Better Late than Never: NFA Form 3 Returns to eForms

The ATF resumed acceptance of electronic Form 3 submissions via their eForms portal. The dealer-to-dealer forms for NFA transfers had previously been available on eForms, but the ATF’s inability to handle submission load forced the agency to shutter the service almost two years ago. Since then, some applications have returned, including Form 1, which allows non-licensed individuals to make an NFA firearm or silencer. For the most part, though, the NFA game has been a paper-intensive affair since early 2014.

ATF’s release comes at an interesting, or perhaps all-too-convenient, time. This Wednesday, the ATF’s new NFA rules (41F) are set to take effect. The new procedures impose significant new paperwork requirements on all NFA purchasers and will render current electronic Form 1s obsolete until the ATF can update eForms (don’t hold your breath on this one). The changes are expected to significantly slow sales of NFA items over the next few months.

As anticipated, NFA enthusiasts have been on a feeding frenzy since the changes were announced in January. Many dealers and distributors have struggled to keep the product in stock. While manufacturing capacity has certainly been strained, the ATF’s inability to approve paper Form 3s in a timely manner has been a serious roadblock. When approvals take as long as 90 days, keeping inventory on the shelves can be quite a challenge. There is no doubt that many dealers would have appreciated an electronic option for Form 3s prior to now.

The good news is that if past experience holds true today, we should see a substantial reduction in Form 3 approval times. Generally, eForms (when they work) are quicker than paper ones, and with other NFA submissions likely slowing, it is reasonable to expect that Form 3 processing times will improve. Moreover, an update sent out on January 15 indicated that the ATF plans to introduce automatic approvals to electronic Forms 2 and 3. While no timeline has been offered for this functionality, it only makes sense. There is absolutely no reason that transfers between two established licensees should take as many as three months to complete.

As you might expect, I’ll be following these developments closely. ATF has indicated a desire to adapt eForms to the new 41F rules, and I am hopeful that we will eventually see a return of electronic Forms 1 and 4. For now, the reintroduction of Form 3 to the eForms system is a positive, if small, a sign that development continues inside the ATF’s portal.