Dealer-01b Acquisitions and Dispositions Policy

See Below or Attached

Find attached: Orchid FFLPP Dlr-01b Acquisitions and Dispositions Policy 

Version: 1 2021.07.20

*NOTE: This policy applies to A&D Books for Dealer FFLs ONLY.  

a.     Overview

·       The Acquisition and Disposition Book (“A&D Book” or “Bound Book”) and information entered therein must comply with applicable ATF Regulations.  Any deviation requires a variance approval obtained from the ATF.

·       Each Federal Firearms License (“FFL”) must have its own A&D Book or set of A&D Books. Multiple A&D books may exist per FFL provided that no serialized entries remain open in more than one A&D Book. For example, if the Company chooses to maintain separate gunsmithing and retail A&D Books, firearms may only appear in one of those A&D Books. Firearms may be “transferred” from one A&D Book to the other. 

·       All transactions must reflect the actual date of the physical event. Acquisitions, as defined below, must equal the actual date receipt. Dispositions, as defined below, must equal the actual date of sale, shipment, destruction, or report of theft or loss.

·       All firearm information – including serial number, importer, manufacturer, model, caliber or gauge – must be recorded exactly as engraved on the firearm.  

·       All transferor (Acquired from) and transferee (Disposed to) information must match the applicable identification document; whether a driver’s license, concealed carry license, or FFL. 

·       Corrections of A&D Book entries must be tracked and only authorized personnel may make corrections. 

·       A&D Books must be retained for at least 20 years.  If desired, records older than 20 years old may be forwarded to the ATF Out-of-Business Records Center for preservation. A copy of the submitted records should be retained.  

b.    Required Fields

·       Company shall maintain the A&D Book in the following format:

·       Additional columns may be added (e.g., a notes column), as long as such columns are separate from the required information. 

·       All items of information should appear in their own cell / column. 

·       If the Company Acquires a firearm that has been imported into the United States, both the Manufacturer and Importer must be recorded. 

·       The A&D Book must be sorted sequentially by date of Acquisition.

c.     Applicable References

·       27 CFR Part 478, Subpart H 

·       27 CFR Part 479, Subpart I

·       Acquisitions and Dispositions shall be recorded in accordance with the Policy set forth above, including timing and substance.

·       Acquisitions and Dispositions shall be recorded promptly, and in no case prior to the close of business on the day in which the firearms were Acquired or Disposed.

·       Firearm information shall be recorded exactly as engraved.

·       If a firearm does not have a serial number (e.g., it was manufactured prior to 1968), an indicator of that must be recorded in the “Serial Number” field.   “NSN” or “None Marked” are acceptable entries.  If non-serialized firearms are repeatedly Acquired and/or there are multiple items on premises at a time with no serial number, “NSN-1”, “NSN-2”, etc. may be used to aid in tracking and traceability. 

·       If a firearm does not have a marking identifying other items of information required to be entered into the A&D Book (e.g., model) and the information is unknown and/or undiscoverable, “Unknown,” “None,” “N/A” or some indication there is no applicable engraving should be entered. If the information is known but not marked, it must be recorded. 

·       The A&D Book may include antique firearms but cannot include other merchandise. Antique firearms must be identified as “ANT” in the “Type” column.

·       The name, address, and FFL number (if a licensee) of the supplier/transferor and the purchaser/transferee must be recorded in the A&D Book.  The information shall match the identification document provided; whether a driver’s license, concealed carry license, Federal Firearms License, or other acceptable form of identification.  An ATF Form 4473 transaction number may also be recorded if Forms 4473 are serialized and filed numerically.

·       If multiple employees enter A&D Book transactions, one employee shall be charged with oversight of the A&D Book; reviewing entries for accuracy, completion, and timeliness.  This review shall occur at least once a week.  If only one employee enters A&D Book transactions, a second employee (or employees) shall be identified for review of A&D Book information for accuracy, completion, and timeliness.  This review must occur at least once a week.  

o   This oversight shall be executed by way of comparing A&D entries to firearms, federal firearms licenses, and identification documents.  A statistically valid quantity of A&D Book entries shall be verified on a weekly basis. 

·       If an entry or portion of an entry requires correction, a single line shall be made through the entry – in a fashion so that it is still visible – and the correct information shall be recorded in the same block.  The employee making the correction shall initial and date the correction.  If there is room, a brief note on why the entry was corrected shall be recorded.  

o   Only [identify employee / dept] is authorized to perform corrections to A&D Book entries. 

·       FFL Termination

o   Upon termination of a license, the FFL must submit the A&D Books to the ATF Out of Business Records Center. Company may make a copy of the records surrendered if desired.  All records must be forwarded to the ATF Out-of-Business Records Center in accordance with 27 CFR 478.127, including all other paperwork required by regulation.

·       Entering transactions in the A&D Book – [tbd by company].

·       Correcting the A&D Book – [tbd by company].

·       Auditing the A&D Book – [tbd by company]. 

·       Acquisition – The receipt of possession and control of a firearm, typically:

o   Purchase from a distributor, wholesaler, retailer, manufacturer, etc. 

o   Receipt via purchase or a trade-in from a consumer

o   Receipt from a consumer for repair/modification for a period that extends to the next business day 

·       Disposition – The transfer of possession and control of a firearm, typically:

o   To a consumer via a 4473 transfer following sale of a firearm

o   Shipment to another FFL

o   To a consumer following a repair that resulted in the firearm being Acquired 

o   Destruction of a firearm