United States Department of Justice Bureau of Alcohol, Tobacco, Firearms and Explosives ATF Inspections of Licensed Importers and Manufacturers Firearms Import/Export Conference July 31 – August 1, 2012

United States Department of Justice Bureau of Alcohol, Tobacco, Firearms and Explosives Active Federal Firearms Licenses TypeNumberPercent 01-Dealer50, Pawnbroker7, Collector61, MFG of Ammo2, MFG of Firearms6, Importer DD Dealer DD MFG DD Importer Total129, % July 2012

United States Department of Justice Bureau of Alcohol, Tobacco, Firearms and Explosives Federal Firearms Licenses Market Share

United States Department of Justice Bureau of Alcohol, Tobacco, Firearms and Explosives Importers (mid year) Inspections Performed (Approved) Others (Denied/Abandon/Withdrawn) Application Inspections Manufacturers (mid year) Inspections Performed (Approved)1,3711,8941,133 Others (Denied/Abandon/Withdrawn)

United States Department of Justice Bureau of Alcohol, Tobacco, Firearms and Explosives Compliance Inspections Conducted Importers Result (mid) No Violations Report of Violations Warning Letter Warning Conference Revoked/Deny Renewal Surr. ILO Revocation OOB/Not ILO Rev Other Total100.00% Percent

United States Department of Justice Bureau of Alcohol, Tobacco, Firearms and Explosives Compliance Inspections Conducted Manufacturers Result (mid) No Violations Report of Violations Warning Letter Warning Conference Revoked/Deny Renewal Surr. ILO Revocation OOB/Not ILO Rev Other Total100.00% Percent

United States Department of Justice Bureau of Alcohol, Tobacco, Firearms and Explosives MOST FREQUENTLY CITED FIREARMS VIOLATIONS - Importers YEAR June 2012FY 2011FY 2010 CitationViolation DescriptionRANK 27 CFR (e) Failure to timely record information in bound record (A&D record) CFR (a) - (b) Failure to complete forms as indicated in instructions (this violation is often cited when the licensee failed to properly complete a form, but there is not a separate regulatory citation addressing the omitted or misdocumented item) CFR (c)(1) Transferee did not properly complete Section A, F CFR (c)(3)(iv) Licensee did not record on F 4473 the date on which NICS was contacted CFR (c)(5)Licensee did not sign and date F CFR aLicensee failed to report multiple handgun sales-- 5 Importers

United States Department of Justice Bureau of Alcohol, Tobacco, Firearms and Explosives MOST FREQUENTLY CITED FIREARMS VIOLATIONS - Manufacturers YEAR June 2012FY 2011FY 2010 CitationViolation DescriptionRANK 27 CFR (c)(1) Transferee did not properly complete Section A, F CFR (a) - (b) Failure to complete forms as indicated in instructions (this violation is often cited when the licensee failed to properly complete a form, but there is not a separate regulatory citation addressing the omitted or misdocumented item) CFR (e) Failure to timely record information in bound record (A&D record) CFR (c)(3)(iv) Licensee did not record on F 4473 the date on which NICS was contacted CFR aLicensee failed to report multiple handgun sales CFR (c)(5)Licensee did not sign and date F Manufacturers

United States Department of Justice Bureau of Alcohol, Tobacco, Firearms and Explosives Missing Firearms (mid)Total Initial Inventory Check 1,2781, ,391 After Reconciliation Importers Manufacturers (mid)Total Initial Inventory Check 15,30399,8143,622118,739 After Reconciliation 3,7651, ,886

United States Department of Justice Bureau of Alcohol, Tobacco, Firearms and Explosives Field IOIs FY 2012FY 2011FY 2010FY 2009FY 2008FY

United States Department of Justice Bureau of Alcohol, Tobacco, Firearms and Explosives Additional Activities Outreach Outreach Firearms & Explosives theft/loss Firearms & Explosives theft/loss ATF Magazines ATF Magazines Special requests Special requests Collateral Inspections Collateral Inspections Initiatives Initiatives Federal, State & local support Federal, State & local support

United States Department of Justice Bureau of Alcohol, Tobacco, Firearms and Explosives Performance Measures Industry members inspected in the last five years (application/compliance) Industry members inspected in the last five years (application/compliance) Missing firearms from inventory (initial and after reconciliation) Missing firearms from inventory (initial and after reconciliation) Annual compliance inspections completed Annual compliance inspections completed % of license applications acted upon within authorize time frames % of license applications acted upon within authorize time frames % of ATF license actions upheld by judicial rulings. % of ATF license actions upheld by judicial rulings.

United States Department of Justice Bureau of Alcohol, Tobacco, Firearms and Explosives Revocation Process Notice of Revocation issued Notice of Revocation issued 15 days to request hearing 15 days to request hearing No hearing - Final Notice of Revocation issued No hearing - Final Notice of Revocation issued If hearing is requested If hearing is requested Hearing officer makes recommendation to DIO Hearing officer makes recommendation to DIO Written notification of decision Written notification of decision

United States Department of Justice Bureau of Alcohol, Tobacco, Firearms and Explosives Seek judicial review within 60 days of the receipt of the Final Notice of Revocation Seek judicial review within 60 days of the receipt of the Final Notice of Revocation Appeal to the relevant U.S. Circuit Court Appeal to the relevant U.S. Circuit Court Appeal to have the case reviewed by the entire panel of judges on that circuit Appeal to have the case reviewed by the entire panel of judges on that circuit Appeal to the Supreme Court. Appeal to the Supreme Court. Denials of applications - no final notice is issued Denials of applications - no final notice is issued Submit renewal application Submit renewal application Revocation Process

United States Department of Justice Bureau of Alcohol, Tobacco, Firearms and Explosives Curtis W. Gilbert Office of Field Operations Deputy Assistant Director Industry Operations