Key FFL Requirements for Ammunition Dealers: Timeline
So you have decided to become an ammunition dealer, or perhaps a firearm dealer? Naturally, you want your business to be legal, and for that to happen you need to obtain an FFL (Federal Firearms License).
The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) is responsible for issuing FFLs to licensed business owners, but it can take time for them to get back to you.
Let us take a look at all the FFL requirements, and get you prepared for getting an FFL.
You don’t need to jump through a thousand hoops to be a successful ammunition dealer. However, there are legal requirements that you will need to meet if you want to stay on the level. Being an ammunition dealer requires an FFL. Thankfully, every FFL that allows you to buy and sell firearms also allows for the buying and selling of ammunition. We’ll give you an overview of FFL requirements for ammunition dealers so that you know what to expect when you try to get your own.
Learning ATF Requirements
Part of the reason it can take a while to get an FFL is that you need to be familiar with the process and what an FFL entails before you apply for one. There’s more to learn about your FFL than simply the class of license your business needs. The ATF is very specific about what each FFL requires. Familiarizing yourself with these requirements before you begin the application process is a crucial step for anyone looking to get an FFL. Failure to understand exactly what you need or what your FFL allows you to do could lead you into some serious trouble with ATF.
Completing Your FFL Application
An overview of the FFL approval timeline wouldn’t be complete if we didn’t talk about the application itself. Thankfully, most businesses that are looking to get their own FFL go through a relatively simple application process. If you are a larger corporation that wants to deal with explosives or destructive devices, the application will take more time, however. The most important thing to remember is that you need to know which class of FFL you’re applying for. Once you understand which class you need, the actual application itself won’t take you more than a few hours to complete; you’ll likely have most of the relevant information on hand anyway.
FFL Requirements You Need to Meet
- Fulfill the FFL License Requirements
- Select the Appropriate License Type
- Submit the Application and Wait
1. Fulfill the FFL License Requirements
First off, you absolutely must check the requirements needed, and make sure you meet them before you go on to fill out your application.
But there is more to learn about your FFL than simply the class of license your business needs. The ATF is very specific about what each FFL requires.
You should be aware that certain individuals, like the ones mentioned below, are not eligible for an FFL:
- Felons, or those convicted of a serious crime.
- Those who have been convicted of any crime punishable by more than a year in prison (whether or not they were ever sentenced or served a day in prison)
- People who are going to be formally charged for any crime punishable by more than a year in prison
- Fugitives
- Unlawful users of any controlled substance
- Anybody who has been legally committed to a mental health institution or has been declared mentally incompetent.
- Illegal aliens
- Dishonorably discharged from the military
- Citizens who have renounced their U.S. citizenship
- Those who are the subject of a restraining order, i.e., the person who did the harassing, stalking, or threatening.
Additionally, don’t forget to check your local laws and regulations for any additional requirements you might need to follow.
2. Select the Appropriate License Type
When looking at the federal firearms license application requirements, bear in mind that there are different types of FFL licenses:
FFL License Type | Purpose |
Type 01 | Firearms Dealer (Except for Destructive Devices) |
Type 02 | Firearms Dealer/Pawnbroker (Except for Destructive Devices) |
Type 03 | Firearms Collector (Curios and Relics) |
Type 06 | Firearms Ammunition Manufacturer (Except for Destructive Devices or Armor Piercing Ammunition) |
Type 07 | Firearms & Ammunition Manufacturer (Except for Destructive Devices) |
Type 08 | Firearms Importer (Except for Destructive Devices or Armor Piercing Ammunition) |
Type 09 | Destructive Devices Dealer |
Type 10 | Manufacturer of Destructive Devices, Ammunition for Destructive Devices or Armor Piercing Ammunition |
Type 11 | Importer of Destructive Devices, Ammunition for Destructive Devices or Armor Piercing Ammunition |
Ultimately, a Type 07 FFL license gives you the most freedom, and is becoming more popular. It enables you to do everything that a Type 01 FFL does (buy, sell, repair firearms), plus the option to manufacture firearms and ammunition.
The Type 07 FFL costs $150 to apply and $150 to renew every 3 years. It is a great option for ammunition dealers.
3. Submit the Application and Wait
The actual application itself won’t take you more than a few hours to complete. Yet, once you have submitted your license application, you will need to wait for around two months for the ATF to respond to your application with either an approval or denial. So be patient.
A lot of businesses apply for FFLs annually, therefore the ATF might have to sort through numerous applications before they get to yours.
Do You Need an FFL to Ship Ammunition?
Most states have no specific ammunition restrictions, meaning that ammo can be shipped directly to the buyer. However, there are a few exceptions:
- California. Ammunition must be shipped to a licensed Ammunition Vendor. Exceptions are in place, in case the recipient has an FFL Type 03 and a COE.
- Connecticut. No dropship ammo is allowed. Ammo purchases require Firearms Owner Verification (FOID).
- Illinois. Ammo purchases require a FOID card.
- Maryland. Ammunition sales to Annapolis are forbidden.
- Massachusetts. Ammo shipments require a FOID card and state-issued ID.
- New Jersey. No dropship ammo is allowed. Ammo purchases require a FOID card and state ID.
- New York. All ammo shipments must be sent to an FFL, or the customer must provide a valid state-issued ID and can only ship to the address on that ID.
- Rhode Island. A license for ammo purchase is required. The resident must be over 21 years of age, and possess a valid pistol or revolver safety certificate.
Which FFL Type Do You Need?
If you want to be an ammunition dealer, you’ll likely only need to get a Type 1 FFL, which is by far the most common FFL in the United States, with over 52,000 issued by 2020.
There is one exception, though. If you plan to manufacture ammunition rather than just buy and sell it, you’ll need a Type 6 or 7 FFL. As we mentioned, earlier Type 07 FFL is quickly growing in popularity, since it gives you freedom, and has over 14,000 issued as of 2020.
What Now?
After you have successfully fulfilled the FFL requirements and obtained a federal license that allows you to deal with firearms and ammunition, it is time to think about what’s next for your business.
After you submit your license application, the ATF has two months to respond to your application with either an approval or denial. As long as you followed the application’s directions to the letter and you don’t have anything outstanding that prohibits you from selling FFL goods, you’ll likely hear back from the ATF within those two months. Don’t be surprised if it gets down to the wire before they respond; there are many businesses that apply for FFLs annually, and the ATF must sort through many applications before they get to yours.
One thing’s for sure, you will need a partner that you can rely on for FFL credit card processing. That’s where Electronic Transfer can help.
We support FFL businesses in all their transactional needs, and we’d love to partner with you next! Don’t hesitate, to give us a call or drop us a message, and we can start working towards growing your business together.