C:F:N:CL

                                            5320/Nemoll



   MEMORANDUM TO: Area Supervisor



            FROM: Acting Chief, NFA Branch



         SUBJECT: Inspection on Forms 2





   We have information that some manufactuers of NFA weapons

   are overstating their prcductions and are submitting Forms

   2 for firearms have not been completely manufactured.



   An inspection to verify the information submitted on the

   attached Forms 2 and summary sheets should he conducted

   expeditiously.  This should be a joint inspection with Law

   Enforcemenent.  Contact your local law enforcement office to

   set up schedules for these inspections. Forms 2 which

   were previously and subsequently filed should also be

   verifieded.  We recomenend that an ATF Inspector with

   technical knowledge be assigned to these inspections.



   The intect of these inspections is to get proper

   registration of machineguns.  Forms 2 should be amended to

   show the proper registration.  Administrative action would

   not normally be taken.  However, a Report of Violations,

   should be prepared and the manufacturer should be told any

   repeat violations could bring criminal or administrative

   action.  Completed inspection reports should be forwarded

   directly to the NFA Branch. An information copy of the

   completed inspection report should be forwarded to the

   Firearms Licensing Section for their files.



   Forms 2 should be amended to show the proper registration.

   Inspectors should be aware that machineguns may be in any

   state, i.e. flats drilled with serial numbers. AR-15

   lower receivers without modifications are not

   machineguns. If there are questions about whether

   something is manufactured or not, check with the Firearms

   Technology Bracnh at 555-7131.



   Any other questions may be directed to Carol LaFontana,

   Specialist, F/E Operations Branch at 566-7591.







                                Wayne P. Moran



   Attachments