Conduct of business 2a

Licensee Operations and Record Keeping Requirements

• Age Requirements:
  • Licensee may not sell or deliver a firearm to anyone under 18 years old
  • For firearms other than shotguns or rifles, licensee may not sell or deliver to anyone under 21 years old
• Residency Requirements:
  • Licensee may not transfer firearms to anyone who does not reside in the state where the licensee's place of business is located
  • Exception: Licensee may sell or deliver a shotgun or rifle to a resident of a different state if the transferee meets in person with the FFL and the sale complies with the legal conditions of sale in both states
• Recordkeeping Requirements:
  • Acquisitions and Disposition (A&D) record: maintained by all FFLs, includes description of firearm, acquisition information, and disposition information
  • A&D record may be in book form or electronic form, and licensee may utilize multiple A&D records depending on activity conducted
  • Timing of entries:
    • Dealers: record acquisitions by close of the next business day, unless commercial records are maintained separately
    • Importers: record acquisitions within 15 days of importation
    • Manufacturers: record acquisitions within 7 days of manufacture or acquisition of a complete firearm

Firearms Transaction Record

• Form 4473: required prior to any over-the-counter firearm transfer to a non-licensee, except for the return of a repair or replacement firearm
• Must be filed alphabetically, chronologically, or in numerical order
• Contains:
  • Firearm description
  • Number of firearms transferred
  • Transferee's name and address and certifications
  • Verification of transferee's identification
  • NICS information
  • FFL information

Non-Over-the-Counter Transactions

• No longer requires an ATF Form 4473, conducted in accordance with ATF Procedure 2020-1

Gunsmiths

• Defined as a person who devotes time, attention, and labor to repairing or customizing firearms, making or fitting special barrels, stocks, or trigger mechanisms to firearms, or placing marks of identification on privately made firearms
• Not required to mark PMFs received for same-day adjustment or repair and returned to the person from whom it was received

Personal Firearms

• A licensee may maintain a personal collection of firearms, and dispose of such personal firearms where the licensee has taken certain steps to remove the firearm from inventory and maintain the firearm in a personal collection
• Requirements for a firearm to be considered part of a licensee's personal collection:
  • Maintain the firearm as part of the licensee's personal collection for one year
  • Record the acquisition of the firearm into the business inventory and the disposition to the licensee's personal collection
  • Record of Disposition: sale or disposition of a firearm from the personal collection must be recorded in a record containing the description of the firearm, date, transferee's name and address, and transferee's date of birth if a non-licensee

Licensee-to-Licensee Transfers

• No Form 4473 required in sales/transfers between FFLs
• Selling FFL must verify the status of the buyer as an FFL
• May also verify continued valid license status by using ATF's FFL eZ Check

Report of Multiple Sale or Other Disposition of Pistols and Revolvers

• Required when transferring two or more handguns within five consecutive business days to a non-licensee
• Required contents:
  • Name and address of the transferee
  • Number of pistols and/or revolvers transferred
  • Date handguns were transferred
  • Name, and address of FFL

Report of Multiple Sale or Other Disposition of Certain Rifles

• Applicable only to FFLs located in California, Arizona, New Mexico, and Texas
• Required when transferring two or more semi-automatic rifles, greater than 22 caliber, within five consecutive business days to a non-licensee
• Required contents:
  • Name and address of the transferee
  • Number of rifles transferred
  • Date rifles were transferred
  • Name, and address of FFL

Theft or Loss of Firearms

• Licensees must report the theft or loss of a firearm from the licensee's inventory or collection within 48 hours after the theft or loss is discovered

• Must report to their local law enforcement agency as well### NFA Firearms Transfers

• Transfers of NFA firearms require approval on ATF Form 4 and payment of a transfer tax ($200 per firearm, except for any other weapons, which is $5).

• The Form 4 must include information about the firearm, transferor, and transferee.

NFA Violations

• Violations of the NFA are punishable by up to 10 years imprisonment, a fine of up to $250,000, or both.
• The statute of limitations for NFA violations is 3 years.

Interstate Transportation of NFA Firearms

• Only licensees can transport NFA firearms in interstate or foreign commerce without specific authorization from ATF.
• Non-licensees must file a request and receive approval from ATF prior to transportation.

Restrictions on Disclosure of NFA Information

• Information obtained from NFA applications, registrations, or records cannot be used as evidence against the person in a criminal proceeding, except in cases of furnishing false information.
• NFA registration or lack thereof is considered tax return information and is restricted from disclosure under 26 U.S.C.§ 6103, with certain exceptions.

NFA Forms Review

• Form 1: Application to Make and Register a Firearm (for individuals)
• Form 2: Notice of Firearms Manufactured or Imported (for licensees)
• Form 3: Tax Exempt Transfer (between two SOT taxpayers)
• Form 4: Tax Paid Transfer (for tax paid transfers; commonly used by individuals purchasing NFA weapons)
• Form 5: Tax Exempt Transfer
• Form 9: Application and Permit for Permanent Exportation of Firearms
• Form 10: Application for Registration of Firearms (for registration of seized weapons by government/police departments)
• Form 20: Application to transport interstate or temporarily export (rarely used)