Auctioneers Who Sell Firearms
If your auctioneering business sometimes sells firearms, here is some information you should know about requirements that may apply to you under the Firearms Act, including:
- business licence requirements;
- employee licence requirements;
- safe storage and display requirements; and
- transferring firearms to a buyer.
Business Licence Requirements
Every business that sells firearms, including auctioneers, needs a Firearms Business Licence. The licence must be valid for all the classes of firearms that the business sells. The three classes of firearms are:
Exception: The requirement to have a Firearms Business Licence might not apply to your business if it does not actually take possession of the firearms, and only acts as the “mouthpiece” for the seller. Contact your provincial Chief Firearms Officer (CFO) by calling 1 800 731-4000 to find out if the licence requirements apply to you in your particular circumstances.
How to Apply for a Business Licence
Fill out and submit form number CAFC 672, an "Application for a Firearms Licence (for Businesses and Museums)." You can obtain this form from your provincial CFO. When filling out the form, please make sure that you check off all the activities that apply to your business. Your licence will only be valid for those activities. A Firearms Business Licence is renewable every three years.
Fee
The fee for a three-year Firearms Business Licence to sell firearms at auction will be at least $125. It may be higher depending on what other firearm-related activities you wish to be licensed for. If you are involved in more than one firearm-related activity, all those activities will need to be specified on your licence, but you only have to pay for the activity with the highest fee.
Employee Licence Requirements
To be eligible for a Firearms Business Licence, every employee who handles firearms for employment purposes needs a valid Possession and Acquisition Licence (PAL). Employees only need to be licensed to acquire non-restricted firearms if that is the only class of firearm your business handles. They need to be licensed to acquire restricted firearms if your business handles restricted and prohibited firearms.
Even if your business does not require a Firearms Business Licence, employees need a valid firearms licence to be able to handle firearms that your business sells at auction, or they must remain under the direct and immediate supervision of a properly licensed individual when they are in possession of the firearms.
Employees must renew their licence every five years and inform us of any change of address.
How to Apply for a PAL
Fill out and submit an "Application for a Possession and Acquisition Licence under the Firearms Act" (CAFC 921).
To be eligible for a PAL, applicants must meet specific safety-training requirements.
Fee
The initial fee for a PAL is $60 for non-restricted firearms only, or $80 for any combination of non-restricted, restricted and prohibited firearms. This is a processing fee and is payable even if a licence is refused.
The fee to renew a PAL or to change licence privileges is waived until May 17, 2008. Individuals who have already paid a fee, the fee will be refunded. To ensure they receive their refund, they need to notify us if their address changes.
Safe Storage and Display
Firearms must be stored and displayed safely at all times, to deter loss, theft and accidents. Firearms must be unloaded. Ammunition cannot be displayed with the firearms.
If you store and display the firearms on your own business premises, the Storage, Display and Transportation of Firearms and Other Weapons by Businesses Regulations apply.
If the seller is an individual and the auction will be held on the seller’s property, the Storage, Display, Transportation and Handling of Firearms by Individuals Regulations apply.
People who want to examine a firearm before bidding on it can handle a firearm only if they are licensed to possess that class of firearm or they remain under the direct and immediate supervision of a properly licensed person while they handle the firearm.
Transferring a Firearm to a Buyer
Firearm buyers need either a PAL or a Firearms Business Licence that is valid for the class of firearm they are buying. You may wish to remind potential buyers of the licence requirements before bidding starts.
Firearms must be registered to the buyer before the buyer can take possession of them. It is recommended that you contact the CFO of your province in advance to confirm the logistics, especially if the auction is taking place on a weekend or evening.
Any firearms being transferred to a new owner will need to be verified by an approved verifier unless they already have verified status, their description has not changed, and the Registrar is satisfied that the description and classification of the firearm are accurate. If you are licensed as a firearms business, you will need to have an approved verifier on staff to verify inventory that needs to be verified. You can arrange to have an employee trained and approved as a verified, or get help to verify a firearm, by calling 1 800 731- 4000.
If you have a Firearms Business Licence, you can initiate a transfer on the seller’s behalf. If you are unlicensed and are simply acting as the middleman, the owner would have to initiate the transfer. The buyer also needs to be involved in the transfer process.
Options for transferring a firearm are as follows:
Online
A transfer application can be submitted using the online application if either the buyer or the seller has a valid Firearms Business Licence
and the firearms have previously been registered. The licensed business will need to start the transfer process. If you have a valid Firearms Business Licence and the firearms are being transferred to or from your own inventory, you may use the online process. However, you cannot use the online process if both the registered owner and the buyer are individuals and you are simply acting as the middleman.
By Phone
If you are a licensed firearms business and are initiating the transfer on the seller’s behalf, call the business hotline at 1 800 396-3466. If the transfer is being initiated by an individual rather than a licensed business, the individual must call 1 800 731-4000.
The person who calls should have the following information handy:
- the buyer’s full name, address, firearms licence number and telephone number;
- the seller’s full name, address, firearms licence number and telephone number;
- the registration certificate number and firearms identification number of the firearm (as shown on the registration certificate); and
- the Firearms Reference Table (FRT) number and verifier identification information (unless the firearm was verified previously or the firearm is non-restricted and will be verified over the phone during the transfer process).
If you are a licensed firearms business acting on the seller’s behalf, you will also need to provide the name, address, Firearms Business Licence number and business identification number (BIN) of your business.
By Fax
This option is only available to licensed firearms businesses that are initiating a transfer. You will need the special fax version of form CAFC 681 for restricted and prohibited firearms or form CAFC 682 for non-restricted firearms. Call 1 800 731-4000 to obtain the form. Specify that you want the fax version. Send the completed form to the business fax number at 1 888 449-7911.
By Paper Application
This process takes the longest because forms need to be mailed in. If a buyer and seller prefer to use this option, they will need to fill out the standard version of form CAFC 681 for restricted and prohibited firearms or form CAFC 682 for non-restricted firearms. This is a two-part form. The seller must complete one part and the buyer must complete the other part. Once it has been completed, it must be mailed to Central Processing Site, Box 1200, Miramichi, NB E1N 5Z3. The forms can be obtained by calling 1 800 731-4000.
Transfer Notice
Once a transfer has been completed, a notice will be sent to both the buyer and seller. If immediate notification is required, as is usually the case at auctions, let the transfer agent know when you start the transfer process.
Information
For more information, contact us by one of the following methods:
telephone: 1 800 731-4000 (Toll Free)
web site: www.cfc-cafc.gc.ca
e-mail: cfc-cafc@cfc-cafc.gc.ca
This fact sheet is intended to provide general information only. For legal references, please refer to the Firearms Act and its regulations.
Provincial, territorial and municipal laws, regulations and policies may also apply.
Le présent feuillet d’information est également disponible en français.
Revised May 2006
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