: Earl Griffith Branch Chief (FTNTB): Vacant Branch Chief (PTCB): Greg Stimmel Branch Chief (FTISB): Michael Curtis Personnel Changes in FY2020 Selected a total of 10 new FEOs, Workload by Type: FOIA: Congressional: Criminal Cases: Criminal Exhibits: Industry Evaluations: Marking Variance: Public Corresponde Sensitive But Unela jed ~ For ATE Internal Use OnlyFATD is staffed with Firearms Enforcement Officers who are trained technical experts in the classification of what constitutes a firearm or ammunition under federal law. The classification phase is critical in prosecuting criminal cases and regulating firearms and ammunition. This includes traditional firearms, unfinished receivers, silencers, 3D printed firearms, privately made firearms, antique weapons, and other NEA items. During FY2020, FATD handled the follow ‘* Evaluated criminal evidence for law enforcement agencies. ‘+ Evaluated requests/submissions for importation of firearms. ‘+ Assisted with the National Integrated Ballistic Identification Network (NIBIN). + Operated the Interstate Nexus Academy ‘© Conducted training for international, federal, state, and local law enforcement, + Provided assistance during rearms and ammunition re-utilization efforts. # Provided determinations for curios and relies. # Provided on-site investigative support during field operations. * Provided marking + Provided expert testimony in federal and state criminal cases. ‘arch warrants. variances to the firearms industry Sensitive But Unclassified ~ For ATF Internal Use OnlyFirearms Technology and Nexus Training Branch (FTNTB) During FY 2020, the Advanced Firearms and Nexus Training Branch (AFNTB) was reorganized into the Firearms Technology and Nexus Training Branch (FTNTB), which will coordinate the training programs previously offered by the AFNTB and work towards the professionalization of | the series for Firearm Enforcement Officers. In FY 2020, the branch sought to have its Nexus program, Federal Law Enforcement Training Accreditation (FLETA), certified. FINTB will continue to promote and develop organizational effectiveness by providing high quality firearms and ammunition educational training programs related to interstate nexus. During FY2020, staf? provided the following services: - Prepared special agents to testify as expert witnesses for the government regarding firearms and ammunition identification and the interstate nexus as an element required for eriminal violations under the Gun Control Act of 1968, = Conducted basic and advanced interstate nexus courses in New England and the Midwest, during regional firearm manufacturing and ammunition manufacturing nexus tours, These sessions exposed interstate nexus agents to manufacturing processes and allowed them to observe firearms and ammunition manufacturing, from raw materials to the finished product. - Redesigned the training program and position descriptions for incoming Firearm Enforcement Officers to promote a consistent, certified curriculum. = Classes offered in FY2020 included: Basic Interstate Nexus, Advanced Interstate Nexus (Ammunition), and Advanced Interstate Nesus (Firearms). Sensitive But Unclassified ~ For ATF Internal Use OnlyFirearms Technology Industry Services Branch (FTISB) The Firearms Technology Industry Services Branch (FTISB) provides industry related technical support to ATF's field operations: chief counsel; congressional affairs; management employees: other federal, state and local law enforcement agencies: the firearms and ammunition industry; and the public. During FY2020, FTISB provided the following services: = Supported the firearms industry with general public regarding firearm laws, r -arms classifications and responded to inquiries from the ulations, and technology issues. - Evaluated and classified industry items submitted under the GCA and NFA; conducted curio and relic (C&R) determinations: evaluated whether items were NFA firearms (including removals from the purview of the NFA): and classified ammunition, ~ Processed all firearm marking variance reque: variances that are shared resources for 101 and maintained recordkeeping systems of pecial agents, and EPS staff. = Contributed to educational outreach opportunities by attending the Importers’ Conference, SHOT Show, National Shooting Sports Foundation events, FAIR Trade Import/Export Conference, Small Arms and Ammunition Manufacturers Institute meetings, and Orchid Firearms ‘Compliance Conterence. Workload by Type: Received 930 requests for marking variances Received 347 public letters, Answered 379 industry evaluations containing 520 exhibits. Sensitive But UFirearms Technology Criminal Branch (FTCB) irearms Technology Criminal Branch (FTCB) examines criminal evidence, makes nis based on the NFA and GCA, assists on search warrants, and provides expert testimony on firearms and ammunition. During FY2020, FTCB provided the following services: - Provided law enforcement support on search warrants, testified as expert witnesses, and oflered technical advice on firearms and ammunition classifications. + Assisted field divisions in their role as subject-matter experts concerning all technical firearm and ammunition issues. Provided guidance and expertise in investigations related to gun violence and firearms trafficking as requested by Field Operations. - Remained up to date regarding emerging firearms and ammunition technologies. = Maintained a 24/7 presence, through the duty officer, for rapid response to law enforcement emergencies. -Provided technical advice to international law enforcement including Interpol, Europol, and others via ATF's International Affairs Division, Workload by Type: Received 715 criminal examinations with 1,716 exhibits Processed 5,081 firearms including prop guns and duty weapons in support of federal law enforcement efforts. Sensitive But Unclassifie al Use OnlyFirearms and Explosives Services Division (FESD) ‘The Firearms and Explosives Services Division (FESD) promotes ATF efforts to reduce violent crime and protect the public by administering the statutory requirements for licensing, permitting, and fee collection as codified in the Gun Control Act, Safe Explosives Act, and Arms Export Control Act. D has three branches: Firearms and Licensing Center (PELC): plosives Imports Branch (FEIB); Federal Explosives \d the Federal Firearms Licensing Center (FFLC), Leadership: Gary Taylor, Division Chief, FESD ‘Tracey Robertson, Chief, FFLC Marla Mason, Assistant Chief, FFLC Max Kingery, Chief, FEIB Marna Howard, Chief, FELC FESD promotes the ATF mission to prevent terrorism, reduce violent erime and protect the publie as follows: * Ensures, through stringent license sereening, that only qualified persons gain access to firearms and explosives. + Ensures that only lawful defense articles are imported into the U.S. from lawful foreign countries for lawful purposes. + Provides industry outreach/customer serviee. * Provides field investigative and intelligence support In FY 2020, FESD collected $6,1M in firearms and explosives licensing fees on behalf’ of the Department of Treasury. Also conducted 165,818 (76,426 ~ FFLC; and 89,392 - FELC) firearms and explosives background checks; and received 1,670 fingerprint card submissions. 20FFL/FEL Licensing Centers & Types of Licenses Federal Firearms Licensing Center (FFLO): ATF's Federal Firearms Licensing Center (PFLC) issues and renews federal firearms licenses (FFLs) in accordance with the Gun Control Act of 1968, The FFLC reviews and acts upon all applications for federal firearms licenses, coordinates the inspection of applicants with appropriate ATF field offices, and performs background checks on all responsible persons. It maintains the Firearms Licensing System (FLS) database: certifies (for the field) license status of subjects; and provides a call center that responds to inquities from the public and the industr The FFLC performs the following functions: * Processes all FFL applications and reviews application data; initiates background investigations (Bls); issues FFL; and forwards FFL applications to the appropriate ATF field office, which coordinates field inspections and provides final approval to issue the FFL * Provides official repository and archive of all firearms license-related documents and ensures that all documents are properly prepared for digital imaging. Maintains audiotapes and CDs of licensee hearings related to adverse actions. Upon request, provides copies of documents and/or audio media regarding administrative hearings, congressional correspondence, and Freedom of Information Act (FOIA) requests, + In support of ATF investigations, provides blue ribbon certifications and direct testimony to verify the license status of defendants and others related to criminal prosecutions or adverse actions, ‘pe OL - Dealer in Firearms other than Destructive Devices, Type 02 - Pawabroker in Firearms other than Destructive Devices Type 03 - Collector of Curios and Relics ‘Type 06 - Manufacturer of Ammunition for Firearms other than Ammunition for Destructive Ammunition ‘Type 07 - Manufacturer of Firearms other than Destructive Devices ‘Type 08 - Importer of Firearms other than Destructive Devices or Ammunition for Firearms “other than Destructive Devices, or Ammunition other than Armor Piercing Ammunition Type 09 - Dealer in Destructive Devices Type 10 - Manufacturer of Destructive Devices, Ammunition for Destructive Devices or Armor Piercing Ammunition ‘Type 11 - Importer of Destructive Devices, Ammunition for Destructive Devices or Armor Piercing Ammunition Sensitive But Unclassified ~ For ATF Internal Use OnlyFederal Firearms Licensees tact Dawa belee broker _Colactsr Ammunition Frewms imperer Dealer Manuscurer importer Tota ee a eee ue ey ease Seer 52807 440 20g see rzess bers sow agi Bass ea ess Bess Saeco ase ames 708 23s eae Tew us 238 Bok Hoe mo ek tte fore ras aust tte) 105 = rss yey 5a 2a sie 110 357 sse081 nese 54196 nase a reset 2 itive But Unclassified ~ For ATF Internal Use OnlyFederal Explosives Licensing Cemer (FE: ‘The Federal Explosives Licensing Center (FELC) issues and renews federal explosives licenses and permits (FELJPs) submitted by industry members that manufacture, deal in, import, or receive explosives materials. The FELC reviews and acts upon all applications for explosives licenses and permits, coordinates applicant inspections with ATF field offices, and initiates background checks on responsible persons ancl employee possessors. ile XI of the Organized Crime Control Act (OCCA) of 1970 established ATP"s explosives licensing jurisdiction, and the Safe Explosives Act of 2002 amended the OCCA, ATF established the FELC as a separate organizational entity to review and act upon applications in accordance with the law and regulations that deny access to individuals prohibited by law from receiving and/or possessing explosives. The FELC provides certification to ATF field personnel on license status, and provides a call center that responds to inquiries from the general public and members of the industry ‘The FELC performs the following additional functions: * Upon receipt of FEL/P applications, the FELC enters data into ATF’s Federal Licensing System (FLS) and transmits identification data to the FBI for required background checks. Depending upon the result of background checks and other factors, the FELC either issues letters of clearance or denial. The FELC also processes appeals from individuals whose background checks indicate that they are prohibited from receiving or possessing explosives. + Serves as the official repository and archive for all explosives livense-related documents and ensures that all documents are properly prepared for digital imaging. The FELC provides copies of documents for court cases. congressional correspondence, and Freedom of Information Act (FOIA) requests, upon request. + In-support of ATF investigations. provides blue ribbon certification and direct testimony to vetify the licensed status of defendants and others related to criminal prosecutions or adverse actions, © Works with ATF field offices to coordinate applicant inspections and obtain omitted oF incomplete application data. + Participates in explosives industry conferences, seminars, and trade shows to promote yoluntary compliance within the industry Provides input regarding ATF rulings that clarify regulations that govern industry business practices pes of Explosives Li Manufacturer Importer User Limited of Explosives Dealer Limited Permit Intrastate Only Sensitive But Unclassified ~ For ATF Internal Use OnlyFirearms & Explosives Services Division Statisties FY 2005 - FY 2020 FRL* | FELREP** 106,432, 12,213, 107,316 1,797. 108.933, 10 112,993 11,208 115,395, 11,195 118,487 10,791 123,587, 10,565 130,956 10,537 139,244 10,495, 1416 10,455 139,840 10,153 137,464 10,016 134,738, 9.849 134,191 9,682 130,288 9.520 129,792 9AM1 Sensitive But Unclassified ~ For ATF Internal Use Only 24Firearms and Explosives Imports Branch (FEIB) The Firearms and Explosives Imports Branch (FEIB) fulfills ATF statutory responsibilities regarding import provisions of the Gun Control Act of 1968, the National Firearms Act, and the Arms Export Control Act of 1976, FEIB processes all applications to import firearms, ammunition and implements of war; all applications to register under the Arms Export Control Act as an importer of U.S. Munitions List articles, including the collection and deposit af registration fees and issues International Import Certificates to affect the release of U.S. Munitions Import List articles intended for import to the United States. Chief, FEIB FELB’s mission: FEIB processes and approves the following required importation forms: ‘+ ATE Form 6, Part |, "Application and Permit for Importation of Firearms, Ammunition and Implements of War" « forall FFLs and all nonresident individuals applying for importation approval of firearms and ammunition prior to entry. ATF Form 6, Part II, "Application and Permit for Importation of Firearms, Ammunition and Implements of War" - for all military personnel applying for importation approval of personal firearms and ammunition prior to their return date from overseas assignment. ATF Form 4587, "Application to Register as an Importer of U.S. Munitions Import List ‘Articles" - for registration of persons dealing in articles on the U.S. Munitions List ATF Form 4522, "International Import Certificate" -- for importers to certify the legality of importation of articles on the U.S. Munitions List when required by certain countries. FEIB also provides technical advice and assistance to the general public regarding requirements to register any firearm, ammunition or explosive that is brought into the United States from a foreign country. The FEIB has a variety of direct customers, +h with specific service needs: * General public + Federal firearms licensees + Members of the Armed Forces + Domestic and international law enforcement + ATF regulatory and criminal enforeement + Other federal, state and local government agencies + Foreign embassies and foreign nationals 1 Unclassified ~ For ATE Internal Use OnlyNational Fi rms Act Division (NFA) ‘The National Firearms Act Division (NFA Division) is responsible for the administration of the National Firearms Act, as amended, and regulations issued pursuant to the Act. It maintains the National Firearms Registration and Transfer Record (NFRTR), the central registry of all NFA firearms in the United States. The division acts upon all applications to make, export, transfer and register NFA firearms: processes notices of NFA firearms manufactured or imported; amends the NFRTR required; provides testimony in U.S. District Court regarding the registration status of firearms, and supports special agents and inspectors in the field, as necessary. Leadership: Division Chief, Steven Rosenthal Amy Stely, Deputy Chief’ Barry Beshears, Chief, IPB David Howell, Chief, GSB In accordance with laws and regulations, the NEA Division maintains the National Firearms Registration and Transfer Record (NFRTR), the central registry of all restricted weapons, as defined in 26 U.S.C. § 584: NFRTR includes firearm identification, date of registration, and the name and address of the person oF entity entitled to legally possess the item. ‘The NEA Division maintains original registration documents dating back to the enactment of the National Firearms Act in 1934. Copies of the documents are imaged, stored. and available upon writien request, subject to provisions of 26 U.S.C. § 6103. In FY 2020, the NPA Division processed 512.315 NFA applications. In a high-volume, paper= based environment, its Customer Service Call Center received 169.403 calls; received and processed 220,029 pieces of incoming mail/correspondence; and 96,881 Fax/NFA fax emails. The NFA Division executed tri-annual updates pursuant to OMB requirements for: ATF Form 10 (5320.10), Application for Registration of Firearms Acquired by Certain Govemmental Entities: ATF Form 2 (5320.2), Notice of Firearms Manufactured or Imported; and ATF Form 5630. Special Tax Registration and Return National Firearm Act (NFA). Sensitive But Un assified ~ For ATTF Internal Use OnlyThe NFA Division held working group meetings with the Office of Science and Technology and industry regarding the development of eForm 4 to allow industry representatives to offer input. The division also initiated IT’ procurements to modernize legacy applications and enhance ATF enterprise architecture; and funded development of additional NFA eForms, electronic fingerprint card submission technology. and NFA systems maintenance and modernization that address cloud migration Asa result of the COVID-19 pandemic, solicited innovative ways to process applications while operating in a maximum telework posture. Identified and streamlined procedures, and moved toward a total eleetronie entry, routing, and approval process. Executed long-term solutions to relieve stalling shortages and manage increased workload, such as cross-training examiners from other divisions. Recruited and selected field operations industry operations investigators (101s) to help process NFA applications, which assisted NPA processing and exposed field personnel to such operations. To safeguard PII information and promote tax information safety, worked with the Office of Professional Responsibility and Security Operations(OPRSO) to develop and execute a warning banner for the coversheet of mailed NFA applications that identifies the content as “federal taxpayer information.” NFA Division is divided into two branches: Government Support Branch (GSB) and Industry Processing Branch (IPB). NFA Statistics: Forms Received 487,745 Forms Processed 912,315 Weapons Processed 2,353,436 SOT Membership TY20 17,323 FBI Fingerprint Cards 173,220 Background Checks 295,821 Court Certifications 436 NFA & SOT Revenue $59.7M (NFA $51.7/SOT $8) Exempt Entities Approved 134,803 Congressional Completed 12 FOIAs Completed 81 Sensitive But Unclassified ~ For ATF internal Use OnlyGovernment Support Branch (GSB) The Government Support Branch (GSB) serves law enforcement and government entities by processing United States Government (federal, state, local) applications. The GSB provides subject matter testimony, and assists ATF field divisions with criminal or regulatory investigations associated with the administration of the National Firearms Act of 1934 and regulations issued pursuant to the Act Leadership David Howell, Chief, GSB The GSB performs the following: Researches and provides information to authorized ATF employees in support of ATF federal firearms licensee (FFL) and federal explosives licensee/permittee (FEL/P) compliance programs. * Provides record searches and certifications for use in federal court regarding the registration status ofa person or firearm, + In support of ATF investigations, provides court certification and direct testimony to verify registration status of defendants and others related to criminal prosecutions or adverse actions, + Receives and acts upon all eForm applications, with the exception of eForm | # Adjusts the record to reflect (a) Changes of registrants, (b) Lost or stolen firearms. (c) Certain modifications to the description of firearms. (d)_ Destruction of firearms. (e) Transfer of firearms. (0) Export of firearms. * Maintains record of all FFLs that have paid special occupational tax (SOT) to engage in importing, manufacturing, or dealing in NFA firearms. © Maintains record of persons who have been exempted from SOT payment, including ‘manufacturers exempted from requirements of 27 CFR Part 479, © Receives and acts upon all requests for interstate transport of any destructive device, machinegun, short-barreled rifle, or short-barreled shotgun. * Prepares statistical reports and provides technical guidance and support to ATF offices. 28 ve But Unclassified ~ For ATE Internal Use OnlyProvides input pertaining t0 NFA related matters, guidance regarding ATF rulings, and clarification regarding regulations that govern firearms regulated under the purview of the National Firearms Act. Provides law enforcement support including assistanee with field operations MIT inspections. Provides support to Assistant United States Attomeys (AUSAS) at trial in NFA criminal firearms violations, and in 5801 (imposition of tax) matters as subject-matter experts concerning, all technical NFA related issues. Provides guidance and expertise in investigations related to gun violence and firearms violations as requested by Field Operations. Maintains a 24/7 presence through the duty specialists, including JSO d NFA Call Center Serves as the primary point of contact for Law Enforcement Support Office (LESO) 1033 program forall state/local government agencies that require assistance in review and processing of firearms regulated under the National Firearms Act of 1934 Sensitive But Unclassified ~ For ATF InterIndustry Processing Branch (IPB) ‘The Industry Processing Branch (IPB) serves industry through application processing and administers the National Firearms Act of 1934 and regulations pursuant to the Act. The IPB maintains the National Firearms Registration and Transfer Record (NERTR), the central registry of all NFA firearms in the United States. Li Bar ershi Beshear Chi PB The IPB performs the following: * Receives and acts upon all applications to make, export, transfer, and register NFA firearms as well as all notices of NFA firearms manufactured oF imported, including eForm 1 + Adjusts the record to reflect (a) Changes of registrants, (b) Lost or stolen firearms. (c) Certain modifications to the description of firearms, (d)_ Destruction of firearms. (e) Transfer of firearms (9) Export of firearms. Modification of the National Firearms Registration and Transfer Record (NERTR) system in April 2017 allowed ATF to comply with newly mandated regulatory requirements to capture information regarding responsible persons of previously exempt legal entities, and to handle the data entry of paper-based application information for manual database input, However, still needed are enhancements to enterprise legacy systems, updated systems technology, and a mechanism for individuals and industry members to submit electronic NFA applications in lieu of paper-based forms. ‘© IPB on-boarded additional legal instruments examiners to help address the increasing workload. + IPB detailed field 101s to assist with NFA data entry and provessing of NFA applications. Use OnlyNFA Applications Received vs. Processed 600,000 400,000 200,000 2012 Received 152.079 Processed 197.649 200,000 109,000 f ° By Fiscal Year 2013 «2014-2015 2016 2017-201 Borg 2020 ig9.920 21.261 307524 548.235 259.187 939.278 370.347 487.745 163,691 236,290 908.563 379,410 gBO.210 22,092 342,860 512,315 31 Sensitive But Unclassified ~ For ATF Internal Use OnlySpecial Occupational Tax Payers (SOT) by Tax Year * 2009 3,605 FFLs * 2010 4,280 FFLs * 2011 4,729 FFLs * 2012 5,598 FFLs * 2013 6,847 FFLs * 2014 8,216 FFLs * 2015 9,349 FFLs * 2016 10,513 FFLs * 2017 11,769 FFLs * 2018 12,460 FFLs * 2019 13,992 FFLs * 2020 17,323 FFLs Sensitive But Unclassified ~ For ATF Internal Use OnlyATF’s National Tracing Center Division (NTC) is the country’s only erime gun tracing facility ‘The NTC conducts firearms tracing to provide investigative leads for federal, state, local and foreign law enforcement agencies. The purpose is to supply critical information that helps domestic and international law enforcement agencies solve firearms crimes; detect firearms tralficking; and detect patterns in the sources and types of crime guns moved intrastate, interstate, and internationally eadership: ‘Tyson Arnold, Division Chief Edward Courtney, Deputy Division Chief| Benjamin Scoll, Chief, FTB Ed Stely, Chief, TORMB. Vacant, Chief, LESB Mission ‘The mission of the NTC is to accurately and efficiently conduct firearms tracing and associated programs and processes for international, federal, state and local law enforcement agencies t0 provide investigative leads, The NTC has three branches: Firearms Tracing Branch, Law Eniorcement Support Branch, and Tracing Operations and Records Management Branch. Pursuant to the Gun Control Act of 1968, ATF is the sole federal agency authorized to administer firearms tracing. The NTC is only authorized to trace a firearm for a law enforcement agency involved in a bona fide criminal investigation. ‘The firearm must have been used or suspected of being used in a crime. Sensitive But Unclassi 1 Use OnlyFirearms Tracing Branch (FTB) The purpose of the Firearms Tracing Branch (FTB) is to accurately and efficiently conduct firearms tracing for international, federal, state and local law enforcement agencies, and to provide investigative leads. Firearms tracing typically begins when a law enforcement agency discovers a firearm at a crime scene and secks to learn the origin or background of that firearm to develop investigative leads. Tracing is a systematic process of tracking the movement of a firearm from its manufacture oF from its introduction into U.S. commerce by the importer, through the distribution chain, wholesaler/retailer to identify an unlicensed purchaser. That information can help to link a suspect to a firearm in a criminal investigation and identify potential traffickers. Firearms tracing ean deteet in-state, interstate and international patterns in the sources and types of crime guns. ATF processes crime gun trace requests annually for thousands of domestic law enforcement agencies. also traces U.S, sourced firearms recovered in foreign countries for law in those countries. forcement agencies In FY 2020, the NTC processed a record 490,844 trace requests. Traces classified as “urgent” are usually completed within 24 hours; traces classified as “routine” are completed within twelve days, fon average. The law enforcement agency submitting the trace request determines the trace classification. In fiscal years 1988-2020, the NTC conducted traces as outlined below. Total Trace Requests (Fiscal Year) 4 Sensitive But Unclassified ~ For ATF Internal Use OnlyLaw Enforcement Support (LES) Branch The Law Enforcement Support (LES) Branch provides support to ATF an between law enforcement and the NTC the primary liaison The LES Branch operates a series of programs associated with law enforcement and tracing that include the FFL Theft Program; Obliterated Serial Number Program: Do Not Contact Program; and the Firearms Recovery Notification Program. Provides quality assurance regarding the firearms tracing process. ‘The Branch assists ATF comprehensive tracing efforts by facilitating the submission and validation of firearms trace requests to improve accuracy, efficiency and success rates by addressing weapon description discrepancies, and entering trace requests into the Firearms Tracing System (FTS). The LES Branch conducted firearm vault reviews to assess changing investigative priorities and develop strategies regarding violent firearms crimes, In addition, it provided field investigative support, courtroom testimony, firearms identification training, field referrals to support investigations, and field support through inspection intelligence and information. S Branch conducted tours, briefings, and trainings for federal, state, local and foreign law enforcement agencies. Outreach included ATF Firearms Operations Division, Field Operations Crime Gun Intelligence Centers, Office of Strategie Intelligence and Information, International A{fairs Division; and the Department of Homeland Security. Other outreach included ATE Office of Public and Governmental Affairs and events with CBS 60 Minutes; Legislative Affairs Division and congressional visits and inquiries; Intergovernmental Affairs Division and law enforcement community outreach; and Department of State, which included hosting a jon thom Saudi Arabia. ‘The LES Branch encompasses the following programs: Federal rms Licensee (FL) Theft/Loss Program: PELs are required by law to report to ATF/NTC within 48 hours of discovery, the theft or loss of firearms inventory, including in-transit thefts or losses. ‘The NTC develops investigative leads when any of the firearms are subsequently recovered and traced by law enforcement, In FY 2020, FFLs reported 20,211 firearms lost or stolen. There were 2,823 firearms recovered by Jaw enforcement that had been reported stolen by FELs, Sensitive But Unclassified ~ For ATF Internal Use OnlyObliterated Serial Number Program: ATF provides expertise in serialization and other firearm identification forensics to assist in the positive identification of firearms when serial numbers have been partially obliterated or partially restored. ATF’s Obliterated Serial Number Program allows law enforcement agencies to trace recovered firearms whose origins have been masked by serial number destruction or alteration, In FY 2020, some 7,970 firearms were traced under this program to produce 1,444 investigative leads, Do Not Contact Program: ‘The Do Not Contact Program provides investigative service to the field and flags certain FFLs that are currently under investigation in the Firearms Tracing System (FTS) database and restricts contact between the NTC and those dealers. Firearms Recovery Notification Program: ATF agents engaged in a criminal investigation can request notification from the NTC regarding 4 firearm recovery when the firearm is suspected of having been used in a crime. The program is particularly useful in firearms trafficking investigations where information related to the recovery of a specific firearm can result in important investigative leads that unveil a particular illegal trafficking scheme. In FY 2020, the NTC entered 815 firearms for recovery monitoring, and recovered a total of 404 firearms. 36 Sensitive But Unclassified ~ For ATETracing Operations and Records Management (TORM) Branch The mission of the Tracing Operations and Records Management (TORM) Branch is to acquire and maintain firearms industty records (0 support the firearms tracing process and provide investigative leads. As the primary liaison between the NTC and the firearms industry, TORM oversees systems operations for the NTC, including the Firearms Tracing System (FTS), eTraci NT'C-Connect, and the Electronic Content Management (ECM) Out-of-Business Records Image Repository. {In support of Frontline, the TORM Branch published the ATF “Daily Multiple Sales Report;” the weekly statistical “First Look Report” that contains 19 different targeted investigative areas: the ‘Southwest Border Report” on firearms recovered in Mexico: and a detailed report of eTrace user level participation in Mexico (On multiple oceasions, the NTC Division provided training for Special Agent Basic Training classes, the IRS Academy, ATF task force officers, crime gun intelligence centers, and to support a number of law enforcement agencies across the country. Trace: This web-based, bi-lingual (English/Spanish) firearms tracing system is available to accredited domestic and international law enforcement agencies to assist in the tracing of U.S.-sourced ms, The eTrace system is a paperless firearms trace request submission/interactive analysis tool that provides an electronic exchange of erime gun incident-based data ina secure web environment. Through eTrace, law enforcement agencies can electronically submit firearms trace . monitor the progress of traces, retrieve completed trace results, and query related data, The ¢Trace system includes analytical and download capabilities for ATF firearms trace information, including selective field searches and statistical reporting. ‘The system has more than 65,000 individual law enforcement user accounts; and 8,200 law enforcement agencies, including those in 44 foreign countries. ATF added to eTrace 482 memoranda of understanding (MOUs) that enabled participating law enforcement agencies to submit electronic trace requests. In addition, NTC has enabled Collective Data Sharing (CDS) in all 50 states and provided briefings and training throughout the United States that resulted in 2,091 law enforeement agencies sharing trace data within their given states. Out-of-Business Records Prograi Federal firearms licensees (FFL) that discontinue business are required by law to send all firearms tansaction records to the NTC. Out-of-business records (OBRs) are integral in the firearms tra process. In FY 2020, the NTC processed more than 70.6 million OBRs, consisting of more than 68.4 million paper and over 2.2 million electronic records. Since 1968, ATF has received over 800 million records. ATF*s Out-of-Business Records Repository is the only one of its kind in the world Sensitive But Unclassified - For ATF Internal Use OnlyMultiple Sales of Handguns Program: FPLs are required by statute to report to AT, within five consecutive business days, the sale of two or more handguns to the same purchaser. These reports, when cross-referenced with crime gun trace information, serve as an important indicator in the detection of illegal firearms trafficking. They also allow for successful tracing of older firearms that have re-entered the retail market, In FY 2020, about 1.25 million firearms were reported as part of multiple sales of handguns; and a record 27,886 firearms trace requests were associated with multiple sales. NTC Connect Program: The NTC oversees the NTC Connect program (formerly Access 2000 [A2K]) and its software/hardware, which is provided to industry members and enables the NTC to determine the disposition of firearms traced via serial number queries. The program provides the NTC with 24/7 ‘access to transaction records and can reduce industry costs by automating the trace process. Undes the program, the NTC can only access transaction data associated with a specific firearm that being traced for a specific law enforcement agency engaged in a criminal investigation, In FY 2020, a total of 33 firearms manufacturers, importers, wholesalers, and distributors, encompassing approximately 7] federal firearms licenses, participated in the NTC Connect Program, During the fiseal year, participating industry members uploaded over 43 million firearm transaction records which were accessed by NTC tracing staff over half a million times. NTC is exploring the expansion of its NTC Connect Program to the corporate retailer sector for connectivity. This process is undergoing development through FY 2021. Demand Letter Progra The NTC is responsible for issuing various demand letters to ensure the collection of FFL. data that is vital to the success of the firearms tracing process, as Follows: Demand Letter f - Issued to FFLs that do not comply with statutory responsibility to respond within 24 hours to firearm trace requests. FFLs that receive Demand letter I are required to send ATF their acquisition and disposition records for the past three years, and must continue to submit records monthly until otherwise directed. The information allows ATF to trace firearms if «an FFL. continues to be uncooperative with trace requests. No FFLs were subject to Demand Letter | reporting in FY 2020. Demand Letter 2 - Sent to FFLs that, during the previous calendar year, had 25 or more guns traced to them with a “time-to-crime” of three years or less. Affected FFLs are required to submit limited information regarding “used” guns acquired the previous year, including the manufacturer/importer, model, caliber or gauge serial number along with the acquisition date, Names of owners are not submitted. The FFLs are required to submit information quarterly, and until otherwise informed. ‘The used gun information received as a result of Demand letter 2 enables ATF to trace any used guns sold by FFLs under demand. Without such information, ATF would be unable to link the secondary market firearm to the dealer. In FY 2020, ATF issued a total of 628 Demand 2 letters to FELs and completed 4,48 traces based on the availability of this information, 38 Sensitive But Unclassified - For ATF Internat Use OnlyDemand Letter 3 - Issued monthly to assist AF in its efforts to investigate and combat the illegal movement of firearms along and across the Southwest border. ATF requires licensed dealers and pawnbrokers in Arizona, Califomia, New Mexico and Texas to submit records information on multiple sales of certain rifles defined as semi-automatic rifles that are capable of accepting a detachable magazine and with a caliber greater than .22 (including .223/5.56 caliber). In FY 2020, total of 12,644 firearms were reported as part of multiple sales of certain rifles, und 2 trace requests were completed based on those reports. firearms, 39. Sensitive But Unclassified ~ For ATF Internal Use Only