A federal firearms license (FFL) is a license in the United States that enables an individual or a company to engage in a business pertaining to the manufacture or importation of firearms and ammunition, or the interstate and intrastate sale of firearms. Holding an FFL to engage in certain such activities has been a legal requirement within the United States since the enactment of the Gun Control Act of 1968. The FFL is issued by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (BATFE, commonly shortened to ATF).
History The federal firearms license was established to and implement the Gun Control Act of 1968. The 1968 act was an update or revision of the Federal Firearms Act of 1938 (FFA), which required all manufacturers and dealers of firearms who ship or receive firearms or ammunition in interstate or foreign commerce to have a license, and forbade them from transferring any firearm or most ammunition to any person interstate unless certain conditions were met."Here's A Timeline of the Major Gun Control Laws in America". Time, February 21, 2018. As a practical matter, this did not affect the interstate commerce in firearms or ammunition, because the 1938 FFA lacked a provision specifically restricting "prohibited purchasers" as defined in the FFA from purchasing firearms under false pretenses/documentation (i.e. those who would otherwise have been considered "prohibited purchasers" were still able to get away with firearms purchases by providing falsified identity information; since background checks as understood today did not yet exist, convicted felons and other "prohibited purchasers" would still buy firearms unhindered by using fake identification)."The Federal Firearms Act (FFA) 1938". 2ndamendment2017, February 2017. Wordpress blog. It was with the adoption of the Gun Control Act (GCA) in 1968, which repealed most of the FFA, that the lawful interstate trade of firearms was limited almost entirely to persons holding a federal firearms license in the United States. As background checks were available by this time, enforcement of the GCA via the bottleneck provided by background checks and the FFL requirement was more effective than that of the FFA.
Types TypeNameUsage Type 01 Dealer in Firearms Other Than Destructive Devices (Includes Gunsmiths) Dealer and gunsmith in firearms. This license allows to the holder to act as a dealer in Title I firearms. May also deal in Title II (NFA) firearms—other than destructive devices—with tax payment to obtain a Class 3 SOT status. Type 02 Pawnbroker in Firearms Other Than Destructive Devices Dealer in firearms doing business as a pawnbroker. This license allows the holder to take or receive Title I firearms as security for the payment or repayment of a loan. This is in addition to the other activities permitted for a Type 01 dealer. May also deal in Title II firearms—other than destructive devices—or take and receive them as security with a Class 3 SOT status. Type 03 Collector of Curios and Relics Licensed collector of Curios & Relic (C&R) firearms. This licence only allows the holder to acquire firearms classified as C&Rs without a background check from other licensed C&R collectors, as well as from licensed dealers and importers. Does not allow the license holder to engage in the business of dealing in firearms or acquire Title II firearms without a Form 4 approval, unless the firearm has been granted a C&R exemption by the ATF. Type 06 Manufacturer of Ammunition for Firearms Manufacturer of ammunition for firearms—other than ammunition for destructive devices or armor-piercing ammunition. This license allows the holder to manufacture ammunition only, they may not manufacture firearms or act as a dealer. Type 07 Manufacturer of Firearms Other Than Destructive Devices Manufacturer of firearms and ammunition. This license allows the holder to act as a manufacturer of Title I firearms and ammunition. Can also act as a dealer and gunsmith in Title I firearms. May also manufacture and deal in Title II firearms—other than destructive devices, ammunition for destructive devices, or armor-piercing ammunition—with a Class 2 SOT status. Type 08 Importer of Firearms Other than Destructive Devices Importer of firearms and ammunition. This license allows the holder to import Title I firearms and ammunition into the country from licensed dealers and manufacturers outside the United States. Can also act as a Title I dealer and gunsmith. May also act as an importer and dealer in Title II firearms—other than destructive devices, ammunition for destructive devices, or armor-piercing ammunition—with a Class 1 SOT status. Type 09 Dealer in Destructive Devices Dealer in destructive devices and firearms. This license allows the holder to act as a dealer and gunsmith in both Title I and Title II firearms—including destructive devices, ammunition for destructive devices, or armor-piercing ammunition. Requires having Class 3 SOT status. Dealing any destructive device, or ammunition, with an explosives content (e.g. flash-bangs, grenade launchers, explosive rounds) requires an additional Federal Explosives License (FEL) as a Dealer of High Explosives. Type 10 Manufacturer of Destructive Devices Manufacturer of destructive devices, firearms and ammunition. This license allows the holder to act as a manufacturer of Title I and Title II firearms and ammunition—including manufacturing destructive devices, ammunition for destructive devices, or armor-piercing ammunition. Can also act as a Title I and Title II dealer and gunsmith. Requires having Class 2 SOT status. Manufacturing any destructive device, or ammunition, with an explosives content (e.g. flash-bangs, RPGs) requires an additional FEL as a Type 20 Manufacturer of High Explosives. Type 11 Importer of Destructive Devices Importer of destructive devices, firearms and ammunition. This license allows the holder to import firearms and ammunition—including destructive devices, ammunition for destructive devices, and armor piercing ammunition—into the country. Can also act as a Title I and Title II dealer and gunsmith. Requires having Class 1 SOT status. Importing any destructive device, or ammunition, with an explosives content (e.g. flash-bangs), requires an additional FEL as an Importer of High Explosives.
Imports and ammunition Federal Firearms License holders who are a Type 01/02/09 dealer or a Type 07/10 manufacturer are allowed to occasionally import a limited number of firearms without being required to obtain a Type 08/11 importers license; how often they can do so and how many firearms they can import is solely up to the discretion of the Director of the ATF. To import a firearm, a dealer or manufacturer must apply for a permit to do so, this can be done by filling out and submitting an ATF Form 6: Application and Permit for Importation of Firearms, Ammunition and Defense Articles by a Licensee, other than an Importer.
Under federal law, a Federal Firearms License is not required for dealing ammunition only. However, under certain state's laws, selling ammunition can require a state license and in some cases an additional county or city license: California: Federal Firearms License or California Ammunition Vendor License is required for the commercial sale of ammunition (more than 500 rounds in a 30-day period). Ammunition purchases require a background check. Online ammunition purchases must be shipped to a FFL. Connecticut: Federal Firearms License or Connecticut Ammunition Dealer's License is required for anyone selling ammunition. Ammunition purchases require a valid Connecticut State Pistol Permit (CTP) or Long Gun Eligibility Certificate. Direct online ammo sales only, no third-party sales (Drop Ship). Illinois: Ammunition only dealers are not required to be licensed, however anyone selling ammunition must verify the buyer possesses a valid Illinois Firearm Owner's Identification (FOID) Card. No Drop Ship online sales, online ammunition sales prohibited in Chicago & Cook County. Massachusetts: Massachusetts License to Sell Ammunition is required for anyone selling ammunition, including dealers/manufacturers with a Federal Firearms License. Ammunition purchases require a valid Firearms License to Carry (LTC) or Firearms Identification (FID) card. Online ammo sales prohibited. New Jersey: New Jersey Retail Firearms Dealer License is required for anyone selling ammunition, including dealers/manufacturers with a Federal Firearms License. A Firearms Purchaser Identification Card (FPID), Permit to Purchase a Handgun, or Permit to Carry a Handgun is required for handgun ammunition purchase. No drop ship ammunition sales. New York: Ammunition dealers must register as a seller of ammunition with the New York State Police, separate registration is not required for Federal Firearms License holders already registered as a firearms dealer or manufacturer; ammunition dealers in New York City must have both a Federal Firearms License & a New York State Firearms Dealer License, and register as a seller of ammunition with the New York City Police Department. Ammunition purchases require a background check. Online ammunition purchases must be shipped to a FFL. Rhode Island: Ammunition only dealers are not required to be licensed, ammunition can only be sold to persons over the age of 21 who possess a valid Pistol or Revolver Safety Certificate issued by the Department of Environmental Management.
Special Occupational Taxpayers classes
Certain types of firearms, accessories and other weapons are restricted under the National Firearms Act (NFA). In addition to a current FFL (of whatever "type" is applicable), the ATF requires that business owners who are planning to import, manufacture or deal in restricted materials also pay a Special Occupational Tax, or "SOT" (thereby making the business owner a "Special Occupational Taxpayer"). Class Usage Class 1 Importer of NFA firearms Class 2 Manufacturer & dealer of NFA firearms Class 3 Dealer of NFA firearms
Class 1 SOT status requires an importer FFL, either Type 08 or 11. Class 2 SOT status requires a manufacturer FFL, either Type 07 or 10. Class 3 SOT status requires a dealer FFL, either Type 01, 02, or 09.
Collectors of curio and relic (C&R) firearms C&R firearms are defined in Title 27, Code of Federal Regulations, Part 478.11 as those "of special interest to collectors by reason of some quality other than is associated with firearms intended for sporting use or as offensive or defensive weapons." To be recognized by ATF as a C&R firearm, a firearm must fall into at least one of the following three categories:
Firearms manufactured more than 50 years prior to the current date, not including replicas Firearms certified by the curator of a municipal, state, or federal museum that exhibits firearms as curios or relics of museum interest Any other firearms that derive a substantial part of their monetary value from the fact that they are novel, rare, bizarre, or because of their association with some historical figure, period, or event. Proof of qualification of a particular firearm under this category requires evidence of present value and evidence that like firearms are not available except as collector's items, or that the value of like firearms available in ordinary commercial channels is substantially less.