The New ATF Rule: Who Needs an FFL to Sell Guns?

This blog post is for informational purposes only and does not constitute legal advice

Introduction

The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) recently finalized a rule aimed at reducing violence by ensuring background checks for more firearm sales. This rule implements the Bipartisan Safer Communities Act (BSCA), a highly contentious piece of legislation passed in June 2022.

For many casual gun owners, the new rule might seem like legalese, but understanding who needs an FFL to sell firearms is crucial in the current legal landscape. Here’s a breakdown of the key points and what they mean for you:

Who Needs a Federal Firearms License (FFL) Now?

The BSCA removes the “livelihood” aspect from the previous rule, broadening the definition. Now, anyone who intends to “predominantly earn a profit” through repetitive firearm sales needs an FFL. This means that occasional sales from a personal collection would not necessarily make someone a dealer. The new rule clarifies who qualifies as a dealer and requires them to conduct background checks on buyers.

Key Factors to Consider:

Frequency of Sales: The occasional sale likely will not trigger the need for an FFL. However, if you’re regularly buying and selling firearms, especially within a short timeframe, it raises a red flag for the ATF.
Profit Motive: Are you selling to make money, or simply recoup what you paid for the firearm? This criteria is a crucial distinction. If profit is your primary goal, you will likely need an FFL to sell firearms.
Advertising: How are you advertising your firearms? Extensive advertising online, at gun shows, or through classifieds suggests you are in the business of selling, not just getting rid of an unwanted item.

What Firearms Sales Do Not Require a License or FFL?

The rule defines “personal collection” to protect occasional sellers who aren’t actively dealing firearms. Therefore you likely won’t need an FFL to sell a few guns from your personal collection, as long as you’re not doing it for profit. Here are some additional points to consider:

Inherited Firearms: If you inherited a collection and decide to sell some pieces, you’re likely exempt.
Collection Consistency: Are the firearms you’re selling similar in type or caliber to your overall collection? This fact strengthens the case that they are part of a personal collection, not a separate business venture.

Why Does The New Rule Matter?

Prior to this rule, the anti gun lobby coined the term “gun show loophole” to cause the general public to believe that no one at gun shows had to run background checks. Regardless, FFLs ALWAYS must follow the proper background check procedure whether at a gun show or place of business.

The “gun show loophole” allows private citizens to sell firearms without background checks, whether at gun shows or not. Anti-gun zealots have failed to pass legislation for mandatory background checks, as the public fears it could lead to gun registries. Thus, the “gun show loophole” rule aims to close this gap by requiring background checks for all firearms sales.

Ironically, the new ATF rule effectively creates a loophole in current firearms law that all but mandates the recording of all firearms transactions. Were the ATF simply concerned with background checks they could have opted for a simpler procedure. As an example, FFLs could run background checks on prospective buyers for prospective sellers without the additional documentation. This additional documentation, ATF Form 4473, is what concerns firearms owners and could lead to a back door gun registry.

While there are some exceptions, the intentionally ambiguous 400-page limit grants authorities discretionary power to selectively target law-abiding citizens. This vagueness puts law abiding prospective sellers into a quandary. Do I risk my sale being later determined as NOT an exception or do I simply use an FFL?

How Can I Sell Firearms Under the New Rule?

If a firearms owner occasionally sell firearms from their personal collection, they are likely not subject to federal firearms licensure requirements. Individuals who engage in the regular purchase and sale of firearms with the intent to profit from such transactions may require a Federal Firearms License (FFL). Alternatively, they may choose to conduct their sales through an established FFL holder to ensure compliance with applicable regulations. Consulting an attorney specializing in firearms law can clarify whether your activities fall within the definition of “engaged in the business,” requiring a license, or if they qualify for an exemption.

For information on using a local FFL in Raleigh NC, check the FFL Transfer Process summary at W0lfp4ck Guns and Ammo.

Staying Informed is Key

The complexities of firearm regulations continue to challenge understanding, and the recently implemented rule is no exception. This rule anticipated facing legal challenges and remains susceptible to modification under the leadership of a more pro-gun president. While the intent of the rule is to enhance public safety through expanded background checks, it is essential to grasp its specific implications for firearm sales. If you have any uncertainty regarding your sales practices and the necessity of an FFL (Federal Firearms License), it is prudent to seek legal counsel or conduct your firearm sales via an FFL holder.

This is of course is exactly the intention of the new law and rule, to set the stage for a back door gun registry. Why else would the new rule be over 400 pages? The intent is to make the new rule so vague that all firearms transactions are now recorded by an FFL as that will be the safest and most conservative course of action.

Republican sponsors of the Safer Communities Act should be held accountable for their back stab to law abiding citizens at the ballot box. For a complete list of Republicans responsible visit the following article from USA Today: 29 Republicans Responsible for the Safer Communities Act

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ATF New Rule: Who Needs a License to Sell Guns Now?