Transferring Firearms to Military Members | Special Rules for filling out ATF Form 4473

Military Members and Dual State Residency

ATF regulations allow for Federal Firearms Licensees to transfer firearms to members of the military on active duty even though the member resides in another state. This type of transaction may require that the military member produce certain documents, as well as additional information to be entered into the ATF Form 4473.

Federal Firearms Licensees must also follow state law and local regulations with respect to this type of transaction.

Follow the link below to my article regarding the regulatory requirements for transferring firearms to active duty military members.  The article provides detailed information on the issue as well as links to pertinent references.

FFL Dealers Selling Guns To Active Duty Military Members

Importing Guns Into the U.S. At Answers.com

Importing firearms into the United States.

I recently published article in Answers.com that gives guidance to persons wishing to import guns into the U.S.   The article deals with what types of guns that can be imported, the forms required, and also talks about getting licensed to engage in the business of importing firearms.

Here's a condensed version of the article.  The entire article can be viewed at Answers.com.

Firearms:  What types can be imported?

The Gun Control Act allows for the limited importation of firearms that fall into narrow categories. The law generally allows for the importation of firearms for scientific testing and sporting purposes.

Do I need a FFL to import my own gun?

That depends, If you can prove that you removed the firearms from the U.S., no permit is needed.

How do I import guns as a business?

You must get a Federal Firearms License and have a legal place of business.

For a more detailed explanation of all these questions and more.  Take a look at the Answers.com article by clicking the link above.

Here's an excerpt from "Importing Firearms Into the United States" at Answers.com.

Many persons are surprised to learn that non-licensees can lawfully bring firearms into the U.S. without the need to pay for the services of a federally licensed firearms Importer. If the importation is not a business venture, and the person can prove they removed the firearms from the U.S. at some point, no permit will be required.

Hearing entitled “The Department of Justice’s ‘Operation Choke Point’” | House Committee on Financial Services

Hearing entitled “The Department of Justice’s ‘Operation Choke Point’” | House Committee on Financial Services

Operation Choke Point | Subjective Regulation | Firearms Considered A "Reputation Risk" By Banks

Lack of objectivity in Operation Choke Point.

A  relatively obscure program,"Operation Choke Point", may be causing banks to sever relationships with merchants engaged in "firearms sales" due to what some view as subjective regulatory criteria. Relatively new regulatory guidance encourages financial institutions to scrutinize the activities of merchants "that have been associated with high risk activities"(1). However, according to Congressman Jeb Hensarling, regulators are using subjective criteria instead of long established objective assessments as part of regulatory agency's prudential supervision. According Hensarling, agencies are incorrectly using "reputational risk" as a stand alone basis to suggest that banks cease providing a particular product or service to a particular merchant or industry(2). Hensarling details what is in his view is "vaguely defined" criteria that leaves too much room for subjective interpretation. Some believe that banks would choose to sever relationships with certain industries in order to avoid regulatory problems based on this criteria, and thereby choking out industries from financing, payment processing and other merchant services.

Firearms Dealers Are "High-Risk" For Banks(1)(2).

To date, there appears to be a lack of evidence available to the public indicating firearms dealers are engaged in activities requiring extra vigilance from banks. It might be beneficial to the firearms industry if members are made aware of the specific activity that has placed firearms dealers in the "risky" category. Firearms dealers should clearly be interested in identifying the risky behavior in order to ensure that they don't inadvertently engage in it, create a perception that they are engaged in it, and ensure policies are in place that prevent the "high-risk" activity from occurring. For obvious reasons, persons engaged in federally licensed firearms sales or other related activities want to work with bankers to ensure they are doing nothing to jeopardize their baking relationships. At this time, there appears to be no guidance on the matter that has been disseminated to the firearms industry by any regulatory body. It may serve the firearms industry, banks, regulators, and the consumer to clarify this issue somewhat by issuing guidance to "firearms dealers" on what type of activity is or may be perceived as "risky".

Furthermore, terms such as "firearms sales" encompass a broad spectrum of activity. Banks may overly scrutinizing the wrong businesses because of confusion about the term. For example, a mom-and-pop retail firearms business and a large gun store may be placed in the same category even if the businesses are in fact extremely different; even if some of the business is conducted online.  A large firearms importer and a small manufacturer may also be classified as "firearms sales" when in fact the two businesses couldn't be more different, and likely require significantly different types of banking services. 

Here is a sample of the types of businesses that have been identified as "high-risk" by federal regulatory bodies. The entire list can be viewed at the link above.

Credit Card Schemes
Dating Services
Drug Paraphernalia
Firearms Sales
Ammunition Sales
Fireworks Sales
Get Rich Products
Pay Day Loans
Pornography
Telemarketing
Travel Clubs

(1) FDIC Supervisor Insights Summer 2011
(2) Letters from Jeb Hensarling to Fed Chair, Office of the Comptroller of Currency, Chairman FDIC, and NCUA.

By JR Valdes
Firearms Licensing And Consulting Group, LLC
Firearms Consulting
Firearms Regulatory Compliance

Copyright 2014 All Rights Reserved

ATF Public Safety Violations | Second in the series | NICS check exemption | ATF Compliance Best Practices

Second in the series. TOP 10 ATF commonly cited public safety violations.

Topic: Failure to conduct a background check when required.

There are only 3 exception to the NICS requirement when a FFL transfers firearms to a non-licensee.  The article deals with those three exceptions.  

One) NFA transfers 

Two) When a qualifying "permit" is presented by the transferee.

Three) When it is "impracticable"

Some reasons for this violation are addressed, and some FFL best practices suggestions are given.

Excerpt: "FFLs should assume that all transfers to non-licensees require a NICS background check unless it can be positively shown in writing that NICS is not required. Strict compliance is your safeguard against ATF action as well as civil liability."

JR Valdes

FFL Consulting Group 

2014 All Rights reserved

Top 10 ATF Public Safety Violations

ATF Compliance Inspection Avoiding Public Safety Violations

First installment in a series dealing with the violations most commonly cited by ATF and considered to affect the public safety.

When is the ATF Form 4473 required?

The ATF Form 4473 must be obtained by an FFL prior to transferring a firearm to a non-licensee except when returning that firearm or a replacement to the same person from which it was received after a repair or a customization was performed.

Inexperienced FFLs erroneously fail to execute the ATF Form 4473 for a number of different reasons. However, repeated violations of the type affecting the public safety determined to be "willful" will be sufficient cause for revocation of the license.

The article list some reasons for this failure and the steps FFLs can take to avoid this violation.

http://www.fflconsultinggroup.com/atf-compliance-inspection-top-10-atf-public-safety-violations-atf-form-4473-atf-license-revocation-criteria/

JR Valdes

Can ATF remove or copy records of firearms purchases from FFLs?

Published a new article on ATFs right to remove and copy firearms transfer records from FFLs.  

Under certain circumstances, ATF Officers can copy or remove records from FFLs that contain information about purchasers of firearms.  Concerns have been raised regarding the propriety of this action, as some believe that ATF is keeping a permanent record of persons who purchase firearms in the United States. 

The article explains ATFs policy, the law and regulations pertaining, and links to documents from ATF responding the the concerns of U.S. representative Don Young about alleged improper seizing of records by ATF.  The response from ATF addresses the issue of keeping permanent records as well.

See the article here.

http://www.fflconsultinggroup.com/firearms-record-books-atf-form-4473-and-atfs-authority-to-copy-records/

JR Valdes

Personal Gun Log Private Gun Collections ATF Compliance Inspections

Protecting Your Firearms Business

A personal gun log of private gun collections is your best protection against confusing inventory during ATF compliance inspections.

Protecting your firearms business from unnecessary entanglements with ATF and other regulatory authorities should be a high priority for you as an FFL. Failure to comply with federal regulations, especially those deemed to be public safety violations will begin to create a record of administrative action taken against your business, and may cause ATF to visit you more frequently than if your inspections reveal no violations.

One common record keeping violation occurs when ATF Investigators find firearms within a business premises that are not properly logged in the A&D record because they are part of a "personal collection", but not adequately identified as such.  ATF will always assume that firearms are part of a business inventory unless they are segregated or appropriately tagged.

This article addresses this issue; giving some reasons for taking specific action, and detailing the action to take.
http://www.fflconsultinggroup.com/personal-gun-log-private-gun-collections-atf-compliance-inspections/

JR Valdes
Copyright 2014 Firearms Licensing And Consulting Group, LLC



        

Broadened definition of "Adjudicated as a mental defective" and "Committed to a mental institution"

DOJ/ATF Notice of Proposed Rulemaking comment period ending

The proposed rule changes the language in 27 CFR 478.11 to more clearly define the statutory term "adjudicated as a mental defective".  The summary indicates that the Justice Department "recognizes that the term is outdated", but cannot be amended by regulation. Justice proposes amending the definition to clarify the term and seeks public comment.

In essence, the NPRM indicates a proposal to broaden the meaning of terms and cites the intent of Congress to broadly apply the prohibition of receipt and possession of firearms to "mentally unstable" or "irresponsible persons".  

Among other changes, The Department of Justice proposal would amend the definition of "committed to a mental institution" to include both "inpatient and outpatient treatment".  

DOJ Press Release

The NPRM can be viewed at federalregister.gov

Comments must be submitted on or before April 7th, 2014.

JR Valdes
FFLConsultingGroup.com
research@fflconsultinggroup.com

NSSF reports on the thriving U.S. Firearms Industry

NSSF Firearms Economic Impact 2013

Citing data from research firm John Dunham and Associates, the NSSF published the 2013 Economic Impact Report on their website. According the report, companies that "manufacture, distribute and sell firearms, ammunition and hunting equipment employ nearly 112,000 people" directly and generate just under 134,000 additional jobs in "supplier and ancillary industries". According to the report, that's an over 48% increase since 2008.

Firearms industry direct economic impact

The firearms industry's direct economic impact is cited as nearly $37.7 billion in calendar year 2013. Federal and state taxes paid by the industry amount to just over $5.2 billion for the same period.  The state of California leads the way in direct employment, with over 9,400 industry jobs followed by Texas (8,496) and Florida (6,233). The report states "...these are good jobs, paying an average of $47,709 in wages and benefits (their source: Bureau of Labor Statistics).

The report is posted at the NSSF website and can be viewed or downloaded as a PDF document.

JR Valdes

Pending Gun Legislation 2013 and 2014

The following is a snapshot of pending firearms related legislation before Congress and state legislatures as of today. Not all the bills and resolutions included are necessarily related to current gun laws. Congress passed 4 bills that have been signed by the President during the current legislative session.         

Firearms Factoid:

As of today, there are 165 bills and resolutions before the 113th United States Congress in various stages containing the word "firearms" in the text.  Four bills have been signed into law.

There are 3,948 bills or resolutions that contain the word "firearms" in the text pending before state legislatures, including "dead" bills.  New Jersey tops the list with 408 pending "firearms" bills or resolutions.

Source: Govtrack.us

        

Multiple Gun Sales Reporting | ATF Multiple Sale Form | ATF Form 3310.4 | ATF Definition of "Consecutive Business Days"

Under certain circumstances a Report of Multiple Sale, ATF Form 3310.4 will have to be submitted even if the second transfer of a handgun takes place 6 or more days after the initial disposition of a handgun.

An FFL who is open for business five or more days per week will not necessarily have to report a second handgun purchase by the same person made on the 6th calendar day following the initial transfer.

A licensee who is open 3 days per week will have to submit a Report of Multiple Sale even if the second firearm is transferred up to 9 calendar days after the first handgun was purchased.

See full article 

References:

27 CFR 478.126a

Federal Firearms Regulations Reference Guide 2005, Page 181 (F5)

      

FFL Compliance Inspections | Right of Entry and Examination | Warrantless Entry Prior to 12 Months Elapsing

In accordance with 27 CFR §478.23 (Right of Entry and Examination), ATF may enter a licensed premises during "business hours" for the purpose of examining records without a warrant "not more than once during any 12 month period". In other words, ATF compliance inspections cannot be conducted prior to the passing of at least 12 months from the last one.

ATF Trace Request

However, can ATF otherwise enter your business premises to examine records and inventory prior to the 12 month period passing? Yes they can. It is lawful for ATF to enter the licensed premises prior to the passing of 12 months after an inspection if.....the FFL is unable to complete a trace and a "bona fide criminal investigation" is ongoing, an ATF Officer may enter your premises without first seeking a warrant.

Another reason to keep an accurate FFL record of acquisition and disposition of firearms.  http://www.fflconsultinggroup.com/atf-log-book-compliance-matters/.

Electronic "Bound Book"

If you keep an electronic ATF book, make sure your system is able to produce results for serial numbers or other identifiers that are close to the identifiers of the actual trace request firearm. Most commercial record keeping programs are capable of this function, but it's not always activated.

JR Valdes

Ruger announces recall of select Ruger American Rimfire rifles

Ruger announces recall of select Ruger American Rimfire rifles

US Senator introduces a bill that would limit the ability of government agencies to retain information on gun owners.  See Senator Thad Cochran's press release page for the details.

Warning to FFLs: Know your buyer and seller!

You've no doubt heard that ATF issued an industry Advisory Letter which advises FFLs to not send a copy of their license to non-licensees.  Fraudulent licenses are circulating and used by individuals in online scams. The letter can be viewed at the ATF website.

As an FFL you never have to supply a copy of your license to a non-licensee to receive firearms.  As an FFL you are generally allowed to receive firearms from anyone at any time.  The letter advises you to supply your FFL number and let any non-licensee that wants to verify you in FFL EZ-Check. If a non-licensee balks at that, have them take the firearms to a local licensee and conduct the transaction with another FFL with whom you can exchange copies of licenses and verify identities.

You should always try to deal with other FFLs who are known to you, for any type of transaction if possible.  
The best advice I can give in this case is "know your buyer" and "know your seller".  The extra money you may spend on the transaction is worth it to have the knowledge that you are dealing with a bona fide FFL.

The technology to produce excellent fake documents is already available to the average person, so I suspect this type of fraud will continue to happen until better counter-measures can be devised.  In the meantime, It's up to you guard against being the victim or inadvertently aiding in this type of fraud.

JR Valdes
fflconsultinggroup.com

New branding logo developed.

The secret to getting approved for a Federal Firearms License.

The secret is, there is no secret. Don't be fooled by anyone telling you they have all the answers and guarantee anything. Fortunately, everything we need to know about getting approved for a FFL has been written down for us. The ATF website and 27 CFR 478 is nearly all you need to understand the licensing process.  The best part is that your subscription has already been paid.  Use the website.

If your business plans somehow fall outside the absolute FFL zoning requirements of local and state authorities for example, try to adjust your plans if feasible, to fit within the established criteria.  If you wish to expand or change those plans later on, you can examine the criteria again and make necessary adjustments.

JR Valdes
fflconsultinggroup.com