BATFE and "Engaged in the Business" of Selling Firearms
There is no "gun show loophole." "Here is a layman's summary of the matter: To buy new guns at wholesale, one must have an FFL--Federal Firearm's License, which come in several flavors for selling, smithing, manufacturing, ammunition, explosives, and with addenda for import or restricted National Firearms Act weapons--silencers, machine guns, short barrels, destructive devices and certain oddities. If one plans to "Engage in the business" of selling firearms, new or used, an FFL is required. A PRIVATE CITIZEN not "engaged in business" may buy and sell guns for purposes of collecting or using. If you get tired of your old XDm and want a Glock, you can sell your XDm to anyone who is not a prohibited person (felon, domestic abuser, drug or alcohol abuser, and not under 18, etc). If you decide you want to sell off your old revolvers and upgrade to newer pistols, you can do so. If you decide you're 80, have done all the shooting you're going to, you can unload your collection without a license. If you sell online, you can either meet a resident of your own state face to face and see ID, or, you can send it to an FFL who will log it in, transfer it to them, and conduct the background check, for a small fee. If they are not a resident of your state, you MUST follow this method. If it is a longarm, they may, as long as their state allows, receive it from an FFL in your state. If it is a handgun, it MUST be shipped to an FFL in their state. You can't even hand it to said FFL in your state at a gun show for him to take back to his state. He must receive it via common carrier. Don't ask why this is the law. It just is. THERE IS NO "LOOPHOLE" FOR SELLING GUNS ON THE INTERNET. FEDERAL LAW APPLIES. Enforcing it is another issue, but the law is the law."
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