Synopsis of ATF Webinar for FFL/SOT's on 03/15/2024

[bcr229]

The faster processing times for NFA transfers were explained in the ATF FFL/SOT webinar being held today. I apologize for the rough writeup but I was typing these notes, watching the slide show, and listening at the same time.

High-level synopsis if you didn't get the invitation or couldn't attend (only 3000 invitations were sent out to FFL/SOT's):

Holdup of processing is primarily due to FBI NICS because all F1/F4/F5 applicants get run through it. GCA specifies three-day response for Title I transfers, NFA does not, so NFA background check requests are given a lower priority. NFA background checks get done when the FBI has time to do them if they are not instant.

ATF used to use FIFO for F1/F4/F5 applications under old business process. Now it moves an application forward once a response from FBI NICS has been received; F1/F4/F5 with a FBI NICS response are not stacked up behind others waiting on the FBI NICS response.

If you submit as an individual and you typically get through FBI NICS instantly when you purchase a Title I firearm then your F1/F4/F5 will be processed quickly. If you are delayed every time then it will take longer because there is no federal mandate on the FBI to respond to an NFA NICS background check in three days. If your FBI NICS never gets a response (remains "Open" when purchasing a Title I firearm and the dealer simply transfers on the third business day) then F1/F4/F5 will take a very long time because ATF doesn't move forward until it gets a response from FBI NICS.

Providing SSN, especially if you constantly are delayed or have a common name, speeds up F1/F4/F5 application. Some transferees refuse to put the SSN on the form due to concerns about PII theft. Either you trust your FFL or you don't.

Transferees need to get a UPIN if they are always delayed or if FBI NICS never sends a response to the FFL for a Title I transfer (status remains "Open" forever) if they want to improve their F1/F4/F5 processing times.

If multiple applications for one individual are made same day then ATF "bundles" them and one FBI NICS background check is used for all of them.

ATF business process for individual F1/F4/F5 has been streamlined so once FBI NICS response is received the F1/F4/F5 process at ATF finishes quickly (within hours).

Some examiners do only individual applications, others do only trust applications.

ATF business process for trust F1/F4/F5 hasn't been streamlined yet, that is going to be worked out over the next few months.

Even if there is a new process, trust transfers will always take longer than individual due to complexity, requirement to review the trust document language for state legality and completeness, and greater possibility of error (e.g. number of trustees is greater than number of submitted 5320.23 forms). It sounds like the trust process is faster if each RP on the trust has an eForms account rather than just the primary trustee who is submitting the eF1/eF4.

Trusts where just one person is listed as the settlor, trustee, and beneficiary are not legal (merger doctrine).

Trust will be delayed if any RP background check is delayed by FBI NICS. Some trust F1/F4's have been submitted where a trustee / trust applicant is a minor which is also a problem.

If trust has language that beneficiary may possess or shoot the firearm, even if only in the presence of the trustee, then the beneficiary must also submit an RP.

ATF will deny F1/F4/F5 because FBI NICS returns a "Deny" response. The applicant has to fix the problem with the FBI NICS because ATF is not given info on why the background check was denied. Use same appeal process as for a Title I "Deny" response, and expect to get a UPIN in the future.

Third-party certifications with eForms are not legal and an FFL/SOT who does it will have access to the system revoked. Certifications must be done by the actual transferor and transferee. So, don't be using a PIN from someone else and don't give your PIN to anyone.

eForms application is currently being updated to permit certain data corrections to the form instead of instant denial and resubmit needed; the update should be released in a month or so.

Currently 96% of applications are eForms versus paper forms.

While the federal statute requires applicants to submit fingerprints, neither the ATF nor the FBI use them for anything.

 

[CrawfishStu]

Thanks for the heads up.

 

[John from MD]

Thanks much.

 

[outrider58]

Just curious, what is an "RP"?

If trust has language that beneficiary may possess or shoot the firearm, even if only in the presence of the trustee, then the beneficiary must also submit an RP.

 

[Hibs]

Just curious, what is an "RP"?

Responsible party? Has to upload their own set of prints, etc , right?

 

[outrider58]

Responsible party? Has to upload their own set of prints, etc , right?

Makes sense. I had a feeling that was what it meant, just couldn't find the right words.

Responsible Person Defined​

A Responsible Person (RP) is someone who has the authority and power to direct firearm compliance decisions and operations for an FFL.


This means that they are the ultimate person (or one of the persons) responsible for ATF Compliance of the FFL. This does NOT mean that they are necessarily the “compliance person.”


Most people think that the RP is the “holder of the FFL.” This is not correct.


Instead, the business or entity is technically the holder of the FFL (even if a sole proprietorship) and the RPs are the employees that work for the entity that has the FFL.


We have a simple method to help determine who should be a responsible person in our Get Your FFL & ATF Compliance courses.


It is VERY important to have the correct people listed as RPs on the FFL! Someone is technically an RP based on their role in the company (e.g. manager) and not whether they are listed as an RP on the FFL. This distinction matters! If someone is an RP based on their role, and NOT listed as an RP on the FFL, then you can get into significant trouble with the ATF.


The definition for a responsible person is found in the ATF regs at 27 CFR 555.11:

“Responsible person. An individual who has the power to direct the management and policies of the applicant pertaining to explosive materials. Generally, the term includes partners, sole proprietors, site managers, corporate officers and directors, and majority shareholders.”

 

[bcr229]

Responsible party? Has to upload their own set of prints, etc , right?

Right, someone who has to file a 5320.23 with a trust application.

 

[slsc98]

Thanks for the heads up.

VERY much so!

 

[Bertfish]

So the short wait times are expected to continue? If they switched to FIFO who is cleaning up the existing backlog?

 

[bcr229]

So the short wait times are expected to continue? If they switched to FIFO who is cleaning up the existing backlog?

Yes IF the transferee is an individual who passes FBI NICS instantly.

That was not brought up in the discussion or the Q&A afterward.

 

[Hibs]

For what it’s worth…. I filed a eForm1 on 11FEB, still not approved.

However, I’m 50/50 on purchases if I get delayed or not. I do have a UPIN, still get delayed half the time (was EVERY time before UPIN). Likely that’s why I’m still waiting. I’ve never been delayed more than 2 days with my UPIN, and I’m not talking Brady law I’m talking a proceed.

My guess is I got delayed, it came back a day later, now who the fuq knows where I’m at in the queue.