Proposed Rule2026-08928
Transferring Machine Guns Between Qualified Licensees
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
May 6, 2026
Issuing agencies
Justice DepartmentAlcohol, Tobacco, Firearms, and Explosives Bureau
Abstract
The Bureau of Alcohol, Tobacco, Firearms, and Explosives ("ATF") proposes amending Department of Justice ("Department") regulations to update the procedure for transferring machine guns between qualified manufacturers, importers, or dealers. Specifically, the proposed rule would simplify the regulatory requirements for such machine gun transfers pursuant to requests to demonstrate firearms to a government entity or due to a licensee discontinuing business. The proposed changes would allow the implementing regulations to more closely mirror the statutory authority provided by the Gun Control Act.
Full Text
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<title>Federal Register, Volume 91 Issue 87 (Wednesday, May 6, 2026)</title>
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[Federal Register Volume 91, Number 87 (Wednesday, May 6, 2026)]
[Proposed Rules]
[Pages 24485-24490]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-08928]
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DEPARTMENT OF JUSTICE
Bureau of Alcohol, Tobacco, Firearms, and Explosives
27 CFR Part 479
[Docket No. ATF-2026-0006; ATF No. 2025R-19P]
RIN 1140-AA75
Transferring Machine Guns Between Qualified Licensees
AGENCY: Bureau of Alcohol, Tobacco, Firearms, and Explosives,
Department of Justice.
ACTION: Notice of proposed rulemaking.
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SUMMARY: The Bureau of Alcohol, Tobacco, Firearms, and Explosives
(``ATF'') proposes amending Department of Justice (``Department'')
regulations to update the procedure for transferring machine guns
between qualified manufacturers, importers, or dealers. Specifically,
the proposed rule would simplify the regulatory requirements for such
machine gun transfers pursuant to requests to demonstrate firearms to a
government entity or due to a licensee discontinuing business. The
proposed changes would allow the implementing regulations to more
closely mirror the statutory authority provided by the Gun Control Act.
DATES: Comments must be submitted in writing, and must be submitted on
or before (or, if mailed, must be postmarked on or before) July 6,
2026. Commenters should be aware that the federal e-rulemaking portal
comment system will not accept comments after midnight Eastern Time on
the last day of the comment period.
ADDRESSES: You may submit comments, identified by RIN 1140-AA75, by
either of the following methods--
<bullet> Federal e-rulemaking portal: <a href="https://www.regulations.gov">https://www.regulations.gov</a>.
Follow the instructions for submitting comments.
<bullet> Mail: ATF Rulemaking Comments; Mail Stop 6N-518, Office of
Regulatory Affairs; Enforcement Programs and Services; Bureau of
Alcohol, Tobacco, Firearms, and Explosives; 99 New York Ave. NE,
Washington, DC 20226; ATTN: ATF 1140-AA75.
Instructions: All submissions must include the agency name and
number (RIN 1140-AA75) for this notice of proposed rulemaking (``NPRM''
or ``proposed rule''). ATF may post all properly completed comments it
receives from either of the methods described above, without change, to
the federal e-rulemaking portal, <a href="https://www.regulations.gov">https://www.regulations.gov</a>. This
includes any personally identifying information (``PII'') or business
proprietary information (``PROPIN'') submitted in the body of the
comment or as part of a related attachment they want posted. Commenters
who submit through the federal e-rulemaking portal and do not want any
of their PII posted on the internet should omit it from the body of
their comment and in any uploaded attachments that they want posted. If
online commenters wish to submit PII with their comment, they should
place it in a separate attachment and mark it at the top with the
marking ``CUI//PRVCY.'' Commenters who submit through mail should
likewise omit their PII or PROPIN from the body of the comment and
provide any such information on the cover sheet only, marking it at the
top as ``CUI//PRVCY'' for PII, or as ``CUI//PROPIN'' for PROPIN. For
detailed instructions on submitting comments and additional information
on the rulemaking process, see the ``Public Participation'' heading of
the SUPPLEMENTARY INFORMATION section of this document. In accordance
with 5 U.S.C. 553(b)(4), a summary of this rule may be found at <a href="https://www.regulations.gov">https://www.regulations.gov</a>. Commenters must submit comments by using one of
the methods described above, not by emailing the address set forth in
the following paragraph.
FOR FURTHER INFORMATION CONTACT: Office of Regulatory Affairs, by email
at <a href="/cdn-cgi/l/email-protection#246b7665644550420a434b52"><span class="__cf_email__" data-cfemail="bcf3eefdfcddc8da92dbd3ca">[email protected]</span></a>, by mail at Office of Regulatory Affairs; Enforcement
Programs and Services; Bureau of Alcohol, Tobacco, Firearms, and
Explosives; 99 New York Ave. NE, Washington, DC 20226, or by telephone
at 202-648-7070 (this is not a toll-free number).
SUPPLEMENTARY INFORMATION:
I. Background
The Attorney General is responsible for enforcing the Gun Control
Act (``GCA''), as amended, and the National Firearms Act (``NFA''), as
amended.\1\ This includes the authority to promulgate regulations
necessary to enforce the provisions of the GCA and NFA. See 18 U.S.C.
926(a); 26 U.S.C. 7805(a). Congress and the Attorney General have
delegated the responsibility for administering and enforcing the GCA
and NFA to the Director of ATF (``Director''), subject to the direction
of the Attorney General and the Deputy Attorney General. See 28 U.S.C.
599A(b)(1), (c)(1); 28 CFR 0.130(a)(1)-(2); Treas. Order No. 221(2)(a),
(d), 37 FR 11696-97 (June 10, 1972).\2\ Accordingly, the Department and
ATF have promulgated regulations implementing both the GCA and the NFA
in 27 CFR parts 478 and 479.
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\1\ Some NFA and GCA provisions still refer to the ``Secretary
of the Treasury.'' However, the Homeland Security Act of 2002,
Public Law 107-296, 116 Stat. 2135, transferred the functions of ATF
from the Department of the Treasury to the Department of Justice,
under the general authority of the Attorney General. 26 U.S.C.
7801(a)(2); 28 U.S.C. 599A(c)(1). Thus, for ease of reference, this
notice of proposed rulemaking refers to the Attorney General where
relevant.
\2\ In Attorney General Order Number 6353-2025, the Attorney
General delegated authority to the Director to issue regulations
pertaining to matters within ATF's jurisdiction, including under the
NFA, GCA, and Title XI of the Organized Crime Control Act. ATF's
jurisdiction also includes those portions of sec. 38 of the Arms
Export Control Act pertaining to permanently importing defense
articles and services and the Contraband Cigarette Trafficking Act.
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In 1986, Congress passed the Firearms Owners' Protection Act
(``FOPA''), Public Law 99-308, 100 Stat. 449, which amended and added
provisions to the GCA to include 18 U.S.C. 922(o), which generally
makes it unlawful for any person to transfer or possess a machine gun.
The general restrictions on transferring and possessing machine guns
under section 922(o) do not apply in two situations. The first is a
``transfer to or by, or possession by or under the authority of, the
United States or any department or agency thereof or a State, or a
department, agency, or political subdivision thereof.'' The second is
[[Page 24486]]
lawfully transferring or possessing a machine gun that was lawfully
possessed before the date the FOPA provision went into effect. See 18
U.S.C. 922(o)(2)(A)-(B). Section 922(o) became effective on May 19,
1986. Accordingly, all machine guns manufactured or imported after that
date are subject to the restrictions imposed by section 922(o).
Section 922(o) does not specifically provide an exemption for
transferring or possessing any machine gun manufactured or imported
after May 19, 1986, (commonly referred to as a ``post-86 machine gun'')
other than by a government entity or a person acting under its
authority. However, since 1988, the regulation implementing section
922(o), 27 CFR 479.105, has interpreted the statute as allowing
qualified licensees to make, transfer, and possess such machine guns
under limited circumstances, including transferring a post-86 machine
gun when a licensee discontinues business.\3\
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\3\ ATF final rule, ``Commerce in Firearms and Ammunition,'' 53
FR 10480, 10510 (Mar. 31, 1988).
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Section 479.105(c) authorizes qualified manufacturers and importers
to manufacture or import machine guns on or after May 19, 1986, to sell
or distribute them to any department or agency of the United States, or
any state or political subdivision thereof. Paragraph (c) is silent as
to whether the manufacturer or importer may maintain an inventory of
machine guns or must wait until there is a specific government contract
or purchase order before manufacturing or importing a machine gun.
Clearly, though, Congress did not intend for government entities to
wait until after a specific need arises to manufacture or import
machine guns, particularly when such government entities typically do
not manufacture or import their own machine guns. The authority-of-
government exemption is designed to ensure military and law enforcement
agencies have enough machine guns for times of war or national
emergency.
In 2014, ATF published ATF Ruling 2014-1, which authorized
manufacturers to stockpile machine guns, i.e., maintain an inventory of
manufactured machine guns, provided that subsequent transfers of such
machine guns are to a federal, state, or local government entity for
official use.\4\ ATF reasoned that manufacturers must be able to
maintain an inventory of manufactured machine guns because section
922(o) authorizes machine gun transfers after May 19, 1986, to
government entities. The stockpiling authorization was specifically
granted to manufacturers because of the breadth of section 922(o)(A)'s
``possession . . . under the authority of'' a government entity, and
the fact that the statute contemplates manufacturers possessing machine
guns prior to transferring to a government entity.
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\4\ ATF Ruling 2014-1, Marking Variance for Government Defense
Contractors (Sept. 4, 2014), <a href="https://www.atf.gov/firearms/docs/ruling/2014-1-manufacturinginventory-machineguns-le-and-military/download">https://www.atf.gov/firearms/docs/ruling/2014-1-manufacturinginventory-machineguns-le-and-military/download</a> (last visited July 16, 2025) [<a href="https://perma.cc/BH8G-4VVN">https://perma.cc/BH8G-4VVN</a>].
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Pursuant to 27 CFR 479.105(d), ATF may approve applications to
transfer and register a post-86 machine gun to a qualified dealer if
the qualified dealer can establish that a government entity requests
them to demonstrate the weapon (i.e., a dealer sales sample). Section
479.105(d) provides that qualified dealers need to identify the
governmental customers who would require them to demonstrate the weapon
and provide information on the dealer's ability to fill any subsequent
orders for the machine gun. Additionally, the qualified dealer must
provide letters from the government entities expressing a need for a
particular model or interest in seeing a particular weapon demonstrated
(a ``law letter''). As described more fully below, currently the
qualified dealer can use ATF Form 5320.24, Description of Firearm and
Information on Request for Demonstration (``Form 5320.24''), as an
alternative to a law letter drafted by a potential government customer.
Applications to transfer more than one machine gun of a particular
model to a dealer must also establish the dealer's need for the
quantity of samples sought. Such dealer sales sample transfers fall
under the exception provided by 18 U.S.C. 922(o)(2)(A) as transferring
and possessing ``under the authority of the United States or any
department or agency thereof or a State, or department, agency, or
political subdivision thereof.''
In an attempt to prevent misuse of this dealer sales sample
transfer procedure, ATF issued an open letter in 2023 titled
``Machinegun Dealer Sales Sample Letters'' \5\ (``2023 open letter'')
to all federal firearms licensees (``FFLs''). The purpose of the letter
was to further explain and expand the law letter requirement contained
in 27 CFR 479.105(d).
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\5\ ATF, Open Letter to All Federal Firearms Licensees Regarding
Machinegun Dealer Sales Sample Letters (Jan. 11, 2023), <a href="https://www.atf.gov/firearms/docs/open-letter/all-ffls-jan-2023-open-letter-machinegun-dealer-sales-sample-letters/download">https://www.atf.gov/firearms/docs/open-letter/all-ffls-jan-2023-open-letter-machinegun-dealer-sales-sample-letters/download</a> [<a href="https://perma.cc/4CF9-RDQZ">https://perma.cc/4CF9-RDQZ</a>].
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The open letter explained that ATF had been receiving legally
insufficient law letters that delayed the process of transferring,
importing, and demonstrating machine guns to interested government
customers. Accordingly, the open letter explained what to include in a
law letter for it to be legally sufficient under 18 U.S.C. 922(o)(2)(A)
and 27 CFR 479.105(d). The open letter also explained that ATF would
issue a form that qualified dealers could use as an alternative to a
law letter drafted by a potential government customer. In November
2023, ATF issued Form 5320.24 for that purpose. The open letter and
accompanying form established a guide for licensees to adequately
articulate in their law letter submissions the government entity's bona
fide interest in purchasing machine guns.
II. Proposed Rule
While it is true that the dealer sales sample transfer procedure
established by 27 CFR 479.105(d) can be misused by unscrupulous dealers
or law enforcement, ATF has reviewed the regulation and the 2023 open
letter and determined that the regulation's interpretation of the 18
U.S.C. 922(o)(2)(A) exception departs from statutory language. Section
922(o)(2)(A) simply requires that transferring or possessing in this
context be ``under the authority of the United States or any department
or agency thereof or a State, or department, agency, or political
subdivision thereof.'' ATF has determined that the plain text of the
statute does not require an in-depth analysis of the government
entity's intent or reason for requesting the demonstration.
For these reasons, ATF proposes simplifying its current regulatory
language while incorporating some aspects of the open letter
requirements to prevent fraud in or abuse of the dealer sales sample
exception. Accordingly, ATF proposes to strike Sec. 479.105(d)'s
requirements that qualified dealers include the availability of the
machine gun to fill future orders and establish the need for the
requested quantity of machine guns. ATF proposes to require in Sec.
479.105(d) only the basic information necessary in a law letter for ATF
to approve a qualified dealer's application to transfer and register
post-86 machine guns. The proposed rule would also incorporate into
regulations the current process that ATF uses to confirm with the
government entity that the law letter is a bona fide request.
In conjunction with the proposed amendments to Sec. 479.105(d),
ATF would also clarify throughout this section that the term
``government entity'' refers to the United States or any department or
agency thereof, or a state,
[[Page 24487]]
or department, agency, or political subdivision thereof. To this end,
ATF is proposing to include this definition at the end of Sec.
479.105(a) and to substitute the term ``government entity'' in
paragraphs (a) and (c) where the definition is currently written in
full multiple times. Along with this technical edit to these two
paragraphs, ATF also proposes some minor plain writing edits to make
them easier to read, and a plain writing edit to the section heading
for the same reason.
Paragraph (e) of 27 CFR 479.105 also addresses 18 U.S.C.
922(o)(2)(A)'s exception regarding possessing post-86 machine guns.
Specifically, 27 CFR 479.105(e) allows persons to apply to make and
register a post-86 machine gun at the request and on behalf of a
government entity if it is established by specific information that the
machine gun is ``particularly suitable for use by Federal, State or
local governmental entities and that the making of the weapon is at the
request and on behalf of such an entity.''
As outlined above, 18 U.S.C. 922(o)(2)(A) contains no requirement
as to the intent of a requesting government entity. ATF has determined
that the clause ``particularly suitable'' is too vague and is
unnecessary to implement the statutory exception. Therefore, ATF
proposes to strike the requirement in Sec. 479.105(e) that the maker
establish that the machine gun is particularly suitable for use by a
federal, state, or local governmental entity. The amended provision
would require only that the application establish that making and
registering the post-86 machine gun is at the request and on behalf of
a federal, state, or local government entity.
Paragraph (f) of 27 CFR 479.105 allows a licensee to orderly
liquidate inventory when going out of business. Specifically, it allows
a qualified manufacturer, importer, or dealer to transfer post-86
machine guns to a federal, state, or local governmental entity, or
another qualified manufacturer, importer, or dealer, when the qualified
licensee discontinues business. Over time, ATF has received inquiries
concerning the procedure to transfer post-86 machine guns by licensees
that relinquish special occupational taxpayer (``SOT'') status but
remain in business as an FFL under the GCA. As currently written, the
regulation can be interpreted to require that licensees completely
discontinue all business under both the GCA and NFA before they are
eligible to avail themselves of this process under Sec. 479.105(f).
Because the relevant inquiry is whether the licensee is
discontinuing its NFA business, not whether the licensee intends to
relinquish its GCA license as well, ATF has allowed licensees to
maintain their GCA license as they transfer post-86 machine guns under
Sec. 479.105(d) when they intend to discontinue the NFA side of their
business. Accordingly, ATF has determined that it is necessary to
clarify in Sec. 479.105(f) that a licensee may transfer post-86
machine guns when they discontinue their NFA firearms business and that
the licensee can relinquish the SOT or let it expire while continuing
business under a GCA license.
To expedite the transfer process, ATF further proposes to add
language to Sec. 479.105(f) to clarify the process for a licensee who
wishes to transfer post-86 machine guns upon relinquishing SOT status.
Under the proposed rule, licensees would use ATF Form 5320.3,
Application to Transfer/Register NFA Firearm (Tax Exempt) to Special
Occupational Taxpayer (``Form 3'') to both request approval to transfer
their firearms and notify ATF of their intent to discontinue their NFA
business. This change would obviate the need for these SOTs to provide
two separate notices to ATF. Accordingly, if this rule is finalized as
proposed, ATF would update Form 3 to include how SOTs may indicate that
the transfer is pursuant to Sec. 479.105(f)'s provision on
discontinuing their NFA business.
Last, the industry frequently encounters scenarios in which a
United States government entity wishes to furnish its own machine guns
to a licensee for a number of reasons, such as further manufacturing,
repairing, or testing. Because the United States government is not
required to register its machine guns under the NFA, qualified
licensees, who generally must have machine guns in their possession
registered, currently may not lawfully receive U.S. government-
furnished machine guns for such work. Accordingly, ATF proposes to
create a new paragraph (g) under Sec. 479.105 clarifying that a
contract or letter from the government department or agency, written on
the agency's or department's letterhead, may authorize the licensee to
receive and possess the government-furnished, unregistered, NFA firearm
for such work, as long as the letter or contract also stipulates that
the firearm will be returned to the government.
III. Statutory and Executive Order Review
A. Executive Orders 12866 and 13563
Executive Order 12866 (Regulatory Planning and Review) directs
agencies to assess the costs and benefits of available regulatory
alternatives and, if regulation is necessary, to select regulatory
approaches that maximize net benefits.
Executive Order 13563 (Improving Regulation and Regulatory Review)
emphasizes the importance of agencies quantifying both costs and
benefits, reducing costs, harmonizing rules, and promoting public
flexibility.
This proposed rule would amend 27 CFR 479.105 to bring regulations
implementing the general statutory restriction on the possession and
transfer of machine guns in line with the statute and to reduce burdens
on the industry by simplifying the information licensees would need to
provide on a law letter in order to receive approval of an application
to transfer and register a post-86 machine gun. It would also reduce
the burden on licensees to submit two notices when discontinuing their
NFA business. The rule would instead allow them to use Form 3 to both
request approval to transfer their firearms and notify ATF of their
intent to discontinue their NFA business.
This proposed rule would provide qualitative benefits to the
industry by providing more flexibility in complying with statutes and
existing regulatory standards, but ATF does not have sufficient
information to calculate quantifiable savings. Therefore, ATF requests
more information from the public regarding economic effects this rule
may have on the public and the regulated industries. The Office of
Management and Budget (``OMB'') has determined that this rule would not
be a ``significant regulatory action'' under Executive Order 12866.
Therefore, it did not review this rule.
B. Executive Order 14192
Executive Order 14192 (Unleashing Prosperity Through Deregulation)
requires an agency, unless prohibited by law, to identify at least ten
existing regulations to be repealed or revised when the agency publicly
proposes for notice and comment or otherwise promulgates a new
regulation that qualifies as an Executive Order 14192 regulatory action
(defined in OMB Memorandum M-25-20 as a final significant regulatory
action as defined in section 3(f) of Executive Order 12866 that imposes
total costs greater than zero). In furtherance of this requirement,
section 3(c) of Executive Order 14192 requires that any new incremental
costs associated with such new regulations must, to the extent
permitted by law, also be offset by eliminating existing costs
associated with at least ten prior regulations. However, this proposed
[[Page 24488]]
rule would not be an Executive Order 14192 regulatory action because it
is not a significant regulatory action as defined by Executive Order
12866 and it would not impose total costs greater than zero. This
proposed rule would bring the existing regulations on the possession
and transfer of machine guns in line with the statute and would reduce
burdens on the industry by simplifying the information licensees would
need to provide on a law letter in order to receive approval of an
application to transfer and register a post-86 machine gun. It would
also reduce the burden on licensees when discontinuing their NFA
business. In addition, because this information would streamline
requirements for FFLs, ATF expects this rule, if finalized as proposed,
to qualify as an Executive Order 14192 deregulatory action (defined by
OMB Memorandum M-25-20 as a final action that imposes total costs less
than zero).
C. Executive Order 14294
Executive Order 14294 (Fighting Overcriminalization in Federal
Regulations) requires agencies promulgating regulations with criminal
regulatory offenses potentially subject to criminal enforcement to
explicitly describe the conduct subject to criminal enforcement, the
authorizing statutes, and the mens rea standard applicable to each
element of those offenses. This proposed rule would not create a
criminal regulatory offense and is thus exempt from Executive Order
14294 requirements.
D. Executive Order 13132
This proposed rule would not have substantial direct effects on the
states, the relationship between the federal government and the states,
or the distribution of power and responsibilities among the various
levels of government. Therefore, in accordance with section 6 of
Executive Order 13132 (Federalism), the Director has determined that
this proposed rule would not impose substantial direct compliance costs
on state and local governments, preempt state law, or meaningfully
implicate federalism. It thus does not warrant preparing a federalism
summary impact statement.
E. Executive Order 12988
This proposed rule meets the applicable standards set forth in
sections 3(a) and 3(b)(2) of Executive Order 12988 (Civil Justice
Reform).
F. Regulatory Flexibility Act
Under the Regulatory Flexibility Act (``RFA''), 5 U.S.C. 601-612,
agencies are required to conduct a regulatory flexibility analysis of
any proposed rule subject to notice-and-comment rulemaking requirements
unless the agency head certifies, including a statement of the factual
basis, that the proposed rule would not have a significant economic
impact on a substantial number of small entities. Small entities
include certain small businesses, small not-for-profit organizations
that are independently owned and operated and are not dominant in their
fields, and governmental jurisdictions with populations of less than
50,000.
The Director certifies, after consideration, that this proposed
rule would not have a significant economic impact on a substantial
number of small entities. This proposed rule would simplify the
regulatory requirements for machine gun transfers to a dealer in
response to a request by a government entity, and would reduce burdens
when a licensee discontinues its NFA business. This proposed rule would
therefore not impose any costs and would be deregulatory.
G. Unfunded Mandates Reform Act of 1995
This proposed rule does not include a federal mandate that might
result in the expenditure by state, local, and tribal governments, in
the aggregate, or by the private sector, of $100 million or more in any
one year, and it would not significantly or uniquely affect small
governments. Therefore, ATF has determined that no actions are
necessary under the provisions of the Unfunded Mandates Reform Act of
1995.
H. Paperwork Reduction Act of 1995
Under the Paperwork Reduction Act of 1995 (``PRA''), 44 U.S.C.
3501-3521, agencies are required to submit to OMB, for review and
approval, any information collection requirements a rule creates or any
impacts it has on existing information collections. An information
collection includes any reporting, record-keeping, monitoring, posting,
labeling, or other similar actions an agency requires of the public.
See 5 CFR 1320.3(c). This proposed rule would impact two existing
information collections under the PRA. One information collection that
would be impacted by this proposed rule is OMB control number 1140-
0124: Description of Firearm and Information on Request for
Demonstration, which includes ATF Form 5320.24. This proposed rule
would require qualified dealers to submit a law letter from the
government entity to demonstrate that the transfer to, and possession
by, the dealer is occurring under the authority of the government
entity. This is already part of the existing process, but the
rulemaking reduces the amount of information that would be provided in
the letter. In addition, the proposed rule would eliminate Form 5320.24
as an alternative to submitting the law letter. As a result, the
existing information collection would be revised to remove the Form
5320.24. This change would reduce this information collection's time
burden because the rule would reduce the amount of information the
dealers must submit for this purpose, but it would not have any other
effect.
This proposed rule would also impact OMB control number 1140-0013:
Application to Transfer/Register NFA Firearm (Tax Exempt) to Special
Occupational Taxpayer, which includes ATF Form 5320.3 (``Form 3'').
Currently, this information collection requires licensees to use this
form as the mechanism by which they request approval to transfer NFA
firearms and register them to another qualified licensee when they
discontinue their NFA business. This proposed rule would require
qualified licensees to also use Form 3 to notify ATF of their intent to
discontinue their NFA firearms business, prior to the lapse or
relinquishment of their special occupational taxpayer status. The form
would be updated to allow licensees to notify ATF of their intent to
discontinue and the planned date for doing so, thereby obviating the
current requirement that they provide that information to ATF
separately. The hourly burden would be transferred from a separate
notice method to a statement in this form, so this change would reduce
this collection's time burden, if finalized as proposed, by cutting out
the time it would take to complete a separate notice while also
completing this Form to transfer the firearms.
I. Congressional Review Act
This proposed rule would not be a major rule as defined by the
Congressional Review Act, 5 U.S.C. 804.
IV. Public Participation
A. Comments Sought
ATF requests comments on the proposed rule from all interested
persons. ATF specifically requests comments on the clarity of this
proposed rule and how it may be made easier to understand. In addition,
ATF requests comments on the costs or benefits of the proposed rule and
on the appropriate methodology and data for calculating those costs and
benefits.
[[Page 24489]]
All comments must reference this document's RIN 1140-AA75 and, if
handwritten, must be legible. If submitting by mail, you must also
include your complete first and last name and contact information. If
submitting a comment through the federal e-rulemaking portal, as
described in section IV.C of this preamble, you should carefully review
and follow the website's instructions on submitting comments. Whether
you submit comments online or by mail, ATF will post them online. If
submitting online as an individual, any information you provide in the
online fields for city, state, zip code, and phone will not be publicly
viewable when ATF publishes the comment on <a href="https://www.regulations.gov">https://www.regulations.gov</a>.
However, if you include such personally identifying information
(``PII'') in the body of your online comment, it may be posted and
viewable online. Similarly, if you submit a written comment with PII in
the body of the comment, it may be posted and viewable online.
Therefore, all commenters should review section IV.B of this preamble,
``Confidentiality,'' regarding how to submit PII if you do not want it
published online. ATF may not consider, or respond to, comments that do
not meet these requirements or comments containing excessive profanity.
ATF will retain comments containing excessive profanity as part of this
rulemaking's administrative record, but will not publish such documents
on <a href="https://www.regulations.gov">https://www.regulations.gov</a>. ATF will treat all comments as
originals and will not acknowledge receipt of comments. In addition, if
ATF cannot read your comment due to handwriting or technical
difficulties and cannot contact you for clarification, ATF may not be
able to consider your comment.
ATF will carefully consider all comments, as appropriate, received
on or before the closing date.
B. Confidentiality
ATF will make all comments meeting the requirements of this
section, whether submitted electronically or on paper, and except as
provided below, available for public viewing on the internet through
the federal e-rulemaking portal, and subject to the Freedom of
Information Act (5 U.S.C. 552). Commenters who submit by mail and who
do not want their name or other PII posted on the internet should
submit their comments with a separate cover sheet containing their PII.
The separate cover sheet should be marked with ``CUI//PRVCY'' at the
top to identify it as protected PII under the Privacy Act. Both the
cover sheet and comment must reference this RIN 1140-AA75. For comments
submitted by mail, information contained on the cover sheet will not
appear when posted on the internet, but any PII that appears within the
body of a comment will not be redacted by ATF and may appear on the
internet. Similarly, commenters who submit through the federal e-
rulemaking portal and who do not want any of their PII posted on the
internet should omit such PII from the body of their comment and in any
uploaded attachments. However, PII entered into the online fields
designated for name, email, and other contact information will not be
posted or viewable online.
A commenter may submit to ATF information identified as proprietary
or confidential business information by mail. To request that ATF
handle this information as controlled unclassified information
(``CUI''), the commenter must place any portion of a comment that is
proprietary or confidential business information under law or
regulation on pages separate from the balance of the comment, with each
page prominently marked ``CUI//PROPIN'' at the top of the page.
ATF will not make proprietary or confidential business information
submitted in compliance with these instructions available when
disclosing the comments that it receives, but will disclose that the
commenter provided proprietary or confidential business information
that ATF is holding in a separate file to which the public does not
have access. If ATF receives a request to examine or copy this
information, it will treat it as any other request under the Freedom of
Information Act (5 U.S.C. 552). In addition, ATF will disclose such
proprietary or confidential business information to the extent required
by other legal process.
C. Submitting Comments
Submit comments using either of the two methods described below
(but do not submit the same comment multiple times or by more than one
method). Hand-delivered comments will not be accepted.
<bullet> Federal e-rulemaking portal: ATF recommends that you
submit your comments to ATF via the federal e-rulemaking portal at
<a href="https://www.regulations.gov">https://www.regulations.gov</a> and follow the instructions. Comments will
be posted within a few days of being submitted. However, if large
volumes of comments are being processed simultaneously, your comment
may not be viewable for up to several weeks. Please keep the comment
tracking number that is provided after you have successfully uploaded
your comment.
<bullet> Mail: Send written comments to the address listed in the
ADDRESSES section of this document. Written comments must appear in
minimum 12-point font size, include the commenter's first and last name
and full mailing address, and may be of any length. See also section
IV.B of this preamble, ``Confidentiality.''
Disclosure
Copies of this proposed rule and the comments received in response
to it are available through the federal e-rulemaking portal, at <a href="https://www.regulations.gov">https://www.regulations.gov</a> (search for RIN 1140-AA75).
Severability
Consistent with the Administrative Procedure Act, the issues raised
in this proposed rule may be finalized, or not, independently of each
other, after consideration of comments received. ATF has determined
that this proposed rule implements and is fully consistent with
governing law. However, in the event that this proposed rule is
finalized, if any provision of that final rule, an amendment or
revision made by that rule, or the application of such provision or
amendment or revision to any person or circumstance, is held to be
invalid or unenforceable by its terms, the remainder of that final
rule, the amendments or revisions made by that rule, and application of
the provisions of the rule to any person or circumstance shall not be
affected and shall be construed so as to give them the maximum effect
permitted by law.
List of Subjects in 27 CFR Part 479
Administrative practice and procedure, Arms and munitions, Exports,
Imports, Military personnel, Penalties, Reporting and record-keeping
requirements, Seizures and forfeitures, Taxes, Transportation.
For the reasons discussed in the preamble, ATF proposes to amend 27
CFR part 479 as follows:
PART 479--MACHINE GUNS, DESTRUCTIVE DEVICES, AND CERTAIN OTHER
FIREARMS
0
1. The authority citation for 27 CFR part 479 continues to read as
follows:
Authority: 26 U.S.C. 5801-5812; 26 U.S.C. 7801; 26 U.S.C. 7805.
0
2. Amend Sec. 479.105 by:
0
a. Revising the section heading and paragraphs (a), (c), (d), (e), and
(f); and
0
b. Adding paragraph (g).
The revisions and addition read as follows:
[[Page 24490]]
Sec. 479.105 Transferring and possessing machine guns.
(a) General. As provided by 26 U.S.C. 5812 and 26 U.S.C. 5822, an
application to make or transfer a firearm must be denied if making,
transferring, receiving, or possessing the firearm would place the
maker or transferee in violation of law. Section 922(o), Title 18,
U.S.C., makes it unlawful for any person to transfer or possess a
machine gun, except that a government entity may transfer, receive, or
possess a machine gun and persons may transfer to them under the
government entity's authority; or persons may lawfully transfer or
possess a machine gun that was lawfully possessed before May 19, 1986.
Therefore, notwithstanding any other provision of this part, no
application to make, transfer, or import a machine gun will be approved
except as provided by this section. For purposes of this section, the
term ``government entity'' means the United States or any department or
agency thereof, or a state, or a department, agency, or political
subdivision thereof.
(b) * * * * *
(c) Importing and manufacturing. Subject to compliance with the
provisions of this part, importers and manufacturers qualified under
this part may import and manufacture machine guns on or after May 19,
1986, to sell or distribute them to any government entity, or for
qualified dealers to use as sales samples pursuant to paragraph (d) of
this section. Importers and manufacturers may only register and
subsequently transfer machine guns they imported or manufactured under
this provision if they sell or distribute such weapons to a government
entity for its official use, and do so solely for that purpose. Subject
to compliance with the provisions of this part, qualified manufacturers
may manufacture machine guns on or after May 19, 1986, to export them
in compliance with the Arms Export Control Act (22 U.S.C. 2778) and
implementing regulations prescribed by the Department of State.
(d) Transferring to, and possession by, qualified dealers.
(1) Subject to compliance with the provisions of this part, ATF
will approve applications to transfer and register a machine gun
manufactured or imported on or after May 19, 1986, to dealers qualified
under this part if the dealers establish by specific information that
they are requesting to transfer and possess the machine gun under a
government entity's authority.
(2) Dealers may show they have such authority by a letter from a
government entity, which must:
(i) Be written on the government entity's letterhead;
(ii) Include a request from the government entity that the dealer
obtain a particular machine gun;
(iii) Affirm that transferring to the dealer, and the dealer
possessing the machine gun is under the authority of the requesting
government entity; and
(iv) Be signed by a person with authority to sign on behalf of the
government entity, to include such person's contact information.
(3) ATF will confirm with the signing government official that the
letter is a bona fide request by the government entity.
(e) Making machine guns on or after May 19, 1986. Subject to
compliance with the provisions of this part, ATF will approve
applications to make and register machine guns on or after May 19,
1986, for the benefit of a government entity if the applicant
establishes by specific information that they are making the weapon at
the request and on behalf of the government entity. Making a weapon on
behalf of a government entity includes making weapons intended for
actual sale to a government entity, developing an invention or
prototype for possible future use by a government entity, and making a
weapon in connection with research and development on behalf of a
government entity.
(f) Discontinuing NFA business. Because 18 U.S.C. 922(o) makes it
unlawful to transfer or possess a machine gun except as provided in the
law, any qualified manufacturer, importer, or dealer intending to
discontinue business involving firearms regulated by this part must
notify ATF of their intent before relinquishing or allowing their
special occupational taxpayer status to lapse. The licensee must also
transfer, in compliance with the provisions of this part, any machine
gun manufactured or imported after May 19, 1986, to a government entity
or to a qualified manufacturer, importer, or dealer. The licensee must
use ATF Form 5320.3, Application to Transfer/Register NFA Firearm (Tax-
Exempt) to Special Occupational Taxpayer (``Form 3'') to notify ATF
that they are discontinuing business and transferring the firearms.
(g) Transfers from U.S. government to a qualified licensee. The
U.S. government may transfer an unregistered machine gun in its
possession to any qualified licensee pursuant to a valid government
contract or letter drafted on government letterhead. The contract or
letter must specify that the U.S. government department or agency is
transferring the government-furnished machine gun to the licensee to
possess it under the department or agency's authority for a government
purpose. Such purpose may include further manufacture, repair, or
testing. For purposes of this paragraph, the licensee does not need to
register the machine gun while they possess the machine gun, provided
the government contract or letter states that the machine gun will be
subsequently returned to the U.S. government.
Robert Cekada,
Director.
[FR Doc. 2026-08928 Filed 5-5-26; 8:45 am]
BILLING CODE 4410-FY-P
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</html>Indexed from Federal Register on May 6, 2026.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.