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Industry News: ATK to Continue Running Lake City Ammo Plant
By Robert Hausman

ATK has been notified by the U.S. Army that it was selected for both the production of ammunition and continued operation and maintenance of the Lake City Army Ammunition Plant in Independence, Mo. The initial contract period is seven years, and if all award terms are exercised, the contracts would cover a 10 year period.

ATF Inspection Results by Year

Importers:

No Violations – 2006 52%, 2007 52.75%, 2008 58.37%, 2009 49.37%, 2010 59.03%

Report of Violations – 2006 9.71%, 2007 12.09%, 2008 9.73%, 2009 7.17%, 2010 9.69%

Warning Letter – 2006 6.29%, 2007 9.34%, 2008 9.34%, 2009 4.64%, 2010 7.49%

Warning Conference – 2006 8.57%, 2007 9.89%, 2008 5.84%, 2009 9.28%, 2010 4.85%

Revocation – 2006 1.14%, 2007 .55%, 2008 1.56%, 2009 .00%, 2010 .44%

Manufacturers:

No Violations – 2006 57.29%, 2007 58.5%, 2008 61.13%, 2009 51.68%, 2010 54.95%

Report of Violations – 006 12.94%, 2007 12.32%, 2008 9.84%, 2009 9.62%, 2010 11.13%

Warning Letter – 2006 6.16%, 2007 7.18%, 2008 7.38%, 2009 7.72%, 2010 9.59%

Warning Conference – 2006 5.54%, 2007 5.77%, 2008 5.9%, 2009 5.37%, 2010 7.32%

Revocation – 2006 1.03%, 2007 1.25%, 2008 .12%, 2009 .22%, 2010 .41%

The most common violation found on the part of Importers was failure to timely record information in the bound A&D record.

The most common violation on the part of manufacturers was also failure to timely or accurately record information in the bound A&D record in addition to improper completion of Section A of the Form 4473.

Among Importers, initial missing firearms in 2009 were 2,669 and final missing firearms (after a search was conducted) was 701. In 2010 1,278 firearms were initially missing during inspections, but after resolution a total of only 63 were found to be missing.

Among Manufacturers, some 20,503 firearms were initially reported missing in 2009, but only 11,178 were missing after final resolution. In 2010, 15,303 firearms were reporting missing initially, but only 3,765 after final resolution.

Northrop Grumman Granted Relief from Firearms Disabilities

Northrop Grumman Guidance and Electronics Company, Inc. (NGGECI) (formerly Litton Systems, Inc.), a subsidiary of Northrop Grumman Corporation (NGC), has been granted relief from the disabilities imposed by Federal laws by the Director of ATF with respect to the acquisition, transfer, receipt, shipment, or possession of firearms.

Since 1992, Congress has eliminated funding for ATF to investigate or act upon applications for relief from federal firearms disabilities. However, since 1993 Congress has authorized funding for ATF to investigate and act upon applications filed by corporations for relief from federal firearms disabilities.

An application to ATF for relief from federal firearms disabilities under 18 U.S.C. 925(c) was submitted for NGGECI. In the matter under review, NGGECI, a subsidiary of NGC, had been convicted in United States District Court for violations of 18 U.S.C. 2, 287, 1001, and 1341 in 1986 and, in 1994, for violations of 18 U.S.C. 2, 371, 641, and 1343.

Pursuant to 18 U.S.C. 925(c), NGGECI, is granted relief from the disabilities imposed by Federal laws with respect to the acquisition, transfer, receipt, shipment, or possession of firearms as a result of these convictions.

USITC Firearms and Ammunition Exports July 2012

Overall U.S. exports (in units) in six sporting arms and ammunition categories decreased 29.8 percent in July 2012 compared to July 2011. July 2012 exported units in tracked categories totaled 66.0 million, down from 94.0 million reported in July 2011.

Handgun exports decreased 40.6% from 27,043 to 16,060 units.

Within the handgun category, Pistol export units decreased 41.1% from 25,275 to 14,889 units while imported Revolver units dropped 33.8% from 1,768 to 1,171 units.

Rifle exports were down 9.7% from 27,275 to 24,633 units.

Telescopic Sights for Rifles (HTS code 9013102000, which includes military use) rose 56% from 36,794 units to 57,411.

The Shotgun category posted a 32.7% increase in exported units from 9,948 to 13,205.

The Muzzleloader category increased 21.6% from 984 to 1,197 units exported.

The Other Cartridges (excluding Shotgun cartridges) category dropped 36.1% from 91.7 million to 58.6 million units exported.

The Shotgun Cartridges category rose 240.8% rising to 7.3 million units as compared to last years 2.2 million.

(Source: U.S. International Trade Commission)

July 2012 Imports Up, Exports Down

Overall U.S. imports (in units) in six sporting arms and ammunition categories increased 36.8% in July 2012 compared to July 2011. July 2012 imported units in tracked categories totaled 206.2 million, up from 150.7 million reported in July 2011. Overall U.S. exports (in units) in six sporting arms and ammunition categories decreased 29.8 percent in July 2012 compared to July 2011. July 2012 exported units in tracked categories totaled 66.0 million, down from 94. million reported in July 2011. All figures are sourced from U.S. International Trade Commission (USITC).

Handgun imports increased 59.7 percent from 165,205 to 263,830 units. Within the handgun category, Pistol import units increased 59.8 percent from 144,990 to 231,735 units while imported Revolver units rose 58.8 percent from 20,215 to 32,095 units.

Rifle imports were up 59.6 percent from 55,778 to 89,049 units. As of July 10, 2012, this category has been adjusted to exclude HTS codes 9303304010 & 9303308005 (Telescopic Sights Imported with Rifles).

Telescopic Sights Imported with Rifles (HTS codes 9303304010 and HTS 9303308005, defined as telescopic sights or other optical devices suitable for use with arms, if mounted on a firearm or entered with the firearm on which they are designed to be mounted) increased 143.6 percent from 1,771 units to 4,314.

Shotgun category posted a 45.3 percent increase in imported units from 52,986 to 77,012.

Muzzleloader category rose 33.3 percent from 14,152 to 18,863 units.

Other Cartridges (excluding Shotgun cartridges) category increased 33.4 percent from 141.5 million to 188.7 million units.

Shotgun Cartridges category increased 91.2 percent rising to 17.0 million units as compared to last years’ 8.9 million.

(Source: U.S. International Trade Commission)

Beware of Who Has Your FFL Copies

Licensed firearms dealers need to be careful when furnishing copies of their licenses to consumers as the following story illustrates.

Troy Haruki Hamura of Lihue Kauai, Hawaii, a postal worker, was recently charged with ordering a rifle from a Florida gun dealer using a federal firearms license without the licensee’s permission. When the dealer shipped the rifle to the licensee through the postal service, Hamura obtained the parcel containing the rifle and later sold it.

A later search of his home found an illegal machine gun. If convicted, Hamura faces 10-years in prison.

Retailer & Wife Arrested for Violations

Robert Jacaman, Sr. and his wife Veronica, operators of the Jacaman Guns & Ammo business of Laredo, Texas have been arrested following an 11-count federal indictment alleging a variety of violations associated with the selling of firearms and ammunition.

The indictment charges that they conspired to provide ammunition and firearm magazines for smuggling into Mexico, selling ammunition to illegal aliens and to a convicted felon and selling an assault rifle to a convicted felon.

Specifically, the indictment alleges they sold thousands of rounds of .223 caliber ammunition to an illegal alien, 1,000 rounds of .223 and 1,000-rounds of 7.62x39mm to an alien admitted into the U.S. under a nonimmigrant visa as well as two instances of selling hundreds of rounds of .223 ammo to a convicted felon. They were said to have sold a CMMG Model 45A rifle to a convicted felon. They were also charged with selling additional rounds of ammunition and 788 high-capacity assault rifle magazines for illegal export.

All firearms, ammunition and magazines referenced in the indictment were intercepted before being delivered to Mexico. The Jacamans face up to 10 years in prison on each of the illegal sale and exportation charges.

ATF Offers $5,000 Reward in Retail Break-In

ATF is offering a reward of up to $5,000 for information leading to the arrest and conviction of the persons responsible for the theft of firearms occurring at federal firearms licensee (FFL) Buck-N-Bass located at 4901 Summer Oak Drive, Gwinnett County, Ga. on September 14th.

During the early morning hours on September 14, Buck-N-Bass was burglarized by unknown persons. The suspect(s) used a stolen pickup truck to smash into the front door and wall of the business gaining entry. Numerous firearms consisting of handguns and rifles were stolen.

The author publishes two of the small arms industry’s most widely read trade newsletters. The International Firearms Trade covers the world firearms scene, and The New Firearms Business covers the domestic market. He may be reached at: FirearmsB@aol.com.


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