Amends the Federal criminal code to define "armor-piercing ammunition as projectiles constructed from specified material which may be used in handguns. Excludes from the definition: (1) shotgun shot required by Federal or State regulations for hunting; (2) frangible projectiles for target shooting; or (3) projectiles that the Secretary of the Treasury determines are primarily intended for sporting purposes or industrial use.
Makes it unlawful for any person to manufacture or import armor-piercing ammunition. Allows for: (1) the manufacture or importation of armor-piercing ammunition for the use of the United States or any State or local government; (2) the manufacture for the sole purpose of exportation; and (3) the manufacture or importation for testing or experimentation authorized by the Secretary. Allows for the sale and delivery of armor-piercing ammunition for these purposes.
Establishes a licensing fee of $1,000 per year for manufacturers and importers of armor-piercing ammunition.
Authorizes the Secretary to revoke any license issued to a dealer if such dealer willfully transfers armor-piercing ammunition.
Requires licensed importers and manufacturers to specially mark all armor-piercing projectiles and packages.
Imposes an additional mandatory sentence of not less than five years for any person who uses or carries a firearm and is in possession of armor-piercing ammunition during the commission of a crime of violence. Provides that such sentence shall not be suspended or probation or parole be granted.