March 2013 FFL NEWSLETTER Volume 2
Page 6
Brokering of Firearms/Drop Shipments
Individuals who engage in the business of brokering firearms by buying firearms from a manufacturer, selling those firearms to a licensed third person, and then arranging with the manufacturer to have the firearms dropped shipped to the purchaser, are required to obtain a Federal firearms license.
ATF has experienced difficulty in tracing firearms in instances where drop shipments have been made to third parties, and where the recordkeeping procedures employed by the three licensed parties do not lend themselves to easy and fast tracing of firearms. ATF is providing recordkeeping procedures for “drop shipments” as set forth below:
Licensee “A” orders firearms from licensee “B.”•
Licensee “B” transmits the order to licensee “C” for • direct shipment (drop shipment) to licensee “A.”
Licensee “A” must provide licensee “C” a certified • copy of its Federal firearms license prior to the shipment of the order.
Licensee “C” shall enter the disposition of the • firearms into his or her acquisition and disposition (A&D) record to licensee “A.”
Licensee “A” shall enter the acquisition of the firearms • into his or her A&D record from licensee “C.”
Licensee “B” makes • NO entries into his or her A&D record because he or she does not take physical possession of the firearms.
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See ATF Procedure 75–3 for further information on the drop shipment of firearms.
If you would like a determination whether your business activity may require a Federal firearms license, you may contact your local ATF office (www.atf.gov/field) or the Firearms Industry Programs Branch at
[email protected].