Conduct of Biz - Firearms Acquisition Regulations Part 1

Acquisition and Disposition Record

• Licensed importers, manufacturers, and dealers must maintain records of acquisition and disposition according to 27 CFR § 478.122, 478.123, and 478.123(e) respectively.
• Records must be kept in a bound book or approved electronic format, and must include the type, model, caliber or gauge, manufacturer, country of manufacture, and serial number of each firearm.

Computerized Acquisition and Disposition Records

• Prior approval from ATF is required to use a computer program for record keeping.
• The Bureau does not issue blanket approvals for commercially available software programs.

Record Retention

• Under Final Rule 2021R-05F, records must be maintained until the business or licensed activity is discontinued.
• A&D records and ATF Forms 4473 must be retained.

Firearm Frame or Receiver

• A serial number is required on a frame or receiver completed, assembled, or otherwise produced by a licensed manufacturer.
• A privately made firearm (PMF) without a serial number is defined as a firearm made by a non-licensee without a serial number.

Markings on Privately Made Firearms

• Marking serial numbers on PMFs is required if the licensee is planning to sell the firearm.

NICS Requirements

• A background check is required prior to the transfer of a firearm.
• The licensee must contact NICS and receive a unique identification number before completing the transfer.

Sales or Deliveries between Licensees

• A licensed importer, manufacturer, or dealer selling or otherwise disposing of firearms to another licensee must verify the identity and licensed status of the transferee prior to making the transaction.

Prohibited Sales and Deliveries

• Handgun sales to non-licensees are prohibited, except for state residents.
• Sales of long guns and ammunition to persons in other states are permissible, but may be restricted by state law.

Sales to Law Enforcement

• Sales to law enforcement officers for official use require a certification from the agency on the agency's letterhead.

Youth Handgun Safety Act

• A poster/sign and a brochure advising on safety requirements must be provided on the premises.

Obliterated Serial Number

• No person shall knowingly transport, ship, or receive in interstate or foreign commerce any firearm which has had the importer's or manufacturer's serial number removed, obliterated, or altered.

Short Barreled Rifle & Shotgun

• FFLs should understand how to recognize a short-barreled rifle or shotgun.

Licenses

• A person who devotes time, attention, and labor to manufacturing firearms as a regular course of trade or business with the principal objective of livelihood and profit through the sale or distribution of the firearms manufactured is considered to be "engaged in the business".
• Correction of errors on licenses must be made in accordance with 478.48.

Posting of License

• The license must be kept posted and kept available for inspection on the premises covered by the license.

Renewal/Duration

• A license renewal application must be filed prior to the expiration of the license.

Premises Covered

• A separate license must be obtained for each location at which a firearms or ammunition business or activity requiring a license is conducted.

Reporting Changes

• Licensees must report changes of address, trade name, or control within 30 days to the Chief, Federal Firearms Licensing Center.

Discontinuance of Business

• Where discontinuance of the business is absolute, the records must be delivered to the ATF Out-of-Business Records Center.

Right of Entry and Examination

• ATF officers may enter the premises of a licensee during business hours to inspect or examine records.

Tracing Request from ATF

• Licensees must respond immediately to requests from ATF for information contained in records.

Straw Purchase

• If a licensee suspects a straw purchase, they must not proceed with the transfer and must contact ATF immediately.

Curios or Relics

• Firearms must fall within one of the following categories to be recognized as curios or relics:
  • Manufactured at least 50 years prior to the current date
  • Certified by a museum curator
  • Deriving a substantial part of their monetary value from historical significance or rarity### Firearm Sales and Record Keeping
• A licensed importer, manufacturer, or dealer must record a firearm sale on a firearms transaction record, Form 4473, unless selling to another licensee.
• Consignment firearms must be entered in the licensee's acquisition and disposition record.
• A consignment firearm sale is handled like other firearm sales, with an ATF Form 4473 and NICS check required prior to return of the firearm to the consignor.

Personal Firearms Collection

• A licensed manufacturer, importer, or dealer is not required to comply with § 478.102 or record a personal firearm sale on Form 4473.

Firearms Transportation

• A person can transport firearms for lawful purposes if they are unloaded and not readily accessible during transportation.

Theft/Loss Prevention for Licenses

• Firearms retailers must report theft or loss of firearms to local law enforcement and ATF within 48 hours.
• To report a missing or stolen firearm, contact local police/sheriff, ATF office, and complete ATF Form 3310.11.

State Laws, Local Ordinances, and Federal Reporting

• Compliance with state laws and local ordinances is necessary for firearms businesses.
• Review state requirements, including additional licenses, waiting periods, concealed carry permits, and firearms permits.
• IRS Form 8300 must be filed for cash payments over $10,000 to combat money laundering.