Trapdoor Collector Discussion Board
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Re: C&R license
Posted by John S. on Saturday, 23 August 2014, at 12:41 p.m., in response to C&R license, posted by Rick Baker on Saturday, 23 August 2014, at 6:20 a.m.
C&R Benefits- Simplifies purchases in person both in state and out of state and allows mail/internet ordering with shipment of C&R items direct to you (unless you live in a nanny state with silly restrictions).
Disadvantages- Forces you to keep detailed records of your post 1898 C&R guns (but not 1898 and earlier antiques or post 1898 NON-C&R guns), and renders you potentially liable to inspection or harassment by BATFE. You are also required to notify the local cops that you have applied for a C&R, and that information if not closely held may lead to being targeted by crooks. You will need to collect and enter ID of purchaser for every C&R gun you ever sell into your records.
A C&R does NOT allow you to "engage in the business" of selling guns, which is very vaguely defined, and can be construed to your disadvantage and make you subject to prosecution for a mere handful of sales. While you might eventually beat the charges, the legal costs could be in the high 5 figure to 6 figure range. Rule of thumb is that something has to be in a "dealer's" personal collection for a minimum of 1 year before he could sell it without being part of his business inventory, and presumably a 1 year hold would suffice to prove a C&R holder's sale is not a "business" sale, but who knows if that will be accepted. You can only use the C&R to buy and sell "for the purposes of enhancing your collection." However, your collecting interests can change, and "enhancement" is open to interpretation in many ways, so you are lot locked in to a narrow specialty forever.
BATFE very seldom does inspection visits on C&R holders, but they can and do make some. Under anti-gun administrations this could become routine rather than rare.
For a "casual collector" who maybe will buy 10 or fewer C&R guns per year, a C&R may be more hassle than it is worth. A "serious" collector who may buy more than 10 (and perhaps even sell a few) guns per year, the C&R may be worth having. Ironically, having C&R records may actually help defend against a "engaged in the business" allegation.
C&R records may be disposed of when the C&R FFL is not renewed, unlike "Dealer" FFL records which have to be sent to BATFE for permanent archiving.
Bottom line- if your main focus is post 1898, a C&R FFL may be a help. If you mainly like 1898 and earlier, with very few newer guns, then just do the forms each time you buy something and don't be forced into a bunch of record keeping and potential harassment.
Others may see the situation differently.
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