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October 14, 2024

ATF Q&A: Licensing


Do the BSCA amendments in 2022 and implementing regulatory changes made in 2024 to the definition of “engaged in the business” as a retailer in firearms have any impact on gunsmiths or pawnbrokers?

“No. Gunsmiths are still covered by the definition of “engaged in the business” as a gunsmith under 27 CFR 478.11, paragraph (4) Gunsmith, but they are not impacted by the BSCA’s/regulation’s change to the definition of “engaged in the business” as it applies to other dealers (under paragraph (3) Dealer in firearms other than a gunsmith or a pawnbroker). For example, gunsmiths are still assessed as engaged in the business, in part, using the intent element “principal objective of livelihood and profit,” while wholesale and retail dealers are now assessed as engaged in the business using the intent element “predominantly earn a profit.”

The change to the “engaged in the business” definition also does not impact pawnbrokers. The term “engaged in the business” does not apply to pawnbrokers because all pawnbrokers whose business includes taking a firearm as security for repayment of money are automatically dealers and thus required to be licensed without making an assessment as to whether they are engaged in the business.”

 

Source: The Bureau of Alcohol, Tobacco, Firearms and Explosives

Small Business Administration Guidance to 27 CFR 478.11 and 13 as revised by ATF final rule 2022R-17 (89 FR 28968, April 19, 2024) Updated May 2024*