27 C.F.R. § 478.78

Operations by licensee after notice

Read at: eCFRecfr.gov CornellLII GovInfogovinfo.gov CasesGoogle Scholar

(a) In any case where denial, suspension, or revocation proceedings are pending before the Bureau of Alcohol, Tobacco, Firearms, and Explosives, or notice of denial, suspension, or revocation has been served on the licensee and he has filed timely request for a hearing, the license in the possession of the licensee shall remain in effect even though such license has expired, or the suspension or revocation date specified in the notice of revocation on Form 4500 served on the licensee has passed: Provided, That with respect to a license that has expired, the licensee has timely filed an application for the renewal of his license. If a licensee is dissatisfied with a posthearing decision revoking or suspending the license or denying the application or imposing a civil fine, as the case may be, he may, pursuant to 18 U.S.C. 923(f)(3), within 60 days after receipt of the final notice denying the application or revoking or suspending the license or imposing a civil fine, file a petition for judicial review of such action. Such petition should be filed with the U.S. district court for the district in which the applicant or licensee resides or has his principal place of business. In such case, when the Director finds that justice so requires, he may postpone the effective date of suspension or revocation of a license or authorize continued operations under the expired license, as applicable, pending judicial review.

(b) Upon final disposition of license proceedings to disapprove or terminate a license (i.e., by revocation or denial of renewal), the former licensee shall within 30 days, or such additional period approved by the Director for good cause, either:

(1) Liquidate the former licensee inventory by selling or otherwise disposing of the firearms to a licensed importer, licensed manufacturer, or licensed dealer for sale, auction, or pawn redemption in accordance with this part; or

(2) Transfer the former licensee inventory to a responsible person of the former licensee to whom the receipt, possession, sale, or other disposition is not prohibited by law. Any such transfer, however, does not negate the fact that the firearms were repetitively purchased, and were purchased with the predominant intent to earn a profit by repetitive purchase and resale.

(c) Transfers of former licensee inventory to a licensee or responsible person in accordance with paragraph (b)(1) or (2) of this section shall be appropriately recorded as dispositions, in accordance with § 478.122(b), § 478.123(b), or § 478.125(e), prior to delivering the records after discontinuing business consistent with § 478.127. Except for the sale of former licensee inventory to a licensee within 30 days (or approved period) in accordance with paragraph (b)(1) of this section, or occasional sale of a firearm from such inventory thereafter to a licensee, a former licensee (or responsible person of such former licensee) who resells any such inventory, including former licensee inventory transferred in accordance with paragraph (b)(2) of this section, is subject to the presumptions in § 478.13 (definition of “engaged in the business as a dealer in firearms other than a gunsmith or pawnbroker”) that apply to a person who repetitively purchased those firearms for the purpose of resale.

(d) The former licensee shall not continue to engage in the business of importing, manufacturing, or dealing in firearms by importing or manufacturing additional firearms for purposes of sale or distribution, or purchasing additional firearms for resale (i.e., “restocking”).

[T.D. ATF-415, 63 FR 58278, Oct. 29, 1998, as amended by ATF-27P, 74 FR 1878, Jan. 14, 2009; ATF 2013R-9F, 79 FR 46692, Aug. 11, 2014; ATF 2022R-17, 89 FR 29092, Apr. 19, 2024]

Notes of Decisions

Cited in 7 cases (1 in the last 5 years), 2007–2023 · leading case: Garner v. Lambert, 530 F. Supp. 2d 953 (N.D. Ohio 2007).

Sort: Relevance Newest Treatment

Garner v. Lambert, 530 F. Supp. 2d 953 (N.D. Ohio 2007). · cites it 9× “2 *956 Furthermore, Lambert asserts that 27 C.F.R. § 478.78 expressly provides ATF with authority to stay a revocation decision while judicial review is pending, and makes such authority discretionary.”

Borchardt Rifle Corp. v. Cook, 727 F. Supp. 2d 1146 (D.N.M. 2010). · cites it 2× “15, 2006)(finding that 27 C.F.R. § 478.78 is not void because 18 U.”

Gen. Store, Inc. v. Van Loan, 560 F.3d 920 (9th Cir. 2009). “§ 923 (f)(2) and 27 C.F.R. § 478.78 ; Van Loan denied the request.”

Posey v. Garland (JRG1) (E.D. Tenn. 2023). · cites it 2× “15, 2006) (“[W]hile the language of § 923(f) does not provide a definitive answer as to when a stay of a revocation should be lifted, § 923(e) and ATF regulations at 27 C.F.R. § 478.78 make clear that ATF can revoke the license after a hearing has been held and a Notice of…”

Sheppard v. Houchens, 2016 DNH 079 (D.N.H. 2016). “§ 923 (f)(3); 27 C.F.R. § 478.78 . B. Factual Background1 On December 5, 2013, James Sheppard applied to ATF for a License.”

The Gen. Store, I v. Van Loan, 551 F.3d 1093 (9th Cir. 2008). “§ 923 (f)(2) and 27 C.F.R. § 478.78 ; Van Loan denied the request.”

The Gen. Store v. Van Loan (9th Cir. 2009). “§ 923 (f)(2) and 27 C.F.R. § 478.78 ; Van Loan denied the request.”

Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.