Department of the Treasury
            Bureau of Alcohol, Tobacco and Firearms
                   Washington, DC  20226-001

                        February 2, 1994

OPEN LETTER TO ALL FEDERAL FIREARMS LICENSEES

The purpose of this letter is to advise you that EFFECTIVE
IMMEDIATELY 7.62 x 39mm steel core ammunition has been
reclassified as armor piercing ammunition AND Federal Firearms
Licensees, except type 11 licensees, are no longer authorized to
import or commercially sell 7.62 x 39mm steel core ammunition. 
Existing stocks of 7.62 x 39mm steel core ammunition may only be
exported or sold to law enforcement or government agencies.

Section 921(a)(17)(B) defines armor piercing ammunition as:

     "the term armor piercing ammunition means a projectile or
projectile core which may be used in a handgun and which is
constructed entirely (excluding the presence of traces of other
substances) from one or a combination of tungsten alloys, steel,
iron, brass, bronze, beryllium copper, or depleted uranium.  

Such term does not include shotgun shot required by Federal or 
State environmental or game regulations for hunting purposes, a
frangible projectile designed for target shooting, a projectile
which the Secretary finds is primarily intended to be used for
sporting purposes, including a charge used in an oil and gas 
well perforating device."

Over the past several years, the Bureau of Alcohol, Tobacco and
Firearms (ATF) has allowed the importation and commercial resale
of 7.62 x 39mm steel core ammunition based on the fact that 
there were no handguns in commercial channels capable of 
chambering this ammunition.  Investigations conducted by ATF 
have concluded that such handguns are now commercially available.

Therefore, you are advised that continued importation and/or
resale of 7.62 x 39mm steel core ammunition will be considered a
willful violation of law and regulations and could result in
criminal prosecution and the revocation of your Federal Firearms
License.

If you have any questions concerning this matter, contact the
Firearms and Explosives Imports Branch at (202) 927-8320.



                            (signed)



                         John W. Magaw
                            Director