Quoted:


Can you get an FFL to run a business that just does transfers or must it be a store front with  inventory?



Thanks

Quoted:
Think carefully before using your home as a premises, since ATF gets to perform a compliance inspection of that entire premises once a year - not a hassle for some, but unacceptable to others.  Most attractive option is generally if you've got a physically separate outbuilding you can use, and to which you can assign a different address (123-A Main Street, for example).

Quoted:
The ATF pushes hard for inventory...

If you live in un-zoned unincorporated county land, you might be able to get an FFL at your residence, but it's been difficult ever since the Clinton administration.  

Contact: Robert J. Browning June 2008
Chief, Public Affairs Division www.atf.gov
202-648-8500
FFL COMPLIANCE INSPECTIONS
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), pursuant to the
Gun Control Act (GCA) and the Federal firearms regulations, is responsible for licensing
persons engaging in a firearms business. With certain exceptions, the GCA allows ATF
to conduct one warrantless, annual compliance inspection of a federal firearms licensee
(FFL). The purpose of the inspection program is to educate the licensee about regulatory
responsibilities and to evaluate the level of compliance. Compliance inspections also
serve to protect the public in that they promote voluntary internal controls to prevent and
detect diversion of firearms from lawful commerce to the illegal market.

During inspections, ATF industry operations investigators (IOI) review records,
inventory, and the licensee’s conduct of business. To assist in meeting and maintaining
compliance, investigators also provide instructional and educational materials about the
requirements of the law and regulations and best business practices.

Compliance failures, which constitute violations of law and regulation, commonly
disclosed during the inspection process include failure to verify purchaser eligibility;
inability to account for firearms received and disposed; failure to ensure firearms
traceability due to improper recordation of firearms receipt and disposition; failure to
properly document firearms transfers; and failure to report multiple sales of handguns.
These types of violations, among others, can hinder the FFL’s ability to support law
enforcement criminal investigation efforts.

Proper and timely recordkeeping by FFLs is critical to the success of a crime gun
trace and is required for all firearms acquired and transferred by licensees. Failing to
account for firearms is a serious public safety concern because unaccounted firearms
cannot be traced. During compliance inspections conducted in 2007, ATF investigators
identified nearly 130,000 firearms that FFLs could not locate in inventory or account for
by sale or other disposition. By working with industry members, IOIs reduced this
number to approximately 31,000 firearms that FFLs could not account for. As such, ATF
investigators improved the success rate of potential firearms traces of previously
unaccounted firearms by 76 percent. Although this is a significant improvement, over
30,000 firearms remained missing and pose a threat to public safety.

When violations of the law and regulations are disclosed during an inspection, a
Report of Violations is issued to the licensee that outlines the discrepancy and the
requirements for corrective action. ATF also works to gain cooperation and compliance
from FFLs by issuing warning letters and holding warning conferences. Despite these
remedial actions, on rare occasions ATF encounters a licensee who fails to comply with
the law and regulations and demonstrates a lack of commitment to improving his or her
business practices. In such cases where willfulness is demonstrated, ATF’s obligation to
protect pubic safety may require revocation of the federal firearms license.

In Fiscal Year 2007, ATF conducted approximately 10,000 compliance
inspections. More than 40 percent of the licensees inspected were determined to be in
full compliance with the law and regulations and no violations were cited.
Approximately 100 federal firearms licenses were revoked or were denied renewal due
to willful violations of the GCA. This figure is approximately 1 percent of the number
of licensees inspected.

ATF investigators assist licensees in developing corrective actions when
violations are identified and encourage licensees to constructively engage in the
remediation process. In this way, ATF attempts to bring licensees into compliance before
it becomes necessary to take administrative action against the licensee. When an ATF
inspection results in a warning conference or potential revocation, the licensee is
provided an opportunity to develop a written plan that details the steps taken to correct
the problems identified and measures implemented to ensure future compliance.

To assist licensees in achieving and maintaining compliance, ATF conducts recall
inspections on all licensees who have committed violations that warranted a warning
conference. In 2007, recall inspections resulted in an overall 85-percent reduction in the
total instances of violations. Recall inspections also resulted in a 78-percent reduction in
disclosed prohibited sales and a 90-percent decrease in inventory discrepancies.

ATF’s focus is to help licensees avoid violations of the law and its implementing
regulations. The Bureau prides itself on partnering with the firearms industry, especially
regarding voluntary internal controls, to better protect the public. To that end, ATF
continues to work closely with the firearms industry at all levels to ensure compliance,
understand concerns, and help resolve perceived obstacles to compliance. ATF strives to
educate licensees concerning their obligations under the law through open letters mailed
to FFLs, information posted on ATF’s Web site, quarterly FFL newsletters, industry
seminars, attendance at trade shows, and partnerships with industry associations.
Licensees are provided the “Federal Firearms Regulations Reference Guide,” which
includes laws, regulations, and other information about conducting a firearms business
under federal law, and other publications such as the “Safety and Security Information for
Federal Firearms Licensees.”
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