Data / Federal rules / 2024-07838
Definition of “Engaged in the Business” as a Dealer in Firearms
The Alcohol, Tobacco, Firearms, and Explosives Bureau published this final rule in the Federal Register on April 19, 2024. It took effect on May 20, 2024.
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What the agency says
The Department of Justice ("Department") is amending Bureau of Alcohol, Tobacco, Firearms, and Explosives ("ATF") regulations to implement the provisions of the Bipartisan Safer Communities Act that broaden the definition of when a person is considered "engaged in the business" ("EIB") as a dealer in firearms other than a gunsmith or pawnbroker. This final rule incorporates the BSCA's definitions of "predominantly earn a profit" ("PEP") and "terrorism," and amends the regulatory definitions of "principal objective of livelihood and profit" and "engaged in the business" to ensure each conforms with the BSCA's statutory changes and can be relied upon by the public. The rule also clarifies what it means for a person to be "engaged in the business" of dealing in firearms and to have the intent to "predominantly earn a profit" from the sale or disposition of firearms. In addition, it clarifies the term "dealer" and defines the term "responsible person." These clarifications and definitions assist persons in understanding when they are required to have a license to deal in firearms. Consistent with the Gun Control Act ("GCA") and existing regulations, the rule also defines the term "personal collection" to clarify when persons are not "engaged in the business" because they make only occasional sales to enhance a personal collection or for a hobby, or if the firearms they sell are all or part of a personal collection. This rule further addresses the procedures that former licensees, and responsible persons acting on behalf of such licensees, must follow when they liquidate business inventory upon revocation or other termination of their license. Finally, the rule clarifies that a licensee transferring a firearm to another licensee must do so by following the verification and recordkeeping procedures in the regulations, rather than by using a Firearms Transaction Record, ATF Form 4473.
Key facts
- Document number
- 2024-07838
- Type
- Final rule
- Action
- Final rule
- Agency
- Justice Department; Alcohol, Tobacco, Firearms, and Explosives Bureau
- Published
- April 19, 2024
- Takes effect
- May 20, 2024
- Dates
- This rule is effective May 20, 2024.
- Docket
- Docket No. ATF 2022R-17; AG Order No. 5920-2024
- Regulation ID (RIN)
- 1140-AA58
- Code of Federal Regulations
- 27 CFR 478
- Topics
- Administrative practice and procedure; Arms and munitions; Exports; Freight; Imports; Intergovernmental relations; Law enforcement officers; Military personnel; Penalties; Reporting and recordkeeping requirements; Research; Seizures and forfeitures; Transportation
- Significant
- Yes, under Executive Order 12866
- Pages
- 126
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| Document | Type | Published |
|---|---|---|
| Annual Notices on Explosive Materials Storage Facilities to Local Fire Authority 2026-19694 · significant | Final rule | Sep 25 |
| Implementing the Safe Explosives Act 2026-19693 · significant | Final rule | Sep 25 |
| Revising Requirements and Exceptions for Storing Explosives 2026-19692 | Proposed rule | Sep 25 |
| Explosives Magazine Safety Requirements 2026-19691 | Proposed rule | Sep 25 |
| Application for Relief From Disabilities Imposed by Federal Laws With Respect to the Acquisition, Receipt, Transfer, Shipment, Transportation, or Possession of Firearms 2026-16981 · significant | Final rule | Aug 20 |
| Fingerprint and Photograph Requirements for Firearms Applications 2026-13587 | Proposed rule | Jul 6 |
| Registering NFA Firearms That Fall Out of Government Contract 2026-13586 | Proposed rule | Jul 6 |
| Licensee “eZ Check” Verification for Transfers; Withdrawing Direct Final Rule 2026-13585 | Final rule | Jul 6 |
Everything from the Alcohol, Tobacco, Firearms, and Explosives Bureau · Rules on administrative practice and procedure · Rules on arms and munitions · Rules on exports · Published in April 2024
Read from the Federal Register API, last updated 2026-10-23. The document on federalregister.gov is the official record; dates and dockets can change through later corrections. Free to reuse with credit to SpecStream under CC BY 4.0.