Many, if not most, US firearm distributors have live data feeds connecting their on-hand inventory and one or more eCommerce platforms. Those online shopping destinations become more popular every day, especially with the increase in drop ship capabilities reducing the time from order submission to product receipt. But connecting distribution facilities to an eCommerce provider involves various state and local laws that have direct and indirect considerations. The following is a fresh look at how those laws affect the distribution channel.

Exporting firearms, firearms accessories, and ammunition is a complicated process and can seem overwhelming to most companies who do not regularly export goods. However, the rules and processes to export these goods have recently been modified which provides the potential to open up new markets to wholesalers and distributors.

Prior to the recent changes, small arms and ammunition products had been regulated by the State Department for decades. Due to the expensive registration costs and export license fees, most wholesalers and distributors left the sales opportunities in the foreign markets to manufacturers and specialized U.S. exporters.

As everyone in the world is acutely aware, we are presently faced with a public health crisis of epic proportions.  Covid-19 has affected almost every aspect of our lives and is causing disruption to commercial activity in a manner not seen in decades.  Some cities and states have experienced more disruption than others and most states have issued a statewide shutdown of “nonessential” businesses.  

The firearms industry is not immune to the disruption caused by the novel coronavirus.  The supply chain has seen impacts at every level; materials providers, parts and components suppliers, firearms manufacturers, importers, wholesalers, and dealers have all to some extent experienced a measure of difficulty in continuing operations. 

Everyone in the firearms industry understands their business is strictly regulated by several federal and state government agencies. The obvious one at the forefront of the mind of most is the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”).  While many believe government agencies are free to implement whatever restrictions or controls upon your business that they see fit, they are largely bound by laws passed by Congress, or applicable state legislature, in setting regulatory requirements. Thus, the regulations adopted by any government agency, ATF in particular, are what that agency sees as what Congress would adopt or approve of if they were to get into the details as agencies are required to do.

Engaging in international commerce in firearms, ammunition, components, and accessories may seem like a daunting task.  Between all the domestic laws, international laws, embargoes and other trade restrictions, it may appear to many to not be worth the hassle.  However, with the proper planning and attention to detail sourcing goods or parts from overseas can be a very simple way to increase the variety of goods your company offers.

It was a stressful day at work.  ATF showed up unannounced for a compliance inspection.  Depending upon the size of your retail store, warehouse, or manufacturing facility, you may have had one to thirty IOIs (Industry Operations Investigator – the personnel tasked to perform inspections designed to carry out the federal government’s regulatory responsibilities pertaining to the firearms and explosives industries) show up at your front door.  Under ideal circumstances, your company has an established and reliable compliance program in effect which includes regular self-audits and you only have slightly elevated stress levels.  If you are like the majority of FFLs, your company’s compliance program is less effective than it can be (or nonexistent) and you are dealing with highly elevated levels of stress.

FFLs know the burden of the paperwork submission and record keeping requirements of the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”).  Between the various forms, the information required, the submission timing requirements, and record keeping retention requirements, it’s enough to make one’s head spin!  In this article we’ll identify applicable paperwork for various types of FFLs and provide suggestions on storage and retention based on our experiences with hundreds of FFL clients.  We will not go into excruciating detail of every statutory or regulatory mandate and exception therefor.  This is a short primer aimed at pointing you in the right direction and is not intended as legal advice.  For detailed requirements, exceptions, and how to apply regulatory mandates to your business, you should contact a qualified compliance professional or attorney.

For many in the firearms industry, the “bound book” is well known as the regulated record for tracking the lifecycle movement of a firearm through the commercial sector and between licenses and non-licensees. Perhaps less well known are the unintended consequences of relying on software company advertising and advice as the sole determination of your needs as an FFL.

Every month Orchid Advisors provides NASGW members with a summary of legislation across the 50 States.  We endeavor to only publish information on bills that have a direct or immediate impact to your firearms business. 

After a busy June, the volume of firearms legislation in state capitols being introduced or passed in July was reduced considerably.  Here is a look at some of the notable legislation that saw activity this month: