Apparently the BATFE has more authority than the states…
http://www.examiner.com/x-1417-Gun-Rights-Examiner%7Ey2009m7d17-ATF-to-Tennessee-Were-above-your-law
The BATFE sent a letter to Tennessee to let it know it’s newly passed Firearms Freedom Act doesn’t apply. Apparently the BATFE is above even the constitution’s 10th amendment.
They are also telling this to Montana.
Source: http://waronguns.blogspot.com/2009/07/atf-to-montana-you-will-respect-our.html