Transferring Machine Guns Between Qualified Licensees

The FAIR Trade Group, a trade association of firearms importers and exporters, strongly supports the proposed rule to revise regulations on transferring machine guns between qualified licensees. They argue that the rule correctly aligns with statutory language but request specific refinements regarding inventory maintenance, documentation requirements for government-furnished weapons, and the removal of "sales sample" references.

The Firearms Regulatory Accountability Coalition, Inc. (FRAC) supports the proposed rule as a positive regulatory action but argues it should be amended to align more closely with the statutory language of 18 U.S.C. § 922(o). They contend that the rule should apply the "government authority" exception to all "persons" rather than being arbitrarily restricted to "licensees" (FFLs/SOTs).

The National Shooting Sports Foundation (NSSF), a trade association for the firearms industry, supports the ATF's proposed rule to clarify regulations regarding the manufacture, import, possession, and transfer of machine guns. While they praise the move toward clearer language, they suggest specific revisions to the text to more accurately reflect statutory allowances and avoid potential confusion regarding registration conditions and export activities.

The commenter, an academic researcher specializing in administrative law and firearms commerce, supports the proposed rule as a positive development that clarifies the distinction between GCA and NFA business discontinuation. They argue that the proposal streamlines administrative processes, reduces transaction costs for licensees, and replaces informal interpretations with formalized, predictable rulemaking.

A defense and law enforcement manufacturer is requesting that the ATF clarify the proposed rule to explicitly allow for the temporary transfer of post-1986 machine guns between qualified FFL/SOT holders. They argue that such transfers are necessary to support government procurement, export programs, and other research and development activities that require specialized testing and evaluation by different contractors.

The commenter argues that the current regulation (27 CFR 479.105) overextends federal law by restricting machine gun transfers more than Congress intended. They request that the ATF repeal or revise the rule to allow for transfers under the authority of government agencies, as they believe the current rule closes a loophole intended for the public.