ATF SLIDES ON BRACE RULE

The Bureau of Alcohol, Tobacco, Firearms & Explosives (BATFE or ATF) conducted webinars in the wake of the publishing of ATF Final Rule 2021R-08F, yesterday. Although the final rule was announced on 01/13/2023, the rule did not become effective until 01/31/2023 when it was published in the National Register.

Take aways from the webinar:

1. Possessors of what is now classified as a NFA short barreled rifle or SBR (previously, a braced pistol, AR-style pistol or AR-caliber pistol ) have until 05/31/2023 to bring their firearm into compliance with the new rule. There are _ options for coming into compliance.

     ° Register the firearm as a SBR using ATF E-Form 1. 

     ° Remove and sell, give away, destroy, or otherwise divest themselves of the brace to avoid being in "constructive possession" of an unregistered NFA firearm.

     ° Replace the barrel with a 16 inch barrel, thus converting the firearm to a non-NFA rifle.

     ° Destroy the firearm.

     ° Turn the firearm into the ATF.

2. Besides a brace that affords the ability to shoulder fire the firearm, the ATF also indicated receivers fitted with magnified optics or scopes are an indication that a firearm is an SBR.

3. For those who choose to register the firearm as a SBR, the ATF will accept the Tax Forebarrence E-Form 1 until 05/31/2023. The form does not have to be approved by 05/31/2023, only submitted in order to be in compliance with the rule. The possessor of the firearm MUST maintain in their possession a copy of proof of submission until final determination is received.

4. The waiving of the tax is only during the grace period and only for those firearms possessed at the time of the rule change. If the firearm came into the possession of the owner after 01/31/2023, then the ATF says the tax must be paid.

5. Tax forebarrence is only for registering the firearm. All transfers that occur after the firearm is registered will incur the normal taxes.

6. As long as the firearm has the name of the manufacturer, the model, the caliber (if one is

specified) and the serial number present on the

receiver, no additional markings are required if the firearm is submitted for registration by

05/31/2023.

7. Purchase and transfer of AR receivers that include a brace, but do have an upper receiver with a barrel, are not restricted by this rule.

8. Effective 01/31/2023, Type 01 (Dealer), 02 (Pawn Broker), and Type 07 (Mannufacture) FFLs are required to have a Class 3 Special Occupancy Tax stamp to possess or transfer a firearm classified as a SBR under this rule.

A PDF copy of the slide stack presented during the webinar, which contains links to additional resources related to NFA registration and FAQs can be found at:

https://www.atf.gov/rules-and-regulations/docs/undefined/finalrule2021r-08f508pdf/download