Rationale of the Policy
- Addresses issue where main licenses expire but branch licenses remain valid.
- Aims to reduce volume of license applications and renewals.
Purpose
- Prescribes procedures for issuance and renewal of licenses for firearms dealership, repair, and inventory.
- Establishes control measures on the sale of firearms, ammunition, and related items.
Definition of Terms
- License to Deal: Authority to buy, sell, and handle firearms and related items.
- License to Repair: Authority to repair or upgrade firearms.
- Indent License to Deal: Authority to import and sell for government agencies.
- Authority to Import/Export: Official documents permitting import/export of firearms and related materials.
- Accessories: Optional parts enhancing a firearm.
- Refurbishment: Restoration of a firearm to original condition.
- Major Firearms Parts: Frame, slide, barrel.
- Conversion Kit: Assembly used to change caliber of a firearm.
- Bodega Transfer: Transfer of firearms between dealers within federation storage.
- Authority to Display: Authorization to display firearms commercially.
- Mother License: Main license for a primary store.
- Branch License: License for additional stores at different addresses.
Processing of Applications
- Licenses valid for five years.
- Renewals filed at FED-CSG, Camp Crame, not later than 90 days before expiration.
- Operations must cease upon expiration unless renewal application is pending.
- Singular license may cover multiple related business activities.
- Branch licenses depend on the mother license.
- Documentary requirements include location plans, security vault sketches, business registration, clearances, application forms, financial proof, and photographic evidence.
- Application referral through local police directors to FED and PNP Chief.
- Indentor applicants have fewer documentary requirements.
- Renewal requires submission of various clearances, tax registrations, monthly transaction summaries, and inspection reports.
Importation of Firearms and Related Items
- Import quantities based on previous three years’ highest importation less current stock.
- Import authority valid for three years (one year for indentor items).
- Items for demonstration must be returned or donated after use.
- New models require sample approval by Firearm Classification Board.
- Only main store allowed to import.
- Importation for AFP, PNP, and law enforcement requires supporting documentation such as purchase orders and end-user certificates.
Exportation
- Only defective previously imported items may be re-exported.
Control on Sales of Ammunition and Components
- Ammunition sales restricted to licensed holders and government entities.
- Permits to Purchase Ammunition (PPA) required for sales; quantity limits apply.
- Branch dealers may store ammunition with replenishment subject to accountability.
- Imported firearms and parts must be recorded and reported.
- Purchase of firearm frames treated like purchasing complete firearms requiring compliance with SOP.
- Ammunition components require purchase permits and must be sold to authorized entities only.
- Display limits on primers and transport regulated.
Miscellaneous Provisions
- FED-CSG is custodian of commercial firearms and related stocks.
- Minimum capitalization of P500,000 required for applicants.
- Individuals not allowed interest in more than one dealership.
- Authority to Display required for commercial display of firearms.
- Gun repair shops prohibited from repairing unregistered firearms.
- Inspections conducted regularly.
- Internal agreements allowed to legalize legal transactions.
Administrative Sanctions
- Penalties include suspension or cancellation of licenses for offenses such as unauthorized sales, failure to maintain security, failures in reporting, and document fraud.
- Six-month grace period for renewal before cancellation.
- Six months allowed for disposition of stocks after cancellation.
- Inspectorate Section to conduct enforcement and recommend penalties.
- No renewal allowed if no sales were made during license validity.
Supplementary Rules
- Chief, FED may issue additional rules as necessary.
Repealing Clause
- Prior inconsistent rules rescinded or amended.
Effectivity
- The policy is effective immediately upon adoption on 14 February 2008.