18 USC 923 Licensing

Section 923. Licensing

(a) No person shall engage in the business of importing,

manufacturing, or dealing in firearms, or importing or

manufacturing ammunition, until he has filed an application with

and received a license to do so from the Attorney General. The

application shall be in such form and contain only that information

necessary to determine eligibility for licensing as the Attorney

General shall by regulation prescribe and shall include a

photograph and fingerprints of the applicant. Each applicant shall

pay a fee for obtaining such a license, a separate fee being

required for each place in which the applicant is to do business,

as follows:

(1) If the applicant is a manufacturer -

(A) of destructive devices, ammunition for destructive devices

or armor piercing ammunition, a fee of $1,000 per year;

(B) of firearms other than destructive devices, a fee of $50

per year; or

(C) of ammunition for firearms, other than ammunition for

destructive devices or armor piercing ammunition, a fee of $10

per year.

(2) If the applicant is an importer -

(A) of destructive devices, ammunition for destructive devices

or armor piercing ammunition, a fee of $1,000 per year; or

(B) of firearms other than destructive devices or ammunition

for firearms other than destructive devices, or ammunition other

than armor piercing ammunition, a fee of $50 per year.

(3) If the applicant is a dealer -

(A) in destructive devices or ammunition for destructive

devices, a fee of $1,000 per year; or

(B) who is not a dealer in destructive devices, a fee of $200

for 3 years, except that the fee for renewal of a valid license

shall be $90 for 3 years.

(b) Any person desiring to be licensed as a collector shall file

an application for such license with the Attorney General. The

application shall be in such form and contain only that information

necessary to determine eligibility as the Attorney General shall by

regulation prescribe. The fee for such license shall be $10 per

year. Any license granted under this subsection shall only apply to

transactions in curios and relics.

(c) Upon the filing of a proper application and payment of the

prescribed fee, the Attorney General shall issue to a qualified

applicant the appropriate license which, subject to the provisions

of this chapter and other applicable provisions of law, shall

entitle the licensee to transport, ship, and receive firearms and

ammunition covered by such license in interstate or foreign

commerce during the period stated in the license. Nothing in this

chapter shall be construed to prohibit a licensed manufacturer,

importer, or dealer from maintaining and disposing of a personal

collection of firearms, subject only to such restrictions as apply

in this chapter to dispositions by a person other than a licensed

manufacturer, importer, or dealer. If any firearm is so disposed of

by a licensee within one year after its transfer from his business

inventory into such licensee's personal collection or if such

disposition or any other acquisition is made for the purpose of

willfully evading the restrictions placed upon licensees by this

chapter, then such firearm shall be deemed part of such licensee's

business inventory, except that any licensed manufacturer,

importer, or dealer who has maintained a firearm as part of a

personal collection for one year and who sells or otherwise

disposes of such firearm shall record the description of the

firearm in a bound volume, containing the name and place of

residence and date of birth of the transferee if the transferee is

an individual, or the identity and principal and local places of

business of the transferee if the transferee is a corporation or

other business entity: Provided, That no other recordkeeping shall

be required.

(d)(1) Any application submitted under subsection (a) or (b) of

this section shall be approved if -

(A) the applicant is twenty-one years of age or over;

(B) the applicant (including, in the case of a corporation,

partnership, or association, any individual possessing, directly

or indirectly, the power to direct or cause the direction of the

management and policies of the corporation, partnership, or

association) is not prohibited from transporting, shipping, or

receiving firearms or ammunition in interstate or foreign

commerce under section 922(g) and (n) of this chapter;

(C) the applicant has not willfully violated any of the

provisions of this chapter or regulations issued thereunder;

(D) the applicant has not willfully failed to disclose any

material information required, or has not made any false

statement as to any material fact, in connection with his

application;

(E) the applicant has in a State (i) premises from which he

conducts business subject to license under this chapter or from

which he intends to conduct such business within a reasonable

period of time, or (ii) in the case of a collector, premises from

which he conducts his collecting subject to license under this

chapter or from which he intends to conduct such collecting

within a reasonable period of time;

(F) the applicant certifies that -

(i) the business to be conducted under the license is not

prohibited by State or local law in the place where the

licensed premise is located;

(ii)(I) within 30 days after the application is approved the

business will comply with the requirements of State and local

law applicable to the conduct of the business; and

(II) the business will not be conducted under the license

until the requirements of State and local law applicable to the

business have been met; and

(iii) that the applicant has sent or delivered a form to be

prescribed by the Attorney General, to the chief law

enforcement officer of the locality in which the premises are

located, which indicates that the applicant intends to apply

for a Federal firearms license; and

(G) in the case of an application to be licensed as a dealer,

the applicant certifies that secure gun storage or safety devices

will be available at any place in which firearms are sold under

the license to persons who are not licensees (subject to the

exception that in any case in which a secure gun storage or

safety device is temporarily unavailable because of theft,

casualty loss, consumer sales, backorders from a manufacturer, or

any other similar reason beyond the control of the licensee, the

dealer shall not be considered to be in violation of the

requirement under this subparagraph to make available such a

device).

(2) The Attorney General must approve or deny an application for

a license within the 60-day period beginning on the date it is

received. If the Attorney General fails to act within such period,

the applicant may file an action under section 1361 of title 28 to

compel the Attorney General to act. If the Attorney General

approves an applicant's application, such applicant shall be issued

a license upon the payment of the prescribed fee.

(e) The Attorney General may, after notice and opportunity for

hearing, revoke any license issued under this section if the holder

of such license has willfully violated any provision of this

chapter or any rule or regulation prescribed by the Attorney

General under this chapter or fails to have secure gun storage or

safety devices available at any place in which firearms are sold

under the license to persons who are not licensees (except that in

any case in which a secure gun storage or safety device is

temporarily unavailable because of theft, casualty loss, consumer

sales, backorders from a manufacturer, or any other similar reason

beyond the control of the licensee, the dealer shall not be

considered to be in violation of the requirement to make available

such a device). The Attorney General may, after notice and

opportunity for hearing, revoke the license of a dealer who

willfully transfers armor piercing ammunition. The Secretary's (!1)

action under this subsection may be reviewed only as provided in

subsection (f) of this section.

(f)(1) Any person whose application for a license is denied and

any holder of a license which is revoked shall receive a written

notice from the Attorney General stating specifically the grounds

upon which the application was denied or upon which the license was

revoked. Any notice of a revocation of a license shall be given to

the holder of such license before the effective date of the

revocation.

(2) If the Attorney General denies an application for, or

revokes, a license, he shall, upon request by the aggrieved party,

promptly hold a hearing to review his denial or revocation. In the

case of a revocation of a license, the Attorney General shall upon

the request of the holder of the license stay the effective date of

the revocation. A hearing held under this paragraph shall be held

at a location convenient to the aggrieved party.

(3) If after a hearing held under paragraph (2) the Attorney

General decides not to reverse his decision to deny an application

or revoke a license, the Attorney General shall give notice of his

decision to the aggrieved party. The aggrieved party may at any

time within sixty days after the date notice was given under this

paragraph file a petition with the United States district court for

the district in which he resides or has his principal place of

business for a de novo judicial review of such denial or

revocation. In a proceeding conducted under this subsection, the

court may consider any evidence submitted by the parties to the

proceeding whether or not such evidence was considered at the

hearing held under paragraph (2). If the court decides that the

Attorney General was not authorized to deny the application or to

revoke the license, the court shall order the Attorney General to

take such action as may be necessary to comply with the judgment of

the court.

(4) If criminal proceedings are instituted against a licensee

alleging any violation of this chapter or of rules or regulations

prescribed under this chapter, and the licensee is acquitted of

such charges, or such proceedings are terminated, other than upon

motion of the Government before trial upon such charges, the

Attorney General shall be absolutely barred from denying or

revoking any license granted under this chapter where such denial

or revocation is based in whole or in part on the facts which form

the basis of such criminal charges. No proceedings for the

revocation of a license shall be instituted by the Attorney General

more than one year after the filing of the indictment or

information.

(g)(1)(A) Each licensed importer, licensed manufacturer, and

licensed dealer shall maintain such records of importation,

production, shipment, receipt, sale, or other disposition of

firearms at his place of business for such period, and in such

form, as the Attorney General may by regulations prescribe. Such

importers, manufacturers, and dealers shall not be required to

submit to the Attorney General reports and information with respect

to such records and the contents thereof, except as expressly

required by this section. The Attorney General, when he has

reasonable cause to believe a violation of this chapter has

occurred and that evidence thereof may be found on such premises,

may, upon demonstrating such cause before a Federal magistrate

judge and securing from such magistrate judge a warrant authorizing

entry, enter during business hours the premises (including places

of storage) of any licensed firearms importer, licensed

manufacturer, licensed dealer, licensed collector, or any licensed

importer or manufacturer of ammunition, for the purpose of

inspecting or examining -

(i) any records or documents required to be kept by such

licensed importer, licensed manufacturer, licensed dealer, or

licensed collector under this chapter or rules or regulations

under this chapter, and

(ii) any firearms or ammunition kept or stored by such licensed

importer, licensed manufacturer, licensed dealer, or licensed

collector, at such premises.

(B) The Attorney General may inspect or examine the inventory and

records of a licensed importer, licensed manufacturer, or licensed

dealer without such reasonable cause or warrant -

(i) in the course of a reasonable inquiry during the course of

a criminal investigation of a person or persons other than the

licensee;

(ii) for ensuring compliance with the record keeping

requirements of this chapter -

(I) not more than once during any 12-month period; or

(II) at any time with respect to records relating to a

firearm involved in a criminal investigation that is traced to

the licensee; or

(iii) when such inspection or examination may be required for

determining the disposition of one or more particular firearms in

the course of a bona fide criminal investigation.

(C) The Attorney General may inspect the inventory and records of

a licensed collector without such reasonable cause or warrant -

(i) for ensuring compliance with the record keeping

requirements of this chapter not more than once during any

twelve-month period; or

(ii) when such inspection or examination may be required for

determining the disposition of one or more particular firearms in

the course of a bona fide criminal investigation.

(D) At the election of a licensed collector, the annual

inspection of records and inventory permitted under this paragraph

shall be performed at the office of the Attorney General designated

for such inspections which is located in closest proximity to the

premises where the inventory and records of such licensed collector

are maintained. The inspection and examination authorized by this

paragraph shall not be construed as authorizing the Attorney

General to seize any records or other documents other than those

records or documents constituting material evidence of a violation

of law. If the Attorney General seizes such records or documents,

copies shall be provided the licensee within a reasonable time. The

Attorney General may make available to any Federal, State, or local

law enforcement agency any information which he may obtain by

reason of this chapter with respect to the identification of

persons prohibited from purchasing or receiving firearms or

ammunition who have purchased or received firearms or ammunition,

together with a description of such firearms or ammunition, and he

may provide information to the extent such information may be

contained in the records required to be maintained by this chapter,

when so requested by any Federal, State, or local law enforcement

agency.

(2) Each licensed collector shall maintain in a bound volume the

nature of which the Attorney General may by regulations prescribe,

records of the receipt, sale, or other disposition of firearms.

Such records shall include the name and address of any person to

whom the collector sells or otherwise disposes of a firearm. Such

collector shall not be required to submit to the Attorney General

reports and information with respect to such records and the

contents thereof, except as expressly required by this section.

(3)(A) Each licensee shall prepare a report of multiple sales or

other dispositions whenever the licensee sells or otherwise

disposes of, at one time or during any five consecutive business

days, two or more pistols, or revolvers, or any combination of

pistols and revolvers totalling two or more, to an unlicensed

person. The report shall be prepared on a form specified by the

Attorney General and forwarded to the office specified thereon and

to the department of State police or State law enforcement agency

of the State or local law enforcement agency of the local

jurisdiction in which the sale or other disposition took place, not

later than the close of business on the day that the multiple sale

or other disposition occurs.

(B) Except in the case of forms and contents thereof regarding a

purchaser who is prohibited by subsection (g) or (n) of section 922

of this title from receipt of a firearm, the department of State

police or State law enforcement agency or local law enforcement

agency of the local jurisdiction shall not disclose any such form

or the contents thereof to any person or entity, and shall destroy

each such form and any record of the contents thereof no more than

20 days from the date such form is received. No later than the date

that is 6 months after the effective date of this subparagraph, and

at the end of each 6-month period thereafter, the department of

State police or State law enforcement agency or local law

enforcement agency of the local jurisdiction shall certify to the

Attorney General of the United States that no disclosure contrary

to this subparagraph has been made and that all forms and any

record of the contents thereof have been destroyed as provided in

this subparagraph.

(4) Where a firearms or ammunition business is discontinued and

succeeded by a new licensee, the records required to be kept by

this chapter shall appropriately reflect such facts and shall be

delivered to the successor. Where discontinuance of the business is

absolute, such records shall be delivered within thirty days after

the business discontinuance to the Attorney General. However, where

State law or local ordinance requires the delivery of records to

other responsible authority, the Attorney General may arrange for

the delivery of such records to such other responsible authority.

(5)(A) Each licensee shall, when required by letter issued by the

Attorney General, and until notified to the contrary in writing by

the Attorney General, submit on a form specified by the Attorney

General, for periods and at the times specified in such letter, all

record information required to be kept by this chapter or such

lesser record information as the Attorney General in such letter

may specify.

(B) The Attorney General may authorize such record information to

be submitted in a manner other than that prescribed in subparagraph

(A) of this paragraph when it is shown by a licensee that an

alternate method of reporting is reasonably necessary and will not

unduly hinder the effective administration of this chapter. A

licensee may use an alternate method of reporting if the licensee

describes the proposed alternate method of reporting and the need

therefor in a letter application submitted to the Attorney General,

and the Attorney General approves such alternate method of

reporting.

(6) Each licensee shall report the theft or loss of a firearm

from the licensee's inventory or collection, within 48 hours after

the theft or loss is discovered, to the Attorney General and to the

appropriate local authorities.

(7) Each licensee shall respond immediately to, and in no event

later than 24 hours after the receipt of, a request by the Attorney

General for information contained in the records required to be

kept by this chapter as may be required for determining the

disposition of 1 or more firearms in the course of a bona fide

criminal investigation. The requested information shall be provided

orally or in writing, as the Attorney General may require. The

Attorney General shall implement a system whereby the licensee can

positively identify and establish that an individual requesting

information via telephone is employed by and authorized by the

agency to request such information.

(h) Licenses issued under the provisions of subsection (c) of

this section shall be kept posted and kept available for inspection

on the premises covered by the license.

(i) Licensed importers and licensed manufacturers shall identify

by means of a serial number engraved or cast on the receiver or

frame of the weapon, in such manner as the Attorney General shall

by regulations prescribe, each firearm imported or manufactured by

such importer or manufacturer. The serial number of any

semiautomatic assault weapon manufactured after the date of the

enactment of this sentence shall clearly show the date on which the

weapon was manufactured. A large capacity ammunition feeding device

manufactured after the date of the enactment of this sentence shall

be identified by a serial number that clearly shows that the device

was manufactured or imported after the effective date of this

subsection, and such other identification as the Attorney General

may by regulation prescribe.

(j) A licensed importer, licensed manufacturer, or licensed

dealer may, under rules or regulations prescribed by the Attorney

General, conduct business temporarily at a location other than the

location specified on the license if such temporary location is the

location for a gun show or event sponsored by any national, State,

or local organization, or any affiliate of any such organization

devoted to the collection, competitive use, or other sporting use

of firearms in the community, and such location is in the State

which is specified on the license. Records of receipt and

disposition of firearms transactions conducted at such temporary

location shall include the location of the sale or other

disposition and shall be entered in the permanent records of the

licensee and retained on the location specified on the license.

Nothing in this subsection shall authorize any licensee to conduct

business in or from any motorized or towed vehicle. Notwithstanding

the provisions of subsection (a) of this section, a separate fee

shall not be required of a licensee with respect to business

conducted under this subsection. Any inspection or examination of

inventory or records under this chapter by the Attorney General at

such temporary location shall be limited to inventory consisting

of, or records relating to, firearms held or disposed at such

temporary location. Nothing in this subsection shall be construed

to authorize the Attorney General to inspect or examine the

inventory or records of a licensed importer, licensed manufacturer,

or licensed dealer at any location other than the location

specified on the license. Nothing in this subsection shall be

construed to diminish in any manner any right to display, sell, or

otherwise dispose of firearms or ammunition, which is in effect

before the date of the enactment of the Firearms Owners' Protection

Act, including the right of a licensee to conduct "curios or

relics" firearms transfers and business away from their business

premises with another licensee without regard as to whether the

location of where the business is conducted is located in the State

specified on the license of either licensee.

(k) Licensed importers and licensed manufacturers shall mark all

armor piercing projectiles and packages containing such projectiles

for distribution in the manner prescribed by the Attorney General

by regulation. The Attorney General shall furnish information to

each dealer licensed under this chapter defining which projectiles

are considered armor piercing ammunition as defined in section

921(a)(17)(B).

(l) The Attorney General shall notify the chief law enforcement

officer in the appropriate State and local jurisdictions of the

names and addresses of all persons in the State to whom a firearms

license is issued.